(AOF) – American markets ended the week on a positive note. On the statistics front, job creations came out well below expectations, the unemployment rate and wage growth stabilized, in line with expectations. These data point to a continuation of the Fed’s rate cut. Long-term rates have however increased. On the value side, Amazon finished among the biggest risers in the S&P 500 thanks to a solid quarterly publication. The Dow Jones rose 0.69% to 42,052 pts while the Nasdaq gained 0.80% to 18,239 pts.
Amazon
(+6.19% to $197.93) was among the main gains in the S&P 500 index thanks to a high-quality quarterly publication. Not only did its results, particularly those of its cloud subsidiary, AWS, exceed expectations, but the outlook for Jeff Bezos’ firm is also favorable. “Amazon’s overall operating margin of 11% is the company’s highest ever,” JPMorgan points out. The latter explains the company’s good results by its international performance and that of AWS.
Today’s economic figures
Construction spending in September increased by 0.1% in September. They were expected to be stable after an increase of 0.1% in August.
The Purchasing Managers’ Index (ISM) for the manufacturing sector stood at 46.5 in October in the United States, compared to a consensus of 47.6 and 47.2 in September.
The Purchasing Managers’ Index (S&P) for the manufacturing sector in October came in at 48.5 versus a consensus and first estimate of 47.8. It stood at 47.3 in September. It remains below the threshold of 50, which indicates a contraction in activity, for the fourth consecutive month.
The United States created 12,000 jobs in October while 106,000 job creations were expected after 223,000 in September, a revised figure of 254,000. The August figure was reduced from 159,000 to 78,000. The unemployment rate remained stable at 4 .1%, as expected. Salaries increased 4% annually, in line with consensus.
Values to follow today
Amazon
Amazon is expected to be in the green on Wall Street thanks to solid results. In the third quarter, the e-tailer and cloud specialist revealed net income up to $15.3 billion, or $1.43 per share, compared to a profit of $9.9 billion, or 94 cents per share, a year earlier. The consensus was just $1.14. Operating income rose from $11.2 billion to $17.4 billion in one year and far exceeded the consensus of $14.7 billion.
Apple
Apple revealed better than expected results, but its performance in China and in services disappointed. The Apple firm generated a net profit of $14.74 billion, or 97 cents per share, in the fourth quarter, ended at the end of September, compared to $22.96 billion and $1.46 per share, respectively, a year earlier. . Adjusted earnings per share came to $1.64 versus a consensus of $1.60. The group recorded a significant provision following the confirmation by the European Court of Justice of Ireland’s allocation of illegal tax aid.
Boeing
Boeing shares are expected to rise after reaching an agreement in principle with the machinists’ union on a new contract, which could end a seven-week strike, according to the American press. The International Association of Machinists is asking its members to approve the aircraft manufacturer’s improved offer in a vote on Monday. The new proposal includes a general wage increase of 38% over four years, higher than the previous offer of a 35% increase.
Chevron
The American oil group Chevron revealed less degraded results than expected. In the third quarter, Chevron generated net income of $4.5 billion, or $2.38 compared to $6.5 billion and $3.48, respectively, a year earlier. Its profits in upstream and downstream fell over a year. Adjusted earnings per share came to $2.51 per share, beating the Zacks consensus by 4 cents.
ExxonMobil
The oil group ExxonMobil revealed a smaller drop in profits than expected in a context of falling refining margins. It generated third-quarter net income of $8.6 billion, or $1.92 per share, compared to a profit of $9.07 billion, or $2.25 per share a year earlier. The Bloomberg consensus stood at $1.87. The American firm recorded the highest production of “liquids” in more than 40 years: 3.2 million barrels per day
Intel
Intel is expected to rise on Wall Street thanks to a less bad outlook than expected. In the third quarter, Intel suffered a net loss of 16.64 billion dollars compared to a profit of 297 million euros a year earlier. Excluding exceptional items, the loss per share came to 46 cents, compared to the consensus of a loss of 3 cents. The group recorded restructuring charges of $5.6 billion this quarter.
