Pre-Employment Jitters Cause Wall Street Pullback: AOF Analysis

(AOF) – American equity markets have closed in the red. The indices are penalized by the announcement of job creations in the private sector much higher than expected in December. This statistic goes in the direction of a Fed which will long maintain high interest rates. Several statistics are expected this Friday, including the monthly employment report in the United States. On the values side, Amazon, which will remove more than 18,000 jobs, sold 2.37%. The Dow Jones lost 1.02% to 32,930 points while the NASDAQ bent at 1.47% to 10,305 points.

Amazon has announced the most important job cuts in its history, joining the cohort of technological companies that have reduced the sail in order to take into account a less promising economic environment. This “cart” did not prevent the action of the cybermarchand and the cloud specialist from falling from 2.37% to 83.12 dollars. After the announcement yesterday by Salesforce of its desire to reduce by 10% of its workforce, Amazon will suppress more than 18,000 positions, some of which in Europe, mainly in the support functions.

Economic Figures of The Day

235,000 positions were created in the private sector in the United States in December, according to the ADP survey. 150,000 creations were expected, according to consensus, after 127,000 in November.

The private sector has contracted less than an initially announced in December in the United States, said S&P Global. The index of composite purchasing directors, which takes into account the manufacturing sectors and services emerged at 45. It had been 44.6 in the first estimate and economists anticipated its confirmation. It was 46.4 in November. At the same time, the PMI for services increased from 46.2 to 44.7. It had been 44.4 in the first estimate and economists anticipated its confirmation.

The United States has recorded a commercial deficit of $ 61.50 billion in November, much lower than expected: $ 73 billion. He had reached $ 77.80 billion in October.

204,000 unemployment registrations were registered last week in the United States, to compare with a consensus of 225,000 after 223,000 the previous week, revised figure of 225,000.

The Values to Follow Today

1. Amazon

Effective reduction programs accumulate in the technological sector. After the announcement yesterday by SalesForce of its desire to reduce by 10% of its workforce, Amazon will suppress more than 18,000 positions, some of which in Europe, the largest reduction in positions in its history. “Amazon has gone through uncertain and difficult savings in the past, and we will continue to do so,” said its general manager Andy Jassy.

2. Baker Hughes

Baker Hughes, an American parapetrol company, obtained a contract to provide carbon dioxide (CO2) compression equipment to the carbon capture and sequestration project (CSC) Kasawari in Petronas Carigali in Sarawak in Malaysia. This project should be the largest offshore installation of CSC in the world, with a capacity to reduce CO2 emissions of 3.3 million tonnes per year. Baker Hughes will provide a state -of -the -art compression solution with reduced size and weight.

3. Western Digital

The manufacturer of IT storage products Western Digital has revived negotiations with Japanese company Kioxia Holdings Corp. In view of a rapprochement, says Bloomberg quoting people close to the file. Current discussions, which resumed at the end of last year, are only at the initial stage and could also end without agreement, these people said. Discussions in 2021 between the two groups had failed. The two companies have a co-company that manufactures flash memories.

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