Despite Trump’s sombre address on Tuesday being blamed for Europe’s struggles, the Dow Jones swung positive after trading got underway in the US.
Climbing 0.3%, the Dow bucked the trend seen overseas, pushing its way back above 26900. Not only was it ignoring the latest covid-19 stresses, but a potential escalation in diplomatic tensions between the US and China, as Washington forced Beijing to shut down in consulate in Houston.
Post-market it is a pretty huge night for US earnings, with both Tesla and Microsoft making an appearance. The car company has had a mega-July, surging 47.6% since the month began – in fact, it is up around 275% since the start of the year – but might be tested on Wednesday night.
Analysts are expecting Elon Musk’s firm to post a quarterly loss of 14 cents per share, alongside a 21.6% drop in revenue to $4.98 billion. It is worth pointing out, though, that the range of forecasts analysts have provided for Tesla’s Q2 performance are huge, so who knows how the numbers will shake out this evening.
As for Bill Gates and the gang, Microsoft – potentially benefiting from a lockdown surge in tech purchases, be it software or hardware – is forecast to post an 8.5% increase in revenue to $36.59 billion, with a 2.2% jump in earnings to $1.40 per share.
Over in Europe, the FTSE was unable to materially change its fortunes after the US open, remaining down around 0.8-0.9%. The pound, meanwhile, improved against the dollar, taking its losses from 0.6% to 0.2%, but was stuck with a 0.7% decline against the euro.
The DAX fared best in the Eurozone, falling just 0.3%, but with the CAC, like the FTSE, struggling to alter the mood of trading, slipping 1%.
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