AOF Analysis Closes Wall Street – Black Thursday

(AOF) – U.S. stock markets fell Thursday. After the euphoria comes the migraine. Investors question the Fed’s ability to contain inflation without triggering a recession in the US economy. In this context, private employment figures in April and the next inflation statistics will be closely monitored. Meanwhile, and a sign of the environmental stress, the yield market was running at full throttle, with the yield on the 10-year US bond soaring above 3%. The Dow Jones lost 3.12% to 32,997.97 points and the Nasdaq 4.99% to 12,317.69 points.

eBay fell 11.72% to $48.04, sanctioned for issuing a 2022 profit warning. A global online auction saw no major impact, after which key performance indicators weakened in March and weakened in April. The American company has therefore drawn the consequences. Neutral in value, JPMorgan lowered its price target from $60 to $54.

Today’s economic figures

Non-farm productivity in the United States fell 7.5% in the first quarter, while it was expected to be -2.8%, from +6.3% in the previous quarter.

Unit labor costs increased by 11.6%, compared to expectations of +7.3% and +1% in the previous quarter.

The number of jobless claims was 200,000 in the United States last week, against a consensus of 184,000 and 181,000 the week before, a revised figure of 180,000.

The values ​​that follow today

kellogg

Kellogg released quarterly results that exceeded expectations and raised its annual forecast. The American agri-food group made a net profit of 422 million dollars compared to 368 million a year earlier. Excluding exceptional items, EPS came in at $1.1 against a consensus of $0.93. Turnover rose from 3.584 to 3.672 billion. Wall Street was aiming for $3.586 billion. Kellogg now expects 4% organic growth for 2022 from 3% to date. The market expects 1.5%.

Twitter

Elon Musk has brought together a group of investors, including a Saudi prince, Larry Ellison, and a cryptocurrency exchange, Binance, to raise more than $7 billion to support its takeover bid for Twitter Inc, according to a filing with the SEC.

Metlife

Metlife posted adjusted earnings of $2.08 per share in the first quarter of 2022, a 5% year-over-year decline, but beat the Zacks consensus of $1.63. The insurer’s revenue increased slightly from $15.56 billion a year ago to $15.76 billion in the first three months of 2022. Return on equity (ROE) rose sharply to 4.3% (+2. 5 points).

eBay

The world’s largest online auction house, eBay, will come under pressure due to yet another disappointing forecast and a full-year profit warning. In the first quarter, eBay posted a net loss of $1.3 billion, or $2.28 per share, compared to $641 million and $94 million, respectively, a year earlier. This loss is explained by the deterioration in the value of its participations. Adjusted for exceptional items, earnings per share from continuing operations came in at $1.05, beating expectations by 1 cent.

Royal Caribbean

Royal Caribbean reported a loss of $1.17 billion in the first quarter of 2022, or $4.58 per share, after a loss of $1.13 billion at the same time last year. Excluding special items, the loss was $4.57 per share, against a FactSet consensus of $4.46. The cruise line also disappointed in terms of revenue, which rose to $1.06 billion (compared to 42 million a year ago) against expectations of $1.15 billion. However, it expects record bookings for 2023 and a return to profitability from the second quarter.

Berkshire Hathaway/Occidental Petroleum

Berkshire Hathaway has bought 5.9 million additional shares of oil company Occidental Petroleum, according to SEC filings. Shares were purchased on May 2 and May 3 at prices ranging from $56 to $58.37 per unit. Warren Buffet’s investment company had already built up a stake of about 14.6% in the company.

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