indices under pressure, Nasdaq jumps!
(Boursier.com) — Wall Street fell on Monday, with the S&P 500 down 1.3% to 4,017, the Dow Jones down 0.77% to 33,717 and the Nasdaq down 1.96% to 11,393. A barrel of WTI brand oil fell by 2.5% to $77.55. Operators have redoubled their caution ahead of the Fed meeting and the quarterly accounts of the tech giants, especially the 3As, Amazon, Alphabet and Apple, which will publish results on Thursday evening… JP among the great strategists of the Earth. Morgan and Morgan Stanley warned of risk in short-term markets, disbelieving in a recent stock market rebound, while monetary policy should remain “accommodative” globally.
Wednesday’s decision by the Fed’s monetary policy committee, the FOMC, is likely to be the highlight of a busy macroeconomic week (before the ECB and Bank of England on Thursday). Markets expect the Fed to slow its rate of tightening to 25 basis points and keep the Fed funds rate between 4.50% and 4.75%. That assumption gets the overwhelming majority of economists, with the CME Group’s FedWatch tool giving it a 98% chance…
Analysts highlighted expectations for a unanimous decision and hinted at only minor changes in the policy statement… Thus, the Fed’s statement is expected to reiterate forward-looking indications that “sustained increases” in the ‘fed funds’ rate will be appropriate. “. Jerome Powell’s press conference may thus be relatively warmongering. The Fed chief recently indicated that despite the recent slowdown in the pace of tightening, the Fed still has work to do on inflation, particularly the still-tight labor market. Powell also said more should also reaffirm his cautious stance on the outlook for easing as markets expect a turnaround in the second half. Thus, the US central bank chief could reaffirm his view from the December meeting that monetary policy will remain tight “for some time”. Additionally, Powell may note that December The SEP (Summary of Economic Projections) points remain in place despite the disinflation story being drawn…
The Fed’s monetary statement will be released at 8:00 PM on Wednesday, with Powell’s press conference at 8:30 PM.
The following day, investors will follow the monetary announcements of the Bank of England and the ECB. The ECB is likely to raise rates by 50 basis points and send a clear message. The consensus is for a 50 basis point hike from the BoE, although economists are divided on the scale of the move amid an economic slowdown.
Therefore, the week will be very active on Wall Street, of course, the Fed meeting, but also a lot of statistics, as well as the results of several big tech names on the stock market. On Monday, the Dallas Fed’s regional manufacturing index for January 2023 came in at -8.4, certainly negative and therefore in contraction territory, but above the FactSet consensus of -10. A month ago, the indicator was -20 (corrected data).
On Tuesday, the employment cost index, the S&P Case-Shiller home price index and the FHFA indicator, the Chicago manufacturing PMI, as well as the Conference Board’s consumer confidence index will be in the news – the Fed’s monetary meeting also begins.
On Wednesday, traders will watch the ADP Private Employment Report, Final Manufacturing PMI, ISM Manufacturing, Construction Spending, JOLTS Job Openings Report, Weekly US Domestic Oil Inventories Report and of course Jerome Powell’s press conference after the Fed’s monetary statement .
On Thursday, markets will follow the Challenger survey on jobless announcements, jobless claims, quarterly non-farm productivity and unit wage data, as well as industrial orders. Finally, the week will end on a high note on Friday with the monthly report on the US employment situation, the final PMI index and the ISM for American services.
As for the quarterly publications of the companies, NXP Semiconductors, GE Healthcare, ball, Core Financial Group and Vortex, publishes its accounts on Monday. Tuesday, ExxonMobil, Pfizer, McDonald’s, UPS, Caterpillar, Amgen, AMD, Chubb, striker, Mondelez, Marathon Petroleum, General Motors, Sysco, Electronic Arts, Spotify, Snap, International document, Western Digital, Match group or Moody’sthey will reveal their numbers.
wednesday, Meta platforms (formerly Facebook), Thermo Fisher Scientific, T-Mobile USA, Altria, Boston Scientific, Humana, Waste management, Metlife, McKesson, Johnson Controls, Allstate Where AmerisourceBergenwill follow.
Thursday will be particularly enlivened by the accounts of the dayapple, Alphabet and Amazon after retirement! Eli Lilly, Merck, Conoco Phillips, Gene Digital, Bristol-Myers Squibb, Qualcomm, Honeywell, Starbucks, Gilead Sciences, Estee Lauder, Becton, Dickinson, Air Products and Chemicals, The Illinois tool works, Intercontinental exchange, Ford Motor, Ferrari, Sirius-XM, The one who knows, Parker-Hannifin, Clorox, Cardinal Health, NewsCorp, Stanley Black & Decker, Harley Davidson Where Ralph Laurenalso announce on wednesday.
GE Healthcare (+2%) YoY revenue for the fiscal fourth quarter rose 8% to $4.9 billion, with organic growth of 13%. Quarterly net income fell to $554 million from $564 million a year ago. Adjusted Ebit came to $844 million versus $827 million a year ago. Adjusted earnings per share were $1.31, compared to $1.36 in the same period last year. Free cash flow more than doubled year-over-year to $987 million. GE HealthCare is reaffirming its 2023 guidance published earlier this month, with organic growth of 15 to 15.5% expected for an adjusted Ebit margin of 5 to 7%. Adjusted EPS is expected to be between $3.6 and $3.75 in 2022, compared to $3.38 in 2022.
SoFi Technologies (+12.4%) after the digital financial services company posted an upbeat full-year financial forecast. Total deposits at SoFi Bank increased 46% sequentially. For the first quarter, SoFi expects Adjusted Ebitda of $40-45 million, and for the full year, the company expects $260-280 million. Fourth-quarter GAAP revenue rose 60% to $457 million, as full-year 2022 revenue rose 58% to $443 million. Fourth quarter adjusted EBITDA increased 15 times year-over-year to a record $70 million. The fourth quarter’s GAAP net loss of $40 million improved 64% from a year ago. New member additions in the fourth quarter were approximately 480,000.
Ali Baba (-6%), Nio (-5.4%), Known (-8.8%), Pinduo-duo (-7.1%) and other Chinese stocks listed on Wall Street are under pressure. Mike McCaul, the new chairman of the US House of Representatives’ Foreign Relations Committee, has indeed said that “the risks of a conflict with China over Taiwan are very significant.”
Goldman Sachs (+1%) may leave Russia entirely after restructuring its assets there, according to Reuters, citing two well-informed sources.
Amazon According to the Bloomberg agency, from February 28 in the United States (-1.6%) it will stop free delivery for food orders under $150. In an email to Amazon Prime members, Amazon Fresh delivery costs will be $9.95 for orders under $50, $6.95 for orders between $50 and $100, and $3.95 for orders between $100 and $150. states…