Declines on Wall Street; US economy contracted, Salesforce plunges 20%

Trade review: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations

17:04

C3.AI jumps by about 13% after surpassing forecasts and presented revenues of $86.6 million against expectations of $84.4 million and a loss per share of $0.11 against expectations of a loss of $0.3 per share.

Revenue from subscriptions accounted for 92% of total revenue, as the company posted a fifth consecutive quarter of growth. The gross margin was 60% and the forecast for the year is at the upper end of the analysts’ expectations.

The company noted that the demand for corporate artificial intelligence products is increasing, and the company’s competitive advantage positions it well to benefit from this demand. The company’s solutions have been adopted in 19 industries, which highlights the wide and diverse demand for artificial intelligence applications.

The company is still anticipating investments in product development, so profitability is not yet close, but increasing revenues is definitely a step in the right direction for it.

16:32

Trading on Wall Street opened in the afternoon with declines, especially in the Dow Jones index, which fell by 1% following the fall in the share of Salesforce, its company. Nasdaq and S&P 500 are down 0.2%.

The volatility of US government bonds poses a threat to the US stock market, with rising yields both in the US and around the world oppressing the market. Investors are actually waiting for “bad news about the economy to be good news for the market” – but in the meantime the American economy is strong and does not allow the Fed room to lower interest rates. Today the ten-year bond yield stabilized and returned to below 4.6%.

The US government sold 44 billion dollars of 7-year bonds yesterday to finance its budget deficit. Demand was weak and the yields on the bonds rose. This disturbed the market. He thought: “If the Fed is not in a hurry to lower interest rates and no one is enthusiastic about buying the government bonds, this could cause a continuous increase in yields.”

15:55

Salesforce Drops 17% in pre-trade after cutting profit forecast. In addition, the company’s revenues in the last quarter, 9.13 billion dollars, did not meet the analysts’ forecast. According to the company, there is a cooling in demand and customers need a longer time to place orders for the company’s software services.

The company’s quarterly profit was $1.53 billion and $1.56 per share, much more than the corresponding quarter last year.

15:37

US macro – preliminary results of the domestic gross product show that the American economy grew in the first quarter by 1.3% on an annual basis, compared to 1.6% in the previous quarter and in line with expectations.

The number of new job seekers in the US was 219 compared to 215 thousand last week and an expectation of 218 thousand.

The preliminary results of the PCE index, private consumption expenditures showed a growth of 3.6% in the first quarter compared to an expected 3.7% as it was in the previous quarter.

15:04

Trading in Europe is currently going up slightly. On Wall Street, futures are trading slightly lower.

company Re Automotive , led by founder Daniel Barel (who founded it alongside Ahashi Sardes) which developed a modular platform that includes drivetrains for electric vehicles, reported in its financial results that in the first quarter the GAAP net loss was reduced by 29% compared to the previous quarter and the Non-GAAP net loss was reduced by 33% compared to the same period. The company states that the reduction in loss is due to the end of the engineering development phase and operational efficiency of the company.

Along with the publication of the company’s reports, it was noted that Rhee began supplying its electric trucks to vehicle fleets in the US and at the same time launched with the aviation giant, Airbus, a development program for autonomous driving, based on the company’s truck.

13:57

stock Pot Locker Jumps about 6% in the early short on Wall Street after the sports shoe giant presented its results for the quarter: the company posted a 1.8% decline in sales in its fiscal first quarter, when analysts expected it to show a 3.1% decline.

At the same time, the company published its forecast for the rest of the year in which it predicts that the company’s sales amounted to an increase of 1% and between a range of a decrease of 1%, with the early forecast expecting that the forecast would show a decrease of 0.6% in revenues. Foot Locker’s earnings per share amounted to 22 cents compared to expectations of 12 cents and the company’s revenues met expectations when they amounted to 1.88 billion dollars.

12:24

European stock markets are currently trading in slight gains: the DAX adds 0.1% to its value, the FTSE rises by 0.3% and the French CAC rises by 0.2%.

US futures are trading lower.

In early trading on Wall Street, the tech giants are trading lower. Nvidia decreases by about 1%, Tesla at 0.3%, Microsoft at 0.8%, Amazon by 0.3% andMeta by 0.7%.

10:44

The trading day in Europe opened with a mixed trend. The Dax falls by 0.3%, the Potsi sheds 0.1% and the French CAC rises by 0.1%.

In the US, futures are trading lower.

In the US debt market, government bond yields are slightly down after climbing last night. The yield on the 10-year bond is at 4.59% and the yield on the two-year bond is at 4.96%.

In their weekly review, experts from the Swiss bank Lombard Odier noted that high yields on government bonds make them an attractive option for investors looking to buy and hold long-term assets or income-oriented investors. “With current yields exceeding historical averages, government bonds now promise high expected returns more, which prompted us to recommend increasing our exposure to bond assets in our strategic asset allocation at the end of last year.”

In their estimation, “Opportunities in the bond worlds remain attractive, with US bonds offering higher yields and less risk compared to earnings. The earnings of the S&P 500 companies reflect a return of about 4%, while the US sovereign debt offers higher, and less risky, returns of 4.7%.

“Recently weaker economic data further supports the preference for bonds over stocks. However, corporate credit yields are tight relative to historical levels, indicating limited returns for the associated risks. We have adjusted our exposure to emerging market bonds to strategic levels, while Preference for corporate bonds due to their diversification benefits and yield premiums. To manage risk, investors may consider short or inflation-linked bonds, while higher-quality, high-yield credit opportunities open a window of risk-adjusted returns for more patient investors.”

08:48

This morning in Asia, the main indexes are trading lower. The Nikkei is down 1.4%, the Hang Seng is down 1.2%, the Shanghai Stock Exchange is down 0.1%, and the Kospi is down 1.4%.

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In the US, futures trade in a negative trend.

Last night (Wed) on Wall Street, trading closed with price drops: the S&P 500 index fell by 0.6%, the Dow Jones fell by 1% and the Nasdaq fell by 0.6%.

Netflix Interest was concentrated last night (Wed) in trading after Morgan Stanley updated their recommendation on the company’s stock to “overweight”. According to the investment house, Netflix may show double-digit revenue growth. Netflix’s market value is $285 billion, the company’s stock has jumped 74% in the last 12 months. The company’s projected earnings multiple is 45.

Nvidia not stopping The chip giant broke another record last night when it traded at a price of $1,148 per share. In the last two years, it seems that there is no record that Nvidia does not know how to break. Time after time, report after report, she surprises the market and last week she did it again – twice.

● Nvidia stock keeps soaring? This is Bank of America’s forecast

After the publication of the chip giant’s financial reports last week, the company’s stock surpassed the $1,000 mark per share and since then it has only continued to rise. In the last week, Nvidia shares jumped by about 20% to a market value of 2.8 trillion dollars. In the meantime, this number places Nvidia as the third most valuable company in the US, and it is breathing in the back of Microsoft ($3.2 trillion) and Apple ($2.9 trillion). Let’s recall that Nvidia surpassed the $2 trillion mark only three months ago.

stock Salesforce Last night it plunged by about 16% after missing the forecasts in the revenue line for the first time since 2006. The profit per share amounted to about $2.44 compared to the early expectation of $2.38 and the company’s revenues amounted to about $9.13 billion compared to a forecast of $9.17 billion.

Government bond yields in the US rose last night. The latest macro data are not encouraging and investors’ eyes are on the important figure this week that will be published in two days, the PCE index, the private consumption expenditure index, this is the Fed’s preferred inflation index. The 10 bond yield rose to 4.61% and the two-year bond yield traded around a level of 4.97%.

In the commodity market, oil prices traded higher when a barrel of Brent was sold at 84 dollars, and the price of crude oil rose to 80 dollars per barrel.

At the Swiss wealth management bank, Pickett, they refer to the monetary policy in the US. According to senior economist Xiao Chui, its influence is weakening, but still limiting: “The macro data is in line with our expectations. Growth remains firm but not reaccelerating, and there are initial signs of resuming progress towards disinflation, after an increase in the first quarter. However, speeches by senior Federal Reserve officials indicate that the threshold for lowering interest rates has risen, as they remain patient about the start of the easing cycle.

“The timing of the reduction depends on the inflationary path, and ranges between July and September. We anticipate two interest rate reductions of 25 basis points, in September and December. If inflation turns out to be more sticky than we estimate, the risk of only one reduction in December, or no interest rate reduction for the entire year, will increase significantly. For a future interest rate increase, we adhere to the view that the threshold for this is high, since a strong acceleration in inflation, and not just a rate stuck above the target, will be required to justify an interest rate increase.”