WALL STREET: TIME TO REBOUND

Posted 21 December, 2021

Wall Street, which has just followed three sessions of decline, is expected to grow quite clearly at the opening. While concerns about the rapid spread of the Omicron variant of the coronavirus around the world, a few days before the holiday season, remain high, operators are expected to make cheap purchases in relatively calm news as the day approaches Christmas. The macro program of the day is also blank while a few quarterly publications should animate the rating today, including Nike and Micron which posted solid results.

On the health front, President Joe Biden must address the Americans this afternoon to unveil new measures to try to stem the coronavirus pandemic. A speech already unveiled by a senior White House official. Containment points on the horizon but an acceleration of the vaccination campaign and the reinforcement of the army in some hospitals overwhelmed by the new wave of coronavirus. The president will also announce that 500 million free tests will be sent to American homes starting next month. Test centers will also be set up in the most affected states. Joe Biden will also issue a stern warning to the unvaccinated, telling them they risk serious illness or death while assuring Americans who have been vaccinated that

"This is not a speech about the lockdown of the country," White House press secretary Jen Psaki said. Joe Biden also intends to draw clear contrasts between the first waves of the pandemic and the last in order to reassure the population. “To be clear: Covid-19 is not the same threat to fully vaccinated individuals as it was in March 2020”. The CDC said Monday that Omicron accounted for about 73% of new cases in the United States during the week of December 12-18. The United States has the heaviest official death toll from this pandemic, with almost 810,000 deaths and 51 million infections.

The barrel of oil is also picking up a bit (+ 1.5% for the WTI at $ 69.8) and an ounce of gold is trading close to $ 1,800. Finally, bitcoin goes up 6.5% over 24 hours, to $ 48,800 on Coindesk.

Values

- Nike is advancing in pre-session after revealing better than analysts' expectations in the second quarter on the back of strong demand in North America. The comma brand made a net income of $ 1.34 billion over the period, or 83 cents per share, down from 78 cents per share a year ago. Revenue rose to $ 11.36 billion, up from $ 11.24 billion a year earlier thanks to Black Friday sales which took place just before the end of the quarter on November 30. Analysts were betting on average EPS of 63 cents for sales of $ 11.25 billion. Revenue in North America increased 12%, helping to offset the 20% decline seen in China. The gross margin improved by 2.8 points to 45.9%. The company expects the gross margin to increase by another 1,

The world leader in sports equipment has also said it is confident that issues affecting supply chains will improve for its next annual fiscal year. In Vietnam, Nike said all factories it works with are back up and running after having to cancel orders totaling around 130 million units. A major problem is that a large chunk of the workforce fled to the countryside when restrictions were lifted earlier this year. However, attendance rates are improving, the firm said. "Nike's strong results this quarter provide further proof that our strategy is working, as we execute it in a dynamic environment," said chief executive John Donahoe. "We are now in a much stronger competitive position today than 18 months ago."

- Nordstrom could split up Nordstrom Rack, its low-cost outlet. The US group is consulting AlixPartners to examine the various options available, according to 'Bloomberg' sources. Nordstrom is "not at all happy" with the takeover of Nordstrom Rack, which would not offer enough premium brands and offer more products for less than its customers would like, chief executive Erik Nordstrom said at the conference call following the presentation of the firm's quarterly results last month. In response, the retailer hired outside consultants to help improve Nordstrom Rack's performance and increase profitability, the leader said.

Several large American chain stores are reviewing their business models, upset by the coronavirus pandemic. Macy's, for example, enlisted AlixPartners for help in evaluating its online operations at the behest of activist shareholder Jana Partners, while rival department store chain Saks Fifth Avenue decided to split its online business, Saks Off. 5th.

- McDonald's. McDonald's Japan branch, McDonald's Holdings Japan, said on Tuesday it will halt sales of medium and large fries for a week from Friday due to supply chain bottlenecks. The fast-food chain faces potato delivery delays as the coronavirus pandemic has shaken supply chains. Heavy flooding near the port of Vancouver in Canada, where the company imports its potatoes, also disrupted deliveries.

- Micron takes precedence after knowing significantly exceeded market expectations during its first fiscal quarter. The memory chip maker also revealed that it has made deals with its own suppliers to alleviate bottlenecks in its supply chain. “We're starting to see a little improvement on this front. But it will be in the 2022 calendar year that much of that improvement will happen,” said Sumit Sadana, CBO of Micron. In its first fiscal quarter, the US company recorded adjusted EPS of $ 2.16 for revenues of $ 7.69 billion (+ 33%). The consensus respectively expected EPS of $ 2.11 for revenue of $ 7.67 billion. Net income reached $ 2.36 billion, or $ 2.04 per share,

The group, one of the world's leading producers of memory chips, expects to achieve revenues of $ 7.5 billion, plus or minus $ 200 million, in its second fiscal quarter, against a market consensus of 7, $ 27 billion. The company is also forecasting adjusted earnings per share of $ 1.95, plus or minus 10 cents, beating analysts' estimates of $ 1.86. Micron boss Sanjay Mehrotra says the firm is well-positioned to achieve a record 2022 fiscal year.

- Moderna. Stéphane Bancel, the chief executive of the pharmaceutical group, said his group did not expect to encounter any problems developing a booster dose of its Covid-19 vaccine targeting the Omicron variant of the coronavirus and that clinical trials could start in early 2022.

- Nikola. The electric vehicle company will pay a $ 125 million fine to end the Securities and Exchange Commission investigations that accused the founder and former chief executive of the group of misrepresenting investors. Former CEO Trevor Milton has misled investors about the company's technological advancements, in-house production capabilities, and truck reservations, according to an SEC statement. "Nikola Corp is responsible for both Milton's allegedly misleading statements and other alleged deceptions, all of which have wrongly portrayed the true state of the company's business and technology," said Gurbir S. Grewal, member of the American financial policeman. The group said they were "satisfied"

- Boeing. UPS orders 19,767 Freighters. A contract that allows the American giant to confirm its record year in terms of the sale of cargo planes with 80 firm orders for new widebody aircraft and more than 80 orders for 'Boeing Converted Freighters. Unfortunately for Boeing, the situation is far from being as favorable in the commercial aircraft segment. “The Boeing 767 is the most versatile aircraft we operate,” said UPS President of US Operations Nando Cesarone. "Our plan to purchase 19 planes and deliver them between 2023 and 2025 aligns with the strategy and the capital expenditure forecasts shared during our investor and analyst day in June 2021.

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