Alphabet and Microsoft above estimates, Intel knocked out
Alphabet, the company that controls the Google search engine, rises by around 10% on Wall Street after recording profits and sales above expectations in the first three months of 2024, so much so that it decided to pay the first dividend in its history, of 20 cents per share that will be paid to shareholders in June. In addition, the group will implement a new 70 billion buyback plan, in line with that of last year. Microsoft shares are highlighted by quarterly numbers above consensus, with profits up 20% to 21.9 billion. Ko for Intel, which even lost 11%, which is affected by the mixed accounts and above all by the lackluster indications for the current quarter: for the April-June period, Intel expects a profit per share of 10 cents on revenues of 13 billion (midpoint) while analysts estimated a profit of 25 cents on 13.57 billion in revenues.
Thanks to Microsoft and Alphabet, the American market seems to be shelving the disappointment of the macro data and the accounts of Meta and IBM, which on the eve sank the shares of the two groups, which slipped by 8.5% and 10.5% respectively . The US stock market is preparing to close a brilliant week with increases of between 3% and 4% for the S&P500 and Nasdaq.
Banks doing well in Milan, Tenaris down on forecasts for the next few months
Bank stocks shone in Piazza Affari, with Banca Mps and Banca Pop Sondr at the top of the list. Convincing session also for Prysmian in the wake of the sector increases at European level (Euro Stoxx Industria +1.77%). Rebound for Iveco Group and luxury with Brunello Cucinelli, after a series of difficult sessions. However, there are only a handful of negative stocks: among these Stmicroelectronics, which closes in the red, in contrast to the tech sector (European sub-index +1.99%) and is still affected by the accounts. However, Tenaris ends up at the bottom of the Ftse Mib, weighed down by profit and revenue forecasts for the coming months. Finally, Unipol closed higher on the last day of the takeover bid on Unipolsai. Already yesterday the company announced that it had reached over 90% of the capital of the subsidiary and will therefore proceed with the delisting.
Madrid the best of the week, London at all-time highs
The Madrid Ibex (+4%) is the best index in Europe in a week marked by quarterly reports. The Ftse 100 in London (+3.1%) also recorded good increases in the eighth session, reaching its highest level in eight sessions, the Aex in Amsterdam (+2.6%) and the Dax in Frankfurt (+2.4%) . The Cac of Paris (+0.8%) is further behind, due to the decline in luxury stocks, and the Ftse Mib of Milan (+1%). In Piazza Affari the quarterly reports shone while waiting for the accounts of the main credit groups.
Euro below 1.07 dollars, oil on the rise
On the exchange rate front, the euro/dollar fell below 1.07 dollars. Oil prices are rising: WTI in June is close to 84 dollars a barrel, Brent, again in the June deadline, exceeds 89 dollars a barrel. The price of natural gas in Amsterdam has fallen to 29 euros per megawatt hour.
BTp, 10-year yield falling to 3 88%
The spread between BTp and Bund narrowed in a session of general contraction in government bond yields, in particular after the publication of American data on the trend in prices for consumer spending. The yield differential between the benchmark ten-year BTp (Isin IT0005560948) and the German Bund of the same duration stood at 131 basis points, from 135 points the day before. The yield of the benchmark ten-year BTp fell to 3.88% from 3.98% of the previous reference.