German shares surge significantly. DAX slumps, Tesla experiences a major rally.
U.S. stocks saw some twists yesterday, with late-night trading turning things around. The Dow Jones and S&P 500 slipped into the positive territory late in the day, while Nasdaq made a strong comeback, thanks to a robust performance by Tesla. On the other hand, the DAX struggled, held back by a steep dive in SAP shares.
The German stock market's performance on Thursday was mixed. While the MDax, aka the index of medium-sized companies, surged by 1.30 percent, and the SDax climbed around 1.0 percent, the DAX only managed a slight 0.13 percent rise to 15,101 points. The slow pace of the DAX is possibly due to substantial losses in SAP, one of its heavily weighted stocks.
Tesla reported its Q4 2024 financial results, and while they showed some concerns - declining automotive revenue and net income - investors seemed to have a different perspective, propelling the stocks into a massive rally. However, Plug Power stocks have seen a drop today.
The numbers from the electric car manufacturer Tesla and positive economic growth data have lifted the mood on the technology-heavy Nasdaq exchanges on Thursday. Despite a friendly start, the Dow Jones Industrial eventually slipped into the loss zone. The broad-based S&P 500, in contrast, rose by 0.20 percent, and the Nasdaq 100 even surged by 0.87 percent.
Stocks of Interest to German Investors
The software giant SAP took a nose dive at the end of the Dax, dropping 3.1 percent. The company has issued cautious financial targets for 2023 and ranks at the lower end of analyst expectations for revenue guidance. Meanwhile, Sartorius shares soared as the day's leader in the Dax, rising by 5.2 percent. The pharmaceutical and laboratory equipment supplier is anticipating a slowed pace for 2023 after another remarkable year of revenue and earnings growth.
Evotec shares topped the MDax, increasing by 5.8 percent. This drug researcher is teaming up with Johnson & Johnson in the development of immune-based cancer therapies. Evotec stands to receive an advance payment, milestone payments of over $350 million, and a revenue share if medicines from this partnership make it to market.
Real estate company DIC Asset achieved their financial targets in the last year but only just, with the operating profit at the lower end of the given range. DIC Asset plans to maintain their dividend payout at the previous level. Despite this, shares in the company rose by 2.1 percent.
DAX Winners and Losers
Sartorius shares saw the highest gain in the DAX, increasing by 5.89 percent, thanks to the quarterly results. Infineon benefited from good numbers reported by its competitors and gained 4.11 percent. Fresenius Medical Care also rose by 2.67 percent.
Conversely, Fresenius fell 2.40 percent, RWE slipped 1.66 percent, and Vonovia slipped 1.28 percent.
What's Important Today
Investors are currently focused on U.S. Gross Domestic Product (GDP) data, expected this afternoon. Analysts predict a year-over-year increase of 2.8 percent in the fourth quarter, following a 3.2 percent increase in the summer quarter. Unemployment rate speculations based on weekly initial jobless claims are also on the agenda. Expected employment rate fluctuations could impact future monetary policy decisions by the U.S. Federal Reserve.
Reported results are due from French luxury conglomerate LVMH, as well as U.S. companies Intel and Visa.
The German stock market showed mixed performances on Thursday, with the DAX only managing a slight rise despite surges in the MDax and SDax. SAP, a heavily weighted stock in the DAX, took a nose dive, dropping 3.1 percent due to cautious financial targets for 2023. According to analyst expectations, the company's revenue guidance ranks at the lower end. On the other hand, among the losers in the DAX, Fresenius fell by 2.40 percent, RWE slipped by 1.66 percent, and Vonovia dropped by 1.28 percent. Meanwhile, Sartorius shares soared as the day's leader in the Dax, rising by 5.2 percent due to anticipation of a slowed pace for 2023 after another remarkable year of revenue and earnings growth. Separately, investors are focused on U.S. GDP data, anticipated this afternoon, and unemployment rate speculations based on weekly initial jobless claims, as these factors could impact future monetary policy decisions by the U.S. Federal Reserve. Furthermore, reported results are due from French luxury conglomerate LVMH, as well as U.S. companies Intel and Visa.
