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(Boursier.com) — At market close, Wall Street fell sharply this Monday. The S&P 500 returns -0.96% to 5,695 pts. The Dow Jones dropped -0.94%, returning to 41,954 pts. The Nasdaq fell by -1.18%, sinking 18,000 points to finish at 17,923 points.
The markets fear a conflagration in the Middle East this evening, while awaiting the Israeli response against Iran. Caution also prevails this Monday, since the week promises to be quite lively from an economic point of view, with in particular the inflation figures on Thursday, and numerous comments from Fed officials announced throughout this week. ..
The main US Treasury yields are back at 4%, for the first time since August, while the latest particularly strong US jobs report brushed aside the hypothesis of a further significant reduction in interest rates -50 basis points from the Fed. Bonds corrected on Monday, extending their decline from the end of last week following surprisingly strong September US employment data. The 10-year yield now increases to 4.02%, while the two-year yield also reaches 4%. This obviously reflects doubts about the extent of the US central bank’s upcoming rate reduction.
According to the CME FedWatch tool, there is now more than 83% probability that the Fed will lower its rates by a quarter of a point on November 7, at the end of the next monetary meeting, which would bring down the rate of ‘ fed funds’ between 4.5 and 4.75%, compared to 4.75 to 5% currently.
Goldman Sachs has raised its targets on the broad S&P 500 index for the end of the year and the next 12 months. The firm is banking on stronger growth in corporate margins and stable macroeconomic data. The target for the S&P 500 at the end of the year is raised to 6,000 points (previously 5,600), while the 12-month target now reaches 6,300 points (previously 6,000).
On the oil side, the barrel of WTI crude jumped +3.7% to $77.30 with geopolitical risk. North Sea Brent is now well above $80, and ends this evening at $81.05 (+3.72%).
The dollar is relatively stable, appreciating +0.07% to exchange for 0.9112 euros.
An ounce of fine gold fell -0.37% to $2,642.

Values
* Arcadium (+35.55% to $4.175). Mining giant Rio Tinto is in discussions regarding an acquisition of the lithium producer. Reuters indicates that the potential transaction could be valued between $4 and $6 billion, or even more, while the file capitalized $3.3 billion before these announcements.
* Barnes Group (+2.66% to $46.47). The manufacturer and provider of services and technologies in the industrial and aerospace sector will be acquired by funds linked to Apollo Global Management for approximately $3.6 billion in a cash transaction.
* Lucid (+2.4% to $3.42). The American electric vehicle manufacturer announced delivery figures higher than market expectations. In the quarter ended at the end of September, Lucid produced 1,805 units and delivered 2,781 electric vehicles.
* Pfizer (+2.17% to $29.2). The pharmaceutical group is gaining ground, while activist investor Starboard Value has just taken a stake worth close to a billion dollars in the capital of the American pharmaceutical giant. Bloomberg quotes a person familiar with the matter on this subject. Starboard has contacted former Pfizer executives Ian Read and Frank D’Amelio, and they have expressed interest, the Bloomberg source said, asking not to be identified because the information is private.
Read was CEO of Pfizer from 2010 to 2018 and chose current CEO Albert Bourla to succeed him. D’Amelio was CFO of the New York group from 2007 to 2021. Starboard’s exact plans are unclear at the moment according to Bloomberg. The activist found that investors and analysts were frustrated with the company’s struggles post-pandemic. The laboratory’s Covid-19 vaccine and treatment had more than doubled its revenues, from $42 billion in 2020 to $100 billion in 2022, but demand has since fallen.
* Boeing (+0.59% to $155.91). The public prosecutor’s office in Brindisi in southern Italy accuses 7 people and 2 subcontractors of fraud and violation of aviation safety rules, as part of an investigation into defective parts produced by an Italian company for the 787 Dreamliner of Boeing, indicates the Reuters agency. Furthermore, the American aircraft manufacturer and its main union indicated on Friday that their contract negotiations would resume this Monday, in order to find an agreement putting an end to the strike of more than 30,000 workers at the Seattle factory.
* Chevron (+0.25% to $151.12). The San Ramon oil group in California announced on October 7 its intention to sell its non-operated interest in the ‘Athabasca Oil Sands’ project and its operated interest in the Duvernay Shale, projects located in Alberta, Canada. The American group will therefore sell these assets to Canadian Natural Resources for $6.5 billion. The all-cash transaction is expected to be finalized during the 4th quarter of 2024. It is part of the group’s plans to divest $10 billion to $15 billion in assets by 2028.
* Amazon (-3.06% to $180.8). The online distribution group for consumer products corrects a downgrade in Wells Fargo. The broker judges that growth in the cloud would not be everything and is concerned about margin trends for next year. According to a note relayed by Bloomberg, Wells Fargo Securities revised its recommendation from ‘overweight’ to ‘line weight’, adjusting its target from $225 to $183. Amazon has been a story of consistent positive revisions, recalls the Wells specialist, but the broker now judges that factors are putting pressure on revisions in the short term.
* Apple (-2.25% to $221.69). Analyst Edison Lee of Jefferies does not expect the deployment of Apple Intelligence this month to significantly boost iPhone sales. He even considers short-term expectations regarding iPhone sales too high. The specialist revises his ‘buy’ to ‘hold’ recommendation on Apple and sets a price target of $212.92. He highlights the high valuation of the file at 33 times profits. He nevertheless appreciates Apple Intelligence in the long term.
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