Wall Street Pre-Open AOF Analysis – Markets Expected to Dip, Jobless Claims Fall – 1/19/2023 at 3:15 PM

(AOF) – US markets are expected to tumble after ending in the red yesterday, as investors worry about the deteriorating economic outlook following the announcement of several disappointing statistics. In terms of values, this context weighs on high technologies (Apple, Amazon, Microsoft, Tesla). Claims for jobless benefits fell in the United States last week to 190,000 from 205,000 the previous week. Just minutes before the first trades, the S&P 500 and Nasdaq Composite futures lost 0.84% ​​and 0.94%, respectively.

Yesterday on Wall Street

US equity markets extended their losses in the second half of the session. Several statistics showed the weakness of the US economy at the end of 2022. Retail sales and industrial production fell more than expected. Producer prices decelerated more than expected. Fed members also called for higher rates. On the value side, Microsoft fell after announcing 10,000 job cuts. The Dow Jones lost 1.81% to 33,296.96 points and the Nasdaq lost 1.24% to 10,957.01 points.

macroeconomic numbers

190,000 jobless claims were filed last week in the United States, compared with a consensus of 214,000 after 205,000 the previous week.

1.330 million building permits were filed in December 2022 annually in the United States. Consensus was 1.370 million, up from 1.351 million in November. Additionally, 1.382 million construction starts were recorded in December annually. Consensus was 1.359 million, down from 1.401 million in November (revised from 1.427 million).

The Philadelphia Fed Manufacturing Index came in at -8.9 in January, compared with a consensus of -11 and -13.7 in November (revised from -13.8).

The weekly evolution of gas inventories is expected at 4:30 pm in the United States

The following values

Alcoa

Pennsylvania-based aluminum maker Alcoa said it lost $374 million, or $2.12 per share, in the fourth quarter, compared with a loss of $392 million a year earlier. Alcoa’s total third-party revenue decreased 7% quarter-over-quarter to $2.7 billion, primarily due to lower alumina and aluminum prices, higher raw material costs (mainly caustic soda and carbon) and increased sequential in production costs.

Chesapeake Energy Corporation

Chesapeake Energy Corporation announced yesterday that it has reached an agreement to sell its Eagle Ford asset in Brazos Valley, Texas, to WildFire Energy, a private equity firm, for $1.42 billion. Chesapeake has agreed to sell approximately 377,000 net acres and approximately 1,350 wells, along with related property, facilities and equipment. The average net daily production of these properties was approximately 27,700 barrels of oil equivalent during the third quarter of 2022.

general electrical

General Electric and KUKE, the Polish Export Credit Agency (ECA), announced a strategic cooperation agreement on export finance worth €1 billion to help GE’s global markets customers decarbonize the energy sector and increase electrification worldwide. Through this joint agreement, GE in Poland will work with KUKE to secure debt insurance on agreed transactions, which will help facilitate large capital investments.

Lockheed Martin

The sixth Global Positioning System III (GPS III) satellite designed and built by Lockheed Martin has been launched and is in operational orbit approximately 12,550 miles above Earth, where it will contribute to the ongoing modernization of the US Space Force’s GPS constellation. GPS III Space Vehicle 06 (GPS III SV06) launched from the space station in Cape Canaveral, Florida aboard a SpaceX Falcon 9 rocket at 7:24 am yesterday. GPS III SV06 is the 25th military-coded satellite introduced into the constellation.

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