Market resistance is put to the test. Away from weak indicators in Europe and the US, investors should digest Walmart’s earnings warning, the latest sign of the impact of inflation on consumption habits.
The global leader in distribution has again lowered its annual profit forecast, arguing that its customers are reducing their non-food, non-energy purchases as inflation erodes household budgets. Walmart shares fell nearly 10% in aftermarket trading, sending Amazon tumbling in its wake.
The warning comes as the US Federal Reserve begins its two-day monetary policy committee meeting on Tuesday. The market is generally pricing in another 75 basis point hike in the fed funds rate tomorrow, without ruling out any more aggressive move. The market estimates the probability of a 100 basis point rise at around 10%.
Beware the effect of the dollar for Qifam
In this week that was also marked by the publication of GFAAM results, observers fear the dollar’s rally against other currencies over the past three months. Do not lead to unwelcome surprises In terms of performance, it leads to revisions to forecasts, warns Michael Hewson, chief market analyst at CMC Markets. Alphabet and Microsoft will release their quarterly results after Wall Street closes. Apple, Meta, and Amazon will follow in the coming days.
On the Old Continent, gas supply is a major challenge, especially since Gazprom announced that it plans to reduce flows to Germany via the Nord Stream 1 gas pipeline to 20% of its capacity from July 27. Traders expect the cuts to encourage Europeans to switch to oil to achieve their energy goals. European Union energy ministers are scheduled to meet today to discuss the Commission’s proposals to reduce gas consumption in the European Union.
Dassault System raises its expectations
Dassault Systems It posted higher second-quarter results and raised its annual targets.
Remy Cointreau Once again, it indicated that it is approaching its faltering financial year that will end at the end of March 2023 “with confidence” and raised its expectations for the positive impact of currencies, after a strong increase in its trading volume in the first quarter.
Soitec It confirmed its targets for the 2022-2023 fiscal year despite a marked slowdown in its growth in the first quarter ending at the end of June.
Edenred It reported an increase in its results in the first half and aims to increase the overall operating surplus between 770 and 820 million euros this year.
Eutelsat On Tuesday, it announced the signing of a memorandum of understanding to merge with British rival OneWeb. The deal, which will be worth $3.4 billion (€3.3 billion) for OneWeb, will be through a stock exchange.
Michelin And the LVMH Will give an update on their bi-annual activity after closing.