(Boursier.com) — The American rating showed better conditions this Friday, supported in particular by netflix and Alphabet. The Nasdaq thus recovered by 0.99% to 10,959 pts and the S&P 500 by 0.51% to 3,919 pts, while the Dow Jones was up timidly by 0.09% to 33,072 pts. On the Nymex, a barrel of WTI crude gained 0.1% to $80.6. The ounce of gold gleans 0.2% to $1,927. The dollar index rose 0.1% against a basket of benchmark currencies. After two days of correction against a backdrop of warmongering speeches by central bankers, operators therefore seem to want to attempt a few purchases deemed cheap.
According to the American National Association of Realtors on Friday, resales of existing homes in the United States for the month of December settled at a rate of 4.02 million units, against 3.95 million consensus and 4 .08 million a month before. This therefore marks a decline of 1.5% compared to the previous month and a drop of 34% year on year… Patrick Harker and Christopher Waller of the Fed are also speaking today.
New York Fed President John Williams yesterday welcomed signs of slowing inflation, but said more needed to be done to get back to the 2% target. Speaking at a Fixed Income Analysts Society event, Williams noted signs of slowing inflation as weaker demand, falling import costs and easing market disruptions supply chain are beginning to exert downward pressure on commodity prices. The official further noted that inflation expectations were also moving in a bearish direction. However, Williams added that inflation remained far too high, partly due to non-energy services, and that more work was needed to bring inflation back towards the 2% target. This will require a period of below-trend growth and some… easing in the labor market.
Fed Vice Chair Lael Brainard, meanwhile, spoke yesterday in favor of slowing the pace of rate hikes, although monetary policy may need to remain tight for some time. Despite a limited labor supply, wages do not appear to cause a wage-price spiral, Brainard also found.
Boston Fed leader Susan Collins reiterated her support for a 25 basis point move on Feb. 1, after the upcoming monetary meeting, even though she said rates are likely to rise above 5% after that. hold for some time at this level to bring inflation down.
Markets continue to expect a maximum rate in the 4.75 to 5% range, as well as two rate cuts by the end of the year. Fed officials, meanwhile, do not really change their speech, a little harsher than this consensus, many regional leaders of the bank anticipating a terminal rate above 5%.
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Alphabet (+4%!) layoffs in turn massively! The parent company of Google and YouTube plans to cut 12,000 jobs worldwide, more than 6% of its total workforce. Group Chief Executive Sundar Pichai said he took “full responsibility for the decisions that got us this far”, in an email to employees also shared as a blog post on the company’s website. business today. These cuts follow a rigorous review of all product areas and functions “to ensure that our people and our roles are aligned with our highest priorities as a company,” in Pichai’s words. The layoffs will impact various segments, roles and regions.
After the massive plans of Meta (Facebook), Microsoft, Salesforce.com, Twitter and Amazon, so it’s Google’s turn to decide on the workforce. “These are important times to sharpen our focus, reorganize our cost base and direct our talent and capital to our most important priorities,” Pichai added.
netflix, the American video streaming giant, jumped 6% on Wall Street. However, the group unveiled quarterly revenues just online and a drop in profit, well below market expectations. In addition, the group’s iconic chief executive, Reed Hastings, will step down, with chief operating officer Greg Peters taking on the role of co-chief executive. However, operators are only interested for the time being in the evolution of subscriptions, which, on the other hand, is much more positive than expected. The group further believes that its plans to crack down on password sharing should fuel revenue.
For the past quarter, the fourth fiscal quarter of 2022, Netflix posted adjusted earnings per share of 12 cents, far from the FactSet consensus which was 55 cents. A year earlier, the group had posted earnings per share of $1.33. Revenues stood at 7.85 billion dollars in the quarter ended at the end of December, in line with market expectations, compared to a level of 7.71 billion dollars a year earlier, at the same time. Net income collapsed to $55 million, from $607 million a year earlier, mainly due to this non-cash charge of $463 million related to debt held in Europe. The positive point retained by the markets is therefore that of subscriber gains, which amounted it is true to 7.7 million over the quarter. Analysts had expected 4.58 million according to FactSet.
Schlumberger (-1%), the oil services giant, reported fourth-quarter earnings and revenue that beat expectations and increased its quarterly dividend by 43%. Excluding one-time items, adjusted earnings per share of 71 cents beat the FactSet consensus of 68 cents. Fourth-quarter revenue was $7.9 billion, up 5% sequentially and 7% year-on-year. GAAP EPS increased by 76% compared to last year and adjusted EPS by 73%! Cash flow from operations reached 1.6 billion and free cash flow 0.9 billion. The board approved a 43% increase in the quarterly dividend to 25 cents.
Nordstrom, the American chain of distribution of shoes, accessories, clothing, cosmetics and jewelry, stumbled 2% on Wall Street. The group slashed its guidance for fiscal year 2022 last night, due to increased promotions over the holiday season. The retailer now expects annual revenue growth to be on the lower end of its previous expectation of 5% to 7%. Nordstrom Rack net sales fell 7.6% in the nine weeks to Dec. 31, compared to the nine weeks ending Jan. 1, 2022. Nordstrom now expects adjusted earnings per share to range from 1.5 to $1.7 over the 2022 financial year, against a previous range between $2.3 and $2.6.
Texas Instruments (stable) announced last night the departure in April of its CEO Rich Templeton and his replacement by the current operational director Haviv Ilan. Ilan is a 24 year veteran of TI. Templeton will remain chairman of the board. “Haviv is an inspirational leader who is widely respected by our customers, employees and shareholders,” Templeton said.