Markets turn higher | Calamatta Cuschieri

US markets finished higher on Wednesday during a shortened trading session ahead of the US 4th of July holiday. The Dow Jones Industrial Average rose 176 points, or 0.7%, to end near 26,962 whilst the S&P 500 gained 0.8% to finish around 2,996. The Nasdaq Composite advanced 0.8% to close the session around 8,170.

European markets also surged as investors moved into high-paying equities on hopes that European Central Bank chief nominee Christine Lagarde will continue with the ECB’s dovish policy. The pan-European STOXX 600 index advanced 0.9 percent with Italy’s FTSE MIB surging over 2 percent as the country avoids EU sanction threats.

Maltese markets also advanced with the MSE Equity Total Return Index closing up 0.141 percent to 9,773.385 points. Shares in Bank of Valletta Plc gained 0.88 percent to €1.15 whilst Medserv Plc fell 4.35 percent to €1.10. BMIT Technologies Plc also slipped 0.91 percent to €0.545.

Tesla jumps on second quarter deliveries

Tesla Inc shares jumped nearly 7% after Chief Executive Officer Elon Musk made good on his promise of delivering record number of electric cars in the second quarter, ousting fears about demand for its sedans and SUVs. Tesla delivered 95,200 vehicles in the second quarter, beating analysts’ average estimates, but did not comment on when it would return to profitability.

While CEO Elon Musk has been trying to convince investors that demand remains high for Tesla cars and delivery could be made efficiently, some analysts remained skeptical about the company’s ability to deliver on its promise and maintain margins. Tesla’s first quarter was hurt by logistics issues at international ports and a drop-off in U.S. orders after a tax credit was halved, which spurred concerns that demand for Tesla’s electric cars may have peaked.

Tesla still faces multiple challenges, including starting production in China in the backdrop of U.S.-China trade tensions and overhauling its production process at a time when several of its top executives are leaving the company.
 

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.