Mid-session analysis AOF Wall Street – Investors catch their breath

(AOF) – Wall Street is moving in dispersed order and close to equilibrium after yesterday’s strong rebound. Technology stocks are marking time due to the rise in interest rates. The 10-year US rose 3 basis points to 1.81%. Investors continue to question the pace of monetary normalization promised by the Fed. In terms of values, AT&T announced the split of WarnerMedia while Exxon announced its highest earnings in seven years. UPS jumped on very strong results. Around 5:20 p.m., the Dow Jones gained 0.16% but the Nasdaq lost 0.18%.

UPS took off more than 12% to $227.74 per share in early trading on Wall Street, largely dominating a struggling S&P 500. The parcel delivery service reported before the markets opened a net profit well above expectations, but also unveiled excellent prospects for 2022. The company also raised its dividend.

Today’s economic figures

The ISM manufacturing index came out in January at 57.6 against a consensus of 57.5 after 58.8 in December (revised figure of 58.7).

Construction spending increased by 0.2% in December against a consensus of +0.6% after +0.6% in November (revised figure of +0.4%).

The manufacturing PMI in the United States came out in January at 55.5 against a flash estimate of 55 after 57.7 in December.

The values ​​to follow today

AMC

AMC expects fourth-quarter 2021 revenue to climb to $1.17 billion from $162.5 million a year earlier. That’s above the FactSet consensus of 1.09 billion. The chain of cinemas also expects a loss of 114.8 million dollars (loss of 946.1 million a year ago); the consensus is 119 million. A non-cash impairment charge related to long-lived assets estimated between $50 million and $125 million is also expected.

AT&T

AT&T has announced its desire to spin off its stake in WarnerMedia as part of the combination with Discovery. The transaction, which involves the sale of the telecoms giant’s 100% stake in WarnerMedia to its own shareholders on a pro rata distribution, followed by the merger with Discovery, is expected to close in the second quarter of 2022. Upon closing of the transaction, each AT&T shareholder will receive, on a tax-free basis, approximately 0.24 shares of the new merged entity for each share of AT&T common stock held.

Exxon

Exxon reported earnings above expectations but slightly disappointing sales. In the fourth quarter, the oil major made a net profit of 8.87 billion dollars, against a loss of 20.07 billion a year earlier. Excluding exceptional items, EPS came out at 2.05 dollars against a consensus of 1.94 dollars. Turnover jumped 82.9% to 84.97 billion. Analysts were targeting 85.01 billion. Exxon has also started its $10 billion share buyback program.

Meta (Facebook)

Silvergate Capital Corporation announced that it has acquired intellectual property and other technology assets related to the operation of a blockchain-based payment network from Diem Group (ex-Libra). Under the terms of the agreement signed with Meta, Facebook’s parent company, Silvergate issued 1.22 million shares of Class A common stock to Diem and paid $50 million in cash. Based on the January 31, 2022 closing price, the total consideration value was $182 million.

Pfizer/BioNTech

Pfizer and BioNTech will file a dossier in the United States with a view to receiving emergency authorization for their vaccine for children aged 6 months to 4 years. This green light could be given by the end of the month. A three-dose vaccination schedule for children under 5 will likely be recommended eventually, according to press reports.

UPS

UPS posted a profit of $3.09 billion in the fourth quarter of 2021, or $3.52 per share, after posting a loss of $3.35 billion a year earlier. Excluding exceptional items, EPS stands at 3.59 dollars, up 35%, thus exceeding the FactSet consensus which saw it at 3.10 dollars. Turnover is up 11.5% to 27.77 billion dollars, against a consensus of 27.06 billion. The parcel delivery service took the opportunity to raise its quarterly dividend by 49% to bring it to $1.52 per share.



Reference-www.capital.fr

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