(Boursier.com) – The American rating consolidates before the market on Tuesday. The DJIA and the S&P 500 are almost stable, while the Nasdaq grabs 0.3%. The trend therefore remains uncertain, after a new series of quarterly reports marked in particular by good figures from Exxon and UPS. Alphabet announces tonight. A barrel of WTI crude fell 0.6% to $87.7 on the Nymex. An ounce of gold rose 0.6% to $1,806. The dollar index fell 0.2% against a basket of benchmark currencies. Bitcoin is recovering towards $38,500.
The rebound of the last two days on Wall Street is for the time being only a technical jump. Operators remain feverish, faced with the monetary tightening expected from the Fed, which must lift its purchases of monthly bond assets and then begin, probably from March, a cycle of rate hikes. The reduction of the US central bank’s balance sheet is also on the program… The quarterly season continues on Wall Street, with accounts for the time being mostly in line or above expectations.
The recent rebound came after the worst start to the year on Wall Street since the global financial crisis of 2008-2009. Note that JP Morgan’s strategist, Marko Kolanovic, dismissed fears of recession, judging the recent stock market correction excessive. According to Bloomberg, strategists point to the impact of options activity, exacerbating market swings.
On the economic front on Wall Street on Tuesday, the final US manufacturing PMI for January 2022 will be released at 3:45 p.m. (consensus 55), just before the manufacturing ISM which will fall at 4 p.m. (consensus 57.5). Construction spending for December will be revealed at 4 p.m. (consensus +0.7%). The US Department of Labor’s JOLTS report for December will also be released at 4 p.m. (consensus 10.3 million job openings).
Quarterly financial publications of companies listed on Wall Street continue. Alphabet (Google) announcement tonight and will be the big star of the day. ExxonMobil and UPS publish before market. PayPal, AMD, Starbucks, Gilead Sciences, Chubb, General Motors, Electronic Arts, Match Group, Stanley Black & Decker, Sirius-XM, Waters, PulteGroup, pitney-bowes, H&R Block, ManpowerGroup and IAC/Interactivecorp, will also be part of the party this Tuesday.
Values
sanmina jumped 5% last night after trading on Wall Street. The American electronics production subcontractor announced, for its first fiscal quarter 2022 ended in early January, revenues of 1.76 billion dollars, a non-GAAP operating margin of 5% and adjusted earnings per share of 1.08 $. The consensus was 95 cents quarterly adjusted EPS for 1.65 billion billings. For the second fiscal quarter, Sanmina anticipates revenue ranging from $1.7 billion to $1.8 billion, as well as adjusted earnings per share housed between 95 cents and $1.05.
UPS, the American parcel delivery giant, published record fourth-quarter revenues of $27.8 billion, up 11.5%, compared to a consensus of around $27.1 billion. Adjusted profit for the quarter ended was $3.15 billion and $3.59 per share (+35%), also at an all-time high, against $2.33 billion a year earlier. Consolidated operating profit was 3.9 billion, almost doubling year-on-year (+38% on an adjusted basis). 2022 annual revenues are now expected to be $102 billion, against market consensus of $100 billion. In addition, the group boosts its dividend by 48% to $1.52 per title and quarter.
ExxonMobil, the American oil colossus, made a profit of 23 billion dollars for the year 2021. The group is also initiating a $10 billion share buyback program. The group generated $48 billion in cash flow from operating activities, the highest since 2012. Structural costs were reduced by an additional $1.9 billion, for total savings of nearly $5 billion since 2019. For the fourth quarter alone, the group posted a profit of $8.9 billion and $2.08 per share. Revenues totaled nearly $85 billion over the period, beating expectations. Adjusted EPS was $2.05, versus consensus $1.93.
pitney-bowes, the American leader in postal franking, which provides integrated systems and solutions, won before the stock market on Wall Street. For the fourth fiscal quarter, the group has just unveiled revenues of 984 million dollars, down 4% year-on-year, as well as adjusted earnings per share of only 6 cents. The consensus was 11 cents in quarterly adjusted EPS for $962 million in revenue. GAAP cash flow from operations was 85 million in the quarter, while free cash flow was positive at 39 million.
Stanley Black & Decker, the king of tools and industrial products, announced for the quarter ended a net profit of 328 million dollars or 1.99$ per title, against 467 million dollars a year earlier. Adjusted earnings per share were $2.14, versus the FactSet consensus of $2.04. Revenues rose to $4.07 billion from $4 billion a year earlier and $4.4 billion consensus. Management indicates that it is not satisfied with its quarterly volumes, nor with its cash flow performance. For 2022, the group anticipates adjusted EPS ranging from $12 to $12.5.
Waters, an American supplier of scientific equipment and software, announced for its fourth fiscal quarter revenues of 836 million dollars, an increase of 8% at constant currencies and 6% in consolidated data. Adjusted earnings per share were $3.67, compared to $3.65 a year earlier. The consensus was $3.47 adjusted EPS for $821 million in revenue. The group has also just announced the acquisition of technological assets and intellectual property rights from Megadalton Solutions in mass spectrometry.
CMA climbed before the stock market on Wall Street, while the American chain of cinemas had just delivered preliminary results that exceeded expectations. For the fourth fiscal quarter, ending at the end of December, the group therefore reports revenues of approximately 1.172 billion dollars, against 163 million dollars a year before and 1.09 billion consensus. The net loss would be reduced to between 115 and 195 million dollars, including non-cash charges ranging from 50 to 125 million. A year earlier, the net loss was 946 million.
AT&T, a US telecommunications operator, announced on Tuesday the planned spin-off of WarnerMedia in a deal valued at $43 billion, merging its media properties with Discovery Inc.. AT&T has also greatly reduced its dividend. Under the announced transaction, current AT&T shareholders would own 71% of the new Warner Bros. entity. Discovery, since they would receive 0.24 of the entity’s stock for each AT&T share held. The operator reduces its dividend to $1.11 per title, against $2.08 previously.
John Stankey, AT&T’s chief executive, believes that “split distribution will allow the market to do what markets do best.” He said he is confident that both stocks will be quickly valued based on the strong fundamentals and outlook presented. AT&T also intends to invest $20 billion this year in fiber for broadband internet services and expanding its footprint in the 5G wireless market.
Alphabet, the parent company of Google, publishes this evening, after trading on Wall Street, its financial results for the fourth quarter. Revenue excluding traffic acquisition costs is forecast at $59.3 billion, compared to $46.4 billion for the corresponding period last year. Earnings per share should exceed $30 for the quarter, compared to $22.3 in the fourth quarter of the previous year. Operators will be very attentive to the group’s advertising performance as well as the progress of cloud activities.