A few constants remain, the first of which is the domination of technology stocks, despite their critics. In fact, the Nasdaq is one of the stars of the summer, with gains well above most other indexes since June 21. There is no need to recall the attraction that these stocks have had on investors for a decade. This attraction was reinforced by the March 2020 crash, which gave the sector unexpected defensive qualities, even though some of the companies that make up the sector had no idea when they would be able to generate their first dollar of profit. Or if that time would ever come.
Yesterday, while traditional US stocks were taking a nose dive on the back of numerous threats to growth, the Nasdaq was up slightly and set a new record. Since the financial crisis, the strategy of going long on the tech sector has been the most crowded bet on stock markets. Sometimes dethroned by passing fads, this strategy always ends up coming, causing a snowball effect on the valuation of technology assets.
In this universe, focus this morning on Apple's share price, which has recovered more than 20% in three months after having suffered some disaffection from investors at the beginning of the year. A new record was set last night. The stock is not particularly expensive, as it is priced at less than 28 times the expected results in 2022, which is just below the valuation of LVMH (29 times) and exactly half that of Hermès (56 times). Apple remains a must-have for many investors, seduced by the qualities of the business model and by the results trajectories carefully calibrated through share buybacks. The company is due to announce its new products on September 14 in one of those exasperating ceremonies celebrating products that, while remaining highly qualitative, no longer reach the 2000s levels of technological breakthrough. This does not prevent Apple from improving its results and investors from continuing to praise this stock market aristocrat.
Economic highlights of the day:
The JOLTS survey on job creation in the US in July is due later today. John Williams, one of the Fed members, will also give a public speech that could bring some elements on the future monetary policy of the central bank... or not. Earlier today, Japan revised its final Q2 GDP reading slightly higher.
The dollar is up to EUR 0.8457. The ounce of gold is now under USD 1,800. Oil is up to USD 72.54 for Brent and USD 69.32 for WTI. Sovereign debt yields are on the rise, at 1.36% for the 10-year T-Bond and -0.32% for the Bund. The French OAT has moved back into positive territory. After a severe correction yesterday, Bitcoin is trading in the USD 47,000 area.
* Tesla sold 44,264 cars made in China in August, including 31,379 for export, show figures released Wednesday by the China Passenger Car Association (CPCA).
* PayPal - The payment technology group announced the acquisition of Japanese fractional payment specialist Paidy for $2.7 billion (about €2.28 billion).
* Coinbase was losing about 2.5% in early pre-market trading. The cryptoasset exchange platform announced that the Securities and Exchange Commission (SEC) had warned it of a risk of lawsuits if it goes ahead with its plan to offer cryptocurrency lending services with interest.
* The Boeing Company - The board of the U.S. aircraft manufacturer may be targeted by a complaint from its shareholders after the two crashes suffered by 737 MAX aircraft that killed nearly 350 people, the Delaware state court ruled Tuesday. Ryanair also said it would wait a long time until Boeing lowers its fares before ordering the 737 MAX.
* ICU Medical has reached an agreement to buy its medical equipment business from Britain's Smiths Group for $2.4 billion, Smiths announced Wednesday, having previously completed the sale of the division to private equity group TA Associates for $2 billion.
* Kadmon - France's Sanofi announced that it had bought the U.S. biotech company for $1.9 billion.
* Blackrock - The Chinese subsidiary of the world's largest asset manager has established its first mutual fund in China, called BlackRock China New Horizon Mixed Securities Investment Fund, after raising 6.68 billion yuan (about $1 billion or $846 million) from more than 111,000 investors in a deal launched on Aug. 30.
* JP Morgan has agreed to take a 75 percent stake in Volkswagen's payment division ahead of the planned rollout of technology that will allow motorists to automatically pay for fuel or tolls.
* American Airlines - The pilots' union of the American airline has called for a strike in the coming weeks at the group's main hubs to protest against the working conditions of the staff.
- 888 Holdings: Jefferies remains Buy with a price target raised from GBP 460 to GBP 480.
- Adobe : Goldman Sachs raises PT to $735 From $665, maintains Buy rating
- Broadcom : Argus raises PT to $560 from $520, keeps Buy rating
- BT Group: Bernstein resumes Market Perform with a target of GBp 170.
- California Water Service : Evercore ISI adjusts PT to $50 From $40, maintains In Line rating
- Canadian National Railway : CIBC adjusts PT to CA$170 From CA$158, maintains Outperformer rating
- Chipotle Mexican Grill : Wedbush lifts PT to $2,150 From $1,800, keeps Outperform rating
- Delek US : Morgan Stanley starts coverage at Underweight with $20 price target
- DiscoverIE: Jefferies remains Hold with a target price raised from GBp 1085 to GBp 1190.
- Impel NeuroPharma : Guggenheim adjusts impel neuropharma pt to $50 from $32, maintains buy rating
- McAfee : UBS downgrades to neutral from buy, adjusts price target to $29 from $27
- monday.com ltd: Goldman Sachs lifts PT to $415 from $365, maintains Buy rating
- Moderna : Morgan Stanley adjusts moderna pt to $337 from $190, maintains equal weight rating
- Netflix : Evercore ISI lifts PT to $695 from $635, maintains Outperform rating
- Regeneron Pharmaceuticals : Morgan Stanley adjusts PT to $606 from $576, maintains Equal Weight rating
- Siemens energy : J.P. Morgan cut the recommendation on Siemens Energy AG to neutral from overweight. PT up 17% to 29 euros
- Unity Software : Goldman Sachs adjusts PT to $145 from $135, maintains Buy rating
- Universal Health: Goldman Sachs cut the recommendation on Universal Health Services Inc. Class B to sell from neutral. PT down 3.5% to $150
- Vodafone: Bernstein resumes tracking at Outperform, targeting GBp 155.