(Boursier.com) — The New York Stock Exchange, which ended last week on an optimistic note, after good retail sales figures in the United States, continued its momentum on Monday, up 0.6% on the DJ at 31,481 points, 1.08% on the Nasdaq at 11,575 points, while the S&P500 takes 0.7% to 3,891 points. The dollar is down against the euro at 1.0160/$ on the prospect of monetary tightening that is probably a little less “muscular” than expected in the United States… Analysts are now talking of a Federal Reserve rate hike of ‘just’ 75 basis points at its July 27 meeting, as U.S. central bank officials last week signaled their opposition to a bigger hike despite the acceleration in the economy inflation, the track of the 100 points having circulated on the markets…
ECO AND CURRENCIES
Of the 35 S&P-500 companies that reported results, 80% have done better than analysts expected so far…
On the bond market, the yield on ten-year US securities gained 2 basis points to 2.9503%. Its German equivalent takes eight points to 1.197%.
Amid political uncertainty in Rome, the 10-year yield spread between Germany and Italy hit a one-month peak at 234.50, before falling back to 224.3 as the political situation in Italy where the future of Mario Draghi remains in the balance after his recent resignation which was refused by the Italian president. “Any indications that may increase the likelihood of a snap election will be negative for Italian bonds and cause the spread to widen.”
On Thursday, the European Central Bank is expected to kick off a rate hike cycle, starting with a modest quarter-point hike. Observers will also be very attentive to the characteristics of the “anti-fragmentation” tool that will be presented to alleviate the pressure on the borrowing costs of the most indebted members of the euro zone…
Oil prices are rising: Brent recovers 3% to $105 a barrel and US light crude 2% to more than $100.
Recall that two “hawkish” members of the Fed, Christopher Waller and James Bullard, spoke out last Thursday in favor of a rate hike of 75 basis points this month and not 1%, a more aggressive scenario. that Wall Street had begun to price in, following the latest scorching US inflation report.
Last weekend’s pleasant surprise came from retail sales in the United States, which rebounded more strongly than expected in June. The Commerce Department reported a 1% rise in sales from the previous month while economists polled by Reuters on average forecast a 0.8% increase.
VALUES
Goldman Sachs (+3.7%) announced a 48% drop in its profit in the second quarter in a context of strong market fluctuations. The group’s net income also slipped 23% to $11.86 billion for the second quarter and profit fell by almost half to $2.8 billion, or $7.73 per share. Asset management penalized the bank, with net income of $1.08 billion, down 79% from the second quarter of 2021.
In contrast, trading revenue jumped 32% to $6.47 billion, with fixed rate and commodity brokerage revenue up 55% and equity trading revenue up 11%. This has enabled the group to offset the impact suffered by its investment banking activities…
Bank of America (+1%) published a drop in its profit in the second quarter, caught up by a drop in income from its investment bank compared to a hyper-active season a year ago. Profit attributable to Bank of America shareholders fell to $5.93 billion, or 73 cents per share, for the quarter ended June 30, from $8.96 billion, or $1.03 per share, a year earlier. earlier. Faced with the stock market correction and slowing M&A activity, fees from Bank of America’s investment banking business fell 47% to $1.1 billion in the quarter.
Its revenue, net of interest expense, rose 6% to $22.7 billion over the same period.
Twitter (-0.4%) remains closely followed on Monday, Elon Musk having filed a motion opposing the request for an expedited trial from Twitter. The businessman believes that the court had to reject the “unjustifiable request” of the social network… Elon Musk gave up the takeover of the group 10 days ago, ending a suspense that had lasted for long weeks. The boss of Tesla, who had threatened to terminate the takeover agreement at 44 billion dollars because of the vagueness reigning over the spam and “bot” accounts, finally carried out his threat in a definitive way… To explain his decision, he accused Twitter of having violated its contractual obligations by providing in particular erroneous or incomplete data on the number of fake accounts…
Starbucks (+1.7%) is not in a formal process of selling its UK business, a spokesperson for the US group said after the “Times” newspaper reported earlier that the chain cafes “was exploring a potential sale”.
The group has also confirmed that Howard Schultz will remain its interim CEO until March 2023 pending the search for a permanent successor… The interim manager had indicated that the chain’s next boss cafes would be “external to the company”: “for the future of the business, we need an area of experience and expertise in a number of disciplines that we do not currently have”, explained H.Schultz.
Delta Airlines (+5%) announced having ordered from Boeing (+ 2.6%) 100 copies of its 737 MAX 10 aircraft for a value of approximately 13.5 billion dollars at the list price and to have put an option for 30 additional aircraft. This order was announced at the Farnborough show.
The new order will begin to be delivered from 2025 and it will allow the American airline to have a total fleet of more than 300 Boeing 737s, representing in volume its largest range after that of the Airbus A320.