Markets turned roller-coasters | Calamatta Cuschieri

U.S. markets ended mostly lower after a rocky trading session on Thursday, switching between gains and losses as investors digested the latest rounds of earnings whilst fears of a pickup in inflation and rising bond yields fostered emerging volatility on Wall Street. The Dow Jones Industrial Average rose 37.32 points, or 0.1%, to finish at 26,186.71, well off its session low at 26,014, when it tumbled by 135 points right off the line.
European markets also ended lower with the FTSE 100 and DAX weighed down by the energy sector and ever increasing global bond yields, outsizing recent gains in the tech industry. The London blue-chip index fell 0.6% to finish at 7,490.39, adding to its 0.7% loss from Wednesday with Vodafone reporting declining revenue. Shell and Royal Dutch Shell were the biggest negative movers on the German DAX.

Amazon continues its climb

Shares of Amazon.com Inc. surged 2.5% in after-hours trade Thursday, after tumbling during the regular session, as the e-commerce giant reported a big jump in fourth-quarter profit and revenue that rose above expectations, sending CEO Jeff Bezos' personal net-worth over the $120 billion mark. Bezos is ranked as the world’s richest man, surpassing Microsoft Corp. co-founder Bill Gates for the first time last summer. Net income rose to $1.86 billion, or $3.75 a share, from $749 million, or $1.54 a share, in the same period a year ago. The results included a one-time benefit of $789 million from tax-reform legislation. Before Thursday’s post-earnings gains, Amazon’s shares were already up about 19% this year, compared with the Dow Jones Industrial Average’s 6% gain in 2018.

Apple forecasts and iPhone X sales

Apple Inc. continues to take the global spotlight as its shares traded lower after the company forecasted lower-than-expected revenue for the current quarter, from the crucial holiday period that missed analysts’ forecasts, suggesting waning demand for its most-important product. The company said that revenue would be within the region of $60 to $62 billion with analysts looking for revenues within the region of $65.9 billion.
The numbers, which would be extraordinary for virtually any other company in the world, underscore the elevated expectations that investors have for Apple, as the company sold 77.3 million iPhones, down 1% from a year earlier, and below analysts’ projections of 80.2 million units. However, the average selling price was $796 -- ahead of expectations -- suggesting its flagship iPhone X handset sold relatively well.

Disclaimer

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 is 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.