The Fed without surprise, new twist at OpenAI, profit taking on Nvidia

The Paris Stock Exchange starts this Wednesday’s session with a slight increase, erasing its decline the day before following profit-taking. Around 10:15 a.m., the Cac 40 gained 0.34% to 7,253.87 points, in a hollow market in the absence of a catalyst this week. The opportunity to look at the latest twist in a saga that has the whole of Silicon Valley in suspense. Less than a week after being ousted from the company he co-founded, Sam Altman returns to his role as CEO of OpenAI, the start-up behind the chatbot ChatGPT. His surprise dismissal Friday evening by the board of directors, who criticized him for monetizing artificial intelligence, had the effect of a bomb in the world of tech. The investors and employees, who threatened to slam the door of the company if Sam Altman was not reinstated, won their case. Cornered, the OpenAI board announced this morning on the social network

The other news in the field of AI concerns Nvidia, whose quarterly results were published last night. And they did not disappoint. 18.1 billion in turnover for earnings per share of 4.02 dollars. This is above what analysts expected with a consensus of 16 billion and an EPS of 3.36 dollars. If the semiconductor manufacturer plans to do even better with an estimated revenue of 20 billion for the current quarter, some market projections go up to 21 billion. The group also expects a negative impact from US restrictions on chip exports which affect sales in China and other countries. In pre-stock market trading, the stock fell 0.9%. A trifle compared to the meteoric rise of the title since the start of the year: +240%!

Investors couldn’t decide whether to buy the fact that the company beat expectations or sell the reality that sales in China will slow this quarter and that will weigh on revenue », comments Ipek Ozkardeskaya of Swissquote. “ Let’s take a step back: Nvidia is growing rapidly and has the potential to grow further, but the company’s valuation is also very high, its price has increased almost fivefold since October 2022. Its capitalization exceeds by more than 1,000 billion dollars that of Intel. In summary, the company is growing, but this is already reflected in the prices “.

Fed minutes without surprises

We cannot fail to mention monetary policy, the markets’ favorite subject, even if the news on the subject is redundant. The Federal Reserve’s latest minutes, which chronicle the debates surrounding the November 1 decision to stabilize the level of interest rates, indicate that committee members supported a ” restrictive position » monetary policy « for a while ”, until inflation clearly declines. A classic speech that the market no longer wants to believe since the inflation figures have since shown a slowdown a little more pronounced than expected, while the labor market is also gradually relaxing and economic activity is weakening. .

We should no longer attach too much value to the increase suggested in the September dot plot projections “, notes Philip Marey, strategist at Rabobank. “ Should we see stronger economic and inflation data before the December meeting, long-term bond yields are likely to rebound and substitute for higher rates. Therefore, we do not expect another turn of the screw. »

Casino lowers its annual Ebitda forecast for France

In terms of values, Elior climbed 10% after announcing an improvement in its results for the financial year ending September 30, 2023 and raising its objective of synergies linked to the acquisition of Derichebourg Multiservices (DMS).

Casino lost 1% after lowering, for the second time in a month, its annual gross operating surplus (Ebitda) target for France, due to a slower than expected recovery in activity in its hypermarkets and the impact of its investments.

Interparfums is up 5.3%. The manufacturer of licensed perfumes is targeting a turnover of around 880 million to 900 million euros in 2024 and confirms that it expects to record sales of around 800 million euros this year.

In London, Kingfisher, owner of the Castorama and Brico Dépôt brands, fell 6.2% after lowering its annual profit forecast for the second time in three months, while market trends turned out to be weaker than planned in France.

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