US stock markets ended the penultimate session of the week on a positive note after a flurry of statistics. Home sales promises in May declined. Also, durable goods orders came out better than expected, unlike weekly jobless claims. Investors are still cautious as inflation data from across the Atlantic is expected this Friday. The Dow Jones rose 0.09% to 39,164 points while the Nasdaq gained 0.30% to 17,858 points.
Walgreens Boots Alliance (-22.16% to $12.19) posted the biggest drop in the S&P500 after reporting its third-quarter results. At this event, the American pharmacy chain lowered its earnings per share target for 2024 to a range of $2.80 to $2.95 from $3.20 to $3.35 previously, “reflecting the difficult context of the pharmaceutical sector and a worse-than-expected decline in American consumption.” The group says it is “in a recovery phase” in the face of “headwinds.”
Today’s economic figures
The United States recorded growth of 1.4% in the first quarter after 3.4% in the previous quarter. The consensus was 1.3%.
The number of unemployment claims stood at 233,000 last week in the United States against a consensus of 236,000 after 239,000 the previous week.
Home sales promises fell by 2.1% in May, while they were expected to increase by 0.6% after a decline of 7.7% the previous month.
In the United States, the trade balance deficit stood at $100.62 billion in May compared to an expected $96 billion. It was $99.41 billion in April.
Orders for durable goods increased by 0.1% in May in the United States, while they were expected to decline by 0.5%. They increased by 0.2% in April. Excluding defense and aeronautics, they fell by 0.6% after an increase of 0.3% in April.
Values to watch today
Amazon
Amazon crossed the $2 trillion market cap threshold yesterday. Microsoft, Apple, Nvidia and Alphabet, Google’s parent company, are the only other companies worth more than $2 trillion on the stock market. Microsoft, Apple and Nvidia are each worth more than $3 trillion.
Levi Strauss
Levi Strauss tumbled more than 15% in premarket trading after reporting second-quarter revenue that missed analysts’ expectations. The denim giant reported adjusted earnings per share of 16 cents, beating expectations of 11 cents, and gross margin expanded 180 basis points. Net revenue for the period of $1.44 billion, however, fell short of estimates of $1.45 billion.
Micron Technology
Micron is expected to be in the red following the presentation of disappointing revenue targets. In the third quarter, ending at the end of May, of its 2024 fiscal year, the computer memory maker generated net income of $332 million, or 30 cents per share, compared with a loss of $1.9 billion, or 1.73 dollar per share last year. Adjusted earnings per share came to 62 cents while the market expected 50 cents.
Walgreens Boots Alliance
Walgreens Boots Alliance is expected to be down 18% pre-market after reporting its third quarter results. The American pharmacy chain lowers its earnings per share target for 2024 to a range of $2.80 to $2.95 from $3.20 to $3.35 previously, “reflecting the difficult context in the pharmaceutical sector and a decline in US consumption worse than expected. Earnings per share for the third quarter came to $0.63, down 36% year-on-year against a consensus of $0.71, despite turnover up 2.6%.
source : AOF
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