Wall Street relativizes geopolitical risk. Dow Jones and Nasdaq resist

(Boursier.com) — Wall Street, closed yesterday for Presidents’ Day, also known as ‘Washington’s Birthday’, held up well at the start of trading on Tuesday, despite particularly tense geopolitical news. The DJIA lost 0.64% to 33,862 pts, while the S&P 500 was down 0.27% to 4,337 pts. The Nasdaq returns 0.2% to 13,522 pts. The United States and its allies are expected to announce additional sanctions against Russia, as Vladimir Putin yesterday recognized the independence of two breakaway regions in eastern Ukraine and mentioned the dispatch of peacekeepers there. the peace.

According to the Ukrainian army, two soldiers have been killed and 12 injured in shelling by pro-Russian separatists in the east of the country in the past 24 hours. Putin’s decision yesterday was condemned internationally. Joe Biden has signed an executive order banning American nationals from all economic activities in the two separatist regions of eastern Ukraine. In addition, the United States will impose sanctions against Russia because of this violation of international law and Ukraine’s sovereignty.

The spokeswoman for the Russian Foreign Ministry, Maria Zakharova, indicated that the recognition of the two regions of Donbass did not affect the will of the Kremlin to discuss with the United States (!).

An initial set of European sanctions against Russia will be presented this afternoon after an extraordinary meeting of European Union foreign ministers, confirmed Commission President Ursula von der Leyen and European Council President Charles Michel. The measures aim in particular to cut off funding for Russian military operations in eastern Ukraine and limit escalation in this area, as well as to prevent Russian authorities from accessing European financial markets. The EU is considering additional further measures depending on new developments.

British Prime Minister Boris Johnson announced sanctions against five Russian banks and three businessmen. The five banks are Rossiya, IS Bank, General Bank, Promsviazbank and Black Sea Bank. “This is the first installment, the first barrage of what we’re ready to do,” Johnson said. Among the three people mentioned is the businessman Gennady Timchenko, close to Putin. Assets held in the UK will be frozen and affected individuals will be banned from travel.

A barrel of WTI crude is currently gaining 1.4% on the Nymex at $91.5. The ounce of gold stabilizes at $1,900.

The American rating seems to resist this geopolitical uncertainty. The Russian-Ukrainian crisis could indeed force a reassessment of the Fed’s tightening path, prompting central banks to become less aggressive, while policymakers could consider additional fiscal stimulus, JP says today. Morgan Chase.

The S&P Case-Shiller index of US house prices for the month of December 2021 came out on the rise. The ’20-City’ indicator of the 20 main areas, unadjusted, rose 1.1% compared to the previous month, against 0.8% market consensus. The index climbed 18.6% year-on-year.

The Federal Housing Finance Agency’s (FHFA) home price index for December 2021 was up 1.2% from the previous month (1% consensus) and 17.6% year-on-year. .

The preliminary American composite Markit PMI index for the month of February 2022 came out at 56, against 51.9 market consensus and 51.1 a month earlier. The manufacturing indicator was 57.5, against 56 consensus. The services index stood at 56.7 against 52.1 for the median of economists.

The US consumer confidence index for February 2022, measured by the Conference Board, came out at 110.5 against 110 market consensus and 113.8 a month earlier.

The Richmond Fed’s manufacturing index for the month of February 2022, which has also just been published, came out at 1 to 10 consensus. He was 8 in January.

On Thursday, operators will notably follow the preliminary figures for the American GDP for the fourth quarter, the jobless claims, the national activity index of the Chicago Fed or the sales of new homes, as well as the weekly report on American oil inventories. and the Kansas City Fed Manufacturing Index. On Friday, durable goods orders, household income and spending, the University of Michigan consumer sentiment index and promises of home sales are on the agenda.

Fed officials are intervening throughout the week as traders fear accelerated monetary tightening by the US central bank to deal with inflation. Raphael Bostic intervenes this Tuesday and Thursday. Loretta Mester speaks for her part on Thursday.

Quarterly financial publications are coming to an end, with Home Depot, Medtronic, Agilent or Palo Alto Networks this Tuesday, then Lowe’s, Booking Holdings, Molson Coors, TJX, eBay, NetApp, Ingersoll Rand and Exelon tomorrow Wednesday. . Intuit, Dell Technologies, Block, Moderna, Newmont Mining, Autodesk, Alibaba, VMware, Monster Beverage, Occidental Petroleum, Edison, Etsy, Discovery Inc and Plug Power, announce Thursday.

Values

Home Depot (-6%) announced for its fourth fiscal quarter results that exceeded market expectations and increased its dividend by 15%, but the stock gave in to profit taking. Net income for this fourth quarter of the shifted fiscal year 2022, ending at the end of January, was $3.35 billion and $3.21 per share, against $2.86 billion a year earlier. The FactSet consensus was at $3.18. Revenue improved 10.7% to 35.72 billion, while the FactSet consensus was 34.9 billion. Like-for-like US domestic growth was 7.6%. For the 2022 financial year just ended, the group exceeds 150 billion in turnover for the first time.

Home Depot’s full-year outlook was less detailed than its pre-pandemic forecast. The company expected sales growth to be “mildly positive” and earnings per share growth to be in the low single digits.

Medtronic (+4%) published on Tuesday results for the third fiscal quarter below market expectations, but its forecasts remain in line with the consensus. The group said on Tuesday it expects case volumes in most of its markets to return to pre-pandemic levels by the end of the fourth quarter. The medical device maker said its third-quarter net profit rose 17% to $1.48 billion, or $1.10 per share, from $1.27 billion, or 94 cents per share, over the corresponding quarter of the previous year. Adjusted earnings for the quarter were $1.37 per share, up 6%. Third-quarter revenue corrected 0.2% to $7.76 billion.

Medtronic missed Wall Street’s consensus estimate of $1.38 per share by one cent and also missed the revenue target, which was $7.95 billion according to FactSet. The group expects adjusted earnings for the fourth quarter to range from $1.56 to $1.58 per share, which includes a neutral to slightly positive foreign currency impact, versus a Wall Street estimate of $1.57 per share. action. CEO Geoffrey Martha said Medtronic expects healthcare procedures to reaccelerate after Omicron.

Digital World Acquisition climbed 6% on Wall Street. Donald Trump’s new social media platform is now available on the App StoreApple, which creates a certain effervescence in the stock market on the associated SPAC file. The Truth Social service is like an alternative to Twitter. It is owned by the Trump Media and Technology Group, a media group launched by Donald Trump after leaving the White House. The former American president had, it should be remembered, been excluded from several social networks, including Facebook, Twitter and YouTube, following the riots on January 6 at the Capitol.

Devin Nunes, a former congressman who resigned to take over Trump’s media company as CEO, said last week that Truth Social expects to be “fully operational” by the end of March, when “anyone will be able to access the platform in the United States at any time”. Trump’s app joins a growing ecosystem of digital platforms aimed at or popular with conservatives. Rumble, Parler, Gettr and other services have emerged as alternatives to traditional social networks. The launch of Truth Social was marked by great success but also by some technical issues. A waiting list was thus formed in the face of strong enthusiasm, while the application was at the top of the free downloads on the American App Store.

Macy’s (+5%), the American chain of department stores, announced sales for the holiday season that exceeded expectations. The group decided not to listen to an activist, Jana Partners, recommending that it split its online business. For the fourth fiscal quarter ended at the end of January, Macy’s posted like-for-like sales up 28.3%. Adjusted earnings per share were $2.45, versus $2.02 consensus. For the year started, the group expects sales ranging from 24.46 billion to 24.7 billion dollars, which also exceeds expectations.

Krispy Kreme (+10%), the king of the donut, is gaining ground on Wall Street against a backdrop of rising prices and an increase in the number of points of sale. For the quarter ended, net profit was $4.3 million and 1 cent per share, compared to a loss of $25 million a year earlier. Adjusted earnings per share were 8 cents, versus 9 cents consensus. Revenue rose 14% to $371 million, versus a FactSet consensus of $363 million.

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Wall Street relativizes geopolitical risk. Dow Jones and Nasdaq resist