AOF Analysis Closes Wall Street – Markets In The Red Amid Recession Fears – 01/20/2023 at 08:20

(AOF) – US equity markets closed lower. The day’s macroeconomic indicators were mixed with another sign of weakness in the housing market, the first casualty of rising interest rates. On the other hand, with regard to the labor market, weekly requests for unemployment benefits were less numerous in the last week. On the stock side, Procter & Gamble disappointed investors after reporting a quarterly drop in sales. The Dow fell 0.76% to 33,044 points, while the Nasdaq lost 0.96% to 10,852 points.

Procter & Gamble fell 2.11% to $142.42. The American group, which notably owns Ariel detergents and Head & Shoulders shampoos, reported for the second quarter 2022-2023 adjusted earnings per share down 4% to 1.59 dollars, on revenues of 20.8 billion, down of 1% compared to the previous year. year. Earnings per share are in line with expectations. The group experienced a 6% drop in sales volume and a 10% increase in prices.

Today’s economic numbers

In the United States, weekly oil inventories rose by 8.408 million barrels, above the consensus that predicted -0.593 million after +18.962 million the previous week. Gasoline inventories, in turn, increased by 3.483 million barrels against a consensus of +2.529 million, after +4.114 million in the previous week. Distillate inventories fell by 1.939 million barrels. The market was targeting a rise of 0.122 million after -1.069 million the previous week.

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).

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).

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.

The values ​​to follow today

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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