US markets crept higher on Wednesday after investors took in the latest round of corporate earnings from blue-chip companies such as Boeing and Caterpillar. The Dow Jones Industrial Average gained 45.85 points, or 0.2 percent, to 26,833.95, while the S&P 500 index rose 8.53 points, or 0.3 percent, to 3,004.52. The Nasdaq Composite Index added 15.50 points, or 0.2 percent, to close the session at 8,119.79.
European markets struggled to gain ground in the meantime as indexes were weighed down by the tech sector. The pan-European STOXX 600 index retreated 0.2 percent to 394.04 with Germany's DAX closing flat at 12,761 points. The UK's FTSE 100 index however reversed the trend and closed 0.4 percent higher at 7,238.90.
Maltese markets also turned lower with the MSE Equity Total Return Index closing down 0.136 percent at 9,766.764 points on the back of low trading volumes. Malta International Airport Plc closed down 2.03 percent at €7.25 whilst Midi Plc ended up 1.41 percent at €0.72.
Tesla posts surprise quarterly profit
Tesla Inc. shares rallied skyrocketed in after-hours trading Wednesday after the Silicon Valley electric-car maker reported a surprise quarterly profit and said key projects, including the next vehicle in its lineup, were ahead of schedule. Shares rose nearly 21% to $307.12 after hours on the unexpected news, crossing $300 for the first time since March 1 after record deliveries and cost cuts ensured a profitable third quarter.
Investors had braced for a drop in quarterly sales despite an uptick for deliveries, mostly thanks to a mix of deliveries that skewed heavily toward the Model 3, Tesla's cheapest vehicle. Tesla's gross margins, an important profit indicator for investors, surpassed expectations and Tesla said it was "highly confident" in exceeding the low end of its yearly global vehicle delivery goal.
The third-quarter results are an important milestone for Tesla and redemption for Musk who had to step down as chairman after a series of scandals and investor doubts about Tesla's ability to withstand competition from larger, better capitalized global rivals. The company on Wednesday said production in Shanghai and for Model Y are ahead of schedule, with the latter expected to launch by the summer of 2020.
This article was issued by Peter Petrov, 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.