Stoppage for the Cac 40, Alphabet and Microsoft fall after their quarterly

Posted Oct 26, 2022, 8:36 AM

Wall Street’s surge last night may not be enough as the US post session was marred by disappointing quarterly performance from tech heavyweights Alphabet and Microsoft. The market is also preparing for a new series of publications within the Cac 40. But the relaxation on the bond market is a support factor.

The parent company of Google published after the US close a quarterly turnover below expectations, particularly in terms of advertising revenue. The global software leader meanwhile recorded the weakest quarterly sales growth in five years, while its forecasts disappointed. In after-market transactions, Alphabet and Microsoft fell nearly 7%. The contracts futures on Nasdaq 100 fold nearly 2%. All eyes are now on Meta, Facebook’s parent company, whose quarterly reports are expected after the US session, and which should not be spared by the drop in advertising revenues.

Bad news that goes in the right direction

The S&P 500 closed 1.6% higher and the Nasdaq Composite 2.3% higher on Tuesday as the day’s data reflected a halt in home price growth and a deterioration in consumer confidence. Bad news perceived as good news insofar as it suggests that recent rate hikes are beginning to dampen the economy.

While the stats haven’t changed expectations of a 75 basis point Fed rate hike next Wednesday, they add to signs that the Fed may end its aggressive tightening policy this year. next. The yield on the 10-year US bond fell 12 basis points last night around 4.10%, and was trading around 4.08% in Asia this morning.

Thales and Dassault Systèmes confident

Thales estimated that it would reach the top end of its revenue growth guidance range this year, having benefited in the third quarter from the momentum in the digital identity and security business (DIS, ex-Gemalto ).

Dassault Systems raised its guidance for diluted net earnings per share for 2022, after an increase in its results in the third quarter.

vinci reported a strong 26% rise in third-quarter revenue, citing continued recovery in airport passenger numbers and highway traffic.

Michelin announced a 20.5% growth in sales at the end of September 2022, but lowered its outlook for free cash flow for the full year to 0.7 billion euros, against 1.2 billion previously .

Nexans raised its financial targets for 2022, encouraged by the acceleration of its growth momentum in the third quarter.

Orpea announced that it had obtained the opening of an amicable conciliation procedure with the Nanterre commercial court, in order to engage with its financial creditors in discussions relating to the restructuring of its debt, the obtaining of financial means and the adjustment of its bank commitments, or covenants. Suspended Monday, the quotation of the action of the operator of retirement homes resumes this morning.

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