15,200 points ahead: DAX back in the black?

15,200 points ahead: DAX back in the black?

market report

Status: 01/26/2023 07:49 am

After yesterday’s pullback, the DAX should start with solid gains today. First, investors will deal with quarterly reports, later there will be important US economic data.

Broker IG evaluates DAX at more than 15,200 points at the moment. Yesterday, Germany’s leading index was temporarily has fallen below the 15,000 markbut ended up just under 0.1 percent at 15,082 points.

The price rally at the start of the year ensured that investors with buying power were pre-filled while new capacity awaited correction, explains Konstantin Oldenburger, market analyst at CMC Markets.

Investors are focusing on the GDP data expected later in the day. In addition, initial weekly claims for unemployment benefits in the United States are pending. Investors are expecting conclusions about the unemployment rate and thus the future monetary policy of the US Federal Reserve.

Weakness on Wall Street

Disappointing data from Microsoft overshadowed the mood of American investors yesterday: the Dow Jones fell by 33,744 points. The tech-heavy Nasdaq fell 1.2 percent to 11,313, and the underlying S&P 500 closed little changed at 4,016.

“Equities are back in the doldrums as investors appear to be bracing for a disappointing earnings season from big tech companies,” said market strategist Craig Erlam of trading firm Oanda. “Earnings provided a more realistic picture of this year’s outlook as investors seemed convinced that this was the case. Layoffs, missed headlines and bad forecasts are becoming more common.”

The Nikkei falls back a bit

Tokyo’s stock market was weak, with the Nikkei losing 0.1 percent to 27,362.75 points. China’s stock markets were inactive due to the New Year celebrations.

SAP wants to cut 3,000 jobs and cut costs

At software maker SAP, 3,000 jobs will be cut, CEO Christian Klein announced. In Germany, 200 workers are said to be affected. In the last financial year, SAP achieved its annual targets. Adjusted for special effects, earnings before interest and taxes fell by two percent to 8.03 billion euros. Annual sales rose by eleven percent to 30.9 billion euros, also due to increased business and cloud applications for Internet use.

Tesla breaks records

Despite high inflation, economic worries and supply chain problems, Tesla earned more in 2022 than ever before in a fiscal year. Entrepreneur Elon Musk’s electric car group increased its profit by 128 percent year-on-year to $12.6 billion. That revenue grew accordingly by 51 percent to $81.5 billion. “It’s been a great year, the best year yet,” Musk said while presenting the numbers.

Jump profit at Sartorius

Laboratory trader Sartorius has grown significantly and achieved its targets for the last financial year. The operating result (Ebitda) rose by five billion euros to 1.41, as the company announced. Sartorius had sales of around 4.18 billion euros, an increase of 21 percent within one year. Adjusted for currency effects, there was an increase of 15 percent.

Automaker Hyundai triples profits

Strong demand for SUVs and a weak local currency have boosted profits for South Korean automaker Hyundai. Net profit rose to 1.7 trillion won in the fourth quarter from 547 billion won in the year-ago quarter.

Chevron’s massive stock buyback plan

The American oil company Chevron wants to distribute billions to its shareholders in view of high profits. Beginning in April, $75 billion worth of shares will be repurchased. Chevron plans to pay shareholders a quarterly dividend of $1.51 per share, up 6.3 percent from three months ago. The stock rose nearly 3 percent in after-hours trading.

Big oil gains have come in recent quarters after Russia’s war in Ukraine drove up oil and gas prices. Chevron will report its quarterly results tomorrow.

IBM is cutting about 3,900 jobs

Computer company IBM is cutting jobs. There are about 3,900 jobs, about 1.5 percent of the global workforce, IBM CFO James Kavanaugh told Bloomberg. At the same time, new employees will be hired in growth areas, as he announced. IBM reported fourth-quarter sales of $16.7 billion, the same as last year. Meanwhile, profits grew 17 percent to $2.9 billion.