What an eventful week for the financial markets! We've seen a flurry of record highs on Wall Street, thanks to tech stocks, and a 25 basis point cut in ECB key rates. Nevertheless, some profit-taking is taking place as the week draws to a close, following much better-than-expected job creation data just a few days before the Fed's rate verdict. The turmoil is set to continue in the coming sessions.
Weekly variations*
DOW JONES INDUST...
38945.97  +0.67%
Chart DOW JONES INDUST...
NASDAQ 100
19029.75  +2.66%
Chart NASDAQ 100
FTSE 100
8251.39  -0.29%
Chart FTSE 100
GOLD
2308.58$  -0.74%
Chart GOLD
WTI
75.33$  -2.22%
Chart WTI
EURO / US DOLLAR
1.08$  -0.41%
Chart EURO / US DOLLAR
This week's gainers and losers
Gainers:

Gamestop (+50%): The meme stock is still Roaring Kitty's favorite toy. The investor, whose real name is Keith Gill, unveiled his exposure to the group earlier this week and announced a new livestream this Friday, marking his big return to YouTube, which was enough to boost the stock. Beware, however, as this week the video game retailer unveiled disappointing quarterly results and confirmed its plan to issue several million new shares.

Smartsheet (+19%): The management and collaboration software specialist reported robust, better-than-expected quarterly results, with earnings almost doubling year-on-year. It also unveiled an encouraging outlook for the coming quarter and the year as a whole. In the wake of this, several analysts have raised their recommendation and target price for the stock. 

ARM (+14%), Nvidia (+9%), STMicroelectronics (+10%), ASML (+10%), Be Semiconductor (+9%): Nvidia, the queen of A-linked stocks, continues to be the locomotive of the sector. Buoyed by its promising outlook and latest announcements (new generation of chips, partnerships, human avatars...), the processor manufacturer passed the symbolic $3,000 billion market capitalization mark this week. The smaller European players are also benefiting from their own news and collaborations (ASML's delivery of a next-generation chip manufacturing machine to TSMC, updates at BE Semiconductor, ARM's ambitions in PCs, a supply agreement with Geely for STMicroelectronics...). 

Legend biotech (+16%): Good news for the US biopharmaceutical company specializing in clinical phases. The group announced positive results for the phase 2 trial of its Carvykti treatment in people with multiple myeloma, as well as for a phase 3 trial in people with high-risk cytogenetics. It's worth noting that the US biotech sector is doing well this week. 

John Wood Group (+13%): The British oilfield services and engineering company has received a fourth takeover offer from the Sidara Group at 230 pence per share, for a valuation of around £1.58 billion. This latest proposal has been well received by the Board of Directors, which has announced that it will enter into discussions and provide the potential buyer with due diligence documents. However, this offer is lower than that made by Apollo Global Management last year, which was rejected. 

HP (+12%): The IT giant did better than expected. Buoyed by sustained demand for its artificial intelligence servers, it reported better-than-expected quarterly sales and earnings. Boosted by a solid order book for its AI systems segment, as well as for its hybrid cloud and data storage products, it raised its full-year guidance.

Saia (+10%): The transport and logistics services company reported higher volumes than forecast.  LTL shipments per working day in April and May were up 18%. LTL tonnage per working day gained 7.6% and 9.7% over the last two months. 

Losers:

Core & Main
(-18%): The US specialist in water distribution and drainage systems reports mixed results. Quarterly net sales were up by almost 11%, but earnings were down and missed the consensus. The Group, which is counting on recent acquisitions and expects demand to remain strong and offset deflation, has nevertheless raised its full-year forecasts, to the high end of its previous estimates.  

Hertz
(-14%): The car rental company continues to pay for the Tesla mistake. To strengthen its balance sheet after its failed foray into the electric vehicle sector, it plans to sell at least $700 million in secured debt and issue convertible bonds. It has also announced the departure of its CFO and COO. The stock has lost 64% since January 1. 

Five Below
(-12%): The discount retailer reported disappointing results, including sales and EPS that missed market expectations, weighed down by the difficult economic environment. Operating profit also fell by almost 15%, due to an unexpected legal expense, and very timid forecasts finally discouraged investors. The stock has lost almost 43% since the beginning of the year. 

GSK
(-8%): Despite announcing positive results for its multiple myeloma drug, the British biopharma folded in the face of an unfavorable court ruling in the case of Zantac, a heartburn drug accused of being carcinogenic and whose sale has been suspended. A US judge has authorized the filing of 70,000 lawsuits against GSK. The company has announced that it will appeal. 


Chart Commodities
Commodities
Despite a slight upturn at the end of the week, enabling Brent crude to return to the USD 80 price level, oil suffered. OPEC+'s decision to pave the way, by the end of the year, for an easing of production cuts, put the black gold under pressure. The European gas market was marked by high volatility. Dutch TTF futures jumped over 10% following a fault on the Langeled pipeline linking Norway to the UK. The disruption highlighted Europe's dependence on Norwegian supplies, exacerbating fears of price volatility.
In agricultural commodities, cocoa rebounded by 5%, after its recent consolidation. Cotton and soybean prices came under pressure, while wheat stabilized. Precious metals lost ground early in the week, before rebounding later. The ounce of gold even recovered 1.5% on the weekly sequence.
The week's biggest swings were in industrial metals. Fears over global growth, following a series of lower-than-expected indicators in the USA, weighed heavily on nickel (-9%) and zinc (-6%) prices. Copper prices in London headed for a third weekly fall, dropping below the symbolic level of USD 10,000 per tonne. China's trade data, with encouraging exports overshadowed by weak imports, helped maintain copper's bearish trend.
Chart Commodities
Macroeconomics
Atmosphere: Everything and its opposite. Investors seem to be struggling with the accumulation of contradictory economic data. At the start of the week, the US ISM manufacturing index was still in contraction territory at 48.7, while the services index held steady at 53.8. Rates thus eased sharply on the prospect of a return to easy money. Whether this was due to falling inflation or growing fears about US growth remains to be seen. Friday's release of the monthly US employment report set the record straight. Non-farm payrolls were much stronger than expected. As a result, bond yields rebounded sharply from the 4.33% level, pushing equity indices down and the dollar up. Against this backdrop, Jerome Powell's speech at next Wednesday's Monetary Policy Committee meeting will be particularly closely watched.

Crypto: Another week of massive positive net inflows into Bitcoin Spot ETFs in the USA. No less than $2.18 billion have been recorded in these exchange products since Monday. These flows have largely enabled bitcoin (BTC) to jump 5% to around $71,300. However, this trend is not visible in ether (ETH), which has stabilized for another week at around $3,800. For its part, Binance Coin (BNB), the cryptocurrency of the essential exchange platform, reached a new all-time high of $704 this week. Despite the woes of its former head, Changpeng Zhao, BNB benefited from the influx of users to the Binance Launchpool, a service that allows users to stake their BNB to participate in the launch of new tokens on the platform. In exchange, depositors receive cryptocurrencies. This consolidates BNB as the fourth most valuable cryptocurrency on the market at $113 billion.
Historical Chart
It's all about AI and monetary policy
After the ECB this week, the Fed (Wednesday) and the Bank of Japan (Friday) will deliver their monetary policy decisions. In the US, the central bank's verdict will come after the publication of May's US inflation figures. There aren't many corporate results left to exploit, but investors will be looking to Oracle, Broadcom, and Adobe to help gauge the appetite for AI.
Things to read this week
US elections: the speculative madness of PoliFi tokens - Crypto RecapUS elections: the speculative madness of PoliFi tokens - Crypto Recap
Kraken, one of the leading cryptocurrency platforms, has just stepped into the world of the US elections by listing new PoliFi tokens on its Kraken Pro... Read more
In praise of momentumIn praise of momentum
When it comes to investing, there are a number of factors that can explain the outperformance of stocks that meet certain criteria. The most well-known factors... Read more
Contrarian: Should you play Apple before WWDC?Contrarian: Should you play Apple before WWDC?
The Worldwide Developers Conference presentation. Everyone is waiting for Apple to wake up in artificial intelligence. Read more
*The weekly movements of indexes and stocks displayed on the dashboard are related to the period ranging from the open on Monday to the sending time of this newsletter on Friday.
The weekly movements of commodities, precious metals and currencies displayed on the dashboard are related to a 7-day rolling period from Friday to Friday, until the sending time of this newsletter. These assets continue to quote on weekends.