Dow at 22,000! | Calamatta Cuschieri

It was a mixed day of trade across global markets on Wednesday. Europe was in the red, but Asia and the US both posted gains during the session as earnings reports continued to roll out across the globe

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Calamatta Cuschieri
3 August 2017, 11:58am
Dow Jones Industrial Average notched another milestone as it breached the 22,000 mark
Dow Jones Industrial Average notched another milestone as it breached the 22,000 mark
It was a mixed day of trade across global markets on Wednesday. Europe was in the red, but Asia and the US both posted gains during the session as earnings reports continued to roll out across the globe.

Stocks in Europe were in negative territory as energy shares pulled back alongside a drop in oil prices. Disappointing results from Société Générale and Commerzbank were a drag on euro zone banks, with the sector index falling 0.4%.

It was a similar scene on Wall Street, as US stocks fell from near record levels, as energy shares retreated anew. But the Dow Jones Industrial Average notched another milestone as it breached the 22,000 mark on Wednesday. The 30-stock index broke above that level thanks to a boost from Apple shares, which surged after its quarterly results blew expectations out of the water.

Not a good day for financials

Bank stocks were lower on Wednesday after mixed results from European lenders. Shares of Société Général fell 3%. France’s third largest bank by assets said that second-quarter profit dropped 28%, as it was hurt by litigation costs and stubbornly low interest rates.

Elsewhere, Germany’s Commerzbank posted a bigger than expected net loss in the second quarter due to weak markets and restructuring charges. Its shares opened firmly lower, but tried to stage a come-back during morning trade, eventually closing the session 1.34% lower.

There was little good news from London-listed bank, Standard Chartered, after the Asian-focused lender reported quarterly profit in the first half, but failed to declare a dividend. Its shares fell 5.65% during the session.

Apple rally lifts Dow

A rally in Apple shares helped lift the Dow beyond the all-important 22,000 milestone, the first time this has ever happened.

Apple dampened fears about slow iPhone sales and potential delays of its next smartphone launch with its quarterly earnings report, sending shares soaring to levels that would be record highs. The world’s largest publically listed company reported strong results and iPhone sales, and signalled that its 10th anniversary phone is on schedule. Apple’s stock rose 5.2% on Wednesday and is already up 30% this year.

BMW profits rise

Luxury carmaker BMW has posted a rise in its earnings and sales figures for the second quarter of the year, helped by demand in China. The company also confirmed its outlook for a slight increase in pre-tax profit in 2017. As widely expected.

The news was music to the ears of invests, and saw its shares recover from an early drop in price, to close the session in the green.

 

This article was issued by Rebecca Naudi, 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.

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