DE40: European indices extend bullish momentum 📈

• Technology Companies Recovering Losses After Recent Sell-offs
• Airbus and Adidas Results in the background

Overall Market Situation:

Wednesday's session on European stock markets brings a further attempt to resume the overall upward trend. The German DAX is currently gaining 0.39% intraday. At the same time, the French CAC40 is adding 1.31%. Investors are focusing today on CPI data from the eurozone and the results of Wall Street giants, which presented their results after the close of yesterday's session. Later, key aspects will include the FED's decision and the results of Meta Platforms.

Volatility currently observed in the broad European market. Source: xStation

The German benchmark DE40 is trading 0.33% higher during Wednesday's session. The index is still trying to stay above the key support level defined by the 100-day EMA (purple curve on the chart). A break below this zone and the closing of the intraday candle below it could open the way for deeper declines defined by the 23.6% Fibo retracement of the downward channel defined by the upward impulse that began in October 2023. The main resistance level remains the historical peak at 19,000 points. Source: xStation

News:

Adidas (ADS.DE) shares are up 1.5% after presenting more detailed second-quarter results following the earlier pre-release (July 16) and raising forecasts earlier this month. The German sportswear company saw a rebound in wholesale revenue and strong results across all regions, categories, and sales channels.

SECOND QUARTER RESULTS

• Gross profit EUR 2.96 billion, forecast EUR 2.94 billion
• Gross margin 50.8%
• Operating margin 5.9%, forecast 5.43%
• Revenue EUR 5.82 billion
• North America revenue EUR 1.30 billion, -6.9% y/y, forecast EUR 1.38 billion
• Latin America revenue EUR 673 million, +13% y/y, forecast EUR 608 million
• China sales EUR 822 million, +7.3% y/y, forecast EUR 837.1 million
• Net income from continuing operations EUR 211 million, forecast EUR 187.1 million
• Net income EUR 206 million, forecast EUR 150.3 million
• Cost of sales EUR 2.86 billion, forecast EUR 2.82 billion
• Other operating expenses EUR 2.64 billion, forecast EUR 2.67 billion
• Marketing expenses EUR 707 million, forecast EUR 682.5 million
• Operating overhead expenses EUR 1.93 billion, forecast EUR 1.97 billion
• Inventories EUR 4.54 billion, forecast EUR 4.73 billion

The company's shares are trading today at the highest levels observed since February 2022. Source: xStation

Airbus (AIR.DE) shares are up 4.5% today after the aircraft manufacturer announced adjusted EBIT for the second quarter that exceeded analysts' expectations.

SECOND QUARTER RESULTS

• Adjusted EBIT EUR 814 million, -56% y/y, forecast EUR 669.8 million
• Adjusted EBIT in the commercial aircraft segment EUR 1.45 billion, -14% y/y, forecast EUR 1.38 billion
• Adjusted EBIT loss in the defense and space segment EUR 798 million vs. profit EUR 42 million y/y, forecast loss EUR 709.1 million
• Adjusted EBIT in the helicopter segment EUR 159 million, +35% y/y, forecast EUR 140.8 million
• Revenue EUR 16.00 billion, +0.6% y/y, forecast EUR 16.01 billion
• Net income EUR 230 million, -78% y/y, forecast EUR 488.7 million

FIRST HALF RESULTS

• Commercial aircraft deliveries 323 planes, forecast 323
• Adjusted EBIT EUR 1.39 billion, -47% y/y, forecast EUR 1.12 billion
• Revenue EUR 28.83 billion, +4.2% y/y, forecast EUR 28.68 billion
• Net income EUR 825 million, -46% y/y, forecast EUR 915.5 million
• EPS EUR 1.04 vs. EUR 1.94 y/y, forecast EUR 1.16

ANNUAL FORECAST

• The company still sees adjusted EBIT at around EUR 5.5 billion, forecast EUR 5.69 billion
• The company still sees adjusted free cash flow at around EUR 3.5 billion, forecast EUR 3.61 billion
• The company still sees commercial aircraft deliveries at around 770 planes, in line with forecasts

The company's shares are currently testing the limit defined by the 50-day exponential moving average (blue curve). Source: xStation

Other news coming from individual DAX index companies. Source: Bloomberg Financial LP