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Earnings on Wall Street with the Nasdaq leading and the focus on Tesla and Europe

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wall street Wednesday’s session ended with profits (Dow Jones: +0.15%; S&P 500: +0.59%; Nasdaq: +1.58%)driven by the Nasdaq, and after the Tuesday’s bull rally on the New York parquet.

Investors’ focus continued this Wednesday on the earnings season, with Tesla the most outstanding company that has released its figures, as well as in inflation and in the situation in Europe.

RESULTS: TESLA TURN

Earnings season is marked by ups and downs. Of the irregular numbers of banks like J. P. Morgan either Goldman Sachs to better-than-expected results at companies like IBM either Hasbroalthough others such as the oil company Halliburton have earned much less than in 2021. Among these is Netflixwhose figures have given the streaming giant a breath of fresh air, since has lost fewer subscribers than expected three months ago.

Tesla has presented its results corresponding to the second quarter of 2022. In them, it has reported a net profit 2,259 million dollars, a very significant increase from 1,142 million dollars in the same quarter of the previous year. This figure has decreased if we compare it with the 3,318 million dollars of net profit registered in the first quarter of 2022. The year-on-year growth rate has stood at 98%.

As to income, Tesla has communicated 16,934 million dollars, compared to the 17,100 million dollars anticipated by the market.

Of the total of these revenues, 14,602 million dollars correspond to automobile sales, which translates into a year-on-year increase of 43%as Tesla recorded $10.206 million in car sales in the second quarter of 2021.

For his part, the earnings per share (EPS)of the company too bettered consensus forecasts, $2.27 per share vs. $1.81 expected.

As usual, the electric vehicle manufacturer has released its quarterly delivery and production figuresa figure that has risen to just over 254,000 units. Last quarter, Elon Musk’s company delivered more than 310,000 vehicles, 68% more than a year ago.

«We continue to make significant progress across the business during the second quarter of 2022, although we face certain challenges, including limited production and closures in Shanghai«, They have indicated from the entity.

However, from Tesla they wanted to highlight that «Fremont and Shanghai factories, despite closures, have achieved their highest production months» and that together with the «new factory growth, we are focused on a record second half of 2022».

This Thursday they will present their accounts too Snap, Dominos Pizza, Freeport or the telecommunications giant AT&Twhile on Friday the quarterly results of American Express, Verizon Y Twitterthat will take Elon Musk to court in October after this broke the agreement to acquire the company for 44,000 million dollars.

TECHNICAL ANALYSIS

From technical analysis, it appears that the nasdaq Composite is confirming the start of a rebound after overcome the short-term resistance that it presents at 12,179 points.

«The technological selective covers the bearish gap of last day 10 and could extend the gains until the next level of resistance that it presents in the vicinity of 13,000 points«, says César Nuez, technical analyst at Bolsamanía.

«Its behavior at this price level is vital. If it manages to rise above these levels, the most normal thing is that we can see an extension of the gains to the level of 14,000 points, prices where the 200 session average converges» adds this expert.

So far this year, the selective has cut 24.79%while the decline in the last three months is more than 12%.

EUROPE: GAS, DRAGHI AND THE ECB

All in all, the news these days is on our side of the Atlantic. On the one hand, tomorrow we will know if Russia finally decides to resume the flow through the Nord Stream 1 gas pipeline, the largest and most important gas facility on the Old Continent, after a 10-day technical shutdown. ‘Reuters’ published yesterday that Gazprom intends to restore supplyalthough not to its full capacity.

We will still have to wait to find out how much the gas supply in Europe is in danger, since high officials such as the Commissioner for Budget and Administration of the EU, Johannes Hahn, they are not sure that Russia keeps its word. «We work with the hypothesis that it will not work again,» said the community representative on Tuesday. Countries like Germany or Italy have a very high dependence on Russian gas and a supply shutdown could trigger a recession, especially in the German country.

Precisely in Italy we will have to be aware of whether mario draghi continues at the head of the Transalpine Executive. The 5 Star Movement, Forza Italia and Liga have refused in the Senate to participate in the vote on the motion of confidence to the Government of the Italian Prime Minister, Mario Draghi, which the crisis of his Executive worsens and complicates the continuity of the president. The same ritual will be repeated on Thursday in the Chamber of Deputies. If early elections are not called, the legislature would end in the spring of next year.

The Prime Minister has left the Senate after knowing the intentions of his partners and he is expected to appear before the head of state, Sergio Mattarella, that froze the resignation announced by Draghi last week to debate it in Parliament.

Draghi, however, yes, it has passed the confidence motion. Of the 320 seats in the Senate, it has received 95 yeses and 38 noes, although the vast majority of senators have decided to abstain in the vote.

As for the ECBan organization that Draghi chaired until 2019, tomorrow its Governing Council will meet to raise benchmark interest rates for the first time in 11 years. The euro has gained some air against the dollar in recent days, since the market has ‘bought’ the rumors that the central bank would be willing to undertake a more aggressive rise than expected, up to 50 basis points.

«Markets now see only a one in five chance of a 50 basis point move this week, but this idea is hovering among some hawks,» says the Ebury research team. Nevertheless, «a 25 basis point rate hike and opening to a 50 basis point move in September may be slightly underperforming of what the market now anticipates and add some pressure to the euro this week”, they indicate from ING.

«The European Central Bank is not satisfied with the weakness of the euro, but its ability to offer sustainable support to the community currency may remain limited,» says the Dutch bank. The euro has fallen 0.44% to 1.0179 dollars.

OTHER MARKETS

In other markets, there have been falls in the Petroleum. The west texas 1.54% (102.61 dollars) has been left, while crude Brent it has fallen by 0.4% ($106.95).

For its part, the ounce of gold is down 0.8% to $1,697 and the 10 year US bond yield has risen to 3.04%. The bitcoinmeanwhile, has advanced 0.71% and flirts with $24,000 ($23,663).

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