Wall Street: Be careful

Wall Street was integrated in front of the market on Wednesday and was cautious about new intervention by Jerome Powell at the BIS Innovation Summit. At this point, the Fed’s president’s comments seem to inspire investor distrust as much as the ECB’s Christine Lagarde leader’s comments, which couldn’t always find market-sparing words. However, Powell did not provide new information on monetary policy. The Dow Jones fell 0.3% and the S & P 500 fell 0.4% before it hit the market. The Nasdaq yield is 0.7%. The barrel of WTI crude recovered 3.2% at Nymex towards $ 113. An ounce of gold will rise 0.3% to $ 1,927. The dollar index rose 0.2% against a basket of currencies. Bitcoin is moving in the $ 42,000 area.

While geopolitical uncertainties associated with the conflict between Russia and Ukraine, as well as concerns about inflation and growth, are weighing on the market, commodity prices continue to rise. Monetary policy is not very useful as the Fed has just begun a tightening cycle in the face of a surge in inflation. Please note that US President Joe Biden is scheduled for today in Brussels and will attend the NATO-G7 summit on Thursday. Western allies may also announce new sanctions against Moscow.

The headline questioned the possibility of Russia and Ukraine reaching a ceasefire agreement in the short term. Meanwhile, Cleveland Fed Loretta Mester called for a rate hike and said he wanted to raise the federal funds rate to about 2.5% by the end of the year. Inflation in the UK was surprised upwards and hit a 30-year high. After Congress approves a record budget, there is growing speculation about additional stimulus measures in Japan.

Wall Street Economic News this Wednesday will announce sales of new homes in February 2022 at 3:00 pm (consensus 810,000). A weekly report on US domestic oil inventories for the week ending March 18 will be published at 3:30 pm. The Fed’s Mary Daly will also intervene during the day, but today’s focus is on Jerome Powell, the boss of a particularly respectable institution.

Powell had already spoken on Monday and was worried about “too high” levels of inflation. It was already considerable long before the invasion of Ukraine. We then reaffirmed that the Fed will take the necessary steps to control prices. Therefore, the governor of the US central bank is advocating strong measures to reduce inflation that threatens economic recovery. If necessary, Powell does not rule out accelerating the rise in rates at the beginning of the cycle. Powell says he’s ready to raise the halving rate if the Fed concludes that such a move is needed to curb inflation.

Therefore, it will be a problem to act swiftly to bring inflation back to neutral levels. Fed helmsmen also believe that supply chain issues are underestimated and their solutions remain uncertain. Powell has determined that a soft landing in the economy will continue to be possible, but will be complicated to achieve, especially as the crisis in Russia and Ukraine exacerbates the risk of accelerated price increases.

Powell’s comments at the BIS Innovation Summit this Wednesday do not seem to provide nuances to his recent remarks. The leader of the Federal Reserve Board evokes digital innovation in the financial sector. According to him, this is “lasting to the end” and is still in its infancy. Leaders of central banks in the United States further state that existing regulatory frameworks have not been implemented with digital currencies in mind and new regulations may be needed. Powell does not go back to his recent intervention in monetary policy.

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General Mills rose ahead of Wall Street’s stock market, and the US agribusiness group raised its profit and sales forecasts throughout the year on Wednesday. This is due to rising prices and rising demand for animal food. General Mills achieved virtually stable $ 4.5 billion in revenue and an internal growth rate of 4% in the just-finished third quarter. Operating profit was down 1% to $ 815 million. Adjusted operating profit fell 6% in constant currency. Diluted EPS rose 13% to $ 1.08 and adjusted EPS rose 2% in constant currency to 84 cents.

Throughout the fiscal year, intrinsic growth is currently expected to be 5%, but adjusted operating profit in constant currency is expected to grow from -2% to stable. Finally, adjusted annual EPS is expected to be stable or up + 2%.

Adobe has fallen 2.6% in various forecasts after trading on Wall Street last night. However, in the quarter that ended in the first quarter, the California software group, known for InDesign, Photoshop, and Acrobat products, exceeded market expectations. Quarterly adjusted profit was $ 3.37, but the consensus was $ 3.34, a previous year’s level of $ 3.14. Revenue was $ 4.26 billion, slightly higher than expected from $ 3.91 billion in the previous year. However, the guidance reflects intensifying competition. Adobe expects revenue of $ 4.34 billion in the second quarter, while consensus was $ 4.4 billion. Adjusted earnings per share is expected to be $ 3.3, compared to a consensus of $ 3.35.

The company also predicted that the war in Ukraine would stop all new product sales to Russia and Belarus, reducing annual revenues by $ 75 million.

GameStop doesn’t say the last word on Wall Street. The value of the former star of WallStreetBets has once again experienced a very breathtaking stock market activity since yesterday. Last night’s share price rose 30.7% on the New York Stock Exchange to $ 123. A double-digit rise is expected before trading on Wednesday. This increase is largely due to group movements in specific forums and social networks, but from a strictly basic point of view, the last account in the US video game distribution chain was marked with a net loss of $ 147.5 million. ($ 1.94 per share). ) In the fourth quarter, due to increased operating expenses, we compared earnings of $ 80 million ($ 1.23 per share) in the year-ago quarter.

GameStop, a star “meme stock” whose price soared from $ 17 to $ 325 in early 2021, has since lost most of its profits without returning to the starting point of its extraordinary rally. .. The group maintains a certain level of enthusiasm among small US owners, stimulating the outlook for NFT-only markets. The launch of this market is expected by the end of the second fiscal year of the Classes fiscal year.

Finally, note that according to the stock market notice released yesterday, the company of Ryan Cohen of Billionaire, President of GameStop, has acquired 100,000 shares of the group. Almost 12% of the capital will be the president of the “activist” who is driving distributors towards online commerce. Cohen purchased these shares through investment firm RC Ventures at prices ranging from $ 96.8 to $ 108.8. He currently owns a total of 9,101,000 GameStop shares.

Boeing. One of the two black boxes of China Eastern Airlines 737-800, which crashed in a mountain in southern China on Monday, was discovered.

Western Digital. Kioxia Holdings, in collaboration with Western Digital, plans to build a new factory for manufacturing flash memory chips in northern Japan. Investment could exceed $ 8 billion, according to Reuters sources.

Intel and Micron continue to be scrutinized as leaders of the two groups claim to support increased support for semiconductor manufacturing in front of the US Senate Trade Commission today.