Cac 40 bears brunt of Wall Street’s fall in two years, market news

It took two big names at the American box office to sound the alarm, to take the threat seriously…Yesterday Target fell 25% after warning of the risk of a further deterioration in its margins after its net income was halved in the first quarter due to rising costs. Costs that are primarily attributable to fuel, freight and labor, continue to increase almost daily and there is currently no indication (…) that they will decrease over time Target explained. With a strong and now measurable impact on accounts: operating margins of just 6% this year, an impact of at least two points from the last forecast made just three months ago. The day before number one in the world walmart put forward the same reasons to announce that its EPS targets are no longer relevant. The title was still down almost 7% on Wednesday after dropping more than 11% a day earlier. Other great sacrifices of the day Best Buy, Macy and If.

Convinced by its two oracles, Wall Street freaked out and the major indexes immediately went negative yesterday, posting their biggest drop since June 2020. Dow Jones fell by 3.44%, and NASDAQ Composite 4.72%.

In its turn, Nikkei 225 lost 1.89% this morning and Europe opened lower. In Paris Bedroom 40 fell 1.8% to 6,237.65 points.

Who is next ?

It is clear that transportation costs are significant and affect [certaines] from the largest companiesI can only mention Kim Forrest of Bokeh Capital, in an interview with CNBC. Now investors are scratching their heads thinking, so who’s next? First of all, these comments give us the key to understanding what is going on in the minds of consumers.. »

Consumers face challengesMegan Horneman of Verdence Capital Advisors answers. Since the end of last year, they have been using their credit cards to pay for rising food and energy prices, and things have gotten worse… This will hurt big retailers, and Walmart is one of them. »

Adding even more salt to EDF

Statistical meetings of the day are a priori unlikely to change the situation. In the United States, we expect weekly jobless claims, the Philadelphia Federal Reserve Bank of Philadelphia Region Index, existing home sales trends, and the Conference Board Leading Indicator Index. The ECB publishes the minutes of its latest monetary policy meeting.

From the business side Societe Generale (+0.3%) completed the sale of its Russian subsidiary Rosbank and will spend €3.2bn in the second quarter.

In home EDI (-2%), the decline in nuclear power production will be more than expected to affect gross operating profit this year. The negative effect is now estimated at 18.5 billion euros against 14.5 billion previously.

Derichebur at Elior’s table

Vallorec (-2.6%) announced further job cuts due to first quarter data. Gross operating income fell from 80 million euros to 45 million euros in a year due to the temporary closure of the Pau Branco iron mine in Brazil, but without this one-time event, it would have reached 130 million. Accounts increased by 30.5% to 916 million euros. Overall, Vallourec expects a gross operating surplus for the year.” significantly higher than in fiscal 2021 “.

Derishbur will acquire 14.7% of the capitalElior, at a price of 5.65 euros per share, which is significantly higher than the current level, bringing its share to 19.6%. If the action of the collective food group is practically stable. Derishburg, he lost 7%.