(Boursier.com) — Wall Street corrects this Wednesday, the S&P 500 falling by 0.71% now to 4,465 pts, the Dow Jones by 0.47% to 34,477 pts and the Nasdaq by 0.94% to 13,888 pts. The trend remains very cautious, with investors taking profits on concerns linked in particular to the Chinese economy and Sino-American tensions. Apple, Nvidia Or You’re here weigh particularly heavily… Oil prices are calming down a little, with WTI up 0.1% to $86.8 and Brent from the North Sea almost stable. An ounce of gold lost 0.6% to $1,941.
As for the Fed, Susan Collins, president of the Boston branch, indicated today that we could be “very close” or perhaps already at a peak in interest rates. However, she adds that the Fed is probably not yet done with inflation and judges that the rise in yields “could reflect the idea that rates remain at a high level.”
According to today’s report, the deficit in international trade in goods and services in the United States for the month of July stood at $65 billion, compared to the FactSet consensus of $68 billion and the revised reading of $63.7 billion. previous month.
The US composite PMI for August stood at 50.2 in final reading, compared to 50.4 previously. The Markit Services PMI stood at 50.5, slightly below the market consensus, while it stood at 51 in preliminary reading.
The publication of the ISM American services index for August has caused the Nasdaq to fall for a few moments. The index actually comes out…too strong, which limits the Fed’s ability to soften its policy. The August services ISM reached 54.5, compared to the FactSet consensus of 52.4 and 52.7 a month before. The new orders indicator is even more robust at 57.5 compared to 55 in July. Finally, note that the prices paid index and the employment index are at a high level.
Elsewhere in the world this morning, Australian second quarter GDP figures came in higher than market expectations. German manufacturing orders for the month of July declined much more than expected, with a fall of 11.7% compared to the previous month, in data adjusted for seasonal and calendar variations (FactSet consensus of -3.5%)… The German construction PMI was 41.5 in August and the British CIPS construction index was 50.8 in the same month. Retail sales in the euro zone for the month of July declined by 0.2% compared to the previous month and by 1% year-on-year.
In corporate news on Wall Street, after the accounts of Zscaler last night, UiPath, Core & Main, C3.ai, American Eagle Outfitters Or GameStop announce that day.
Values
Zscaler (-3%), the Californian cloud security group, is weakening on Wall Street. The group revealed rather solid results last night, as expected. For its fourth fiscal quarter, the group posted a loss of $31 million, compared to a deficit of $98 million a year earlier. Adjusted net profit was $100.9 million, compared to $36.4 million a year earlier. Adjusted EPS was 64 cents, compared to 49 cents consensus and 25 cents a year earlier. Revenues totaled $455 million (+43%), versus $430 million consensus. For the 2024 financial year which has just begun, the group expects annual adjusted EPS ranging from $2.20 to $2.25, while revenues are expected between $2.05 and $2.065 billion. The consensus was for $2.10 in adjusted EPS and $2.04 billion in revenue.
GitLab, the AI-powered DevSecOps platform, climbed 5% today on Wall Street following a robust quarterly financial release, marked by revenues up 38% to $139.6 million and symbolically adjusted earnings per share. positive of one cent. A year earlier, the group had posted revenues of $101 million for an adjusted loss per share of 15 cents. Quarterly gross margin increased to 89% on a GAAP basis and 91% on an adjusted basis. The non-GAAP operating loss was reduced to $4.3 million, compared to $27 million a year earlier. Adjusted net profit attributable to the group was $1.9 million, compared to a loss of $21.5 million a year earlier. The consensus for the quarter was 3 cents adjusted loss per share and $130 million in billings.
For its third fiscal quarter 2024, the group envisages revenues ranging from 140 to 141 million, and an adjusted operating loss ranging from 5 to 6 million $. Adjusted EPS is expected to be negative 1 to 2 cents. For the year, adjusted loss per share is expected between 5 and 8 cents, while revenue is expected between $555 million and $557 million.
Roku takes 7% on Wall Street. The group will cut around 10% of its workforce (360 positions affected), and is revising its sales estimates upwards. The Californian video streaming platform now anticipates adjusted sales for the third quarter ranging from $835 to $875 million, compared to a market consensus of $829 million. Concerning staff cuts, the group anticipates costs ranging from 45 to 65 million dollars. Depreciation charges of $160 to $200 million are also planned for the consolidation of certain offices.
Amazon (-1%). The FTC, the US Federal Trade Commission, could initiate action against the e-commerce giant this month, after the group failed to provide enough concessions to resolve complaints about alleged anti-competitive practices. The Wall Street Journal cites sources close to the matter on this subject. Bloomberg, also citing people familiar with the matter, confirms that the Federal Trade Commission is likely to sue Amazon later this month, following a four-year antitrust investigation. The antitrust action is expected to target the online retail giant’s marketplace, where third-party merchants, who now account for more than half of the company’s online sales, pay a commission on each sale, according to Bloomberg’s sources. who asked not to be named.
Apple (-3%). China has banned the use of iPhones at work for government officials, according to the Wall Street Journal. “The directive is the latest in Beijing’s campaign to reduce reliance on foreign technology and could harm China’s business.Apple in the country,” adds the WSJ, citing sources familiar with the matter. Other models of foreign smartphones are affected by the measure. The newspaper specifies that the extent of the measure is not clear, but understands that hierarchical superiors have therefore implemented this ban in recent weeks.
Google (Alphabet -1%) provisionally settled yesterday a class action alleging that its American Play Store violated federal antitrust rules by charging too much to its customers, notes Reuters, citing a court filing. Details of the settlement were not disclosed, the agency added. According to the suit involving more than 30 U.S. states and representing 21 million consumers, the plaintiffs claimed that consumers could have spent less on apps and had more options without Google’s supposed monopoly. The Californian group has therefore reached a provisional agreement as part of this trial. The parties, including lawyers representing the Utah attorney general – who leads the group of states – the class action plaintiffs and Google, requested the cancellation of a trial scheduled for November 6, from after Reuters, citing the filings. Google had previously denied any wrongdoing.
Boeing (-1%). Aviation Capital Group has finalized a contract with Boeing for the purchase of 13 737MAXs, bringing its order book to 47 B737MAXs. The new order includes seven 737-8s and six 737-10s, as the aircraft lessor expands its single-aisle options to meet strong customer demand for the 737 MAX family.
TSMC (-2%). Mark Liu, the president of Taiwan Semiconductor, indicated today that the company will decide during the week whether or not to invest in the IPO of chip designer Arm Holdings. The Arm IPO should be done at a much more reasonable price than initially expected, despite the current euphoria around artificial intelligence which has tended to boost sectoral valuations. According to Bloomberg calculations and recent documents, Arm’s valuation would be close to $55 billion at the time of the IPO, much lower than initial reports which suggested a level of $70 billion. It must be said that Arm is far from being a ‘pure player’ IA, the group drawing a large part of its income from mobile.