The DAX index is in the green today as traders react to the ongoing earnings season. The index is trading at €13,200, which is higher than yesterday’s low of €13,070. Other indices in Europe are also in the green, with the FTSE 100, CAC 40, and Stoxx 50, rising by 0.73%, 0.78%, and 0.80% respectively.
Daimler, the maker of Mercedes Benz, is the best-performing stock in the DAX index today. It has jumped by more than 5.80% after the company released a better quarter than what analysts are expecting. The company expects earnings before interest and taxes and cash flow to be positive this year.
Analysts were expecting these numbers to stay negative because of the impacts of the virus. The company expects to make a loss of more than $2 billion in the second quarter. It also expects to save on costs by slashing about 20,000 jobs. This restructuring will be worth about $2 billion.
Daimler shares are trading at €41.65. As a result, other automakers have also bounced, with BMW, Volkswagen shares rising by 3.73% and 2.29%, respectively. Similarly, shares of Continental, a leading supplier of tyres rose by 2.05%.
Covestro, another company in the DAX index, reported a loss in the second quarter. The firm reported a loss of €52 million after making a revenue of €189 million. Its EBITDA fell by 72.8%. Covestro share price is down by 2.47%.
Apart from automobiles, other top gainers in the DAX index are Fresenius, Bayer, Beiersdorf, Infineon, and Merck. All these shares are up by more than 1%. On the other hand, the worst performers in the DAX are E.ON, Deutsche Boerse, Vonovia, and SAP, that are down by less than 0.50%.
The DAX index is in its fifth consecutive day of gains. It is trading at €13,200, which is the highest it has been since February this year. The price is also slightly above the 50-day and 100-day exponential moving averages.
Also, the DAX is trading above the 78.6% Fibonacci retracement level. This retracement is drawn by connecting the highest and lowest levels this year. Therefore, the upward trend is likely to continue since bulls seem to be in control.
The DAX is also in the fifth wave of Elliot Wave impulse pattern. This is further evidence that the price has more upside to go before it forms a corrective wave.
On the flip side, a decline below the 78.6% retracement at €12,575 will mean that there are more sellers in the market.