After cleaning up the past few weeks, Wall Street finally seems to be showing better dispositions ahead of the market this Friday. The S&P 500 is expected to rise 1.5%and the Dow Jones to rise 1.1%, while the Nasdaq is up 2%. A barrel of WTI crude rose another 2.3% to about $ 108.6. An ounce of gold lost 0.7% to $ 1,811. The dollar index lost 0.1% against a basket of benchmark currencies. Bitcoin jumped to $ 30,000, gaining 8% in 24 hours but dropped another 15% in a week.
Operators, bravely, can now engage in a ‘bargain hunt’, favoring the Nasdaq’s most massacred value. However, the narrative did not really evolve. The Fed needs to tighten its monetary policy aggressively to effectively combat inflation which is still very high, at the risk of further exacerbating a tangible economic slowdown.
In the field of economics across the Atlantic on Friday 13th, the US import price index for April 2022 was stable compared to the previous month, against the +0.5% FactSet consensus. The export price index rose 0.6% compared to March, coming close to consensus expectations. Over a year, import prices rose 12% and export prices rose 18%.
The preliminary index of U.S. consumer sentiment for the month of May 2022, measured by the University of Michigan, will be displayed at 4 pm (consensus 64). Neel Kashkari and Loretta Mester of The Fed will speak during the day.
Markets are seeing some similarities of encouragement from Fed Chairman Jerome Powell, who reiterated his support for a rate increase of 50 basis points – still better than 75. Powell acknowledged that the achievement a landing in softness depends on factors beyond the Fed’s control and returning inflation to the 2% target will cause little pain. However, he stressed that controlling inflation is the priority.
The comments were made by other Fed officials on Thursday. San Francisco Fed boss Mary Daly (not voting on the FOMC) supported a 50 basis point rate hike and said financial conditions needed to tighten further to rebalance supply and demand. James Bullard (voting) of St. Louis Fed told Yahoo Finance that 50 basis point rate hikes in at least two upcoming meetings are a good benchmark. He said he was sensitive to financial market disruptions, but also minimized the risk of a recession due to the strength of the labor market. He estimated that inflation was “more persistent” than expected.
Concerns persist about the economic slowdown, the prolonged period of rising inflation and the impact of tighter financial conditions remaining. The ongoing conflict in Ukraine and Covid’s lockouts in China also reinforce the feeling that supply chain disruptions will take time to weaken.
Recent reports on the Ukrainian conflict show Russia’s limited development in the east of the country. Moscow has stated its intention to strengthen Finnish border defenses if it continues with its plan to join NATO. Some EU countries are pushing to postpone Russia’s oil ban so they can instead push for other sanctions. Operators also fear retaliation from Russia. Meanwhile, attention has also jumped on daily covid infections in Shanghai, questioning the timing of the reduction of restrictions. The PBoC will meet on Monday, but opinions are divided on whether China’s central bank will ease policy.
Twitter fell 12% to $ 39.4 before trading on Wall Street, while the richest man on the planet, Elon Musk, who promised to take over the social media network for $ 54.2 per title, 44 billion dollars in total, just suspended offer it! “The Twitter agreement has temporarily suspended pending details supporting the calculation that spam / fake accounts actually represent less than 5% of users”, tweeted just the businessman, Tesla boss and SpaceX, with a link to a Reuters article related to these “false” estimates, article dated May 2. This article from the news agency refers to Twitter’s estimate that fake accounts and spam was worth less than 5% of the total daily active user revenue in the first quarter. Over time, the social network had 229 million users where ads were offered.
Musk, which proposed in April acquiring the platform for 44 billion dollars, also estimated that one of the priorities was to remove ‘spam bots’ from the network. Musk announced on April 4 that he had acquired more than 9% of the shares on Twitter, a week later than regulations allowed and using a filing typically reserved for passive investors. He then corrected his statement, and has since begun a more concrete purchase offer.
By the end of April, the billionaire said he had secured the financing of his possible takeover bid on Twitter. Since then, Musk has still talked to potential investors. Oracle founder Larry Ellison should also take part in the deal, as should cryptocurrency company Binance. Saudi Arabia must keep a stake. Musk also sold several billion dollars worth of Tesla securities to secure his share in financing.
Remember that Elon Musk will have to pay 1 billion dollars to Twitter if he finally does not follow the agreement that was previously sealed between the two parties. However, note that in another tweet today, Musk added that he is “still committed to getting”. The market didn’t believe it for a while, as the share price was almost 30% lower than its offer price, according to the pre-session trend.
Motorola Solutions, an American firm born from a split from Motorola ten years ago, and active in video and telecom equipment, as well as software, systems and services, published last night for the first fiscal quarter adjusted its earnings per share of $ 1.70, compared to a consensus of $ 1.58 and a level of $ 1.87 a year earlier. Group revenues were $ 1.89 billion in the quarter ended March, compared to $ 1.77 billion last year. The group therefore exceeded the consensus revenue of 3% during the closed period.
Robinhood. Online brokerage applications climbed 20% before the Wall Street market. The surge was attributed to Sam Bankman-Fried, managing director of crypto-asset trading platform FTX, who announced after markets closed yesterday that he had acquired a 7.6% stake in Robinhood’s capital. According to a document filed with the SEC, the American Stock Exchange police, the Emergent Fidelity Technologies company, of which Sam Bankman-Fried is the boss and the major shareholder, acquired a 7.6% stake in it worth $ 648 million. . Founded in May 2019, and based in Nassau, Bahamas, FTX currently has no commercial presence in the United States, but it is one of the largest cryptocurrency trading platforms in the world, competing with Coinbase and Binance.
Its boss and co-founder Sam Bankman-Fried will benefit from the collapse of the Robinhood title, which has been evolving in recent days to its historic lows. In the stock market document, Emergent Fidelity Technologies indicated that it acquired these securities in the belief that they “represent an attractive investment” and specified that it intended to manage this participation as a financial investment. , and “had no intent at this stage to act to change or influence control” of Robinhood. The acquirer, however, reserves the right to “interact with management discussions from time to time” and added that he may purchase in the future other securities, as well as study “options to increase value for shareholders, through, among other things., alternative strategies or operations or management initiatives “of the online broker.
Among other rating giants on Wall Street, Apple rose 2% in the pre-session, after being ousted by Saudi Aramco yesterday in the ranking of first world market capitalization. Tesla recovered 7%, seeing Musk’s little interest in Twitter. Amazon gained 2%, as did Microsoft. The alphabet posted a comparable advantage.