(Boursier.com) — The American rating fell on Friday, following the publication of a much better than expected employment report! This excellent economic news once again swept away hopes of a “Fed pivot”, which had carried the indexes earlier this week following Jerome Powell’s comforting words about the potential slowdown in the pace of monetary tightening. The S&P 500 was down 0.79% to 4,044 pts, while the Nasdaq fell 1% to 11,367 pts and the Dow Jones lost 0.49% to 34,228 pts. On the Nymex, a barrel of WTI crude is now up 0.7% to $81.8. The ounce of gold drops 1% to $1,798. The dollar index rose 0.5% against a basket of currencies.
According to today’s report from the US Department of Labor, non-agricultural job creations in the United States for the month of November stood at 263,000, against market consensus of 200,000. The unemployment rate came in as expected at 3.7%, stable compared to the previous month. Job creations in the private sector were 221,000, against a consensus of 200,000. Manufacturing job creations were 14,000, against 20,000 consensus. The average hourly wage increased twice as fast as expected, up 0.6% compared to the previous month against 0.3% consensus. It climbed 5.1% over one year against 4.6% consensus.
In addition, job creations for October, previously estimated at 261,000, have been revised to 284,000.
The labor force participation rate in November was 62.1%, against a consensus of 62.3%.
After a well-received intervention by Jerome Powell, head of the Fed, this week, operators are again shaken by this “good surprise” on American employment, while they were betting on much less dynamic figures. This Friday, the comments of several regional officials, Thomas Barkin and Charles Evans in particular, are still followed, while Powell had reassured this week by paving the way for a possible slowdown in the pace of monetary tightening, and even if the fight against the inflation remains the priority. For Barkin, the supply of labor seems to remain limited. He adds that the Fed has been clear on its plan to do more against inflation. Barkin says the high level of household savings makes the Fed’s job more complicated. The Fed’s efforts to rebalance demand will finally be “not easy”, given this excess household savings and fiscal stimulus.
According to the CME Group’s FedWatch tool, the probability of a half-point rate hike on December 14, after the next monetary meeting, is nearly 77%, compared to about 23% probability. with a new oversized gesture of 75 basis points. The fed funds rate is currently between 3.75 and 4%.
Values
marvel technology, the Californian semiconductor manufacturer, fell 6% on Wall Street following its publication. For the third fiscal quarter, the group posted adjusted earnings per share of 57 cents, compared to 59 cents FactSet consensus and 43 cents a year earlier. Revenues were $1.54 billion in the quarter ended October, missing consensus by 1% from $1.21 billion for the comparable period last year. Consolidated net profit was $13.3 million and 2 cents per share, compared with a loss of $62.6 million a year earlier. The management, which evokes the reductions of stocks of certain customers, particularly in the storage of data, also delivers very cautious prospects. Marvell forecasts, for the quarter ended in January, an adjusted EPS of 46 cents, plus or minus 5 cents, against 62 cents of consensus.
Ulta Beauty (-1%), an American specialist in the distribution of beauty products, announced rather resilient quarterly accounts. The beauty and salon chain announced third-quarter results that beat expectations and raised its outlook for the full year, following price increases. The management also evokes a “sustained resilience of the beauty category”. The company reported net income of $274.6 million, or $5.34 per share, compared with $215.3 million, or $3.94 per share, in the same quarter last year. Revenue reached $2.3 billion, compared to $2 billion in the comparable quarter of the previous year. Same-store sales, for stores open at least 14 months, rose 14.6%. Analysts polled by FactSet had expected adjusted EPS of $4.15 and revenue of $2.22 billion. Same-store sales were expected up 9.1%.
Ultimate also raised its full-year sales and earnings outlook. Executives said they expect sales of between $9.95 billion and $10 billion and comparable store sales growth of 12.6% to 13.2%. The company expects earnings per share to be between $22.6 and $22.9.
Zscaler, the Californian cloud security group, fell 9% on Wall Street, on a guidance deemed a little too cautious, the group also indicating that the finalization of the deal would take longer. However, the forecast is slightly higher than Wall Street’s expectations. The company reported a loss of $68.2 million in the fiscal first quarter, or 48 cents per share, compared with a loss of $90.8 million, or 65 cents per share, the year before. Adjusted net income, which excludes stock-based compensation and other items, was 29 cents per share, compared with 14 cents per share a year ago. Revenue reached $355.5 million, compared to $230.5 million in the comparable quarter a year earlier. ‘Calculated billings’ increased 37% to $340.1 million. Analysts polled by FactSet had expected adjusted earnings of 26 cents per share on revenue of $340.7 million and billings of $333.1 million.
Zscaler expects adjusted earnings of 29 cents to 30 cents per share on revenue of $364 million to $366 million for the fiscal second quarter. Analysts polled by FactSet estimated adjusted EPS at 26 cents per share on revenue of $325.1 million and billings of $355.3 million. The group also expects adjusted earnings of $1.23 to $1.25 per share and revenues of around $1.53 billion for the year.
Blackstone lost another 3% on Wall Street on Friday, after a correction of 7.1% last night. The American asset management giant announced yesterday its intention to limit redemptions of investors on its real estate fund Real Estate Income Trust (REIT) of 69 billion dollars. The group says it has received too many requests. Redemptions would have reached predefined limits, and Blackstone would therefore not have set the limits in an emergency. Still, the announcements fueled investor concerns about the future of the REIT, which accounts for about 17% of Blackstone’s earnings, according to Reuters. Many REIT investors fear Blackstone has been slow to adjust the vehicle’s valuation to that of publicly traded REITs that have been hit by rising interest rates, a source familiar with the fund told Reuters. Rising interest rates are indeed weighing on real estate values as they make financing properties more expensive…
Blackstone indicated a return of 9.3% since the beginning of the year on the REIT, net of fees, while the Dow Jones US Select REIT Total Return Index for its part was down 22.2% on the same period. This outperformance led some investors to wonder how Blackstone was managing to value the REIT and caused “profit taking”. A Blackstone spokesman quoted by Reuters declined to comment on how the New York-based company calculated the REIT’s valuation, but said its portfolio was concentrated in rental housing and logistics in the south and west. United States, with short-term leases and rents above inflation. Two sources familiar with the matter told Reuters that turmoil in Asian markets, fueled by worries about China’s economic outlook and political stability, also contributed to the buybacks. Majority of redeeming investors are said to be from Asia and in need of cash…
AMC Networks (-2%), American media group at the origin of the series ‘The Walking Dead’, plans to record a restructuring charge of 350 to 475 million dollars linked to the elimination of approximately 20% of its workforce US. The restructuring plan had already been announced at the end of November. The media company is adjusting to a drop in cable subscribers and a slowing economy. Its chief executive, Christina Spade, resigned this week after just three months in the job.
You’re here (steady). Elon Musk yesterday delivered the company’s first heavy-duty tractor-trailer to PepsiCo without offering an updated forecast for the truck’s prices, production plans or how much cargo it could haul. Musk, who appeared on stage at an event at Tesla’s Nevada factory, said the battery-powered truck will reduce highway emissions, outperform existing diesel models in power and safety, and would deliver fast charging technology that Tesla would also use on its Cybertruck.
“If you’re a trucker and want the most badass rig on the road, this is it,” Musk said. It had been five years since Tesla announced it was developing this all-electric truck. While industry experts remain skeptical that battery electric trucks can haul heavy loads hundreds of miles economically, Tesla’s tests seem to show otherwise. During the presentation, Musk’s first for Tesla since taking over Twitter, the electric vehicle maker did not give an indicative price for the ‘Semi’, nor provide details on the truck’s variants, deliveries to PepsiCo or other customers, Reuters finds. Tesla said it would start using the Semi to ship parts to its factory in Fremont, California.