Wall Street rises on inflation and Fed hopes

(Boursier.com) – Wall Street is slightly positive before the market on Monday, with the S&P 500 up 0.5%, the Dow Jones up 0.4% and the Nasdaq down 0.4%. A barrel of WTI brand oil rose by 3.2% and exceeded 76 dollars. An ounce of gold rose by 0.6% to $1,881. The dollar index lost 0.6% against a basket of benchmark currencies. Therefore, operators try to make a few purchases at the beginning of the year, which they consider to be cheap, in the hope that inflation will continue to fall and less strong monetary tightening by the Fed. The reopening of the Chinese economy is also a favorable factor.

Fed’s Raphael Bostic will weigh in on Wall Street news throughout the day. Consumer credit figures for November will be released this evening (FactSet consensus +$25 billion).

Elsewhere in the world this morning, German industrial production for November was +0.2% from the previous month, contrary to the stable consensus. France’s trade deficit reached 13.8 billion euros in November, against about 11.6 billion in October. The European Sentix index for January was negative at the level of -17.5. European unemployment figures came in at 6.5% in November, in line with expectations.

Fed chief Jerome Powell is speaking on the sidelines of a symposium on central bank independence in Sweden on Tuesday.

The main economic event of the week on Wall Street will be inflation on Thursday. The consumer price index for December is expected to be flat from the previous month and up 6.5% year-on-year (FactSet consensus), up from 7.1% a month ago. Excluding food and energy, the CPI is expected to increase by 0.3% compared to the previous month and by 5.7% compared to last year.

Values

apple exported $2.5 billion worth of iPhones from India between April and December, nearly double the previous fiscal year’s total, according to Bloomberg, showing how the American tech giant is accelerating its shift away from China as geopolitical tensions rise. Foxconn and Wistron shipped $1 billion worth of iPhones overseas in the first nine months of the fiscal year ending in March 2023, people familiar with the matter told Bloomberg. Apple’s other major contract manufacturer, Pegatron, is on track to outsource $500 million worth of iPhone production by the end of January.

Apple’s booming export figures show how Foxconn is ramping up its operations outside China, where chaos at its main factory in Zhengzhou has exposed weaknesses in the company’s supply chain. The situation in China forced the Californian group to reduce production estimates. This created a wider problem with weaker demand for electronics.

you are here The group is gaining ground on Wall Street in a sign of a potential recovery in demand after the latest price slump, saying delivery times for certain Model Ys in China have been extended. Tesla, which has lost two-thirds of its value on Wall Street in the past year, recently cut the prices of its Model 3 and Model Y in China. Reuters reported that Tesla lowered the starting price of the Model 3 from 265,900 yuan to 229,900 yuan (about $33,400), and for the Model Y from 288,900 yuan to 259,900 yuan. Thus, Tesla lowered the prices of its cars in China for the second time in less than three months. Combined with October price cuts and various incentives of up to 10,000 yuan given to Chinese buyers over the past three months, the latest cut represents a 13% to 24% drop in Tesla’s prices since September.

you are here It has also started offering discounts to electric car buyers who agree to purchase existing Model 3 or Model Y inventory in Singapore, a company sales representative told Reuters on Monday. Tesla is offering electric car buyers who trade in an existing internal combustion vehicle a $5,000 rebate and an additional $5,000 credit towards the cost of a Singapore driving certificate. Additionally, for qualified buyers who have room for installation at home, Tesla will provide a Wall Connector for charging, although the cost of installation will be covered by the consumer. These limited-time discounts in Singapore come just days after Tesla slashed prices in China, South Korea, Japan and Australia.

Macy’s The U.S. department store chain is giving up a pre-market base on Wall Street as it expects fourth-quarter sales to fall below its previous forecast in 2023 due to inflation and limited spending. “Based on current macro indicators, we believe the consumer will continue to be under pressure in 2023, particularly in the first half of the year,” CEO Jeff Gennette said. Retail giant Macy’s now expects fourth-quarter net sales to fall in the low to mid-range of its forecast.

Tilray, the North American cannabis producer, announced its results for the second fiscal quarter of 2023, which ended in late November 2022. The group earned $144 million, compared to $155 million a year ago. At constant exchange rates, revenues would have been $158 million. The group claims operating cash flow of $29 million and free cash flow of $25 million for the period. Tilray reports its 15th consecutive quarter of positive adjusted EBITDA. Quarterly loss per share was 11 cents, and adjusted loss was 6 cents. Tilray also completed the acquisition of Montauk Brewing Company, a major New York brewing player. Tilray posted a level of cash and cash equivalents of $433 million at the end of the quarter. The net loss reached $62 million, compared to a profit of $6 million a year ago. Adjusted loss per share was in line with analysts’ expectations.

Goldman Sachs in the context of the economic slowdown, it will continue as expected with the reduction of the labor force. According to Reuters, the New York investment bank is set to cut thousands of jobs worldwide starting tomorrow. More than 3,000 jobs will be affected, but the total has not yet been determined. Bloomberg, for its part, said yesterday that Goldman Sachs had to cut 3,200 jobs out of a total of just over 49,000 employees. Reuters adds that most of the core divisions are to be affected, with the investment banking arm “at the heart of the layoff plan.” Cuts could also be significant in the consumer products division. Reuters reports that the bank’s chief executive, David Solomon, sent a year-end voice memo warning of layoffs in the first half of January. GS resumed its annual layoff program in September, suspended during the pandemic. Reuters recalls that the bank has generally been cutting its workforce by between 1% and 5% each year, and the expected job cuts will add to these measures…

Ali Baba The Chinese e-commerce giant is gaining ground on Wall Street as its founder, Jack Ma, announces that he is relinquishing control of Ant Group. So Ma will relinquish control over fintech. Ant previously considered an IPO two years ago, but Beijing blocked the deal. Alibaba owns 33% of Ant Group and could potentially revive its IPO plans if Chinese regulators are happy with the subsidiary’s reorganization.

Morgan Stanley analysts, including Gary Yu, were quoted by Bloomberg and others as saying, “Following the regulatory overhaul at the end of 2020, we are seeing the first signs of an easing of the regulatory environment with government support for the private sector.” Demon. “Alibaba has been in the spotlight over the past 1-2 years, so we believe it could outperform other Chinese internet stocks as the environment eases.”

Salesforce According to the CEO of the group, Mark Benioff, the Fortune publication intends to reduce its expenses by 3-5 billion dollars. It should be recalled that on Wednesday the company announced that it will reduce the workforce by about 10%. In an audio recording obtained by Fortune, Benioff outlined a cost-cutting goal of $3 billion to $5 billion. He also said that the reduction of real estate owners will be an important component of reducing these costs. At another town hall meeting, a Salesforce executive said some Salesforce offices were “always better than 20%” and sometimes even below 10%.

Modern Wall Street is booming ahead of the stock market, while the American pharmaceutical group reported $18.4 billion in revenue last year with its anti-covid vaccine.

Abercrombie & FitchThe US apparel retailer has raised its sales estimates for the year-end holiday season amid strong demand for its flagship brands.

CinCor Pharma It’s up about 140% pre-market on Wall Street. Astra Zeneca It has agreed to buy the US biotech firm in a deal worth up to $1.8 billion. Thus, the Anglo-Swedish laboratory is trying to expand its portfolio of treatments for heart and kidney diseases.

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