growth will continue, with Walt Disney in the spotlight

(Boursier.com) — Wall Street will continue to rise early in the session, with the latest producer price readings supporting the fact that inflation is likely to have peaked in the United States, although it should remain high for many months to come. The producer price index in July decreased by 0.5% compared to the previous month, when the consensus was positioned at the level of +0.2%. Excluding food and energy, the index increased by 0.2% for the month and by 7.6% for the year. The levels are lower than the previous month and economists’ expectations.

Despite this lull on the inflation front, several officials — from hawk Neil Kashkari to dove Mary Daly — have left little doubt that the Fed will continue to tighten monetary policy until inflationary pressures subside for good. “Despite the Fed’s unflinching rhetoric, this release gave investors hope that the pace of U.S. interest rate hikes is slowing and that the fabled soft landing may be less elusive than expected,” Lewis Grant, head of global markets, told Bloomberg. shares of Federated Hermes. .

According to CME Group’s FedWatch barometer, the market now sees a 67.5% chance of a 50 basis point rate hike at the end of September, and a 32.5% chance of a 75 basis point rate hike (between 2.75% and 3%). . In bond markets, rates continue to decline on hopes that the Fed will be less restrictive at its next meeting. The yield on the 10-year U.S. note fell 2.5 basis points to 2.75%, while the yield on the two-year note, which is more sensitive to changes in the Fed’s rate, fell 7.8 basis points to 3.138%. The dollar lost another 0.4% against a basket of currencies.

US jobless claims rose less than expected last week. The US Department of Labor did announce that jobless claims reached 262,000 for the week ended August 6, up 14,000 from the previous week. Consensus was expecting 265,000 new registrations. The four-week average is 252,000, up 4,500. Finally, the number of jobless claims for the week ended July 30 reached 1.428 million, an increase of 8,000 in seven days (1.420 million consensus).

Bitcoin jumped 6.5% in 24 hours to $24,630 on Coindesk. Finally, WTI crude for September delivery is now up 1.2% at $93 on the Nymex, while gold is down 0.2% at $1,796 an ounce.

Values

* Waltz Disney surged on Wall Street last night on better-than-expected quarterly results, adding 14.4 million new Disney+ subscribers (vs. 9.8 million expected) and announcing a 38% price increase for ad-free access to Disney+ in December . As of the end of the third quarter, Walt Disney had a total of 221.1 million subscribers to its streaming platform, more than the recently announced Netflix, which lost customers during the last quarter. To attract new subscribers, Disney will offer an ad-supported Disney+ package for $7.99 per month in December, the same price it currently charges for the ad-free version. In December, the cost of access to the Hulu platform will increase by $1-$2 per month. The company expects Disney+ to become profitable in fiscal 2024.

However, the group lowered its long-term subscriber forecast for Disney+ customers due to the loss of cricket rights in India. Chief Financial Officer Christine McCarthy told investors on a conference call that the company now expects to have 135 million to 165 million “core” Disney+ customers and up to 80 million Disney+ customers. Disney+ Hotstar product in India by the end of FY 2024, maximum 245 million. The figure is lower than the 230-260 million previously estimated. In its fiscal third quarter, the entertainment industry giant reported adjusted earnings per share of $1.09 (consensus of 96 cents), up 36% from a year earlier, thanks to a recovery in attendance at its theme parks. Sales jumped 26% to $21.5 billion on strong park revenue growth and beat analysts’ expectations of $21.5 billion.

* Boeing on Wednesday delivered its first 787 Dreamliner since May 2021. American Airlines is the proud owner of this aircraft, which has faced numerous production issues in recent months. The US planemaker confirmed the resumption of deliveries after “extensive technical analysis, inspection and rework to ensure all aircraft meet Boeing’s strict specifications and regulatory requirements”.

Last month, the FAA approved Boeing’s inspection and modernization plan needed to meet certification standards. Deliveries of the Boeing jet were disrupted when problems first arose about two years ago, and were halted by the FAA in mid-2021 after Boeing engineers discovered other small flaws. The Seattle group has about 120,787 models awaiting delivery.

* Bumble down almost 10% on the eve of the session. The online dating app publisher revised its full-year profit forecast and posted lower-than-expected quarterly results.

* T-Mobile USA. Deutsche Telekomfirst shareholder T-Mobile USA with 48.5% of the capital, plans to become the majority shareholder long before 2024. The American operator, which accounts for three-fifths of the German group’s turnover, gained subscribers after merging with Sprint and rolling out 5G service. In the last quarter, T-Mobile acquired 1.7 million customers, bringing the total base to 110 million. DT CEO Timoteus Hettgas said the acquisition of a controlling stake in T-Mobile US is the group’s most important strategic project at the moment.

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