Tesla, which reported after the market close, posted its first sequential decline in quarterly profit in more than a year as it recovers from an extended shutdown at its Shanghai assembly plant. The company has felt the sting of supply-chain disruptions, the global chip drought and higher materials and logistics costs, among other headwinds. The world's most valuable car maker on Wednesday reported $2.3 billion in second-quarter profit, ahead of the $1.9 billion Wall Street was expecting but below its record quarterly profit of $3.3 billion in the first three months of the year. It generated $1.1 billion in profit during last year's second quarter. Customers, on average, paid more for Tesla's cars during the period, helping the company generate $16.9 billion in second-quarter revenue, down from $18.8 billion in the first quarter. Analysts had expected Tesla to report around $16.5 billion in sales. The challenges of recent months have prompted concern among investors about Tesla's ability to meet its 2022 production goals. Mr. Musk struck an optimistic tone in April, saying the company likely would produce more than 1.5 million vehicles this year, up some 60% over last year and ahead of its long-term target of increasing deliveries by an average of 50% annually over the coming years. Tesla on Wednesday reiterated that multiyear goal, though Wall Street estimates Tesla could struggle to turn out 1.4 million vehicles. Tesla said it sold $936 million worth of bitcoin in the second quarter. It has now unloaded around 75% of its $1.5 billion initial position in the cryptocurrency, leaving it with around $218 million worth of bitcoin as of the end of June. The company said foreign-exchange pressures also weighed on results, with the dollar up strongly against many other currencies. Tesla has laid off staff in recent weeks, after Mr. Musk told employees in June that the company had "become overstaffed in many areas.“ Tesla's stock price has fallen by around a third in 2022 amid a broader drop in equities and certain company-specific headwinds. Mr. Musk currently is embroiled in a legal battle over his $44 billion deal to acquire Twitter Inc. Tesla shares, which closed Wednesday at $742.50, were up less than 1% in late trading. Shares were little changed after hours.

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On Wednesday, the SMI fell by 0.6 per cent to 11,059 points. Among the 20 SMI stocks, there were ten price losers and ten price gainers. A total of 25.66 million shares were traded (previously: 33.22 million). Concerning Novartis, some investors cashed out after the previous day's premiums in the wake of good business figures. Thus the share price lost 1.2 per cent. The competitor shares, Roche, (-0.6%) were also not sought after on the day before the presentation of business figures. Nestle (-1.8%), the third defensive SMI heavyweight, also closed in the red. Partners Group led the table with a premium of 2.3%. Among the second-line stocks, Georg Fischer rose by 7.5 per cent. The half-year figures were better than expected despite the lockdown in China and supply chain problems. The industrial company also reaffirmed its targets for 2025. IT specialist Also (-5.9%) disappointed with its financial statement. Valora's half-year figures (unchanged) are likely to take a back seat in view of Femsa's takeover bid for the trading company.

European shares struggled for momentum on Wednesday as investors considered the latest developments in the two crises engulfing the continent: Italian politics and gas supplies. The Stoxx Europe 600 index lost 0.2% to 422.5 points. In Paris, the CAC 40 and SBF 120 were down 0.3% and 0.2%, respectively. In Frankfurt, the DAX 40 gave up 0.2% and in London, the FTSE 100 slipped by 0.4%. In Milan, the FTSE Mib dropped by 1.6%. Maisons du Monde (+5.3%) was the biggest riser on the SBF 120. Exane BNP Paribas raised its recommendation on the stock from "underperform" to "outperform" and its price target from 13.5 to 14 euros. At the other end of the scale, Virbac lost 9.8%. Portzamparc lowered its recommendation on the veterinary laboratory from "buy" to "strengthen" and its target price from €421.20 to €419.20. Carrefour (+0.7%) signed an agreement to sell its 60% stake in its Taiwanese subsidiary to local player Uni-President, for a price that could reach €1bn. Digital assistance services provider Solutions 30 (+0.4%) has abandoned its plan to acquire French company EnergyGo. Semiconductor equipment maker ASML (+2.5% in Amsterdam) reported a rise in second-quarter net profit, but sharply lowered its revenue growth forecast for the fiscal year 2022 due to a deferral of revenue recognition. German energy supplier Uniper rebounded 12.7% in Frankfurt, buoyed by hopes for resumption of Russian gas deliveries via the Nord Stream pipeline.

Technology and other growth stocks climbed Wednesday as more corporate earnings reports rolled in that were better than investors feared. The Nasdaq Composite advanced 184.50 points, or 1.6%, to finish the day at 11897.65. The S&P 500 rose 23.21 points, or 0.6%, to 3959.90. The Dow Jones Industrial Average added 47.79 points, or 0.2%, to 31874.84. All three indexes rose for the second consecutive session and are trading at their highest levels since early June. Technology, communications and consumer discretionary stocks rallied as investors sought out riskier areas of the market. For much of the year, rising interest rates have weighed on the value of stocks that are more focused on growth rather than near-term cash flows. Some of that pressure has eased over the past month. Netflix disclosed late Tuesday, saying it lost fewer subscribers last quarter than it had expected and forecast it would add 1 million net new subscribers in the current period. Its shares rose $14.81, or 7.4%, to $216.44 and are up 14% this week, on pace for their best weekly performance since July 2020. Among other notable earnings reports, marketing house Omnicom rose $2.65, or 3.9%, to $70.06 after it posted revenue that beat analysts’ expectations and raised its guidance. Oil-services firm Baker Hughes fell $2.33, or 8.3%, to $25.89 after its chief executive said he sees demand deteriorating over the next 18 months. Abbott Laboratories fell $1.70, or 1.6%, to $108.23 after reporting its nutrition sales were hit by a recall and manufacturing shutdown of some infant-formula products, though it raised its guidance.

In Asia, major indexes display a mixed trend on Thursday. In Tokyo, the Nikkei-225 is up 0.2 per cent after the Bank of Japan (BoJ) left its monetary policy unchanged as expected. The Shanghai Composite loses 0.4 per cent and in Hong Kong the Hang Seng Index edges lower, by 1.4 per cent. In Seoul, the Kospi adds 0.7 per cent.

U.S. bond yields were little changed to slightly higher on Wednesday, sending the 10-year back above 3%, as investors await the European Central Bank’s interest rate hike decision on Thursday and next week’s Federal Reserve policy meeting. The 10-year Treasury note rose by 2 basis points to 3.034%, as did the 2-year note, which closed at 3.25%.

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