Wallstreet closed higher on Wednesday’s trading session amid rising tensions between the US and China as well as concerns of a second wave of the coronavirus outbreak. On Wednesday, the US ordered China to close its consulate general in Houston, Texas within 72 hours.
China has condemned the decision asking the US to correct the mistake, adding that “otherwise, China will make a legitimate and necessary response.”
The DJIA closed 0.62% higher, the Nasdaq 100 was up 0.35% while the S&P 500 rose by 0.58%.
Tesla Q2 Earnings
Tesla’s Q2 revenue fell by 4.9% to $6.04 billion on a YoY basis. Total deliveries fell 5% to 90,891 in the same period.
Tesla’s free cash flow fell 32% to $418 million while net income for the period was $104 million, compared to a net loss of $408 million posted in the same period last year. Operating expenses fell 14% to stand at $940 million.
Speaking during the earnings call, CEO Elon Musk announced that the company will build its next Gigafactory in the vicinity of Texas capital of Austin. Musk specified that it will be constructed in a 2,000-acre site in Travis County, with the CyberTruck pickup expected to be made at the facility.
Microsoft Q4 Earnings
Tech giant Microsoft Corp. on Wednesday released its earnings for the quarter ended June 30, 2020, with revenue rising 13% YoY to $38.03 billion. Operating income rose 8% to $13.41 billion, while net income fell 15% to $11.20 billion.
Revenue from Productivity and Business Processes rose 6% to $11.8 billion, while Intelligent Cloud was up 17% to $13.4 billion. Personal Computing revenue grew 14% to $12.9 billion.
“The last five months have made it clear that tech intensity is the key to business resilience. Organizations that build their own digital capability will recover faster and emerge from this crisis stronger,” chief executive Satya Nadella said in a statement.