Sales tripled for a turnover of 18,2 billion dollars, more than Wall Street's optimistic estimates. Profits are also taking off: 9,2 billion dollars in the third quarter compared to 680 million a year ago. Nvidia's accounts thus confirm the extraordinary potential of Artificial Intelligence, supported by the purchases of almost irreplaceable chips by Microsoft and Amazon.
Open Ai backtracks: Altman returns
Yet, despite these numbers, the stock of the company founded by Jen Hsun Huang moves downwards -1,7% in post-market trading. The reason? Today's accounts have a relative value because Nvidia it can't even supply its cutting-edge chips to customers, a situation that's set to last for quite some time. So, the focus is already on 2025 and what the company will be able to do to alleviate supply constraints and meet growing demand. Nvidia therefore risks being a victim of its own success, thanks to the stratospheric prices.
Confirming the concerns is the tragicomic crisis of Open Ai, the company that triggered the buying spree with the success of Chat GPT. Three days after the coup that led to the dismissal of Sam altman, then hired by Microsoft, the board of directors was forced to call him back into service to avoid a "brain drain", worried about the fate of the company but also about the collapse of the shares, which have already reached 90 billion dollars.
The Fed does not plan to cut rates
The financial markets are carefully following this race for the future, but they note that the current situation presents more than one unknown for the Bull. After the long rally, the publication of the minutes of the Fed confirmed that the US central bank needs to extend monetary tightening to bring inflation back to 2%. For this reason, it will be necessary to maintain it “for some time”. No indication emerges from the minutes on possible interest rate cuts.
The cold shower is felt this morning too Europe, while waiting for the publication of the minutes of the BC. Europe's stock markets are expected to open just below parity. EuroStoxx50 Futures +0,1%.
Milan -1,3%, held back by MPS
Yesterday the FtseMib index closed with a decline of 1,3% at 29.151 points, the day before it had reached its highest level since July. Piazza Affari suffered the impact of the fall of MPS (-7%) following the sale of 25% by the MEF which nevertheless confirmed the strong interest in our banks;
Attention to today's session: Enel, the most important Italian utility, presents its new industrial plan today. The stock is trading at its highest level in a year and a half.
Lagarde preaches prudence
All eyes focused today on the speeches of some exponents. Yesterday, President Christine Lagarde however warned against drawing hasty conclusions on the direction to take monetary policy, underlining that it is too early to declare victory on the issue of inflation.
Eurozone. Some ideas could come in the afternoon from the data on consumer confidence. The Reuters consensus expects a slight improvement in November to -17,6. The outcome of the elections must also be followed policies in the Netherlands after Mark Rutte's exit.
Also Wall Street yesterday abandoned the medium-term highs reached on Monday. Nasdaq -0,6%. US stock markets closed slightly lower, interrupting a positive streak of five increases. The FANG Plus index (-0,4%, 8.282), which brings together the ten big tech companies, felt some dizziness on the historic record of 8.330 points reached the previous session.
Euro/USD (1,09). The cross is moving away from yesterday's peak of 1,0965, the highest since mid-August, reached before the publication of the FED minutes. Sitting without panache for i US government bondsafter the FED minutes: ten-year US Treasury at 4,41%, two-year 4,88%. The macro data published yesterday also confirmed the "cooling" of the American economy. The Chicago Fed Index on national activity in October was worse than expected: -0,49 vs 0,0%. Existing home sales slowed in October: 3,79 million units vs 3,90 million. In percentage terms, -4,1% vs -1,5%. The MSCI World index (-0,2%, 2.999) slipped just below the psychological threshold of 3 thousand points regained the day before after two and a half months.
Bitcoin: billion-dollar fine for Binance
New twist in the world of cryptocurrencies Changpeng Zhao, the CEO of Binance, the world's largest cryptocurrency trading platform, has agreed to resign and plead guilty to violating US money laundering law. The agreement with the Department of Justice, writes the Wall Street Journal, could allow the company to continue operating. He personally will pay a $50 million fine and the company will pay another $4,3 billion.
The truce in Gaza does not move oil
Oil just above yesterday morning's prices, Brent around 87/88 dollars. The truce between Hamas and Israel slightly eases geopolitical tensions. The market expects OPEC Plus to decide to extend the cuts or add more at their summit on November 26th. However, even if it simply extended the cuts into next year, the global oil market would remain in slight oversupply in 2024, according to the International Energy Agency (IEA). Meanwhile, U.S. crude inventories increased by nearly 9,1 million barrels in the week ending Nov. 17.
More coupons for Enel
Electricity day dominated by Enel data. The company presented the new industrial plan this morning. 2024 should close with Ebitda between 21,1 and 22,8 billion euros, more or less what analysts expected. In 2026 the gross margin should reach 23,6-24,3 billion. Investments are estimated at 35,8 billion euros, down 3% compared to the previous plan. The Debt/Ebitda ratio is expected to decline to 2,3 in 2026, from 2,4/2,5 pro forma expected for 2023. The new dividend policy provides for a minimum of 43 cents, which can be increased up to 70% of profit if cash flow neutrality is achieved.
Moody's promotes
BPM desk. Moody's raises the rating to Baa3. Snam, Acea, A2A, Poste Italiane, Cdp. After the confirmation of the rating on Italy's sovereign debt by Moody's and the change in the outlook from negative to stable, the US rating agency similarly modified the prospects of some Italian companies, mostly publicly held.
Unicredit . Amundi is evaluating the possibility of offering it better conditions in order to extend the distribution agreement that links the French asset manager to the Italian bank and its largest foreign market.
