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Wall St closed lower to start the trading week as investors digest the latest US inflation data. The Dow Jones closed 0.6% lower, the S&P 500 fell 0.2% whilst the tech-heavy Nasdaq gained 0.11% by the closing bell. US core PCE data was released on Friday, showing inflation rose 2.8% on a 12-month basis in February, which was in line with expectations. Europe and local markets were closed yesterday for Easter Monday celebrations. WHAT TO WATCH TODAY: __ ____ TRADING IDEAS: __ __
Wall St closed higher overnight as the S&P 500 recorded its best quarter since 2019, ending Wednesday’s trading session up 0.86%. The Dow Jones gained 1.22% and the tech-heavy Nasdaq closed just over half a percent higher. Over in Europe, markets closed slightly higher after a slow start to the session. The STOXX600 closed 0.1% higher with retail stocks closing higher whilst travel stocks fell 2.4%. Germany’s DAX rallied half a percent, the French CAC ended the trading session a quarter of a percent higher and over in the UK the FTSE100 closed flat, up 0.01%. Locally yesterday, the ASX200 ended Wednesday’s trading session half a percent higher with all but two sectors ending in the green. Gains were led by the consumer staples and health sectors which gained 1.35% and 1.28% respectively. In terms of economic news, February CPI data came out yesterday at 3.4%, the same as it previous result and slightly lower than the consensus of 3.5%. WHAT TO WATCH TODAY: __ ____ TRADING IDEAS: __ __
Wall Street extended its losses into Tuesday’s session as a morning rally quickly faded in afternoon trade with the Dow Jones ending the day down 0.08%, the S&P500 lost 0.28% and the tech-heavy Nasdaq fell 0.42%. Orders for long-lasting goods in the US rose 1.4% in February in data out yesterday which beat economists’ expectations of a 0.8% rise, which investors may have taken as a sign that inflation remains elevated in the US thus adding support for rates to remain on hold for a little while longer, especially after the slight uptick in CPI in the latest reading out of the US. Krispy Kreme shares soared 39% on Tuesday after the donut giant announced it would expand its partnership with McDonald’s, while Tesla rallied 5% in a rebound for the EV maker after a few months of negative sentiment from markets in 2024. In Europe overnight, markets closed slightly higher in the region as investors continue digesting key central bank moves in the region. The STOXX600 rose 0.3%, Germany’s DAX rose 0.67%, the French CAC added 0.41% and, in the UK, the FTSE100 climbed 0.17% on Tuesday. Across the Asia markets, it was mostly a green session across the board on Tuesday with South Korea’s Kospi hitting a 2-year high as investors assessed the latest batch of economic data. Japan’s annual B2B service inflation remained at 2.1% in February indicating companies continue passing on rising costs to customers. Singapore’s manufacturing output increased 14.2% in February from January’s 6.7% decline which boosted the local index to a 1.31% close on Tuesday and Hong Kong’s Hang Seng rose 1.1% yesterday. The local market started the week higher before retreating 0.41% on Tuesday taking lead from Wall Street’s losing session on Monday and on the back of local market sell-offs which were hardest felt by tech stocks on Tuesday as the sector closed the session down 1.55%. Westpac consumer confidence data for March also released yesterday weighed on the market sentiment as the reading for this month came in at -1.8% which is a sharp decline from the 6.2% reported in February and above economists’ expectations of a drop to minus 1.6% which signals consumer sentiment in market conditions is sliding and we are feeling the full bite of the currently elevated rates. Earlier in the week commodity-related stocks weighed on the key index, however, a rebound in the price of oil, iron ore and gold saw investors buy back into the miners yesterday. While the opposite story can be told for rate sensitive stocks like technology and real estate which started the week on a high note after a less-hawkish RBA statement was released last week, before these sectors declined on Tuesday. WHAT TO WATCH TODAY: __ __ TRADING IDEAS: __ __
Wall St started the week in negative territory as US equities took a breather from record territory with the Dow Jones ending Monday’s session down 0.41%, the S&P500 lost 0.31% and the tech-heavy Nasdaq declined 0.27%. United Airlines fell 3.4% after the Federal Aviation Administration announced it would be increasing its scrutiny of the carrier after a series of safety incidents. Over in Europe, markets closed mixed across the board on Monday as investors continued digesting central bank moves in the region to gauge how the battle against inflation is faring. The STOXX600 rose 0.04% to extend on its record close from Friday driven by oil and gas stocks rising on a rebound in the price of the two key commodities. Germany’s DAX rose 0.3% on Monday while the French CAC closed flat and, in the UK, the FTSE100 ended Monday’s session down 0.17%. Across the Asia markets overnight, it was mostly a sea of red as investors assessed the release of key inflation data for the region. Singapore and Malaysia both released key inflation reports that came in higher than anticipated while Tokyo’s inflation numbers are due to be released on Friday. Japan’s Nikkei fell 1.16% on Monday, Hong Kong’s Hang Seng fell 0.16%, and South Korea’s Kospi slid 0.4% at the closing bell. Locally yesterday, the ASX200 rallied 0.5% to push the key index above 7800 points again, led by a rise in interest rate sensitive sectors like technology and REIT stocks as optimism for interest rate cuts continues to rise. The rise in sentiment follows a statement released on the back of the RBA’s latest meeting indicating Australia’s central bank appears to be less hawkish than first though with regards to interest rate cuts. The rising price of oil prompted investors to buy back into the mining giants like Santos which added 1.1% and Woodside which rose 1.2% on Monday. Reports out of Fortescue that the mining giant is looking to develop its copper assets led to a 3.2% rise in the Andrew Forrest run mining company on Monday. WHAT TO WATCH TODAY: __ __ TRADING IDEAS: __ __
Despite a mixed session on Friday, Wall Street posted gains across the three key indices for last week with the Dow Jones recording its best week since December and the market is on track for a fifth consecutive month of gains. Investors took a slight breather on Friday after a strong week for equities following the Fed’s latest FOMC meeting where interest rates were held steady again. The Dow Jones fell 0.77% on Friday but added almost 2% for the week, the S&P500 fell 0.14% on Friday but gained 2.3% for the week, and the tech-heavy Nasdaq rose 0.16% on Friday and nearly 2.9% for the week. FedEx added more the 7% on Friday after posting adjusted earnings that beat analysts’ expectations, while Nike fell 6.9% on disappointing guidance and easing sales in China. Over in Europe, markets closed mostly higher in the region, even after stocks soared to an all-time-high on Thursday. The STOXX600 rose 0.02% on Friday as tech and travel stock losses weighed on the market gains. Germany’s DAX rose 0.15% on Friday while the French CAC fell 0.34%, and, in the UK, the FTSE100 rose 0.61% at the week’s end. The Swiss National Bank surprised markets on Thursday by lowering its core policy rate by 0.25 percentage points to 1.5% which marks the first major economy to cut interest rates in a sign key global economies are winning the battle of inflation and further cuts could be expected in the near future. The Bank of England held rates as expected on Thursday, however, signalled rate cuts could be on the horizon soon. Locally on Friday, the ASX200 lost 0.2% as a sell-off in commodity-related stocks, particularly energy stocks, weighed on the key index. For the week though, the ASX200 still managed to post a 1.3% gain. Declining prices of oil, iron ore and gold were the drivers of investors selling out of commodity-related stocks on Friday. Fisher & Paykel Healthcare rallied 7.7% on Friday after the company upgraded its earnings guidance range to NZ$260m to NZ$265m mainly due to strength in demand for the company’s hospital product group and OSA masks. WHAT TO WATCH TODAY: __ __ TRADING IDEAS: __ __
The iron ore industry has hit some turbulence. Prices have taken a nosedive this year, partly due to a slowdown in China – a big buyer of iron ore. This has influenced the Australian stock market, with mining giants like BHP and Rio Tinto feeling the heat. The US dollar and interest rates are also adding pressure. Discover what this all means for investors in this week’s Weekly Wrap video. In this week’s wrap, Sophia covers: • (0:11): why it may be worth keeping watch of iron ore stocks • (0:35): Australian miners sell-off – BHP, Rio Tinto, and Fortescue • (1:37): China’s economic slowdown and stimulus efforts • (2:25): the impact of interest rates and the US dollar on ore prices • (4:14): the most traded stocks & ETFs by Bell Direct clients • (4:46): economic data to watch next week.
Wall St closed higher overnight as the major averages rise to new record levels. The Dow Jones rallied 0.68%, the S&P500 closed 0.32% higher and the tech-heavy Nasdaq ended the trading session 0.2% in the green. Over in Europe, markets closed higher overnight as European stocks hit record highs following monetary policy decisions from the Bank of England and Swiss National Bank. The STOXX600 ended the trading session up 0.9% with nearly all sectors finishing in the green with technology stocks up 3.2%, whilst utilities fell 0.39%. Locally yesterday, the ASX200 closed 1.12% higher with the majority of sectors finishing in the green. Gains were led by the financial and consumer discretionary sectors which rose 1.74% and 1.5% respectively. This was slightly offset by the utilities sector which fell 0.59% by market close. Australian unemployment data was also released yesterday, down to 3.7% from the previous result of 4.1% and the consensus of 4%. WHAT TO WATCH TODAY: __ ____ TRADING IDEAS: __ __
Wall Street rallied overnight, with all three major benchmarks notching all-time closing highs, after the Federal Reserve announced that there will be three rate cuts before the end of the year. This comes after the Fed held rates at a 23-year high. In this week’s policy meeting, rates were left unchanged however the announcement saw a market rally, with the Dow Jones rising 400 points or 1.03% to a record close, the S&P500 up 0.89% and the Nasdaq gaining 1.25%. Financial stocks and tech stocks advanced the most. Yesterday, the Australian market closed in the red with tech, utilities, and consumer staples down the most, while energy gained. WHAT TO WATCH TODAY: __ __ __ TRADING IDEAS: __ __
Wall St closed higher overnight as the Dow closed more than 300 points higher by market close. The S&P 500 rose over half a percent, the tech-heavy Nasdaq ended the trading session up 0.39% and the Dow Jones rallied 0.83%. Over in Europe, markets closed higher as investors look to the start of the US Fed’s two-day policy meeting. The STOXX600 closed 0.26% higher with autos stocks rising 1.2%, whilst food and beverage stocks fell half a percent. Germany’s DAX rose 0.31%, the French CAC jumped 0.65% and over in the UK the FTSE100 ended Tuesday’s trading session 0.2% higher. Locally yesterday, the ASX200 ended the day 0.36% higher with gains lead by the materials and energy sectors of 2.11% and 1.98% respectively. This was offset by the consumer staples sector which lost 0.84% by market close yesterday. The RBA interest rate decision also came out yesterday, with it remaining at 4.35%, the same as its previous result. WHAT TO WATCH TODAY: __ ____ TRADING IDEAS: __ __
Wall St closed higher overnight as markets await the US Federal Reserve decision out later in the week. The Dow Jones climbed 0.2%, the S&P 500 closed 0.63% higher and the tech-heavy Nasdaq ended the trading session 0.82% in the green. In terms of US shares, Alphabet gained 4.6% after reports that Apple was in talks with Google to include the company’s Gemini AI in iPhones. Over in Europe, markets closed lower as investors look ahead to the US Federal Reserve meeting. The STOXX 600 closed 0.1% lower with telecoms falling 1.4%, whilst autos rallied 0.9%. Germany’s DAX closed slightly lower, down 0.02%, the French CAC lost 0.2% and over in the UK the FTSE 100 fell 0.06%. Locally yesterday, the ASX200 closed slightly higher, up 0.07% by market close. Gains were lead by the financial and materials sector which gained 0.56% and 0.25% respectively. This was offset by the real estate sector which lost 1.87%. WHAT TO WATCH TODAY: __ ____ TRADING IDEAS: __ __
Well, all three major US benchmarks closed lower last week, the second straight week of losses. This was off the back of inflation concerns which saw technology stocks come under pressure, ahead of the Fed’s next two-day policy meeting starting on Tuesday. The Dow Jones closed 0.5% lower, the S&P500 down 0.6% and the Nasdaq down 0.96%. European markets were also in the red, with investors treading carefully ahead of rate decisions this week by both the Federal Reserve and the Bank of England. And last week the Australian share market declined 2.25% Monday to Friday, with all sectors in the red, apart from Utilities and Real Estate. The materials and financials industry sectors declined the most. WHAT TO WATCH TODAY: __ __ __ TRADING IDEAS: __ __
The spotlight shone brightly on the US economy as investors eagerly awaited the release of key economic data this week. The data would shed light on the nations battle with inflation, a crucial factor influencing both the health of the worlds largest economy and the potential actions of the Federal Reserve regarding interest rates in the coming months. In this week’s wrap, Grady covers: __ __
Wall St closed lower overnight following the release of inflation data that came out higher than expectations. The Dow Jones fell 0.35%, the S&P500 lost 0.29% and the tech-heavy Nasdaq ended the day 0.3% in the red. US producer price index for February came out overnight, showing a 0.6% rise month on month, double the consensus and forecast of 0.3%. Over in Europe, markets closed lower following further inflation readings coming out of the US. The STOXX600 closed down 0.2% with media stocks ending the session 0.7% higher and mining stocks falling 1.4%. Germany’s DAX fell 0.11%, the FTSE100 fell 0.37% with the French CAC gaining 0.29%. Locally yesterday, the ASX200 fell 0.20% by market close yesterday. Losses were lead by the financial and consumer discretionary sectors which lost 1.88% and 0.73% respectively. This was offset by the materials sector which rallied 1.85% by the end of the trading session. WHAT TO WATCH TODAY: __ ____ TRADING IDEAS: __ __
US markets closed mixed overnight, with the Dow Jones closing slightly higher, just 0.1% in the green, while the S&P500 closed 0.2% lower and the Nasdaq down 0.5%, as the information technology sector slipped 1.1% with Nividia, Meta and Apple shares all lower. The US consumer price index, a broad measure of goods and services costs, increased 0.4% for the month and 3.2% from a year ago. The monthly measure was in line with expectations while the 12-month reading was slightly higher. European markets ended higher, following what was a mixed trading session, as investors considered the latest U.S. inflation data as well as U.K. gross domestic product. GDP increased 0.2% in line with forecasts. WHAT TO WATCH TODAY: __ __ __ TRADING IDEAS: __ __
Wall St closed higher overnight as stocks resumed the recent rally after key inflation data came in-line with expectations. The Dow Jones climbed 0.61%, the S&P500 traded 1.12% higher and the tech-heavy Nasdaq rose 1.54%. Investors took confidence in the slight rise in inflation through the latest CPI data, indicating core inflation rose 0.4% in February from January and 3.8% year-on-year, while the inflation rate in the US rose just 0.1% to 3.2% in February. Over in Europe, markets closed higher in the region as investors responded to the latest US inflation data report. The STOXX600 rose 1% driven by automotive stocks while Germany’s DAX rose 1.23%, the French CAC added 0.84% and, over in the UK, the FTSE100 gained 1.02% on Tuesday. British unemployment rate data came out yesterday indicated a rise to 3.9% for January from 3.8% in December and slowing wage growth which provide further supportive evidence for interest rate cuts to come. Locally yesterday, the ASX ended Tuesday’s rollercoaster session 0.1% higher after a morning rally was overturned in midday trade by a US-inflation data fear driven sell off, before settling the day up 0.1%. Gains were led by the information technology and utilities sectors which rose 1.15% and 0.88% respectively. This was offset by the energy sector which lost 0.77%. WHAT TO WATCH TODAY: __ ____ TRADING IDEAS: __ __
Wall St fell overnight as investors await important US inflation data out on Tuesday. The S&P 500 finished the day 0.11% lower, as did the tech-heavy Nasdaq which closed 0.41% in the red. Whilst the Dow Jones added 0.12% by the closing bell. These losses come as CPI data for last month will be released in the US on Tuesday with economists predicting CPI will rise 0.4% between January and February and 3.1% on an annual basis. Over in Europe, markets closed lower overnight to start the new trading week. The STOXX600 closed 0.4% lower with technology stocks losing 2.1% while food and beverage stocks added 0.3%. Germany’s DAX fell 0.38%, the French CAC lost 0.1% and over in the UK the FTSE100 gained 0.12%. Locally yesterday, the ASX200 closed the trading session down 1.82% with all sectors ending in the red. Losses were led by the materials and financial sectors which fell 2.56% and 2.17% respectively. WHAT TO WATCH TODAY: __ ____ WHAT TO WATCH TODAY: __ __
Wall St fell on Friday as the Dow Jones closed out its worst week since October losing 0.18% by the closing bell. The S&P 500 lost 0.65% and the tech-heavy Nasdaq fell 1.16%. US unemployment data was also released on Friday coming in at 3.9%, 0.2% higher than the forecast and consensus of 3.7%. In terms of US stocks, despite rising 6% over the week, Nvidia lost 5% in its worst session since last May. Over in Europe, markets closed mix following the European Central Bank’s inflation forecast and US jobs data release. The STOXX 600 closed 0.03% higher, led by the financial sector which gained 1%, whilst the technology sector lost 1.5%. Germany’s DAX closed 0.16% lower, as did the FTSE 100 which fell 0.43%, whilst the French CAC gained 0.15%. Locally on Friday, the ASX200 gained over 1% with all but the industrial sector finishing in the green. Gains were led by the financial and health sectors up 2.03% and 1.25% respectively. WHAT TO WATCH TODAY: __ ____ TRADING IDEAS: __ __
The stock market isn’t always smooth sailing, reacting not just to company performance but also to the ever-shifting tides of global events. Geopolitical tensions from ongoing wars to escalating cyber threats, can create uncertainty and market volatility. However, for investors, this doesn’t necessarily translate to negative outcomes. By understanding the risks and focusing on long-term strategies, investors can navigate these choppy waters and position themselves for continued growth. In this week’s wrap, Sophia covers: __ __
Wall St closed higher overnight as the S&P 500 and the Nasdaq hit new records. The Dow Jones rose 0.35%, the S&P 500 jumped just over 1% and the tech-heavy Nasdaq rallied over 1.5%. Over in Europe, markets closed higher overnight as the European Central Bank’s held its interest rates steady at a record 4% and revised inflation in 2024 to 2.3% from 2.7%. Germany’s DAX finished 0.71% higher, the French CAC gained 0.77% and over in the UK the FTSE100 ended the trading session 0.17% in the green. Locally yesterday, the ASX200 closed 0.39% higher as the vast majority of sectors finished in the green. Gains were led by the industrial and information technology sectors which rallied by 1.33% and 1.03% respectively. This was slightly offset by the energy sector which lost 1.15% by the closing bell. WHAT TO WATCH TODAY: __ ____ Trading ideas: __ __
It was a positive session on Wall Street overnight, with the market turning a corner after a few consecutive losing sessions. with the Dow Jones up 0.2%, the S&P500 up 0.5% and the Nasdaq up 0.6%. European markets also advanced with all major benchmarks closing in the green. WHAT TO WATCH TODAY: __ __ __ TRADING IDEAS: __ __
Wall St fell overnight as Apple shares declined, pulling technology stocks down. The Dow Jones and the S&P 500 lost just over 1% each with the tech-heavy Nasdaq ending the session 1.65% in the red. Apple lost 3% following the release of a report from Counterpoint Research that showed iPhone sales in China plunged in the first six weeks of 2024. Other tech stocks such as Netflix and Microsoft also fell by more than 2% each with Tesla following suit, losing 3%. Over in Europe, markets closed lower as they struggle to find positive momentum with investors awaiting the ECB meeting later in the week. The STOXX600 ended the day down 0.27% with the majority of sectors closing lower with mining stocks falling 0.9% whilst the utilities sector added 1.8%. Germany’s DAX closed 0.1% lower, the French CAC fell 0.3% and over in the UK the FTSE100 closed 0.08% in the green. Locally yesterday, the ASX200 fell 0.15% with the consumer discretionary and consumer staples sector leading losses down 1.21% and 1.05% respectively. This was offset by the health sector which gained 1% by the closing bell. WHAT TO WATCH TODAY: __ ____ TRADING IDEAS: __ __
Wall St closed lower overnight, despite a rally in AI stocks as part of the artificial intelligence boom. The S&P500 lost 0.12%, the Dow Jones fell 0.25% and the tech-heavy Nasdaq ended the trading session 0.41% lower. These losses were pulled back by AI company Nvidia, which soared 18% as the S&P Dow Jones indices revealed it would join the S&P 500 later this month. Over in Europe, markets closed slightly lower as investors await the European Central Bank meeting. The STOXX600 closed 0.07% lower with most stocks closing in the red including mining stocks which fell 1.24% with tech stocks gaining 0.8%. Germany’s DAX closed 0.11% lower, the French CAC gained 0.28% and over in the UK the FTSE100 closed just over half a percent down. Locally yesterday, markets closed 0.13% lower as the majority of sectors finished in the red. Losses were led by the health and utilities sector which lost 0.78% and 0.77% respectively. This was slightly offset by the real estate sector which gained 1.34%. WHAT TO WATCH TODAY: __ ____ TRADING IDEAS: __ __
Well, it was a positive session on Wall Street, with all three major benchmarks closing in the green on Friday. The tech-heavy Nasdaq surged more than 1%, to an all-time high, surpassing its 2021 record as investors look to tech stocks amid the AI boom. Meanwhile the Dow Jones gained 0.23% and the S&P500 gained 0.8%. Locally, the ASX200 ended the week with a 1.3% gain, with the tech sector leading the market, up 8% Monday to Friday. WHAT TO WATCH TODAY: __ __ __ TRADING IDEAS: __ __
As we approach the close of the February 2024 reporting season, 346 companies have shared their results, offering a mixed bag of beats, meets, and misses. While investor sentiment has been volatile, with share prices reacting dramatically to both positive and negative news, brokers have been more cautious, issuing slightly more downgrades than upgrades. So, what were the key themes that emerged during the first half that will shape the second half of the year? In this week’s wrap, Grady covers: __ __
Wall St closed higher overnight as investors shrugged off unfavourable key inflation data to post gains across the key indices which remain in line for a winning month. The inflation data reading came in the form of US core PCE prices which excludes food and energy increasing by 0.4% from the previous month, while rising at an annual rate of 2.8%, indicating inflation in the world’s largest economy remains sticky. GDP growth data was also released on Wednesday, indicating the US economy grew by 3.2% in Q4 which was slightly less than economists were expecting and well below the 4.9% growth recorded in Q3. The Dow Jones ended Thursday’s trading session 0.15% higher, the S&P 500 gained just over half a percent and the tech-heavy Nasdaq rallied 0.84%. Over in Europe, markets closed slightly higher as investors reacted to key inflation reports. The STOXX600 closed 0.1% higher with construction stocks leading gains, up 1.2% whilst healthcare and food and beverage stocks both fell 0.7%. Germany’s DAX closed 0.44% higher, the French CAC closed down 0.34% and over in the UK, the FTSE100 ended the trading session 0.07% in the green. Locally yesterday, the ASX200 closed half a percent higher with all but the utilities sector ending the trading session higher. Real estate and the consumer discretionary sectors lead gains up 1.73% and 1.29% respectively whilst the utilities sector fell 0.33%. WHAT TO WATCH TODAY: __ ____ TRADING IDEAS: __ __
Wall St has closed lower for the third straight day as investors await Important inflation data coming out later in the week. The Dow Jones lost 0.06%, the S&P500 dropped 0.17% and the tech-heavy Nasdaq ended the trading session 0.55% lower. Over in Europe, markets closed lower as cautious investment sentiment continued on from earlier in the week. The STOXX600 closed 0.3% lower with the majority of sectors ending the trading session in the red. Losses were led by technology stocks which lost 1.4%, whilst auto stocks rose by almost 1%. Germany’s DAX gained 0.25%, the French CAC gained 0.08% and over in the UK the FTSE100 closed 0.76% lower. Locally yesterday, the ASX200 closed 0.03% lower with the consumer staples sector leading losses, down 0.81%. This was offset by the information technology sector which rallied 2.88% by the closing bell. Also yesterday, CPI data for January was released with it staying steady at 3.4%, the same as the previous month, 0.2% lower than the consensus and forecast of 3.6%. WHAT TO WATCH TODAY: __ ____ TRADING IDEAS: __ __
Wall Street reversed morning losses to close mostly higher on Tuesday as investors prepare for the release of key inflation data later this week. The Dow Jones fell 0.25% while the S&P500 added 0.17% and the tech-heavy Nasdaq gained 0.37% on Tuesday. Retail giant Macy’s is up more than 3% during the session after announcing it would close around 150 of its struggling bricks and mortar retail stores following a revenue miss in the prior quarter. In Europe overnight, markets closed mixed in the region as investors await key inflation data out later this week to determine how key global economies are faring in the high interest rate environment. The STOXX600 reversed Tuesday’s losses to close 0.2% higher, buoyed by mining stocks rising 1.7%. Germany’s DAX ended the day up 0.76%, the French CAC rose 0.23%, and, in the UK, the FTSE100 closed the session virtually flat. Across the Asia markets, trading was mixed on Tuesday with Hong Kong’s Hang Seng rising just shy of 1% while Korea’s KOSPI index fell 0.83% and Japan’s Nikkei closed flat. China’s CSI 300 index rose 1.2% as shares of Chinese electric vehicle maker Li Auto soared over 22% after the company reported a 2068% increase in net income in Q4 compared to a year ago. The local market recovered from a morning sell-off to close Tuesday’s session 0.13% higher as a 2.15% surge in consumer staples stocks more than offset losses among real estate and utilities companies. The materials sector was also weighed down yesterday as the big iron ore miners were sold off on the declining price of iron ore. As the theme goes lately on the local market, reporting season results dominated share market moves yesterday. Supermarket giant Coles rallied yesterday after releasing a strong first half result including a 3.7% jump in sales revenue to $22.2bn, and the outlook for momentum to continue into the second half with sales up 4.9% during the first 8-weeks of the second half already. A stronger-than-expected first half result also prompted investors to send shares in Aussie plumbing parts and services company, Reece, rocketing over 18% yesterday. The company revealed a 2.5% rise in sales revenue, a 6% increase in NPAT and declared an interim dividend of 8cps. Payment service providers like Zip Co and Tyro Payments both posted beats across their respective first half results, however, investors took the opportunity to collect some profits in the days after the results were released as both companies faced turbulence over the last few years during the rising interest rate and uncertain economic environment. WHAT TO WATCH TODAY: __ __ TRADING IDEAS: __ __
The ASX started the week up 0.1% at the closing bell on Monday as investor sentiment was boosted by some strong corporate earnings results and the local index took lead from Wall Street’s record close on Friday. The energy sector weighed on yesterday’s gains following a decline in the price of oil overnight. The consumer discretionary sector on the other hand was the top performer yesterday as Wesfarmers rose 1.5% while fashion jewellery leader Lovisa rallied a further 4.5% after releasing strong first half results late last week. Kogan.com also surged 23.7% after reinstating its dividend and returning to profitability in the first half of FY24 against challenging headwinds of slowing consumer spend. Reporting season continued yesterday in the final weeks of earnings results being released locally. 251 companies have reported so far with 91 beating expectations, 93 meeting expectations and 67 missing expectations. TPG Telecom shares tanked over 10% after the IT internet and communications company reported annual net profit shrunk to $49m from $513m a year earlier amid rising costs. Endeavour Group was in a similar boat yesterday as investors also hit the sell button after the alcohol and hotels retailer reported its net profit fell 3.6% over the first half due to higher financing costs. Over in the US today overnight, stocks reversed morning gains to close lower following record setting closes for the Dow and S&P500 on Friday and as investors await the release of key inflation data out in the region later this week. The Dow Jones fell 0.16% the S&P500 dropped 0.38% and the tech-heavy Nasdaq posted 0.13% decline on Monday. On the back of Nvidia’s blockbuster results out last week, investors are assessing whether the AI momentum can last, given economic and inflation risks continue to linger, and later this week when personal consumption expenditures data is released, we will gauge the impact on the AI thematic. In Europe overnight, markets started the week in mostly negative territory as investors look ahead to key global inflation data out later this week to determine the rate outlook for key economies. The STOXX600 fell 0.4% following a record close last week, weighed down by the mining and utilities sectors. Germany’s DAX rose 0.02% on Monday, the French CAC fell 0.46% and, in the UK, the FTSE100 lost 0.3%. Across the Asia markets, Japan’s Nikkei 225 extended its rally to a new all-time high on Monday while China markets snapped a 9-day winning streak to close 1.04% lower as investors await the release of key economic data in the region including China’s manufacturing purchasing managers’ index to gauge how economic recovery in the region is faring. WHAT TO WATCH TODAY: __ __ TRADING IDEAS: __ __
Wall Street ended Friday’s session with a record close across the Dow Jones and S&P500 however the tech-heavy Nasdaq fell 0.28%. For the week, the Dow Jones added 1.3%, the S&P500 rallied 1.66% and the Nasdaq rose 1.4%. On the corporate earnings front, Afterpay parent company Block surged 16% after releasing fourth-quarter results that topped Wall Street estimates. Used car retailer Carvana also soared 32% after announcing it expects retail units to grow for the remainder of 2024. While the tech juggernaut rally continues on the back of Nvidia’s stellar results released on Thursday, some brokers and industry experts believe there is still room for growth for the big tech stocks over the months ahead. Over in Europe, markets in the region closed higher on Friday as corporate earnings boosted investor sentiment against the release of some unfavourable economic data. The STOXX600 rose 0.4% on Friday, Germany’s DAX added 0.28%, the French CAC climbed 0.7%, and, in the UK, the FTSE100 rallied 0.28%. Germany’s economy contracted 0.3% in the fourth quarter indicating the deepening of Germany’s economic woes as the country still battles with high inflation. In the UK, consumer confidence dipped in February as high inflation weighs on consumer optimism of an economic rebound in the near future. Across the Asia markets on Friday, it was a mostly green finish with China stocks rising for a 9th straight session. Fresh property price data in China showed declines in property prices in the region are easing which boosted sentiment for a recovery in China’s struggling property market. Locally on Friday, the ASX200 rose 0.4% as the tech sector boosted the market with a 1.5% rally on the back of Nvidia’s results and strong growth projections for technology companies for the remainder of 2024. Aussie Broadband shares soared over 18% on Friday after the internet provider beat forecasts in the first half, while Jumbo Interactive shares rallied 9% after also beating expectations for the first half. WHAT TO WATCH TODAY: __ __ TRADING IDEAS: __ __
As we end week 3 of the local reporting season calendar, 159 companies have reported their earning results, with 57 beating expectations, 60 meeting expectations and 42 missing expectations. 22 companies have been upgraded by brokers, while 26 were downgraded, mostly due to slowing earnings growth and cost management inefficiencies across the first half. So, what were the market movers this week? In this week’s wrap, Grady covers: __ __
