Weak Wall Street: at approximately 15.38 Italian time, the Dow Jones rose by 0.23% to 36.169 points; the S&P 500 is flat with a variation of + 0.05% at 4,684 points; the Nasdaq was also flat, with a variation of -0.01% at 15,851 points.
The October retail sales figure has been published, up by 1.7%, more than the + 1.2% -1.5% expected by the analyst consensus. Excluding car sales, the figure increased by 1.8%, while excluding both car and petrol sales, the increase was + 1.4%.
The data relating to industrial production was also released, which rose by 1.6%, more than double the expected + 0.7% and compared to the previous decline of -1.3% in September. The utilization of production capacity rose to 76.4%, more than the expected 75.9% and compared to the previous 75.2%.
Just today, two American retail giants released their financial results for the third quarter of the year.
These are Wal-Mart and Home Depot.
DIY giant Home Depot closed the third quarter with a profit and turnover that beat analysts’ expectations. Supporting the budget results was the decision of several American citizens to embark on new projects to renovate or simply refurbish their homes. In the fiscal third quarter ended October 31, Home Depot’s net income rose to $ 4.13 billion, or $ 3.92 per share, compared to $ 3.43 billion, or $ 3.18 per share, for the same period of the year. ‘last year. Analysts had expected an eps of $ 3.40. Net sales advanced 9.8% to $ 36.82 billion, over the $ 35.01 billion estimated by the consensus. Sales on a comparative basis increased by 6.1%, compared to the + 2.2% expected. The stock rises by more than + 2%.
Wal-Mart’s financial results are also better than expected, benefiting from the decision of several American consumers, gripped by the fear of inflation, to go back to shopping in supermarkets, where prices are usually cheaper than those established. from other retailers more specialized in the choice of products.
Net income of the US giant fell to $ 3.11 billion, or $ 1.11 per share, from $ 5.14 billion, or $ 1.80 per share, in the third quarter of 2020. Earnings per share were $ 1.45, better than the consensus expected $ 1.40.
Revenue rose about 4 percent to $ 140.53 billion from $ 134.7 billion in the same period last year, better than analysts’ estimated $ 135.60 billion.
Wal-Mart’s sales on a comparative basis in the US rose 9.2% – excluding gasoline sales – over the expected + 6.9%.
Wal-Mart revised its 2021 adjusted EPS estimates up from the previous range of $ 6.20 to $ 6.35 to $ 6.40. The stock falls by half a percentage point.
Focus on Treasury rates, with 10-year rates rising to 1.628% and 30-year rates exceeding the 2% threshold.
Watch out for the statements made by James Bullard, president of the St. Louis Fed, known for his hawkish statements, who did not deny himself even today.
Bullard said the Fed is expected to usher in tighter monetary policy over the next two meetings, and that a further cut in bond purchases, with a tightening tapering to $ 30 billion per month, would pave the way for an initial hike in bond purchases. rates at the end of the first quarter of 2022.
Among other stocks, Tesla continues to confirm itself as the undisputed protagonist on Wall Street for better or for worse, for about ten days now. In the past few hours, it has been learned that founder and CEO Elon Musk has sold more Tesla stock for $ 930 million, following last week’s disposals, which amounted to $ 6.9 billion. Yesterday, the sales that hit the share led to the capitalization of the auto manufacturer giant falling below the $ 1 trillion wall.
In the last few hours, the announcement of JP Morgan has also arrived, which has communicated that it has sued Tesla, accusing it of flagrant violation of a contract that the counterparties had signed years ago, concerning warrants on shares. In the complaint filed with the Mahnattan federal court, the banking giant sought compensation of $ 162.2 million.
It should be noted that last week was the worst week for Tesla in more than a year: the stock is down by more than 17% since last November 8. But at the start of the session, Tesla advances by about 2%.
Focus on other stocks listed on Wall Street, after the news that emerged from some articles dedicated to the moves of Berkshire Hathaway, a holding created and managed by Warren Buffett, on its investment portfolio.
The group has announced that it has canceled its investment in the American pharmaceutical giant Merck, while reducing the stakes it also holds in the pharmaceutical companies AbbVie and Bristol-Myers. Buffett also reduced the stakes held in credit card giants Visa and Mastercard.
The Oracle of Omaha has focused on a company that owns the copyrights on medicines produced by other pharmaceutical companies, or on Royalty Pharma (RPRX): the investment made was equal to $ 475 million.
Buffett & Co also shopped for a $ 99 million stake in the floor decoration retailer Floor & Decor Holdings.
Royalty Pharma flew over 14% in the premarket following the test of trust from Berkshire, and is now up by more than 3%. Floor & Decor is also very good, with the title jumping by more than 6%.