Stock markets mixed as corporate results flood in / Photo: Allison Dinner - GETTY IMAGES NORTH AMERICA/AFP/File
Stock markets mixed as corporate results flood in
Wall Street indices wavered on Thursday as investors tracked a slew of corporate earnings including disappointing results for Tesla and Netflix.
Shares in streaming giant Netflix fell 6.4 percent at the start of trading.
Netflix released its second quarter earnings after the market closed on Wednesday and they came in below expectations in terms of revenue despite a crackdown on password sharing that helped increase subscriptions.
"Netflix isn't being lauded so much for adding a much stronger than expected 5.9 million subscribers in the quarter as it is being scorned for its relatively soft third quarter revenue guidance," said Briefing.com analyst Patrick O'Hare.
Shares in electric car company Tesla fell 4.7 percent at the opening bell, after the company reported late Wednesday that it delivered a record number of vehicles in the second quarter as it cut prices.
But this pushed down how much Tesla earned on each vehicle to 18.2 percent, which City Index analyst Joshua Warner said was the lowest gross margin level in four years.
Moreover, Tesla CEO Elon Musk indicated he is willing to sacrifice margin to further boost sales.
"Markets were hoping the bulk of markdowns had been made in the first half and hoped margins would actually start recovering in the second half, but that is now in doubt," said Warner.
The Dow edged 0.3 percent higher at the start of trading, while both the broader S&P 500 and tech-heavy Nasdaq slid.
The Dow continued to forge new 2023 highs after eight straight positive sessions, while the S&P 500 and Nasdaq remained close to peak levels.
The mood across trading floors has been generally positive of late, with last week's news that US inflation had slowed more than expected coming alongside healthy data suggesting a recession could also be avoided.
Sentiment was further boosted this week by data showing UK inflation cooling more than expected.
The figures have fanned hopes that the long-running campaign of rate hikes was kicking in and policymakers in Washington and London could tap the brakes.
Comments from a top European Central Bank official this week indicated a similar outlook in Frankfurt.
The Fed is tipped to lift rates at its meeting next week but expectations are that it will stop after that, although there is still debate about whether it will announce another later in the year.
But with companies reporting second quarter results investors are getting to see if higher interest rates are already weighing on performance and the outlook for the coming months.
European stocks markets were higher in afternoon trading.
Among European companies, EasyJet shares fell in London even as the airline said it expected record pre-tax profits this year while Nokia was in the green despite falling second-quarter profits.
Asian stock markets began Thursday on the front foot but many lost momentum as the day went on.
A lot of the unease on trading floors is centred on China's troubled economy, with the recovery from years of zero-Covid policies appearing to have shuddered to a halt, with the threat of deflation lingering.
- Key figures around 1330 GMT -
New York - Dow: UP 0.3 percent at 35,149.81 points
London - FTSE 100: UP 0.8 percent at 7,646.26
Frankfurt - DAX: UP 0.4 percent at 16,165.78
Paris - CAC 40: UP 0.6 percent at 7,367.99
EURO STOXX 50: UP less than 0.1 percent at 4,365.33
Tokyo - Nikkei 225: DOWN 1.2 percent at 32,490.52 (close)
Hong Kong - Hang Seng Index: DOWN 0.1 percent at 18,928.02 (close)
Shanghai - Composite: DOWN 0.9 percent at 3,169.52 (close)
Euro/dollar: DOWN at $1.1189 from $1.1204 on Thursday
Pound/dollar: DOWN at $1.2870 from $1.2937
Euro/pound: UP at 86.88 pence from 86.59 pence
Dollar/yen: UP at 139.79 yen from 139.71 yen
Brent North Sea crude: UP 0.7 percent at $80.03 per barrel
West Texas Intermediate: UP 0.8 percent at $75.95 per barrel
burs-rl/lth
L.Rodriguez--RTC
