(Boursier.com) — Wall Street is looking uncertain this Monday. The S&P 500 is consolidating by 0.13% to 5,453 points, while the Dow Jones is losing 0.16% to 39,055 points. The Nasdaq is gaining 0.12% to 17,752 points, supported in particular by Tesla, which is rebounding on the eve of the announcement of its quarterly deliveries. On the Nymex, the barrel of WTI crude is gaining 0.6% to $82. The ounce of gold is losing 0.3% to $2,331. The dollar index is down 0.1% against a basket of reference currencies. Caution prevails, while the indices remain close to historical highs and the political situation is not really exciting, with a very weakened Biden in the run-up to the November election.
The final manufacturing PMI for June 2024 came in at 51.6, compared to a consensus of 51.7 and a preliminary reading of 51.7. This reflects a modest expansion in U.S. domestic manufacturing activity in June.
The U.S. ISM manufacturing index for June 2024 came in at 48.5, compared with the FactSet consensus of 49.1 and a reading of 48.7 a month earlier. The index remains below 50, which signals a contraction in activity and enters into contraction with the PMI released earlier today.
U.S. construction spending for May 2024 was down 0.1% from the prior month, versus a +0.3% consensus and a +0.3% revised reading from the prior month. Year-over-year, spending rose 6.4%.
In other major events this week on Wall Street, Fed Chairman Jerome Powell speaks early tomorrow. The JOLTS report on U.S. job openings will be released at 4 p.m. tomorrow.
On Wednesday, investors will be watching the Challenger, Gray & Christmas survey on layoff announcements, the ADP report on private employment, as well as the balance of international trade in goods and services and the final US composite PMI index. The ISM services and industrial orders are expected the same day. The FOMC Minutes will be published in the evening.
Finally, on Friday, operators will follow the monthly government report on the employment situation in the United States for the month of June (FactSet consensus 190,000 job creations for a 4% unemployment rate).
Values
Boeing (+2%) as expected concluded an agreement for the acquisition of Spirit AeroSystemsfor an amount of $4.7 billion in shares. Note thatAirbus will take advantage of the acquisition to take over part of the American supplier’s activities. The European aircraft manufacturer has thus entered into a binding agreement with Spirit concerning a potential acquisition of major activities linked to Airbus, in particular the production of fuselage sections of the A350 in Kinston, North Carolina, in the United States, and in St. Nazaire; wings and mid-fuselage of the A220 in Belfast, Northern Ireland, and in Casablanca, Morocco; as well as pylons of the A220 in Wichita, Kansas.
Boeingwhich spun off Spirit in 2005, will buy its former subsidiary for about $37.25 per share, giving it an enterprise value of $8.3 billion including debt. “The combination of Spirit and Boeing will allow for greater integration of the two companies’ manufacturing and engineering capabilities, including safety and quality systems,” Spirit CEO Pat Shanahan said. Boeing has long been considering a buyout of its former subsidiary. The American planemaker announced the planned departure of its CEO Dave Calhoun, following the recent crisis. Some analysts have cited Spirit’s Shanahan as a possible successor.
Separately, the U.S. Justice Department will criminally charge Boeing with fraud in two fatal crashes and ask the planemaker to plead guilty or face prosecution, two people familiar with the matter told Reuters on Sunday. The DoJ plans to formally offer Boeing a deal that includes a financial penalty and an independent monitor to monitor safety and compliance practices for three years, the people said. The Justice Department is expected to give Boeing until the end of the week to respond to the offer, which would be non-negotiable. If it refuses, the planemaker would be prosecuted…
Meta (-2%). “The DMA is here to give back to European users the power to decide about their ‘data’. Meta has forced millions of users across the EU into a binary choice: ‘pay or consent'”, Thierry Breton said on X. “According to our preliminary conclusion, this is a violation of the DMA. Today, we are taking an important step to ensure Meta’s compliance”, added the European Commissioner, the EU accusing Meta, parent company of having violated its digital rules. European regulators are concerned about Meta’s “pay or consent” model, which had indeed launched ad-free subscription services for Facebook and Instagram in Europe in November, giving users the choice to consent to being “tracked” by benefiting from a free service financed by advertising revenues or to pay to not share their data. Regulators believe that the choice presented gives a false alternative.
They had previously accused Apple of also violating the DMA digital rules, a decision that could result in a hefty fine for the iPhone maker. The Apple group is also the subject of another investigation into the new fees imposed on app developers…
Chewy fell 4% on Wall Street, while influencer Keith Gill, better known by the nickname Roaring Kitty, nevertheless took a stake valued at 6.6% in the group’s capital, just after having shaken up the value GameStop (-8%). Chewy is an American pet products retailer. Gill’s stake was disclosed via a regulatory filing with the SEC. He holds 9 million shares, which is worth $245 million at Friday’s closing prices. Ryan Cohen, CEO of GameStop, is also the founder of Chewy.
You’re here (+6%!), the American electric vehicle giant, is due to announce its second-quarter deliveries tomorrow, Tuesday. Over the period, deliveries could have declined by nearly 4% to around 438,000 units according to the current consensus, which would reflect a second consecutive quarter of correction. Elon Musk’s group is indeed facing tough Chinese competition, as well as a more general slowdown in demand for EVs…
Among the quarterly financial releases on Wall Street this week, Constellation Brands announcement Wednesday.