(Boursier.com) — The US rating remained oriented in the red on Monday, while the increase linked to the best inflation numbers begins to be short… S&P 500 gives 0.39% to 3,949 pts, Dow Jones -0.13% to 33,700 points and Nasdaq -1.09% to 11,024 points – primarily victims of the fall in You are here which lost 6.8% at the close as the US electric car giant announced over the weekend the recall of more than 321,000 cars in the US due to a defect in the taillights…
On the Nymex, a barrel of WTI crude fell 5% in the session before rising to $80, as Saudi Arabia dismissed rumors of discussions about an increase in oil production with other producing countries… According to the Wall Street Journal, which cited representatives of the organization , the discussions would concern an increase of a maximum of 500,000 barrels per day until the December 4 meeting. The dollar index rose 0.7% against a basket of benchmark currencies.
Concerns related to Covid-19, with a further rise in cases in China, served as a pretext for profit-taking on the US stock market earlier this week. Apple falling more than 2% as Chinese news slightly complicates the production of their new iPhones… The positive elements, mainly linked to lower rate hikes by the Fed in a context of slightly less burdensome inflation, continue despite everything .. .Recession fears have been fueled by the latest economic data, however: the Chicago Fed’s US national activity index for the month of October 2022 came in at -0.05, compared to a reading that was revised to +0.17 a month earlier. The previous September rating was +0.1. The index is therefore moving into negative territory, signaling below-trend growth.
Atlanta Fed President Raphael Bostic (non-voting member) is the latest Fed official to advocate for a slower pace of rate hikes at the December FOMC meeting… If the economy behaves as expected, another 75 to 100 basis points interest rate increases be justified to limit inflation. This would imply a maximum rate range of 4.75-5%, below the peak of 5-5.25% targeted by some strategists and other Fed members such as James Bullard (St. Louis Fed). Bostic added that the Fed does not need to keep “tightening” until inflation falls back to 2%. Instead, it foresees an extended pause when rates reach a sufficiently restrictive level. As Fed officials continued to push the “higher for longer” interest rate narrative, following weaker-than-expected October inflation numbers, there was also growing traction behind the “peak of the Fed” narrative as policymakers cite the need to assess delayed impact…
Bullard’s recent comments also caught the eye: the official noted that based on a Taylor rule approach, a restrictive level for rates could be in the range of 5-7%… While this was considered hawkish, the minimum level was 5-5.25%. range he talked about remains in line with current market expectations. Finally, Deutsche Bank, meanwhile, pointed out that Vice President Lael Brainard’s comments last week did not explicitly link a reduction in the pace of tightening to a higher terminal rate.
Taiwan Semiconductor Manufacturing (-1%), which has just risen sharply on the stock market on Wall Street after a capital increase in Warren Buffett’s company, Berkshire Hathaway, lost ground on Monday… The general manager of the Taiwanese giant in the foundry of semi-drivers actually met the Chinese President Xi Jinping in Thailand, creating some tension in the financial markets today.
Coin base (-8.9%) is still correcting on the American side. Investors completely lost confidence in the sector after the collapse of the FTX platform.
disney waltz increased by 6.3 per cent. The group has announced that Robert A. Iger will return to lead the group as CEO, effective immediately. Sir. Iger, who has spent more than four decades at the company, including 15 years as CEO, has agreed to return to this position for two years, with the board’s mandate to define the strategic direction for renewed growth and work closely with the board to find a successor to lead the company at the end of his term. Mr. Iger succeeds Bob Chapek, who has resigned. Disney’s recent results, particularly its massive loss on the Disney+ streaming service, may have prompted this change, as the stock price has meanwhile returned to an eight-year low on Wall Street.
“We thank Bob Chapek for his service to Disney throughout his long career, including leading the company through the unprecedented challenges of the pandemic,” said Susan Arnold, chairman of the board. . “The board has concluded that as Disney enters an increasingly complex period of industry transformation, Bob Iger is uniquely positioned to lead the company through this pivotal time.” “Mr. Iger has the deep respect of Disney’s leadership team, with whom he worked closely until his departure as executive chairman 11 months ago, and is greatly admired by Disney employees around the world, which will allow for a seamless transition of leadership,” she said. The position of Chairman of the Board remains unchanged, with Mrs. Arnold in this position.
“I am extremely optimistic about the future of this great company and pleased that the board has asked me to return,” Iger said. “Disney and its inimitable brands and franchises hold a special place in the hearts of so many people around the world, and especially in the hearts of our employees, whose dedication to this company and its mission is inspiring. I am deeply honored to be asked again to lead this remarkable team with a clear mission focused on creative excellence to inspire generations through exceptional and bold storytelling.”
During his 15 years as CEO, from 2005 to 2020, Iger helped build Disney into one of the world’s most successful and admired media and entertainment companies with a strategic vision focused on creative excellence, technological innovation and international growth. He expanded Disney’s legacy of unprecedented storytelling with the acquisitions of Pixar, Marvel, Lucasfilm and 21st Century Fox, and quintupled the company’s market value during his tenure as CEO.
JM Smucker (+1.3%), American food group with Folgers or Jif brands, consolidates on Wall Street after the publication of the latest results. The American peanut butter specialist announced for the second fiscal quarter of 2023, which ended in late October 2022, sales of $2.21 billion, an increase of 8% year-over-year. Adjusted operating profit fell 2% to DKK 379 million. Adjusted diluted earnings per share came in at $2.4, almost unchanged from the prior year. The consensus was $2.19 in adjusted earnings per share on $2.17 billion in revenue. Cash flow from operations was $205 million, an increase of 24%. Free cash flow reached DKK 103 million.
The company is also allowing itself to raise its forecasts for the year in terms of sales and adjusted EPS, with solid demand for its key brands. Sales are now expected to grow by 5.5 to 6.5%. Adjusted EPS is expected between $8.35 and $8.75. Free cash flow is expected to be stable at DKK 550 million.
Bristol-Myers Squibb (+1.9%), the US pharmaceutical group, plans to cancel certain drug development programs due to the imminent rules on drug pricing by the US government, the Financial Times reports. In an interview with the FT, Bristol-Myers Squibbs CEO Giovanni Caforio said the company plans to cancel some programs, whether it is a full indication for an existing drug or a new one. The laboratory is thus examining its portfolio. The biggest impact of Biden’s Inflation Reduction Act could be felt in oncology.
NewsCorp (-2%). Activist investor Irenic is reportedly urging the group to reconsider its proposed merger with Fox (-1%). The New York Times cites a letter sent by Irenic Capital Management, which owns about 2% of News Corp’s B shares, to the special committee of independent directors evaluating the merger proposal. In his letter, Irenic said it was better to drop the potential transaction than agree to a deal that would not maximize News Corp’s value. Separately, Will Granger of Airlie Funds Management, which owns a small stake in News Corp, said in an interview that the fund saw little business case for the deal and would not support a merger unless Fox paid a large premium to News Corp’s share price or completed a other transaction at the same time, such as the sale of News Corp’s real estate business.
Merck (+1.3%) accepted the purchase of the group Imago Biosciences (+104% on Nasdaq!), developing cancer treatments, at a total equity value of $1.35 billion.
Digital World Acquisition increases by 0.5 per cent. Elon Musk has just decided to accept former President Donald Trump’s return to the social media network Twitter, which may affect the efforts of DWA, which will carry the activities of Trump’s platform, Truth Social.