Transition session on the Paris Stock Exchange, which catches its breath after a gain of 3.5% in two days which propelled the Cac 40 to a peak of almost five weeks. The quarterly underperformances of Alphabet and Microsoft show that the fall in advertising expenditure is not sparing the “tech” giants. An unwelcome observation before the publication this evening of the results of Meta, Facebook’s parent company, which will be followed tomorrow by quarterly reports from Amazon and Apple.
Investors are watching corporate forecasts closely this earnings season to try to assess the impact of inflation and central bank tightening on the eve of the ECB’s monetary decision, which is expected to opt for a hike in 75 basis points of its interest rates. ” The market is waiting to hear the tone of the ECB’s comments as an overly aggressive message could kill the slight rally in equities since mid-October observes Francisco Simon, of Santander AM, quoted by Bloomberg.
Around 4 p.m., the Bedroom 40 was stable at 6,250.03 points (+0.02%) in a business volume of 1.6 billion euros. In New York, the Dow Jones takes 0.34%, while the Nasdaq Composite loses 1.38%. On Tuesday, Wall Street had chained a third session of increases in a row, the longest series since the beginning of October.
Reassuring bad news
Alphabett fell by 7.8%. The parent company of Google published last night a quarterly turnover below expectations, particularly in terms of advertising revenue. Microsoft down as much after recording the weakest quarterly growth in sales in five years, while its forecasts disappointed. Conversely, Boeing gained 1.2%, with significantly stronger than expected free cash flow generation and the resumption of deliveries of the 787 Dreamliner offsetting the increase in the sharp increase in the quarterly loss.
On Tuesday, US indicators showed a halt in home price growth and a deterioration in consumer confidence. Bad news perceived as good news insofar as it suggests that recent rate hikes are beginning to dampen the economy, and hence inflation. While these statistics have not changed expectations of a 75 basis point Fed rate hike next Wednesday, they add to signs that the Fed may end its aggressive tightening policy in the near future. next year. The yield on the 10-year US bond fell 9 basis points to 4.01%.
Dassault Systèmes and Michelin sanctioned
Dassault Systems down 5%. The computer-aided design software publisher exceeded expectations in terms of results and turnover thanks to a favorable exchange rate effect. Jefferies analysts, however, point out that license sales came in below expectations, adding that, at constant exchange rates, the 8% growth in quarterly revenue is at the low end of the group’s forecast range. and below those of the broker.
Michelin loose 3.1%. The tire maker announced sales growth of 20.5% at the end of September 2022, but lowered its outlook for free cash flow for the full year to 0.7 billion euros, against 1.2 billion previously.
Nexans gives up 4.6%. The cable manufacturer has certainly raised its financial targets for 2022, but Societe Generale analysts are reserved about the 6- and 12-month outlook. The author of the note is particularly careful with regard to ” the construction division against a backdrop of prospects of a global economic recession in 2023 due to the sharp rise in interest rates in the United States “.
Thales gains 3.3%. The defense electronics group estimated it would reach the top end of its revenue growth forecast this year, after benefiting in the third quarter from the momentum in the identity and security business. digital (DIS, ex-Gemalto).
Atos jumped 11%. The digital services group confirmed its full-year 2022 guidance, after posting 5.7% organic revenue growth in the third quarter.
Orpea plunges 34%. The operator of retirement homes has announced that it has obtained the opening of an amicable conciliation procedure with the Nanterre commercial court, in order to engage with its financial creditors in discussions relating to the restructuring of its debt, the obtaining financial resources and adjusting its bank commitments, or covenants. It will also depreciate its 2022 accounts by 2.1 to 2.5 billion euros.