Markets end mixed

US markets closed mostly higher with indexes hitting new records except for the Dow after disappointing earnings from Boeing and Caterpillar. The Dow Jones Industrial Average retreated 79.22 points or 0.3 percent to 27,269.97, whilst the S&P 500 index advanced 14.09 points or 0.5 percent to an all-time closing high of 3,019.56. The Nasdaq Composite also gained 70.10 points or 0.9 percent to a fresh high, closing the session at 8,321.50.

European markets meanwhile traded flat as investors awaited news from the next ECB meeting and with gains for chipmakers and the autos sector being offset by losses in commodity stocks and basic materials. The pan-European STOXX 600 index edged up 0.05 percent whilst the UK’s FTSE 100 index slipped 0.7 percent with falling iron ore prices in China. Daimler AG gained 2.5 percent on reports it would intensify cost cuts after swinging to a quarterly loss.

Maltese markets retreated for a second-straight day with the MSE Equity Total Return Index closing down 0.029 percent at 9,802.786 points. Bank of Valletta Plc led the move lower with shares losing 1.33 percent to €1.11, followed by International Hotel Investments Plc which closed down 1.24 percent at €0.795. HSBC Bank Malta Plc meanwhile led the gains with shares up 2.63 percent to close at €1.56.

Tesla drops on weak earnings

Tesla Inc. shares fell 11% after hours Wednesday after the Silicon Valley car maker reported second-quarter results well below Wall Street expectations, despite coming on the heels of record sales for the company. Tesla earlier this month reported record second-quarter sales that were above Wall Street expectations. That had buoyed the stock in recent sessions and primed investors to expect a smaller quarterly loss.

In CEO Elon Musk’s statement, Tesla said it was focusing less on profit and more on volume growth, capacity expansion and cash generation. Musk said the company had grown to the point of “being self-funding,” indicating he might not need another cash infusion following a record-setting capital raising earlier this year.

Boeing may halt 737-MAX production

Boeing Co posted its largest-ever quarterly loss on Wednesday due to the spiralling cost of resolving issues with its 737 MAX, warning it may have to shut production of the grounded jet completely if it runs into new hurdles with global regulators getting its best-selling aircraft back in the air. The comment by Chairman and CEO Dennis Muilenburg underscores the uncertainty swirling around the company and its best-selling plane, which has been grounded since March after two deadly crashes.

Boeing is updating U.S. and foreign regulators daily on its work to fix the plane. Based on those discussions, the company said last week that it expects the Max to resume flying early in the fourth quarter. The grounding of the 737 MAX has sent shockwaves through the industry and also pushed back the launch of a new Boeing aircraft, a twin-aisle jet for the middle of the market.

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.