The Trump rally faded before it even started, but its place was taken by Apple Time. Yesterday, for the first time, Apple stock closed the session with a market capitalization of more than 800 billion dollars (802,46 billion), dragging the S&P 500 index beyond the barrier of 2.400 points (2,403,87). The advance of the Apple is not isolated. The quarterly season, now at an end, has exalted the growth of profits in the tech and energy sectors, clearly advanced compared to the lows of a year ago.
For the first time in six years, profits grew by double digits (+13,3%), justifying the appreciation of the price lists under the push of that new economy which seemed destined to fade into the background in Trump's America. But the president's promises, from taxes to financial deregulation, no longer enchant the market, while one of Trump's loyalists, billionaire Wilbur Ross, promoted to head of Commerce, warns that "it will take years" to achieve the growth goal by 3%, less than the 4% heralded by Trump.
The economy, at least for now, prevails over politics: Emmanuel Macron's affirmation has made the risk of a euro crisis disappear, the success in the Korean presidential elections of Moon Jae-in, son of an exile from the North, a lawyer in causes for civil rights and in favor of a settlement with Pyongyang, displaces the aggressive policy of the US administration, which is now grappling with the crisis triggered by the dismissal of the head of the FBI, James Comey. The road to Taurus seems paved, even if Lloyd Blankfein, number one at Goldman Sachs, and Jeff Gundlach, guru of Double Line, warn: too much euphoria is dangerous.
HOLD DOLLAR AFTER EARTHQUAKE AT FBI, DOWN JUST SEOUL
Also in Asia, good company results favor the upside. Tokyo rises (+0,2%) awaiting Toyota's balance sheet. Hong Kong's Hang Seng index rose by 0,8%. Shanghai +0,3%. The Seoul Stock Exchange fell (Kospi index -0,9%) the day after the presidential victory of the favorite candidate, Moon Jae in. But there are also nuclear fears of a resumption of missile tests by North Korea: yesterday the Korean ambassador in London said that they could restart at any moment.
Meanwhile, the Mumbai Stock Exchange is preparing to celebrate the new historical record: the Bse Sensex index is up by 0,8%, one step away from the maximum. The dollar lost a few shots this morning after the surprise firing of James Comey from the FBI a few days after his testimony to Congress on Russiagate.
WALT DISNEY ACCOUNTS DISAPPOINT
US stocks held back at the end, after the S&P 500 had set a new record: the Dow Jones index fell by 0,17%, S&P 500 -013% (closing at 2.396,92). Nasdaq +0,29%, pushed by Apple, reaches a new record: 6.120,59 points. Also in evidence is Valeant (+24%), the pharmaceutical company back to profit after six quarters in the red.
The video game giant Electronics Arts also performed well (+3,9% after the accounts). Disney communicated the data for the quarter on a closed market: the revenues of the TV division were lower than expected, the title yesterday evening in the after hours marked a fall of 3%.
OIL IN DROP, BUT ENI SHINES ON THE EVE OF ACCOUNTS
Oil (Brent at 49,03 dollars) rebounded this morning after the Saudi Aramco communicated that sales to Asian customers will be cut by 7 million barrels. The OPEC price summit will be held on May 25 in Vienna. This afternoon, data on US crude inventories will be released: the consensus expects a decline of two million barrels, the fifth consecutive week of decline. Preliminary indications provided by the American Petroleum Association speak of a much wider drop, around five million barrels.
The energy sector was weak on Wall Street (-0,8%). Chevrons -1,5%. Eni up sharply in Piazza Affari (+1%) on the eve of today's accounts: Banca Akros remains positive on the stock (buy, target price 18 euros) since it expects accounts to grow compared to the same period of the previous year. Slightly positive Saipem (+0,1%) and Tenaris (+0,1%).
EUROPEAN STOCK EXCHANGES, WEAK START SIGHT. TODAY THE AUCTION BOT
Expect a weak start this morning for the European stock exchanges in a day full of corporate events. Worth noting is the report by the Bank of Italy on the subject of bank non-performing loans. At the end of the morning, the European indices yesterday reached their highest levels in 21 months, driven by a wave of positive quarterly results. Then, starting with the banks, there was a course correction which, except in Spain, did not cancel the plus sign. In Milan, the Ftse Mib index closed the session slightly up with +0,27% to 21.486 points, consolidating on current levels. The European context is also in tune: London +0,57%; Frankfurt +0,43%; Paris +0,28%. In red only Madrid (-0,42%).
Sales on BTPs prevail in anticipation of Treasury auctions. But the same is true for Bunds, so that the differential remains almost unchanged: the gap between Italian and German ten-year yields is indicated at 184 (against 183).
Today the Ministry of the Economy offers 6,5 billion BOTs annually, the same amount as the one due to expire. Tomorrow will be the turn of medium-long term bonds. Up to 7,25 billion BTPs will be auctioned: the reopenings of the three-, seven- and thirty-year benchmarks together with an 'off-the-run' deadline of September 2044.
Next week the placement of the new Btp Italia intended for the retail public will take place. The minimum guaranteed coupon of the May 2023 bond indexed to national inflation will be announced on Friday 12. After the week dedicated to the placement of the BTP Italia, it could be time for the launch of a new thirty-year bond that has been talked about for weeks.
On the Mts gray market, the Buono of 14 May 2018 was traded in the afternoon at a negative yield of 0,274% against the -0,239% of the placement in mid-April.
THE BANKS BRAKE IN THE FINAL. RAIN OF BUY FOR BANCA GENERALI
The banking sector, together with the automotive sector, is the only one to have recorded a closure in negative territory (-0,3% for the European basket, -0,6% for the Italian one). Rise eliminated in the final for the German Commerzbank, which closed the session unchanged after having recorded gains of more than 3% on the push of results higher than expected (profit +28%). In Paris, Société Générale falls back in the final -1,8%.
In Piazza Affari Unicredit went from a 1,8% gain to a 0,6% decrease. The institute was the involuntary protagonist of the political yellow of the day. Ferruccio De Bortoli, in his book "Powers strong (or almost). Memories of over forty years of journalism” reports that in 2015 the then Minister for Reforms, Maria Elena Boschi, whose father was vice president of Banca Etruria, “asked the then CEO of UniCredit, Federico Ghizzoni, to evaluate a possible acquisition of the aretina bank”. Boschi's denial was immediate.
Intesa limits the decline to a modest -0,1%. On the contrary, Banco Bpm sinks (-5%). Ubi -1,9%.
In asset management, it takes off after Banca Generali accounts (+3,95%). The quarter closed with total assets of 50,1 billion euro (+18%), brokerage margin of 134,7 million (+42%) and a net profit of 56,2 million, up 91%. Results that the managing director Gian Maria Mossa defines as "to be framed for the strength and quality of the numbers". Azimuth +1,6%.
Partial disappointment however for Banca Mediolanum (-0,70%). The accounts for the quarter close with a consolidated net profit of €84,9 million, up 16% compared to the result for the same period of 2016. Insurance companies advance: Generali +0,3%, Unipol +0,2%, UnipolSai +1,1%.
REVENUES AND PATENT BOX MAKE CAMPARI FLY
Exceptional performance by Campari (+4,43%). The first quarter ended with revenues up 15%. Excluding the exchange rate effect, which led to a 2,7% increase in revenues, and excluding the acquisitions (+6,6%), it remains that the organic growth in sales was equal to +5,4%, almost two times the waits. The results, combined with the tax benefits deriving from the "Patent Box" not included in the analysts' estimates, gave wings to the stock which reached a new all-time high of 6,14 euros.
MORGAN STANLEY CHARGES FERRARI
In the automotive sector, Brembo (+1,5%) and Ferrari (+3,6%) shine. After the quarterly accounts, Morgan Stanley raised the target price on the stock from 72 to 100 dollars, confirming the overweigh recommendation. Fiat-Chrysler -0,2%.
Outside the main basket, Pininfarina celebrated the announcement of an agreement in Iran with a rise of 3,9%. Atlantia closes down by 0,1%: according to the Spanish newspaper El Confidencial, in a few days it will present an offer for Abertis at 16 euros per share. Positive Autogrill (+1,7%).
The utilities contrasted: Enel slipped by 0,3%, Terna positive (+0,6%) and A2A (+0,2%).
Rcs +3,55% after the publication of the first quarter 2017 results. The group recorded an improvement on the net loss front which stood at 5,7 million and also confirmed its full-year targets.
