(Boursier.com) — u.s. markets finished slightly lower on Monday. At the dawn of the 3rd week of the presidency of Donald Trump, a doubt emerges about the positive impact that was initially expected of its economic policies. The priorities displayed by the new american president seemed, for the moment, focus more on anti-immigration, and protectionism, as to the tax cuts and the implementation of a stimulus program, expected by the financial markets.
Monday, the Dow Jones index was down 0.09% to 20.052 points in closing, while the broad index S&P 500 has yielded 0.21 per cent to 2.292 points and the Nasdaq Composite dipped 0.06% to 5.663 pts. Last week, the three indices had posted a quasi-stability, with variations of less than 0.1%.
The dollar has resumed the height against the euro, it has lost 0.3% to 1,0752$ on a background of political uncertainties in Europe and Mario Draghi’s declarations, but against the yen, the greenback was down 0.8% (111,7 yen/$ ). On the bond markets, the yield on the T-Bond 10-year was down 5 basis points on Monday to 2.42%, whereas in Europe, most of the rates are tense on Monday. Gold rose to its highest level since November, gaining 1.3% and the ounce at 1.237$ (contract to end of April), while the WTI has lost 1,52%, 53,01 per barrel (contract to end of march).
The White House is blowing so hot and cold on the markets. On the geopolitical plane, Donald Trump has upped the tension with Iran (after the firing test of a missile by Tehran), but also with Mexico and Australia in the field of immigration. The decree anti-immigration (blocked since Friday by the justice US) concern of many companies, including Goldman Sachs, Facebook or Starbucks, who spoke out publicly against this decree which may tarnish their image and limit their ability to employ foreigners. Friday, Donald Trump has signed a decree paving the way for an easing of the financial regulations put in place after the great crisis of 2008, which has ignited the ongoing u.s. banks on Friday. But this “rally” has not continued Monday, the course of major banks being tilted in slight decline.
Goldman Sachs displays his doubts on the positive effects of the policy of Donald Trump
The bank Goldman Sachs (-0,4%) released on Friday a report detailing his concerns regarding the administration Trump. “After the election, the sentiment is turning positive among investors, business and consumers. They felt that the likelihood of cuts and fiscal easing regulatory was higher than the probability of restrictions on world trade and on immigration,” noted the economists of the bank’s business. But now, in view of the first announcements of the administration to Trump, “this balance of risk has become a little less positive,” he added.
The boss of Goldman Sachs, Lloyd Blankfein, has been one of the most biting criticism of the decree’s anti-immigration taken by Trump. “This is not a policy that we support and I (you) will point out that it has already been challenged in federal court,” he said in an internal message.
note that, in forming his cabinet, Donald Trump was surrounded by several ex-bankers from Goldman Sachs, Gary Cohn, number two GS, then hired to become the director of the national economic Council (NEC) of the american presidency. Steven Mnuchin, the new secretary of the Treasury, is also a former officer of the bank, and Anthony Scaramucci, one of the advisors of the Trump, has also been an employee at GS before you direct a “hedge fund”.
Benefits : 65% of companies who have posted so far have done better than expected
on The business side, not less than 84 companies in the S&P 500 publish this week their quarterly figures, including many groups of media and entertainment, as well as the values of consumption. The kick off was given on Monday, including 21stCentury Fox, Hasbro, Sysco and Tyson Foods and Loews. Will follow on Tuesday, Walt Disney, Take-Two Interactive, General Motors, Michael Kors, Mondelez and Gilead Sciences. On Wednesday, it will be the turn of LionsGate, Time Warner, Goodyear Tire, Yum! Brands, Whole Foods Market, Allergan and GlaxoSmithKline. A new big day of announcements on Thursday, with Activision Blizzard, Expedia, News Corp , Nvidia, Viacom, Yelp, Zynga, Twitter, not to mention Coca-Cola, the Dunkin’ Brands, Kellogg and Western Union.
Has the date of 3 February, 55% of companies in the S&P 500 had published their quarterly. 65% of them have done better than expected in terms of profit, while 52% have beaten the consensus for revenue, according to the firm Factset. For now, profits have increased by an average of 4.6% compared to the same period of 2015, according to Factset. According to Thomson Reuters data, earnings for the 4th quarter are forecast to increase 8% at the end of the season results.
on Monday, the markets have welcomed the figures published by the giant of the toy Hasbro (+14%), whose profits have exceeded expectations in the 4th quarter of 2016. Profits have reached 192,7 Million ($ 1.52 per share), compared to 175,8 Million ($ 1.39 to$ per share) a year before. The adjusted eps spring to 1.64$ while analysts had been pencilling in with$ 1.27 .
On the other hand, the other results of the day were somewhat disappointed, casting doubt on the appetite for consumption of Americans. In the agri-food industry, the securities of Sysco (2.5%) and Tyson Foods (-3,4%) have suffered, while the group of consumer products Newell Brands fell 5.7%. The course of the insurer Loews (-0,24%) declined slightly, despite the announcement of a return to profit in the 4th quarter.
Finally, the course of the jeweler Tiffany (-2,4%) suffered from the announcement of the immediate departure of its general manager, Frederic Cumenal. Michael J. Kowalski, Chairman and former CEO, now holds the position of CEO in an acting capacity, pending the recruitment of a new boss. Tiffany has also confirmed its annual objectives. The quarterly results of the group will be published on the 17th of march next. Frederic Cumenal, a former executive of LVMH, had joined Tiffany in 2011 before becoming ceo in April 2015.
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