Wall Street stalled on Friday after Elon Musk warned of fairly resilient economic statistics on the economy, services and employment. The Dow Jones currently generate from 0.81% to 32,977 points and the S & P 500 loses 1.38% to 4,119 points. The Nasdaq ended up dropping 2.19% to 12,047 points. The barrel of WTI crude is $ 118.6, up 1.5% at the Nymex. One ounce of gold goes from 0.5% to $ 1,860. The dollar index rose 0.3% against a basket of currencies. Bitcoin stumbles for less than $ 30,000.
Non-farm payroll creation in the United States in May 2022 was 390,000, well above the consensus of 323,000. According to the Ministry of Labor, the unemployment rate was 3.6%, but the consensus was 3.5% and the previous month it was 3.6%. Job creation in the private sector was 333,000 and the consensus was 302,000. The average hourly wage increased by 0.3% from the previous month, compared to a consensus of 0.4%. This salary will increase by 5.2% over the year. The labor force population ratio was 62.3%.
The number of non-farm payrolls in April was also revised from the previously estimated 428,000 to 436,000.
The final US compound PMI for May 2022 was 53.6, very close to consensus expectations (53.8 according to FactSet) and a service index of 53.4 (53.5 consensus). Overall, these indicators show the continued expansion of the US economy.
The May ISMUS Service Index was 55.9, FactSet’s consensus was 55.7, and a month ago it was 57.1. This indicator shows a slight slowdown in growth, but still reflects a clear expansion.
Vice-Chairman of the Federal Reserve Board, Lael Brainard, will speak in the afternoon. Brainard said yesterday that the US central bank expects a slowdown, but it’s still too early to pinpoint the timing. She also said the Fed made inflation control a priority.
The Federal Reserve opposes the idea of a “suspension” in September, when Raphael Bostic revealed this week that his comments were not intended to indicate a “Fed put”. Did. Brainard also said yesterday that while inflation remains too high, there is no reason to consider suspending the September rate hike at this stage.
Octa, which surged 11% on Wall Street last night, is still up 12% today. American identity and access management companies have raised their forecasts as a strong bystander quarterly. First-quarter revenue increased 65% and subscription revenue increased 66%. Total revenue was $ 415 million. Adjusted operating loss was $ 41 million. Adjusted net loss was $ 43 million, 27 cents per share, compared to $ 13 million in the previous year. Free cash flow for the period was $ 11 million, up from $ 53 million in the year-ago quarter. Total revenues for the staggered 2023 fiscal year were $ 1.14 million for adjusted operating losses and $ 1.14 per title, up 40% from 39 to 1.85 billion. It is expected to go from $ 1,815 million.
Lululemon (-1%), a Canadian group listed on Wall Street that specializes in sportswear, especially in the field of yoga, announced strong quarterly results last night, surpassing the already remarkable performance of the pandemic. did. LULU also pushed that prediction. The company currently expects annual revenues of $ 7.61 billion to $ 7.71 billion, down from the previous $ 7.49 billion to $ 7.62 billion. Profit per share in 2022 is expected to be between $ 9.42 and $ 9.57, up from the previous range of $ 9.15 to $ 9.35. Adjusted earnings per share are expected to be between $ 9.35 and $ 9.5, which is higher than the consensus. Adjusted EPS for the quarter was $ 1.48, higher than expected from $ 1.16 in the previous year. Revenues reached $ 1.61 billion, up from $ 1.23 billion in the previous year to a 4% consensus.
Ophthalmologist and US medical device designer Cooper Companies (-2%) said yesterday evening that second-quarter sales were up 15% to $ 830 million, especially Cooper Surgical’s 40%. Was announced. GAAP diluted profits rose to $ 2.55 and adjusted EPS fell 4% to $ 3.24. Adjusted EPS consensus was $ 3.43 and revenue was $ 821 million. Management focuses on growing revenue and gaining market share. The 2022 guidance will be adjusted. Revenue is expected to be $ 32.8 to $ 3,312 million and internal growth is expected to be 9 to 10%. Adjusted earnings per share are expected to be between $ 13.09 and $ 13.29.
Toro (+ 2%), a major US lawn mower that is particularly active in lawn mowers, missed a sales consensus at the end of the quarter, but exceeded the profit consensus. Second-quarter net income, which ended at the end of April, was $ 131 million, or $ 1.24 per share, compared to $ 142 million in the year-ago quarter. Excluding items, the adjusted EPS was $ 1.25, while FactSet’s consensus was $ 1.24. Revenue improved 8.7% to $ 1.25 billion. Toro also allows us to revise our annual financial forecasts upwards despite supply chain challenges.
Turning Point Therapeutics jumps 116% on Wall Street! Bristol Myers Squibb will actually purchase this oncology-focused biotechnology group at the clinical stage as part of a cash transaction valuing turning points at $ 3.8 billion. The total consideration for the transaction is $ 4.1 billion. Under the terms of the agreement, TurningPoint shareholders will receive $ 76 in cash per share. This is a premium of 122.5% of the previous day’s closing price. Bristol-Myers forecasts an increasing impact of trading on adjusted earnings per share after 2025. BMS will use the available cash to complete its operations.
American Airlines (-6%) will raise its earnings forecast for the quarter in light of strong demand and rising fares. The first American Airlines expects total revenue to be 11% to 13% higher than the level in the second quarter of 2019, compared to the previously expected 6-8% increase. Its capacity is expected to correspond to 92% -93% of the levels observed during the same period in 2019, compared to the previous 92-94%. Unit revenue should increase by 20-22% compared to the previous 14-16% range, while unit costs excluding fuel are expected to increase by 10-11% (8-10%).
Coles (+ 3%) is taking hold on Wall Street, but the New York Post says the group’s sales process will be disrupted for the foreseeable future. The deadline for this week’s final offer was set, but some potential buyers would have withdrawn, according to sources. According to NYP, the process was influenced by the group’s recent warnings about sales and profits for the year, alongside its first-quarter announcement. NYP sources add that the postponement may be extended beyond the next quarter to give Cole more time to stabilize its business. The Wall Street Journal understands that Sycamore Partners offered an offer of about $ 55 per share and Franchise Group offered an offer of about $ 60 per share.
Bloomberg reports that Apple (-4%) will improve retail working conditions in its union-organizing efforts. The California-based Apple Group quoted employees who knew the plan to make changes to some store staff in the coming months to reduce working hours, some. He said that the changes would be implemented. It will take place elsewhere in the coming weeks and later this year. Changes made include a minimum of 12 hours between shifts, a minimum of 10 hours now, up to 3 days per week after 8 pm, and a maximum of 5 consecutive days from the current 6 days. One dedicated weekend holiday every 6 months for full-time employees.
Coinbase is down 10% on Wall Street today. The cryptocurrency exchange announced on its corporate blog: “For the time being, we will extend the hiring freeze for new roles and replacements and cancel the large number of accepted offers in response to current market conditions and ongoing efforts to prioritize our business.”
Tesla picks up 7%! .. Elon Musk, CEO of an electric car maker, recently revealed to employees that it is imperative to return to work directly, but this time it is “very bad feelings” for the economy. Showed that you have. At least that’s what Reuters learned by quoting an email from a millionaire to a Tesla executive. Therefore, Mask wants to reduce the group’s workforce by 10%. The email in question has the caption “Stop all adoption worldwide”. Tesla currently employs approximately 100,000 people worldwide.
Mask is not the first boss to warn about a very serious financial risk. Earlier this week, JP Morgan boss Jamie Dimon said he was afraid of a “hurricane.”
Two days after the world’s wealthiest man tells his employees to return to work or leave the company, he receives a mask message about job freezes and expected headcount reductions. On Tuesday, a businessman asked his staff to return to work or leave the company, a request already rejected in Germany, where the company has a new factory. “Everyone in Tesla needs to spend at least 40 hours a week in the office,” Musk wrote in an email. “If you don’t show up, we consider you to quit.”