Rebounding markets | Calamatta Cuschieri

Market overview

US markets closed higher Tuesday as President Donald Trump signalled that his nation is ready to reach a deal to ease trade tensions with China, giving the market some much-needed relief. The Dow Jones Industrial Average rose 431.72 points, or 1.8% on choppy trading to close at 24,874.64, a day after the index staged an ugly reversal which saw triple digit losses. The S&P 500 index gained 41.38 points, or 1.6%, to end at 2,682.63 and the Nasdaq Composite Index climbed 111.36 points, or 1.6%, reaching 7,161.65.

European markets meanwhile ended around the flatline, as a mixed bag corporate earnings and disappointing Eurozone economic data weighed on major bourses. The Stoxx Europe 600 edged less than 0.1% higher to close at to 355.53, after gaining 0.9% on Monday. Germany’s DAX 30 fell 0.4% to end at 11,287.39 whilst the UK’s FTSE 100 finished 0.1% higher at 7,035.85. Most indexes are set to record losses for the month of October.

Apple’s product refresh

Apple Inc refreshed some of its lesser-known products at a New York event on Tuesday, adding iPhone features like facial recognition to the iPad Pro and faster processors and better displays to some Mac computers that had gone years without a major update. The Cupertino, California, company introduced new versions of the iPad Pro with thinner bezels and more screen space, along with the face unlock system found on Apple’s newer iPhones.

Apple unveiled the updates at an opera house at the Brooklyn Academy of Music, calling the venue a haven for creative activity. The company has been working to win back professionals like graphic designers targeted by Microsoft with its Surface tablets, which have gained market share this year. Apple shares last traded nearly flat at $212.39.

Facebook betting on videos

Facebook Inc. Chief Executive Officer Mark Zuckerberg is betting the company’s future on video and disappearing posts called "stories," not the company’s famous news feed and investors are buying into the vision for now. Future revenue growth depends on Facebook’s ability to shift marketers’ interest to new ads in messaging services, and marketing spots embedded in a popular way of sharing called "stories," especially on Instagram. In those formats, users post videos about their day that disappear within 24 hours. Users tap through them and see ads in between.

The newer products may make less money and steal user attention from the main stream of photos, comments and lucrative ads on the social network, Zuckerberg warned. Marketers aren’t totally comfortable with the new formats yet, and 2019 will be another year of significant investment, he added on a conference call with analysts Tuesday.

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 are 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.