US markets closed lower on Wednesday as a string of mixed corporate earnings and lack of progress on US-China trade talks eased investor appetite. The Dow Jones Industrial Average retreated 115.78 points or 0.4 percent to 27,219.85, whilst the S&P 500 index slipped 19.62 points, or 0.7 percent, to 2,984.42. The Nasdaq Composite Index moved down 37.59 points or 0.5 percent to end the session at 8,185.21 points.
European markets also retreated as disappointing quarterly earnings from Swedish blue chips and major oil companies weighed on the region’s bourses. The pan-European Stoxx 600 index retreated 0.4 percent. BP Plc and Total SA were hit by the recent slide in oil prices whilst ASML jumped 5.2 percent on better than expected quarterly earnings.
Maltese markets joined the trend and also retreated, with the MSE Equity Total Return Index closing 0.244 percent lower at 9,731.566 points. Malta Properties Company Plc posted the biggest slide with shares losing 3.03 percent to €0.64, followed by Tigne Mall Plc which slipped 2.22 percent to close at €0.88. BMIT Technologies Plc meanwhile saw the biggest gain with shares up 0.94 percent at €0.535.
Netflix falls on short earnings
Netflix shares fell nearly 12% on Wednesday as the global video subscription service lost U.S. streaming customers for the first time in eight years and missed targets for new subscribers overseas, an announcement that jarred investors ahead of looming competition. Netflix reported that it added 2.83 million paid streaming subscribers outside the United States, below analyst expectations of 4.8 million.
Netflix has staked its future on global expansion and creating original TV shows, movies and documentaries to attract new customers and keep the existing ones paying monthly subscription fees. Chief Executive Reed Hastings said on a video call with analysts the company’s internal projection still showed it expected to end 2019 with more new subscribers than it added in 2018. It currently boasts 151.6 million streaming customers worldwide.
Looking ahead, Netflix projected it would add 7 million paid streaming customers in the third quarter with help from a new season of supernatural thriller “Stranger Things,” released on July 4. That is more bullish than the 6.6 million forecast from analysts polled by Refinitiv.
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.