Two events for the price of one

Two events for the price of one

Between the minutes of the latest Fed meeting and Nvidia’s results, the evening promised to be explosive on Wall Street, especially with the Nasdaq rocketing 10% since November 1st. Spoiler alert, nothing too exciting happened. Does the great optimism of investors lack bullish fuel? Absolutely, and that’s quite normal after such a sequence of progress and before a long weekend in the United States.

It’s November 21, 2023, the entire European stock market is in the red… Everything? No ! The land inhabited by the dogged Swiss still resists the invader. Well, it’s a bit of a grandiose start to write that the SMI gained 0.4% yesterday in Zurich, while all other places operating in nearby time zones fell. The Swiss index can thank its heavyweights Novartis (+0.9% and above all Nestlé (+1.5%) for good and loyal service. Investors seemed to get a taste of defensive sectors again, amid the orgy of growth stocks. The proof? Danone was the biggest by the rise of the CAC40. Which did not prevent the Paris index from losing a few pens yesterday (-0.2%) due to the drop in LVMH, which did not appreciate the downgrade of the recommendation by UBS from buy to neutral. Relax, there is not much to report during this European session, where we they’ve been waiting to hear, like the rest of Wall Street, whether Nvidia is going to catch fire on scandalous results and indecent forecasts, or sink on mediocre profits and substratospheric targets.

Finally, Nvidia posted very good results and a higher than expected outlook, but without over-enthusiasm. He even lost the title after sitting on Wall Street. So did the mountain give birth to a mouse? Not necessarily, because the basic hypothesis that the AI ​​boom is the underlying trend is reinforced. After all, Nvidia has more than tripled its revenue in a year, and the acceleration is confirmed at the end of the year, even as the group admitted it is penalized by the technology restrictions imposed by the United States on China. Ahead of the group’s results, Wall Street cautiously “consolidated its positions”, a parlance used in finance to denote a decline after a series of gains. The Nasdaq 100 fell 0.66%, while the S&P500 and Dow Jones returned 0.2%.

The world of cryptocurrencies is once again rocked by the Binance affair: the group and its vocal CEO Changpeng Zao pleaded guilty to money laundering charges. In particular, they were accused of facilitating the financing of terrorist organizations or of keeping neo-crypto-wealthy Americans as clients despite court orders. The CEO resigned and the company will have to pay $4.3 billion in fines, in addition to a five-year monitoring period and punitive restrictions, including the complete withdrawal of Binance from the United States. Changpeng Zao, a Canadian citizen born in China, will have to answer in court over the matter. History does not tell whether, if sentenced to prison, the American judiciary would have had the audacity to lock him up with Sam Bankman-Fried, whose downfall he hastened.

In other news, Altman’s saga continues. OpenAI’s board is reportedly in talks to rehire Sam Altman. All this can end up like a storm in a teacup. Minutes from the Fed’s latest meeting did not bring anything new to the rate debate, as did Christine Lagarde’s statement earlier in the day. In the Middle East, Israel and Hamas reached an agreement to release 50 hostages in exchange for a ceasefire. Investors are looking ahead to macroeconomic statistics expected in the United States this afternoon.

The stock market session ends with XXS variations in Asia Pacific, with declines and unofficial advances for Australia’s ASX (-0.06%), Korea’s Kospi (+0.05%) and Hong Kong’s Hang Seng (-0.19%). Only the Nikkei stands out, holding on, up 0.29%. As for European indicators, they are hovering around balance.

Today’s economic highlights

In the United States, durable goods orders and weekly jobless claims (2:30 p.m.) will outpace the University of Michigan consumer confidence index (4:00 p.m.) and DOE oil inventories (4:30 p.m.). The whole agenda here.

The euro is worth $1.0914. An ounce of gold is trading at $1,996. Oil is little different, with North Sea Brent at $82.30 a barrel and US light WTI at $77.62. The yield on 10-year US debt is 4.41%. Bitcoin is trading around $36,400.

Major changes in recommendations

  • ABB: HSBC maintains its recommendation to hold with a reduced price target of 35 to 34 CHF.
  • Atlas Copco: HSBC maintains its hold recommendation with an increase in price target from SEK 140 to SEK 145.
  • Bayer: Morningstar maintains its buy recommendation with a target price cut from €83 to €75.
  • Burberry: AlphaValue/Baader Europe maintains its Accumulate recommendation and raises the target price to GBX 2068 from 2014 GBX. CICC maintains its neutral recommendation with a price target lowered from GBX 2000 to GBX 1600.
  • Cellnex: BNP Paribas Exane maintains its Outperform recommendation with a price target raised from €43 to €44.
  • Dometic: Banka SEB maintains its buy recommendation with a price target lowered from SEK 110 to SEK 105.
  • Eiffage: Barclays maintains its overweight recommendation with a price target cut from €130 to €126.
  • Engie: Citigroup maintains its buy recommendation with a price target increased from EUR 16 to EUR 16.70.
  • Givaudan: Morgan Stanley changes from market weight to underweight with a price target reduced from CHF 2,980 to CHF 2,750.
  • GSK: Jefferies maintained with reduced price target of GBX 1,650 to 1,550.
  • Henkel: JP Morgan maintains its neutral recommendation with a price target cut from EUR 71 to EUR 70.
  • Hexagon: HSBC maintains its hold recommendation with a price target raised from SEK 100 to SEK 105.
  • Julius Bär: RBC Capital maintains its Outperform recommendation with a price target cut from CHF 71 to CHF 58.
  • Kone: HSBC maintains its hold recommendation with a price target raised from €44 to €45.
  • Merck KGaA: AlphaValue/Baader Europe maintains its buy recommendation with a price target raised from EUR 204 to EUR 208. Jefferies remains a buy with a target price raised from €173 to €188.
  • MorphoSys: Goldman Sachs maintains its neutral recommendation with a price target cut from €33.50 to €17.50.
  • Nvidia: JP Morgan maintains its overweight recommendation with a price target raised from $600 to $650.
  • OPAP: JP Morgan maintains its overweight recommendation with a reduced price target of €19 to €18.50.
  • Prysmian: Oddo BHF starts neutral monitoring with €40 price target.
  • Rheinmetall: JP Morgan maintains its overweight recommendation with a price target raised from €340 to €370.
  • Schindler: HSBC moves from cut to hold with price target raised from CHF 175 to CHF 185.
  • Schneider Electric: HSBC maintains Buy recommendation with price target raised from €185 to €190.
  • Sonova Holding: Carnegie Group maintains its recommendation to hold with a reduced price target of 240 to 238 CHF. JP Morgan maintains its neutral recommendation with a price target cut from CHF 283 to CHF 244.
  • Tod’S: Barclays maintains its market weight recommendation with a reduced price target from €34 to €33.
  • UBS Group: Zacks maintains its neutral rating with a price target raised from $26 to $28.
  • Verbund: Citi switches from neutral to sell with price target cut from €76 to €75.
  • Vestas: HSBC maintains its hold recommendation with a price target raised from DKK 165 to DKK 180.
  • Zehnder: Jefferies to be maintained with target price cut from CHF 66 to CHF 55.

In France

Company results (comments are given directly and do not anticipate the development of securities, except for the stock exchanges after the session in the United States, which usually reflect the trend well)

  • Interparfums is targeting growth of 10 to 12% in 2024.
  • Elior predicts lower sales growth in 2024 than analysts estimate.

Important (and not so important) announcements

  • Carrefour signs a partnership with JIP Retail in the Czech Republic, in convenience stores.
  • Eurofins considers the compensation requested by Lactalis to be unjustified.
  • Antoine Arnault leaves general management of Berluti (LVMH) to Jean-Marc Mansvelt (Chaumet).
  • SAS gets US investment approval from consortium led by Castlelake and Air France-KLM.
  • Euroapi completes the acquisition of German Biano for 10 million euros.
  • Indian regulator approves Eutelsat’s satellite broadband services.
  • Esker appoints a new DAF.
  • Euro Resources is setting up an ad hoc committee to decide on the €3.50 OPR/RO filed by Iamgold.
  • OSE Immunotherapeutics announces a collaboration agreement with GenDx to develop a companion diagnostic test associated with Tedopi.
  • They have published / Must publish : Imaginative…

In the big world

Company results (comments are given directly and do not anticipate the development of securities, except for the stock exchanges after the session in the United States, which usually reflect the trend well)

  • HP Inc lost 3.5% in the after-hours session after releasing quarterly results.
  • Nvidia lost 1.7% in the after-hours session after releasing its quarterly reports.
  • Thyssenkrupp is taking several billion euros worth of write-offs in its steel business.

Important (and not so important) announcements

  • Permira and Blackstone will buy Adevint (Le Bon Coin) for NOK 115 per share, for a total price of NOK 141 billion (around EUR 12.1 billion).
  • OpenAI and Microsoft sued over AI training copyright infringement.
  • According to CNBC, Jeff Bezos reportedly sold another $1 billion in Amazon stock on Tuesday.
  • Novo Nordisk allocates Ozempic starter kits due to increased demand for weight loss.
  • Blackstone is set to acquire software developer Civic for $2.5 billion.
  • Warren Buffett says Berkshire Hathaway has the “right CEO” to replace him.
  • Ford is scaling back its plan for an electric vehicle battery factory in Michigan.
  • Sony is facing a class-action lawsuit in the UK after allegations of abusing its dominant position on the Playstation Store.
  • The EU Competition Commission extends the decision on the merger between Novozymes and Christian Hansen.
  • Altice Europe is relinquishing control of its data center unit to the Morgan Stanley fund.
  • Fresenius Medical Care will receive compensation in the dispute with the US military and will have a positive operating profit impact of 175 million euros on its operating profit.
  • Julio Bär’s loan at Signa will be monitored by Finma.
  • Rio Tinto to pay $28 million to settle accounting disputes with SEC
  • Enel sells its assets in Peru to Niagara Energy for $1.4 billion.
  • AP Moller Maersk signs green methanol deal with Chinese company Goldwind.
  • Main publications of the day: Deere, Sage, Severn Trent, Kingfisher, Rockwool, ThyssenKrupp, Johnson Matthey, LDC… Full agenda here.

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