Wall Street is moving forward, ahead of Microsoft, Alphabet, Apple and Amazon

The trend is still slightly positive before trading on Wall Street on Monday, after a fairly impressive Friday session, marked by a 2.5% jump in the Dow Jones and a 2.3% increase in the Nasdaq. The S&P 500 is expected to rise 0.4% today. The DJIA shows a comparable increase, while the Nasdaq gains 0.1%. The week will be marked across the Atlantic by the results of the biggest technological names on the stock market. Operators seem to appreciate this prospect, but are also somewhat worried about Xi Jinping’s stronger hold in China, which should weigh on the main Chinese stocks listed on Wall Street today. Political and fiscal uncertainty in the UK is another factor likely to affect markets as former Prime Minister Boris Johnson eventually stepped down and Rishi Sunak (former Chancellor of the Exchequer under Johnson) is favorite for the post of Prime Minister to replace Liz Truss.

On the Nymex, a barrel of WTI crude lost 2.1% to $83.2. An ounce of gold fell 0.2% to $1,653. The dollar index rose 0.1% against a basket of benchmark currencies.

The Chicago Fed’s US national activity index for September came in at 0.10 after a similarly revised reading for August. Remember that a positive reading of this indicator signals…an extension above the trend.

Markit US preliminary composite PMI for October will be released at 15:45 (FactSet consensus 49.3, with a manufacturing index at 51.3 and a services indicator expected at 49.5).

Quarterly financial publication season continues on Wall Street. Cadence Design Systems, Discover Financial Services, Brown & Brown and WR Berkley announce aftermarket.

Releases will then accelerate, with most notably the announcement of MAMAA! But what is it? Quite simply from the new acronym of the former GAFA, GAFAM and FAANG. This unlikely name was coined last year by CNBC host Jim Cramer, known for his show Mad Money. The presenter’s stock market picks are often criticized, to the point that some have fun… doing the opposite of his advice. Nevertheless, one cannot deny his influence in the financial community. Cramer coined the acronym FANG (Facebook, Amazon, Netflix, Google), which later became FAANG with the inclusion of Apple.

Now that Facebook had become Meta and Google had taken the name Alphabet, a new acronym was needed. The MAMAAs (Microsoft, Amazon, Meta, Apple and Alphabet) are therefore in play this week and operators will be watching their announcements very closely after the Nasdaq has fallen by more than 31% this year.

Starting tomorrow Tuesday, aftermarket, Microsoft and Alphabet will reveal their latest financial results. Microsoft has lost nearly 28% this year and Google’s parent company more than 30%… Visa, Coca-Cola, Texas Instruments, UPS, Raytheon, Chubb, General Electric, 3M, Illinois Tool Works, Sherwin-Williams , Archer-Daniels , Valero, General Motors, Moody’s, Twitter, Centene, Biogen, Halliburton, Kimberly-Clark, Corning or Juniper, also announced on Tuesday.

Wednesday releases Meta Platform’s aftermarket. The stock of Facebook’s parent company is down more than 61% this year… Thermo Fisher Scientific, Bristol-Myers Squibb, ADP, Boeing, Waste Management, General Dynamics, CME Group, Canadian Pacific Railway, ServiceNow, Boston Scientific, Norfolk Southern, Ford Motor, Hess, Kla Corporation, Krakt Heinz, Hilton Worldwide, Otis Worldwide or Garmin, will also be released on Wednesday.

On Thursday, Apple and Amazon will publish their latest numbers after Wall Street closes. The title of the colossus of Cupertino gave up 19% in 2022, while the group of Jeff Bezos gave up 30%. Mastercard, Merck & Co, McDonald’s, T-Mobile US, Comcast, Honeywell, Intel, Starbucks, S&P Global, Caterpillar, Anheuser-Busch, Gilead Sciences, Northrop Grumman, Altria, Shopify, Pinterest or Capital One also announce on Thursday.

Values

Tesla falls nearly 3% premarket on Wall Street. The American electric vehicle maker has cut prices by up to 9% on the Model 3 and Y in China amid slowing local demand. The Tesla Model 3’s starting price was lowered to 265,900 yuan from 279,900 yuan, while the price of the Model Y was reduced to 288,900 yuan from 316,900 yuan. Elon Musk’s group is lowering the prices of these two models for the first time this year. The billionaire says he expects his business to be “recession-proof” in China and Europe. Tesla management had indicated in its latest quarterly publication that it was experiencing strong demand. The price cuts in China therefore revive doubts, in light of increased competition from Chinese manufacturers.

However, Nio Inc, the ‘Tesla of China’ listed on Wall Street, is expected to fall even more sharply by 9% in pre-trade on the US side, with all the major Chinese stocks listed in the US. Alibaba fell 11% and Baidu 12% in the preparation session, with the reappointment of President Xi as head of the Chinese Communist Party for a third term.

Twitter. Elon Musk intends to lay off nearly 75% of the social media network’s workforce, according to the Washington Post, confirming recent rumors. Citing interviews and documents, The Washington Post reports that Musk has told potential investors likely to participate in his $44 billion takeover deal that he plans to cut the company’s “bloated” workforce to 2,000 people, down from 7,500 currently. It would be a first step in his efforts to turn around the California social media company. Citing company documents and interviews, The Washington Post reports that while Musk will not buy Twitter, although “cost-cutting talks” are now on hold, current management intended to lay off nearly 25% of employees by the end of 2023 and also make major cuts in infrastructure.

Meta, formerly Facebook, has threatened to block news-related content in Canada over a text that would require digital platforms to pay the press, Reuters says.

Mullen Automotive surged more than 20% pre-market on Wall Street, the electric car designer before announcing the availability for sale of its I-GO van in certain European markets.

Goldman Sachs, the New York investment banking giant, has announced a joint venture in China with local logistics firm Sunjade to boost investment in local real estate and infrastructure assets.

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