The American rating showed good resistance before the market on Monday, despite the crowd of opposing elements, from the turpid United Kingdom to those of Credit Suisse, via the disappointing deliveries of Tesla. The S&P 500 still managed to gain 0.1% in pre-session and the Dow Jones 0.3%, while the Nasdaq lost 0.3%.
The outrageously depressed market climate and the risk of a major “accident” (failure of a large bank in particular), revive the idea of the “pivot of the Fed”. Despite still very high inflation, the excessively rapid deterioration in the environment could thus temper the enthusiasm of American central bankers and force them to limit their monetary tightening, after three consecutive rate hikes of 75 basis points. According to the CME Group’s FedWatch tool, a new strong move of 75 bps is still the most likely hypothesis (at 58.7%) at the end of the next meeting in early November, which would bring the fed funds rate between 3.75 and 4%. For the next meeting, however, which takes place in mid-December, a more reasonable move of 25 or 50 bps is likely. The peak in rates could then be reached quickly, in a range of 4.25-4.5% or 4.5-4.75%.
The Credit Suisse file awakens sad memories on Wall Street, the Lehman Brothers market and Bear Stearns. The Swiss banking establishment nevertheless maintains that its capital and liquidity situation is healthy, but the markets see it differently according to the reaction of the CDS and that of the stock market… Meanwhile, the pressure is confirmed on Liz Truss in the UK, with the Prime Minister admitting mistakes and ratings agencies closely monitoring developments.
In economic news on Monday on Wall Street, the final US Markit PMI manufacturing index for September will be released at 3:45 p.m. (FactSet consensus 51.8, in line with the preliminary reading). The September manufacturing ISM will be announced at 4 p.m. (consensus 52.2). Construction spending for August will be revealed at the same time (consensus -0.3% compared to the previous month). Lastly, US domestic auto sales for the month of September will also be known today.
Elsewhere in the world this morning, the final Japanese Markit/JMMA PMI index for the month of September missed the consensus (50.8 against 51 market consensus). The final European manufacturing PMI indicators for September were depressed. The Spanish index was in the contraction zone at 49, like the Italian indicator (at 48.3), the French index (47.7) and the German indicator (47.8). The euro zone index thus came in at 48.4, against 48.5 for its preliminary reading.
There will be no significant quarterly financial publication on Monday among companies listed on Wall Street.
Tesla drops 4% before trading on Wall Street towards $253, continuing its downward trend after disappointing deliveries explained by logistical difficulties. In the third quarter, the group produced 365,923 vehicles and delivered 343,830 vehicles. “Historically, our delivery volumes have been skewed towards the end of each quarter due to the construction of regional batches of cars. As our production volumes continue to grow, it is becoming increasingly difficult to secure transportation capacity of vehicles and at a reasonable cost during these peak logistics weeks In Q3, we began the transition to a more even regional mix of building vehicles each week, which resulted in an increase in the number of cars in transit at the end of the quarter. These cars have been ordered and will be delivered to customers when they arrive at their destination,” summarized Tesla, which will release its third quarter 2022 financial results after markets close on Wednesday, October 19.
Unit deliveries of Tesla in the third quarter were expected at 358,000. The group therefore finally delivered just under 344,000, including 325,158 Model 3/Y and 18,672 Model S/X. Elon Musk’s group produced 345,988 Model 3/Y over the period and 19,935 Model S/X.
The delivery numbers came on the heels of Tesla’s AI Day event, which was held after Friday’s close. Musk showed off a prototype humanoid that walked and raised its hands for the occasion, just over a year after a human disguised as a robot danced onstage during a similar presentation about the group’s efforts. in artificial intelligence.
Stanley Black & Decker, the U.S. tooling giant, is reportedly cutting around 1,000 finance jobs as part of efforts to save up to $200 million this year, according to the Wall Street Journal. Sources also told the newspaper that the finance job cuts were part of wider layoffs within the company that would have affected thousands of workers around the world.
Walt Disney has reached an agreement with activist investor Third Point, under which the fund will benefit from a new director on the board.
Bed Bath & Beyond, the former ‘meme’ stock on Wall Street, would be worth only $2 according to Goldman Sachs’ valuation. Kate McShane, analyst of the broker, judges that the distribution group will have the greatest difficulty in recovering, as evidenced by the recent quarterly publication of the group. BB&B’s fundamental position would therefore remain precarious ahead of the crucial end-of-year holiday season. GS displays a sell board.
Myovant Sciences ignites on Wall Street today, while the pharmaceutical group has declined an acquisition offer from its main shareholder, Sumitovant Biopharma. Myovant believes that the proposal significantly undervalues the group.
Alphabet shut down its Google Translate service in mainland China, citing low usage, marking another pullback for the US tech giant in the region.