Wall Street pre-opening AOF analysis – Waiting in sight, Tesla in the spotlight

(AOF) – US markets should open close to balance, with a positive bias. The yield of the 10-year US rose by around 3 basis points to 4.7%. The weekly jobless claims again surprised positively. On the business side, the results are mixed. Tesla disappointed and is expected to fall sharply, while IBM has some good surprises in store. A few minutes before the first exchanges, futures on the S&P 500 gained 0.07% while those on the Nasdaq Composite lost 0.8%.

Yesterday on Wall Street

US markets closed in the red. The news has however been good on the corporate earnings front since Wednesday evening. Procter & Gamble and Netflix notably unveiled better than expected performance and made progress. The multinational creative industries has signed the largest increase in the S & P 500. On the other hand, the permanent increase in the yield of 10 years – which ended at 4.126% – upset investors. The Dow Jones lost 0.33% to 30,423.81 points while the Nasdaq Composite fell 0.85% to 10,680.51 points.

Macroeconomic figures

The Philadelphia Fed’s manufacturing index came out at -8.7 in October, compared with a consensus of -5 and -9.9 in September.

214,000 jobless claims were recorded last week in the United States after 226,000 the previous week, a revised figure of 228,000. The consensus stood at 230,000.

Existing home sales in September and the index of leading indicators in September will be known at 4 p.m.

The values ​​to follow

American Airlines

In the third quarter of 2022, American Airlines reported net income of $478 million excluding special items, or 69 cents per diluted share, compared to 56 cents expected according to Refinitiv. By comparison, in the third quarter of 2021, it posted net income of $169 million, or $0.25 per diluted share. Excluding net special items, the company posted a net loss of $641 million, or a loss of 99 cents per share.

AT&T

AT&T, the American telecoms operator whose share price rose 2.8% ahead of the stock market, published quarterly profits above market expectations. Under the third fiscal quarter, sales amounted to 30 billion dollars, for adjusted earnings per share of 68 cents. The consensus was 61 cents in adjusted earnings per share and $29.8 billion in revenue.

IBM

IBM reported better-than-expected earnings and is slightly more optimistic about its outlook. In the third quarter, the computer giant suffered a net loss of 3.2 billion dollars, or 3.54 dollars per share against a profit of respectively 1.13 billion dollars and 1.25 dollars, a year earlier. Excluding exceptional items, earnings per share reached $1.81, in line with expectations.

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The American electric vehicle manufacturer Tesla published an increase in adjusted EPS group share in the third quarter of 2022: 1.05 dollars against 0.62 dollars. The consensus was for $1.01. Its adjusted Ebitda is up 55% to 4.96 billion dollars against 3.20 billion dollars a year ago at the same period. Its sales at 21.45 billion dollars against 22.09 billion expected disappointed analysts. They are however up sharply compared to the third quarter of 2021 when they had peaked, Covid-19 obliges, at 13.75 billion.

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