The recent recovery rally on Wall Street continued somewhat more subdued on Wednesday. In the current quarterly season, the analysts’ worst fears have not been confirmed, from which technology stocks in particular are benefiting. Tesla in particular is proving to be a driving force in the Nasdaq.
A doubling of profits at the electric car manufacturer Tesla pushed the US stock exchanges on Thursday. After a weak start, the leading US index Dow Jones closed 0.5 percent higher at 32,036 points. The tech-heavy Nasdaq advanced 1.4 percent to 12,059 jobs. The broad S
Some experts are more cautious. The environment of the current accounting season is difficult, said economist Thomas Mathews from the research house Capital Economics. Slowing economic growth and the strong dollar weighed on profit margins. “We expect that the companies from the S
Investors punished AT, among others
United Airlines was also down after the airline reported quarterly earnings below market expectations despite booming demand. Analyst Helane Becker from asset manager Cowen predicted that personnel expenses in particular should continue to rise, as the company needs additional employees. United titles slipped 10.1 percent and those of rivals American and Delta fell as much as eight percent.
The figures from Dow also provided light and shadow. Because of inflation and the corona lockdowns in China, the chemical company’s quarterly profit fell to $ 1.68 billion. But that’s above expectations, commented analyst Laurence Alexander from the investment bank Jefferies. At the same time, the operating profit targets for the current quarter were disappointing. Dow shares lost 2.2 percent.
Investors, on the other hand, were pleased with Tesla’s interim results. The electric car maker almost doubled its profits despite falling sales. The company owes this to price increases and increased demand for higher-yielding models, wrote analyst Craig Irwin of investment bank Roth. However, the stock is already quite expensive. Nevertheless, investors grabbed it and gave it a price increase of 9.8 percent.
At the same time, Tesla caused a stir by announcing that it had sold three quarters of its Bitcoin holdings. This catches the cryptocurrency market off guard, said Emden Research analyst Timo Emden. It also shows that the company underestimated the risks of cyber forex. Bitcoin halted its recovery, falling 0.5 percent to $23,100.
