The Paris Stock Exchange hesitated for a good part of the session, but the day ended very well for the Cac 40, up 0.34%, to 6,592.58 points, in a volume, admittedly, still skinny of 2.46 billion euros. Sufficient, in any case, to align a series of five progressions in a row and reach its levels of the month of April. In New York, the Dow Jones advance of 0.56% when the Nasdaq Composite loses 0.27%.
It all happened with the publication of the accounts of the two distributors Home Depot and walmart. They did not disappoint. The DIY and home improvement brand beat expectations at the end of June, with earnings per share of $5.05, against $4.94 expected, on revenue of 43.79 billion (43 .36 billion anticipated). A number of comparable stores, sales are up 5.8%, beyond the 4.9% target. If attendance fell a little further (467.4 million store visits, against 481.7 million a year earlier), the average ticket increased by 9%, to 90.02 dollars. Home Depot continues to aim for a 3% increase in sales this year for an increase of around 5% in earnings per share. The title gains more than 4%.
Home Depot items also essential?
” While inflation doesn’t explain all of the performance, it did help Home Depot’s numbersunderlines Neil Saunders of GlobalData, according to remarks relayed by AFP. It has been easier for The Home Depot than for other retailers to raise prices simply because it sells many items that people need for their renovation or repair projects (…) A large proportion of these products are essential and will be purchased regardless of their price. »
walmart climbed 5.4%. The world’s number one retailer also did better than expected, admittedly revised downwards at the end of July. Earnings per share amounted to 1.77 dollars (consensus: 1.62 dollars), for billings of 152.86 billion (150.81 billion). Growth was 6.5% at number of stores comparable to UNITED STATES, against 5.9% expected. The group still expects a decline of 9% to 11% in earnings per share this year.
Inevitable recession in Germany
The disappointment of the day came from Germany. The Cac 40 has also slowed down the pace with the publication, at 11 a.m., of the ZEW index of investor sentiment across the Rhine, which deteriorated more than expected in August, at -55.3 points, against -52.7 points expected by the consensus. This fuels the scenario of a slowdown in the already weak economic growth in the country, with the business survey adding that high inflation and the expected further increase in energy bills should weigh on consumption.
” German economic activity remained unchanged in the second quarter while most of the countries of the eurozone have grown quite rapidly with the boost of post-pandemic reopening. We believe German GDP will inevitably contract over the next three quarters as headwinds from rising energy prices and interest rates intensify », Analysis For Andrew Kenningham, of Capital Economics.
On the business side, Eramet rose 7.4%, the biggest rise in the SRD. The mining group BHP Billiton posted the biggest profit in its history at the end of June and will pay a record dividend. ArcelorMittal gained 3.1%.