Saturday , January 16 2021

in order dispersed before the "half-term" elections



The week started halfway to Wall Street, where the indexes ended in a disperse order, on the eve of mid-term elections in the United States, which will prove Donald Trump's policy test. the action apple (-2.8%) weighed once again the stock prices on the internet, which weighed Nasdaq (-1.4% for alphabet, -1.1% for Facebook, -2.2% for Amazonand -1.4% for NVIDIA). The title of Berkshire Hathaway On the other hand it has jumped more than 5% after good results and the announcement of a repurchase of billions of dollars of its own shares.

When closing the index Dow Jones rose 0.76% to 25,461 points, while the broad index S & P 500 He won 0.56% to 2,738 points and that index Nasdaq Composite, rich in technology and biotechnology stocks fell from 0.38% to 7,328 pts (after producing more than 1% in the session).

Last week, the three indexes recovered 2.3%, 2.4% and 2.6%, respectively, recovering part of the lost ground the previous week (-3% for the DJIA and -4% for the S & P 500 and Nasdaq). Since the last historical record, the DJIA still yields 5%, the S & P 500 released 6.4% and the Nasdaq lost 9.6%, again touching the 10% correction zone.

Dollar, rate and decline of WTI oil before the midterm elections

In the foreign exchange market, the dollar weakened on Monday: the dollar index, which measures its evolution against a basket of 6 currencies, fell 0.26% to 96.29 points. The euro, for its part, rose 0.22% to $ 1,1414, while negotiations continue in Europe on the Italian budget. In US bond markets, interest rates (which move in the opposite direction of bond prices) declined slightly. 10-year T-Bond performance declined at a basic point at 3.20%.

Oil prices ended Monday on a disorganized New York Nymex market,
reacting differently to the new sanctions that Washington imposed since Sunday in Iran. A crude barrel WTI sold 0.06% to $ 63.10 (December contract), its sixth consecutive fall session, while Brent earned 0.47% to $ 73.17 (January contract) . WTI returns to its lowest level in seven months and has fallen 18% since the peaks of the year, above $ 76, reached in early October.

In the macroeconomic front of the United States, service activity rates came out dynamic in October. The ISM service index reached 60.3 against a consensus of 59.1 and a level of 61.6 in September. For its part, the Markit PMI's final service index was 54.8, against a consensus of 54.7 and after 54.7 in September.

Fed comments waited on Thursday

Investors generally wait and see before the elections on Tuesday. According to the latest polls, the Republican Party of Donald Trump is expected to retain its majority in the Senate, but may lose it in the House of Representatives for the benefit of the Democrats.

The week will also be marked by a Fed monetary policy meeting on Wednesdays and Thursdays: analysts expect a status quo on key rates, but they will be very attentive to any Fed comment about growth and its effects. This is due to the increase in customs barriers between the United States and China.

Note that this meeting will not be followed by a press conference by President of the Fed, Jerome Powell. Speak in public at the end of the day of December, for which the markets are waiting for a new round of quarter-point money bolt, which would be the 4th of this year.

In the commercial front, China and the United States continue to explode the heat and the cold in the possibility of concluding a commercial agreement that rebalancing trade between the two countries, which currently benefit more China in the trade balance. From the beginning of the commercial dispute, the United States of Donald Trump has already imposed additional taxes on imported Chinese goods worth 250,000 million dollars and threaten to tax additional $ 257 million (that is, all Chinese products). Beijing responded with additional taxes worth about $ 110 billion in US imports.

Donald Trump and Xi Jinping continue their commercial confrontation

On Monday, Chinese President Xi Jinping spoke on the occasion of the first "International Import Exhibition" in Shanghai, where he said that his country "will increase its efforts" to open its market and increase its purchases. Outside, but without announcing any concrete measure. Without naming the United States, the Chinese president denounced "protectionism" and "isolation," and said that all countries should clear their doors before attacking others. "They should not walk with a lantern directed at the lack of others without illuminating theirs," said Xi.

For his part, Donald Trump repeated on Twitter Monday his optimism about the conclusion of an agreement with Beijing. The president of the United States said that China hurt the US economy. U., But a fair deal goes on. "We have imposed 250,000 million dollars of their products that enter the United States, we have recorded them and we can still do a lot more, but they want to reach an agreement and if we can reach a fair agreement, agreement that would be fair, we will, Otherwise, we will not do it, "he said.

On Friday, the two leaders spoke on the phone for the first time since May. Donald Trump then tweeted: "I just had a very good phone conversation with the president of China," dealing with trade and North Korea. He confirmed a meeting with the Chinese president at the end of the month apart from the G20 summit in Argentina.

VALUES TO FOLLOW

The quarterly season is still not above the Atlantic, after the disappointmentapple, something that mined a little Wall Street at the end of last week. It is still a beautiful week of results, with the expected publications of more than 70 members of the S & P 500 index.

apple It lost another 2.8% on Monday, after falling 6.6% on Friday, despite the results higher than expectations, but with forecasts considered disappointing for the end of the year sales … Monday, the Japanese newspaper Nikkei worried The markets wrote that Apple's signature would have canceled production increases in the iPhone XR, its entry level model of iPhoneX. Apple would inform the subcontractors of Foxconn and Pegatron that they should give up an increase in the amount of production lines dedicated to the iPhone XR, the cheapest of the three new models of iPhones sold.

The market capitalization of the Cupertino group dropped significantly below $ 1 billion in this time, operators sanctioning sales of iPhones and the somewhat disappointing orientation.

Amazon (-2.2%) fell after announcing the free delivery of all deliveries in the United States for the holiday season. The minimum purchase for customers who do not sign up for the Prime service is, in principle, $ 25 in the US to benefit from free admission. The promotion will remain in force until the end of Christmas deliveries, the group announced.

Berkshire Hathaway (+ 5.1%), the company Warren Buffett, greatly exceeds expectations for the quarter ended, doubling the operating profit of the third quarter, thanks to good insurance results, as well as imposition. Operating profit reached USD 6,900 million, compared to $ 3,400 million in the previous year and $ 6,100 million in consensus. In addition, the investment company revealed that it acquired almost $ 1 billion of its own shares last August.

Financial CNA (+ 8.5%) announced for its fiscal third quarter a net profit of $ 336 million and $ 1.23 for security, as well as a tight profit of $ 317 million and a set EPS of $ 1.17.

Diamond Offshore Drilling (+ 0.3%) reported a net loss of 51 million dollars or 37 cents per share during the same period, as well as a loss of 26 cents, less than expected. The group, active in the drilling of oil and gas, generated quarterly revenues of 286 million dollars.

Loews (+ 5.4%) published in the third quarter a net profit of $ 278 million, 88 cents per share, for revenues of $ 3,613 million.

Sysco (-9.5%). The US food group lost its consensus for the first fiscal quarter. Sysco recorded profits of $ 431 million, 81 cents per share, compared to 368 million dollars a year earlier. The adjusted EPS per share was 91 cents, but the consensus was 92 cents. The revenues totaled 15,200 million dollars, compared to 14,700 million dollars a year earlier and 15,400 million dollars in consensus.

SeaWorld (-4.3%) reported quarterly earnings and earnings that exceeded expectations. The net profit was $ 96 million, $ 1.11 per security, compared to $ 55 million a year earlier. The consensus was $ 1.09 bpa. Total revenues increased 10% to 483 million dollars, while the consensus was $ 475 million.

Lowe (+ 0.26%), the number two US mobile phones, will close 20 stores in the United States and 31 in Canada, as part of the latest strategic initiatives. The group estimates that the impact of "low yield" store locks in 2018 will be 28 to 34 cents per share.

Ferrari (-1.6%) decreased after quarterly results somewhat disappointing. Penalized by adverse adverse effects and a mixture of unfavorable product, the luxury car maker reached in the third quarter an adjusted EBITDA of 278 ME (+ 4.7%) for income of 838 ME, up 0.3% (+2 , 2% at constant exchange rate). The net profit amounted to E287 million, compared to the E40 million of the previous year. Ferrari, which sold 2,262 vehicles during the period (+ 10.6%), confirmed its 2018 targets, that is, revenues of more than 3,400 million euros, adjusted EBITDA of at least 1,100 million euros and the delivery of at least 9,000 cars.


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