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In the absence of sharp macroeconomic data on Monday, and while awaiting American consumer price indices (1:30 p.m. this Tuesday), the CAC 40 index timidly began a consolidation, below its recent historical records, managing to save the symbolic threshold of 8,000 points, at the end of a session marked by a decline in tech. Thalès (-1.78%), Alten (-3.46%), Soitec (-2.37%) and even Wordline (-4.18%) fell after the start of a breather on NVidia.
A correction movement is taking place in the American semiconductor sector. Nothing that fundamentally calls into question the trend bullish on this key sector. But it is clear that almost vertical upward movements like that which NVidia has given us (-5.55% Friday) since the start of the year are untenable over time. In the wake of this correction in this stock, which has become the favorite of individual investors ahead of Tesla, the Philadelphia Semiconductor index fell by 4%, erasing all of the week’s gains.
“I’m not sure $250 billion has ever been wiped out of a stock in 3 hours. That’s what happened to Nvidia on Friday: the stock went from up about +5% to a drop of -6.5% intraday before closing at -5.55%,” underlines Jim Reid of Deutsche Bank.
Marvell Technology (-11.36%) and Broadcom (-6.99%) published disappointing results. In this bad wake, Texas Instruments (-1.69%), Qualcomm, (-2.93%) and Intel (-4.66%) suffered. Investors will have a close eye on other heavyweights in the sector in Asia (Japan, South Korea, Taiwan).
It was deserted in terms of macroeconomic figures this Monday, and operators will wait until tomorrow, 2:30 p.m., to have a sharp benchmark, namely the consumer price index (CPI). The opportunity to further refine the return trajectory of price dynamics to the theoretical objective of 2%. On Friday, investors were reassured by the latest official American employment figures. The salary component was appreciated since the increase in salaries last month was more moderate than expected.
On the values side, in addition to the variations on the representatives of the technology sector cited above, a few issues attracted attention on Monday. SMCP benefited from support from its staff. The stock rebounded by 8.2% after company executives purchased securities on the market, which sends a positive signal about the future of the stock which has suffered greatly from inflationary pressures. Sanofi nibbled 0.7%, the action being slightly supported by positive results of a phase II clinical study evaluating one of its future blockbusters whose sales potential is estimated at more than 5 billion euros at cruising speed by the pharmaceutical group. Believe rose 1.3%, while Stifel now expects a stock market battle after Warner Music Group’s expressions of interest in the French music publishing group.
On the other side of the Atlantic, the main equity indices ended the first session of the week in mixed order, like the Dow Jones (+0.12% to 38,769 points) and the Nasdaq Composite ( -0.41% to 16,019 points). The S&P500, the reference barometer of risk appetite in the eyes of fund managers, ended at levels close to balance (-0.11% to 5,117 points).
An update on other risky asset classes: around 8 a.m. this morning on the foreign exchange market, the single currency was trading at a level close to $1.0940. The barrel of WTI, one of the barometers of the appetite for risk on the financial markets, was trading around $77.80.
On the agenda this Tuesday, to follow as a priority the consumer price indices in the United States. CPIs are expected at an annualized rate of +3.1%, in the broadest base of products, that is to say food and energy included.
KEY GRAPHIC ELEMENTS
The passing of the symbolic 8,000 points, as significant as it was, was not followed the next day by a bullish extension, and the volumes were relatively timid. The option of consolidation under these recent zeniths remains relevant, without in any way calling into question or doubting the power of trend initial.
FORECAST
Considering the key graphical factors that we have identified, our opinion is neutral on the CAC 40 index in the short term.
We will take care to note that crossing 9000.00 points would revive the buying tension. While a break of 7700.00 points would restart the selling pressure.
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