Dow Jones and Nasduck Down

The major US index before Wednesday’s session fell by about 0.5%. Therefore, the S & P 500, Dow Jones, and Nasdaq show a comparable decline after recovering to timidity last night despite the target’s warning. At Nymex, the barrel of WTI crude rose 1.2% to $ 120.9. An ounce of gold grabs 0.1%. The dollar index rose 0.2% against a basket of currencies. Bitcoin was confirmed at $ 30,000.

US economic news is limited to Wednesday, waiting for weekly employment tomorrow Thursday and May for the Consumer Price Index and the University of Michigan Consumer Emotion Index on Friday. Temporary wholesale inventory for April will be announced today at 4 pm (Bloomberg consensus + 2.1%). The weekly domestic oil inventory report for the week ending June 3 will be published at 4:30 pm.

No major progress has been made today on the major market-driving themes. The Fed’s tightening of global monetary policy continues to dominate the debate and increase the risk of a recession. The US consumer price index on Friday will be closely monitored, as some believe that inflation has peaked. China’s resumption after Covid’s shutdown has eased supply chain bottlenecks and remains positive for the market. Nonetheless, some strategists have pointed out concerns about negative earnings corrections (yesterday’s target and JM Smucker) amid cost pressures and slowing demand.

Attention is also beginning to be paid to the ECB’s policy decisions expected tomorrow Thursday. The consensus is related to the announcement of the end of quantitative easing in early July, followed by a rate hike. The European Central Bank is expected to start the cycle with a more modest 25 basis point move, but the risk of raising 50 basis points is increasing.

The RBA (Reserve Bank of Australia) announced yesterday Tuesday a 50 basis point hike, which is more important than expected. The central bank said inflation has risen sharply and is expected to rise further. The ECB needs to confirm that its QE will end in the coming weeks and signal an interest rate “takeoff” in July. Reuters said the money markets are currently priced at a rate hike of 130 basis points from the ECB by the end of the year, suggesting a move to tighten at least 50 basis points. Bank of America recently said it expects a total of 150bp rate hikes from the ECB in 2022, including two 50bp tightening moves in July and September.

US Treasury Secretary Janet Yellen said in a Senate hearing on Tuesday that the United States is facing “unacceptable levels of inflation” and that it has adequate finances to help ease inflationary pressures without harming the economy. I asked for a stance. She warned that inflation should remain “high” without a deadline. She upheld Joe Biden’s planned investment in the 2023 budget, specifically to develop renewable energy and reduce the cost of prescription drugs. “Parliament has many ways to reduce the cost burden on households,” the minister also pleaded in front of the Senate Finance Committee. Yellen will also hear from the House of Representatives this Wednesday.

Yellen, who recently admitted that he was misunderstood to call inflation “temporary,” said last Tuesday that “scenarios facing multiple variants of Covid have disrupted our economy and our global supply chain. I didn’t expect it to be confusing. ” Or “Impact of Russia’s invasion of Ukraine on food and energy prices”. While she respects the independence of the Federal Reserve, she said the agency’s main mission is to curb inflation. “To ease inflationary pressures without compromising the power of the labor market, we need an appropriate fiscal stance to complement monetary policy measures,” the Federal Reserve added.

On March 28, Joe Biden presented a budget proposal of approximately $ 5.8 trillion for 2023 (fiscal year from October 1, 2022 to September 30, 2023). The project prioritizes taxation, crime management and defense of the wealthiest Americans with the aim of assisting Ukraine in the face of Russia’s aggression. It also provides for reforms in prescription drug prices and tax credits in the field of so-called clean energy technology.

On the Fed’s side this time, regular players are in a “quiet period” before the June 14th and 15th Financial Conference (FOMC). This is inflation. Faced with this enthusiasm for the US central bank to strengthen its tone and this intense inflation, concerns are still focused on possible scenarios of painful economic landings.

Therefore, on Friday, we will publish the US Consumer Price Index for May (unadjusted CPI consensus + 8.2%, year-on-year). In the United States, the market expects to raise rates by 0.5 points this month and July, and close to 200 basis points by the end of the year.

For China, which continues to be “unrestricted,” U.S. Secretary of Commerce Gina Raimondo estimated at CNN that tariff increases on certain imported Chinese products would make sense to combat inflation. please give me. It has been ruled that certain tariffs related to national security (eg steel and aluminum) need to be maintained, but other tariffs can be reduced for consumer products and bicycles.

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Campbell Soup, an American food group specializing in soups, sauces and biscuits, is pioneering the Wall Street stock market. The group has certainly released better-than-expected quarterly results, and in the process is raising estimates of annual sales. This group benefits from rising prices and sustained demand. For Fiscal Year 2022, we now expect organic growth in the range of 1-2%, compared to the previous guidance in the range of -1% to + 1%. Revenue for the third quarter, which ended in early May 2022, reached $ 2.13 billion. In comparison, the year-ago quarter was $ 1.98 billion and the consensus was $ 2.05 billion. Net income attributable to the Group for the quarter was $ 188 million (62 cents per share), compared with $ 160 million in the year-ago quarter.

Brown-Forman, an American actor in alcoholic beverages, announced a revenue year of $ 3.93 billion, up 14%, with a 17% organic expansion. Operating profit increased 3% to $ 1.2 billion. Diluted earnings per share fell 7% to $ 1.74 due to the tax increase. The company expects continued growth in 2023, despite global macroeconomic and geopolitical uncertainties. With a strong portfolio of brands and strong consumer demand, Brown-Forman expects net organic sales growth in the mid-single digits. Given the net effects of inflation and the elimination of EU and UK tariffs on US whiskey, the group expects a slight increase in gross profit. Based on these forecasts, operating profit is expected to grow by a single digit of nearly 5%. The effective tax rate for fiscal year 2023 is expected to be 22-23%.

Moderna today released new clinical data on mRNA-1273.214, a divalent Covid booster candidate targeting Omicron. This includes vaccine candidates targeting mRNA-1273 (Spikevax) and the Omicron variant. An additional immune dose of 50 micrograms of mRNA-1273.214 achieved all preliminary specifications, including excellent antibody response (8-fold increase). Booster doses are generally well tolerated and, according to the laboratory, had side effects comparable to mRNA-1273 at the same dose. Moderna CEO Stéphane Bancel is pleased with these preliminary data. He expects longer protection against mutations in concerns about this booster, which is the main candidate for the fall booster dose. Data and analysis will be submitted to regulatory agencies in light of the expected availability this summer.

Novavax, which surged 6.2% on Monday and remained suspended on the U.S. stock exchange on Tuesday, is expected to increase by more than 9% before trading this Wednesday while waiting for the FDA panel’s recommendations on the Covid-19 vaccine. Will be done. Skeptics are offered a new alternative when the United States finally tries to convince Covid to hesitate to get vaccinated. Therefore, the FDA Advisory Board recommended the Novavax vaccine for use in adults. Therefore, Americans who were not confident in the vaccines available from Pfizer / BioNTech, Moderna, or Johnson & Johnson may probably find a more attractive fourth possibility.

Western Digital is ahead of the Wall Street stock market as the group announced last month that it is considering a variety of strategic options, including the possibility of a spin-off of the flash memory and hard drive business sought by Elliott Management activists. Is steadily progressing. Fund. David Geckerer, Managing Director of the Group, specifically mentioned opening up capital for “flash” activities, as suggested by Elliott, “we are proactive in a wide range of strategic and financial alternatives. We are working on it. ” Elliott Management owns 6% of Western Digital’s capital. Activists believe that Western Digital’s unit dedicated to flash memory is worth $ 17 to $ 20 billion. The Group’s management will continue this “constructive dialogue” with its imminent shareholders.

Twitter rose 1.4% at $ 40 on the still-active market Wall Street last night, but Elon Musk is still cloudy after bidding $ 44 billion to buy a social media network. Suspended the suggestion because Twitter didn’t provide clear information about “bots” and fake account ratings. Uncertainty surrounding the acquisition has suspended funding for the acquisition, according to Reuters. Meanwhile, Twitter reported that it has achieved the highest growth ever, with an ambitious goal of reaching a record high of 13 million new users in the second quarter …

You are here The Chinese group BYD is preparing to supply Texas automakers “immediately” with batteries, an executive at a company said in an interview with China’s national television.

Wall Street-listed Chinese tech stocks are finally being boosted by expectations of China’s deregulation.