(CercleFinance.com) – Wall Street ends without direction but the weekly results are largely positive with +2.5% overall for the S&P500 (which crumbles by 0.1% this Friday).
The Nasdaq crumbles by 0.2% but maintains a lead of +3.15%, the Dow Jones which aligns a 5th session of rise in a row (+2.3% in total) counterbalances these declines with +0, 33% and exceeded 34,500, its best closing since the end of November 2022 (or mid-April 2022).
US export values have been supported over the past 48 hours by a still weak Dollar, which is still yielding a few fractions (the Euro tested 1.1248, it ended the week at 1.1230, i.e. +2.4% on a weekly basis) .
The $-Index is sinking below the 100 threshold, with a new annual low recorded at 99.60, before a timid jump of 0.13% towards 99.90.
On the bond side, US T-Bonds tightened by +7Pts towards 3.8320% despite the -0.2% decline in import prices in the United States, after a drop of 0.4% in May, while that export prices fell 0.9% last month, after falling 1.9% the previous month.
The Labor Department indicates that over the last 12 months, US import prices have fallen by 6.1% in raw data (-1.4% excluding petroleum products), and those for exports have contracted 12% (-12.4% excluding agricultural products) in June.
This Friday marked the real kickoff of the quarterly publications of several heavyweights of the rating.
Bad surprise for Citigroup (-4%): drop of -36% in its profit in the second quarter (to $2.6 billion against $4.55 billion in Q2 2022), -13% in trading income and -24 % of investment banking revenue.
The net profit of the American bank thus fell to 2.92 billion dollars (2.60 billion euros), or 1.33 dollars per share, during the period from March to June, against 4.55 billion
On the other hand, the planetary No. 1, JP-Morgan (+0.7%), very involved in the rescue of regional banks with the FED, posted a +67% increase in net profit to $14.4 billion (8. $64bn in Q2 2022), despite provisions for credit losses increased by 27% to $2.9bn.
Revenues increased by 8% to $41.3 billion compared to the first quarter of 2023.
Blackrock (-1.6%) posted a 25% increase in its profit (to 9.28 dollars per share), boosted by gains in its investment funds and growing activity in ETFs: the market was hoping for a slightly more sustained growth in sales (down slightly despite bullish markets).
Note that the food group PepsiCo and the airline Delta Airlines (-2.5%) both raised their annual targets on Thursday, on the occasion of their second quarter publications.
Delta Air Lines has announced an order for 12 more A220-300s, bringing the airline’s total A220 firm order to 131 aircraft – 45 A220-100s and 86 A220-300s. Delta has ordered the A220 five times and is today the largest A220 customer and operator in the world.
The Department of Labor announces that import prices in the United States fell 0.2% in June, after falling 0.4% in May, while export prices fell by 0, 9% last month, after a fall of 1.9% the previous one.
Nevertheless, in variation over the last 12 months, US import prices fell by 6.1% in raw data (-1.4% excluding oil products), and those for exports contracted by 12 % (-12.4% excluding agricultural products) in June.
The latest figure for the day and the week is surprisingly strong: US consumer confidence improved sharply in July, according to the index calculated by the University of Michigan (UMich) which stands at 72.6. in preliminary estimate, to be compared with 64.4 for the previous month, well beyond the 66 expected by many economists.
Note the strong increase in consumers’ ‘sentiment’ both on their current situation (77.5 against 69 in June) and on their outlook (69.4 against 61.5 in June).
Among the main variations observed within the Nasdaq and the ‘S&P’, Peloton unscrewed by almost -10%, Lucid Group by -5.9%, Moderna by -4%, Analog Devices -3.2%, Cisco and Intel -2.1%.
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