Wednesday was mainly characterized by optimism on Wall Street in anticipation of quarterly figures from major companies such as Tesla and Netflix. The figures were presented after the stock exchange’s closing time. During yesterday, the Dow Jones rose 0.3 percent, the S&P 500 gained 0.2 percent, while the Nasdaq ended unchanged.
“The results season has started encouragingly, but yesterday most of the companies disappointed. The Tesla share fell over four percent in after-market trading, while Netflix fell a full eight percent. Weaker margins after several price cuts weighed on the Q2 figures for Elon Musk’s Tesla, while Netflix struggled with top-line growth in the previous quarter,” writes Roger Berntsen in an update from Nordnet.
– Unusual phenomenon
At the same time, it is worth noting that the Dow Jones has put an unusually high number of days behind it.
“In addition, the Dow Jones index rose for the 8th day in a row, a phenomenon that is not common in the stock market. This series of upswing days indicates optimism among investors, and in the short term it may act as a driver for further upswing,” writes Berntsen.
We have to go back to September 2019 to find a similar period of growth for the Dow Jones.
Berntsen emphasizes that a longer series of up days can also indicate that the market is overbought, which could potentially lead to a correction or at least a temporary cooling.
Disappointing growth figures from China earlier in the week have dampened optimism in the region in recent days.
2023-07-20 07:30:57
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