Wall Street pre-opening AOF analysis – Mixed opening in sight despite job creations

(AOF) – The US indices should open with a negative bias on Friday, despite a very solid employment report. In fact, not only was the creation of jobs in the non-agricultural sector significantly increased in December (from 199,000 to 510,000), but that of January was much more numerous than expected (467,000 against 150,000). expected). The unemployment rate remained almost stable at 4%. Tech stocks should fare better thanks to results from Amazon and Snap. In pre-opening, the Dow Jones fell 0.5% while the Nasdaq was almost in balance.

Yesterday on Wall Street

US markets suffered, especially technology stocks. The latter were weakened by the disappointing outlook of Meta (Facebook), which saw more than a quarter of its capitalization go up in smoke. The pressure has increased following statements by ECB President Christine Lagarde, who refused to recommit not to raise rates this year. These comments led to pressure on rates. The resistance of financials allowed the Dow Jones to limit its decline to 1.45% at 35,111 pts. The Nasdaq fell 3.7% to 13,879 pts.

Macroeconomic figures

The number of job creations in the non-agricultural sector in the United States rose to 467,000 in January, well above market expectations (150,000). They had been 510,000 (revised from 199,000) in December. The unemployment rate remains virtually stable, falling from 3.9% to 4% (consensus at 3.9%).

The values ​​to follow

Activision Blizzard

Activision Blizzard, which is being acquired by Microsoft for $68.7 billion, posted disappointing results due to Call of Duty’s weaker-than-expected performance. In the fourth quarter, which ended in late December, the video game publisher’s net earnings per share were $564 million, or 72 cents per share, compared to earnings of $508 million (65 cents per share). one year earlier. Excluding exceptional items, earnings per share came out at $1.25, or 6 cents below consensus.

Amazon

Amazon should open strongly on Wall Street thanks to the good performance of its cloud activity, the rise in the price of subscription to its Prime service in the United States and the precision, provided for the first time, on its revenues advertisers. In the fourth quarter, net income for the e-merchant and cloud specialist reached $14.3 billion, or $27.75 per share, against $7.2 billion or $14.09 per share, a year earlier.

Bristol Myers Squibb

Bristol Myers Squibb reported net profit above expectations and online forecasts. In the fourth quarter, the American laboratory made a net profit of 2.4 billion dollars after a loss of 10 billion a year earlier. Excluding exceptional items, EPS came out at $1.83 against a consensus of $1.8. Sales rose in one year from 11 to 11.9 billion thanks to the anticoagulant Eliquis and the oncological treatment Opdivo. Wall Street was aiming for 12 billion.

Ford

Ford lifted the veil Thursday evening on its results for the fourth quarter of 2021. The American automaker published a net profit of 12.3 billion dollars over the period, compared with a net loss of 2.8 billion dollars a year. earlier. Excluding exceptional items, adjusted earnings per share stood at 26 cents, while the Bloomberg consensus was for 45 cents. For its part, Ford’s turnover stood at 37.7 billion dollars (+5%) in the fourth quarter of 2021, against a consensus of 34.79 billion dollars.

General Electric

The EDF board of directors should validate on Monday the takeover of General Electric’s nuclear activities for an amount of 273 million dollars, Les Echos reported on Friday. These activities were sold in 2015 by Alstom to the American conglomerate, when Emmanuel Macron was Minister of the Economy. Now president, this return to the French fold must be part of his nuclear plan, which will be detailed next week.

News Corp

News Corp published a profit of 262 million euros in the second quarter of its financial year 2022 (at the end of December 2021), a marginal increase compared to the 261 million generated in the same period in 2020. Adjusted profit, on the other hand, increased by 10 cents from $0.34 to $0.44 per share, and revenue rose 12.6% to $2.72 billion. The media group did not give a forecast for the rest of the financial year.

Regeneron

Regeneron Pharmaceuticals reported fourth quarter results supported by its Covid treatment. Net profit was $2.229 billion, up 94%. Excluding exceptional items, EPS stood at 23.72 dollars against a consensus of 20.4 dollars. Turnover doubled to 4.952 billion. Wall Street was aiming for 4.563 billion.

Snap

Down more than 20% on Thursday in the wake of Meta and its disappointing outlook, the title of the messaging service Snapchat is expected to rise by almost 50% thanks to an unexpected profit. In the fourth quarter, the group recorded a net profit of $22.55 million, or 1 cent per share, against a net loss of $97.24 million, or -8 cents per share, a year earlier. The market was anticipating a loss of 9 cents per share. Excluding exceptional items, earnings per share were 22 cents.



Reference-www.capital.fr

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