(Boursier.com) — The American rating remained oriented in the red on Monday, while the rally linked to the best inflation figures begins to turn short… The S&P 500 yields 0.39% to 3,949 pts, the Dow Jones -0.13% to 33,700 pts and the Nasdaq -1.09% to 11,024 pts – mainly victim of the fall in You’re here which lost 6.8% at the close, the American electric car giant having announced this weekend the recall of more than 321,000 cars in the United States due to a malfunction concerning the taillights…
On the Nymex, the barrel of WTI crude plunged 5% in session before rising to $80, Saudi Arabia having denied the rumor of discussions concerning an increase in oil production with other producing countries… According to the Wall Street Journal, which quoted representatives of the organization, the discussions would relate to an increase of a maximum of 500,000 barrels per day for the meeting of next December 4. The dollar index rose 0.7% against a basket of benchmark currencies.
Concerns related to Covid-19, with a further increase in cases in China, served as a pretext for profit taking on the US stock exchange earlier this week. Apple drops more than 2%, as Chinese news complicates the production of its new iPhones a little… The positive elements mainly linked to lower rate hikes by the Fed in a context of slightly less burdensome inflation persist despite everything … Recession fears are fueled alongside the latest economic data, however: The Chicago Fed’s US National Activity Index for the month of October 2022 came in at -0.05, versus a reading revised to +0.17 a month earlier. The previous September valuation was +0.1. The index is therefore moving into negative territory, signaling below-trend growth.
Atlanta Fed Chairman Raphael Bostic (non-voting member) is the latest Fed official to advocate a slower pace of rate hikes at the December FOMC meeting… If the economy behaves as expected, an additional 75 to 100 basis points of rate hikes would be warranted to contain inflation. This would imply a maximum rate range of 4.75-5%, below the 5-5.25% peak targeted by some strategists and other Fed members like James Bullard (St. Louis Fed). Bostic added that the Fed doesn’t need to keep ‘tightening’ until inflation falls back to 2%. Instead, it foresees an extended pause once rates reach a sufficiently restrictive level. As Fed officials continued to push the “higher for longer” rate narrative, following weaker-than-expected October inflation numbers, there was also growing traction behind the narrative. of the “peak of the Fed”, as policymakers cite the need to assess lagged impacts…
Bullard’s recent comments also caught the eye: The official noted that based on a Taylor rule approach, a restrictive level of rates could be in the range of 5-7%… Well while this was deemed hawkish, the 5-5.25% minimum range he spoke of remains in line with current market expectations. Finally, Deutsche Bank meanwhile pointed out that Vice President Lael Brainard’s comments last week did not explicitly link a reduction in the pace of tightening to a higher terminal rate.
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Taiwan Semiconductor Manufacturing (-1%), which has just soared on the stock market on Wall Street on an increase in the capital of the firm of Warren Buffett, Berkshire Hathaway, lost ground on Monday… The general manager of the Taiwanese giant of the foundry of semi- drivers indeed met the Chinese president Xi Jinping in Thailand, which causes a certain excitement on the financial markets this day.
Coinbase (-8.9%) is still correcting on the American side. Investors completely lost confidence in the sector after the collapse of the FTX platform.
waltz disney bounced back 6.3%. The group has announced the return of Robert A. Iger to lead the group as chief executive, effective immediately. Mr. Iger, who has spent more than four decades with the company, including 15 years as CEO, has agreed to return to this position for two years, with the mandate of the board of directors to define the strategic direction for renewed growth and to work closely with the Board of Directors to find a successor to lead the company at the end of his term. Mr. Iger succeeds Bob Chapek, who has resigned. Disney’s recent results, in particular its massive losses on the Disney+ streaming service, may have prompted this change, as the stock price has meanwhile returned to its eight-year lows on Wall Street.
“We thank Bob Chapek for his service to Disney over his long career, including guiding the company through the unprecedented challenges of the pandemic,” said Susan Arnold, Chairman of the Board of Directors. . “The Board of Directors has concluded that as Disney enters an increasingly complex period of industry transformation, Bob Iger is uniquely positioned to lead the company through this pivotal time.” “Mr. Iger has the deep respect of Disney’s leadership team, most of whom he worked closely with until his departure as executive chairman 11 months ago, and is greatly admired by the Disney employees around the world, which will allow for a seamless transition of leadership,” she said. The position of Chairman of the Board remains unchanged, with Ms. Arnold occupying this position.
“I am extremely optimistic about the future of this great company and delighted that the board has asked me to return,” said Iger. “Disney and its incomparable brands and franchises hold a special place in the hearts of so many people around the world, and especially in the hearts of our employees, whose dedication to this company and its mission is inspiring. I am deeply honored to be asked to once again lead this remarkable team, with a clear mission focused on creative excellence to inspire generations through unparalleled and bold storytelling.”
During his 15 years as CEO, from 2005 to 2020, Iger helped build Disney into one of the world’s most successful and admired media and entertainment companies with a strategic vision focused on creative excellence, technological innovation and international growth. He expanded Disney’s legacy of unprecedented storytelling with acquisitions of Pixar, Marvel, Lucasfilm and 21st Century Fox and quintupled the company’s market capitalization during his tenure as CEO.
J. M. Smucker (+1.3%), American food group with Folgers or Jif brands, is consolidating on Wall Street following the publication of the latest results. The American peanut butter specialist announced, for the second fiscal quarter of 2023, ending at the end of October 2022, sales of 2.21 billion dollars, up 8% year-on-year. Adjusted operating profit fell 2% to 379 million. Adjusted diluted earnings per share reached $2.4, nearly flat year-over-year. The consensus was $2.19 in adjusted earnings per share on $2.17 billion in revenue. Cash flow from operations was $205 million, up 24%. Free cash flow reached 103 million.
The company is also allowing itself to raise its forecasts for the year in terms of sales and adjusted EPS, with solid demand for its key brands. Sales are now expected to grow by 5.5 to 6.5%. Adjusted EPS is expected between $8.35 and $8.75. Free cash flow is expected to be stable at 550 million.
Bristol-Myers Squibb (+1.9%), the American pharmaceutical group, plans to cancel certain drug development programs due to the imminent rules of drug pricing from the American government, indicates the Financial Times. In an interview with the FT, Bristol-Myers Squibb CEO Giovanni Caforio said the company plans to cancel some programs, whether it’s a full indication for an existing drug or a new one. medication. The laboratory is thus examining its portfolio. The biggest impact of Biden’s Inflation Reduction Act could be felt in oncology.
NewsCorp (-2%). Activist investor Irenic is reportedly urging the group to reconsider its proposed merger with fox (-1%). The New York Times cites a letter sent by Irenic Capital Management, which owns about 2% of News Corp’s Class B shares, to the special committee of independent board members evaluating the merger proposal. In his letter, Irenic said it was better to drop the potential transaction than to agree to a deal that would not maximize News Corp’s value. Separately, Will Granger of Airlie Funds Management, which owns a small equity stake in News Corp, said in an interview that the fund saw little business rationale for the deal and would not support a merger unless Fox doesn’t pay a large premium to News Corp’s stock price or complete another transaction at the same time, such as the sale of News Corp’s real estate business.
Merck (+1.3%) accepted the acquisition of the group Imago Biosciences (+104% on the Nasdaq!), which develops cancer treatments, for a total equity value of 1.35 billion dollars.
Digital World Acquisition goes up 0.5%. Elon Musk has just decided to accept the return of former President Donald Trump to the social media network Twitter, which could affect the efforts of DWA which must carry the activities of Trump’s platform, Truth Social.