(Boursier.com) — Wall Street stumbles before stock market this Friday. The S&P 500 returns 1%, the Dow Jones 0.7% and the Nasdaq 1.6%. A barrel of WTI crude is up 0.5% on the Nymex at $117.6. The ounce of gold yields 0.5% to $1,862. The dollar index advanced 0.3% against a basket of currencies. Bitcoin stumbles below $30,000.
Non-farm job creations in the United States for the month of May 2022 came out at 390,000, well above the consensus of 323,000. The unemployment rate stood at 3.6% according to the Labor Department, against 3.5% consensus and 3.6% a month earlier. Job creations in the private sector came out at 333,000, against a consensus of 302,000. The average hourly wage rose 0.3% from the previous month, against 0.4% consensus. This salary increases by 5.2% over one year. The labor force participation rate stood at 62.3%.
Non-farm payrolls for April were also revised up to 436,000 from 428,000 previously estimated.
The final American composite PMI indicator for the month of May will be revealed at 3:45 p.m. (consensus 53.8 for the composite index and 53.5 for services), while the ISM for services will be known at 4 p.m. ( FactSet Consensus 55.7).
Fed Vice-Chair Lael Brainard will speak in the afternoon. Yesterday, Brainard indicated that the US central bank was anticipating a slowdown in the economy, but that it was still too early to specify the timing. She also said that the Fed made controlling inflation its priority.
Fed officials have for some pushed back on the idea of a September “pause” initially mooted by Raphael Bostic, who himself clarified this week that his comments were not intended to signal a ‘Fed put’. Brainard also indicated yesterday that there was no reason at this stage to consider a break in September in raising rates, while inflation remains far too high.
Values
Okta, which jumped 11% at the close last night on Wall Street, took another 18% after the market! The American identity and access management firm has raised its forecast on the sidelines of strong quarterly. For the first fiscal quarter, revenue soared 65% and subscription revenue 66%. Total revenues were $415 million. Adjusted operating loss was $41 million. Adjusted net loss was $43 million, 27 cents per share, versus $13 million a year earlier. Free cash flow was positive at $11 million over the period, compared to $53 million a year earlier. For the staggered fiscal year 2023, total revenue is now expected between $1.805 billion and $1.815 billion, up 39 to 40%, for an adjusted operating loss ranging from 167 to 162 million and an adjusted net loss of 1.11 at $1.14 per title.
lululemon, the Canadian group listed on Wall Street, specialist in sportswear, particularly in the field of yoga, announced last night particularly robust quarterly results, exceeding its already notable performance from the pandemic. LULU has also boosted its forecast. The company now anticipates annual revenue of $7.61 billion to $7.71 billion, down from a previous range of $7.49 billion to $7.62 billion. 2022 earnings per share are expected between $9.42 and $9.57, down from a previous range of $9.15 to $9.35. Adjusted earnings per share are expected to be between $9.35 and $9.5, higher than the consensus. Over the quarter, adjusted EPS was $1.48, beating expectations, versus $1.16 a year earlier. Revenue hit $1.61 billion, beating consensus 4% from $1.23 billion a year earlier.
Cooper Companies, the American designer of medical equipment, specialist in ophthalmology, announced yesterday evening, for its second fiscal quarter, revenues up 15% to 830 million dollars, with above all a performance of 40% from CooperSurgical. GAAP diluted earnings climbed to $2.55, while adjusted EPS fell 4% to $3.24. The adjusted EPS consensus was $3.43, for $821 million in revenue. Management emphasizes revenue growth and market share gains. The 2022 guidance is adjusted. Revenues are expected between 3.28 and 3.312 billion dollars, with organic growth of 9 to 10%. Adjusted earnings per share are expected between $13.09 and $13.29.
Bull, the American giant of lawn care equipment, active in particular in mowers, missed the sales consensus for the quarter ended but beat that of profits. For its second fiscal quarter, which ended at the end of April, the group posted a net profit of $131 million, or $1.24 per share, against $142 million a year earlier. Excluding items, adjusted EPS was $1.25 versus $1.24 FactSet consensus. Revenue improved 8.7% to $1.25 billion. Toro is also allowing itself to revise its annual financial forecasts upwards, despite the supply chain challenges.
Turning Point Therapeutics jumped 117% before stock market on Wall Street! Bristol-Myers Squibb will indeed buy this biotechnology group active in oncology, at the clinical stage, as part of a cash deal valuing Turning Point at 3.8 billion dollars. The total consideration for the deal is $4.1 billion. Under the terms of the agreement, Turning Point shareholders will receive $76 per share in cash, a premium of 122.5% over the previous day’s closing price. Bristol-Myers anticipates an accretive impact of the deal on its adjusted earnings per share from 2025. BMS intends to finalize the operation using its available cash.
American Airlines in turn raises its revenue forecast for the current quarter given the strength of demand and the increase in tariffs. The first American airline now anticipates total revenue 11% to 13% higher than the level of the second quarter of 2019, against a rise of 6 to 8% previously envisaged. It expects its capacities to represent 92% to 93% of the level observed over the same period of 2019 against 92 to 94% previously. Unit revenue should increase by 20 to 22% against a previous range of 14 to 16%, while unit costs, excluding fuel, are expected to rise by 10 to 11% (vs. 8 to 10%).
Kohls is gaining ground before the stock market on Wall Street, while according to the New York Post, the group’s sale process would be suspended for the time being. The deadline was set for this week for the final offers, but several potential buyers would have withdrawn, according to multiple sources. According to the NYP, the process would have been affected by the group’s recent warning on sales and profits for the year, on the sidelines of the publication of the first quarter. NYP sources add that the postponement could extend beyond the next quarter, to give Kohl’s more time to stabilize its business.
For its part, the Wall Street Journal understands that Sycamore Partners would have provided an offer of around $55 per share, while Franchise Group would have offered nearly $60 per share.
Apple will improve working conditions in retail stores in the face of union organizing efforts, reports Bloomberg. Citing employees with knowledge of the plans, the article says the California-based Apple group has told staff at some stores that changes aimed at easing work hours will come into effect in the coming months, with some of the changes to be put in place. in place in the coming weeks, and others later in the year. Changes to be made would include a 12-hour minimum between work shifts, up from the current 10-hour minimum, a maximum of three days per work week after 8 p.m., a maximum of five consecutive work days up from six days currently, and one dedicated weekend day off for each six-month period for full-time employees.
Coinbase drop on Wall Street today. The cryptocurrency exchange announced on its corporate blog: “In response to current market conditions and continued efforts to prioritize business, we will be extending our hiring freeze for new roles and replacements for the foreseeable future. and cancel a number of accepted offers”.