Markets mixed as investors await trade news | Calamatta Cuschieri

Mixed markets, PG&E’s new board & Tesla’s weaker Q1 deliveries

U.S. markets continued their winning streak on Thursday as investors awaited further news on the potential US-China trade deal. The Dow Jones Industrial Average gained 166.50 points to 26,384.63, led by a 2.9% rise in Boeing. The S&P 500 advanced 0.2% to 2,879.39 whilst the Nasdaq Composite Index slid 0.1% to 7,891.78 as sharp losses in Tesla Inc. weighed on the index.

European markets ended their four-day winning streak as basic resources stocks reversed much of Wednesday’s gains, weighing on the region’s indexes. The pan-European Stoxx 600 index slid 0.3%, with losses pared by gains in the banking sector. Commerzbank led the sector with shares up 2.8% after sources claimed buy-out interest from Italian lender UniCredit if Commerzbank’s talks with Deutsche Bank yielded no results.

Maltese markets ended mostly unchanged with the MSE Equity Total Return Index recording a gain of 0.012% to close at 9,429.107 points. Malta International Airport posted the largest gains with shares climbing 0.75% to €6.70. The banking sector saw only one trade with 10,000 shares of HSBC Bank Malta Plc moving the price down 0.62% to €1.63.

PG&E appoints new board members & CEO

Shares in Californian utility company PG&E jumped 2.8% after it had announced the appointment of 10 new board members and new chief executive officer. The utility is going through the chapter 11 bankruptcy process after a series of deadly wildfires in 2017 and 2018 left it facing liabilities of up to $30 billion, according to PG&E’s projections.

Five of PG&E’s 10 new board members come from the asset-management industry, including Oaktree Capital Management and Canyon Partners. The others include former energy-industry executives, regulators, and policy advisers. All 13 of the company’s directors—10 new members and three holdovers—will all stand for election at the company’s annual shareholder meeting on May 21.

Tesla drops on weak deliveries

Tesla Inc. shares plummeted as a record decline in deliveries during the first quarter stoked concern of slackening demand for the Model 3 sedan that started selling less than two years ago. Several Wall Street analysts cut their delivery estimates as the quarter came to an end, citing the tax credit and delays in overseas shipments. Musk also cautioned on Tesla’s Jan. 30 earnings call that seasonality would come into play in the first quarter, with auto sales tending to be lowest in January and February and picking up in March.

Tesla’s 5.3 percent bonds due 2025 fell almost 2 cents on the dollar to 85.75 cents, taking the yield above 8 percent. The shares have slumped about 21 percent this year amid demand concerns, multiple price cuts, job reductions and a continued exodus of senior executives.
 

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 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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