The Malta Independent 15 August 2020, Saturday

Global markets retreat whilst Tech firms stand out

Friday, 31 July 2020, 11:39 Last update: about 15 days ago

Global economic worries sink broad stocks whilst ‘Big Four’ tech firms jump on earnings

US markets recovered from session lows with the Nasdaq sneaking in a positive finish as investors braced for a wave or quarterly earnings from the mammoth tech companies. The Dow Jones Industrial Average lost 225.92 points, or 0.9 percent, to 26,313.65, while the S&P 500 fell 12.22 points, or 0.4 percent, to 3,246.22. The Nasdaq Composite Index meanwhile climbed 44.87 points, or 0.4 percent, to close the session at 10,587.81.

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European markets closed sharply lower on underwhelming corporate earnings and a worrying report on the German economy. The pan-European Stoxx 600 index lost 2.2 percent with growth-sensitive sectors like banks, energy firms and automakers suffering the brunt of the sell-off. Germany’s DAX led the losses with a 3.5 percent fall after a record drop in GDP.

Maltese markets also sank lower with the MSE Equity Total Return Index closing down 0.657 percent to 8,036.499 points. Mapfre Middlesea Plc, although thinly traded, posted the largest loss with shares down 6.48 percent to €2.02 on total volume of 2,840 shares. Malta Properties Company Plc meanwhile led the gains with shares up 4.67 percent at €0.56 from three trades totalling 686 shares.

‘Big Four’ tech firms surge on earnings

Shares of Apple, Amazon, and Facebook surged in extended trading on Thursday, with Google parent company Alphabet also climbing, as quarterly reports from the Big Tech quartet added fuel to Wall Street’s four-month rally. With the four companies reporting on the same day for the first time ever, Apple, Amazon and Facebook each jumped 5% or more. Alphabet traded up about 0.5%.

Apple Inc. brushed off the COVID-19 crisis to report record results Thursday, and the company said it plans to split its stock in an attempt to make it “more accessible to a broader base of investors.” The company beat expectations across the board with its fiscal third-quarter results, which marked a record for the June period. Smartphone sales benefited from the launch if the iPhone SE in April.

While rival brick-and-mortar retailers have had to shut stores during government-imposed lockdowns, Amazon hired 175,000 people in recent months and saw demand for its services soar. The company said revenue jumped 40% from a year earlier to $88.9 billion. Jeff Bezos, who founded the company in July 1994 and is the world’s richest person, said in a statement, “This was another highly unusual quarter.”

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.

 

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