Here is what you should remember from Monday, May 6, 2024.
Markets: The return of small caps?
The Parisian index started the week on a positive note, closing the day with an increase of 0.49% to 7996 points, driven by positive momentum following last Friday’s American employment report. At the same time, the economic data published today also supported investor morale. Producer prices in March fell by 0.4%, in line with market expectations. Optimism has also strengthened in the euro zone, with the Sentix index recording its seventh consecutive increase in May, surpassing economists’ forecasts. Additionally, the second estimate of the services PMI in April showed an improvement from 51.4 to 51.7, suggesting a more pronounced expansion in activity than expected after a score of 50.3 in March. This comes in a context where recent employment figures in the United States, although disappointing, are being interpreted positively by the markets, in the hope that the American Federal Reserve can ease its monetary policy in the face of a less vigorous labor market. , which has long fueled inflationary pressures. In terms of values, we can say that small caps are on the boil today! Carmat jumped 9.77%, after announcing promising news on a crucial clinical trial for the approval of its artificial heart. Micropole also posted an increase of 9.94%, fueled by expectations of a possible purchase offer which could lead to an outbid on its stock. The positive dynamics of these companies shows that interest in small caps remains strong in the market.
Values: Maurel & Prom, Carmat and Micropole
Maurel & Prom The Apple group posted an increase of 6.7% to $184.6 after publishing first quarter results that exceeded low market expectations, in particular thanks to solid performance in China and an ambitious share repurchase program. 110 billion dollars. Revenue came in at $90.75 billion, slightly above expectations, with iPhone sales better than expected when adjusted. In China, despite a decline, revenues exceeded pessimistic forecasts. Earnings per share hit a record $1.53, and the company expects modest growth for the current quarter. The strong reward to shareholders through the largest share buyback program in American history played a key role in renewed investor confidence. The stock has still lost almost 5% since the start of the year. Carmat The designer of the artificial heart Aeson soars 9.77% to 3.37 after announcing encouraging results from its latest clinical study. This clinical study, which saw 20 patients benefit from a heart implant, aims to show the effectiveness and safety of the artificial heart. Its conclusions are crucial to obtaining reimbursement for the device in France and marketing authorization in the United States, planned for 2027. The company recorded an intermediate success rate of 75%, a promising figure which exceeds the results of cardiac therapies current and previous studies by Carmat. Management also confirmed its financial objectives for 2024, targeting a turnover of 14 million euros. However, to continue its activities, the company will still need to secure funding estimated at 45 million euros over the next twelve months. Its managing director, Stphane Piat, reassured investors by announcing that several key shareholders had already expressed their intention to financially support the company in the short term. This support will be crucial to enable Carmat to remain focused on its commercial objectives and future development. Nevertheless, the stock has fallen by almost 42% since the start of the year. Micropolis The digital services specialist eligible for the PEA-PME, jumped 9.94% this evening to 1.88 after the submission of a new offer competing with the proposed purchase of the Miramar Holding investment company, raising expectations of outbid. Micropole has received numerous offers from industrial and financial investors, which value the company well beyond the price of 1.5 euros per share initially proposed by Miramar. These investors will have access to a data room to better evaluate the company before submitting firm offers by May 28. The market expects competition for the acquisition, which fuels optimism around Micropole stock. Since the start of the year, the stock has gained more than 73%.
Tomorrow’s headlines: Show Time!
Tomorrow, the markets will be attentive to the results of Arkea and Bouygues. Across the Atlantic, Walt Disney will also publish its figures. On the macroeconomic side, the French trade balance in March and retail sales in Europe will offer new perspectives on the economic health of the continent.
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The world after: AI powers the stock market!
AI giants like Microsoft have catapulted the valuation of the world’s top 100 companies, reaching a record level of $40 trillion in March 2024. This increase, of almost 27% in one year, reflects a recovery from previous losses, driven by signs of macroeconomic stabilization and renewed interest in equities. The United States is leading this rise with innovations in artificial intelligence that are currently positioning the country at the top of global markets. The growing interest in AI has not only doubled the capitalization of these companies over five years but has also redefined the dynamics of global investment. The United States dominates with the magnificent seven (Microsoft, Apple, etc… see glossary) which contributed 54% to the increase over one year in the combined value of the 100 largest companies in the world. Meanwhile, Asian markets, particularly China, are feeling headwinds, while Europe, with leaders like ASML and LVMH, is showing strong growth. This AI revolution marks a new era for the stock markets, where technology and innovation are essential for the valuation of companies.
The lexic:
The “magnificent seven”, also called the “mercenary seven”. On the stock market, this expression designates the most powerful and influential American technological giants. Those who dominate the market and have largely contributed to the rise of the Nasdaq since the start of the year. This list is not strictly defined and may vary depending on the criteria used (market capitalization, influence in the industry, etc.), but it currently includes Apple, Microsoft, Amazon, Google (Alphabet), Facebook (Meta ) and recently Tesla and Nvidia. The phrase magnificent seven is used informally and is not a standardized term in the world of finance. Due to the dynamic nature of markets, the companies on this list may change over time.