Wall Street gains a little ground before market this Monday. The S&P 500, the Dow Jones and the Nasdaq advanced 0.2%. On the Nymex, a barrel of WTI crude rose 0.6% to $82. An ounce of gold gains 0.3% to $2,346. The dollar index fell by 0.2% against a basket of reference currencies. Caution prevails, while the indices remain close to historic highs and the political situation is not really exciting, with a very weakened Biden in the run-up to the November election.
In today’s US economic news, the final manufacturing index for June will be released at 3:45 p.m. (FactSet consensus 51.8, in line or almost with the preliminary reading), while the ISM manufacturing index will be released at 4 p.m. (consensus 49.1). Construction spending for May will also be released at 4 p.m. (consensus +0.3% compared to the previous month).
In other major events this week on Wall Street, Fed Chairman Jerome Powell speaks early tomorrow. The JOLTS report on U.S. job openings will be released at 4 p.m. tomorrow.
On Wednesday, investors will notably follow the Challenger, Gray & Christmas study concerning layoff announcements, the ADP report on private employment, as well as the balance of international trade in goods and services or even the composite PMI index. American final. The services ISM and industrial orders are expected on the same day. The FOMC Minutes will be released this evening.
Finally, on Friday, operators will follow the monthly government report on the employment situation in the United States for the month of June (FactSet consensus 190,000 job creations for 4% unemployment rate).
Values
Boeing has, as expected, reached an agreement to acquire Spirit AeroSystems for $4.7 billion in shares. Note that Airbus will take advantage of the takeover to take over part of the American supplier’s activities. The European aircraft manufacturer has thus entered into a binding agreement with Spirit regarding a potential acquisition of major activities linked to Airbus, including the production of fuselage sections of the A350 in Kinston, North Carolina, in the United States, and in St. Nazaire; wings and mid-fuselage of the A220 in Belfast, Northern Ireland, and Casablanca, Morocco; as well as the A220 pylons in Wichita, Kansas.
Boeing, which split Spirit in 2005, will therefore buy its former subsidiary for approximately $37.25 per share, representing an enterprise value of $8.3 billion including debt. “The combination of Spirit and Boeing will enable greater integration of the two companies’ manufacturing and engineering capabilities, including safety and quality systems,” said Pat Shanahan, CEO of Spirit. Boeing has been thinking about buying its former subsidiary for a long time. The American aircraft manufacturer has announced the planned departure of its CEO Dave Calhoun, following the recent crisis. Some analysts cite Spirit’s Shanahan as a possible successor.
Separately, the US Department of Justice will criminally charge Boeing with fraud in connection with two fatal accidents and ask the aircraft manufacturer to plead guilty or face prosecution, two people familiar with the matter said on Sunday cited by Reuters. The DoJ plans to formally offer a settlement to Boeing that includes a financial penalty and the imposition of an independent monitor to review safety and compliance practices for three years, the sources said. The Justice Department is expected to give Boeing until the end of the week to respond to the offer, which would be non-negotiable. In the event of refusal, the aircraft manufacturer would be prosecuted…
Meta. “The DMA is here to give back to European users the power to decide on their ‘data’. Meta has forced millions of users across the EU to a binary choice: ‘pay or consent'”, launched Thierry Breton on X. “According to our preliminary conclusion, it is a violation of the DMA. Today, we take an important step to guarantee the conformity of Meta,” added the European Commissioner, the EU therefore accusing Meta, company mother of Facebook, for having violated its digital rules. European regulators are concerned about Meta’s “pay or consent” model, which launched ad-free subscription services for Facebook and Instagram in Europe in November, giving users the choice to consent to being “tracked.” by benefiting from a free service financed by advertising revenue or paying not to share their data. Regulators believe that the choice presented gives a false alternative.
They had previously accused Apple of also violating the DMA digital rules, a decision that could result in a hefty fine for the iPhone maker. The Apple group is also the subject of another investigation into the new fees imposed on app developers…
Chewy is up 11% pre-market on Wall Street, as influencer Keith Gill, better known by the nickname Roaring Kitty, took a stake valued at 6.6% in the group’s capital, just after shaking up GameStop’s value. Chewy is an American retailer of pet products. Gill’s stake was revealed via a regulatory declaration to the SEC. He thus holds 9 million shares, which represents $245 million on Friday’s closing prices. Ryan Cohen, CEO of GameStop, is also the founder of Chewy.
Among the quarterly financial publications on Wall Street this week, Constellation Brands announces Wednesday.
