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Wall Street AOF Analysis – Strong Decline Despite Good Employment Figures

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(AOF) – Wall Street has ended in sharp decline, the good employment figures not even serving as a shock absorber. The United States created 273,000 jobs in February, far above the consensus. Investors continued to worry about the increasing number of coronavirus cases in Europe and the United States. Risk aversion brought the 10-year yield down to an all-time low of 0.66% versus more than 1% on Wednesday. In the absence of an OPEC + agreement, the barrel of oil has unscrewed. The Dow Jones lost 0.98% to 25,864.78 points and the Nasdaq Composite, 1.86% to 8,525.62 points.

Another victim of the Covid-19 was Starbucks (-1.12% to 75.34 dollars). The American coffee chain said Thursday evening that it expected a drop of about 50% in its comparable store sales in China during its second fiscal quarter 2020 (which will end in late March). Previously, the group expected growth of around + 3%. Starbucks estimates that the epidemic could cut revenue in China over that period from $ 400 million to $ 430 million.

Economic figures of the day

The United States created 273,000 jobs in February, more than the Reuters consensus amounting to 175,000. The January figure was revised from 225,000 to 273,000 and the December figure from 147,000 to 184,000. The rate unemployment emerged overall stable at 3.5% while the market was 3.6%. The January figure has been revised from 3.6% to 3.5%. Average hourly wages increased by 3% over one year, in line with expectations. It had increased 3.1% in January.

Wholesalers' stocks fell 0.4% in January in the United States after falling 0.3% in December. The consensus briefing amounted to -0.2%.

The United States registered a trade deficit of 45.3 billion dollars in January against 48.6 billion dollars in December, revised figure of 48.9 billion dollars. The Reuters consensus was -46.1 billion dollars.

The values ​​to follow today

APPLE

UBS confirmed its Buy recommendation and its target price of $ 355 on Apple. The design office believes that the risk of a short-term drop in demand increases. He moved part of the demand from March to June, but given the larger impact, he now thinks the negative impact on demand could continue into June. Broker cuts forecast for the quarter ended June from 2 million to 38 million past iPhones

COSTCO WHOLESALE

Costco Wholesale reported adjusted earnings per share of $ 2.10 in the second quarter of its fiscal year, above the FactSet consensus of $ 2.05. Sales for the same period were up 10.5% to $ 38.3 billion, slightly above analysts' forecast of $ 38.2 billion. The warehouse chain added that consumer concerns over the coronavirus had resulted in a surge in purchases of essential items.

JPMORGAN

JPMorgan chief executive officer James Dimon was recovering from hospital after an emergency heart operation on Thursday, American press reported. James Dimon is awake, alert, and recovering well, according to a note to bank employees, which the Wall Street Journal has learned about.

STARBUCKS

Starbucks is another victim of the Covid-19. The American coffee chain said Thursday evening that it expects sales of comparable store sales in China to drop by around 50% in its second fiscal quarter 2020 (which will end in late March). Previously, the group expected growth of around + 3%. Starbucks estimates the epidemic could cut revenue in China over that period from $ 400 million to $ 430 million.

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