CAC40: at the threshold of 7100pts, Wall Street more hesitant

( – The Paris Stock Exchange ended the session with a gain of 0.74%, at 7,095 points, thus gaining almost 10% since the start of the year. The CAC benefited in particular from the performance of STMicro (+8.2%) after the announcement of a 2022 net result almost doubled compared to 2021 (see below).

The performances are more disparate across the Atlantic where since the Dow Jones fell by 0.2%, while the S&P500 is stable and the Nasdaq grabs 0.4%, helped by Tesla (+9%).

On the statistics front, the 1st estimate of US growth in the fourth quarter amounts to 2.9%, in line with the consensus which was aiming for between 2.6% and 3.2% (the GDP had climbed by +3.2 % in the 3rd trimester).

Sales of new homes rebounded by +2.3% in the month of December 2022, reaching an annualized and seasonally adjusted volume of 616,000, according to the Commerce Department.

The previous month, sales had increased by 0.7% (revised figure compared to the +5.8% of the initial estimate).

At 461,000, the stock of new homes ready for sale at the end of December represented a supply of nine months at the current rate of flow.

Also according to the Commerce Department, durable goods orders jumped 5.6% last month in the United States, after a 1.7% decline in November (against +2.5% expected) .

Orders for civil capital goods excluding aeronautics, a benchmark closely followed for business investment projects, however fell by 0.1% in December.

Orders for transport equipment, on the other hand, rose sharply (+16.7%) in December to sign their fourth increase in the last five months.

Finally, claims for unemployment benefits in the United States fell again by 6,000 during the week of January 16, settling at 186,000 against 192,000 (figure revised from 190,000) the previous week, according to the Department of Work.

The bond markets, which were stable this morning, tightened slightly: T-Bonds posted +3pts to 3.496%.
The deterioration is clearer on our OATs (+6pts 2.665%) and Bunds (+5pts 2.2080%).

With robust US GDP, the barrel of oil ‘WTI’ recovered 1.4% to $81.45, the same for ‘Brent’ at $87.5.

The earnings season, so far disappointing, should also continue to drive the trend, as investors become aware of the impact of the global economic slowdown on corporate accounts.

In corporate news, STMicroelectronics reported net income nearly doubled from 2021 to $3.96 billion and operating margin up 19% to 27.5 % year over year. The turnover of the Franco-Italian semiconductor manufacturer increased by 26.4% to 16.13 billion dollars.

Getlink unveils a turnover of nearly 1.61 billion euros in 2022, an increase of 107% at constant exchange rates compared to 2021, ‘defining a new historic high since the creation of the group’.

SES-imagotag posted 2022 revenue growth of 46.4% to 619.1 million euros, the highest annual sales level in the history of the electronic labeling specialist from gondolas for distribution.

Reworld Media announces the signing of a license agreement by its Italian subsidiary with Heart Media Group with a view to launching its Grazia brand, recently acquired by the group internationally, in Singapore and Malaysia.

Finally, Leonardo and Safran Helicopter Engines today announce a partnership to improve the capabilities and competitiveness of the new generation AW09 single-engine helicopter. Thus, the Arriel 2K engine of 1000 shp will equip in series the new light helicopter of Leonardo.

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