Wall Street is consolidating this Wednesday and is showing resistance to the difficulties of Donald Trump. The DJIA is currently losing 0.02% to 25.818 points, while the S & P500 drops 0.07% to 2.861 pts. The Nasdaq takes 0.24% to 7,878 points. Trump has returned to judicial hell since yesterday, and the approach to midterm elections held in November.
Former campaign leader Paul Manafort has been convicted of financial malpractice following a lawsuit in Virginia in connection with the investigation into the role of Russia in the last presidential elections in the United States. Trump's former lawyer, Michael Cohen, told New York that at his request before the elections, he had arranged payments to keep two women who reportedly had an affair with the candidate. Republican (Stormy Daniels and Karen McDougal). According to Bloomberg, Cohen's lawyer claims that the latter is aware of piracy and collusion practices that may interest the special prosecutor Robert Mueller in his investigation into Russian interference in the 2016 elections.
Trump reacted soberly on Twitter: "If someone is looking for a good lawyer, I strongly advise you not to accept Michael Cohen!" He adds that Cohen has pleaded guilty to two counts of violating campaign finance laws, not being crimes, while "President Obama has committed a major (campaign) violation of campaign funding that was easily settled!"
The American president is much more attentive with regard to Manafort. "I feel very bad for Paul Manafort and his great family, the Justice & # 39; took a 12-year tax case, putting tremendous pressure on him and, unlike Michael Cohen, he refused to & # 39; give & # 39; – create stories to get a & # 39; appointment & # 39; – so much respect for a brave man! "
However, Wall Street does not seem to be making much of these setbacks and prefers to focus on the prospect of trade negotiations with China. Trump's latest comments on Fed's current policy also put pressure on the dollar while meeting monetary flexibility. The euro appears Wednesday at $ 1.159 (+ 0.2%). The dollar is also traded at 6.04 Turkish lira (-0.6%).
US President Donald Trump said yesterday in an interview with Reuters that he did not expect many of the trade talks with China to take place in Washington today and tomorrow. Trump does not impose a time limit to get out of the current trade dispute between Beijing and Washington. Official talks had already taken place in June in Beijing, between the US Minister of Commerce Wilbur Ross and the Chinese Deputy Prime Minister Liu He. This time, a Chinese delegation led by Vice Minister of Commerce Wang Shouwen will meet US officials led by Foreign Minister David Malpass of the Treasury. The United States is the basis of the negotiations.
In the future, the United States and China will impose mutual customs duties for imported products of about $ 16 billion. Beijing and Washington had already imposed mutual taxes on products worth about $ 34 billion. US President Donald Trump has even said he is prepared to tax all Chinese imports, as he planned to impose additional tariffs for 500 billion USD on imports from China last month.
The new negotiating group does not employ a very senior civil servant and the previous sections did not bring much progress, which explains why Wall Street does not show excessive enthusiasm for the time being.
Trump also said on Monday that he was not enthusiastic about the rate hike by the Fed of Jerome Powell. He accuses China and Europe of manipulating their currency. The American president had already expressed his reservations about the monetary tightening that is currently being implemented by the Central Bank. Remember that the Fed's monetary tightening cycle started more than two years ago. Powell replaced Janet Yellen in February and confirmed this attitude.
Disappointing house sales
According to the American National Association of Realtors (NAR), the sale of existing homes for the month of July 2018 amounted to 5.34 million units, against a consensus of 5.42 million and a level of 5.38 million a month ago. These sales decrease by 0.7% compared to the previous month and 1.5% on an annual basis.
Fall of the US domestic stocks of crude oil
According to the latest report from the US Department of Energy on this topic, weekly domestic stocks of crude oil (excluding strategic reserves) fell for the week ending 17 August with 5.8 million barrels compared to the previous week, down to -1, 6 million barrels of consensus and +6.8 MB a week earlier. Gasoline inventories rose by 1.2 million barrels, while stocks of spirits rose by 1.8 million barrels … On the US Nymex, a barrel of crude oil (October contract) is currently recovering from 2.5% to $ 67 , 5. The barrel of Brent North Sea wins 2.3% to $ 74.3.
The minutes of the last monetary meeting of the Fed will be published in the evening at 8 pm …
Tomorrow, Thursday, the economic agenda of the US contains unemployed claims, the FHFA real estate price index, the composite PMI index or the sale of new homes …
Jackson Hole in approach
The annual Jackson Hole Economic Symposium in Wyoming brings together the world's largest financiers. In this context, Jerome Powell, the head of the Fed, will speak on Friday at 4 pm on monetary policy & # 39; in a changing economy.
Target and Lowe & # 39; s climb after the accounts
target (+ 5%), the US & # 39; discount chain discount & # 39 ;, defeated the consensus of place on the closed quarter. For the second fiscal quarter, the group announced an adjusted earnings per share of $ 1.47 (+ 20%) compared to a consensus of $ 1.40. The net result was $ 799 million compared to $ 671 million a year ago. In the three months ended in August 2018, consolidated sales were $ 17.6 billion (+ 7%), while analysts only expected $ 17.2 billion. Traffic growth was 6.4%, the best performance in more than a decade. Comparable sales growth was the best in … thirteen years, against 6.5%, against 4.1% consensus. The group increases its forecast for 2018 and now expects a corrected earnings per share of $ 5.30 to $ 5.50, against an earlier expectation of $ 5.15-5.45. For the third quarter the BPA is estimated between $ 1 and $ 1.20.
Lowe & # 39; s (+ 8%). The American furniture chain has reduced its annual profit and sales estimates due to the closure of Orchard Supply Hardware stores, but quarterly accounts are particularly strong … 99 stores will be closed at the end of the year. This results in costs of $ 390 to $ 475 million in the second half of the year. For the second quarter, the group posted a net profit of 7% to $ 1.52 billion and an adjusted earnings per share of $ 2.07 compared to a consensus of $ 2.02. Turnover increased by 7% to $ 20.9 billion. The annual guidance is nevertheless cautious, the group now relies on a bpa ranging from $ 4.50 to $ 4.60.
Analog devices (-1%). For the third quarter, the Massachusetts group achieved a net result of $ 415 million and $ 1.10 per share, as well as an adjusted earnings per share of $ 1.53 (consensus $ 1.46). The semiconductor designer also exceeded the revenue consensus, with sales of $ 1.57 billion over the closed period. For the quarter that starts in October, an adjusted profit per share is expected from $ 1.46 to $ 1.58 compared with $ 1.52 in accordance. T4 revenues are expected between $ 1.53 and $ 1.61 billion, which is higher than the consensus.
Urban Outfitters (+ 7%) jumps to Wall Street. The US retailer announced a net profit of $ 93 million and 84 cents per share before the end of the quarter, compared to $ 50 million and 44 cents a share a year earlier. Turnover increased by 14% to $ 992 million. The consensus was 77 cents of earnings per share and $ 981 million in invoices. Comparable sales increased 13% year-on-year. The group talks about "strong double-digit growth" in digital sales.
Tesla (-1%) remains under supervision, after a 4.4% recovery yesterday closed at $ 322. The title remains at levels well below the target price for leaving the Elon Musk rating, which now stands at $ 420 was housed. The group and its boss therefore study this potential exit of the stock market, but the support of the Saudi sovereign fund & # 39; PIF & # 39; does not seem so unwavering, because it would study a takeover of a competitor from the Tesla group, Lucid Motors, California. who has not yet sold his first vehicle. The title Tesla went back yesterday, some experts estimated the timing favorable for a participation of a giant such as Apple or Google.