The Paris Stock Exchange is, of course, on its marks in the middle of the afternoon, just like Wal Street in the first exchanges, but we must be delighted. A disappointment on reading the quarterly accounts of Home Depot and Walmart would undoubtedly have triggered profit-taking in the markets, which are now posting a sharp rebound from their June lows.
Around 4:15 p.m., the Bedroom 40 nibbles 0.12%, to 6,578.19 points, in a trading volume of just over 1 billion euros. In New York, the Dow Jones advance of 0.2% when the Nasdaq Composite loses 0.5%.
DIY and home renovation sign Home Depot exceeded expectations at the end of June, with a profit per share of 5.05 dollars, against 4.94 dollars expected, for a turnover of 43.79 billion (43.36 billion anticipated). A number of comparable stores, sales are up 5.8%, beyond the 4.9% target. While attendance fell slightly (467.4 million in-store visits, compared to 481.7 million a year earlier), the average ticket increased by 9%, to $90.02. Home Depot continues to aim for a 3% increase in sales this year for an increase of around 5% in earnings per share. The stock gains 2%.
Home Depot items also essential?
” While inflation doesn’t explain all of the performance, it did help Home Depot’s numbersunderlines Neil Saunders of GlobalData, according to remarks relayed by AFP. It has been easier for The Home Depot than for other retailers to raise prices simply because it sells many items that people need for their renovation or repair projects (…) A large proportion of these products are essential and will be purchased regardless of their price. »
walmart climbed 5%, the world number one retailer having also done better than forecasts, admittedly revised downwards at the end of July. Earnings per share amounted to 1.77 dollars (consensus: 1.62 dollars), for billings of 152.86 billion (150.81 billion). Growth was 6.5% like-for-like in the United States, versus 5.9% expected. The group still expects a decline of 9% to 11% in earnings per share this year.
Inevitable recession in Germany
The disappointment of the day comes from Germany. The Cac 40 slowed down with the publication, at 11 a.m., of the ZEW index of investor sentiment across the Rhine, which deteriorated more than expected in August, to -55.3 points, against -52, 7 points expected by the consensus. This is fueling the scenario of a slowdown in economic growth in the country, which is already weak, with the business survey adding that high inflation and the expected further increase in energy bills should weigh on consumption.
” German economic activity was flat in the second quarter, although most of the eurozone expanded quite rapidly with the boost of post-pandemic reopening. We believe German GDP will inevitably contract over the next three quarters as headwinds from rising energy prices and interest rates intensify », Analysis For Andrew Kenningham, of Capital Economics.
On the business side, Eramet rose by 6.7%, the biggest rise in the SRD. The mining group BHP Billiton posted the biggest profit in its history at the end of June and will pay a record dividend. ArcelorMittal gain 3.2%.