Dow Jones closes in positive territory
Corporate earnings boost investor sentiment
07/17/2023, 10:14 p.m
A collapse in demand means that China’s economy is still unable to recover from the consequences of the corona pandemic. The commodity market is therefore worried about one of its largest oil consumers. US company balance sheets, on the other hand, are fueling optimism.
US investors have looked forward to the rolling company balance sheets with confidence. The Dow Jones Index the standard was 0.2 percent higher at 34,585.35 points, the broader one S&P 500 rose by 0.3 percent to 4522.79 points. The index of the technology exchange Nasdaq climbed 0.9 percent to 14,244.95 jobs. “Investors are finding that the economy has been really resilient and corporate earnings have been pretty good so far,” said Chris Zaccarelli, investment specialist at the Independent Advisor Alliance.
The second quarter earnings season continues to accelerate, with Tesla on Wednesday and Bank of America, Morgan Stanley, Goldman Sachs and Netflix later in the week. According to Refinitiv data, 80 percent of the 30 companies in the S&P 500 that reported earnings on Friday beat analysts’ expectations.
On the other hand, sentiment was affected by the fact that the Chinese economy’s recovery from the corona pandemic lost considerable momentum in the second quarter, also in view of weak global demand. From April to June, GDP grew by only 0.8 percent compared to the previous quarter. This fueled concerns on the commodity markets about demand from the world’s second largest oil consumer. Brent crude oil from the North Sea and US light oil WTI both fell by around one percent to $79.09 and $74.72 a barrel, respectively.
The example of China shows that the markets react negatively when inflation is falling but the reason is falling demand, said Eduard Baitinger, head of asset allocation at the investment group FERI. Investors should therefore take this scenario into account, despite all the relief they may have about declining inflation. “Disinflation as a result of a noticeable economic downturn could also become an issue in the industrialized countries later in the year.”
Order boosts First Solar’s title
Fears of possible financial risks for US telcos from the use of lead-contaminated cables weighed on shares of AT&T to its lowest level in more than 30 years. The papers lost 6.76 percent to $ 13.52. Citigroup downgraded the stock to neutral from buy and lowered its price target to $16 from $22 previously. The Wall Street Journal recently reported that AT&T, Verizon and other telecom giants had left behind an extensive network of toxic lead-covered cables that stretched across the United States. Verizon stock fell 7.48 percent.
Inspired by an order rose First Solar by more than eight percent. According to a framework agreement, the company supplies solar modules to the Israeli company Energix Renewables. Building on existing orders, the deal will see Energix operating seven to nine gigawatts of First Solar technology by 2030. Video game maker shares Activision Blizzard increased by 3.5 percent. In the event of a successful takeover, Microsoft wants to continue offering the game “Call of Duty” for rival Sony’s PlayStation console. That could help address antitrust concerns surrounding the mega deal.