Paris: the break continues, Apple and Amazon disappoint – 10/28/2022 at 10:58

(CercleFinance.com) – The Paris stock market is down slightly (-0.5%, around 6210 points) as investors seem to fear that the slowdown in the global economy will continue to weigh on company results, a feeling reinforced by publications from Apple and Amazon last night.

Apple notably did less well than expected in terms of its iPhone sales and its services activity, which caused it to evolve around the balance (+0.3%) in after-market quotations following its publication.

The shock comes mainly from Amazon, which fell more than 12% in electronic transactions after reporting worse than expected forecasts for the fourth quarter, a key period for the company.

While the earnings ‘season’ has so far turned out better than expected, with 72% of S&P 500 companies beating earnings consensus, averaging 2.3% better than expected, the disappointing releases of certain heavyweights such as Alphabet, Microsoft and Meta Platforms have been severely sanctioned on the stock market.

Investors know that for the market to rise again, technology stocks must regain their role as locomotives, but their publications have disappointed, particularly with regard to the outlook.

Investors should remain cautious before the publication, at the start of the afternoon, of the latest inflation figures in Germany, then of a new series of American statistics.

Are expected, across the Atlantic, the figures for household spending and income as well as the consumer confidence index from the University of Michigan.

In France, INSEE announced this morning that growth in gross domestic product (GDP) had slowed to +0.2% in the third quarter after the rebound recorded in the previous quarter (+0.5% in volume).

In addition, over one year, according to INSEE’s provisional estimate, consumer prices in France are set to increase by 6.2% in October 2022, after +5.6% the previous month, with the acceleration in prices energy, food and manufactured goods.

In securities news, Airbus publishes net income of 2.57 billion euros for the first nine months of 2022, i.e. EPS of 3.26 euros against 3.36 euros a year earlier, and adjusted EBIT up slightly to 3.48 billion, from 3.37 billion.

Air France-KLM publishes for the third quarter of 2022 a net income group share of 460 million euros, an improvement of 653 million, with an operating result of 1.02 billion, i.e. an operating margin of 12.6 %, up 9.8 points.

Amundi publishes adjusted net income of 875 million euros for the first nine months of the year, up 3.4% compared to the same period of 2021 excluding the effect of the exceptional level of performance fees last year .

On the occasion of its quarterly results, Sanofi announces that it is raising its EPS target for 2022 activities, now anticipating growth of around 16% at CER (constant exchange rates), barring unforeseen major unfavorable events.

Finally, Sopra Steria announces that it achieved third-quarter 2022 revenue of 1.22 billion euros, representing total growth of 9% and organic growth of 7.7%, thus bringing organic growth to the first nine months of the year at +7.4%.

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