CAC40: +1%, back to 7,950, Nasdaq weighed down by -4% Nvidia

(CercleFinance.com) - After 3 sessions in the red, the Paris Bourse erased all its losses with a gain of +1%, propelling the CAC40 to 7,950pts.

The index is catching up with the Euro-Stoxx50, up 0.9% to set a record at 5,280, with the DAX40 also setting a record at 21,720pts.
No clear reaction to the unsurprising -25 basis point cut in the ECB's key rate.
Our OATs eased by -4.5pts to 3.2700%, Bunds by -5pts to 2.5230%, all bets were off before the ECB's press release.
Outside the Atlantic, the US '10-yr' also eased (-2.5pts to 4.523%).
Last night, the Fed, the US central bank, announced its intention to 'take its time' in the evolution of its monetary policy and maintained the status quo on rates, both to analyze the implications of the new administration's policies and to see further progress in terms of disinflation.
This triggered the fury of Donald Trump within the hour in 'what's the Fed waiting for to cut rates' mode.
On Wall Street, heaviness prevailed with -0.1% on the S&P500 and -0.5% on the Nasdaq, which suffered -4% on Nvidia.

The publications of the "Magnificent Seven" that fell yesterday after the close of Wall Street disappointed investors on the whole.

Microsoft fell by more than 5% after unveiling earnings per share of 3.23 dollars against a consensus of 3.11 dollars. At $69.9 billion, sales were slightly ahead of the $68.8 billion expected by analysts.

The market was clearly hoping for better.

Meta (+1.9%) significantly outperformed guidance for its quarterly EPS, but its sales target for the first quarter turned out to be slightly weaker than expected.

Tesla, meanwhile, lost around 2% following the publication of a disappointing EPS of $0.73, against an expected $0.76, with sales even more clearly missing target at $25.7 billion against an expected $27.3 billion.

Only IBM surprised pleasantly with EPS of $4.26 against an expected $4.12, with sales coming in at $17.25 billion as forecast.

On the statistics front, investors took note of the 1st estimate of US gross domestic product (GDP), which slowed from 3.1% to 2.3% annualized in the fourth quarter of 2024, according to a very first estimate from the Commerce Department.

To compensate a little, the Labor Department announced that it had recorded a sharp drop (-16.000 to 207,000) in new US jobless claims in the week to January 20.
The four-week moving average - more representative of the underlying trend - came in at 212,500, down a modest 1,000 on the previous week.

Finally, the number of people receiving regular benefits fell by 42,000 to 1,858,000 in the week to January 13, the most recent period available for this statistic.

In Europe, according to a first estimate, the annual growth rate for GDP to the end of 2024, based on quarterly seasonally adjusted data, rose by 0.7% in the Eurozone and by 0.8% in the EU, following increases of 0.4% in the third quarter.

Among the Member States for which data are available, Portugal (+1.5%) recorded the largest increase, followed by Lithuania (+0.9%) and Spain (+0.8%).
Declines were observed in Ireland (-1.3%), Germany (-0.2%) and France (-0.1%).

In France, French household consumption expenditure on goods rose sharply by 0.7% in volume terms in December, following a 0.2% increase in November (revised from an initial estimate of +0.3%), according to Insee's CVS-CJO data.

This rise was mainly driven by an increase in purchases of manufactured goods (+1.9%), notably transport goods, as well as energy consumption (+2.5%). Food consumption, on the other hand, fell (-1.5%).

Over the fourth quarter of 2024 as a whole, household consumption of goods continued to rise (+0.4% after +0.4% in the third quarter), with an acceleration in the consumption of manufactured goods (+0.9% after +0.1%).

In other French company news, the Crit group last night reported full-year sales for 2024 of €3,123 million, up 23.2% (or +0.9% on a like-for-like basis), thus meeting its target of breaking the €3 billion barrier.

This morning, STMicroelectronics reported Q4 2024 EPS down 67.5% year-on-year, to $0.37, and an operating margin down 12.8 points to 11.1%, as well as a gross margin down 7.8 points to 37.7%.

Sanofi reported business EPS of 7.12 euros for 2024, down 1.8% on a reported basis but up 4.1% at CER (constant exchange rates), thus exceeding its forecasts, and proposes an annual dividend of 3.92 euros per share.

Finally, Eurofins Scientific is presenting EPS for 2024 up 41% to 1.87 euros, and adjusted EBITDA up 13.8% to 1.55 billion euros, in line with the mid-point of its target range set last October.

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