Wall Street: Despite hesitation on 07/14, weekly gain +2.5%

(CercleFinance.com) – Wall Street ends without direction, but weekly results are largely positive with +2.5% overall for the S&P500 (which crumbles 0.1% this Friday).
The Nasdaq index crumbles by 0.2% but maintains a lead of +3.15%, the Dow Jones index, which corrects a 5th consecutive session of gains (+2.3% in total) offsets these declines by + 0.33% and exceeded 34,500, the best close since the end of November 2022 (or mid-April 2022).

US export values ​​have been supported over the last 48 hours by a still weak dollar, which is still giving a few fractions (the Euro tested 1.1248, it ended the week at 1.1230, ie +2.4% weekly).

The $-index dips below the 100-threshold, with a new annual low recorded at 99.60, before a timid 0.13% jump towards 99.90.

On the bond side, US T-Bonds tightened +7Pts to 3.8320% despite the -0.2% fall in US import prices after a 0.4% drop in May, while export prices fell 0.9% last month , after falling 1.9% the previous month.

The Labor Department indicates that over the past 12 months, US import prices have fallen 6.1% in raw data (-1.4% excluding petroleum products) and prices for exports have fallen 12% (-12.4% excluding agricultural products) in June.
This Friday marked the real kickoff for the quarterly publications of several heavyweights of the rating.

Bad surprise for Citigroup (-4%): -36% drop in its second quarter profit (to $2.6 billion vs. $4.55 billion in Q2 2022), -13% in trading income and -24% in investment banking revenue.
Net profit in the American bank thus fell to 2.92 billion dollars (2.60 billion euros), or 1.33 dollars per share, in the period from March to June, against 4.55 billion.

On the other hand, the planet’s No. 1, JP-Morgan (+0.7%), heavily involved in the rescue of regional banks with the FED, had a +67% increase in net profit to 14.4 billion dollars (8, 64 billion Q2 2022), despite provisions for credit losses increased by 27% to $2.9 billion.
Revenue increased 8% to $41.3 billion compared to the first quarter of 2023.
Blackrock (-1.6%) had a 25% rise in its profits (to $9.28 per share), boosted by gains in its mutual funds and growing activity in ETFs: the market was hoping for slightly more sustained growth in sales (a slight decrease). despite bullish markets).

Note that food group PepsiCo and airline Delta Airlines (-2.5%) both raised their annual targets on Thursday ahead of their second quarter releases.

Delta Air Lines has announced an order for 12 more A220-300s, bringing the airline’s total A220 firm order to 131 aircraft – 45 A220-100s and 86 A220-300s. Delta has ordered the A220 five times and is today the largest A220 customer and operator in the world.

The Labor Department reports that US import prices fell 0.2% in June after falling 0.4% in May, while export prices fell 0.9% last month, after falling 1.9% the previous month.

Nevertheless, over the past 12 months, US import prices fell by 6.1% in raw data (-1.4% excluding oil products) and export prices fell by 12% (-12.4% excluding agricultural products) in June.

The latest number for the day and week is surprisingly strong: US consumer confidence improved significantly in July, according to the index calculated by the University of Michigan (UMich), which stands at 72.6 in the preliminary estimate, compared to 64.4 for the previous month, far in addition to the 66 that many economists expect.

Note the strong increase in consumer ‘sentiment’ both on their current situation (77.5 vs. 69 in June) and on their outlook (69.4 vs. 61.5 in June).
Among the main variations observed within the Nasdaq and ‘S&P’ are Peloton off by nearly -10%, Lucid Group by -5.9%, Moderna by -4%, Analog Devices -3.2%, Cisco and Intel -2.1%.

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