(AOF) – The American stock markets are expected on a positive note as the Fed delivers its verdict early this evening. The markets are anticipating a rate cut, the first since March 2020, of around 50 basis points, although a drop of a share of a point remains possible. In terms of statistics, building permits and housing starts came in higher than expected. In terms of values, General Mills exceeded expectations. A few minutes before the first transactions, futures on the S&P 500 and the Nasdaq Composite rose by 0.19% and 0.26% respectively.
Yesterday on Wall Street
US markets ended in mixed order on the eve of the Fed. The most important economic data of the day exceeded expectations: industrial production and retail sales. The probability of a 50 basis point rate cut has now fallen to 59% from 41% for 25 basis points, according to the CME FedWatch Tool. On the stock market, Intel ended in the green thanks to a contract with Amazon. The S&P500 posted a new high of 5,670.81 points. The Dow Jones fell by 0.04% to 41,606 points while the Nasdaq rose by 0.20% to 17,628 points.
Macroeconomic figures
In August, 1.475 million building permits were registered at an annual rate in the United States. The consensus was for 1.410 million, after 1.406 million in July. In addition, 1.356 million housing starts were registered last month at an annual rate. The consensus was for 1.310 million, after 1.237 million in July.
The weekly evolution of oil stocks will be communicated at 4:30 p.m. and the Fed’s monetary policy decision at 8:00 p.m.
Values to follow
Alphabet
The Court of Justice of the European Union has annulled a fine of almost €1.5 billion imposed by the European Commission on Google, which was suspected of obstructing competition in online advertising (Google AdSense). It justified its decision by the fact that Brussels “failed to take into account all the relevant circumstances in its assessment of the duration of the contractual clauses that it had described as unfair”.
Arko
Retail operator Arko is considering selling its convenience store business in a deal that could be valued at about $2 billion, according to Reuters. The group is looking to abandon its expansion strategy amid slowing sales in the convenience store sector. Arko is working with investment bankers at Citigroup to sell all of the roughly 1,500 stores it currently operates, according to sources reported by Reuters.
General Mills
General Mills, owner of Häagen-Dazs and Old El Paso, reported adjusted quarterly profit of $1.07 compared to the consensus of $1.06. The American giant reported a 1% decline in quarterly sales to $4.85 billion, compared to forecasts of a 2.11% decline to $4.80 billion. In terms of outlook, for fiscal 2025, sales are still expected to be flat or up 1% organically, while adjusted diluted earnings per share are expected to be between -1% and +1% at constant currencies, compared to $4.52 in 2024.
General Motors
General Motors will provide customers with access to more than 17,800 new Tesla Superchargers using a specific adapter approved by its services. The automaker estimates that with the addition of these new Superchargers, GM customers will have access to more than 231,800 public fast chargers in North America, with that number expected to grow as the company continues to partner with other companies. The GM-approved NACS DC adapters will be available to customers in the United States first, and will be available to Canadian customers by the end of this year.
Qualcomm
The Court of Justice of the European Union has slightly reduced the amount of a fine imposed by Brussels on Qualcomm for abuse of a dominant position. It falls to approximately €238.7 million from €242 million previously. The Court considers that, in the decision challenged by the smartphone chip specialist, Brussels departed, without justification, from the method prescribed by its 2006 guidelines.
Southwest Airlines
Elliott Investment Management has told the Aircraft Mechanics Fraternal Association that it still wants to replace Southwest Airlines CEO Robert Jordan even after the U.S. airline committed to overhauling its board, according to a union memo seen by Reuters after the investor met with the organization, one of the airline’s main unions, on September 12. The Aircraft Mechanics Fraternal Association represents about 3,000 mechanics at the airline.
