Wall Street indexes closed Wednesday trading session on green, ending the negative series of the previous two days. The technology companies known as FAANG (Facebook, Apple, Amazon, Netflix, and Google) achieved stocks growth, as Facebook shares rose 2%, while Amazon and Apple added 1.9% and 0.6%, respectively. The technology group has been subjected to severe pressure over the past few days, making it a major factor in the negative series of US stock indexes.
The blue-chip index Dow Jones Industrial Average added 142.95 points, or 0.58%, closing the session at 24,608.59 points. The broader S&P 500 rose by 0.91% to 2,665.85 points, while the technology index Nasdaq Composite added 96.39 points to 7,005.21 points.
The investors found the report by US Trade Representative Robert Lighthizer, which shows that the current US duties have not succeeded to stop Chinese theft of intellectual property. Beijing’s government continues to support the theft of intellectual property and to force US developers to pass their technological know-how to Chinese companies.
Meanwhile, the World Trade Organization (WTO) is setting up working groups to investigate US President Donald Trump’s decision to impose duties on steel and aluminum imports. The decision is based on the complaints of the European Union, China, Canada, Mexico, Norway and Russia.
Donald Trump justifies the imposition of duties by claiming that large imports jeopardize US national security.
On the bond markets, the yields on 10-year US Treasuries rose to 3.605%, while yields on 30-year bonds rose to 3.317%.
In the currency markets, the dollar index, measuring the strength of US dollars against a basket of six competing currencies, swapped 0.11% of its value, reaching a level of 96.73 points.
Corporate stocks performance
Airline stocks are growing before one of the busiest travel days of the year. There doesn’t appear to be a single catalyst, but the lower overall level of jet fuel prices compared to a few months ago isn’t hurting amid a reduced rate of hedging activity. Also to be considered, the recent tech blow-up could have investors honing in on the improved margins and low valuations in the airline sector.
American Airlines Group (AAL) rose by 4.4%, while Delta Air Lines increased by 3%, Alaska Air increased by 3.4% and JetBlue appreciated by 3.4%.
The technology companies known as FAANG (Facebook, Apple, Amazon, Netflix, and Google) achieved stocks growth, compensating some of the decreases from the previous sessions. Tech had an oversize effect on the rally and an oversize effect on the selloff, because it’s such a big portion of the indexes.
The stocks of the American technology company Nvidia has been in a free fall for days because of weak prospects for the fourth quarter.
The gas transportation shipowner BW LPG reported operating revenue was 367.5 million USD in YTD September 2018 with TCE income decreasing to 216.3 million USD from 256.1 million USD, mainly attributable to the decline in LPG spot rates and a smaller fleet size. The company’s EBITDA decreased to 68.4 million USD in YTD September 2018 from 99.6 million USD in YTD September 2017, mainly due to lower TCE income. BW LPG net finance expense decreased to 35.2 million USD in YTD September 2018.
German industrial engineering and steel producer ThyssenKrupp AG registered solid growth in order intake and sales despite negative currency effects in fiscal 2017/2018. The company’s adjusted EBIT reached 1.6 billion EUR and was therefore below the revised forecast made at the end of July. The net income of 60 million EUR was also down from the year before (271 million EUR).
The revenues of El Al Israel Airlines in Q3 2018 amounted to 642 million USD, representing a increase of 2.5% YoY from 626 million USD for the third quarter of 2017. The operating profit for the third quarter of 2018 amounted to 62 million USD, while EBITDA amounted to 99 million USD compared to 109 million USD for the third quarter of 2017.
LATAM Airlines Group reported an operating income of 175.0 million USD in the third quarter of 2018. The company’s operating margin reached 7.0%, decreasing 2.2 percentage points year-over-year in the quarter. This decline was mainly explained by a 185.0 million USD increase in fuel expenses, as well as lower revenues mainly due to the 24.9% devaluation of the Brazilian Real and the 84.6% devaluation of the Argentinian Peso, which affected LATAM’s international operations when compared to the third quarter 2017.