US markets gave up their earlier gains and closed lower on Thursday as technology stocks took a hit head of earnings reports. The Dow Jones Industrial retreated 32.23 points, or 0.1 percent, to 24,101.55 and the S&P 500 index lost 15.09 points, or 0.5 percent, to 2,863.39. The Nasdaq Composite index fell 122.43 points, or 1.4 percent, to end the session at 8,607.73.
European markets meanwhile climbed as a rally in banking shares helped lift the region’s bourses. The pan-European Stoxx 600 index surged 1.7 percent on largely broad-based gains. The healthcare sector was the only sectoral decliner, down 0.1%.
Maltese markets also traded higher with the MSE Equity Total Return Index closing up 0.14 at 8,261.004 points. Simonds Farsons Cisk Plc led the gains with shares up 2.47 at €8.30, followed by Malita Investments Plc which gained 2.35 percent to €0.87. BMIT Technologies Plc meanwhile led the losses with shares down 3.23 percent at €0.48.
Google sees returning revenue
A drop in Google ad sales steadied in April and some consumers returned to using the search engine for shopping in addition to finding novel coronavirus information, parent Alphabet Inc said on Tuesday, sparking an 8% rally in shares. The company also is working to lure money from advertisers that normally sponsor sporting events canceled by the coronavirus.
Alphabet Chief Financial Officer Ruth Porat still warned that she anticipated “the second quarter will be a difficult one” because the early April trends may not hold. Some financial and advertising analysts had estimated ad sales declines of up to 20% in the coming quarters, with hotels, airlines, film studios and other big spenders cutting ad buys because of the coronavirus pandemic.
Alphabet’s overall revenue in the first quarter was $41.2 billion, up 13% compared with the same period last year. The average estimate among financial analysts tracked by Refinitiv was $40.29 billion, up 10.87%, expecting the slowest growth since 11.1% in the second quarter of 2015. Google ad sales in the first quarter were $33.8 billion, with about 73% coming from search and 12% from YouTube.
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.