Despite Walt Disney, he went down with Tesla

America’s stock market remained in the red on Monday as the rally tied to top inflation numbers began to taper… S&P 500 0.39%, 3,949 points, Dow Jones -0.13%, 33,700 points and Nasdaq – 1.09 at 11,024 points % – lost 6.8% at the close, fell victim to Tesla’s fall, after the American electric car giant announced this weekend that it was recalling more than 321,000 vehicles in the US due to faulty taillights. .
WTI crude fell 5% to $80 a barrel on the Nymex exchange, after Saudi Arabia denied rumors of talks with other producing countries to raise oil output… according to the Wall Street Journal, citing representatives. The organization’s discussions will be about a maximum increase of 500,000 barrels per day for the next December 4 meeting. The dollar index rose by 0.7% against a basket of benchmark currencies.

Concerns about Covid-19, with cases rising further in China, provided an excuse for gains in the US stock market earlier this week. Apple fell more than 2% as news from China made production of its new iPhones a bit more difficult… In the context of slightly less loaded inflation, positive elements of the Fed’s rate hike persist despite all this… Recession fears However , bolstered by the latest economic data: The Chicago Fed US National Activity Index for October 2022 came in at -0.05, compared to a revised reading of +0.17 a month ago. The previous September estimate was +0.1. Therefore, the index moves into negative territory and shows a downtrend growth.

Atlanta Fed President Raphael Bostic (a non-voting member) is the latest Fed official to advocate a slower pace of rate hikes at the December FOMC meeting… an additional 75-100 basis points hike if the economy performs as expected. must be guaranteed to prevent inflation. That implies a maximum rate range of 4.75-5%, down from the 5-5.25% peak targeted by some strategists such as James Bullard (St. Louis Fed) and other Fed members. Bostic added that the Fed does not need to “tighten” until inflation falls to 2%. Instead, it provides for an extended pause after rates reach a sufficiently restrictive level. There was also growing traction behind the “Fed peak” narrative, as policymakers cited the need for an assessment, as Fed officials continued to push for “higher for longer” interest rates following weaker-than-expected October inflation numbers. delayed effects…

Bullard’s recent comments also drew attention: The official noted that based on the Taylor rule approach, the cap on tariffs could be in the range of 5-7%… Well, that’s a hawkish 5-5.25% minimum. the range he is talking about remains in line with current market expectations. Finally, Deutsche Bank meanwhile noted that comments made by Vice President Lael Brainard last week did not clearly link the slowdown in the pace of tightening to a higher terminal rate.

Values

Taiwan Semiconductor Manufacturing (-1%), which just rose on Wall Street by increasing the capital of Warren Buffett’s firm Berkshire Hathaway, loses positions on Monday… The general manager of the Taiwanese foundry giant Semiconductors actually met with Chinese President Xi Jinping in Thailand, which means that today the financial creates a certain fever in the markets.

Coinbase (-8.9%) is correcting again in the American rating. After the collapse of the FTX platform, investors completely lost faith in the sector.

Walt Disney fell 6.3%. The group announced that Robert A. Iger has returned to lead the group as CEO, effective immediately. Mr. Iger, who has spent more than four decades with the company, including 15 years as CEO, has agreed to return for a two-year term with a mandate from the board to set strategic direction for redevelopment. working closely with the Board of Directors to find a successor to lead the company at the end of the term. Mr. Iger succeeds Bob Chapek, who resigned. Disney’s recent results, particularly big losses at its Disney+ streaming service, could lead to that change, as the stock price meanwhile has returned to an eight-year low on Wall Street.
“We thank Bob Chapek for his long career of service to Disney, including leading the company through the unprecedented challenges of the pandemic,” said Susan Arnold, Chair of the Board of Directors. “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 important period.” “Mr. Iger deeply respects Disney’s leadership team, most of whom he worked closely with until he stepped down as executive chairman 11 months ago, and is greatly admired by Disney employees around the world, which in turn will allow for a smooth transition for the company. leadership,” he said. The position of Chairman of the Board remains unchanged, held by Ms. Arnold.
“I am extremely optimistic about the future of this great company and am delighted that the board has asked me to return,” Iger said. “Disney and its unparalleled brands and franchises hold a special place in the hearts of many people around the world, especially our employees, whose commitment to this company and its mission is inspiring. I am honored to be asked. A clear mission of creative excellence to inspire generations through unique and bold storytelling. to lead this remarkable team once again.
During his 15 years as CEO from 2005 to 2020, Iger helped transform 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 unparalleled storytelling by acquiring Pixar, Marvel, Lucasfilm and 21st Century Fox, and quintupled the company’s market capitalization during his tenure as CEO.

American food group JM Smucker (+1.3%) with Folgers or Jif brands is consolidating on Wall Street after the publication of the latest results. The American peanut butter specialist announced that sales for the second fiscal quarter of 2023, which ends at the end of October 2022, increased by 8% to $2.21 billion. Adjusted operating profit decreased by 2% to 379 mln. Adjusted diluted earnings per share came in at about $2.4 year-over-year. The consensus was for $2.19 in adjusted earnings per share on revenue of $2.17 billion. Cash flow from operations increased by 24% to $205 million. Free cash flow reached 103 million.
The company is also allowing its core brands to raise their forecasts for the year in terms of sales and adjusted EPS, with strong demand. Sales are now expected to increase by 5.5-6.5%. Adjusted EPS is expected to be between $8.35 and $8.75. Free cash flow is expected to be stable at 550 million.

Bristol-Myers Squibb (+1.9%), an American pharmaceutical group, plans to cancel certain drug development programs due to the US government’s upcoming drug pricing regulations, the Financial Times reports. In an interview with the FT, Bristol-Myers Squibb CEO Giovanni Caforio said the company plans to cancel some programs, whether for existing drugs or full indications for new drugs. Thus, the laboratory checks its portfolio. The biggest impact of Biden’s Inflation Reduction Act could be felt in oncology.

News Corp (-2%). Activist investor Irenic will urge the group to reconsider its proposed merger with Fox (-1%). The New York Times cites a letter from Irenic Capital Management, which owns about 2% of News Corp’s Class B shares, to a special committee of independent board members evaluating the merger proposal. In his letter, Irenic said it was better to abandon a potential transaction than agree to a deal that would not increase 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 logic for the deal and would not support the merger unless Fox News paid a large premium. Corp’s stock price or complete another transaction at the same time, such as the sale of News Corp’s real estate business.

Merck (+1.3%) agreed to buy cancer treatment developer Imago Biosciences (+104% on Nasdaq!) for a total equity value of $1.35 billion.

Digital World Purchases rose 0.5%. Elon Musk has just decided to accept former President Donald Trump’s return to Twitter, which could affect the efforts of DWA, which is supposed to carry the operations of Trump’s platform, Truth Social.

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