Around 7:45 PM, the Dow Jones index was 1.1% higher. Tech fair Nasdaq hit a record for the second consecutive day, but then slowed down and headed for 0.2% in the red. The broad-based S&P 500 index rose 0.6%.
The EU today agreed a recovery fund worth € 750 billion. Of this, € 390 billion consists of gifts and € 360 billion of loans. The European Commission will borrow the necessary money on the capital market.
EBay ad sold for $ 9.2 billion
Settled on the Nasdaq eBay (-3%) attention in itself by selling its advertising branch to Norwegian internet concern Adevinta for $ 9.2 billion in cash and stock. This section also includes the Dutch website Marktplaats.
Coca Cola (+ 2.2%) delivered quarterly results. The soft drink giant had a 28% lower turnover in the second quarter due to the corona virus. Coca-Cola was struggling with the consequences of catering closings and the cancellation of many events where its drinks are sold. Revenue fell to $ 7.2 billion, while profits fell by nearly a third to $ 1.8 billion. Nevertheless, Coca-Cola expects the worst blow of the corona pandemic to be over. Where in April a quarter fewer cans of soft drinks were sold than a year earlier, in June this was only a decrease of 10% on an annual basis. The first figures in July point to a further recovery.
Philip Morris headed 4.2% higher. The cigarette manufacturer expects to grow profits this year. Earlier, Philip Morris had cut his expectations due to the corona crisis. The maker of Marlboro and L&M cigarettes now thinks that profits can be up to about 7% higher. Philip Morris saw the necessary recovery in the second quarter, especially in the European market where profit margins are relatively high.
Technology group IBM (+ 0.8%) did good business with its cloud division during the corona period. Revenue from this segment was up 30% year-on-year to $ 6.3 billion. Despite this, IBM’s total revenue was down 5% to $ 18 billion, as large customers delayed or delayed digitization projects due to the crisis. Below the line, $ 1.4 billion remained, with $ 2.5 billion in profit a year ago.
Microsoft daughter LinkedIn announced the firing of 6% of its staff. Because there is less work due to the Coroana crisis, fewer people also use the social career platform. The share Microsoft decreased 0.5%.
DAF mother Paccar sees recovery
Truck manufacturer Paccar (+ 4.6%), the parent company of DAF, has been hit by the corona pandemic. The American group saw its turnover and profit drop significantly in the second quarter. Total revenue decreased by more than half compared to the same period last year to $ 3.1 billion. Last quarter’s net profit plummeted by about 76% to $ 147 million. Paccar was forced to shut down its truck factories for five weeks due to the corona pandemic. Production in the US has now gradually resumed. DAF has previously been working on a restart. According to director Harry Wolters, demand for fuel-efficient DAF trucks recovered in May and June, as European economies improved.
Defense group Lockheed Martin (+ 2.8%) was relatively unscathed by the corona pandemic and raised expectations for the whole of 2020. The American manufacturer of fighter jets, missile installations and other weaponry increased both turnover and profit in the second quarter. Lockheed did incur higher costs due to logistical disruptions and security measures.
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