Google earnings and GM layoffs | Calamatta Cuschieri

The major US indices all registered gains on Monday with the technology sector leading the pack. The Dow Jones gained 0.7% to close at 2,539.37 while the S&P 500 gained 0.68% to close at 2,724.87. Nvidia, Apple and Microsoft moved the NASDQ composite higher to close 1.15% higher than it’s open.

Europe’s markets were mostly down on Monday, with banks and the auto sector leading the declines as investors adopted cautious approaches amidst downbeat economic data. The Stoxx Europe 600 slipped 0.1% to 359.23 and France’s CAC 40 % fell by 0.5% to 4,991.91. Germany’s DAX 30 fell by 0.3% to 11,143.88 while the UK’s FTSE 100 was Europe’s biggest gainer, adding almost 0.3% to 7,039.09.

The MSE equity price index closed the day with a marginal gain of 0.3%. Bank of Valletta rebounded from its lows with a gain of 1.6% while Go plc and MIA registered marginal gains of 0.5% and 0.8% respectively. The only other mover for the day was HSBC registering a decline of 0.6%.

Google Reports earnings

Google’s parent Alphabet announced its earning after the closing bell leaving many investors disappointed after capital expenditure rose more than expected. This led the price lower despite registering higher revenue and earnings than expected. The core business, which includes search, grew 20% from last year which is the same growth as last quarter. Alphabet’s ‘other revenues’ which includes the small ventures registered growth and is now accounting for $6.49 billion out of the $39.28 billion in total revenues.

General motors lay offs

General motors announced that it is going to start laying off 4,000 workers in the United States and Canada. The company has not announced as of yet in which departments the layoffs will be nor the timeline. The Canadian and US factories mostly produce sedans and compact cars which have not been selling in North America as of late. The consumers in that market are opting for larger vehicles such as crossovers. This is one of multiple actions the company has been embarking on to cut costs and increase profitability. General motors is expected to release its earnings for the quarter on the 6th of February.

Disclaimer: This article was issued by Aaron Saliba, 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.