(AOF) – US equity markets closed lower. The day’s macroeconomic indicators were mixed with another sign of weakness in the housing market, the first victim of the rate hike. On the other hand, when it comes to the labor market, weekly claims for unemployment benefits were less numerous last week. On the stock side, Procter & Gamble disappointed investors after reporting a quarterly drop in sales. The Dow Jones 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 dollars. The American group, which notably owns Ariel detergents and Head & Shoulders shampoos, published for its second quarter 2022-2023 adjusted earnings per share down 4% to 1.59 dollars, for a turnover of 20 8 billion, down 1% year-on-year. Earnings per share are in line with expectations. The group experienced a 6% drop in sales volumes and a 10% increase in prices.
Today’s economic figures
In the United States, weekly crude inventories rose by 8.408 million barrels, above the consensus which forecast -0.593 million after +18.962 million the previous week. Gasoline inventories, for their part, increased by 3.483 million barrels against a consensus of +2.529 million after +4.114 million the previous week. Stocks of distilled products 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’s manufacturing index came out 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 registered in December 2022 on an annual basis in the United States. The consensus was for 1.370 million, after 1.351 million in November. In addition, 1.382 million construction starts were recorded in December on an annual basis. Consensus was for 1.359 million, down from 1.401 million in November (revised from 1.427 million).
190,000 jobless claims were recorded last week in the United States, compared with a consensus of 214,000 after 205,000 the previous week.
The values to follow today
Pennsylvania-based aluminum producer Alcoa said it lost $374 million, or $2.12 per share, in the fourth quarter, compared with a loss of $392 million a year before. Alcoa’s total revenue from third parties decreased 7% from the prior quarter to $2.7 billion, primarily due to lower alumina and aluminum prices, higher raw material costs (mainly caustic soda and carbon) and the sequential increase in production costs.
Chesapeake Energy Corporation
Chesapeake Energy Corporation announced yesterday that it has reached an agreement to sell its Eagle Ford asset in Texas’ Brazos Valley to WildFire Energy, a private investment firm, for $1.42 billion. Chesapeake has agreed to sell approximately 377,000 net acres and approximately 1,350 wells along with related property, plant and equipment. Average net daily production from these properties was approximately 27,700 barrels of oil equivalent during the third quarter of 2022.
General Electric and KUKE, the Polish Export Credit Agency (ECA), announced a strategic cooperation agreement in export financing worth €1 billion to help customers GE’s global markets to decarbonize the energy sector and increase electrification around the world. 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.
The sixth Global Positioning System III (GPS III) satellite designed and built by Lockheed Martin has been launched and is rocketing to operational orbit approximately 12,550 miles above Earth, where it will contribute to the ongoing modernization of the US Space Force’s GPS constellation. The GPS III Space Vehicle 06 (GPS III SV06) launched from the Cape Canaveral, Florida space station aboard a SpaceX Falcon 9 rocket at 7:24 a.m. yesterday. GPS III SV06 is the 25th military-coded satellite introduced into the constellation.