Sticky markets | Calamatta Cuschieri

U.S. stocks closed lower Thursday with the Dow ending a seven-day win streak on worries over a possible delay in much-anticipated corporate tax cut. However, main indexes trimmed losses after the House Ways and Committee approved a bill to overhaul the tax code, setting up a vote by the full House. The tax bill written by House Republicans would boost the U.S. deficit by $300 billion more than lawmakers estimated, the Congressional Budget Office said Wednesday.

European markets also drifted lower, as an early selloff gathered pace in the afternoon after U.S. stocks opened in the red. There were big moves in stock prices for certain companies reporting results, including for Burberry Group PLC, whose shares tumbled. Germany’s DAX 30 index closed 1.5% lower at 13,182.56, while France’s CAC 40 gave up 1.2% to 5,407.75. The U.K.’s FTSE 100 dropped 0.6% 7,484.10.

Nvdia earnings

Nvidia Corp. shares rose, after an earlier struggle for direction, in the extended session Thursday after the Santa Clara, Calif.-based graphic processing unit maker’s quarterly results and revenue outlook topped Wall Street estimates. The company reported third-quarter net income of $838 million, or $1.33 a share, compared with $542 million, or 83 cents a share, in the year-ago period. Revenue rose to $2.64 billion from $2 billion in the year-ago period. Analysts had estimated 95 cents a share on revenue of $2.36 billion.

For the fourth quarter, Nvidia estimates revenue of $2.65 billion, plus or minus 2 percentage points, or $2.6 billion to $2.7 billion. Analysts had forecast revenue of $2.44 billion. Nvidia shares were last up 2.4% at $210.21 on volume of more than 3.9 million shares after hours, following an earlier tradeoff between slight gains and losses after the report. That follows a 1.8% decline in the regular session. Recently, shares hit a record close of $212.03 on Tuesday.

Hertz revenues

Hertz Global on Thursday reported a better-than-expect net profit as higher revenues and revenue management offset canceled reservations in hurricane-impacted parts of the United States, but the car rental company warned it was entering a period of weak demand amid high investment. Revenue for the quarter rose 1 percent versus the same period in 2016, but rental car revenue in the United States fell 1 percent despite higher pricing.

Hertz said it had made progress in its turnaround plan, including reducing the size of its rental fleet. "We are entering a seasonally low period of demand at the same time that we are continuing to invest in the long-term growth of the company," Chief Executive Officer Kathryn Marinello said in a statement. "Expense always precedes benefit." The company's shares rose 12 percent in after-market trading following the results.

Disclaimer:

This article was issued by Peter Petrov, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.