(Boursier.com) – Wall Street asserts itself in the green this Friday, the S&P 500 winning 0.48% at 4,314 pts, the Dow Jones 0.29% at 33,930 pts and the Nasdaq 0.59% at 13,318 pts. On the Nymex, a barrel of WTI crude advanced 0.4% to $71.6. An ounce of gold gained 0.1% to $1,980. The dollar index is stabilizing against a basket of currencies. Note that the S&P 500 has entered “bull market” territory, which really just means that the broad US index has recovered 20% or more from its most recent low.
The news is quite limited this weekend on Wall Street. Note that the jobless claims announced yesterday rose much more than expected for the past week in the United States, which raises the probability of a Fed monetary pause. The US Department of Labor reported jobless claims for the week ended June 3 at 261,000, up 28,000 from the previous week, and the highest since October 2021. The consensus was positioned at 240,000 according to FactSet.
No US statistics are scheduled for Friday. The next big meeting is scheduled for Tuesday, June 13 in the United States with the inflation figures for the month of May (consensus +0.1% compared to the previous month, i.e. +4.2% over one year; +0.4% and +5.2% excluding food and energy).
As for the US central bank, it will deliver its monetary verdict on Wednesday, June 14, as operators have been speculating for weeks on a potential pause. According to the CME Group’s real-time FedWatch tool, the current probability of a status quo leaving the fed funds rate between 5 and 5.25% stands at 72%, compared with a 28% probability of a hike of 5.25%. a quarter point. Even in the event of a pause, it is quite possible that the Fed will use the July meeting to drive home the point and raise rates by an additional quarter point…
Jerome Powell, Chairman of the Fed, could thus signal at this meeting on June 14 that the widely anticipated status quo constitutes a “leap” and not a pause, the Fed wanting to avoid an easing of financial conditions.
US equities are on track to end higher for the week, with bullish leadership this time coming from small caps (Russell 2000) and cyclicals, which seem set to take over from ‘mega caps’. Asian markets rose this morning with a Nikkei up nearly 2%, a Chinese composite SSE up 0.55% and a South Korean spot gaining 1.2%. European markets have changed little today.
Recent market attention has focused on the outperformance of small caps and certain cyclical pockets against the big tech names, which had been favored since the start of the year. Support came from both soft landing expectations and technical momentum. However, the market is also facing concerns over overbought conditions…
In another register, Secretary of State Antony Blinken will visit China next week, in a context of persistent Sino-American tensions.
Elsewhere in the world, operators were monitoring price indicators in China this morning for the month of May, with a consumer price index up 0.2% compared to last year, as expected, and a producer price index down 4.6%, ie marked deflation of the Chinese PPI in May, compared to a consensus of -4.3%.
Values
You’re here had not aroused such enthusiasm on the stock market for months. The title still ignites an additional 7% on $250, after having already climbed 4.6% at the close of Wall Street yesterday. It must be said that the group of Elon Musk is now displayed as the key player in the electric car market. So, General Motors announced yesterday that it is partnering with Tesla to take advantage of the Texas-based automaker’s network of superchargers. This announcement comes just two weeks after Ford announced a similar partnership with Tesla to allow Ford vehicles access to Tesla’s charging network. The Tesla Supercharger Network will therefore be open to GM drivers from 2024 and will initially require the use of an adapter. By 2025, GM expects its electric vehicles to have a NAC entry that will allow direct access to Tesla superchargers.
DocuSign (stable), a leader in digital signing and transaction management, announced accounts that exceeded expectations last night. For the first fiscal quarter of the staggered 2024 financial year, the group posted adjusted earnings per share of 72 cents, against a consensus of 53 cents and a level of 38 cents a year earlier. Revenues totaled $661 million, beating consensus by 3% from $589 million for the corresponding period last year. Revenues therefore increased by 12%. Billings increased by 10% year-on-year. For the fiscal year ending at the end of January 2024, the group expects revenues ranging from 2.713 to 2.725 billion dollars, for an adjusted operating margin ranging from 22 to 24% and an adjusted gross margin from 81 to 82%.
Dish Network (-4%), the American satellite TV and telecommunications group, intends to raise capital to meet 5G development commitments, according to the New York Post, citing a source. The NY Post quotes a person familiar with the matter as saying that DISH Chairman Charlie Ergen would be “desperate” to sell assets to raise money to meet the company’s 5G build requirements, adding that if Dish is likely to meet its national 5G coverage commitment of 70% by the deadline By the end of this month, it will likely take billions of additional capital to meet the 75% coverage deadline in 2025, as this incremental increase requires expansion to more rural and hard-to-serve regions.
Visa (-1%) would be close to an agreement to buy the Brazilian Pismo, according to Bloomberg. People familiar with the matter say the deal, in which the fintech company could be valued at around $1 billion, could be announced this month. Bloomberg talks about advanced discussions. Pismo provides cloud-based payment and banking platforms. Visa could thus announce an agreement as soon as this month for the acquisition of the Sao Paulo-based company, said people familiar with the matter quoted by the agency, who asked not to be identified because the discussions are not public. A final agreement has not been reached and the talks could still break down, the agency adds.
Nio (+7%), the Chinese manufacturer of electric vehicles, listed on Wall Street, climbed following its publication of the first fiscal quarter. Vehicle deliveries were 31,041 in the first quarter of 2023, or 10,430 premium “smart” electric SUVs and 20,611 premium “smart” electric sedans, or an increase of 20.5% compared to the first quarter of 2022 and a decrease of 22.5% compared to the fourth quarter of 2022. Total revenue amounted to 10.67 billion yuan ($1.55 billion) in the first quarter of 2023, an increase of 7.7% compared to the first quarter of 2022 and a decrease of 33.5% compared to the fourth quarter of 2022. Basic and diluted net loss per ordinary share/ADS was 2.91 yuan in the first quarter of 2023, compared to 1.12 yuan in the first quarter 2022. Excluding stock-based compensation expense and other items, basic and diluted adjusted net loss per share was 2.51 yuan ($0.36).
Target (-1%) fell on Wall Street following a deterioration of Citi, which has just gone from ‘purchase’ to ‘neutral’ on the title already battered by the distributor. The file lost 17% over one month and appears on its lowest since the summer of 2020. “Given the competitive landscape, we believe that Walmart is likely to continue to gain market share (including against Target ), and Target’s heavy exposure to discretionary selling will not serve them well in the current macro environment,” the Citi analyst said. The analyst cites new data showing Target store traffic fell 13.9% in the last week of May, likely as inflation-weary shoppers continued to spend cautiously despite the weekend holiday Memorial Day weekend. Citi believes that the macroeconomic environment will remain unfavorable for Target, because 55% of its sales are in discretionary products which should come under pressure over the rest of the year, if not more.
netflix (+2%) is progressing on Wall Street, while the American entity of the streaming giant would have posted the best growth in new subscriptions in more than four years, with the effect of the fight against password sharing. At least that’s what a report from the analytics platform Antenna suggests, which shows a jump in US new subscription signings, the highest in at least four and a half years, following the very recent implementation of measures against password sharing. Antenna says the May 25-28 period was the strongest four-day period for Netflix US subscription signings since the company tracked this data, which dates back to 2019.
Coinbase (+3%). Rating agency Moody’s has revised its credit rating outlook from ‘stable’ to ‘negative’ following lawsuits from the Securities & Exchange Commission, which has filed a complaint against the “crypto -trading”, accusing him of operating illegally. The regulator said the largest cryptocurrency trading platform in the United States broke rules that required it to register as an exchange. In a lawsuit filed in federal court in Manhattan, the SEC said Coinbase had operated since at least 2019 as an unregistered broker handling cryptocurrency transactions, circumventing requirements intended to protect investors.
Microsoft (+1%). Activision will be able to put forward its arguments in Microsoft’s legal battle with the British competition authority over the takeover of the video game publisher for $69 billion. The CMA’s veto jeopardizes the agreement. Activision Blizzard will be able to intervene for Microsoft and should be heard next month before the competition appeal tribunal. Recall that the Federal Trade Commission of the United States also blocked the operation, a decision which is the subject of another appeal from Microsoft.