Wall Street starts its week on a hesitant note, Friday’s good session is in the minds, we are making some gains on the front of technology stocks but the feeling seems to be improving. Volatility is falling slightly. Greed and fear have been fighting a pitched battle for some time, with the latter regularly taking over. Valuations have returned to historically acceptable levels and sentiment has recently deteriorated (within the small holder community) to levels more seen since the March 2020 covid low. the bulls regain momentum, but the bears, who had not been to such a party for a long time, do not admit defeat. Doubt persists in trading rooms about the state of the global economy. The economic statistics published yesterday in China are disappointing, while the index of manufacturing activity in New York State contracts in May, this was not expected. And as the Fed’s fight against inflation seems far from over, the risk that the Federal Reserve will slow down or even stop growth is on everyone’s minds. The financial world is also worried about the shortages which appear, as for example in India, which decides to keep its wheat for itself.

It is easy to understand that the indices dithered yesterday, to finally fall back at the end of the session. Technology stocks return a small part of the gains recorded on Friday, we find the behemoths of the rating in the first red line with Tesla which gives up 6%, penalized by the disastrous communication of its boss in the Twitter file. In this regard, this morning we learn that a hacker has found a way to unlock Tesla models as well as to start them. Let’s bet that Elon Musk will do everything to hire him… Let’s go back to our technological sheep with Apple which lost 1%, Amazon which fell by 2% and Nvidia which gave up 2.5%. When this team sneezes, the whole Nasdaq catches a cold and we know that a tree does not make a forest so patience dear bulls, patience… The S&P500 index (SPX) retreats slightly at the bell but manages to defend its level of 4,000 points, remember here that its true support is at 3815 points. Today’s SPX podium consists of Energy, Healthcare and Consumer Staples. Energy benefits from the rebound in oil, the barrel of WTI Light Crude returns to 113.77 dollars, its recent high is at 130.50 dollars. The market is pushing it north again, hopeful that China will relax its zero covid policy (which would more or less relax the whole planet in fact).

The bond market is echoing equities and expressing its fears about growth by pushing the yield on the US 10-year bond down to 2.88%, down to 2.91% this morning. The dollar relaxes a little and brings the EUR/USD pair back to 1.0457, an illustration of the improvement in general sentiment. The market will also have grain to grind today with retail sales for the month of April in the United States. In addition, Fed boss Jerome Powell speaks tonight at 8 p.m.

Several statistics in the United States, with retail sales (2:30 p.m.) and industrial production for April (3:15 p.m.), then the NAHB housing index for May and business stocks for March (4:00 p.m.).

BMW: Bernstein starts the outperformance follow-up aiming for 100 euros. Mercedes: Bernstein starts the outperformance follow-up by aiming for 85 euros. Porsche: Bernstein resumes underperformance tracking, aiming for 60 euros. Renault: Bernstein resumes monitoring at market performance, aiming for 25 euros. Roche: AlphaValue remains to be accumulated with a target reduced from 427 to 380 francs. Stellantis: Bernstein resumes market-based tracking. Volkswagen: Bernstein resumes market performance tracking, aiming for 208 euros. Berkshire Hathaway leaves Wells Fargo for Citigroup. Elon Musk believes that a deal to buy Twitter at a lower price than announced is not out of the question. JetBlue has launched a $3.3 billion hostile takeover bid for Spirit Airlines. Sonova raises its dividend after a good 2021/2022 financial year.

Tonight and this morning in Asia, the indices are all trading in the green. Tokyo rose 0.42% at the bell, Hong Kong gained 2.91%, Shanghai advanced 0.45% and Seoul won 0.92%. The SPX future recovers 0.5% and Europe opens up 0.9%.