Oil prices weigh on markets, Apple acquires tech startup and Tesla falls short of delivery target
US markets closed mostly lower on Tuesday with the energy sector falling under pressure from renewed geopolitical tensions between the US and Iran. The Dow Jones Industrial Average edged up 9 points, or less than 0.1 percent, to around 26,728 whilst the S&P 500 slipped 0.2 percent to finish at around 2,945. The Nasdaq Composite declined 0.3 percent to close at around 8,006.
European stocks also declined from the escalated geopolitical tensions but with strong gains by Capgemini and Altran on a multi-billion-euro takeover deal helping cap losses. The pan-European STOXX 600 index retreated 0.1 percent on thin trading volumes however the UK’s FTSE 100 advanced slightly with the materials sector gaining together with copper and oil prices.
Maltese markets also moved lower with the MSE Equity Total Return Index closing down 0.2, to close at 9,846.679 points. BMIT Technologies Plc led the losses with shares declining 1.85 percent to €0.53, following by Bank of Valletta Plc which shed 1.65 percent to close the session at €1.19. Trident Estates plc meanwhile topped the gainers with a rise of 2.63 percent to close at €1.95.
Apple acquires Drive.ai
Apple Inc on Tuesday confirmed that it has acquired self-driving shuttle firm Drive.ai. One of hundreds of startups pursuing autonomous vehicles, Drive.ai had been running a small fleet of test shuttles in Texas. The iPhone maker was considering acquiring the firm as a move to bring aboard some of its engineering talent to boost Apple’s own self-driving efforts.
Apple is vying against rivals such as Alphabet Inc’s Waymo to develop self-driving vehicles. In the past year, Apple has revamped its efforts, bringing former Tesla Inc engineering chief Doug Field to oversee the operation, which includes more than 5,000 workers.
Tesla risks falling short of delivery target
Shares of Tesla Inc fell 1.7% after reports emerged that the electric-car maker has so far delivered 49,000 vehicles in North America during the second quarter, threatening its goal of a new record. In the first quarter, Tesla reported a 31% fall in deliveries, sparking concerns about the company’s ability to make profits and meet its delivery targets.
Chief Executive Officer Elon Musk had said last month that the company was on course to deliver a record number of cars in the quarter, beating the 90,700 it sent to customers in the final quarter of last year. However demand for Tesla’s Model 3 sedan and other cars have also moved to the top of investors’ list of worries after the company reported slack first-quarter demand against a backdrop of U.S.-China trade tensions.
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.