Last week, US stock markets were suffering from the rekindling of Sino-American tensions. This situation weighed heavily in the balance causing uncertainty in the values of the whole week. However, the U.S. stock market closed in the green last Friday. The deconfinement that has slowly begun on all continents has given hope to the financial world. As a result, the economic recovery on Wall Street is positive at the beginning of this week.
President Trump has carried out his threats. Restrictions were therefore applied to Huawei on its supply of chips. This added fuel to an already burning fire. The semiconductor industry was then hit hard. The semiconductor industry suffered the brunt of this. Indeed, even if it is not the drama everywhere as expected, the economic statistics have seen a sharp deterioration. The Dow Jones jumped 0.25% to 23,685.42 points. The Nasdaq rose by 0.79%.
To justify these restrictions on Huawei, the U.S. Office of Information Technology and Security (BIS), in an announcement, says it wants to protect U.S. national security. The Chinese telecommunications giant and its subsidiary HiSilicon are now limited in their ability to use U.S. technology and software to design and manufacture semiconductors overseas. The BIS adds: " Cette announces an end to Huawei's efforts to undermine US controls at exportation ".
This May, the University of Michigan's household confidence index is announced at 73.7 instead of 71.8 last April. The consensus is 68. As for industrial production, it has seen its biggest drop in its 101-year history. In fact, it fell by 11.2% in the United States. However, it had already fallen by 4.5% in March, a revised figure of -5.4%.
The capacity utilisation rate is now 64 % compared to 73,2 % last month. The market forecast was 64%. The New York Fed Manufacturing Index came out at -48.5 in May versus -78.2 in April and a consensus of -63.5. As for retail sales in the United States, the figures fell by 16.4% after a decline that was already in the order of 8.3% in March. The Reuters consensus is -12%. They fell by 17.2%, excluding automobiles, while the consensus Briefing was -8.2%.
ABBOTT: The COVID-19 serological test detects the virus in 5 minutes. It is used daily throughout the United States. However, the result is not 100% accurate. The FDA will have to investigate this even though ABBOTT recalls that its test accurately detected more than 90% of infections.
APPLIED MATERIALS: the American semiconductor equipment manufacturer has announced some of its values. These include its 13% growth and net income of $755 million or 82 cents per share. Its sales rose 12% to $3.96 billion, compared with market estimates of $4.09 billion.
JD.COM: it announces figures above analysts' estimates. For example, its turnover is 20.6 billion instead of the forecast of 19.3 billion. Its first quarter 2020 adjusted earnings per share is 28 cents, above the FactSet consensus of 10 cents.