Before the bell: markets turn green

Wall Street sets new records, oil prices drop, and Alfen announces layoffs.

On Wall Street, the Nasdaq gained 0.9% yesterday. The S&P 500 posted a 0.8% increase, marking yet another record—the 46th this year. Oil prices fell by 4%, wiping out all the gains from last week. This is reflected in the share price of Occidental Petroleum (-1.6%). Tesla (+0.6%) managed to recover slightly from Friday’s setback, while Goldman Sachs rose 1.3% ahead of its quarterly earnings report to be released shortly. European stock markets also turned green. The Euro Stoxx 50 climbed 0.6%, with the day’s top performers being Adyen (+1.9%), UBS (+2.1%), and ASML (+2.8%). Airbus (+1.7%) once again benefited from the issues plaguing its U.S. competitor, Boeing (-1.3%). The luxury sector took a hit, with Kering (-3.8%) and LVMH (-2.3%) declining ahead of LVMH’s revenue report due to be published after markets close today. In the Bel20 (+0.6%), Solvay (+2.3%) and Argenx (+2.3%) performed well, while Umicore lost 2.3%.

This morning, the picture is mixed on Asian stock markets. In Japan, the Topix is up 1%, but in Hong Kong, the Hang Seng is down 1.3%. At 11:00 a.m., industrial production figures for the eurozone will be released, and at 6:00 p.m., LVMH will update its revenue figures. Today, Bank of America, Citigroup, Goldman Sachs, Johnson & Johnson, and UnitedHealth Group will also release their quarterly earnings.

AI back in demand

Nvidia (+2.4%) closed at a new record high yesterday. After a brief dip at the end of August, the stock has surged 34% since September 6. This popularity is driven by strong demand for the Blackwell chip, fueled by the expansion of artificial intelligence. However, there is a downside. It was revealed this morning that new export restrictions may be imposed on the most advanced AI chips. This time, the measures will also target the Middle East. Arab nations have long shown a strong appetite for artificial intelligence, and they have deep pockets, which has raised concerns for the U.S. government. If other countries gain an edge in this field, American national security could be at risk.

Rumor mill in full swing

A multi-billion-dollar deal may be in the works in the healthcare sector. Contact lens maker Bausch + Lomb could be taken private by private equity investors. Bausch + Lomb used to be part of Valeant Pharmaceuticals, later renamed Bausch Health, in an attempt to shed its bad reputation. For years, the Canadian-American company racked up debt to buy various drugs, only to raise their prices. As debts piled up and the company stopped investing in research and innovation, it was doomed to run into trouble. Things got so bad that the company was featured in an episode of Netflix’s Dirty Money. For years, the eye care division was the healthiest part of the company. Now, this activity is drawing interest from investment groups, although the company’s creditors are not keen on seeing the most profitable division leave.

Charging station manufacturer announces layoffs

This morning, Alfen reported disappointing revenue figures. The company does not expect improvement in the near future. The market remains weak, and revenue growth is expected to be limited. Orders for energy storage systems (batteries) are proving volatile. As a result, the management is announcing a new cost-cutting program, which will see 15% of the workforce lose their jobs. Alfen’s shareholders have also taken a hit. In July 2022, a share in the company was worth €113, but as of yesterday, it was down to just €13. This year alone, the stock has fallen by 78%.

Did you know…

that Tokyo Metro is going public next week? The IPO is expected to raise $2.3 billion, making it the largest IPO in Japan in six years.

This article was translated from Dutch and was originally published on Spaarvarkens.be.