(Boursier.com) — The US rating is correcting again before trading on Friday, following the inflation figures. The S&P 500 is now down 0.8%, the Dow Jones 0.7% and the Nasdaq 1%. The barrel of WTI crude is up 0.4% on the Nymex at around $122. The ounce of gold yields 0.4% to $1,845. The dollar index advanced 0.5% against a basket of currencies. Bitcoin finally sinks below $30,000. On the bond markets, the yield of the 10-year T-Bond stands at 3.04% and that of the 30-year at 3.13%.
The markets were anxiously awaiting the US inflation figures for the month of May. Unfortunately, the news is bad, as the consumer price index climbed 1% compared to the previous month against 0.7% of FactSet consensus, bringing US inflation to 8.6% over one year against 8 .2% consensus and 8.3% in April. Excluding food and energy, the consumer price index rose 0.6% compared to the previous month, against 0.5% consensus. The increase excluding food and energy over one year reached 6%, against 5.9% consensus and 6.2% a month earlier.
Thus, US inflation in May, at 8.6%, reached its highest level since 1981, dampening recent hopes of a peak.
The preliminary index of US consumer sentiment for June, measured by the University of Michigan, will be released at 4 p.m. (consensus 58.2). The US fiscal balance for May will be released at 8 p.m.
The poor inflation figures revealed today therefore further complicate the task of the Fed, launched into a cycle of accelerated monetary tightening with rate hikes of 50 basis points. The room for maneuver is non-existent for the American central bank, which must deal with a particularly adverse environment after having maintained its rates far too low, and far too long. In such a context, the risk of a more pronounced economic slowdown increases sharply. FedWatch data now points to a potential cumulative rate hike of 215 basis points in 2022, with the fed funds rate nearing 3% at the end of December.
Values
DocuSign, the Californian specialist in electronic signatures and digital transactions, plunges before the stock market on Wall Street! The group has indeed just missed the profit consensus for the quarter and revised its forecasts downwards. In the first fiscal quarter of 2023, ending at the end of April 2022, the group posted revenue up 25% to $589 million, with a 26% increase in subscription revenue to $569 million. GAAP net loss was 14 cents, compared to 4 cents a year earlier. Adjusted earnings per share were 38 cents, compared to 44 cents a year earlier and 46 cents consensus. Free cash flow nevertheless increased to 175 million. For the financial year ending at the end of January 2023, the group expects revenues ranging from 2.47 to 2.482 billion, and an adjusted operating margin ranging from 16 to 18%.
Stitch Fix, the American online personalized styling service that uses recommendation algorithms and data science to personalize clothes, has been on the rise on Wall Street. The title is expected to decline by 20% before trading, after a fall of 10.5% yesterday. It has lost two thirds of its value since the beginning of the year. The stock price has been divided by more than ten since the peaks of January 2021. Rising costs and sluggish demand weighed on the accounts published last night. The group also plans to cut hundreds of jobs. 15% of the salaried workforce is affected, i.e. 330 jobs. For the third fiscal quarter, the group announced an adjusted loss per share of 72 cents compared to a consensus of 57 cents. A year earlier, the loss was 18 cents per share. Revenues reached 493 million dollars in the quarter ended in April, in line with expectations, against 535 million a year earlier.
netflix loses another 5% before the stock market on Wall Street, while Goldman Sachs has just downgraded the value of the streaming giant from neutral to sell! The target price is reduced from $265 to $186. Remember that Netflix’s setbacks continue, the group being the victim of a combination of unfavorable elements, with massive sharing of passwords, increased competition and seemingly unappreciated price increases. Netflix will have to do what is necessary to remedy these various problems, and it will take time. The service lost 200,000 subscribers over the quarter, a first in ten years. After the “stock market bubble” of confinement on Netflix and a certain number of other values adapted to the context, the return to reality is therefore harsh. The Netflix stock is dropping 68% of its value this year.
Goldman Sachs justifies its deterioration by the deterioration of the economic environment, and anticipates a slowdown in Netflix’s growth, adjusting downwards its 2022 and 2023 revenue estimates.
GS, in a same report, also downgraded from ‘neutral’ to ‘sell’ the video game group Roblox and the online auction giant eBay.
Apple / Alphabet. The CMA, the British competition authority, says it is considering an investigation into the positions of Apple and Google (Alphabet) in the market for browsers for mobile devices as well as the restrictions imposed by Apple on online gambling via its store. apps.