Morgans Financial Limited: Recent Episodes
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Morgans is Australia's largest national full-service retail stockbroking and wealth management network with more than 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices across all states and territories in Australia.
All three major US equity indices retreated overnight, with the Dow Jones snapping a five-session winning streak, as investors paused to consolidate gains following a strong rally that had propelled markets to fresh record highs.
US equity markets were mixed overnight, despite the Dow Jones rallying to a third consecutive record close. The Dow gained +263.24 points (+0.49%), supported by strong corporate earnings, with Amgen (+4.57%) and Walt Disney (+3.65%) leading gains. Other notable performers included Nvidia (+3.43%), Sherwin-Williams (+2.24%) and Nike (+2.22%), while Alphabet (-4.03%) and Chevron (-2.10%) were among the index's weakest performers.
2% and were two of just five components in the 30-stock index that settled in the red. Chief Executive Officer (CEO) Jeff Bezos filed to sell ~15M shares worth ~US$4B a day after Amazon joined the US$3 trillion market capitalisation club for the first time.
•US equity markets advanced on Friday (31 July) to cap a volatile week – Dow rose +277-points or +0.53%. Amazon.com Inc soared +15.32% after posting its biggest quarterly revenue growth in over four years that helped alleviate investor concerns about potential overspending on artificial intelligence (AI) data centres. ‘Magnificent Seven’ mega capitalisation technology peers Alphabet Inc (+6.73%), Microsoft Corp (+3.02%) and Nvidia Corp (+2.93%) also posted solid gains. However, Apple Inc shed -7.35% after warning that supply constraints would hurt growth
3%. However, Salesforce Inc -4.07%, snapping a four-session losing streak amid a broader sell-off for software stocks following a recent resurgence.
Co (-3.53%) were among the worst performing Dow components overnight. However, Salesforce Inc (up +3.79%) extended its rally into a fourth straight session that has lifted the client relationship management software group +18.7% over that stretch.
US equity markets mostly firmer, underpinned by several strong corporate earnings releases, although semiconductor stocks remained under pressure. Dow up 537 points or just over 1%, booking its biggest single session gain in four weeks. IBM up 5.2% and Salesforce up 4.6% among the leading performers in the 30 stock index.
P 500 companies slated to report, including nine Dow components), with oil prices dropping sharply following reports of a ceasefire between the US and Iran while semiconductor stocks remained under pressure – Dow rose +263-points or +0.51%. Salesforce Inc (up 6.07%) was the leading performer in the 30-stock index. Apple Inc – which releases its second quarter result on Thursday night AEST (30 July) - rose +1.17% to a record closing high of US$336.91 and touched a record intra-day high (US$339.57), usurping NVIDIA Corp (down -4.99%) as the largest company by market capitalisation. Apple last held the top spot at the close on 2 May, 2025. NVIDIA fell following a WSJ report that it is in talks with OpenAI to guarantee US$250B in financing for a massive Ohio data centre project, raising concerns in some quarters around circular funding.
US equity markets fell sharply as oil prices continued to soar and mega cap technology names sold off amid concerns around the level of AI spending. Dow down 507 points or almost 1%. Google parent Alphabet down 6.9%
P500 rose +0.89% to book its best one-day gain since 29 June. Information Technology rose +2.35% to lead nine of the eleven primary sectors higher. Consumer Staples (down -1.01%) and Communication Services (-0.85%) sat at the foot of the primary sector leaderboard.
2%. Magnificent Seven’ mega-capitalisation technology names Microsoft Corp (up +2.15%), Amazon.com Inc and Google-parent Alphabet Inc +1.51% the leading performers in the 30-stock index.
US equity markets firmer as investors digested another round of second quarter corporate earnings releases and weaker-than-expected wholesale inflation figures – Dow added +150-points or +0.29%, with the four (4) members of the ‘Magnificent Seven’ cohort of mega-capitalisation stocks that sit in the 30-stock index – Apple Inc (up +4.01%), Amazon.com Inc (+3.02%), Microsoft Corp (+2.78%) and Nvidia Corp (+0.33%) – all advancing. Cisco Systems Inc (down -4.54%) was the worst performing Dow component overnight.
US equity markets logged modest gains as investors balanced rising US Iran tensions against cooler than expected June inflation data and a wave of major bank earnings.
3%. Salesforce Inc rallied +4.84% to be the leading performer in the 30-stock index. Apple Inc rose +0.63% to US$317.31 and touched a record high (US$323.45), with analysts at Citigroup lifting their target price on the technology giant to US$365 from US$315 previously, noting they believe “Apple’s ability to implement selective price increases will help offset margin pressures, while its premium brand and loyal customer base should limit demand weakness.” They also noted that the iPhone 18 launch in September could be an important catalyst that bolsters investor sentiment.
US equity markets mostly weaker on Friday as attention turns to corporate earnings this week. Dow climbed 150 points or 0.3 of a percent. Nike with a 3.7% rally while IBM fell 2.6%.
US equity markets weaker after President Trump said the ceasefire with Iran was over, sending oil prices soaring to three-week highs. Dow down 577 points, or 1.1%. American Express and sherwin-williams Co. falling over 3%.On the upside, Nvidia Corp up 3.7%, leading performer in the 30 stock index after the Information reported that China will allow top AI companies including Alibaba, ByteDance and DeepSeq to buy a limited amount of Nvidia's H200 chips.
US equity markets weaker amid a fresh rotation out of semiconductor stocks into areas like healthcare and financials – Dow fell -131-points or -0.25% to 52,925.15 after scaling a fresh record intra-day high of 53,289.30 earlier in the session. Caterpillar Inc fell -3.07% to be the worst performer in the 30-stock index after announcing that it had acquired Skycatch, which it described as “a leading provider of spatial data capture, processing and analysis solutions for the mining industry.” Some analysts also cited a broker downgrade to European power generation equipment provider Siemens Energy (see below) as a drag on Caterpillar and GE Vernova Inc (-6.51%). Chevron Corp (up +3.52%) was the leading Dow component, tracking a spike on crude markets.
2%. Microsoft Corp announcing it would cut ~4,800 jobs or ~2.1% of its global workforce.
U.S. stocks closed mixed on Thursday, with the Dow Jones Industrial Average gaining 594.83 points (+1.14%) and recording its 20th record close of 2026, as investors rotated into more defensive and cyclical sectors ahead of the extended July 4 holiday weekend.
•US equity markets weaker to open the new second half of the calendar year.•Dow dipped -14-points or 0.03% after booking back-to-back record closing highs and just failing to secure its 20th record closing high of the year.
US equity markets rallied on Tuesday to close out a strong quarter, with the Dow Jones capping its best half of the year since 2021 and registering a record closing high for the second straight day.
P Dow Jones Indices to its marquee stock indexes last week. Alphabet is still tracking for its worst month since February of last year, logging weekly declines for six of the past seven weeks. It marks a sharp reversal from May, when the company briefly eclipsed Nvidia Corp (+1.27%) in after-hours trading to become the world’s most valuable company by market capitalisation. Caterpillar Inc (+3.58%) and Cisco Systems Inc (+3.45%) both rose ~3.5%.
4BC Step Outside with Paul Burt - Sam Warriner Interview 13 June 2026 by Morgans Financial
3%. International Business Machines (IBM) Corp rose ~4% in extended trading (after rising +1.25% in the regular session) after President Trump signed executive orders aimed at accelerating quantum research, laying the groundwork for federal agencies to adopt the technology and strengthen US defences against cyberattacks.
US equity markets and bond markets were CLOSED on Friday (19 June) for Juneteenth. The US corporate calendar this week sees cruise operator Carnival Corp, semiconductor group Cerebras Systems Inc, FedEx Corp and KB Home Inc release quarterly results on Tuesday night AEST (23 June)., Micron Technology Inc and PayChex release quarterly results on Wednesday night AEST (24 June). Darden Restaurants and Winnebago Industries release quarterly results on Thursday night AEST (25 June).
US equity markets rallied sharply ahead of the holiday long weekend, underpinned by fresh gains for semiconductor stocks and as investors shrugged off concerns around rising interest rates following the Federal Reserve’s latest monetary policy meeting – Dow added +72-points or +0.14%, with Caterpillar Inc (up +3.13%) the leading performer in the 30-stock index. International Business Machines (IBM) Corp lost -5.05%. Salesforce Inc fell -2.09% to extend the client relationship management software company’s losing streak into a 13th consecutive session.
US equity markets closed mixed overnight– Dow rallied +329-points or +0.64% to a fresh record closing high of 51,999.67 after scaling a record intra-day peak of 52,190.29.
3%. According to a preliminary filing with the Securities and Exchange Commission (SEC), Nvidia plans to raise debt across seven tranches, with maturities between 2028 and 2056. Reuters reported that the chip maker is looking to issue US$20B worth of bonds, which would mark Nvidia’s first corporate bond sale since 2021, when the company raised US$5B.
US equity markets retreated, breaking a five session stretch of record closing highs for the three benchmark indices as oil prices and bond yields climbed. Dow was down 621 points or 1.2%. IBM down 7.2% to be the worst performer in the 30 stock index. Honeywell and Salesforce both fell 5.1%, while all of American Express, Boeing, Microsoft, and Nvidia fell over 3%. On the upside, Amgen and Walmart both gained over 3%. US Central Command, or CENTCOM, said that Iranian drones unsuccessfully attempted to attack American forces in Kuwait.
The three (3) main US equity benchmarks opened the new week and month with fresh record closing highs despite a fresh jump in oil prices, with technology stocks (particularly software names) continuing to drive the gains – Dow inched +46-points or +0.09% higher to 51,078.88. Salesforce Inc (up +9.68%) and International Business Machines (IBM) Corp (+7.60%) were the leading performer in the 30-stock index for a second session running.
The three (3) main US equity benchmarks climbed to fresh record intra-day and closing highs for a third straight session on Friday (29 May) to cap another strong month as technology shares continued to lead the market higher and crude prices eased – Dow rallied +363-points or +0.72% to 51,032.46.
Co -2.43% after Chief Executive Officer (CEO) Jamie Dimon warned that expenses this year could be US$1B higher than estimated. Nvidia Corp -1.05%
P500 and Nasdaq booked fresh record closing highs as equity and bond markets resumed trading following the Memorial Day long weekend, with a rally in memory-chip companies overshadowing fresh uncertainty around the Middle East peace negotiations – Dow eased -118-points or -0.23%. Chevron Corp (down -3.51%) and UnitedHealth Group Inc (-2.99%) were the worst performers in the 30-stock index. Caterpillar Inc rallied +3.26%.
1% higher this morning AEST amid building optimism around a resolution to the US-Iran conflict and a re-opening of the Straight of Hormuz.
Co rallied +5.64% to be the leading performer in the 30-stock index following a report by STAT News that its lung cancer treatment being developed with China-based Kelun-Biotech, sacituzumab tirumotecan, cut tumour progression risk by 65% and also yielded a survival benefit in a Phase 3 study conducted in China. The drug was used on patients in combination with Merck’s Keytruda, the company’s immunotherapy used to treat a wide variety of cancers. However, Nvidia Corp (down -1.9%) declined for a second session running following the release of its first quarter result after the close last Wednesday (20 May).
US equity markets advanced and shaped to cap another strong week ahead of the holiday long weekend despite heightened volatility – Dow gained +276-points or +0.55% to a record closing high of 50,285.66. International Business Machines (IBM) Corp soared +12.43% after the company said it would receive a US$1B CHIPS and Science Act award from the Commerce Department to build a quantum chip foundry. The Wall Street Journal reported that the U.S. government will award US$2B in grants to nine firms operating in the quantum computing space, lifting a host of companies in the wider sector. Nvidia Corp fell -1.77% despite the world’s largest market capitalisation reporting better-than-expected headline numbers for the first quarter after the close of the previous session. Part of the drag on Nvidia’s shares was attributed to investors seeking to build cash reserves ahead of pending initial public offerings (IPO) by SpaceX, OpenAI and Anthropic
US equity markets rallied as oil prices and Treasury yields fell sharply amid fresh optimism that the conflict in the Middle East could soon be resolved – Dow gained +645-points or +1.31%. Goldman Sachs Group Inc +5.75% was the leading performer in the 30-stock index, while Boeing Co (+3.34%) and Nike Inc (+4.17%) were among the leading components.
2%. Walmart Inc (up +0.64% to US$134.20) set record intra-day (US$135.155) and closing highs, with the world's largest retailer skated to post its first quarter result on Thursday night AEST (21 May).
3% for a second consecutive session. On the downside, Caterpillar Inc fell -2.74%. Nvidia Corp (down -1.33%), with Chief Executive Officer (CEO) Jensen Huang conducting an interview with Bloomberg Television days after he joined President Trump’s for a two-day summit in Beijing. Mr Huang said that his sense is that “over time the [China] market will open,” and noting that he didn’t discuss directly with Chinese officials the company’s effort to sell its H200 AI chips to customers in China. Nvidia is slated to post its first quarter result after the close of trading on Wednesday (20 May).
50,000 for the first time since 11 February and settling just shy of its all-time closing high reached on 10 February (50,115.67). Cisco Systems Inc jumped +13.41% to be the leading performer in the 30-stock index after the networking giant reported better-than-expected adjusted earnings per share (EPS) and revenue for the fiscal third quarter after the close of the previous session and provided upbeat guidance for the current quarter. Nvidia Corp rallied +4.39% to a fresh record closing high of US$235.74 after Reuters reported that the U.S. has cleared about 10 Chinese firms to purchase Nvidia’s H200 chip, though no deliveries have been made yet. Nvidia Chief Executive Officer (CEO) Jensen Huang is among US corporate executives attending a summit in China with President Trump. Boeing Co after President Trump told Fox News that China has agreed to buy 200 Boeing jets, disappointing analysts who were expecting up a larger order.
1.5%. Walt Disney Co added +0.56% a day after after posting a better-than-expected first quarter result, underpinned by a strong performance from the company’s streaming and theme park businesses.
P500 and Nasdaq booked fresh record intra-day and closing highs amid a fresh rally for technology stocks and as oil prices retreated – Dow rose +356-points or +0.73%. Caterpillar Inc (+3.41%) was the leading performer in the 30-stock index and touched a record high along with Amazon.com Inc (up +0.55%).
2%. Salesforce Inc rallied +4.13% to be the leading performer in the 30-stock index on Friday (1 May). Apple Inc +3.24% after the technology giant’s first quarter result released after the close of the previous session topped Wall Street forecasts, thanks in part to strong sales of its iPhone 17.
2%. Visa Inc jumped +8.26% after the world's largest payment processor reported much stronger-than-expected earnings per share (EPS) for the first quarter after the close of the previous session.
P500 and Nasdaq retreated from record highs as oil prices continued to climb and as investors eyed a huge night ahead on the corporate earnings front – Dow slipped -26-points or -0.05%. Sherwin-Williams Co -3.52%
US$5 trillion. The stock is still below its all-time intra-day high of US$212.19. Amazon.com Inc rose +3.49% to a record closing high of US$263.99 following news that it will supply its Graviton processors to Facebook parent Meta Platforms Inc (+2.41%) to support the social media giant’s agentic artificial intelligence (AI) workloads
P 500 and Nasdaq Composite briefly printed fresh record levels before reversing, pressured by weakness in software and broader technology names, which weighed on overall market sentiment.
P500 and Nasdaq booking fresh record closing highs after President Trump announced an indefinite extension to the ceasefire with Iran – Dow rose +341-points or +0.69%.
US equity markets settled with modest declines as uncertainty around the prospects of U.S.-Iran negotiations weighed on investor sentiment – Dow dipped -5-points or -0.01%. Apple Inc (up +1.04%) confirmed that senior vice president of hardware engineering John Ternus is succeeding Tim Cook as Chief Executive Officer (CEO), with Mr Cook to assume the role of executive chairman on 1 September. It marks the first CEO transition for Apple since Mr Cook succeeded Steve Jobs at the helm in 2011.
Co Inc (+3.13%). Chevron Corp fell -2.21%, tracking weaker crude prices and one of just three Dow components to settle in the red.
US equity markets were all stronger overnight after President Trump stated Israel and Lebanon had entered into a 10-day ceasefire, potentially paving the way for a broader peace agreement in the region. The Dow was up 118 points or +0.24% to 48,578 points.
US equity markets climbed and oil prices retreated amid signs of progress in U.S.-Iran peace talks, while investors also digested cooler-than-expected wholesale inflation figures – Dow rose +318-points or +0.66%. Nvidia Corp gained +3.8% to US$196.51 to book a tenth consecutive session advance - the artificial intelligence chip giant’s longest such winning streak since 2023 and one that has lifted the stock +17.66% over that stretch. The latest gain came a day after the company denied a report that it was seeking an acquisition of a large company that would “reshape the PC landscape.” Nvidia also announced a new family of open-source models overnight that the company it’s calling Ising, aimed at accelerating the adoption of quantum computing. Nvidia sits ~% below its all-time high of US$212.19 (adjusted for a 10-for-1 stock split that occurred in 2024) logged in October last year. Amazon.com Inc (+3.81%) extended its rally into a seventh straight session to record its best seven-day gain (+17.46%) since August 2022, with the company announced the acquisition of satellite operator Globalstar Inc (+9.63%) in a deal valued up to US$11.6B. Globalstar’s technology allows direct-to-device connectivity, meaning that consumer devices can communicate directly with satellites without additional equipment. The move could help Amazon grow its Leo satellite internet network and compete with Starlink, the satellite internet service of Elon Musk's SpaceX. Amazon also announced an agreement with Apple Inc (down -0.14%) for its Amazon Leo network to power existing and future satellite services for the iPhone and Apple Watch.
US equity markets settled mostly weaker on Friday (April) as investors eyed diplomatic talks over the weekend that were the highest level negotiations between Washington and Tehran since the 1979 Islamic revolution and that sought to build on the two-week ceasefire negotiated last week – Dow lost -269-points or -0.56%. Nike Inc fell -3.14% and hit a 12-year low. The company announced chief innovation officer, Tony Bignell, was departing the company “to pursue his creative and philanthropic passions” less than a year after Chief Executive Officer (CEO) Elliot Hill installed him in the role.
P500 and Nasdaq booked a seventh consecutive session of gains, reversing opening declines after Israeli Prime Minister Benjamin Netanyahu said he has given an instruction for Israel to begin talks with Lebanon that would also include the disarming of Hezbollah, which is also linked to Iran.
US equity markets soared and oil prices tumbled after President Trump announced after the close of the previous session that the U.S. and Iran had agreed to a two-week ceasefire – Dow rallied +1,325-points or +2.85%, the 30-stock index’s best session since April 2025, when President Trump first backed down from the severity of his initial tariff announcement. Caterpillar Inc (up +6.51%), Home Depot Inc (+5.46%) and Goldman Sach Group Inc (+4.81%) were the leading trio of Dow components overnight.
US equity markets logged modest gains, climbing in the final hour of trading amid hopes that a proposal brokered by Pakistan may result in an eleventh-hour deal between the U.S. and Iran– Dow slipped -85-points or -0.18%, with Nike Inc (down -3% and trading at lows not seen since October 2014)
US equity markets made a positive start to the new month and quarter while oil prices declined amid cautious optimism the Iran war may end soon – Dow rose +224-points or +0.48% Boeing Co gained +4.17% to be the leading Dow performer, while Caterpillar Inc rose +3.09%. However, Nike Inc slumped -15.51% following the release of its third quarter result after the close of the previous session.
US equity markets opened the new week on the back foot following five consecutive weekly declines - Dow edged +50-points or +0.11% higher, with Salesforce Inc (up +3.19%) the leading component in the 30-stock index. However, Caterpillar Inc dropped -4.02% and Cisco Systems Inc -3.6%.
US equity markets opened the new week on the back foot following five consecutive weekly declines - Dow edged +50-points or +0.11% higher, with Salesforce Inc (up +3.19%) the leading component in the 30-stock index. However, Caterpillar Inc dropped -4.02% and Cisco Systems Inc -3.6%.
3%. Nvidia Corp fell -2.17% after being the worst performer in the 30-stock index a day earlier.
2.5%. The latter announced that it will acquire US biotech firm Terns Pharmaceuticals for US$53 per share in cash, valuing the company at ~US$6.7B. Terns is developing TERN-701, an oral therapy for chronic myeloid leukemia. It marks Merck’s third multibillion-dollar acquisition in the past year as the company looks to strengthen its portfolio ahead of its top-selling cancer drug Keytruda losing patent protection in 2028.
•US equity markets advanced for a second straight session, shrugging off fresh gains in oil prices – Dow edged +47-points or +0.10% higher, with International Business Machines (IBM) Corp (up +2.75%) the leading component in the 30-stock index. Amazon.com Inc rose +1.63% after Reuters reported that Chief Executive Officer (CEO) Adam Jassy said in an internal meeting that he projects artificial intelligence (AI) will help Amazon Web Services (AWS) double its previously forecasted sales estimates to US$600M over the next 10-years. Nvidia Corp fell -0.7% as the GPU Technology Conference entered its second day, with the semiconductor chipmaker announcing a slew of robotaxi collaborations including an expanded partnership with Uber Technologies Inc (+4.19%). Separately, CEO Jensen Huang said Nvidia is gearing up to provide some customers in China with its H200 processors. “We have received purchase orders, and we’re in the process of restarting our manufacturing,” Mr Huang told reporters at the company’s GTC conference in San Jose, California. “That’s new news for all of you, and it’s different than it was two weeks ago or three weeks ago, but that’s our condition today, and and our supply chain is getting fired up.” China once accounted for at least one-fifth of Nvidia’s data center revenue, but the company has been shut out of the country since being told by the Trump administration in April that it would require a license to export chips there and to a handful of other countries.
US equity markets rallied as oil prices retreated amid fresh efforts to reopen the Strait of Hormuz - Dow rose +392-points or +0.83%,,with Salesforce Inc (up +2.86%) the leading component in the 30-stock index. Nvidia Corp’s (+1.65%) four-day GPU Technology Conference kicked off overnight with a keynote speech from Chief Executive Officer (CEO) Jensen Huang, who said the semiconductor chipmaker expects to record $US1 trillion in AI chip sales through 2027. The company previously had said it expected chip sales to reach $US500 million by the end of 2026.
All three major U.S. equity indices closed sharply lower on Thursday, as investor sentiment weakened amid heightened geopolitical and credit market concerns.
All three major U.S. equity indices closed mixed on Wednesday, as a February CPI reading that came in broadly in line with expectations, together with the International Energy Agency’s announcement of an emergency oil reserve release, failed to provide sufficient support to lift market sentiment.
All three (3) major stock indexes erased their earlier gains to finish mostly lower in a volatile session on Tuesday.Dow fell 34.29-points or -0.07%.
Co (-3.5%), Sherwin-Williams Co (3.51%) and Walmart Inc (-3.52%) all fell 3.5%+. Salesforce Inc rallied +4.3% to be the leading performer in the 30-stock index as software stocks more broadly continued to rebound. Nvidia Corp edged +0.16% higher, recovering from an earlier decline that came Bloomberg News reported that the U.S. government is looking to add major restrictions to artificial intelligence (AI) chip exports. According to the report, U.S. officials have proposed regulations that would require U.S. companies to seek permission for all exports of AI accelerators, expanding restrictions that currently cover around 40 countries. The U.S. would only approve massive exports - such as more than 200,000 Nvidia GPUs owned by a single company - to allies that make strict security promises and “matching” investments in American AI, Bloomberg reported, citing sources. However, the proposal is not finalised and could see substantial changes.
- Dow rose +238-points or +0.49%, snapping a three-session losing streak. Amazon.com Inc gained +3.88% to be the leading performer in the 30-stock index. Nvidia Corp rose +1.66%.
1,250-points. Caterpillar Inc fell -4.03% to be the worst performer in the 30-stock index. Nvidia Corp fell -1.33% despite analysts at Morgan Stanley naming the world’s most valuable company by market capitalisation as its top semiconductor pick, citing an attractive valuation. International Business Machines (IBM) Corp (up +2.47%) was the leading Dow component overnight.
9.5% despite. Microsoft Corp rose +1.48%. Apple Inc (+0.20%) kicked off a three-day stretch of new product announcements overnight unveiling its new iPhone 17e and a new iPad Air, refreshing its entry-level hardware offerings with updated chips to prepare for the rollout of new artificial-intelligence (AI) features later this year.
US equity markets weaker as a strong results from Nvidia Corp and Salesforce after the close of the previous session weren’t enough to bolster the broader market - Dow inched +17-points or +0.03% higher Salesforce Inc - which has been one of the biggest victims of recent artificial intelligence (AI) disruption fears - gained +4.03% to pace gains in the 30-stock index a day after the customer service software maker reported healthy results for the fourth quarter, although its fiscal 2027 revenue forecast trailed Wall Street projections. However, Nvidia Corp shed -5.46% to book its largest single session decline since April last year despite reporting stronger-than-expected profit and revenue forecasts for the fourth quarter after the close of the previous session
•US equity markets rebounded as Technology stocks steadied after a sharp sell-off amid artificial intelligence (AI) disruption concern - Dow rose +370-points or +0.76% Salesforce Inc rose +4.07% to be the leading performer in the 30-stock index, more than recouping the previous session’s -3.78% drop that came amid a broader decline on artificial intelligence (AI) disruption concerns from the likes of Anthropic. International Business Machines (IBM) Corp rose +2.67% a day after slumping -13.15%. Microsoft Corp rose +1.18%.
U.S. equity markets advanced on Friday to cap a positive week after the Supreme Court struck down the sweeping tariffs implement implemented by the Trump administration last year.
2%. Walmart Inc (down -3.76%) was the worst performing Dow component overnight, with the retail giant slated to release its fourth quarter result on Thursday night AEST (19 February).
2.5%. Caterpillar Inc (4.4%) and Verizon Communications Inc (3.33%) were the leading components in the 30-stock index, while Coca-Cola Co (+2.33%) rebounded a day after posting weaker-than-expected revenue for the fourth quarter
The Reserve Bank of Australia (RBA) has lifted the cash rate by 25 basis points at its latest meeting, signalling the start of a more prolonged tightening cycle. While many economists believe the RBA will need only two more rate hikes, Michael Knox argues that this view does not account for structural inflation pressures already building within the Australian economy.His modelling and economic analysis suggest the real requirement is at least four rate hikes before inflation begins to ease.
5%. ‘Magnificent Seven’ mega-capitalisation technology names Nvidia Corp (down -3.41%) and Amazon.com Inc (-2.36%) were under pressure, along with technology peers Cisco Systems Inc (-2.35%) and International Business Machines (IBM) Corp (-1.79%
4%. Nvidia Corp dropped -2.89% after The Wall Street Journal (WSJ), citing people familiar with the matter, that the chipmaking giant’s plans to pour US$100B into OpenAI had stalled, with company executives expressing doubt about the deal.
US equity markets retreated on Friday (30 January) as technology stocks remained under pressure, while precious metals markets saw some vicious volatility - Dow fell -179-points or -0.36% as a host of components in the 30-stock index posted quarterly results.
•US equity markets settled narrowly mixed as investors absorbed another busy corporate earnings calendar - Dow edged +56-points or +0.11% higher, with International Business Machines Corp (IBM) rising +5.13% to be the leading performer in the 30-stock index after posting stronger-than-expected fourth quarter EPS and revenue after the close of the previous session. Microsoft Corp tumbled -9.99% and recorded worst daily performance since March 2020 following the release of the company’s fourth quarter result after the close of the previous session, with investors seemingly unnerved by record spending on artificial intelligence (AI) last quarter.
US equity markets settled narrowly mixed as investors eyed quarterly results from mega-capitalisation technology companies after the closing bell and the Federal Reserve’s first interest rate decision of 2026 - Dow inched +12-points or +0.02% higher Nvidia Corp rose +1.59% and was the leading performer in the 30-stock index after The Wall Street Journal (WSJ) reported that China's government has given clearance to a few big technology companies in the country including ByteDance and Alibaba Group Holdings Ltd () to start placing orders for H200 AI chips. The initial approval would allow the companies to buy hundreds of thousands of chips worth ~US$10B, according to the WSJ. Nvidia did not respond to a request for comment in time for publication.
confidence in CoreWeave's business, team and growth strategy as a cloud platform built on NVIDIA infrastructure, “according to the world’s most valuable public company. Nvidia climbed +1.53% last Friday (23 January) after CNBC reported that Chief Executive Officer (CEO) Jensen Huang is planning to visit China in the coming days.
US equity and bond markets were CLOSED overnight for Martin Luther King Day.In US corporate earnings, 3M Co, D.R. Horton Inc, Fastenal Co, Netflix Inc, United Airline Holdings Inc and US Bancorp post quarterly results tonight AEST. In US economic data, Pending Home Sales for December and Construction Spending for September/October are released tonight AEST.
2%. However, International Business Machines (IBM) Corp dropped -3.59% and Salesforce Inc -2.52%.
Co fell -0.94% a day after America’s largest investment bank released its fourth quarter result.
P 500 pulling back from record highs as the fourth quarter earnings season got underway and investors digested the latest inflation data - Dow fell -398-points or -0.80% Salesforce Inc shed -7.07% and was the worst performer in the 30-stock index following an update to its virtual assistant Slackbot feature in Slack. Visa Inc fell -4.46%
P 500 to fresh record peaks as investors shrugged off news of a Department of Justice (DoJ) probe into Federal Reserve Chair Jerome Powell - Dow added +86-points or +0.17% to 49,590.20 . Walmart Inc (up +3.01%) was the leading component in the 30-stock index overnight following news that it would be joining the Nasdaq 100 index beginning 20 January, replacing AstraZeneca Plc (down -1.07%). The move comes about a month after Walmart left the New York Stock Exchange for the Nasdaq. The world’s largest retailer also announced it would be partnering with Google's Gemini AI to help shoppers find and buy items, similar to a partnership made in October with OpenAI's ChatGPT.
Co (up +3.59%) the leading performer in the 30-stock index. Honeywell International fell -1.58% after the aerospace and industrial-automation company lowered its full-year earnings outlook and updated investors on its expectations surrounding the Flexjet lawsuit. Nike Inc -2.54%.
P500 in 2025. Nike Inc dropped -10.54% after the sports giant released its second quarter result after the close of the previous session and reported weaker revenue in Greater China.
In this episode, Michael Knox and Stephen Austin from the ABC unpack the economic challenges Australia faces in 2025. With electricity subsidies ending and energy supply constraints persisting, households are bracing for higher power bills and rising inflation. Here’s what’s on the horizon:
The Executive Focus Series 2025 – Episode 2 🎤Guest: Stephen Darke, Managing Director at Navigator Global InvestmentsHost: Chris TitleyIn this episode of The Executive Focus Series 2025, Chris Titley speaks with Stephen Darke, Managing Director at Navigator Global Investments. Stephen shares his perspective on leading a global investment firm and the strategies that underpin Navigator’s approach to alternative asset management.
US equity markets were stronger overnight – Dow rose 0.14% driven by tech names Amazon up 2.4%, Nvidia up 1.8%, Microsoft up 1.65%, and Cisco 1.52%.
US equity markets retreated, with technology stocks again leading the weakness amid concerns around the level of investment spending on artificial intelligence (AI) and data centres - Dow fell -228-points or -0.47%, with Caterpillar Inc (down -4.59%) the worst performer in the 30-stock index. Nvidia Corp lost -3.81%.
Federal Reserve Interest Rate Outlook: What Investors Need to KnowThe Federal Reserve’s latest projections reveal a surprisingly moderate outlook for inflation and interest rates. Despite tariff concerns earlier this year, the Fed expects inflation to remain subdued and rates to decline gradually. Here’s what this means for markets and investors.
The Executive Focus Series 2025 – Episode 1 🎤Guest: Ian Macoun, Founder and Managing Director at Pinnacle Investment Management GroupHost: Chris TitleyIn this inaugural episode of The Executive Focus Series 2025, Chris Titley sits down with Ian Macoun, the visionary behind Pinnacle Investment Management Group. Ian shares his journey in building one of Australia’s leading multi-affiliate investment firms and offers a deep dive into the principles that have shaped Pinnacle’s success.
US equity markets retreated as investors continued to exit technology stocks and move into value areas of the market - Dow lost -246-points or -0.51% to 48,458.05 after touching a record intra-day high (48,886.86) earlier in Friday’s (12 December) session.
Walt Disney Co rose +2.42% after it announced a US$1B investment in ChatGPT maker OpenAI and will allow its copyrighted characters to be used in short-form AI video platform Sora. Chief Executive Officer (CEO) Bob Iger told CNBC in a televised interview following the announcement that the agreement is seen giving Disney “a way in” to AI and could help expand its reach with younger consumers. Coca-Cola Co dropped -1.57% after announcing CEO James Quincey will step down in March and be succeeded by operating chief Henrique Braun.
In this episode, Chris Titley chats with Leo Barry, Executive Director and Portfolio Manager at Fairview Equity Partners.Leo plays a key role in managing Fairview’s Australian Small Companies Fund, which focuses on identifying high-quality growth opportunities within the small-cap sector. With extensive experience in portfolio management and a strong track record in equity markets, Leo shares insights into how Fairview approaches small-cap investing and the strategies shaping performance in 2025.
Gamble Co (-3.56%) both falling ~3.5%. Boeing Co (up +2.17%) and Walt Disney Co (+2.21%) both climbed ~2.2%.
US equity markets advanced after a delayed, tame inflation report reinforced expectations that the Federal Reserve will cut interest rates at its final meeting of the year this week - Dow added +104-points or +0.22%, with Salesforce Inc (up +5.3%) the clear outperformer in the 30-stock index on Friday (5 December). Goldman Sachs Group Inc +2% Amgen Inc fell -3.02%
US equity markets logged modest gains following a subdued session ahead of key inflation figures tonight AEST and the Federal Reserve’s latest interest rate decision next week - Dow slipped -32-points or -0.07%, with diversified technology services company 3M Co (down -2.21%) the worst performer in the 30-stock index. Salesforce Inc +3.66% and was the leading Dow component a day after posted better-than-expected quarterly profit after the close of the previous session and raised its outlook on the back of growth from its data products and AI offerings. Nvidia Corp +2.12%
US equity markets advanced after an unexpectedly weak private-sector hiring report further bolstered expectations of an interest rate cut by the Federal Reserve next week - Dow rose +408-points or +0.86%
In this episode, Chris Titley speaks with Dawn Kanelleas, Head of Australian Small and Mid Cap Companies at First Sentier Investors.Dawn manages a range of Small and Mid Cap portfolios and brings over 20 years of experience in the investment industry, including 15 years as a dedicated Small Companies Portfolio Manager.At First Sentier Investors, she focuses on researching and analysing Australian listed stocks in the Small and Mid Cap sectors, helping clients navigate opportunities in this dynamic space.
US bond and equity markets bond and equity markets were CLOSED overnight for Thanksgiving Day holiday, while it is an abbreviated trading session tonight AEST.
US equity markets advanced for a fourth consecutive session ahead of the Thanksgiving holiday - Dow rose +315-points or +0.67%. Boeing Co (up +2.46%) and Walmart Inc (+1.96%) were the leading performers in the 30-stock index. Nvidia Corp +1.37%
The Fundamentals Podcast 2025 – Episode 3 🎤In this episode, Chris Titley sits down with Doug Tynan, Chief Investment Officer and co-founder of GCQ Funds Management.Founded in 2021, GCQ Funds Management specialises in delivering tailored investment strategies for wholesale clients, with a focus on long-term growth and risk management. Tune in for a deep dive into how GCQ is navigating today’s investment landscape and what fundamentals matter most in 2025.
Co Inc (+5.24%) and Home Depot Inc (+4.34%) were the leading performers in the 30-stock index.
US equity markets advanced after New York Federal Reserve President John Williams suggested the central bank could cut interest rates yet again this year - Dow rallied +493-points or +1.08%. Home Depot Inc (up +3.29%) was the leading performer in the 30-stock index. Nvidia Corp lost -0.97% after Bloomberg News reported, citing sources, that the Trump administration was mulling the sale of H200 AI chips to China. The report said President Trump held talks internally about possible shipments in recent days, though it added that a decision had not been made.
US equity markets retreated on Thursday as the Dow was on pace for its worst week in a month as strong Nvidia earnings weren’t enough to cool investor fears. Dow fell -386.51 points or 0.84%.
US equity markets opened the week sharply lower, with traders eyeing quarterly results from Nvidia Corp (down -1.88%) and some major retailers later in the week as well as delayed economic data - Dow fell -627-points or -1.33% American Express Co dropped -4.46% and was the worst performer in the 30-stock index after the financial-services giant said its U.S. Consumer Card Member loans net write-off rate was 2.2% in October, up from 1.9% in September, while its U.S. Small Business Card Member loans net write-off rate ticked up to 2.6% from 2.5%.
US equity markets were mixed on Friday (14 November) but recovered from an early, steep sell-off to settled well of their worst levels of the session - Dow fell 310-points or -0.65%, having been down as much as -600-points or ~1.3% earlier in the session. UnitedHealth Group Inc (down -3.21%) was the worst performer in the 30-stock index. Nike Inc lost -2.82%, with Moody’s downgrading its ratings on debt issued by the footwear and athletic apparel company, pointing to elevated competition and cost pressures related to tariffs as factors behind its more cautious outlook. Walmart Inc dipped -0.06% after it announced Chief Executive Officer (CEO) Doug McMillon will retire on 31 January 2026, and be succeeded by Walmart U.S. CEO John Furner. Nvidia Corp (+1.77%) and Microsoft Corp (+1.37%) were the leading Dow components on Friday (14 November).
US equity markets rallied amid signs that a historic U.S. government shutdown could be nearing its end - Dow rose +382-points or +0.81% Nvidia Corp (up +5.79%) was the clear outperformer in the 30-stock index.
US equity markets settled narrowly mixed on Friday (7 November), recovering from steeper declines earlier in the session to cap a volatile week - Dow added +75-points or +0.16%, recovering from an earlier slide of ~400-points or -0.9%. Coca-Cola Co (up +2.16%) and Sherwin-Williams Co (+1.95%) were the leading performers in the stock index.
•Fresh selling in the technology sector led US equity markets lower overnight - Dow fell 399-points or -0.84%, with Salesforce Inc (down -5.31%) the worst performing component in the 30-stock index. So-called ‘Magnificent Seven’ mega-capitalisation technology companies Nvidia Corp (down -3.65%) and Amazon.com Inc (-2.86%) also fell sharply, while Microsoft Corp (down -1.98%) extended declines into a seventh consecutive session to book its longest losing streak since 6 September 2022
Technology stocks led a rebound for US equity markets - Dow rose +226-points or +0.48% Amgen Inc (up +7.81%) was the leading performer in the 30-stock index after the pharmaceutical company posted a better-than-expected third quarter result and raised its full-year sales outlook after the close of the previous session Economic bellwether Caterpillar Inc gained +3.94%. Home Depot (down -2.41%) was the worst performing Dow component overnight.
•US equity markets retreated, with the Chief Executive Officers (CEOs) of investment banking giants Goldman Sachs Group Inc (up +0.68%) and Morgan Stanley (+0.22%) cautioning that equity markets could be heading for a drawdown of around 10% to 15% - Dow fell -251-points or -0.53%, with Caterpillar Inc (down -4.03%) and Nvidia Corp (-3.96%) both falling ~4%.
2%. Microsoft Corp (down -0.15%) announced it has secured export licenses to ship Nvidia Corp (+2.23%) chips to the United Arab Emirates amid Gulf’s ambitions to become an AI leader. Amazon.com Inc rallied +4.03% to be the leading Dow component overnight, hitting a fresh record high (US$258.60) after signing a multi-year US$38B deal to supply cloud computing services to OpenAI, affording the ChatGPT maker access to Nvidia's graphics processors. Amazon soared +9.58% in the previous session after releasing stronger-than-expected third-quarter earnings after the close last Thursday’s (30 October), underpinned by a sharp acceleration in cloud revenue. Separately, an intense lobbying effort by Jensen Huang, chief executive of Nvidia, to persuade President Donald Trump to sell its chips to customers in China was thwarted by top US officials, The Wall Street Journal
US equity markets advanced on Friday (31 October) after a choppy session to cap a solid week and month for the benchmark indices - Dow edged +41-points or +0.09% higher Apple Inc settled -0.38% lower at US$270.37, unwinding an gain that saw the mega-capitalisation technology stock touch a fresh record intraday high of US$277.32 after reporting better-than-expected third quarter earnings after the close of last Thursday’s (30 October) session and forecast holiday-quarter iPhone sales and overall revenue that surpassed Wall Street expectations thanks to strong demand for its iPhone 17 models. Nvidia Corp slipped -0.20% following news it is partnering with Samsung and other South Korean firms to deploy 250,000 of its chips across the Asian country.
3%. Nvidia Corp +2.99% following a well-received presentation from Chief Executive Officer (CEO) Jensen Huang at the company’s GPU Technology Conference, becoming the first company to close with a US$5 trillion market capitalisation just 78-days after closing with a market capitalisation of US$4 trillion for the first time. A US$5 trillion market capitalisation is larger than the 2024 gross domestic product (GDP) of every country except the U.S. and China, and it would roughly equal what the International Monetary Fund (IMF) projects for Germany’s nominal GDP this year.
Benchmark US equity indices advanced to book record closing highs for a third consecutive session - Dow rose +162-points or +0.34% to 47,706.37.
US equity markets climbed to fresh record highs for a second consecutive session running on optimism that the U.S. and China will strike a trade deal when US President Trump meets Chinese President Xi Jinping on Thursday (30 October) at the Asia-Pacific Economic Cooperation summit in South Korea - Dow rose +337-points or +0.71% to a record closing high of 47,544.19. Apple Inc (up +2.28% to US$268.81) and Microsoft Corp (+1.51% to US$531.52) are close to joining Nvidia in the US$4 trillion market capitalisation club, needing to close at US$269.54 and US$538.13 respectively to achieve the mark. Amazon.com Inc rose +1.23% after Reuters reported that the technology giant is planning to cut as many as 30,000 corporate jobs beginning on Tuesday (28 October) as the company works to pare expenses and compensate for over-hiring during the peak demand of the pandemic, according to three people familiar with the matter. The figure represents a small percentage of Amazon’s 1.55M total employees, but nearly 10% of the company’s ~350K corporate employees.
US equity markets advanced following another busy corporate earnings calendar and ahead of the release of delayed inflation figures tonight AEST - Dow rose +144-points or +0.31%. International Business Machines (IBM) Corp settled -0.87% lower, paring earlier, steeper losses following the release of an underwhelming third quarter result after the close of the previous session.
US equity markets declined as investors navigated another busy corporate earnings calendar and eyed fresh trade tensions between the US and China - Dow fell -334-points or -0.71% to 46,590.41 after a booking record closing (46,924.74) and intra-day (47,125.66) highs a day earlier.
Beginning on the 1st of October 2025, the US government began its current Federal government shutdown.The shutdown occurred because Democratic Party Senators refused to support a Continuing Resolution to provide funding for the US government. At the time of writing, Republican Senators have now put up Continuing Resolutions for funding to the Senate 11 times, and Democrat Senators have refused to support them 11 times.
US equity markets opened a busy week with sharp gains as investors eye a fresh round of third quarter earnings and inflation data at the end of the week - Dow rose +516-points or +1.12%, with Salesforce Inc (up +4.61%) the leading performer in the 30-stock index.
•US equity markets advanced on Friday (17 October) as investors shook off concerns about the health of the banking sector and mulled comments from President Trump about threatened extra tariffs on Chinese goods - Dow rose +238-points or +0.52% . Apple Inc rose +1.6% after the technology giant said it scored an agreement with Formula 1 to broadcast races and other content exclusively on Apple TV in the U.S. The deal, which begins next year, will include “comprehensive coverage of Formula 1, with all practice, qualifying, Sprint sessions, and Grands Prix,” as well as select races and all practice sessions for free on Apple TV. Financial terms were not released.
US equity markets mostly firmer after a volatile session but settled well off their session highs - Dow dipped -17-points or -0.04%, unwinding an earlier rally of ~423-points.
US equity markets mixed as investors digested the first major earnings of the third quarter reporting season, the latest developments in the US-China trade tensions and comments from Federal Reserve Chair Jerome Powell - Dow rose +203-points or +0.44% Walmart Inc rallied +4.98% to be the leading performer in the 30-stock index after the biggest brick-and-mortar retailer said it is partnering with OpenAI to allow customers to buy goods from Walmart through ChatGPT. Caterpillar Inc climbed +4.50%. Nvidia Corp (down -4.40%) was the weakest Dow component overnight.
Co rose +2.35% after the world's biggest bank said it was planning to pump US$1.5 trillion dollars over 10 years into industries seen as critical to U.S. national interests under a programme called the Security and Resiliency Initiative. The plan will focus on four key areas: Supply Chain and Manufacturing; Defence and Aerospace; Energy Independence and Resilience; and Frontier and Strategic Technologies.
All three (3) major U.S. stock indexes closed lower on Thursday. Dow fell -243-points or -0.52%.
US equity markets rebounded, with the S&P500 and Nasdaq booking fresh record intra-day and closing highs - Dow flat at 46,601.78. Caterpillar Inc (up +3.17%) was the leading performer in the 30-stock index. Nvidia Corp rose +2.20% after Chief Executive Officer (CEO) Jensen Huang said that demand has risen in recent months, telling CNBC that “this year, particularly the last six months, demand of computing has gone up substantially.” Mr Huang also confirmed the company’s involvement in funding Elon Musk’s artificial intelligence (AI) startup, xAI, and said that he’s “super excited about the financing opportunity they’re doing.” Investment banks Goldman Sachs Group Inc (-1.66%) and JPMorgan Chase & Co (-1.19%) fell over >1%.
US equity markets retreated overnight as the US government shutdown entered its second week but not before the S&P500 and Nasdaq scaled fresh record intra-day highs - Dow eased -92-points or -0.20%, with Nike Inc (down -3.18%) the worst performer in the 30-stock index, while Salesforce Inc fell -2.46% after the company said it won’t pay a ransom demand from a hacker who claimed to have stolen a large amount of client data and threatened to publish it, according to an email seen by Bloomberg. International Business Machines (IBM) Corp rose +1.54% following news it was partnering with Anthropic to integrate the artificial intelligence (AI) firm's Claude large language model into its enterprise software. Amazon.com Inc added +0.4% as the e-commerce giant began its two-day Prime Big Deal Days.
US equity markets advanced, with the S&P500 and Nasdaq booking fresh record closing highs despite the U.S. government shutdown entering its sixth day, with the White House threatening mass federal worker layoffs. - Dow eased -63-points or -0.14% Verizon Communications Inc -5.11% after Chief Executive Officer (CEO) Hans Vestberg stepped down, replaced by independent lead director and former PayPal Inc CEO Dan Schulman. Sherwin-Williams Co (-2.80%). Microsoft Corp (up +2.17%) and Salesforce Inc (+2.25%) rose over >2%, while Boeing Co gained +1.59% after Bloomberg reported that the airplane maker plans to accelerate its production of jets in its 737 Max line. The company could reach a 42-jet output per month for its 737 Maxs as soon as October, the report said.
US equity markets closed out the week on a mixed note albeit the Dow and S&P500 logged fresh record closing highs - Dow rose +239-points or +0.51% to 46,758.28 Nike Inc -3.54% Nvidia Corp lost -0.67% after hitting a record closing (US$188.89) and intra-day (US$191.05) high in the previous session.
US equity indices advanced for a fifth consecutive session, with the three (3) leading indices booking a fresh round of record closing highs amid a global rally for semiconductor stocks after OpenAI announced South Korean firms SK Hynix (+9.86%) and Samsung Electronics Co Ltd (+3.49%) would partner with the ChatGPT maker on its Stargate AI infrastructure project - Dow added +79-points or +0.17% to 46,519.72, tallying its first five-day winning streak since 2 May and marking the 30-stock index’s second consecutive record closing high and 10th of the calendar year-to-date. Caterpillar Inc rose +2.003% to be the leading Dow component overnight. Nvidia Corp rose +0.88% to a fresh record closing high of US$188.89, hitting a record intra-day high (US$191.05) after the chipmaker’s market capitalisation hit US$4.5 trillion.
US equity markets advanced, with the Dow and S&P500 posting record highs despite the federal government shutting down for the first time in six-years - Dow edged +88-points or +0.19% higher to book a second consecutive record closing high of 46,441.10. Nike Inc gained +6.41% after the athletic retail giant posted better-than-expected headline numbers for the fiscal first quarter after the close of the previous session. Nvidia Corp (+0.35%) hit a fresh record high that lifted the chipmaker’s market capitalisation above >US$4.5 trillion.
US equity markets advanced overnight, shrugging off the potential threat of a US government shutdown and shaping to record an unusually strong September - Dow edged +69-points or +0.15% higher, with Nvidia Corp (up +2.05%) the leading performer in the 30-stock index. Chevron Corp (down -2.53%) was the weakest Dow component.
US equity markets advanced on Friday (26 September), snapping a three session losing streak following benign - Dow rose +300-points or +0.65% Boeing Co (up +3.62%) was the leading performer in the 30-stock index on Friday (26 September) after the Federal Aviation Administration confirmed a report the plane maker will be allowed to issue airworthiness certificates on some of its 737 Max and 787 jets. The eased restrictions, which enable the company to conduct the final safety check on certain aircraft, could help Boeing accelerate production and delivery schedules. In addition, Turkish Airlines finalised a deal to purchase 225 Boeing planes following Turkish President Recep Tayyip Erdoğan's visit to the U.S. last week.
US equity markets retreated, with the S&P500 and Nasdaq declining for a third consecutive session - Dow fell -174-points or -0.38%, with Amgen Inc (-2.88%), Nike Inc (-2.78%) and Merck & Co Inc (-2.6%) all falling over >2.5%.International Business Machines (IBM) Corp gained +5.20% to be the leading performer in the 30-stock index after financial partner HSBC Holdings Plc said it had a "positive trial" using quantum computers from "Big Blue" for algorithmic bond trading.
US equity markets retreated for a second straight session, with investors booking some profits in the technology sector - Dow fell -172-points or -0.37% Amgen Inc -2.65% Goldman Sachs Group Inc (-1.72%) and International Business Machines (IBM) Corp (-1.73%) both fell ~1.7%.
US equity markets retreated from record highs, snapping a three-session streak that saw the three main indices post record intra-day and closing highs - Dow slipped -89-points or -0.19% to 46,292.78 after logging a fresh record intra-day high (46,447.13) shortly after the opening bell. Amazon.com Inc (down -3.04%) was the worst performer in the 30-stock index. The company squaring off against the Federal Trade Commission in court after the agency filed a lawsuit during the Biden administration alleging the company made it too onerous for customers to cancel their Prime memberships. Nvidia Corp fell -2.82% to US$178.43, handing back much of the previous session’s +3.93% gain that lifted the chipmaker to record closing high (US$183.61) after the company said it’s going to invest US$100B in OpenAI - the maker of ChatGPT - for the buildout of data centres based around the company’s artificial intelligence (AI) chips. Boeing Co ( -0.26%) inked a lucrative contract to make planes for Uzbekistan Airways that President Trump described as “a GREAT deal” on his Truth Social network, noting that he had spoken with Uzbekistan president Shavkat Mirziyoyev last month.
Updated Outlook on the Federal Reserve and Australian Cash RateIn recent days, several people have asked for my updated view on the Federal Reserve and the Fed funds rate, as well as the outlook for the Australian cash rate. So I thought I’d walk through our model for the Fed funds rate and explain our approach to the RBA’s cash rate.
The benchmark US equity indices booked another round of fresh record intra-day and closing highs to open the week - Dow edged +66-points or +0.14% to 46,381.54. Apple Inc rallied +4.31% to be the leading performer in the 30-stock index following reports of strong demand for the iPhone 17 in its first weekend of sales, aided by consumers seeking to replace aging devices. The stock is closing in on a fresh record closing high (after touching their highest intra-day level since December 2024 overnight at US$256.64) and market capitalisation of US$4 trillion. ‘Magnificent Seven’ mega-capitalisation technology peer Nvidia Corp rallied +3.93% to a record closing high of US$183.61 after the company said it’s going to invest US$100B in OpenAI - the maker of ChatGPT - for the buildout of data centres based around the company’s artificial intelligence (AI) chips. The partnership "enables OpenAI to build and deploy at least 10 gigawatts of AI data centres with NVIDIA systems representing millions of GPUs [graphics processing unit] for OpenAI's next-generation AI infrastructure." Nvidia added it "intends to invest up to US$100B in OpenAI progressively as each gigawatt is deployed." However, Amazon.com Inc fell -1.66% as investors assessed the potential fallout from President Trump's shock decision late on Friday (19 September) to raise the H-1B visa application fee to US$100,000. Amazon employs ~14K staff on such visas.
The three benchmark US equity indices advanced on Friday (19 September) to book fresh record intra-day and closing highs for a second consecutive session as the US and China advanced trade talks and the "Magnificent Seven" tech stocks continued to climb - Dow rose +173-points or +0.37% to 46,315.27 Apple Inc +3.20% as the company’s new iPhone 17 models went on sale globally.
US equity indices logged fresh record closing highs, driven by fresh gains for the technology sector - Dow rose +124-points or +0.27% to 46,142.42, with Caterpillar Inc (up +3.62%) the leading performer in the 30-stock index and up over >7% in the past three trading sessions.
The US equity markets advanced - Dow gained +260-points or +0.57% to 46,018.32, touching a record intra-day high of 46,261.95. Amazon.com Inc (up +2.74%) and Caterpillar Inc (+2.27%) both gained over >2% to be the leading performers in the 30-stock index.
US equity markets settled with modest losses a day after both the S&P 500 and Nasdaq hit fresh record intra-day and closing highs as investors eye tomorrow morning’s AEST interest rate decision from the Federal Reserve - Dow fell -126-points or -0.27% UnitedHealth Group Inc (-2.33%) Nvuidoa Corp (-1.61%) and Travelers Companies Inc (-1.57%) all fell over >1.5%. Microsoft Corp (down -1.23%) vice chair and president Brad Smith wrote in a blog post overnight that the ‘Magnificent Seven’ mega capitalisation technology company would be making a $30B investment in artificial intelligence (AI) infrastructure and ongoing operations across the United Kingdom through 2028.
Both the S&P 500 and Nasdaq hit fresh record intra-day and closing highs ahead of the Federal Reserve’s latest two-day monetary policy meeting kicking off that is expected to see the central bank cut benchmark interest rates for the first time this year - Dow edged +49-points or +0.11% higher, with so-called ‘Magnificent Seven’ mega-capitalisation technology names Amazon.com Inc (up +1.44%), Apple Inc (+1.12%) and Microsoft Corp (+1.07%) rising over >1% along with Caterpillar Inc (+1.02%) and International Business Machines (IBM) Corp (+1.10%). Merck & Co Inc (-1.20%) and McDonald's Corp (-1.09%) fell over >1% to be the worst performing Dow components overnight. Nvidia Corp dipped -0.04%, paring an earlier decline of almost -1.9% after China’s State Administration for Market Regulation (SAMR) announced that following a preliminary investigation the chip giant was found to be in breach of antitrust rules in relation to its acquisition of Israel-based networking-technology group Mellanox. Separately, Nvidia is reportedly among investors in artificial intelligence (AI) infrastructure company Firmus Technologies, which is targeting a listing on the Australian Securities Exchange (ASX) next year.
US stocks rose on Thursday as traders anticipated that the latest reading of a key consumer inflation gauge won't stand in the way of the Federal Reserve lowering its benchmark interest rate next week.
US equity markets were mixed overnight - Dow fell 220 points or -0.48%, dragged down by tech heavyweights, Amazon and Apple, down -3.32% and -3.22% respectively.
Benchmark US equity indices booked fresh record highs - Dow gained +196-points or +0.43% to 45,711.34. UnitedHealth Group Inc (up +8.64%) was the leading component in the 30-stock index (and S&P 500) after the health insurer estimated that 78% of its Medicare Advantage membership will be in top-rated Medicare plans next year and are likely to qualify for bonus payments from the federal government. Microsoft Corp eked out a +0.04% gain following news it had inked a US$17.4B deal for Nvidia Corp (+1.46%)-backed Nebius Group NV (+49.42%) to provide artificial intelligence (AI) infrastructure for the software giant's new data centre in New Jersey. Apple Inc 1.48% after unveiling the new iPhone 17 models at its ‘Awe Dropping’ event along with a number of updates that Chief Executive Officer (CEO) Tim Cook called the company's “biggest leap ever for iPhone." The company showcased four models including the iPhone 17 Air, Apple's most durable and thinnest phone ever. Apple also announced its next generation of Airpods, highlighting live translation and hearing aid functions, and updates to its Apple Watch portfolio with new health-related features such as a "sleep score" and a blood pressure monitor that can alert users to hypertension.
US equity markets advanced to open the new trading week, resuming a rally that has pushed benchmark indexes to a series of record highs in recent weeks - Dow rose +114-points or +0.25%, with International Business Machines (IBM) Corp (up +3.04%) the leading performer in the 30-stock index. Nvidia Corp (+0.77%) presented at the annual Goldman Sachs Communacopia + Technology Conference overnight
U.S. equity markets settle with modest declines on Friday as investors digested a weaker than expected job report that bolstered the case for interest rate cuts, but also raised concerns about the health of the wider economy.
US equity markets advanced, with investors shrugging of weak private employment data and eyed the key non-farm payrolls report tonight AEST - Dow rose +350-points or +0.77%.
US equity markets mixed on the heels of steep falls to open September trading a day earlier - Dow dipped -25-points or -0.05%, with American Express Co (down -2.26%) and Chevron Corp (-2.33%) both falling over >2%.
US equity markets resumed trading following the Labour Day holiday long weekend and opened September in negative territory amid fresh uncertainty around tariffs - Dow down -249-points or -0.55% Nike Inc (down -3.48%) was the worst performer in the 30-stock index, while Nvidia Corp (-1.95%) led losses among the so-called ‘Magnificent Seven’ cohort of mega-capitalisation technology stocks.
US equity and bond markets were CLOSED overnight for the Labor Day holiday. On the trade front, U.S. Trade Representative Jamieson Greer said on Sunday (31 August) the Trump administration is continuing its talks with trading partners despite a U.S. appeals court ruling that most of government’s tariffs are illegal.
US equity markets declined on Friday (29 August), with declines for artificial intelligence (AI) related stocks weighing particularly heavily on the benchmark indices as investors also parsed the latest inflation figures - Dow eased -92-points or +0.20% after booking Caterpillar Inc (down -3.65%) was the worst performer in the 30-stock index a day after the maker of big farm and construction equipment warned tariffs would negatively impact its full year result by a greater amount (US$1.5B to US$1.8B) than previously forecast earlier this month when releasing its second quarter result (US$1.3B to US$1.5B). Nvidia Corp fell -3.32%, with The Wall Street Journal reporting that Alibaba Group Holdings has developed a new chip that it’s now testing and that could be a domestic replacement for Nvidia’s H20. Unlike a previous AI processor that relied on Taiwan Semiconductor Manufacturing Co. for fabrication, Alibaba’s new chip is being manufactured directly in China, according to the report. The U.S. government has restricted TSMC from shipping advanced AI chips to Chinese customers. American Express Co (+1.31%) and JPMorgan Chase & Co (up +0.12%) touched record all-time highs.
US equity markets recorded modest gains, with the S&P 500 climbing above 6,500 for the first time as investors digested Nvidia Corp’s (down -0.79%) second quarter result after the closing bell of the previous session, stronger-than-expected economic growth figures and eyed inflation figures tonight AEST - Dow added +72-points or +0.16%, with American Express Co (up +1.40%), Cisco Systems Inc (+1.45%) and Salesforce Inc (1.75%) all rising over >1%.
US equity markets advanced as investors shrugged off President Trump’s removal of Federal Reserve Governor Lisa Cook from the central bank’s board and eyed Nvidia Corp’s (+1.09%) second quarter result after the closing bell of tonight’s AEST session - Dow rose +136-points or +0.30%. Boeing Co (up +3.51%) was the leading performer in the 30-stock index following news that Korean Air ordered 103 of the planemaker's passenger jets.
US equity markets retreated, failing to sustain the Federal Reserve fuelled momentum of late last week - Dow fell -349-points or -0.77% to 45,282.47 after logging its first record closing high (45,631.74) since 4 December last Friday (22 August). Merck & Co Inc (down -2.36%) was the worst performer in the 30-stock index. Nvidia Corp +1.02% and was one of just three Dow components to advance overnight, with investors continuing to eye the chip giant’s second quarter result on Wednesday night AEST (27 August).
US equity markets rebounded strongly on Friday (22 August) after Federal Reserve Chair Jerome Powell hinted at a near-term interest-rate cut during his Jackson Hole Economic Policy Symposium speech - Dow rallied +846-points or +1.89% to a record closing high of 45,631.74, marking the 30-stock indice’s first record close since 4 December last year. Caterpillar Inc (+4.25) was the leading Dow component, while American Express Co (+3.57%), Goldman Sachs Group Inc (+3.62%), and Home Depot Inc (+3.79%) all gained over >3.5%. Nvidia Corp (+1.72%) has told suppliers to suspend production of its H20 chip, according to toa report by The Information citing unnamed sources, after Beijing asked local firms to avoid using the chip tailored for the Chinese market due to security concerns. Reuters separately reported that Nvidia had asked Foxconn to suspend work related to the H20 chips.
US equity markets declined amid a further rotation out of large capitalisation technology stocks and with investors eyeing a speech from Federal Reserve Chair Jerome Powell tonight AEST - Dow fell -153-points or -0.34% Boeing Co (down -0.51%) is in discussions to sell as many as 500 jets to China, according to Bloomberg News. While the two sides are working out the details, including the number and kinds of aircraft included, Chinese officials have already begun asking domestic airlines how many planes they want, according to the report. Boeing has only made a handful of sales to Chinese carriers over the past few years.
Chris Titley sits down with Michael Skinner, Managing Director and Chief Investment Officer at Blackwattle Investment Partners. Blackwattle is a new-generation Australian fund manager, established in 2023, investing in high quality Australian and global equities. Based in Sydney, the firm's ethos centers on alignment, with all team members owning equity and investing significant personal capital alongside clients. Blackwattle focuses on delivering exceptional long-term returns by targeting high-quality companies with sustainable competitive advantages, driven by a culture of alignment, transparency, and rigorous fundamental research.
Technology stocks came under selling pressure for a second session to weigh on the benchmark US equity indices, while investors also digested the minutes from the Federal Reserve’s July monetary policy meeting - Dow edged +16-points or +0.04% higher. Travelers Companies Inc (up +2.02%) was the leading performer in the 30-stock index, while technology heavyweight Amazon.com Inc (-1.84%) and Apple Inc (-1.97%) were the key drags. Home Depot Inc fell -1.34% a day after the home improvement giant released its second quarter result.
Major technology companies led declines on US equity markets overnight - Dow inched +10-points or +0.02% higher to 44,922.27, touching a fresh record intra-day high (45,207.39). Nvidia Corp (down -3.50%) and Boeing Co (-3.19%) both fell over >3%. Reuters reported that Nvidia could look to deliver samples of a new artificial intelligence (AI) chip, entatively known as the B30A, to Chinese clients for testing as early as next month. Separately, there were reports that Chief Executive Officer (CEO) Jensen Huang sold 150,000 shares in the AI semiconductor giant.
US equity markets opened the week little changed - Dow slipped -34-points or -0.08%. UnitedHealth Group Inc (up +1.47% after jumping +11.98% last Friday (15 August)) was the leading Dow component for a second session running after filings with the Securities and Exchange Commission (SEC) released late last week recorded that Berkshire Hathaway Inc took a new positions in the health insurer.
US equity markets mixed to close out a strong week as Wall Street tempered its rate-cut hopes following the latest inflation and retail sales data - Dow added +35-points or +0.08% to 44,946.12, logging its first record intra-day high (45,203.52) since December in the opening minutes of last Friday’s (15 August) session. UnitedHealth Group Inc jumped +11.98% after filings released after the close of the previous session with the Securities and Exchange Commission (SEC) recorded that Berkshire Hathaway Inc took a new positions in the health insurer. Cisco Systems Inc (down -4.47%) was the worst performing Dow component, with HSBC downgrading the networking giant to a ‘hold’ recommendation from ‘buy’ following the company’s fiscal fourth quarter result a day earlier.
US equity markets settled little changed, paring earlier declines that came following wholesale inflation data that revived some concerns about tariffs inducing price pressures - Dow slipped -11-points or -0.02%, paring an earlier decline of more than >200-points. 3M Co -2.22% Amazon.com Inc +2.86%
US equity markets advanced, with both the S&P 500 and Nasdaq booking fresh record highs - Dow rose +464-points or +1.04% to 44,922.27, settling within 0.2% of its record closing high in December. UnitedHealth Group Inc (up +3.91%) was the leading performer in the 30-stock index for a second session running, while Merck & Co Inc (+3.00%) and Nike Inc (+3.07%) both rose ~3%.
The S&P500 and Nasdaq booked fresh record closing highs after tame inflation figures raised the likelihood of a Federal Reserve interest rate cut in September - Dow rose +484-points or +1.10% UnitedHealth Group Inc (up +3.65%) was the leading performer in the 30-stock index overnight. Goldman Sachs Group Inc (+3.36%) also gained over >3% despite President Trump criticising the investment bank’s Chief Executive Officer (CEO), David Solomon, on the Truth Social platform. "David Solomon and Goldman Sachs refuse to give credit where credit is due," President Trump wrote on Truth Social. "They made a bad prediction a long time ago on both the Market repercussion and the Tariffs themselves, and they were wrong, just like they are wrong about so much else." American Express Co (+2.36%), Boeing Co (+2.94%) and Home Depot Inc (+2.19%) all rose over >2%.
US equity markets retreated ahead of key inflation figures tonight AEST, shrugging off widely anticipated news that President Trump had signed an executive order that extended the deadline for tariffs on Chinese goods by another 90-days into early November - Dow fell -201-points or -0.45%, with Salesforce.com (down -3.26%) and International Business Machines (IBM) Corp (-2.46%) the biggest decliners in the 30-stock index. Apple Inc (down -0.83%) snapped a three-session winning streak that had lifted the stock ~12.5% over that timeframe. The company’s next major iPhone product launch date is rumoured to be 9 September.
US equity markets closed out a strong week on a positive footing, with the Nasdaq hitting a fresh record high as investors eye inflation figures and key geopolitical negotiations later in the week - Dow rose +207-points or +0.47% to 44,175.61, settling less than <2% away from its first new high since December. Apple Inc (up +4.24%) extended its rally into a third consecutive session following the iPhone maker's commitment to invest an additional US$100B in U.S. manufacturing and was the leading performer in the 30stock index.
US equity markets mixed after a choppy session - Dow settled -224-points or -0.51% lower after trading in a 690-point range for the session and recording its biggest intra-day reversal since 18 June). Caterpillar Inc fell -2.48%
Technology majors led the latest advance on US equity markets - Dow rose +81-points or +0.18% Apple Inc rallied +5.09% to be the leading performer in the 30-stock index after a White House official confirmed that the iPhone maker will announce an additional US$100B investment in the U.S., building on a commitment from earlier this year for US$500B in investments over the next four years. The company is also expected to announce a new American manufacturing program that aims to move more of its supply chain and advanced manufacturing stateside and that is meant to encourage other companies to boost manufacturing of critical components in the U.S. Chief Executive Officer (CEO) Tim Cook and President Trump formally confirmed the announcement after the close of the session. Amazon.com Inc (+4.0%) and Walmart Inc (+4.08%) both gained ~4%.
US equity markets retreated as investors digested the latest wave of corporate earnings, economic data, and various tariff updates - Dow slipped -62-points or -0.14% , with Salesforce Inc down -1.91% and McDonald’s Corp -1.79%, while Cisco Systems Inc (-1.42%), Microsoft Corp (-1.47%) and Visa Inc (-1.38%) all fell ~1.5%.
US equity markets rebounded from last Friday’s (1 August) steep falls amid increased bets for a September interest rate cut in the wake of weaker-than-expected jobs data - Dow rose +585-points or +1.34%, more than erasing last Friday’s (1 August) -542-point/-1.23% decline. Nvidia Corp rallied +3.62% to be the leading performer in the 30-stock index, while Cisco Systems Inc (+2.06%), Goldman Sachs Group Inc (+2.32%), Johnson & Johnson (2.22%), 3M Co (+2.40%), Microsoft Corp (+2.20%) and Walt Disney Co (+2.37%) all climbed over >2%. Boeing Co (+0.20%) is facing its second work stoppage in less than a year after more than 3,000 workers went on strike at midnight following a rejection of the plane maker's latest offer on Sunday (3 August).
US equity markets fell sharply to open August as new U.S. tariffs on dozens of trading partners and Amazon.com Inc’s underwhelming earnings weighed on sentiment, while a weaker payrolls report added to risk aversion - Dow fell -542-points or -1.23% to 43,588.58, marking the 30-stock index’s biggest one-day drop since 13 June. with Amazon (down -8.27%) the worst performer in the 30-stock index. Ten Dow components logged declines of more than >2%, including UnitedHealth Group Inc (-4.72%) and 3M Co (-3.22%).
US equity markets weaker as investors eyed some fresh ‘Big Tech’ earnings after the closing bell and tonight’s AEST key jobs data - Dow fell -330-points or -0.74%. UnitedHealth Group Inc lost -6.19% to be the worst performer in the 30-stock index, while Merck & Co Inc lost -4.44% International Business Machines (IBM) Corp (-2.73%), Nike Inc (-2.60%) and Salesforce Inc (-2.45%) all fell ~2.5%. Microsoft Corp +3.95%, with the company’s market capitalisation briefly climbing above >US$4 trillion
US equity markets settled with modest losses as investors digested the latest monetary policy pronouncements from the Federal Reserve and eyed results after the closing bell from two of the so-called ‘Magnificent Seven’ cohort of mega-capitalisation technology companies - Dow fell -172-points or -0.38% , with 3M Co (down -3.41%) the worst performer in the 30-stock index. Procter & Gamble Co lost -2.38% after the company posted better-than-expected fourth quarter results after the close of the previous session and named Shailesh Jejurikar as its new chief executive. Nvidia Corp (up +2.14%) was the leading Dow component overnight.
The S&P 500 and Nasdaq pulled back from record highs as investors waded through a fresh round of corporate earnings releases and eyed the Federal Reserve’s latest interest rate tomorrow morning AEST (31 July) - Dow fell -205-points or -0.46%
US equity markets kicked off an extremely busy week with modest gains, lifting the S&P500 and Nasdaq to fresh record highs following news that the US and European Union (EU) had reached a framework for a trade deal on Sunday (27 July) - Dow slipped -64-points or -0.14% to 44,837.56. Nike Inc rallied +3.89% to US$79.24 and was the leading performer in the 30-stock index after J.P. Morgan upgraded the stock to "overweight" from "neutral" with a target price of US$93 and said investors should "just buy it" ahead of next year’s football World Cup co-hosted by the US, Canada and Mexico.
Chris Titley sits down with Jason Orthman, Deputy Chief Investment Officer / Lead Portfolio Manager / Investment and Executive Deputy Committee Chairs / Executive Director at Hyperion Asset Management Limited. Hyperion Asset Management is an Australian boutique fund manager, established in 1996, specializing in high-conviction growth-style investments in Australian and global equities. Based in Brisbane, the company is 50.1% owned by its executives, with Pinnacle Investment Management holding the remaining stake. Hyperion focuses on sustainably growing clients’ wealth over the long term (minimum five years) by investing in high-quality companies with strong value propositions, sustainable competitive advantages, innovative cultures, and large addressable markets.
US equity markets advanced, with the S&P and Nasdaq logging fresh record closing highs ahead of a busy week that includes key central bank monetary policy meetings, fresh corporate earnings releases and President Trump's 1 August deadline for negotiating trade deals - Dow rose +208-points or +0.47% to 44,901.92, settling just 0.25% shy of a its all-time record closing high set on 4 December (45,014.04). American Express Co (up +1.09%), Goldman Sachs Group Inc (+1.36%), McDonald’s Corp (+1.35%), 3M Co (+1.32%) and Nike Inc (+1.13%) all gained over >1%.
US equity markets mixed following a fresh flurry of corporate earnings releases with the both the S&P 500 and Nasdaq edging up to fresh record closing highs albeit settling well off their highs of the session - Dow fell -316-points or -0.70%. International Business Machines (IBM) Corp dropped -7.62% despite the company’s headline numbers topping Wall Street’s expectations for the second-quarter after the close of the previous session, with the software segment underwhelming investors’ expectations. UnitedHealth Group Inc fell -4.76% after the health insurer confirmed several reports in recent months that the Department of Justice is probing aspects of its business. The company said it recently "proactively reached out to the Department of Justice after reviewing media reports about investigations into certain aspects of the Company’s participation in the Medicare program," and is now "complying with formal criminal and civil requests from the Department.
US equity markets advanced amid some positive news and headlines in the trade front, while investors continued to wade through the latest quarterly earnings releases - Dow rallied +508-points or +1.14% to 45.010.29, falling just shy of recording its first record closing high since December. All of Boeing Co (up +2.36%), Caterpillar Inc (+2.49%), Chevron Corp (+2.05%), Goldman Sachs Group Inc (+2.44%), Merck & Co Inc (+2.90%), UnitedHealth Group Inc (+2.59%) and Nvidia Corp (+2.25%) rising over >2%.
US equity markets mixed as investors waded through the latest round of corporate earnings releases and eyed results from the first of the ‘Magnificent Seven’ cohort of mega-capitalisation stocks after the closing bell of tonight’s AEST session - Dow rose +179-points or +0.40%. Amgen Inc (up +3.32%) and Merck & Co Inc (+2.90%) were the leading performers in the 30-stock index. Nvidia Corp (down -2.54%) was the weakest Dow component overnight.
US equity markets advanced to kick off a busy week of second quarter earnings, with the S&P 500 and Nasdaq hitting fresh record closing highs - Dow dipped -19-points or -0.04%, with American Express Co (down -1.62%) and Travelers Companies Inc (-1.03%) both falling over >1%.
US equity markets retreated on Friday (July) amid reports President Trump had pushed for greater tariffs on the European Union (EU) - Dow fell -142-points or -0.32%, with Merck & Co (down -1.91%) and UnitedHealth Group Inc (-1.8%) both down ~1.9%.
The S&P 500 and Nasdaq scaled fresh record highs following better-than-expected retail sales data and another busy corporate earnings calendar - Dow rose +230-points or +0.52%, with Coca-Cola Co (up +1.91%) and Walt Disney Co (+1.99%) rising over >1.9%. Caterpillar Inc (+1.26%), Microsoft Corp (+1.20%) and Nvidia Corp (+0.95%) all hit record all-time highs
US equity markets advanced after a choppy session as investors digested a fresh round of second quarter earnings releases and reports that President Trump was giving serious thought to dismissing Federal Reserve Chair Jerome Powell - Dow rose +231-points or +0.53%, recovering from an earlier slide of as much as -264-points. Amgen Inc (up +2.23%) and Caterpillar Inc (+2.04%) rose over >2%.
•US equity markets weaker as investors digested the latest inflation figures and a mixed bag of second quarter results from some major banks - Dow dropped -436-points or -0.98% to 44,023.29, with American Express Co (down -3.20%) and UnitedHealth Group Inc (-2.95%) both down ~3%. Nvidia Corp rallied +4.04% to a record closing high of US$170.70 and was the leading Dow component following news that the U.S. government plans to grant licenses for the chipmaker to sell its H20 graphics processing units in China.
On 7 July the AFR published a list of 37 Economists who had answered a poll on when the RBA would next cut rates. 32 of them thought that the RBA would cut on 8 July. Only 5 of them did not believe the RBA would cut on 8 July. I was one of them. The RBA did not cut.
US equity markets logged modest gains as investors continued to monitor trade headlines ahead of key inflation data and the beginning of second quarter earnings season tonight AEST - Dow rose +88-points or +0.20% Boeing Co rose +1.62% after a preliminary report was released over the weekend regarding the cause of last month's Air India crash that killed more than 250 people on board and on the ground and did not recommend actions to fix any safety issues for operators or manufacturers of the Boeing plane and GE Aerospace (+2.71%) engines. Chevron Corp (down -2.36%) and Procter & Gamble Co (-2.09%) fell over >2%.
US equity markets retreated on Friday (11 July) as President Trump’s threats of new tariffs against a host of U.S. trade partners unnerved investors, with the S&P 500 and Nasdaq pulling back from record closing highs logged a day earlier - Dow fell -279-points or -0.63%, with Nike Inc (down -2.67%) and Visa Inc (-2.23%) falling over >2%.
US equity markets advanced, with the S&P 500 and Nasdaq hitting fresh record highs as investors continued to shrug off tariff-related concerns - Dow rose +192-points or +0.43%, with American Express Co (up +2.49%) the leading performer in the 30-stock index. Nvidia Corp rose +0.75% to settle with a closing market capitalisation above >US$4 trillion after breaching that level intra-session a day earlier.
US equity markets advanced, with the technology-centric Nasdaq climbing to a fresh record high as tariff and trade headlines remained in focus and as investors parsed meeting minutes from the Federal Reserve’s June monetary policy meeting - Dow rose +218-points or +0.49% to 44,458.30, settling ~1% below its record closing high. Nvidia Corp rose +1.80% to US$162.88, pulling back from earlier highs that saw the chipmaker become the first ever company to achieve a market capitalisation of US$4 trillion. Nvidia needed to finish at or above US$163.93 to reach the $4 trillion milestone at the close. Nonetheless, the chipmaker’s closing market capitalisation of US$3.974 trillion was a record closing peak for any company. Amazon.com Inc +1.45% that its cloud division has developed hardware to cool down next-generation Nvidia graphics processing units (GPUs) that are used for artificial intelligence workloads. UnitedHeatlh Group Inc fell -1.56% to be the worst performing Dow component overnight following a report from the Wall Street Journal that ex-employees and medical professionals have been interviewed by Department of Justice investigators over a probe into the insurer's Medicare billing practices.
US equity markets settled little changed after another choppy session dominated by trade and tariff headlines - Dow fell -166-points or -0.37%, with JPMorgan Chase & Co (down -3.15%) and Nike Inc (-3.41%) down over >3%. Amazon.com Inc fell -1.84% as the eCommerce giant’s four-day "Prime Day" sale event kicked off overnight. Nvidia Corp rose +1.11% and continues to close in on becoming the first company ever to market capitalisation of US$4 trillion.
US equity markets fell sharply after resuming trading following the Independence Day holiday long weekend, with the S&P 500 and Nasdaq retreating from record all-time highs as investors digested a flurry of headlines related to tariffs and global trade - Dow dropped -422-points or -0.94%,with Sherwin-Williams Co (down -2.18%) the worst performer in the 30-stock index, while seven other components fell over >1.5%. Nvidia Corp fell -0.69% to US$158.24 despite analysts at Citigroup lifting their target price to US$190 per share (from US$180 previously) and now calculating that the total addressable market for data-centre AI chips could be $563B by 2028 (versus a prior projection of US$500B).Citigroup believes sovereign AI, which refers to countries looking to build out their own AI infrastructure, could contribute “up to billions of dollars” to Nvidia’s top line in 2025 and will come to make up an even bigger portion of Nvidia’s business mix next year. Amazon.com Inc inched +0.03% higher and was the only member of the so-called ‘Magnificent Seven’ cohort of mega-capitalisation technology stocks to advance ahead of its annual “Prime Day” sale event kicking off tonight AEST (8 July). After sales hit an all-time high at last year’s event, Amazon has extended this year's sale to four days from two.
US equity and bond markets were CLOSED on Friday night AEST (4 July) for Independence Day.For the shortened trading week, the Dow rallied +2.30%. The S&P 500 climbed +1.72% and the Nasdaq +1.62%
US equity markets advanced in an abbreviated trading session ahead of the Independence Day holiday, with the S&P 500 and Nasdaq hitting fresh record closing highs for the fourth time in the last five days as investors a stronger-than-expected jobs report - Dow rose +334-points or +0.77% to 44,828.53, falling just short of logging its first record closing high since December. American Express Co (up +1.03%), investment banks Goldman Sachs Inc (+1.09%) and JPMorgan Chase & Co (+1.86%) and Nvidia Corp (+1.33%) all hit record highs.
US equity markets advanced ahead of key jobs data tonight AEST ahead of the 4 July holiday, with investors also continuing to the progress of the massive tax and spending bill that is now being debated in the House of Representatives (after narrowly being approved in the Senate a day earlier) while eying the 9 July deadline tariff deadline - Dow dipped -11-points or -0.02% Nike Inc (up +4.06%) was the leading performer in the 30-stock index, climbing to a three-month high. Apple Inc (up +2.22%) advanced for a fourth straight session following reports at the start of the week that the iPhone maker could use OpenAI or Anthropic to power the next generation of Siri. Apple was the only member of the ‘Magnificent Seven’ to lose ground in the second quarter (down -7.64%). Microsoft Corp (down -0.20%) confirmed a Bloomberg report of plans to make more cuts to its global workforce that could impact an estimated 9K workers and primarily effect sales teams. The latest cuts come just weeks after a reported 3% workforce reduction affecting ~6K employees. Amazon.com Inc slipped -0.24%, with a Securities and Exchange Commission (SEC) filing recording that founder Jeff Bezos more than 3.3M shares of his company in a sale valued at ~US$736.7M in late June. The stock sale is part of a previously arranged trading plan adopted by Mr Bezos in March. Under that arrangement, Bezos plans to sell up to 25M shares of Amazon over a period ending 29 May, 2026.
US equity markets mixed to open the new month and quarter, with the S&P 500 and Nasdaq pulling back from record highs as investors continued to monitor trade negotiations and the progress of President Trump’s "One Big Beautiful Bill" through Congress - Dow climbed +400-points or +0.91% Amgen Inc (+5.05%) and UnitedHealth Group Inc (+4.54%) rallied over >4%, while Merck & Co Inc (+3.35%), Nike Inc (+3.34%) and Sherwin-Williams Co (+3.38%) gained over >3%. Nvidia Corp (down -2.97%) was the worst performer in the 30-stock index overnight.
US equity markets advanced, pushing further into record territory to cap another strong month and impressive second quarter rebound - Dow rose +276-points or +0.63% to 44,094.77. Goldman Sachs Group Inc gained +2.45% to US$707.75 to be the leading component in the 30-stock index overnight and logging its third record closing high, with analysts at Citigroup noting the investment bank emerged as “the big winner” in last Friday’s (27 June) latest annual bank stress tests conducted by the Federal Reserve due to its ”much better-than-expected” improvement in stress capital buffers. Apple Inc +2.03% following a report from Bloomberg News that the company is considering using technology from Open AI or Anthropic to power voice assistant Siri.
The benchmark S&P 500 index and Nasdaq indices hit record all-time highs on Friday (27 June) albeit US equity markets settled off their session highs (and briefly turned negative in afternoon trading) as investors digested a mixture of trade policy news - Dow rose +432-points or +1.00% to 43,819.27, still sitting ~2.7% below its record high. Nike Inc soared +15.19% to pace gains in both the Dow and S&P 500 after athletic apparel maker topped fiscal fourth-quarter estimates after the close of last Thursday’s (26 June) session. Boeing Co rallied +5.91%, buoyed by news of Washington and Beijing agreeing on a framework of a trade deal after a months-long tariff war. Nvidia Corp (+1.76%) insiders sold over >US$1B worth of company stock in the past year, with a notable uptick in recent trading activity as executives capitalise on surging investor interest in artificial intelligence (AI), the Financial Times (FT) reported on Sunday (29 June). More than >US$500M of the share sales took place this month as the chip designer's share price climbed to an all-time high. Nvidia last week usurped Microsoft Corp (down -0.30%) as the world’s most valuable company by market capitalisation. A Securities and Exchange Commission (SEC) filing recorded that Chief Executive Officer (CEO) Jensen Huang started selling shares last week for the first time since September.
US equity markets advanced and remained on track to book a second consecutive month of strong gains, with White House Press Secretary Karoline Leavitt playing down the July tariff deal deadlines that have been looming over markets - Dow climbed +404-points or +0.94% to 43,386.84, its highest close since 28 February but still -3.6% below its record closing high set on 4 December 2024 of 4,5014.04. Caterpillar Inc (up +2.77%) and Goldman Sachs Group Inc (+2.58% and touching a record intra-day high along with JPMorgan Chase & Co (+1.65%)) gained over >2.5%. Nvidia Corp added +0.46% and touched a fresh record high that briefly lifted the chipmaker’s market capitalisation above >US$3.8 trillion, having reclaimed its title of the world’s most valuable company by market capitalisation from Microsoft Corp (+1.05% and hitting a fresh record high) on Wednesday (25 June).
US equity markets settled narrowly mixed - Dow eased -107-points or -0.25%, with McDonald’s Corp (down -2.03%) the worst performer in the 30-stock index overnight. Nvidia Corp climbed +4.33% to a record closing high of US$154.31. It marked the chipmaker’s first record close since January, lifting Nvidia’s market capitalisation to US$3.77 trillion to reclaim the title as the world’s most valuable company by market capitalisation from one of its main customers Microsoft Corp (+0.44% to US$492.27, marking the 12th record close in 17 June trading sessions). Nvidia hosted its annual shareholder meeting overnight, with Chief Executive Officer (CEO) Jensen Huang identifying robotics as the company’s biggest market for potential growth outside of artificial intelligence (AI) and noting that self-driving cars would be the first major commercial application for the technology. “We have many growth opportunities across our company, with AI and robotics the two largest, representing a multitrillion-dollar growth opportunity,” Mr Huang said. International Business Machines (IBM) Corp fell -0.93% after touching a fresh record intra-day high (US$296.16) earlier in the session.
US equity markets rallied and oil prices tumbled for a second consecutive session as investors welcomed news of a fragile cease-fire agreement between Iran and Israel - Dow rose +507-points or +1.19% to 43,089.02, with six of the index’s components logging gains of over >2%. American Express Co (up +2.92%), Salesforce Inc (+2.95%) and Nvidia Corp (+2.59%) gained over >2.5%. International Business Machines (IBM) Corp (1.59%) and Microsoft Corp (+0.85%) hit record highs.
US markets were stronger overnight, as investors shrugged off Iran’s missile attacks on two US military bases in Qatar and Iraq. The view being it is an indication of Iran’s inability or unwillingness to engage in a wider conflict. The Dow rose 0.89% to 42,581.78. Paint manufacturer Sherwin-Williams was the top performer of the 30-stock index, rising 3.1%.
US equity markets resumed trading following the Juneteenth National Independence Day holiday, with investors’ attention remaining keenly focussed on developments in the Middle East - Dow inched +35-points or +0.08% higher. Apple Inc rose +2.25% to be the leading performer in the 30-stock index and buck a weaker trend among the so-called ‘Magnificent Seven’, with reports emerging executives have held internal talks about potentially bidding for artificial intelligence (AI) startup Perplexity AI. If regulators order Apple to end its partnership with Google, purchasing Perplexity would make it easier for the company to develop an AI-based search engine. The Bloomberg report came after CNBC confirmed on Friday (20 June) that Meta Platforms Inc (down -1.93%) approached Perplexity AI about a potential takeover bid before ultimately investing $14.3B into Scale AI. Microsoft Corp eased -0.59% to US$477.40 after touching a fresh record intra-day high (US$483.46). Amazon.com Inc lost -1.33% after the news that the UK's Groceries Code Adjudicator has opened a formal investigation over concerns that the retail giant may have breached rules requiring timely payments to suppliers.
US equity and bond markets were CLOSED overnight.In US corporate earnings, global professional services company Accenture, used car retailer CarMax Inc, Darden Restaurants and supermarket group Kroger Co report quarterly results on Friday night AEST (20 June).
US equity markets fell as the Israel-Iran conflict continued to dominate investor sentiment and drive volatility and a fresh spike in oil prices - Dow lost -299-points or -0.70%. Merck & Co Inc (down -3.31%) and Nike Inc (-3.07%) both fell over >3%. Amazon.com Inc (down -0.59%) said its Prime Day discount event for Prime members next month will extend to four days (8 July-11 July).
US equity markets rebounded amid reports that Iran is willing to negotiate over its nuclear program in an effort to contain the conflict with Israel - Dow rose +317-points or +0.75%, with American Express Co (+2.23%), Cisco Systems Inc (+2.22%), investment banks Goldman Sachs Group Inc (+2.33%) and JPMorgan Chase & Co (+2.04%), Nike Inc (+2.26%), and Salesforce Inc (+2.12%) Microsoft Corp +0.88% touched a record all-time intra-day high of US$480.69
US equity markets retreated on Friday (13 June) after Israel launched a wave of airstrikes on Iran and its nuclear facilities, pushing oil prices sharply higher - Dow dropped -770-points or -1.79% Sherwin-Williams Co -5.7% was the worst performer in the 30-stock index, with analysts at Citigroup cutting their recommendation on the stock to "neutral" from "buy," indicating that the persistence of high mortgage rates and softness in the housing market could weigh on the paint distributor's performance in the near term. Visa Inc fell -4.99% and American Express Co -3.42% after a report in The Wall Street Journal indicated that Walmart Inc (-0.41) and Amazon.com Inc (-0.53%) are considering issuing their own stablecoins, a move that could help the retail giants sidestep the interchange fees charged by credit-card providers. Nike Inc (-3.61%) and Salesforce Inc (-3.19%) also fell over >3%.
US equity markets advanced and remained on track to book a third straight weekly gain as investors awaited more signs of progress on trade negotiations and responded to fresh economic data - Dow added +102-points or +0.24% Boeing Co -4.79% after an Air India 787-8 Dreamliner jet crashed minutes after taking off in India's western city of Ahmedabad, killing more than 200 people.
US equity markets retreated, with the S&P 500 and Nasdaq handing back earlier gains and snapping a three-session winning streak as investors digested a tame inflation report and fresh Middle East tensions while awaiting further details on China-U.S. trade talks - Dow flat Goldman Sachs Group Inc (up +1.51%), International Business Machines (IBM) Corp (+1.91%) and UnitedHeath Group Inc (+2.23%) all gained over >1.5%, while Amazon.com Inc (down -2.03%), Apple Inc (-1.92%) and Home Depot Inc (-2.02%) declined ~2%.
US equity markets advanced for s third session as US officials signalled progress on US-China trade talks - Dow rose +105-points or +0.25% Nike Inc +3.17% was the leading performer in the 30-stock index, while Merck & Co Inc (+2.55%) and Walt Disney Co (+2.65%) gained over >2.5%. International Business Machines (IBM) Corp climbed +1.53% to a fresh record closing high of US$276.24 after the company outlined what is called a “viable path” to building the world’s first "fault-tolerant" quantum computer by the end of the decade named IBM Quantum Starling. IBM also booked its longest winning streak since December 2023, recording its eighth consecutive session advance after announcing plans to build what it calls “the world’s first large-scale, fault-tolerant quantum computer” by 2029, saying it will make way for practical and scalable quantum computing. McDonald’s Corp fell -1.43% after the fast food giant received its third broker downgrade in three-days.
US equity markets settled with modest gains, building on last week’s advance that saw the benchmark indices log weekly gains of over >1% as investors awaited news from trade talks taking place between the U.S. and China - Dow flat at 42,761.76. Apple Inc -1.21% as its annual Worldwide Developers Conference kicked off overnight, with the company announcing its first new iPhone operating system redesign since 2013. However, there were no highly anticipated updates around artificial intelligence (AI)-enhanced Siri features, with Senior Vice President of Software Engineering Craig Federighi saying that the Siri features “need more time to reach our high quality bar” and that more information will be released “in the coming year.” Boeing Co (up +3.18%) aircraft manufacturer landed its first plane in China after the easing of trade tensions with the U.S. led Beijing to allow deliveries of its jets again. Nvidia Corp +0.64% Chief Executive Officer (CEO) Jensen Huang pledging to boost investment in the UK’s AI sector at London Tech Week, describing a “Goldilocks” opportunity. Meanwhile, the NVIDIA GTC 2025 - AI Conference for Developers kicks off in Paris tonight AEST.
•US equity markets retreated following g a choppy session that saw the S&P 500 and Nasdaq snap three-session winning streaks as investors digested the latest developments on the trade front and an escalating spat between Elon Musk and President Trump, while eyeing key jobs data tonight AEST - Dow fell -108-points or -0.25%, with Apple Inc (down -1.05), Nvidia Corp (-1.36%), Procter & Gamble Co (-1.9%), UnitedHealth Group Inc (-1.51%) and Walmart Inc (-1.4%) all down over >1%. Consumer products giant Procter & Gamble outlined plans to trim ~15% of its non-manufacturing workforce (or ~7K jobs) at a n industry conference in Paris. Microsoft Corp rose +0.82% to a record closing high of US$467.68, becoming the first among its peers to reclaim its highs since the selloff among large capitalisation technology peers earlier this year. The gin also saw Microsoft become the largest US company by market capitalisation, usurping Nvidia just two-days after the chipmaker had
US equity markets mixed as investors awaited concrete developments on the trade front and digested softer-than-expected employment data - Dow eased -92-points or -0.22%, snapping a four-session streak. Chevron Corp (down -1.56%) and Verizon Communications Inc (-1.35%) dropped over >1%.
Chip stocks traded strongly for a third consecutive session to underpin fresh gains on US equity markets - Dow rose +214-points or +0.51%. Nvidia Corp rose +2.8% to US$141.22 to be the leading performer in the 30-stock index, reclaiming the title from Microsoft Corp (+0.22%) as the most valuable US company by market capitalisation (at US$3.45 trillion).
US equity markets opened the new month with modest gains, settling near their session highs as Wall Street shook off increasing trade tensions between the US and China - Dow inched +35-points or +0.08% higher Boeing Co +2.00% to US$211.47, buoyed by an upgrade to ‘Buy’ (and upgraded target price of US$260) from ‘Hold’ by analysts at Bank of America Securities, who observed that the company’s “aircraft have emerged as a favoured trade mechanism in recent U.S. trade negotiations, which we suspect will continue.” The analysts report also noted that “Given the progress made under [Chief Executive Officer] Kelly Ortberg’s leadership, we are more confident in the company’s turnaround.”
US equity markets settled little changed following a volatile session to close out a volatile month as U.S. President Trump slammed China before sounding upbeat about reaching a trade deal - Dow added +54-points or +0.13% Nvidia Corp -2.92%
•US equity markets advanced and remain on track to log weekly and monthly gains, buoyed by a solid first quarter result from chip giant Nvidia Corp (up +3.25%) that saw its data centre business record . However, gains were capped as investors monitored judicial developments surrounding President Trump’s “reciprocal” tariffs - Dow rose +11-points or +0.28% Boeing Co +3.32% and hit a 52-week high after Chief Executive Officer (CEO) Kelly Ortberg said its airplane deliveries to China will resume next month after handovers were paused amid a trade war with the Trump administration. Mr Orberg also said Boeing could ramp up production of its best-selling Max jets to 47 a month by the end of the year. Salesforce Inc dropped -3.3% and was the worst performing Dow component overnight the cloud software giant
US equity markets retreated and settled near their session lows ahead of the highly anticipated first quarter result from ‘Magnificent Seven’ and Dow component Nvidia Corp after the closing bell - Dow fell -245-points or -0.58%
US equity markets settled sharply higher after resuming trading after the Memorial Day long weekend, with investors responding to President Trump’s decision over the weekend to delay the implementation of a 50% tariff on imports from the European Union (EU) to 9 July from 1 June - Dow rose +741-points or +1.78% to 42,344, snapping a four session losing streak. Nike Inc (up +4.68%) and Nvidia Corp (+3.21%).
US equity and bond markets were CLOSED overnight in observance of Memorial Day. However, S&P 500 and Nasdaq futures were over >1% higher after President Trump delayed the 50% tariffs which were set to be imposed on the European Union (EU) on 1 June.
•US equity markets fell on Friday (23 May) after President Trump reignited tariff concerns with a series of social media posts - Dow lost -256-points or -0.61%, with Salesforce Inc (down -3.63%) the worst performer in the 30-stock index. Apple Inc (down -3.02%) fell for an eighth straight session after President Trump posted on his Truth Social website that the technology giant will have to pay a tariff of at least 25% for iPhones made outside the United States. "I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else," President Trump wrote. Bank analysts estimated that a $US1200 iPhone would, if made in America, jump in price anywhere from US$1,500 to US$3,500.
•US equity markets steadied after steep losses in the previous session, - Dow flat, unwinding an earlier rally of as much a +-points. Nike Inc gained +2.23% and was the leading Dow component overnight after confirming that it will resume selling apparel and footwear on Amazon.com Inc’s (+0.98%) platform for the first time since 2019. Separately, Nike said it intends to increase the prices of certain items by 1 June. UnitedHealth Group Inc (down -2.08%) was the worst performer in the 30-stock index for a second session running, under fresh pressure after the Centres for Medicare & Medicaid Services said it plans to take a more "aggressive" approach to auditing Medicare Advantage plans.
US equity markets fell sharply, pushing the Dow and S&P 500 back into negative territory for the calendar year-to-date as longer dated Treasury yields jumped and as investors kept close tabs on a sweeping tax and spending bill that's moving through Congress and could dramatically increase the federal deficit - Dow dropped -817-points or -1.91% UnitedHealth Group Inc (down -5.78%) was the worst performer in the 30-stock index overnight, having been the leading Dow component for the past three sessions. The Guardian reported that the health insurer giant had secretly paid nursing homes to reduce transfers of residents in need of care to hospitals. The company denied the allegations.
US equity markets recent rally paused as Treasury yields ticked higher - Dow eased -114-points or -0.27%. Nvidia Corp fell -0.88% Chief Executive Officer (CEO) Jensen Huang said Monday (19 May) the company would be opening its artificial-intelligence server platform to rival chip makers but he also warned the U.S. government’s move to limit chip exports to China could hit revenue by $15B. UnitedHealth Group Inc (up +1.8%) was the leading Dow component for a third consecutive session, continuing to rebound from steep losses last week that was spurred by the departure of its CEO and reports that the health insurer faces a Department of Justice (DOJ) investigation and that saw the stock fall over >20% to hit 5-year low last Thursday (15 May).
US equity markets advanced, reversing earlier losses as investors digested Moody Ratings’ decision after the close of trading last Friday (16 May) to downgrade the U.S.’s credit rating to Aa1 from Aaa - Dow rose +137-points or +0.32%, recovering from an earlier decline of -317-points. UnitedHealth Group Inc (up +8.21%) was the leading Dow component for a second straight session, continuing to rebound from steep losses last week that saw the stock fall over >20% and hit 5-year low last Thursday (15 May). The insurer disclosed after Friday's (16 May) close that new Chief Executive Officer (CEO) Stephen Hemsley spent US$25M to buy 86,700 shares, to bring his direct ownership to nearly 680K shares. And Chief Financial Officer (CFO) John Rex invested US$5M to buy 17,175 shares, to bring his direct ownership to a ~204K shares. JPMorgan Chase & Co (down -1.00%) after the investment bank hosted its annual investor day, reiterating its key financial guidance. JPMorgan maintained its forecast for full-year net interest income (NII) at ~US$94.5B, including US$90B excluding markets, and projected expenses to hold steady at ~US$95B. The bank also reaffirmed its 17% return on tangible common equity (ROTCE) target. Meanwhile, CEO chief Jamie Dimon warned against complacency in the face of a slew of risks, citing everything from inflation and credit spreads to geopolitics.
US equity markets advanced on Friday (16 May) to cap a strong week and despite news Moody Ratings had downgraded the US’s highest investment grade position - Dow rose +332-points or +0.78% to 42,654.74, moving into positive territory for 2025. UnitedHealth Group Inc rebounded +6.40%, clawing back some of the heavy losses posted in the prior session amid reports that the insurer's Medicare Advantage business was the subject of a criminal probe. News of the investigation came on the heels of the insurance giant withdrawing its full-year guidance and announcing the departure of its CEO. Nvidia Corp added +0.42% ahead of CEO Jensen Huang taking the stage on Sunday (18 May) at Computex, an annual technology trade show, with this year’s theme - “AI Next” - focused squarely on the emerging technology that has lately powered growth in the company's business. Microsoft Corp after offering a series of new concessions to the European Commission (EC) in a bid to settle a long-running antitrust investigation into the bundling of its Teams communications app with Office 365. Its proposal reportedly included unbundling Teams from its Office and Microsoft 365 software suites, offering those products at a lower price without Teams, and enhancing interoperability for rival services.
US equity markets advanced - Dow rose +272-points or +0.65%. Cisco Systems Inc rallied +4.85% and was the leading performer in the 30-stock index overnight after the networking company reported earnings per share (EPS) and revenue that topped consensus analysts’ forecasts for the fiscal third quarter after the close of the previous session. UnitedHealth Group dropped -10.93% following a report from The Wall Street Journal (WSJ) published after the close of the previous session that said the Justice Department was investigating the insurer for possible Medicare fraud. UnitedHealth said in a statement it hadn’t been notified by the Justice Department of the criminal investigation, adding that it stands “by the integrity of our Medicare Advantage program.” Apple Inc eased -0.47% after President Trump chided the company’s Chief Executive Officer (CEO) Tim Cook, saying he wanted the iPhone maker to build more of its devices in the U.S. and not in India. “I had a little problem with Tim Cook yesterday. I said to him, Tim, you’re my friend. I treated you very good. You’re coming here with $500 billion but now here you are building all over India,” President Trump said in Qatar.
•US equity markets advanced - Dow slipped -89-points or -0.21%, with Merck & Company Inc down -4.12% was the worst performer in the 30-stock index. UnitedHealth Group Inc dropped over >7% in extended trading (after sliding -1.08% in regular trading) after the Wall Street Journal reported that the U.S. Justice Department is investigating the insurer for potential criminal fraud in its Medicare Advantage business. Nvidia Corp logged a third consecutive session of gains (up +4.16%), climbing over >15% over that stretch and seeing the chipmaker become the third member of the so-called ‘Magnificent Seven’ cohort of large capitalisation stocks to move back into positive territory for the calendar year-to-date – joining fellow Dow component Microsoft Corp (+0.85%) and Meta Platforms Inc (+0.51%). Nvidia also saw its market capitalisation climb back above the US$3 trillion level for the first time since February a day earlier. Boeing Co (up +0.64%) inked a record-breaking order with Qatar Airways that will see the Middle East airline buy up to 210 jets from the US aerospace giant, marking Boeing’s largest ever order of widebody aircraft. Qatar Airways also signed an agreement with GE Aerospace (+0.75%) for more than >400 engines to power the Boeing planes
US equity markets advanced as investors digested a cooler-than-expected inflation report that revived hopes of interest rate cuts later this year - Dow fell -270-points or -0.64%. UnitedHealth Group Inc slumped -17.79%, alone wiping ~410-points off the 30-stock index after the insurance giant withdrew its full-year outlook and announced the surprise exit of Chief Executive Officer (CEO) Andrew Witty after four years in the role. The withdrawal of the 2025 outlook comes less than a month after the company slashed its 2025 guidance, saying costs rose as Medicare Advantage care activity had increased at twice the expected rate. Nvidia Corp rallied +5.63% and climbed back above the US$3 trillion level in market capitalisation terms for the first time since February, buoyed by a Bloomberg report that President Trump is planning to unveil a deal that would afford Saudi Arabia more access to advanced chips manufactured by the company and the likes of Advanced Micro Devices (AMD) Inc (+4.01%). To deal with the U.S.’s national security concerns, the U.S. and Saudi governments have reportedly discussed creating data embassies, where data centres will fall under foreign regulations rather than local laws around data protection. Meanwhile, Nvidia Chief Executive Jensen Huang announced a deal to deploy 18,000 chips with newly launched Saudi AI firm Humain for a data centre that is expected to reach 500 megawatts. AMD also announced a US$10B partnership with the artificial intelligence (AI) company to build out its AI infrastructure over the next five years. Boeing Co rose +2.46% following reports that China had lifted its ban on deliveries of US-made aircraft.
US equity markets soared and settled near their session highs, with the three (3) benchmark indices logging their best single session performance since 9 April after the United States and China said they had agreed to a deal to cut reciprocal tariffs - Dow rose +1,161-points or +2.81% to 42,410.10, its highest close since 26 March and closing 12.66% above its 8 April closing low (37,645.59) to exit a technical correction. Eight of the 30 index components rallied over >5%, including Nike Inc (+7.34%).
A relatively muted end to the week for US equity markets following two-days of gains as investors braced for news from highly anticipated trade talks that are scheduled for this weekend in Switzerland between U.S. and Chinese officials - Dow eased -119-points or -0.29% U.S. Treasury Secretary Scott Bessent said “substantial progress” had been made in the weekend trade negotiations between US and China trade officials, adding that the Trump administration “will be giving details tomorrow, but I can tell you that the talks were productive.” In the same statement, U.S. Trade Representative Jamieson Greer agreed that it was “a very constructive two days. It’s important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought.” China’s delegation later described the weekend meetings as “candid, in-depth and constructive dialogue,” and said a joint statement would be issued Monday (12 May). No specific details of possible points of agreement were revealed by either side. On Friday (9 May), Trump floated the idea of bringing down China’s tariff rate to 80%.
US equity markets advanced but settled well off their session highs, with investor sentiment buoyed a new trade agreement forged between the United States and Britain, while President Trump indicated upcoming talks with China would be “very substantive” and, if productive, could lead to tariff reductions - Dow rose +254-points or +0.62% to 41,368.48, just failing to exit official correction territory. Boeing Co rallied +3.31% and was the leading performer in the 30-stock index after U.S. Commerce Secretary Howard Lutnick said the UK would buy US$10B of aircraft from the aerospace company. Walt Disney Co +2.97% a day after the entertainment giant posted a stronger-than-expected adjusted earnings per share (EPS) and revenue and unveiled a plan to build a theme park in Abu Dhabi, United Arab Emirates.
US equity markets advanced after a choppy session as investors digested the latest corporate earnings releases and the Federal Reserve’s monetary policy decision and soundbites from President Trump on tariffs and trade restrictions - Dow rose +285-points or +0.70%. Nvidia Corp (+3.10%) and the broader chip sector got a boost late in the session after Bloomberg reported that the Trump administration plans to rescind Biden-era AI chip curbs as part of a broader effort to revise semiconductor trade restrictions.
US equity markets retreated as investors digested a fresh slew of earnings reports and ahead of the Federal Reserve’s latest interest rate decision tomorrow morning AEST - Dow fell -390-points or -0.95% Merck & Co -4.59% was the worst performer in the 30-stock index, while Amgen Inc (-3.43%) and UnitedHealth Group Inc (-2.54%) fell over >2.5%
US equity markets advanced - Dow eased -99-points or -0.24%, paring an earlier decline of over >250-points. Microsoft Corp (up +0.2%) extended the gap over Apple Inc (down -3.15%) as the largest company in the U.S. by market capitalisation
US equity markets advanced to cap as investors reacted to strong monthly employment data and news that China is evaluating the possibility of trade talks with the U.S. - Dow rose +564-points or +1.39% to 41,317.43. American Express Co (up +3.09%), 3M Co (+3.03%) and Nike Inc (+3.22%) all climbed over >3%. Nvidia Corp rose +2.59% a report in The Information that the artificial intelligence (AI) chipmaker is working to design semiconductors to sell in China that would comply with U.S. trade restrictions. Microsoft Corp rallied +2.32%, lifting its market capitalisation to ~US$3.235 trillion and pushed passed Apple Inc (down 3.74%, market capitalisation ~US$3.067 trillion) to become the largest company in the U.S. by market capitalisation as investors responded to the latest quarterly results from the technology giants last week. Apple CEO Tim Cook said Trump administration tariffs could cost the iPhone maker US$900M this quarter. Meanwhile, Microsoft closes Skype tonight AEST, the pioneering video-calling service it acquired for US$8.5B 14 years ago.
US equity markets made a positive start to May, with the Dow and S&P 500 extending their rally into an eighth consecutive session amid fresh gains for megacap technology stocks - Dow added +84-points or +0.21% Microsoft Corp +7.63% was the leading performer in the 30-stock index the technology giant reported better-than-expected third-quarter financials after the close of the previous session amid soaring cloud demand. Nvidia Corp rose +2.47% investors welcomed the news that Microsoft and Meta Platforms Inc expect to continue investing heavily in artificial intelligence (AI) infrastructure
•A late rally lifted the Dow and S&P 500 into positive territory for a seventh consecutive session to cap a very volatile month, erasing earlier declines that followed data recording that the US economy contracted for the first time in three years in the first quarter - Dow rose +142-points or +0.35%, recovering from an earlier slide of more than >780-points. Verizon Communications Inc (up +2.58%) and Chevron Corp (down -2.33%) were the best and worst performers respectively in the 30-stock index overnight
The Dow and S&P 500 extended their rally into a sixth consecutive session after Commerce Secretary Howard Lutnick said the Trump administration has negotiated its first trade deal with an unnamed country - Dow rose +300-points or +0.75%, logging its longest winning streak since the period ended 17 July, 2024. Amazon.com Inc slipped -0.17%, recovering from an earlier decline of more than >2%, after White House Press Secretary Karoline Leavitt called the company's reported plan to highlight the impact of tariffs in its pricing a "hostile and political act." Amazon later said such a plan "was never approved and is not going to happen."
The Dow and S&P 500 posted a fifth consecutive session of gains, booking their longest winning streak of 2025 to date and settling well off their session lows in a muted trading to open a very busy week of corporate earnings and economic data - Dow rose +114-points or +0.28%. Boeing Co rose +2.44% to US$182.30, buoyed by an upgrade from analysts at Bernstein to ‘outperform with a target price of US$218 (from US$181 previously), and as its deal to reacquire Spirit AeroSystems Holdings (+2.61%) cleared another hurdle. International Business Machines (IBM) Corp +1.61% after pledging a US$150B investment over the next five years to aid the development of technology in the U.S. The company said it would invest more than US$30B in research and development to continue its domestic manufacturing of mainframe and quantum computers. Nvidia Corp fell -2.05% following a Wall Street Journal (WSJ) report that China's Huawei Technologies has developed a new chip called the Ascend 910D, with hopes it will become be more powerful than Nvidia’s H100. Huawei is already poised to ship more than 800,000 of its Ascend 910B and 910C chips to customers including state-owned telecommunications carriers and private AI developers, such as TikTok’s parent ByteDance, according to the WSJ. Nvidia’s H100 was released in 2022 and has since been superseded by later generations of its Hopper chips and its new Blackwell AI semiconductors. Nvidia is prohibited from selling its most powerful AI chips to Chinese companies.
US equity markets extended their strong rebound into a fourth consecutive session on Friday (25 April), lifting the S&P and Nasdaq to their highest settlements since 2 April (the day the Trump administration unveiled sweeping tariffs on America's trading partners) – Dow edged +20-points or +0.05% higher after climbing +487-points or +1.23% last Thursday (24 April). Nvidia Corp (up +4.30%) was the leading performer in the 30-stock index. Merck & Co Inc rose +3.63% a day after the pharmaceutical major delivered better-than-expected first-quarter financial result, with EPS of US$2.22 (versus consensus US$2.13) and revenue of US$15.5B (versus consensus US$15.4B) topping consensus analysts forecasts. The pharmaceutical major slightly lowered its earnings forecast for 2025 to account for a US$200M upfront payment to Hengrui Pharma in a licensing deal, now projecting non-GAAP EPS of between US$8.82 and US$8.97 (down from a range of between US$8.88 and US$9.03 previously).
US equity markets advanced, consolidating the strong gains recorded in the previous session and lifting the S&P 500 and Nasdaq to their highest settlements since 15 April as investors continued to cheer a cooling President’s rhetoric around tariffs and his criticism of Federal Reserve Chair Jerome Powell- Dow rose +420-points or +1.07% to 39,606.57, paring an earlier rally of as much as 1,189-points that lifted the index to 40,376.11. Amazon.com Inc (up +4.28%) and Nvidia Corp (+3.86%) both gained ~4%.
US equity markets rebounded strongly, more than recouping the previous session’s sharp declines as investors digested a busy corporate earnings calendar and comments from Treasury Secretary Scott Bessent - Dow rose +1,017-points or +2.66%, with all 30 index components advancing. Nvidia Corp +2.04% after Amazon.com Inc (+3.50%) pushed back against reports that it was pulling back on building artificial-intelligence (AI) infrastructure. “This is routine capacity management, and there haven’t been any recent fundamental changes in our expansion plans,” wrote Kevin Miller, vice president of global data centres (DC) at Amazon Web Services (AWS), in a post on LinkedIn late Monday (21 April) in response to reports that the Cloud business delayed several new DC leases. Boeing Co rose +2.00% after the aerospace company agreed to sell portions of its Digital Aviation Solutions business to private-equity firm Thoma Bravo in a deal worth US$10.55B.
US equity markets resumed trading following the Good Friday holiday with steep losses, with the so-called ‘Magnificent Seven’ cohort of large capitalisation technology stocks under particular pressure - Dow shed -972-points or -2.48%, extending its decline into a fourth consecutive session. UnitedHealth Group Inc (down -6.34%) was the worst performing Dow component overnight, extending the health insurer’s two-day decline to -27.3% - the stock’s worst two-day performance since 7 August, 1998 – after releasing its first quarter result last Thursday (17 April) and lowering its annual profit forecast on expectations of high medical costs for the rest of the year. Nvidia Corp lost -4.51% after Reuters reported that Huawei Technologies planned to begin mass shipments of an advanced artificial intelligence (AI) chip to customers in China as early as next month. Meanwhile, Chief Executive Officer (CEO) Jensen Huang met Japanese Prime Minister Shigeru Ishiba on Monday (21 April), following a meeting with Chinese leaders in Beijing last Thursday (17 April). Nike Inc (up +0.65%) was the only Dow component to advance overnight.
US equity markets tumbled as investors digested news of U.S. restrictions on chip exports to China and Federal Reserve Chair Jerome Powell's latest assessment of the economy - Dow dropped -700 or -1.73% Nvidia Corp -6.87% after disclosing in a filing with the Securities and Exchange Commission (SEC) after the close of the previous session that sales of its H20 chips to China would require licenses from the Department of Commerce “for the indefinite future”. The chipmaker said it would record charges in its fiscal first quarter of up to US$5.5B for inventory and cancelled sales.
US equity markets retreated in muted trading - Dow fell -156-points or -0.38% Boeing Co fell -2.36% and was the worst performer in the 30-stock index after a Bloomberg report said China ordered its airlines not to take any further deliveries of the company’s jets, marking the latest escalation in the trade war between Washington and Beijing.
US equity markets advanced after another choppy session following another flurry of tariff-related headlines, but settled well off their session highs - Dow rose +312-points or +0.78% to 40,524.79. Apple Inc rose +2.21%, paring an earlier gain of as much as +7.5% after the US administration that some consumer electronics and computer hardware would be exempt from the reciprocal 125% trade tariffs placed on China. Nvidia Corp (down -0.20%) said it would for the first time make artificial-intelligence (AI) supercomputers entirely in the United States. Nvidia said it expects to produce up to US$500B in AI infrastructure in the U.S. with its partners within the next four years.
US equity markets advanced as investors digested another busy slate of information including the latest developments in a trade war with China, earnings reports from major banks and economic data - Dow rose +619-points or +1.56%, with the 30-stock index trading in an 1,150 point range after swinging more than >2,000 points between its high and low for the day in each of the preceding four (4) trading sessions. Apple Inc (up +4.06%) was the leading Dow component on Friday (11 April) amid growing optimism the iPhone maker could win an exemption from the Trump administration’s tariffs. Nvidia Corp, which outsources manufacturing to Taiwan Semiconductor Manufacturing Company (TSMC) Ltd (up +3.94% on the New York Stock Exchange), gained +3.12% after the China Semiconductor Industry Association said chips made by U.S. firms with outsourced manufacturing operations would not be subject to tariffs on U.S. goods. Meta Platforms Inc (up +7.7%) and the Federal Trade Commission face off tonight AEST over antitrust allegations which could force the social media giant to unwind its acquisition of messaging platform WhatsApp and photo-sharing app Instagram. Chief Executive Officer (CEO) Mark Zuckerberg is expected to appear in the witness stand.
US equity markets retreated, handing back a portion of the huge gains logged in the previous session’s near record breaking rebound. Losses accelerated after the White House confirmed that the cumulative tariff rate on China would actually total 145% (consisting of the new 125% duty on goods, on top of the 20% rate levied in response to the fentanyl crisis), overshadowing cooler-than-expected inflation figures.
US equity markets soared, arresting a four-session slide after President Trump’s decision to delay some of the tariffs announced last week for 90 days, effective immediately, unleashed a flood of buying - Dow rallied +2,963-points or +7.87% biggest percentage advance since March 2020. Nvidia Corp soared +18.72% to lead all 30 index components higher, while Apple Inc (+15.33%, logging its best daily performance since January 1998 and adding more than >US$400B in market capitalisation) and Boeing Co (+15.37%) both jumped over >15%.
A late session slide erased earlier strong gains on US equity markets to cap another volatile session after Beijing vowed to "fight to the end" in response to President Trump's threat of imposing new 50% tariffs unless China rapidly removed its retaliatory measures - Dow settled -320-points or -0.84% lower, having been up as much as +1,461-points or +3.85% at its session peak – marking the biggest erased percentage gain since April 2020. Apple Inc (down -4.98%) extended its decline into a fourth straight session, with White House press secretary Karoline Leavitt saying that President Trump “absolutely” wants iPhones to be manufactured in the U.S. (the company currently assembles a large majority of its products in China). The Times of India reported that Apple transported five planes full of iPhones and other products from India to the US in just three-days during the final week of March to avoid a 10% reciprocal tariff that took effect on 5 April. Nike Inc (-4.21%) also fell over >4%. Nvidia Corp (fell -1.37%)
Michael Knox, Morgans Chief Economist discusses why Trumps moves make sense and how Albanese has been poorly briefed on the matter. Listen in to hear his insights
US equity markets mixed after another volatile as the sweeping Trump administration tariff measures continued to reverberate, with the president threatening even higher rates against China and the White House denying reports that they were considering a 90-day tariff pause on all countries except China - Dow fell -349-points or -0.91%, spiking as much as +2.3% during a brief morning session surge. The Dow swung more than >2,500 points between its intra-day low and high, its largest intra-day points swing on record and all within the opening hour of trading. Apple Inc fell -3.67% after declining -7.3% last Friday (4 April) and was the worst performing Dow component overnight. The iPhone maker, which assembles a large majority of its products in China, slumped -13.6% last week to see US$443.5B wiped off its market capitalisation, the largest weekly market cap decline on record, according to Dow Jones Market Data. Home Depot Inc (down -3.5%) and Travelers Companies Inc (-3.48%) both fell ~3.5%. Nvidia Corp (up +3.53%) was the leading performer in the 30-stock index.
Friday (4 April) marked another brutal session for US equity markets as China responded in kind to the Trump administration’s tariff measures and further fanned recession fears - Dow dropped -2,231-points or -5.50% , with Boeing Co (down -9.49%) and 3M Co (-9.18%) both fell over >9% to lead all 30-index components lower with the exception of Nike Inc (up +3%). The latter was buoyed by a friendly social-media post from President Trump about Vietnam, a country Nike relies on heavily to manufacture their products. China’s finance ministry announced its own 34% tariff on all US imports, effective 10 April. The levy matches the 34% import duty the White House said it would impose on Chinese products slated to go into effect no later than 9 April. Beijing said Trump's tariffs were "inconsistent with international trade rules, seriously undermines China's legitimate rights and interests, and is a typical unilateral bullying practice." In addition to the tariffs, China imposed export bans on select rare earth materials and added two US drone manufacturers to its "unreliable entities" list, effectively restricting their access to Chinese components. It also expanded its “unreliable entity list” by 11 American companies and launched an anti-dumping investigation into imports of medical CT tubes from the U.S. and India.
US markets tumbled overnight as fears around a potential recession pick up. The US markets appearing to be the biggest losers after the tariff announcement.
The US stock market turned up late overnight, as investors await Trumps so called “Liberation Day” tariffs. However, since the announcement the markets have dropped in aftermarket trading, with the Dow futures down -1.8%, S&P500 futures down > -3%, and the Nasdaq futures down > -4%. So far Trump has promised a minimum 10% tariff on all countries, with larger tariffs on certain countries and industries. So far the major tariffs are 34% on China, 20% on the EU, 26% on India, and 10% on Australia and the UK.
The US stock was mixed overnight. The Dow closed mostly flat, down -0.03% to 41,989 points. Nike was the top performer, up 2.02%. While pharma companies were all sold off, with the three worst performing stocks including Johnson & Johnson down -7.59%, Merck down -2.94%, and Amgen down -1.49%. Johnson & Johnson has just had a federal judge reject a $10b class action settlement over cancer claims relating to its baby powder.
The US stock market fell for the third day in a row on Friday – the 2nd worst day for US equities in 2025 due to tariffs expected this week and hotter than anticipated inflation numbers.
The US stock market fell for the second day in a row on Thursday after trading sideways for most of the session. Traders remained cautious ahead of Friday’s release of the Fed’s preferred inflation gauge. Dow fell -155-points to trade below 42,300 points. Shares of Goldman Sachs (-2.61%), 3M co (-2.78%) and NIVIDIA (-2.05%) each contributing to the decline, falling over >2.00%.
In this insightful interview, Michael Knox, Chief Economist at Morgans, discusses Australia's growing debt and current account deficit, as outlined in the 2025 federal budget. With projections showing a significant increase in debt over the next few years, Michael explores the implications for future generations and whether the government's economic strategies are sustainable. He also reflects on historical warnings from former Prime Minister Paul Keating about the risk of becoming a "banana republic." Tune in for a deep dive into Australia's financial outlook and the challenges ahead.
All three major U.S. stock indices snapped a three-day winning streak as an imminent tariff announcement from President Trump derailed the recovery from a month-long selloff - Dow fell -132.71-points or 0.31% lower. Nvidia Corp fell -5.74% amid concerns about possible new restrictions on the chipmaker's sales in China. Regulators in China have been discouraging the country’s large technology companies from purchasing Nvidia’s H20 chip - specifically designed to satisfy U.S. sanctions on exports - as it breaches energy-efficiency rules, the Financial Times reported, citing people with knowledge of the matter. Boeing Co fell -2.1% after a federal judge ordered the airplane maker to go to trial in June in a criminal case related to two 737 MAX crashes in 2018 and 2019. The Wall Street Journal reported Monday (24 March) that Boeing sought to withdraw an earlier agreement to plead guilty in the case that blamed it for deceiving regulators before the crashes. The broader S&P500 shed -1.1% and the biggest decline in almost 2 weeks. Consumer staples rose +1.42%, leading five of the eleven primary sectors higher. Information technology was the worst hit -down -2.46% and sat at the foot of the primary sector leaderboard followed by Communication services- down 2.04%
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•US equity markets settled with modest gains, boosted by a late rally among large capitalisation technology names and shrugging off some weaker-than-expected consumer confidence data Dow inched +4-points higher. ‘Magnificent Seven’ members Amazon.com Inc (up +1.21%) and Apple Inc (+1.37%), investment banks Goldman Sachs Group Inc (+1.01%) and JPMorgan Chase & Co (+1.24%) and Walt Disney Co (+1.43%) all climbed over >1%. Merck & Co fell -4.81% after the company announced a US$2B commitment for Oral Lipid-Lowering Drug from Chinese Biotech Jiangsu Hengrui.
US equity markets kicked off the week with sharp gains, buoyed by news reports the Trump administration's plans for reciprocal tariffs will be more targeted than initially feared. Investors are also preparing for a busy week of data, including the Federal Reserve's preferred inflation gauge on Friday. The VIX fell to its lowest in more than a month.
US equity markets settled with modest gains on Friday (21 March) following a late-session rally, erasing earlier losses after comments from U.S. President Trump provided hope that previously announced tariffs expected to begin in early April may not be as burdensome as feared - Dow edged +32-points or +0.08% higher, with Boeing Co rising +3.06% after the Trump administration awarded the plane maker a contract to build the U.S. Air Force's most sophisticated fighter jet (to be called the F-47), beating out rival Lockheed Martin Corp (down -5.79%). While financial details were not disclosed, The Wall Street Journal estimated that research, development, and acquisition costs could exceed >US$50B. Nike Inc fell -5.42% and was the worst performing Dow component after posting its fiscal third quarter result after the close of the previous session and projected a sharper decline in fourth-quarter revenue than analysts had anticipated.
US equity market ticked lower on Thursday as uncertainty around the U.S. economy continued to weigh on equities, thwarting the market’s attempts at recovery from a monthlong rout.The Dow Jones closed around the flatline -11.31 points, or 0.03%, closing at 41,953.32. The S&P 500 lost -12.40 points or 0.22%, to close at 5,662.89. The Nasdaq Composite dipped -59.16 points or 0.33% to 17,691.63.The Small-cap Russell 2000 continued the trend losing -0.65%.
US equity markets rallied on Wednesday, with the S&P 500 clawing back more of the rout since late February that took the benchmark briefly into correction territory.
US equity markets rose on Monday, building on their comeback from a four-week rout on Wall Street after mixed economic data and ahead of talks between U.S. President Donald Trump and Russian President Vladimir Putin aimed at ending the Ukraine war.
US equity markets rebounded strongly on Friday (14 March), with the S&P 500 and Nasdaq logging their best single session advance of 2025 to date - Dow rose +675-points or +1.66% Nvidia Corp (up +5.27%) was the leading performer in the 30-stock index ahead of the chipmaker’s off its weeklong GPU Technology Conference in San Jose, California kicking off tonight AEST, with a keynote address from Chief Executive Officer (CEO) Jensen Huang on Tuesday night AEST (18 March). American Express Co (+3.59%), investment banks Goldman Sach Group Inc (+3.17%) and JPMorgan Chase & Co (+3.22%) all climbed over >3%.
US equity markets weaker on Wednesday, big tech continuing to hurt indices, with select Consumer names also being sold off. US PPI came in a touch below expectations, which followed a CPI print below expectations the day prior, but tariffs (and the threat of tariffs) were louder and seemed the focus of market moves.The Dow fell 537 points or -1.30%.Apple continued its negative trajectory, shares down another -3.36%, extending a string of recent losses on concerns over delayed Siri features and the impact of tariffs. The stock fell for the third-straight session after Apple on Friday reportedly pushed back the launch of certain Apple Intelligence features for Siri until 2026. The stock is -20% off its highs set in late December.
US equity markets mixed on Wednesday, select beaten up tech names in the green, while large Consumer Staples continued to pull back, as US annual inflation rate fell to 2.8% in February, below forecasts of 2.9%. The core rate, which excludes volatile food and energy prices, was 3.1% versus expectations of 3.2%.
US equity markets were again weaker on Tuesday, tariffs (both actual and threatened) making investors skittish. The Dow fell 478 points or -1.14%.
US equity markets were again weaker on Monday, investors worried that tariff policy uncertainty would tip the economy into a recession, something President Donald Trump did not rule out over the weekend in an interview. 'Risk-off' sentiment can definitely be seen in US market trading. The Dow fell 890 points or -2.08%, the 30-stock index dragged down by Nvidia, Goldman Sachs and Apple, down -5.07%, 5%, and 4.85% respectively.
US equity markets advanced, recovering from steep losses earlier in the session following a lacklustre jobs report and after Federal Reserve Chair Jerome Powell said the economy remains in good shape. The Dow was up 222 points or 0.52%, the 30-stock index led by IBM (up 5.1%), and Verizon Communications (up 4.14%) leading the charge.
U.S. equity markets were down overnight as the market digests Trumps whipsawing tariff decisions. The Dow was down -0.92% to 42,612 points. Nvidia was the main drag, falling -5.52% after CFO Colette Kress stated it would take some time for them to meet demand for their Blackwell chips.
US equity markets advanced following two session of heavy losses as investors eyed a near term reprieve for the automotive sector from President Trump’ tariff measures that may be a portent of further concessions - Dow rose +486-points or +1.14% Microsoft Corp (up +3.23%) and Caterpillar Inc (+3.59%) both rallied over >3% to be the leading performers in the 30-stock index.
US equity markets fell sharply, unwinding opening gains as President Trump said that tariffs against Mexico and Canada will go ahead as planned tonight AEST (and also signed an action to impose an additional 10% duty on China, according to an administration official), while investors also digested signs of a fresh spike in inflation pressures - Dow dropped -650-points or -1.48%. Nvidia Corp fell 8.81% to US$114.22 to be the worst performer in the 30-stock index overnight, with the stock falling into official correction territory after settling more than >20% below its record all-time closing high of US$149.43 set on 6 January. There were reports that Nvidia and Broadcom Inc (-6.05%) are testing Intel Corp’s (-4.17%) chip manufacturing process. Separately, The Wall Street Journal reported on Sunday (2 March) that Chinese buyers were finding ways to buy Nvidia’s chips despite President Trump’s attempts to limit sales to Beijing. Elsewhere, Amazon.com Inc (down -3.42%), Caterpillar Inc (-3.46%) and Chevron Corp (-3.49%) all fell over >3%.
Benchmark US equity indices settled with solid gains on Friday (28 February) on heavy volume to close out a dreary February on a brighter note, with investors digesting the latest inflation figures that pushed US Treasury yields to fresh multi-month lows - Dow rose +601-points or +1.39%, with 26 of 30 index components advancing.
Wall Street trading got off to a negative start on Thursday following earnings from AI-darling Nvidia overnight and an update from Donald Trump regarding his proposed tariffs on a number of America's largest trading partners.
US equity markets were mixed again on Wednesday trading with The DOW falling 188 Points or -0.43% The broader S&P500 was virtually unchanged settling one point higher at 5,956 points.
US equity markets were mixed again on Tuesdays trading with The DOW up 159 Points or +0.37%. The broader S&P500 was negative losing 27 Points or 0.45% to settle at 5,955 points. And again, the Nasdaq was the worst performing index falling 260 points or -1.35% to 19,026 points. The Nasdaq’s loss today pushing it to a 4-day loss of around 5% the most since Sept 2024
The S&P 500 and Nasdaq extended last week’s sharp declines, led by fresh falls for large capitalisation technology names - Dow edged +33-points or +0.55%, steadying after posting its worst weekly performance since the stretch ended 25 October last year last week (down -2.51%) and wiping out all its post presidential inauguration gains.
US equity markets retreated heavily on Friday The DOW down 750 Points or -1.7% amid reports of increased volatility and a potential correction sited by Goldman Sacs as being related to some 2.7 Trillion in derivatives that are set to expire. Only the consumer staples sector was positive during the session up 1% whilst Consumer discretionary was the worst sector down 2.77%. The Energy, IT and Industrials sectors all falling 2% or more.
Stocks declined on Thursday after two consecutive record highs for the S&P 500, as investors sold off popular stocks following Walmart’s cautious forecast, raising concerns about the broader economic outlook. It was red across the board with all four major US indices closing down.
US markets closed up slightly overnight, as investors looked beyond continued tariff threats by the Trump administration. The S&P 500 closed at yet another record high. Notably, the last two ‘record all time highs’ have been without the help of the Magnificent 7.
US Equity markets: The S%P 500 set a fresh record high on Tuesday as stocks rallied into the close. Energy was the best performing sector, rising 1.9% whilst Consumer Discretionary pulled back 1%. At the close:
US Equity and Bond markets: Closed for Presidents Day. Outgoing Federal Reserve Bank of Philadelphia President Patrick Harker sounded an upbeat note on the state of the U.S. economy on Monday, and said he saw no reason to change interest rate policy right now as the central bank continued to work to lower inflation levels. This preceded comments by Fed Reserve Governor Bowman who noted that while monetary policy “is now in a good place,” she wants to see data reflect more progress on inflation before cutting interest rates further.
Global financial markets were mixed on Friday, influenced by ongoing geopolitical tensions, trade policy developments, and economic data releases.The S&P 500 index was unchanged on the day, closing at 6114pts. AirBnB rallied 14.5%, having released strong Q4 earnings results after the closing bell the previous day. The company noted that they are “continuing to build on 2024 momentum, executing a multi-year strategy to perfect the core service, accelerate growth in global markets, and launch and scale new offerings.”
U.S. stocks were gathering more steam Thursday after President Trump's tariff update left open key questions about when they might be applied, and which countries may be impacted. Dow rose 342.87 points or +0.77%, with NVIDIA Corp (up +2.98%) and Cisco Systems Inc (up +2.17%) both gaining over +2%. The broader S&P 500 rose +0.99%. Materials (up +1.75%) lead all 11 of the primary sectors higher, with Information Technology (up +1.39%) and Consumer Discretionary (up +1.39%) not far behind.
•All (3) three major stock indexes were off their lowest levels of Wednesday's session after President Trump suggested that Russian President Vladimir Putin was receptive to talks about its war with Ukraine.•The Dow Jones Index was down -225.09 points or -0.50%. The S&P 500 Index was down -16.53 points, or -0.27%. The NASDAQ Index was up +6.10 points or +0.031%.
Wall Street's main indexes were mixed on Tuesday as gains in Coca-Cola Co (NYSE: KO) and Apple Inc (NASDAQ: AAPL) offset losses in Tesla Inc (NASDAQ: TSLA), while investors analysed Federal Reserve Chair Jerome Powell's latest comments. The S&P 500 was down -0.01% at 6,066.07 points. The Nasdaq declined -0.21% to 19,672.22 points, while the Dow Jones Industrial Average was up +0.08% at 44,506.82 points.
Major US indexes rose overnight as investors brushed off Trump’s tariffs on steel and aluminium. Dow Jones Industrial Average gained +142 points, or 0.32%, S&P 500 rose +41 points or 0.69% and the NASDAQ composite accelerated +211 points or 1.08%.
All three (3) U.S. stock indexes fell on Friday after President Donald Trump's reciprocal tariff announcement followed weak jobs and consumer sentiment data.
U.S. equity markets were mixed overnight as investors wait for January’s jobs data.The Dow 30 was down -0.29% to 44,744 points. Honeywell the worst performer down -5.64% after reporting weak earnings outlook that was not enough to offset plans to separate into 3 separate companies.
U.S. equity markets were up overnight in choppy trading. No fresh tariffs to speak of for a change as Trump shifts his focus to the Gaza strip. The Dow 30 was up 0.71% to 44,873 points.
U.S. equity markets were up as the investors heaved a sigh of relief after Trump agreed to hit pause on his planned tariffs with Canada and Mexico. However he then announced tariffs on China due to kick in on Tuesday. China has responded by announcing its own tariffs on U.S coal, LNG and crude, as well as a probe into Google. The Dow 30 was up 0.30% to 44,556 points. Merck fell -9.05% despite beating quarterly forecasts. The stock fell after 2025 guidance was weaker than expected due to weaker than expected demand for their vaccine Gardasil.
U.S. equity markets were down heavily in early trading, before paring losses as Trump promised a 1-month delay to any tariffs to be placed on Mexico.
U.S. equity markets finished lower on Friday after President Trump said he would place 25% tariffs on imports from Canada and Mexico, and a 10% tariff on goods from China, now due to go into effect on Tuesday.
U.S. equity markets finish higher overnight, the Dow and S&P 500 traded near session highs in a choppy trading session. Investors remained focused on earnings despite lower-than-expected GDP growth data.
US equity markets weaker as investors digested the latest monetary policy pronouncements from the Federal Reserve and awaited some major technology earnings after the closing bell - Dow fell -137-points or -0.31% Nvidia Corp fell -4.10% to be the worst performer in the 30-stock index, extending its recent volatile ride as the chipmaker warned that it may not be able to meet demand for its latest graphics cards set to be released tonight AEST. Nike Inc gained +2.94% on solid volume to be the leading Dow component overnight.
US equity markets rose overnight to recover from its previous session falls. U.S. stocks rose on Tuesday, with artificial intelligence-linked and other technology shares bouncing back from sharp losses the previous day as investors snapped up bargains.
US equity markets declined sharply overnight with a large sell off in the Information Technology sector to kick of the week’s trading. Investors await a slew of key earnings reports this week along with the release of a competitive AI model from a Chinese start up Deep Seek- a competitor to ChatGPT.
US equity markets rallied to record highs on Thursday after President Donald Trump called for lower interest rates and cheaper oil prices.
US equity markets Stocks climbed on Wednesday, with the S&P 500 hitting all-time high again, as technology shares such as Oracle and Nvidia rallied on artificial intelligence optimism
US equity markets the Dow Jones advanced on Tuesday as Wall Street viewed President Donald Trump’s comments and first-day actions around international trade as softer than initially believed.
US equity markets were closed overnight for the Martin Luther King Day holiday, as Donald Trump was sworn in a second time as U.S. president
US equity markets climbed on Friday, as the three major averages posted their first weekly gain of the new year.
Major US indexes were little changed at midday on Thursday but closed slightly down, as investors reacted to quarterly reports, while major tech companies gave back some of the previous session’s gains. Dow slipped -68 points or -0.16%, the 30-stock index dragged down by United Health (down -6.04%) and Apple (down -4.04%).
•US equity markets seesawed between gains and losses on Tuesday as investors digested a surprisingly soft wholesale inflation report and awaited more inflation data on Wednesday. Every number in the PPI report, both headline and core gauge for the monthly and yearly time frame came in softer than expected. This weak appetiser should ease expectations a touch for the main course – the upcoming CPI data for December – released tonight. The Dow up 221 points or 0.52%, the 30-stock index again being led by for a second straight session by non-tech shares, Caterpillar (up 2.5%), and 3M (up 1.94%) leading the charge.
US equity markets mixed on Monday, The Dow Jones climbing higher, outperforming, while the Nasdaq Composite slipped as traders continued to sell off major tech stocks that have powered the recent bull market. The 30-stock Dow rose 358 points, or 0.86%, as investors rotated into non-tech shares like Caterpillar, JP Morgan, and United Health (up 3.28%, 1.81%, and 3.93% respectively). Meanwhile, the tech-heavy Nasdaq dropped -0.38%, and the S&P500 inched up 0.16%. All three benchmarks are down for the last two weeks, with tech shares causing most of the damage.
US equity markets down on Friday, with a surge in bond yields after a much hotter-than-expected December jobs report putting prospects for further rate cuts by the Federal Reserve in doubt, The 10-year yield finished up 9.2 basis points to 4.772%, its highest since Nov. 1, 2023. Conversely, the Dow bled -697 points or -1.63%.
US equity markets were CLOSED overnight in observance of a National Day of Mourning for former President Jimmy Carter, who passed away aged 100 late last year.
US equity markets mixed ahead of the release of the latest non-farm payrolls report on Friday night AEST (10 December) - Dow rose +107-points or +0.25% CNN reported that President-elect Donald Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries, citing unnamed sources familiar with the matter.
US equity markets retreated and bond yields climbed following the release of economic data that raised fresh inflation concerns - Dow fell -178-points or -0.42%. Nvidia Corp dropped -6.22% after hitting an all-time high (US$153.13) in early trading after Chief Executive Officer (CEO) Jensen Huang delivered a keynote speech at the annual Consumer Electronics Show (CES) in Las Vegas and provided several noteworthy technology updates. Amazon.com Inc fell -2.42%
US equity markets advanced albeit the major indices settled well off their session highs, with chipmakers trading particularly strongly - Dow slipped -26-points or -0.06% Nvidia Corp rallied +3.43% to be the leading performer in the 30-stock index for a second straight session ahead of Chief Executive Officer (CEO) Jensen Huang delivering a keynote speech at the annual Consumer Electronics Show (CES) in Las Vegas. Chip-related stocks more broadly traded strongly after Taiwanese electronics giant Foxconn Technology Co Ltd - whose customers include Apple Inc (+0.67%) and Nvidia Corp – reported record fourth-quarter revenue (up +15% year-on-year to 2.132 trillion New Taiwan dollars or ~US$65.09B). Amazon.com Inc (+1.53%) and Microsoft Corp (+1.06%) both gained over >1%. Procter & Gamble Co (down -2.43%) was the worst performing Dow component overnight.
US equity markets advanced amid light trading volume to conclude a holiday-shortened week, with the S&P 500 and Nasdaq snaping five-session losing streaks - Dow rose +340-points or +0.80%, ending a run of four consecutive session declines. Nvidia Corp rallied +4.45% to be the leading performer in the 30-stock index ahead of Chief Executive Officer (CEO) Jensen Huang delivering a keynote speech at the annual Consumer Electronics Show (CES) in Las Vegas tonight AEST which is expected to highlight how Nvidia's semiconductors are powering some of the most advanced products being shown off at the conference. Microsoft Corp (up +1.14%) announced that it would spend US$80B on artificial intelligence (AI)-enabled data centres in fiscal 2025. Apple Inc (down -0.20%) retreated for a fifth straight session, on the cusp of becoming the first company ever to surpass US$4 trillion in market capitalization a week earlier. Apple has kicked off the new year by offering iPhone discounts from 4 January to 7 January in China, according to the company’s website in the country.
US equity markets rebounded on Friday (20 December) following tame inflation figures, recouping some of the steep losses recorded earlier in the week after the Federal Reserve signalled a potentially smaller reduction in interest rates in 2025 than Fed officials previously projected - Dow rallied +498-points or +1.18%, with Nvidia Corp (up +3.08%) the leading performer in the 30-stock index.
US equity markets little changed a day after the Federal Reserve that it will deliver fewer rate cuts in 2025 than policymakers had previously anticipated, and with investors eyeing key inflation figures and potential volatility tied to large options expiries tonight AEST - Dow inched +15 or +0.04% higher, snapping a ten session losing streak – the 30-stock indice’s longest losing streak since 1974.
US equity markets fell sharply after the Federal Reserve cut rates as expected but pumped the brakes on future rate cuts - Dow dropped -1,123-points or -2.58%, logging its tenth consecutive session decline. Amazon.com Inc (down -4.6%), American Express Co (-4.5%) and Goldman Sachs Group Inc (-4.25%) all fell over >4%, with all 30 index components settling in the red with the exception of Unitedhealth Group Inc (+2.92%). Nvidia Corp fell -1.14%, unwinding an earlier rally of ~4.8%% and falling deeper into official correction territory. The stock was buoyed earlier in the session by a report that gave an optimistic outlook about the chipmaker's production, especially of its Blackwell NVL / GB200 system.
US equity markets retreated ahead of the Federal Reserve’s latest interest rate decision and updated economic projections tomorrow morning AEST (19 December) - Dow fell -268-points or -0.61%, the 30-stock index’s ninth consecutive session decline and longest stretch of daily losses since 1978. Unitedhealth Group Inc (down -2.6%) was the worst performing Dow component for a second session running, while Goldman Sachs Group Inc (-1.99%) and Salesforce Inc (-1.75%) both fell over >1.5%. Nvidia Corp fell -1.22% to US$130.39 to push further into official correction territory (down -12.42% from their closing high of US$148.88 last month).
US equity mostly firmer top open a week punctuated by major global central bank meetings and inflation data - Dow fell -111-points or -0.25%, recording an eight straight session decline to book its longest stretch of daily losses since 2018. Unitedhealth Group Inc (down -4.22%), Verizon Communication Inc (-3.31%) and Chevron Corp (-2.93%) logged the sharpest falls in the 30-stock index overnight. Nvidia Corp lost -1.92% to US$131.46 and entered official correction territory (down over >10% from its 7 November all-time high of US$148.88). Honeywell International Inc (up +3.68%) was the leading Dow component overnight as the conglomerate issued an update on its portfolio review begun earlier this year, noting that it is considering spinning off its aerospace unit. Amazon.com Inc (+2.4%) and Boeing Co (+2.07%) both climbed over >25.
US equity markets settled little changed on Friday (13 December) as investors eye the release of inflation figures and a number of key global central bank meeting this week - Dow eased -86-points or -0.20%, logging its seventh straight session decline to record its longest stretch of daily losses since February 2020. Nvidia Corp fell -2.25% the be the worst performer in the 30-stock index on Friday (13 December).
30-stock index, while Home Depot Inc (-1.65%), Nike Inc (-1.13%), Sherwin-Williams Co (-1.37%) and Nvidia Corp (-1.41%) all fell over >1%.The broader S&P500 lost -0.54%. Consumer Discretionary (down -0.84%) and Health Care (-0.83%) both fell over >0.8% to lead ten of the elven primary sectors lower. Consumer Staples (up +0.18%) Eight stocks in the S&P 500 hit fresh 52-week highs Adobe Inc -13.69% after the software giant provided disappointing first quarter and full-year revenue guidance as part of its fourth quarter results release after the close of the previous session. Warner Bros Discovery jumped +15.43% after the group behind HBO and CNN said it would split its television networks and streaming and studios businesses into two “distinct operating divisions”, in a move that sets a path towards the company’s eventual break-up.
US equity markets advanced after the latest inflation data cemented expectations for a quarter-point interest-rate cut by the Federal Reserve next week - Dow eased -99-points or -0.22% , with Johnson & Johnson (down -1.74%) and McDonald’s Corp (-1.53%) down over >1.5%. Apple Inc lost -0.52% after scaling a record intra-day high (US$250.80) earlier in the session. Nvidia Corp gained +3.14%, while Amazon.com Inc (up +2.32%) and Nike Inc (+2.75%) climbed over >2%.
US equity markets declined ahead of the latest inflation figures tonight AEST - Dow retreated for a fourth straight session, down -154-points or -0.35%. Nvidia Corp fell -2.69%, extending its two-day slide to over >5% after China’s State Administration for Market Regulation said it was investigating the company over possible violations of the country’s antimonopoly law, opening an investigation into the chipmaker in relation to the acquisition of Mellanox and some agreements made during the acquisition. Nvidia’s revenue in China totalled US$13.5B in the past four quarters, accounting for ~12% of its global total, according to The Wall Street Journal (WSJ). Caterpillar Inc (-2.72%) and Merck & Co Inc (-2.69%) both fell over >2.5%. Boeing Co rallied +4.50% after the aerospace giant said it had restarted production of its 737 MAX jets. Production was paused for more than 12 weeks because of a seven-week labour strike that began in mid-September and settled in early November.
US equity markets retreated, with the S&P 500 and Nasdaq pulling back from record closing highs set last Friday (6 December) - Dow fell -241-points or -0.54%, with International Business Machines (IBM) Corp (down 3.38%) and Travelers Companies (-3.53%) both down over >3%. Nvidia Corp fell -2.55% after China’s State Administration for Market Regulation said it was investigating the company over possible violations of the country’s antimonopoly law, opening an investigation into the chipmaker in relation to the acquisition of Mellanox and some agreements made during the acquisition.
The S&P500 and Nasdaq climbed to fresh record highs after closely watched employment data came in largely as expected, reinforcing investor confidence in the strength of the economy and expectations that the Federal Reserve will cut interest rates again later this month - Dow eased -123-points or -0.28% UnitedHealth Group Inc fell -5.07% to be the worst performer in the 30-stock index on Friday (6 December) as the murder of the CEO of the US’s largest health insurer, Brian Thompson, continued to reverberate. Nvidia Corp -1.81% Amazon.com Inc rallied +2.94% and hit a fresh record high (US$227.15).
In our fourth episode, Chris speaks with Murray Leahy, the Managing Director and Founder of MLG Oz. With over 20 years of experience in the mining industry, Murray shares the journey behind MLG Oz’s growth, the challenges of leading in the mining sector, and his vision for the future of integrated mining services. As the Majority Shareholder and 2019 Business Person of the Year, Murray offers valuable insights into the industry and the key factors driving MLG Oz's success.
In our fifth episode, Chris speaks with Mike Lampron, the Chief Executive Officer of Mach7 Technologies. With over 20 years of experience in business and operational management within the Healthcare IT sector, Mike discusses his journey from private start-ups to leading established companies like IBM and GE. Previously the CEO of a National Teleradiology Company, Mike shares his expertise in driving results through innovative execution, astute analysis, and cross-functional teamwork. He also outlines his vision for customer success and excellence at Mach7 Technologies.
Benchmark US equity indices retreated from record highs ahead of the release of key employment figures tonight AEST - Dow fell -248-points or -0.55%. Unitedhealth Group Inc fell 5.21% after day after the CEO of the US’s largest health insurer, Brian Thompson, was murdered on the streets on New York in a seemingly targeted attack.
In our third episode of Executive Focus, Chris sits down with Dr Andrew Blattman, CEO and Managing Director of IPH. Andrew discusses his leadership journey since taking the helm at IPH in November 2017, including the strategic initiatives that have shaped the company’s growth in the intellectual property sector. With a background in agriculture and a PhD, Andrew reflects on how his diverse academic and professional experiences have influenced his approach to managing a global organisation. He shares insights on the evolving challenges in intellectual property and the future of innovation in the industry.
Technology stocks led a fresh rally on US equity markets, lifting all three (3) benchmark indices to fresh record highs - Dow rose +309-points or +0.69% to 45,014, the first close above the >45,000 level. Salesforce Inc jumped +10.99% following the release of the enterprise software company’s third quarter result after the close of the previous session that saw revenue top consensus expectations and the full year revenue guidance range lifted. Nvidia Corp rose +3.48% and Amazon.com Inc +2.21%.
The S&P 500 and Nasdaq logged fresh intra-day and record closing highs - Dow eased -76-points or -0.17%, with Procter & Gamble Co (down -2.38%) the worst performer in the 30-stock index. Honeywell International Inc fell -1.3% after the industrial conglomerate cut its full-year outlook after signing a strategic agreement with Bombardier to supply advanced avionics, propulsion, and satellite communications technologies for Bombardier’s aircraft. Nvidia Corp rose +1.18%, with the chipmaker’s Chief Financial Officer (CFO) Colette Kress addressing the UBS Global Technology and AI Conference and saying the company would consider some mergers and acquisition (M&A) activity.
US equity markets advanced to open the final month of the year on a positive footing, with the S&P 500 and Nasdaq logging fresh intra-day and record closing highs - Dow fell -129-points or -0.29%, with Amgen Inc (down -1.69%), Honeywell International Inc (-1.28%, sliding further in after-hours trading after the company lowered its earnings and free cash flow guidance for 2024), JPMorgan Chase & Co (-1.39%), Merck & Co (-1.01%) and Verizon Communications Inc (-1.11%) all down over >1%. Technology giants Amazon.com Inc (up +1%), Apple Inc (+0.95%) and Microsoft Corp (+1.78%) were the leading performers in the 30-stock index.
In our second episode of Executive Focus, Chris sits down with Steven Kowal, CEO of Atturra. Steven shares insights into his leadership journey and how he has driven Atturra’s rapid growth since 2019, both organically and through strategic acquisitions. With extensive experience in executive management across IT software and services, Steven reflects on the challenges and opportunities he's faced throughout his career, including his roles as a sales director at a US-based IT company and as a CIO both in Australia and internationally.
Both the Dow and S&P500 set fresh record intra-day and closing highs in an abbreviated ‘Black Friday’ session, logging their best monthly performances of the year - Dow rose +189-points or +0.42% to 44,910.65, notching its 47th record close of the calendar year-to-date. Nvidia Corp rose +2.15% top be the leading Dow component. Walmart Inc rose +0.67% and touched its highest level (US$92.64) since it first began trading on the New York Stock Exchange (NYSE) in August 1972.
US equity and bond markets were CLOSED overnight for the Thanksgiving holiday, while tonight AEST sees an abbreviated trading session.
Technology stocks led US equity markets lower ahead of the Thanksgiving holiday - Dow eased -138-points or -0.31%. Salesforce Inc fell -3.84%, while ‘Magnificent Seven’ members Amazon.com Inc (down -1.02%), Microsoft Corp (-1.17%) and Nvidia fell (-1.15%) all fell over >1%
Both the Dow and S&P 500 settled at fresh record closing highs as investors digested results from a host of retailers and awaited quarterly earnings from some technology companies after the closing bell - Dow added +124-points or +0.28% to 44,860.31, with Amazon.com Inc (up +3.18%) the leading performer in the stock index. 3M Co (+2.02%), Microsoft Corp (+2.2%) and Walmart Inc (+2.02%) all gained over >2%. Amgen Inc fell -4.76% to be the worst performer in the Dow overnight after data from a Phase 2 study for its experimental weight-loss drug, MariTide, recorded up to 20% average weight loss at 52 weeks, below analysts’ estimates of a weight-loss reduction up to ~25%.
US equity markets advanced and bond yields retreated as investors digested President-elect Donald Trump’s nominee for Treasury secretary, Key Square Capital Management founder Scott Bessent - Dow gained +440-points or +0.99% to 44,736.57, recording its 45th record closing high of the year. Recent Dow inclusion Sherwin-Williams Co was the leading performer in the 30-stoc index overnight, while Boeing Co (+2.55%) and Unitedhealth Group Inc (+2.53%) both rose ~2.5%. Nvidia Corp fell -4.18% to be the worst performer in the Dow overnight.
In our first episode, Chris speaks with Tim Fung, CEO of Airtasker. Tim shares the journey behind Airtasker’s rapid growth, the challenges of leading in the tech space, and his unique perspective on the future of work in Australia.
US equity markets advanced, underpinned by a fresh outperformance for industrial and small capitalisation names - Dow rose +426-points or +0.97% to a record closing high of 44,296.51. Boeing Co +4.10% was the leading Dow component on Friday (22 November). Nike Inc rose +3.06% Nvidia Corp -3.22% was the worst performer in the 30-stock index and one of just five (5) Dow components to settle in the red on Friday (22 November). Amazon.com Inc lost -0.64%
US equity markets advanced, with cyclical stocks leading the latest rally amid hopes of an accelerating broader economy and rotation out of technology stocks - Dow rose +462-points or +1.06% International Business Machines (IBM) Corp (up +3.63%) and Sherwin Williams Co (+3.14%) both gained over >3%. Nvidia Corp added +0.53% to US$146.67 after a volatile session, paring an earlier rally of as much as 5% that lifted the chipmaker to a fresh record intra-day high (US$152.89) a day after the release of the ‘Magnificent Seven’ member’s fiscal third quarter result.
US equity markets mixed as investors eyed third-quarter results from chip giant Nvidia Corp after the closing bell and monitored geopolitical tensions with Russia - Dow rose +140-points or +0.32%, snapping a four session losing streak. Unitedhealth Group Inc rallied +4.07% to be the leading performer in the 30-stock index, while Amgen Inc (+2.83%) and International Business Machines (IBM) Corp (+2.07%) both rose over >2%.
US equity markets advanced, shrugging off concerns of mounting geopolitical tensions between Ukraine and Russia - Dow eased -121-points or -0.28%. Unitedhealth Group Inc (down 2.15%) was the worst performer in the 30-stock index. Nvidia Corp rallied +4.89% ahead of the release of the chipmaker’s third quarter result after the close of tonight’s AEST session.
In this episode of The Fundamentals Series, host Chris Titley sits down with Andrew Smith, Portfolio Manager at Perennial Value Management, to dive deep into the world of investment management. With a wealth of experience in managing portfolios across various asset classes, Andrew shares his insights on navigating volatile markets, his approach to stock selection, and the principles that guide successful long-term investing. Whether you're a seasoned investor or just starting out, this conversation offers valuable lessons for building a resilient portfolio in today's dynamic market.Tune in for expert advice and practical takeaways from one of Australia's leading investment professionals.
US equity markets advanced after logging their worst weekly performance since early September last week - Dow slipped -55-points or -0.13%. Nike Inc (down -2.31%) was the worst performer in the Dow overnight amid concerns that overall athletic apparel trends softened further in October. Walt Disney Co fell -1.34%, snapping a nine-session winning streak. Nvidia Corp fell -1.29%, with after The Information reporting over the weekend that the company's new Blackwell chips have faced overheating issues. The chip giant is slated to report its third quarter result after the close of Wednesday night’s AEST (21 November) session. Boeing Co (up +2.63%) was the leading performer in the 30-stock index overnight.
•Large-cap technology stocks weighed heavily on US equity markets on Friday (15 November) - Dow fell -305-points or -0.70%. Amazon.com Inc (down -4.19%) and Amgen Inc (-4.16%) both fell over >4%, while Nvidia Corp lost -3.26%. Walt Disney Co rallied +5.46% after the entertainment giant reported strong fourth quarter earnings accompanied by an upbeat outlook.
US equity markets retreated as Federal Reserve Chair Jerome Powell signaled that the strength of the economy could warrant some patience with future rate cuts.- Dow fell -207-points or 00.47%. The Federal Trade Commission (FTC) is preparing to launch an investigation into anti-competitive practices at Microsoft’s cloud computing business, as the US regulator continues to pursue Big Tech in the final days of Joe Biden’s presidency. The FTC is examining allegations that Microsoft is abusing its market power in productivity software by imposing punitive licensing terms to prevent customers from moving their data from its Azure cloud service to competitors’ platforms, said people with direct knowledge of the matter.
US equity markets settled little changed as investors digested a benign October inflation report - Dow added +47-points or +0.11%, unwinding an earlier rally of as much as +230-points. Amazon.com Inc (up +2.48%) and Chevron Corp (+2.21%) both gained over >2%. Boeing Co (down -3.58%) was the worst performer in the 30-stock index overnight.
The benchmark US indices edged their way to fresh record highs, with the Dow and S&P 500 settling above 44,000 and 6,000 respectively for the first time ever - Dow gained +304-points or +0.69% to 44,293.13. Salesforce Inc (up +6.14%) was the leading performer in the 30-stock index, while Goldman Sachs Group Inc (+2.22%) and Honeywell International Inc (+2.62%) gained over >2%.
This week, host Chris Titley speaks with Robert Bruce, Portfolio Manager at Acorn Capital. With extensive expertise in investment strategy and portfolio management, Robert brings a wealth of experience in identifying high-potential opportunities across a range of asset classes.
US equity markets extended their rally, lifting the benchmark indices to fresh record highs to cap their best week in a year following Donald Trump’ sweeping election victory and after the Federal Reserve cut its benchmark interest rate by -25 basis points - Dow rose +260-points or +0.59% to 43,988.99, briefly crossing 44,000 for the first earlier in the session. Salesforce Inc +3.59% was the leading performer in the 30-stock index on Friday (8 November). Nvidia Corp (down -0.84%) became a member of the Dow on Friday (8 November), replacing beleaguered chipmaker Intel Corp (-0.11%). Paint maker Sherwin-Williams Co (up +0.70%) also joined the blue-chip index, supplanting chemical giant Dow Inc (-4.93%).
The post-election rally rolled on, lifting the S&P 500 and Nasdaq to fresh record highs for a second session in-a-row as investors also digested the latest rate cut and monetary policy pronouncements from the Federal Reserve. - Dow flat.
The benchmark US equity indices roared to fresh all-time highs following a resounding election victory for the Republican party and president elect Donald Trump - Dow soared +1-508 points or +3.57% to 43,729.93. Investment banks Goldman Sachs Group Inc (+13.10%) and JPMorgan Chase & Co (11.54%) to be the leading performers in the 30-stock index, while American Express Co (up +6.97%), Caterpillar Inc (+8.74%) and Intel Corp (7.42%) all gained over >6.5%
Large capitalisation technology stocks led US equity markets higher as investors awaited the results U.S. presidential election - Dow rose +427-points or +1.02%. Intel Corp rose +3.55%, more than recouping the previous session’s -2.93% decline to be the leading performer in the 30-stock index. Goldman Sachs Group Inc rose +3.03%. Boeing Co lost -2.62% despite workers voting by 59% to end their strike and return to work, securing a 38% raise over the next four years and paving the way for the troubled manufacturer’s Washington factories to restart production.
This week, host Chris Titley chats with Chris Stott, Chief Investment Officer and Portfolio Manager at 1851 Capital. With deep expertise in investment strategy and portfolio management, Chris brings a wealth of experience in identifying high-potential opportunities across various asset classes.
US equity markets made a positive start to November as investors digested the latest results from large technology companies and labour market data that reinforced expectations that the Federal Reserve will continue cutting interest rates - Dow gained +289-points or +0.69%. Intel Corp (up +7.81%) and Amazon.com Inc (+6.19%) were the leading performers in the 30-stock index, with both companies posting quarterly results after the close of the previous session. Boeing Co +3.54% after the aircraft manufacturer reached a tentative deal with International Association of Machinists (IAM) on a new contract, potentially ending a crippling seven-week strike. The new offer includes a 38% general wage increase over four years, higher than the previous offer of 35%, with union members expected to vote on the deal tonight AEST.
Technology stocks dragged US equity markets lower on the final trading day of October - Dow fell -378-points or 0.90%. Microsoft Corp (down -6.05%) was the worst performer in the 30-stock index following the release of the company’s third quarter result after the closing bell. The broader S&P500 dropped -1.86%, with Information Technology (down -3.57%) leading nine of the eleven primary sectors lower. Utilities (+1.04%) and Energy (+0.66%) the only major sectors to advance.
US equity markets settled modestly weaker amid a deluge of quarterly earnings and fresh economic data and with investors eyeing third quarter results from two of the so-called ‘Magnificent Seven’ cohort after the closing bell - Dow slipped -92-points or 0.22% unwinding an earlier rally of almost +225-points. International Business Machines Corp (down -2.63%), Intel Corp (-2.62%) and Nike Inc (-2.49%) all fell ~2.5% to be the worst performers in the 30-stock index overnight. Visa Inc rallied +2.94% after reporting a stronger-than-expected fiscal fourth quarter result after the close of the previous session.
This week, host Chris Titley welcomes Andrew Mitchell, Founder and Senior Portfolio Manager at Ophir. With a keen eye for emerging opportunities, Andrew has played a pivotal role in building Ophir into a leading investment firm.In this episode, Andrew shares his insights on navigating market dynamics, identifying growth sectors, and effective portfolio management strategies. Whether you’re an investor, fund manager, or business leader, this conversation offers valuable perspectives on the current investment landscape.
US equity markets firmer as investors eyed earnings from a number of large capitalisation technology companies and key economic data - Dow lost -155-points or -0.36%. Home Depot Inc (down -1.94%) and Coca-Cola Co (-1.66%) both fell over >1.5%.
US equity markets climbed as of the busiest week of the US third quarter earnings calendar got underway and ahead of some key economic releases later in the week - Dow rallied +273-points or +0.65%, snapping a five-session losing streak. 3M Co (up +4.44%) after J.P. Morgan reiterated its 'overweight' rating and boosted its price target on the manufacturer of industrial, safety, and consumer products. However, Boeing Co fell -% after the aircraft manufacturer announced plans to raise ~US$19B to shore up its finances.
US equity markets mixed on Friday (25 October) to cap off a bumpy few days of trading as investors eye a huge week of economic data and earnings reports - Dow fell -260-points or -0.61%. McDonald’s Corp fell -2.97% and was the worst performer in the 30-stock index on Friday (25 October) and the stock has been under pressure in recent days following news that an E. coli outbreak in several states was tied to onions on the fast food chain's Quarter Pounder burgers.
US equity markets mixed as investors trawled through another busy corporate earnings calendar - Dow eased -141-points or -0.33%, booking its fourth consecutive session decline. International Business Machines (IBM) fell 6.17% to be the worst performer in the 30-stock index after a mixed third quarter result after the close of the previous session. Boeing Co -1.19% after the International Association of Machinists and Aerospace Workers Union rejected a new labour contract, extending a six-week strike that has crippled production.
US equity markets declined as bond yields continued to climb - Dow dropped -410-points or -0.96%, paring an earlier decline of as much as 632 points but still marking the 30-stock index’s largest one-day decline since 6 September. McDonald’s Corp fell -5.12% to be the worst performer in the 30-stock index after the Centers for Disease Control and Prevention (CDC) said they were investigating an E. coli outbreak. Amazon.com Inc (down 2.6%) and Apple Inc (-2.16%) both fell over >2%. Verizon Communications Inc rose 3.28% to be the leading Dow component overnight, recouping some of the previous session’s -5.3% decline in the wake of telecom giant’s third quarter result falling short of consensus expectations despite continuing to add wireless phone and internet subscribers
US equity markets mixed as bond yields continued to climb and investors digested a slew of corporate earnings releases - Dow dipped -7-points or -0.02% recovering from an earlier decline of -213-points. McDonald’s Corporation dropped over >6.5% in extended trading (after dipping -0.06% in the regular session) after U.S. health authorities said they were investigating an E. coli outbreak possibly linked to the burger chain’s Quarter Pounder. The Centers for Disease Control and Prevention (CDC) said in a statement that 49 cases of E. coli infection had been reported across 10 states. Ten known cases have resulted in hospitalisation and 1 death has been reported. Microsoft Corp rose +2.08% was the leading performer in the 30-stock index. Walmart Inc rose +1.5% after the discount retailing giant announced same-day pharmacy delivery nationwide. The service is currently offered in six states, but will be offered in 49 states by the end of January.
This week, host Chris Titley welcomes Philip King, Chief Investment Officer at Regal Funds Management. As the founder of the rapidly growing ASX-listed company Regal Partners, he has helped the firm become a powerhouse, now managing over $12 billion in funds. Philip shares his insights on market trends, risk management, and the evolving financial landscape. Whether you’re a seasoned investor, fund manager, or CEO, this conversation provides practical advice on messaging and key considerations for investing.
US equity markets settled narrowly mixed after a morning session rally for the semiconductor sector, spurred by solid quarterly results from the world's largest contract chipmaker, lost some steam - Dow rose +161-points or +0.37% to 43,239.05 to book its 39th record closing high of the year. American Express Co (up +1.46%) and Chevron Corp (+1.66%) were the leading performers in the 30-stock index.
US equity markets advanced amid a broad rally following some strong quarterly results - Dow gained +337-points or +0.79% to a fresh record closing high of 43,077.70. Cisco Systems Inc gained +4.25% to be the leading performer in the 30-stock index after analysts at Citi raised their recommendation on the networking company to ‘Buy’ from ‘Neutral’ and raised their target to US$62 from US$52, saying the company is in position to benefit from the spread of artificial intelligence (AI). UnitedHealth Group Inc (+2.71%), Visa Inc (+2.95%) and Walt Disney Co (+2.69%) all climbed over >2.5%. Meanwhile, Amazon.com Inc (down -0.43%) became the latest big technology company to buy into nuclear power to fuel the growing demands from data centres. Amazon Web Services (AWS) is investing more than US$500M in nuclear power, announcing three projects from Virginia to Washington state. AWS announced it has signed an agreement with Dominion Energy Inc (up +5.10%), Virginia’s utility company, to explore the development of a small modular nuclear reactor (SMR) near Dominion’s existing North Anna nuclear power station.
We’re excited to welcome Tom Millner, Director and Portfolio Manager at Contact Asset Manager. Tom brings a wealth of experience and unique perspectives that you won’t want to miss.
US equity markets settled with modest declines in the wake of slightly stickier inflation data for September - Dow slipped -58-points or -0.14%. Boeing Co fell -1.84% to be the worst performer in the 30-stock index. International Business Machines (IBM) Inc (-0.55%) touched a record all-time high (US$235.83) earlier in the session. Amazon.com Inc rose +0.80% after the on-line retailing giant said that sales and number of items sold during Prime Big Deal Days on Tuesday (8 October) and Wednesday (9 October) were the most ever for one of its October events. Doug Herrington, Chief Executive Officer (CEO) of Worldwide Amazon Stores, said it “marked a strong start to the holiday shopping season.” Amazon was in trying to get a jump on the key sales period heading into Christmas. Target Corp’s (up +1.06%) second Target Circle Week of the year kicked off on Sunday (6 October) and runs through Saturday (12 October). Dow component Walmart Inc’s (down -0.98%) Holiday Deals event runs until Sunday (13 October).
US equity markets settled with modest declines in the wake of slightly stickier inflation data for September - Dow slipped -58-points or -0.14%. Boeing Co fell -1.84% to be the worst performer in the 30-stock index. International Business Machines (IBM) Inc (-0.55%) touched a record all-time high (US$235.83) earlier in the session. Amazon.com Inc rose +0.80% after the on-line retailing giant said that sales and number of items sold during Prime Big Deal Days on Tuesday (8 October) and Wednesday (9 October) were the most ever for one of its October events. Doug Herrington, Chief Executive Officer (CEO) of Worldwide Amazon Stores, said it “marked a strong start to the holiday shopping season.” Amazon was in trying to get a jump on the key sales period heading into Christmas. Target Corp’s (up +1.06%) second Target Circle Week of the year kicked off on Sunday (6 October) and runs through Saturday (12 October). Dow component Walmart Inc’s (down -0.98%) Holiday Deals event runs until Sunday (13 October).
US equity markets built on the previous session’s solid gains, with the S&P 500 and Dow logging fresh record closing highs ahead of key inflation figures tonight AEST and third quarter earnings season moving into gear - Dow rallied +432-points or +1.03% to 42,512 . Honeywell International Inc +3.24% Boeing Co (down -3.41%) was the worst performing Dow component overnight after the aircraft manufacturer withdrew its contract offer to the striking International Association of Machinists, observing that "the union did not seriously consider our proposals," and instead made "non-negotiable demands" that the company could not meet. Meanwhile, S&P Global warned the strike was "increasing financial risk for the company," and estimated Boeing will have a US$10B cash outflow this year as a result. The ratings agency put its ratings on Boeing's debt on "CreditWatch with negative implications."
Technology stocks powered a rebound on US equity markets and overshadowed disappointment around a lack of detail regarding any fresh China stimulus measures - Dow rose +126-points or +0.3%. Intel Corp (up +4.2%) was the leading performer in the 30-stock index, while economic bellwether Caterpillar Inc and Dow Inc both fell -2.58% to be the key laggards. Boeing Co, with S&P Global Ratings weighing downgrading the aircraft manufacturer’s credit score to junk as the company continues to suffer from the fallout of a protracted labour strike.
US equity markets retreated, handing back the previous session’s post jobs report surge as expectations for big interest rate cuts subsided and oil prices continued rising on concerns about Middle East tensions - Dow shed 399-points or -0.94%. Travelers Companies Inc (down -4.34%) was the worst performer in the 30-stock index. Amazon.com Inc (down -3.06%) and Walt Disney Co (-2.9%) . Apple Inc fell -2.25% after Jefferies downgraded the company to “hold” from “buy”, saying expectations for sales of the iPhone 16 and 17 are too high.
•US equity markets rallied as investors welcomed a stronger-than-expected monthly jobs report that bolstered hopes of a so-called soft landing for the US economy and a suspension of the U.S. dockworkers strike - Dow rose +341-points or +0.81% to a fresh record closing high of 42,352.75. JP Morgan Chase & Co (up +3.55%) and American Express Co (+3.02%) rose over >3% to be the leading performers in the 30-stock index on Friday (4 October). Boeing Co rose +2.98% after its joint venture with Lockheed Martin Corp (down -0.11%), United Launch Alliance, successfully completed the second launch of its new Vulcan rocket.
US equity markets retreated but settled off their worst levels of the session ahead of tonight’s AEST monthly jobs report and as investors continue to monitor developments in the Middle East - Dow fell -185-points or -0.44%, with Amazon.com Inc (down -1.52%) the worst performer in the 30stock index.
US equity markets settled little changed on the second trading day of the fourth quarter, with investors in a generally cautious mood against the backdrop of rising tensions in the Middle East and a strike at U.S. East Coast and Gulf ports - Dow added +40-points or +0.09%, advancing for the eight time in the past ten sessions. Salesforce Inc rallied +3.18% to be the leading performer in the 30-stock index, buoyed by a broker upgrade. Nike Inc -6.77% after the sporting apparel and equipment giant after reported a decline in fiscal first quarter earnings per share (EPS) and sales and did not provide full year guidance after the close of the previous session. Apple Inc added +0.25%, with Bloomberg reporting that the company is working on new versions of a number of its products, including the low-cost iPhone SE, with plans to release them over the next year.
US equity markets declined as a major escalation of the conflict in the Middle East and the spectre of a large labour strike at ports on the U.S. East Coast and Gulf Coast weighed on investor sentiment - Dow fell -173-points or 0.41%, snapping a three session winning streak that had lifted the 30-stock index to record highs. Intel Corp (down -3.28%) was the worst performing Dow component overnight, while Microsoft Corp (-2.23%) and Walt Disney Co (-2.22%) both fell over >2%. Boeing Co rose +1.43% following a Bloomberg report that the aerospace and defence giant is working with advisers to explore its options to bolster cash reserves depleted by a machinists strike, including issuing at least US$10B in new shares. Chevron Corp (up +1.65%) was the leading Dow component, tracking the latest rise in crude prices
US equity markets mixed on Friday (27 September) albeit tamer inflation figures lifted the Dow to a fresh record peak and buoyed small capitalisation stocks - Dow added +138-points or +0.33% to 42,313, booking its 32nd record close of 2024. Chevron Corp +2.46%.
US equity markets advanced ahead of tonight’s AEST key inflation figures, buoyed by fresh China stimulus measures and a strong gains for chipmakers - Dow gained +260-points or +0.62% to 42,175.11, logging its second highest close ever. Caterpillar Inc (up +3.36%) and Dow Inc (+3.56%) rose over >3%.
The Dow Jones Industrial Average and S&P 500 retreated from record highs - Dow fell -293-points or -0.7%, snapping a four session winning streak. Amgen Inc dropped -5.46% to be the worst performing Dow component overnight after the biotechnology company posted disappointing results from two Phase 3 trials. Visa Inc fell -1.15%, extending the previous session’s -5.49% decline that came after report that the U.S. Department of Justice plans to file a lawsuit against the payments network operator, alleging that it illegally monopolised the country's debit card market. A US$1 move in any one of the 30 Dow components results in a 6.57-point swing.
The S&P 500 and Dow booked fresh record closing highs, shrugging off some weak consumer confidence data and buoyed by the latest stimulus measures from China’s central bank - Dow added +84-points or +0.20% to 42,208.22, marking the 30-stock indice’s 31st record close of 2024. Caterpillar Inc (up +3.98%) was the leading Dow component overnight.
The S&P 500 and Dow logged record closing highs, building on last week's Federal Reserve rate cut-induced momentum and after data showed steady business activity in September - Dow added +61-points or +0.15% to 42,124.65, logging a record closing high for a third consecutive session. Intel Corp gained +3.30% to be the leading performer in the 30-stock index after Bloomberg reported on Sunday (22 September) that Apollo Global Management has offered to invest as much as US$5B in the struggling chipmaker. Intel got a boost last week from a company update on its transformation plans as well as a Wall Street Journal report Friday (20 September) that Qualcomm Inc (down -1.75%) had made a "takeover approach". Boeing Co (+1.96%) has made its “best and final” offer to striking workers, offering a 30% raise as it tries to end a work stoppage that threatens its recovery. The 33,000 members of the International Association of Machinists and Aerospace Workers District 751 walked off the job 11 days ago after rejecting a contract negotiated by the union’s leadership.
US equity markets ended a strong week on a mixed note, with trading relatively subdued despite Friday’s (20 September) session being a “triple witching” event - the simultaneous expiration of stock options, stock index futures, and stock index options contracts that saw option contracts tied to more than >US$5 trillion in tradeable stocks expire - Dow edged +38-points or +0.09% higher to a fresh record closing high of 42,062.81. Nike Inc rallied +6.84% to be the leading Dow component on Friday (20 September) after announcing after the close of the previous session that chief executive John Donahoe will retire next month and will be succeeded by company veteran Elliott Hill, an abrupt leadership change punctuating a period of dour economic performance at the world’s largest sportswear maker. Initial sales data for Apple Inc’s (down -0.29%) iPhone 16 will be released tonight AEST after the new device went on sale for the first time last Friday (20 September). The technology giant's AI model, Apple Intelligence, won't be available immediately but will come later as a free software update.
US equity markets rallied, lifting both the Dow and S&P 500 to fresh record highs as investors applauded a -50-basis point interest rate cut by the Federal Reserve a day earlier - the largest in 16-years - that they hope will deliver a so-called soft landing - Dow rose +522-points or +1.26% to 42,025.19. It is the first time that the 30-stock index has closed above >42,000 and marks 45-days since the Dow’s last 1,000 point milestone. Caterpillar Inc (up +5.12%) and Salesforce Inc (+5.37%) both gained over >5% to be the leading Dow components overnight.
US equity markets failed to hold initial gains that came after the Federal Reserve delivered -50 basis point interest rate cut and that had lifted both the S&P 500 and Dow to fresh record intra-day highs - Dow fell -103-points or -0.25%, having rallied ~376-points immediately following the Fed’s rate announcement and lifting the 30-stock index to a record intra-day peak just shy of 41,982. Intel Corp fell -3.26% to be the worst performing Dow component, having rallied over >10% in the preceding three sessions.
US equity markets mixed ahead of the latest interest rate decision and monetary policy pronouncements from the Federal Reserve tomorrow morning AEST - Dow dipped -16-points or 0.04% to 41,606.18, snapping a four session winning streak after hitting a fresh record intra-day high (41,835.28) earlier in the session. Intel Corp rallied +2.68% to be the leading Dow component for a second session running after Chief Executive Officer (CEO) Pat Gelsinger provided an update on the company's restructuring efforts, citing progress on cost-cutting and unveiling plans to turn its chipmaking arm into a separate subsidiary. The company also said it would produce chips for Amazon.com Inc’s (+1.08%) Amazon Web Services and the U.S. military. Microsoft Corp rose +0.88% after the company announced a US$60B stock buyback programme and boosted its dividend (to US$0.83c per share, up from US$0.73c previously) after the close of the previous session. Separately, BlackRock is preparing to launch a more than >US$30B artificial intelligence (AI) investment fund (via its infrastructure investment unit, Global Infrastructure Partners) with Microsoft to build data centres and energy projects to meet growing demands stemming from AI.
US equity markets mostly firmer in cautious trade of key central bank meetings later this week - Dow rose +228-points or +0.55% to 41,622.08, logging its 27th record close of the year-to-date. Intel Corp rallied +6.36% to be the leading Dow component after confirming press reports late last Friday (13 September) that it has been granted up to US$3B in Chips Act funding to “expand the trusted manufacturing of leading-edge semiconductors for the U.S. government.” Specifically, this award covers defence work. This deal is separate from the ~US$20B in funding that Intel announced earlier this year that it was eligible for through the Chips Act. Apple Inc fell -2.78% amid concerns about early sales for the just-launched iPhone 16. Analysing delivery lead times and whether models of the iPhone 16 will be available in stores on Friday (20 September) as scheduled, several analysts said that early indications appear disappointing for Apple's latest smartphone. Separately, the tech giant also received FDA approval for the sleep apnoea detection feature in its newest smartwatch operating system. Meanwhile, Amazon.com Inc (-0.86%) told employees to return to in-person work five days a week next year, barring any ”extenuating circumstances” or exceptions.
•US equity markets extended their recovery from an early September sell-off on Friday (13 September), with the S&P 500 and Nasdaq recording their best weekly gains of 2024 - Dow rallied +297-points or +0.72%. Boeing Co shed 3.69% to be the worst performer in the 30-stock index after the aerospace company’s biggest union, the International Association of Machinists and Aerospace Workers representing ~33K workers, went on strike after voting down a new, four-year labour deal. The strike will halt work on the company’s best-selling 737, 777, and 767 jets.
The S&P 500 and Nasdaq extended gains into a fourth straight session after the latest wholesale inflation figures helped reinforce expectations for an interest rate cut when the Federal Reserve convenes its latest monetary policy meeting next week (17-18 September) - Dow rose +235-points or +0.58%.
US equity markets recovered from earlier losses to advance and settle near their session highs as investors weighed the implications of the latest CPI data and the presidential debate - Dow rose +125-points or +0.31%, with American Express Co (up +3.57%) and Intel Corp (+3.48%) both rallying over >3%.
US equity markets mixed ahead of the first presidential debate later this morning AEST and inflation figures tonight AEST - Dow eased -93-points or -0.23%. JPMorgan Chase & Co shed -5.19% to be the biggest decliner in the 30-stock index after president Daniel Pinto, speaking at a Barclays financial services conference in New York, tempered full-year net interest income (NII) expectations for the largest US bank by assets. The current forecast of US$91.5B in 2024 was, he said, “not very reasonable” in light of the Federal Reserve’s impending interest rate cuts. Goldman Sachs Group Inc fell -4.39% after chief executive David Solomon warned investors at the same conference a day earlier that the investment bank’s trading business was on track to see revenues fall about 10% in the third quarter due to a “more challenging macro environment, particularly in the month of August”. Boeing Co lost -1.74%, with Reuters reporting that the aircraft manufacturer had informed its suppliers that it now expects MAX production to reach 42 planes per month in March 2025, compared with its prior estimate of September 2024. Apple Inc, which unveiled its new artificial intelligence (AI)-enabled iPhone on Monday (9 September), lost -0.36% after the Court of Justice of the European Union (EU) overturned a lower court ruling on Irish tax breaks for the tech giant.
US equity markets rebounded from their biggest weekly losses of the year last week, with investors eyeing key inflation figures in the coming days - Dow rallied +484-points or +1.20%, more than recouping last Friday’s (6 September) -410-point or -1.01% fall. Boeing Co gained +3.36% after the aircraft manufacturer and its biggest union (the International Association of Machinists and Aerospace Workers) reached a tentative deal covering more than 32,000 workers, averting a possible strike. Apple Inc inched +0.04% higher following its product launch event called “It’s Glowtime” that saw the unveiling of the iPhone 16, Apple Watch Series 10 and AirPods 4. Chief executive Tim Cook said the iPhone 16 - which will go on sale on 20 September with pre-orders starting this Friday (13 September) - was the first of its smartphones to be “designed from the ground up” for artificial intelligence “and its breakthrough capabilities”. Goldman Sachs Group Inc fell ~1% in extended trading (after rising +1.87% in the regular session) after chief executive David Solomon warned investors that the investment bank’s trading business was on track to see revenues fall about 10% in the third quarter. “With respect to trading . . . we had an extremely strong third quarter in 2023,” Mr Solomon said at an industry conference organised by Barclays. “This quarter, given what I’d say is a more challenging macro environment, particularly in the month of August, that business is trending down close to 10 per cent, largely due to FICC [fixed income, currencies and commodities trading],” Mr Solomon said. Mr Solomon also flagged that Goldman’s earnings in the third quarter would also take a US$400M hit from its continued pullback from consumer trading
US equity markets retreated sharply on Friday (6 September) as the latest employment report underscored labour market weakness and spurred further debate about how aggressive the Federal Reserve will be when it starts cutting interest rates - Dow lost -410-points or -1.01%, with Amazon.com Inc (down -3.65%) and American Express Co (-3.09%) both falling over >3%. Intel Corp fell -2.63%, with Reuters reporting that Qualcomm Inc (-3.37%) is looking at buying segments of the company, potentially including its PC chip design business. Separately, Bloomberg reported that Intel is considering selling off some of its stake in MobilEye Global (-8.48%), which provides hardware and software for self-driving vehicles, as part of the chipmaker's effort to improve its financial position. Apple Inc (down -0.7%) hosts its product launch event called “It’s Glowtime” tonight AEST and is expected to announce its new iPhone 16 lineup alongside new Apple Watch models, and potentially other products. Boeing Co (-2.79%) and its largest union said Sunday (8 September) they reached agreement on a new contract that, if ratified, will avoid a strike that threatened to shut down aircraft production by the end of the coming week.
US equity markets ended mostly to the downside overnight as the S&P 500’s September struggles continued following weak labour market data - Dow was the outlier rising -38-points or +0.09%. Intel Corp (down -3.33%) was amongst the worst performers in the 30-stock index, amid a broader selloff of chip stocks as well as Reuters reporting that recent tests of the chip giant's most advanced manufacturing process conducted by Broadcom (AVGO) failed.
US equity markets resumed trading after the Labor Day long weekend and settled sharply lower to kick-off what is a historically tough month for equities, with investors assessing some weak manufacturing data while eyeing Friday’s (6 September) key non-farm payrolls figure - Dow shed -626-points or -1.51%. Intel Corp (down -8.8%) was the worst performer in the 30-stock index. The chipmaker is the worst performing Dow component calendar year-to-date (down -60%) and is in danger of losing its status as a member of the Dow Jones Industrial Average (DJIA). Intel is the lowest-weighted component of the index, making up just 0.3% of the DJIA as of last week. Boeing Co lost -7.32%, with Wells Fargo downgrading the planemaker to "underweight" from "equal weight" and cutting its target price to US$119 from US$185. The analyst pointed to Boeing's "extensive delays and added cost" impacting aircraft production cash flow.
US equity and bond markets were CLOSED overnight for Labor Day. In US corporate earnings, Gitlab Inc and Zscaler Inc post quarterly results tonight AEST.
US equity markets advanced on Friday (30 August) to cap one of the most volatile months of trading in years - Dow rose +228-points or +0.55% to 41,563.08 to log its fourth record closing high of the week. Intel Corp rallied +9.49% following a Bloomberg report that the chipmaker is considering the spin-off or sale of its foundry business. Goldman Sachs Group Inc rose +0.62%, with the Wall Street Journal reporting that the investment bank is cutting as many as 1,800 of its employees as part of a planned 3% to 4% staff reduction following the bank’s annual performance-review process.
US equity markets mixed, with both the S&P 500 and Nassq losing ground late in the session and selling in Nvidia Corp intensified - Dow gained +244-points or +0.59% to 41,335.05, logging its third record closing high in the past four sessions. Apple Inc rose +1.46% with after Citigroup nominating the iPhone maker its top artificial intelligence (AI) pick. Meanwhile, Nikkei reported that Apple is telling suppliers to prepare components and parts for some 88M to 90M smartphones, according to multiple sources familiar with the plan. That is more than last year's initial component orders for around 80M new iPhones. Apple is preparing for sales of its first iPhone with Apple Intelligence, which includes generative AI features. The company has announced it will host its flagship product launch event on 9 September. Salesforce Inc fell -0.73%, giving back earlier gains after the enterprise software company reported results after the close of the previous session that exceeded expectations on both the top and bottom lines.
US equity markets retreated ahead of the much anticipated release of chip giant Nvidia Corp’s second quarter result after the close, and with a batch of US retailers cutting outlooks amid a challenging consumer environment - Dow fell -159-points or -0.39%, paring an earlier decline of more than >400-points. Nike Inc (down -2.93%) was the worst performer in the 30-stock index.
US equity markets settled little changed as investors eye Nvidia Corp’s (up +1.46%) second quarter result tonight AEST - Dow inched+10-points or +0.02% higher to a fresh record closing high of 41,250.50.
US equity markets eased in a quiet session following last Friday’s (23 August) strong gains, with investors eyeing chip giant Nvidia Corp’s (down -2.25%) second quarter result on Wednesday night AEST (28 August) and inflation figures at the back end of the week - Dow added +65-points or +0.16% to 41,240.52, notching its 23rd record close of 2024. Apple Inc (up +0.15%) is likely to unveil its newest phones and the next generations of the Apple Watch and AirPods at an event on 9 September reportedly called “It’s Glowtime”. The iPhone maker is expected to officially announce the long-anticipated iPhone 16, supercharged with artificial intelligence (AI) capabilities. Intel Corp fell -2% following a report from CNBC that said the chip maker has hired advisors, including some with Morgan Stanley (up +0.43%), to help defend the company against potential shareholder activism.
US equity markets rallied on Friday (23 August) after Federal Reserve Chair Jerome Powell said “the time has come” for monetary easing - Dow rose +462-points or +1.14% to 41,175.08, closing within 0.1% of a fresh record close.
US equity markets retreated as central bankers will gather in Jackson Hole, Wyoming for the Federal Reserve’s annual Monetary Policy Symposium, with the S&P 500 and Nasdaq logging their worst daily decline since 5 August - Dow fell -178-points or -0.43%. Intel Corp slumped -6.12% to be worst performer in the 30-stock index overnight following reports that the semiconductor giant's progress on constructing two new chip fabrication facilities in Germany may be stalled. Intel expected the Magdeburg plants to be online and producing high-performance semiconductors as soon as 2027. However, according to media reports this week, the schedule now appears uncertain. Amazon.com Inc (-2.21%) and Microsoft Corp (-2.03%) both fell over >2%.
US equity markets logged modest gains as investors digested earnings reports from various retailers, the minutes from the Federal Reserve’s late July monetary policy meeting and a sharp downward revision to annual payrolls data - Dow edged +56-points or +0.14% higher, with Intel Corp (up +2.0%) the leading performer in the 30-stock index. American Express Co fell -2.68% to US$246.30 after Bank of America Securities downgraded the payments giant to ‘Neutral’ from ‘Buy’ with a US$263 price target, with the analysts pointing to the stock’s current premium valuation and the potential for subdued growth in billings volume.
US equity markets logged modest declines, with the S&P 500 and Nasdaq snapping eight session winning streaks - Dow slipped -62-points or -0.15%, snapping a five session winning streak. Boeing Co shed -4.2% after the aerospace company said it would be grounding its four-plane test fleet of the 777x after finding cracks in the jet’s structure. Intel Corp lost -2.46%, unwinding much of the previous session’s +3.11% gain.
US equity markets opened the week on a positive footing, maintain the momentum that saw the benchmark indices record their strongest weekly gains of the year last week - Dow advanced for a fifth consecutive session, gaining +237-points or +0.58% to 40,896.53. The 30-stock index closed 0.73% below its record closing high (41,198.08) set on 17 July. Intel Corp (up +3.11%) and McDonald’s Corp (+3.25%) both rose over >3% to be the leading Dow components overnight.
US equity markets advanced on Friday (16 August) to cap their best week of 2024 to date, with the S&P 500 and Nasdaq - Dow added +97-points or +0.24%, rising for a sixth time in seven sessions.The broader S&P500 rose +0.20%, with Financials (up +0.62%) leading eight of the eleven primary sectors higher. Ulta Beauty Inc rose +3.12% and extended gains after regulatory filing late last week revealed Warren Buffett's investment vehicle Berkshire Hathaway Inc had acquired an ~US$266M stake in the cosmetics retailer. Amcor Plc lost -3.69% to be the worst performer in the S&P 500 after the packaging giant missed revenue estimates and provided weak guidance after the close of the previous session as volumes for healthcare and North American beverage companies remained soft.
•US equity markets rallied following the release of a fresh batch of economic data that eased concerns about the health of the economy and some further robust corporate earnings releases - Dow gained +555-points or +1.39%, rising for the fifth time in six sessions. Cisco Systems Inc jumped +6.8% to be the leading performer in the 30-stock index after the software and networking company posted better-than-expected adjusted earnings per share (EPS) and revenue for its fiscal fourth quarter and outlined a restructuring plan that will see its worldwide workforce shrink by ~7% after the closing bell of the previous session. Intel Corp rose +3.87% despite the Financial Times (FT) reporting that talks with Japan’s Softbank Group Corp (+2.16%) to manufacture chips rivalling those made by Nvidia Corp (+4.05%) fell apart in recent months. SoftBank blamed Intel for the collapse of the talks due to its inability to meet demands for volume and speed, and has now held talks with Taiwan Semiconductor Manufacturing Co (down -0.53%), according to the FT. Boeing Co rose +4.69% after El Al Israel Airlines confirmed a US$2.5B deal to buy up to 31 of the aerospace giant's 737 Max planes. Nike Inc gained +5.07% after Bill Ackman’s Pershing Square Capital Management disclosed a new stake in the company. A U.S. Securities and Exchange Commission (SEC) filing recorded that the hedge fund investor bought just over 3M shares in the athletic apparel major.
US equity markets advanced after the annual rate of headline consumer inflation fell below 3% for the first time since March 2021 - Dow gained +243-points or +0.61%, with American Express Co (up +2.0%) the leading performer in the 30-stock index. The broader S&P500 added +0.38%, extending gains into a fifth straight session that has lifted the index +4.83%. Financials (up +1.29%) led eight of the eleven primary sectors higher.
•US equity markets rallied strongly following tamer-than-expected wholesale inflation data, with the S&P 500 and Nasdaq booking their biggest four-day percentage gains of 2024 - Dow gained +409-points or +1.04%. Intel Corp jumped +5.73% to be the leading performer in the 30-stock index. A filing showed the company had divested its stake (~1.8M shares) in chip designer Arm Holdings Plc (+5.69%). Nike Inc rallied +5.17% to US$78.50, with analysts at Bernstein Research reiterating their "buy" rating for the stock along with a US$112 price target.
A mixed and muted session for US equity markets as investors eye inflation and retail sales figures later in the week - Dow fell -141-points or -0.36%, with Boeing Co (down -2.25%) and Procter & Gamble Co (-2.19%) both down over >2%.
•US equity markets logged modest gains on Friday (9 August) and continued to mount a comeback that saw the S&P 500 and Nasdaq all but erase Monday’s (5 August) rout that saw both indices register their sharpest daily losses since 13 September 2022 - Dow edged +51-points or +0.13% higher, with American Express Co (up +1.85%), Apple Inc (+1.37%) and Salesforce Inc (+1.37%) all rising over >1%. Intel Corp shed -3.81% to be the worst performer in the Dow last Friday (9 August).
US equity markets rallied sharply amid a broad-based rally that saw the S&P 500 and Nasdaq record their strongest session since 30 November, 2022 after the latest weekly jobless claims figures soothed nerves in some quarters around the strength of the labour market - Dow gained +683-points or +1.76%, logging its strongest session since 16 July. The broader S&P500 rallied +2.3%. Information Technology rallied +3.31% to lead all eleven primary sectors higher, six of which logged gains of more than >2%. Palantir Technologies jumped +11.25 after the company announced an agreement with Microsoft Corp (+1.07%) to provide the U.S. government with secure cloud, artificial intelligence (AI), and analytics capabilities for national security. The agreement provides the U.S. government agencies including the Central Intelligence Agency (CIA) with large language models (LLMs) through Azure OpenAI Services, Microsoft's cloud offerings through its partnership with OpenAI, and Palantir's AI Platform (AIP). Warner Bros. Discovery Inc shed -8.95% after the entertainment giant posted a loss of nearly -US$10B for the second quarter after the close of the previous session.
•US equity markets retreated, relinquishing earlier session gains and capping the worst 5-day start to a month for the Dow and S&P 500 since January 2016 - Dow fell -234-points or -0.60%,. Intel Corp fell -4.24% following a fresh broker downgrade (with analysts at Mizuho Securities cutting their recommendation to ‘Neutral’ from ‘Outperform’ and writing of “a tough road ahead to regain leadership”), extending the semiconductor company’s 5-day slide to -43.6%. •The broader S&P500 lost -0.77%, with Consumer Discretionary (-1.39%), Materials (-1.39%), Information Technology (-1.36%) and Health Care (-1.07%) all declining over >1% to lead seven of the eleven primary sectors lower. Super Micro Computer Inc tumbled -20.14% after the artificial intelligence (AI) server company – and a customer and close partner of Nvidia Corp (-5.12%) – reported its fiscal fourth-quarter result after the close of the previous session as the cost of transitioning to more expensive AI chips weighed on the bottom line.
US equity markets rebounded amid a broad-based recovery a day after the Dow and S&P 500 registered their sharpest daily losses since 13 September 2022 - Dow rose +294-points or +0.76%, clawing back some of the previous session’s -1,033.99-points or -2.6% tumble.
US equity markets tumbled for a second straight session after a weak jobs report further stocked fears of a recession – Dow fell -611-points or -1.51%. Intel Corp tumbled -26.06% after the chipmaker announced a wider-than-expected quarterly loss after the close of last Thursday’s (1 August) session and said it would lay off 15% of its staff as part of a massive cost-cutting effort. Amazon.com Inc -8.78% after the e-commerce giant reported weaker-than-anticipated quarterly revenue and issued soft guidance for the current quarter after the close of the previous session.
US equity markets logged sharp declines amid a fresh sell off for the technology sector and following the release of some weak economic data - Dow fell -495-points or -1.21%, paring an earlier decline of ~744 points.
US equity markets after the Federal Reserve left U.S. interest rates unchanged but indicated it will likely begin easing monetary policy in September as inflation cools - Dow added +99-points or +0.24%.
US equity markets retreated, with chip stocks under particular pressure ahead of earnings from a number of large capitalisation technology companies - Dow gained +203-points or +0.50%, with Travelers Companies Inc (up +3.03%), and investment banks Goldman Sachs Group Inc (+2.63%) and JPMorgan Chase & Co (+2.06%) leading the 30-stock index’s advance.
US equity markets settled little changed ahead of a defining week that sees 171 S&P 500 companies post second quarter results (including ten (10) Dow components and four (4) of the so-called ‘Magnificent Seven’ of large capitalisation technology stocks) along with key global central bank meetings and the latest Non Farm payrolls report - Dow slipped -49-points or -0.12%, with Caterpillar Inc (down -1.7%), Intel Corp (-1.66%), 3M Co (-1.57%) and Salesforce Inc (-1.57%) all falling over >1.5%.
US equity markets soared on Friday (26 July) to cap a turbulent week, with the S&P 500 and Nasdaq snapping three session losing streaks as the technology sector recovered, corporate earnings news provided a big boost to several companies and inflation data reinforced expectations that the Federal Reserve will cut interest rates soon - Dow rallied +654-points or +1.64%, American Express Co (up +2.38%), with Travelers Companies Inc (+2.21%), Salesforce Inc (+2.%) and Visa Inc (+2.35%) all rising over >2%.
S&P 500 and Nasdaq Composite retreated for a third straight session amid a fresh rotation out of large cap technology into small capitalisation and value stocks.
US equity markets fell sharply, with the so-called “Magnificent Seven” of large technology companies weighing heavily on the benchmark indices - Dow fell -504-points or -1.25% to 39,853.87, below <40,000 points for the first time in nearly two weeks. Visa Inc (down -4.01%) was the worst performer in the 30-stock index after the payment-technology company reported a slight slowdown in payments volumes during the second quarter after the close of the previous session. Intel Corp (-3.79%) and Microsoft Corp (-3.59%) both fell over >3.5%.
US equity markets settled with modest declines as investors digested a busy corporate earnings calendar and eyed second quarter results from the first of the so-called “Magnificent Seven” of large capitalisation technology stocks after the closing bell - Dow slipped -57-points or -0.14%. Walt Disney Co (down -.39%) was the worst performer in the 30-stock index, while McDonald’s Corp (-2.12%), Nike Inc (-1.95%) and Chevron Corp (-1.85%) were also notable underperformers. Boeing Co (up +4.24%) was the best performing Dow component overnight after receiving an additional airplane order from Qatar Airways.
Technology stocks led a rebound on US equity markets following steep losses last week - Dow added +128-points or +0.32%, with Nike Inc (up +2.97%) and Salesforce Inc (+2.6%) both gaining over >2.5% to be the leading performers in the 30-stock index. The broader S&P500 gained +1.08%, logging its best session since 5 June as more than >77% of index constituents advanced. Information Technology (up +1.96%), Communication Services (+1.21%) and Industrials (+1.07%) all rose over >1% to lead nine of the eleven primary sectors higher. Energy (down -0.72%) and Consumer Staples (-0.04%) were the only primary sectors to settle in the red overnight. Reddit Inc gained +5.3% after the social media company announced partnerships with the NBA, NFL, and other major U.S. sports leagues that will give its users access to official highlights and other content. CrowdStrike Holdings Inc slumped -13.46% to be the worst performer in the S&P 500 for a second session running as the fallout after from an update to the cybersecurity firm's software that caused a global outage in Microsoft Corp’s (-0.74%) cloud services late last week continued.
US equity markets retreated on Friday (19 July) as technology stocks came under fresh pressure and investors digested the impact of a global technology outage - Dow dropped -377-points or -0.93%, extending its decline over the past two sessions to over >900 points or ~2.2%. Intel Corp shed -5.42% to be the worst performer in the 30-stock index on Friday (19 July).
•US equity markets retreated amid fresh weakness for a number of large capitalisation technology companies and as the rally among small capitalisation stocks stalled - Dow dropped -533-points or -1.29%, having logged consecutive record closing highs. Investment banks Goldman Sachs Group Inc and JPMorgan Chase & Co both fell -3.18% to be the worst performers in the 30-stock index overnight. Amazon.com Inc (down -2.22%) and Apple Inc (-2.05%) both fell over >2%.
The Nasdaq Composite and S&P 500 closed sharply lower as chipmakers and large-capitalisation technology companies tumbled amid reports the Biden administration is considering tightening restrictions on exports of semiconductor equipment to China - Dow rose +244-points or +0.59% to 41,198.08, logging a second straight record closing high. UnitedHealth Group Inc rallied +4.45% to be the leading performer in the 30-stock index for a second session running and building on the previous day’s +6.5% gain after the insurer reported a better-than-expected second quarter result. “Magnificent Seven” members Apple Inc (down -2.53%), Amazon.com Inc (-2.64%) and Microsoft Corp (-1.33%) all retreated
US equity markets rallied as the rotation into value stocks, which have underperformed their growth peers and the broader S&P 500, gained momentum amid building expectations of interest rate cuts - Dow rallied +743-points or +1.85% to a fresh record closing high of 40,954.48, booking its largest one-day percentage gain since June 2023, and largest daily point gain since November 2022, according to Dow Jones Market data. The Dow Jones transportation average (up +3.28% at 16,298.98) outperformed the broader indexes, logging its biggest one-day percentage gain since November and reaching its highest closing level since August 2023 as investors increasingly focused on undervalued areas of the market. Caterpillar Inc (up +4.28%) and Boeing Co (+3.87%)
US equity markets opened the new week on a positive footing- Dow gained +211-points or +0.53% to record closing high of 40,211.72 - the first record close for the 30-stock index since 17 May and 20th this year. American Express Co (up +2.25%), Caterpillar Inc (+3.03%) and JPMorgan Chase & Co (+2.49%) all climbed over >2%.The broader S&P500 added +0.28% to 5,631.22, touching a fresh record intra-day peak (5,666.94). Energy (up +1.56%) and Financials (+1.42%) lead six of the eleven primary sectors higher. Utilities (down -2.39%) sat at the foot of the primary sector leaderboard overnight.
US equity markets advanced on Friday (12 July), rebounding from the previous session’s sell-off albeit finished off their best levels of the session that saw all three benchmark indices more than >1% higher - Dow rallied +247-points or +0.62% to 40,000.90, touching a fresh record all time intra-day high of 40,257.24. International Business Machines (IBM) Corp (up +2.53%) and Intel Corp (+2.96%) both rose over >2.5% to be the leading performers in the stock index.
The S&P 500 and Nasdaq snapped a seven-session winning streak and logged their worst single session declines since 30 April as investors digested the latest inflation figures that triggered a rotation out of large capitalization technology stocks - Dow edged +32-points or +0.08% higher, with Home Depot (up +2.79%) the leading performer n the 30-stock index. However, Intel Corp slumped -3.93%, while Amazon.com Inc (down -2.37%) and Apple Inc (-2.32%) and Microsoft Corp (-2.48%) all fell over >2%.
The S&P 500 and Nasdaq extended their respective rallies into a seventh consecutive session, boosted by the continued strong performance of technology stocks and recording a fresh round of record peaks that lifted the S&P 500 above >5,600 for the first time - Dow rose +429-points or +1.09% to 39,721.36, marking the 30-stock index’s best single session advance since 31 May.
The S&P 500 and Nasdaq edged higher to fresh record closing peaks, extending gains that have been fuelled by the strong performance of technology stocks and hopes the Federal Reserve will cut interest rates soon - Dow eased -53-points or -0.13%, with Dow Inc (down -2.31%), Microsoft Corp (-1.44%) and Salesforce Inc (-1.77%) among the key index drags. Intel Corp (up +1.77%) booked a five-session winning streak, while Goldman Sachs Group Inc (+1.72%) also rose over >1.5%. Apple Inc added +0.38% to a fresh record closing high of US$228.68 that lifted the company’s market capitalisation above >US$3.5 trillion. Amazon.com Inc inched +0.03% higher, with founder and executive chair Jeff Bezos selling s further US$863.5M in stock. A filing after the market close last Tuesday (3 July) disclosed the proposed sale of 25M shares (or almost US$5B), which would still leave Mr Bezos owning an ~8.8% stake.
Nike Inc (down -3.16%) was the worst performer in the 30-stock index, while Salesforce Inc (-2.21%) and Visa Inc (-1.46%) were also notable underperformers.
US equity markets rallied on Friday (5 July), lifting both the S&P 500 and Nasdaq to fresh record closing highs as the latest jobs data pointing to a cooling but not collapsing economy, and with the second quarter earnings season kicking off later in the week - Dow added +68-points or +0.17%, with both Apple Inc (up +2.16% to US$226.34) and Microsoft Corp (+1.47% to US$467.56) climbing to fresh record highs. Intel Corp (up +2.53%) and Walmart Inc (+2.64%) both rallied over >2.5%.
US equity markets advanced as Treasury yields retreated, lifting the S&P 500 and Nasdaq to back-to-back record closing highs in an abbreviated trading session ahead of the Independence Day holiday - Dow slipped -24-points or -0.06%, with healthcare stocks trailing the broader market. UnitedHealth Group Inc fell -1.68%, while Merck & Co Inc lost -1.46% and Amgen Inc -0.45%. Salesforce Inc (up +1.86%) was the leading performer in the 30-stock index.
US equity markets rallied, with the S&P 500 and Nasdaq closing above the 5,500 and 18,000 milestones respectively for the first time ever - Dow rose +162-points or +0.41%.The broader S&P500 gained +0.62% to 5,509.01, logging its 32nd record close of 2024. Consumer Discretionary (up +1.81%) and Financials (+1.10%) rose over >1% and led ten of the eleven primary sectors higher. However, Health Care (down -0.40%) extended losses into a sixth straight session, the sector’s longest losing streak since January 2022. Tesla Inc jumped +10.20% to US$231.26 to be the best performer in the S&P 500 for second session running and log it highest close since 10 January after the electric-vehicle giant stronger-than-expected second quarter deliveries. The company delivered 443,956 vehicles globally in the second quarter, a -4.8% decline from the same quarter a year ago, but better than consensus analyst forecasts for the delivery of 436K units. Separately, some analysts are pointing to the launch of the Tesla robotaxi on 8 August as a near term catalyst. Homebuilders were under pressure after Citi downgraded the likes of Lennar Corp (down -1.59%) and D.R. Horton Inc (-1.32%), with analysts citing concerns about a housing market they think may stay sluggish for the rest of the year. Citi analysts said they saw "softness in the data" potentially continuing in the second half of the year, saying that housing permits, starts, sales, and prices have recently come in below expectations.
US equity markets advanced to kick off the second half of 2024, with the Nasdaq climbing to a fresh record high - Dow edged +51-points or +0.13% higher, with Merck & Co Inc (up +3.31%) the leading performer in the 30-stock index. Boeing Co rose +2.58% after announcing a long-awaited deal to reacquire parts supplier Spirit AeroSystems Holdings Inc (+3.35%). UnitedHealth Group Inc (down 2.87%) and Home Depot Inc (-2.34%) were the worst performing Dow components overnight.
US equity markets relinquished early gains that saw both the S&P 500 and Nasdaq touch fresh record intra-day highs to close out the month, quarter and half with a whimper on Friday (28 June) - Dow slipped -45-points or -0.12%. Nike Inc tumbled -19.98% recording its largest single session percentage decline on record after reporting a disappointing fourth quarter result and cutting full year guidance after the close of the previous session that prompted multiple broker downgrades. Boeing Co (down -.27%) will be charged with fraud by the US Justice Department, according to a Bloomberg report that was published over the weekend. The decision comes after the Justice Department said Boeing violated the terms of a 2021 deferred prosecution agreement in May.
US equity markets ended relatively unchanged as investors await fresh inflation data and what comes of the presidential debate scheduled for today- Dow rose +36 points or +0.09% to 39,164. Walgreens Boots Alliance slumped -22.16% after cutting its 2024 profit forecast and announcing plans to close more underperforming US stores. Nike shares were down -6% in extended trading, reporting its slowest annual sales growth in 14 years, excluding the Covid-19 pandemic, citing a slowdown in lifestyle stales, among other factors such as losing market share to start-ups On Running and Hoka.
US equity markets closed with modest gains after a choppy trading session, with investors holding their cards close to their chest ahead of a presidential debate and an inflation report closely watched by Federal Reserve policy makers - Dow rose +16.10 points or +0.04%, to 39,128.26.
The S&P 500 and Nasdaq snapped three session losing streaks as Nvidia Corp (+6.76%) arrested a 3-day slide saw the chip giant enter official correction territory less than a week after hitting a record all time high - Dow dropped -299-points or -0.76%, snapping a five session winning streak and booking its worst single session decline since 30 May. Home Depot Inc fell -3.58% amid a broader sell-off of stocks exposed to the U.S. housing market. Boeing Co lost -2.23% following a Bloomberg report it had altered its offer to reacquire supplier Spirit AeroSystems (-3.96% to US$31.76) from an all-cash to all-stock offer that valued the target at US$35 per share.
US equity markets retreated as last week’s artificial intelligence (AI) and semiconductor sell-off continued amid some tentative signs of a change in market leadership - Dow rose +261-points or +0.67%, with Amgen Inc (up +3.24%), Chevron Corp (+2.60%) and Goldman Sachs Group Inc (+2.65%) all gaining over >2.5%. Apple Inc added +0.31% despite the iPhone maker being charged by the European Union for failing to comply with a new digital-competition law. Meanwhile, The Wall Street Journal reported that Apple has held discussions with Meta Platforms Inc (+0.83%) about potentially integrating Meta’s generative AI model into Apple Intelligence, the company’s AI strategy for iPhones, iPads, and Macs.
US equity markets logged modest declines on Friday (21 June) as semiconductor stocks retreated for a second straight session - Dow inched +16-points or +0.04% higher, with Intel Corp (up +1.53%) and Nike Inc (+1.68%) rising over >1.5%. Boeing Co edged +0.15% higher amid reports it was nearing a deal to acquire supplier Spirit AeroSystems (+6%). Apple Inc dropped -1.04%, falling in the final minutes of the session - possibly a byproduct of Friday night AEST’s triple witching (the simultaneous expiration of stock options, stock index futures, and stock index options contracts) or a sizeable rebalancing of the US$70B Technology Select Sector SPDR Fund. Goldman Sachs Group Inc (down -1.72%) and JPMorgan Chase & Co (-1.19%) were both under pressure after the U.S. Federal Deposit Insurance Corp (FDIC) and the Federal Reserve Board on Friday (21 June) said they have found “shortcomings” in the so-called living wills of four of the eight largest U.S. banks.
US equity markets mixed after resuming trading following the Juneteenth holiday, with semiconductor stocks weighing on the Nasdaq - Dow gained +300-points or +0.77%. Salesforce Inc (up +4.31%) and Chevron Corp (+2.2%) were the leading performers in the 30-stock index. Amazon.com Inc +1.8% as Anthropic, the OpenAI competitor it backs, unveiled a more advanced version of its Claude chatbot.
US equity and bond markets were CLOSED overnight AEST in observance of Juneteenth National Independence Day.In US economic data, the National Association of Home Builders (NAHB) Housing Market Index for June. A preliminary reading of Building Permits for May, the Philadelphia Fed Manufacturing Index for June, and the latest weekly jobless claims figures are released tonight AEST.
The S&P 500 and Nasdaq booked fresh record closing highs ahead of the Juneteenth public holiday. The Dow edged +57 points or +0.15% higher. Goldman Sachs Group Inc (up +1.61%), Verizon Communications Inc (+1.57%), Home Depot Inc (+1.25%) and JPMorgan Chase & Co (+1.04%) all rising over >1%. Boeing Co lost -1.91% as outgoing CEO David Calhoun called the company culture “less than perfect” in Senate testimony related to the jet maker’s manufacturing and safety standards.
US equity markets rallied, buoyed by fresh gains for the technology sector - Dow rose +189-points or +0.49% to snap a four session losing streak, with Apple Inc (up +1.97%) the leading performer in the 30-stock index after scrapping its “buy now, pay later” service, which it launched in the US only last year. The tech giant says it is pivoting to a new instalment loans service offered through third-party credit and debit cards. Merck & Co rose over >1% in after-hours trading (having declined -0.94% in the regular session) after receiving US regulatory approval for its next-generation vaccine (Capvaxive) to protect adults from pneumococcal disease, which is set to challenge Pfizer Inc’s (down -2%) blockbuster Prevnar shot.
US equity markets settled mixed on Friday (14 June) to close out a big week of inflation updates and Federal Reserve interest rate forecasts, with the technology sector powering to fresh records - Dow fell for a fourth straight session, easing -58-points or -0.15%. Caterpillar Inc (down -1.50%) and Dow Inc (-1.86%) both fell 1.5%+ to be the worst performers in the 30-stock index on Friday (14 June).
The S&P 500 and Nasdaq posted record closing highs for a third straight session, buoyed by a softer-than-expected consumer inflation reading for May and signs that Federal Reserve officials could start to cut interest rates this year - Dow slipped -35-points or -0.09%. Apple Inc gained +2.86%, logging a record closing high (US$213.07) for a second straight session and settled US$12B shy of Microsoft Corp (+1.94%) in market capitalisation terms. Caterpillar Inc added +0.43% the board of the manufacturer of construction and mining equipment approved an additional US$20B in share buybacks and raised its dividend (by +US$0.11c to US$1.41).
The S&P 500 and Nasdaq shrugged off earlier session declines to log fresh record intra-day and closing highs ahead of a double feature of market-moving economic events tonight AEST – namely, inflation figures and the Federal Reserve’s latest monetary policy pronouncements - Dow eased -121-points or -0.31%, with American Express Co (down -3.4%) the worst performer in the 30-stock index. Boeing Co fell -2.43% after the jet maker reported deliveries and orders tumbled in May. The company received just one new order for four jets last month, compared to seven planes across three orders in April. Boeing delivered 24 planes last month, down from 50 in May 2023. Nineteen of those aircraft were 737 MAX jets, three more than in April but 16 fewer than in the prior year. The company’s backlog declined to 5,625 in May from 5,646 in April. Goldman Sachs Group Inc (-2.05%) and JPMorgan Chase & Co (-2.63%) fell over >2%.
US equity markets ticked higher, with the S&P 500 and Nasdaq logging fresh record closing highs ahead of US inflation figures and the Federal Reserve’s latest monetary policy decision later in the week - Dow added +69-points or +0.18%. Walmart Inc gained +1.64%, buoyed by an upgrade from analysts at Bank of America, who cited the potential benefits from “a new wave of tech diffusion.” Apple Inc shed -1.91% after the company’s latest Worldwide Developers Conference (WWDC) kicked off overnight (running through until Friday night AEST (14 June)) with a with a demonstration of Apple Intelligence, the tech giant's highly anticipated custom artificial intelligence (AI) system built into the newest iPhone, iPad, and Mac operating systems.
US equity markets settled little changed ahead of the release of the key non-farm payrolls figures tonight AEST - Dow added +79-points or +0.20%, with Amazon.com Inc (up +2.05%) and Salesforce Inc (+2.63%) rising over >2%. The broader S&P500 dipped -0.02%, with Utilities (1.03%), Industrials (-0.60%) and Information Technology (-0.47%) settling in the red. Consumer Discretionary (up +0.97%) and Energy (+0.55%) both climbed over >0.50%. PayPal Inc rallied +5.49%, logging its largest single-day percentage increase since 19 January, after striking a bullish tone at an investor conference and as investors become more positive on the company’s new Fastline product. Uber Technologies Inc gained +4.68% after competitor Lyft Inc (+1.03%) offered an optimistic forecast for future bookings at its first investor day.
US equity markets rallied, with the S&P 500 and Nasdaq hitting fresh record highs after several pieces of economic data pointed to a slowing U.S. economy, raising hopes for interest rate cuts later this year - Dow added +96-points or +0.25%. Intel Corp rose +2.50% after announcing after the close of the previous session that it would sell a 49% stake in Irish manufacturing venture Fab34 to Apollo Global Management for US$11B. The investment is part of Intel's "Smart Capital" strategy, its plan to revitalize and expand its supply chain without putting too much strain on its own balance sheet by bringing in outside investments. Intel will retain a 51% controlling stake in the Fab 34 facility.
Stephen Young, Executive Director and Managing Director of Tasmea (ASX:TEA) recently spoke at the May 2024 Morgans Business Breakfast. TEA is a skilled services group consisting of eighteen wholly integrated subsidiaries. Tasmea provide essential maintenance, engineering, specialised project services and solutions across the following service streams: mining & resources, oil & gas, waste & water, power & renewable energy and defence & infrastructure industries. These 18 businesses comprise the Tasmea Group, which collectively provides specialist maintenance services including essential shutdown, programmed maintenance, emergency breakdown and sustaining capital upgrade services to asset and infrastructure owners of fixed plant operating in essential Australian industries.
US equity markets edged higher after fresh job openings data suggested the labour market continued to cool in April - Dow gained +140-points or +0.36%. Cisco Systems Inc rose +1.65% after it launched a US$1B fund to invest in artificial intelligence (AI) startups. Intel Corp fell -0.86% slipped 0.9% after unveiling its next-generation Xeon 6 AI data centre chips at the Computex trade fair in Taipei alongside other leading chipmakers. The next-generation chips come in two types: a more powerful processor to handle the workload of larger AI infrastructure requirements, and an efficiency model, which the company has positioned as a replacement for earlier-generation chips.
US equity markets advanced to cap another strong month - Dow rallied +575-points or +1.51%. Salesforce Inc rebounded +7.54% after slumping almost 20% a day earlier after the cloud client relationship management software group provided weaker-than-expected fiscal second quarter and full year guidance. Consumer brands that have been struggling with sticky inflation and under pressure consumers also traded strongly, with McDonald’s Corp up +2.71%, Home Depot Inc +1.73% and Coca-Cola Co +1.55%.
US equity markets retreated, led lower by declines in rate-sensitive sectors as concerns around the timing and the scale of the Federal Reserve's interest rate cuts pushed Treasury yields higher and pressured risk assets - Dow dropped -411-points or -1.06%. Unitedhealth Group Inc dropped -3.76% after Chief Executive Officer (CEO) Andrew Witty said at the Bernstein 40th Annual Strategic Decisions Conference in New York that he expected some “disturbance” in the company’s Medicaid profitability models from the resumption of eligibility reviews following the lifting of the COVID-19 emergency declaration.
US equity markets resumed trading on a mixed note following the Memorial Day long weekend, although Nvidia Corp continued to power ahead and push the Nasdaq to fresh record highs - Dow fell -217-points or -0.55%, paring an earlier decline of over >300-points. Healthcare names led the 30-stock index lower, with Merck & Co down -2.63%, Amgen Inc -1.85% and Johnson & Johnson -1.76%. Just seven stocks in the Dow finished in positive territory. Chevron Corp rose +0.82% after its US$53B acquisition of Hess Corporation (+0.44%) was approved by the target’s shareholders.
US equity markets and bond markets were CLOSED overnight for Memorial Day. In US economic data, the S&P Core Logic Case-Shiller Home Price for March, the Federal Housing Finance Agency (FHFA) House Price Index for March, the Conference Board’s Consumer Confidence survey for May, and the Dallas Fed Manufacturing Index for May are released tonight AEST.
US equity markets advanced ahead of the Memorial Day long weekend, with the Nvidia Corp (up 2.57%) lifting technology-centric Nasdaq to a fresh record peak - Dow inched +4-points or +0.01% higher, with Intel Corp (up +2.13%) and Apple Inc (+1.66%) the leading performers. Salesforce Inc fell -2.25% after enterprise software peer Workday Inc (down -15.33%) forecast softer-than-expected current-quarter subscription revenue.
US equity markets retreated, reversing earlier gains as the latest ‘flash’ purchasing managers indices (PMIs) fuelled fresh interest rate concerns and overshadowed a renewed rally for chipmaking giant Nvidia Corp - Dow dropped -606-points or -1.53%, marking the largest daily percentage decline since 22 March and with all of the 30-stock index’s components settling in the red. Boeing Co shed -7.55% after Chief Financial Officer (CFO) Brian West addressed an investor conference in New York and warned investors that the company’s second-quarter cash burn could match or be worse than the first quarter’s US$3.9B burn and that production struggles are likely to continue in the current quarter. Moreover, Boeing is unlikely to see positive cash flow this year. The comments came after Boeing undertook a US$10B corporate-debt issuance in late April. Intel Corp fell -426%, while Johnson & Johnson (-2.48%), McDonald’s Corp (-2.95%) and Walt Disney Co (-2.29%) all fell over >2%.
US equity markets ticked higher as investors digested results from retailers and eyed the released of semi-conductor giant Nvidia Corp’s (up +0.64%) first quarter result after the closing bell tonight AEST - Dow edged +66-points or +0.17% higher. International Business Machines (IBM) Corp rose +2.09%after it said it was expanding several artificial intelligence (AI) partnerships with companies including Meta Platforms Inc (down -0.90%) and Salesforce Inc (-1.15%). Microsoft Corp added +0.87% to US$429.04 to close just cents shy of a record high after it unveiled new tools to develop AI software during the first day of its Microsoft Build developer conference.
US equity markets settled with modest declines a day after all three (3) benchmark indices logged record closing highs - Dow slipped -39-points or -0.10% to 39,869.38, briefly topping >40,000 for the time earlier in the session.American Express Co (-0.16%) and Amazon.com Inc (-1.27%) are the two top performing Dow stocks so far this year, up +28.81% and +20.86% respectively year-to-date. However, given the Dow is a price-weighted average it’s Caterpillar Inc (down -2.59%) and Goldman Sach Group Inc (-0.34%) that have been the biggest points contributors to the 30-stock index this year to date.
All three (3) benchmark US equity indices rallied to record highs, with investor sentiment buoyed by the first cooler-than-expected consumer inflation print in four months accompanied by softer retail sales in April - Dow climbed +350-points or +0.88% to 39,908.00, settling with its 18th record close of 2024. Salesforce Inc (up +3.88%) was the leading performer in the 30-stock index, while Amgen Inc (+2.45%), Home Depot Inc (+2.4%) and Merck & Co Inc (+2.39%) climbed ~2.5%. On the downside, Walt Disney Co fell 2.45% after Chief Executive Officer (CEO) Bob Iger said the company had invested too much in its streaming service and was taking steps to address enduring profitability challenges. Boeing Co fell 2.09% after the Department of Justice said the jet maker had violated a 2021 settlement stemming from two fatal 737 crashes.
US equity markets advanced, shrugging off stronger-than-expected wholesale inflation data and with investors’ focus now turning to the latest consumer price inflation figures tonight AEST - Dow rose +127-points or +0.32%. Boeing Co rose +1.30% despite delivering fewer jets in April amid quality problems that forced a slowdown in production. The company reported that it shipped 24 jets in April (including 16 737 MAX jets), down from a total of 29 jets in March (including 24 MAX jets). In April 2023, Boeing delivered 26 jets, including 17 MAX jets. Thus far in 2024, Boeing has delivered 107 jets, including 82 MAX jets. That compares with 156 jets in the first four months of 2023, including 128 MAX jets. Intel Corp (up +1.77%), American Express Co (+1.21%) and JP Morgan Chase & Co (+1.4%) also all rose over >1%.
US equity markets mixed following a session absent any major news or data, and with investors eyeing the latest round of inflation figures - Dow eased -81-points or -0.21%, snapping an eight session winning streak. Intel Corp rose +2.21% after The Wall Street Journal reported that the company is in talks with Apollo Global Management about providing US$11B in funds to help the chipmaker build a plant in Ireland.
US equity markets advanced although investor sentiment was kept in check after consumer sentiment data (including inflation expectations) deteriorated and ahead of inflation data later this week - Dow rose +125-points or +0.32%, booking an eighth consecutive session advance and best weekly performance of 2024 to date. Goldman Sachs Group Inc settled -0.18% lower after touching a record intra-day high of US$458.75. The broader S&P500 added +0.16%, with Consumer Staples (up +0.64%), Information Technology (+0.48%) and Financials (+0.46%) the leading primary sector performers on Friday (10 May). Consumer Discretionary (down -0.61%) and Energy (-0.55%) were the laggards. The Nasdaq dipped -0.03%. The small capitalisation Russell 2000 lost -0.67%.
US equity markets advanced as the latest weekly jobless claims figures fuelled fresh optimism around Federal Reserve interest rate cuts - Dow rallied +331-points or +0.85% to 39,387.76 to book its seventh consecutive session advance and highest close since 1 April. The 30-stock index also settled within 1.1% of its 28 March record closing high (39,807.37). Home Depot Inc (up +2.54%) and Caterpillar Inc (+2.11%) climbed over >2% to be the leading index components overnight.
US equity markets were mixed following a subdued session - Dow sealed its sixth consecutive session advance, rising +172-points or +0.44% to 39,056.39 to book its longest winning streak since the period that ended on 19 December (when the index rose for nine straight trading days). It also marked the first time that the 30-stock index closed above >39,000 since 3 April.
Morgans Chief Economist Michael Knox says that for the RBA to get inflation down to 2.5%, unemployment must rise above 4.5% in Australia.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our latest articles: https://morgans.com.au/insightsOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets settled with modest gains overnight - Dow edged +32-points or +0.08%, recording its fifth consecutive session gain and longest winning streak since 19 December last year (that has lifted the 30-stock index +2.8%). Apple Inc (up +0.38%) hosted a product launch event overnight called ‘Let Loose’, unveiling an iPad Pro powered by its new M4 chip capable of running artificial intelligence (AI) applications locally. Apple called the latest iPad Pro an "outrageously powerful device for artificial intelligence," that with the M4 chip features Apple’s "most powerful Neural Engine ever." Apple said the "Neural Engine in M4 is more powerful than any neural processing unit in any AI PC today."
US equity markets advanced, building on last Friday’s (3 May) strong gains - Dow extended gains into a fourth straight session, up +177 points or +0.46%. Walt Disney Co (up +2.47%) was the leading performer in the 30-stock index ahead of the release of its fiscal second quarter result tonight AEST.
Morgans Chief Economist Michael Knox says that though the FED are easing quantitative tightening, US consumer demand is still too healthy to allow rate cuts.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets rallied on Friday (3 May) after the latest jobs data printed weaker-than-expected for the first time in four months, with all three benchmark indices rising over >1% on the same day for the first time since 22 February - Dow rallied +450-points or +1.18%. Apple Inc gained +5.98%, with the iPhone maker logging its best single session gain since 30 November, 2022 after unveiling stronger-than-expected fiscal second quarter result after the close of the previous session that included a record US$110B share buyback programme. Amgen Inc +11.82% - its best single session advance since 2009 - after the biopharmaceutical giant posted quarterly earnings that came in ahead of expectations and provided a positive update about trials of its injectable weight-loss drug MariTide after the close of last Thursday’s (2 May) session.
US equity markets retreated overnight, reversing earlier gains as investors digested the latest monetary policy announcements from the Federal Reserve - Dow added +87-points or +0.2%, unwinding an earlier rally of over >500-points. Amazon.com Inc climbed +2.17% after reporting better-than-expected first-quarter earnings after the close of the previous session, underpinned by growth in its cloud computing and advertising businesses. Johnson & Johnson rose +4.56% after proposing a US$6.5B settlement that would resolve nearly all outstanding talc ovarian cancer lawsuits it faces.
Our Model of US GDP says steady growth just below trend. Just where the Fed needs it to keep US Inflation falling.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
A slowing economy and rising unemployment pushes down interest rates.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated, extending losses in the final hour of trading as wage growth data dealt another blow to the Federal Reserve in its fight against inflation ahead of the central bank concluding its two-day monetary policy meeting tomorrow morning AEST - Dow fell -570-points or -1.49%, the largest one-day percentage decline for the 30-stock index since March 22, 2023. Economic bellwether Caterpillar Inc dropped -4.35%, while Boeing Co (-3.26%), Chevron Corp (-3.04%) and Microsoft Corp (-3.21%) fell over >3%. Walmart Inc fell -1.48% after announcing it was abandoning its push into low-cost health centres amid mounting costs.
US equity markets advanced, building on last week’s rally ahead of the busiest week on the US first quarter earnings calendar and employment data and the Federal Reserve’s latest monetary policy meeting - Dow added +146-points or +0.38%. Boeing Co rose +3.75% amid reports it had tapped the bond market to raise US$10B after last week reporting it burned through nearly $4 billion in cash in the first quarter.
US equity markets rallied on Friday (26 April), shrugging off fresh evidence of sticky inflation as investors cheered strong earnings from technology majors - Dow rose+153-points or +0.4%. Amazon.com Inc (up +3.43%) was the leading performer in the 30-stock index, buoyed by strong first quarter results from artificial intelligence (AI) hyperscaler peers, including Microsoft Corp (+1.82%). Goldman Sachs Group Inc rose +1.79% to US$427.57, touched a record all-time high of US$428.53.
US equity markets retreated, paring earlier steeper losses as investors digested the latest economic growth data and another swathe of major corporate earnings releases - Dow fell -375-points or 0.98% (after slipping -43-points or 0.11% on Wednesday (24 April)). International Business Machines (IBM) Corp shed -8.25% after the hardware, software and consulting provider reported softer-than-expected first quarter revenue (up +1.5% year-on-year at US$14.46B versus consensus US$14.55B) after the close of the previous session and confirmed earlier media speculation in announcing that it was acquiring cloud software maker HashiCorp Inc (up +4.49% at US$32.82) in a deal with an enterprise value of US$6.4B (paying US$35 per share).
US equity markets rallied as investors poured over another busy corporate earnings calendar - Dow extended gains into a fourth consecutive session, rising +264-points or +0.69% to book its longest winning streak since 21 March. Verizon Communications Inc rebounded +2.85% after dropping -4.67% a day earlier following the release of the telecommunications giant’s first quarter result. American Express Co gained +2.56%.
US equity markets rebounded to open a busy week headlined by a host of major corporate earnings releases, and gross domestic product (GDP) growth and inflation data - Dow gained +254-points or +0.67%, extending its advance into a third consecutive session. Goldman Sachs Group Inc (up +3.3%) was the leading performer in the 30-stock index, with just five components settling in the red. Salesforce Inc rose +1.27% following reports that talks to acquire data management firm Informatica (down -10.51%) had broken down. News of the possible acquisition sent Salesforce’s stock tumbling last week.
US equity markets retreated, with large capitalisation technology stocks under particular pressure and with traders continuing to assess the latest developments in the Middle East and quarterly earnings - Dow gained +211-points or +0.56%.
The S&P 500 and Nasdaq fell for a fifth straight session as a slew of earnings reports lifted pockets of the market, including insurers and airlines, while technology stocks underperformed - Dow edged +22-points or +0.06% higher, with UnitedHealth Group (up +2.96%) the leading performer in the 30-stock index for a third straight session, getting a further boost after health insurance peer Elevance Health Inc (+3.19%) raised its full-year earnings forecast after topping first quarter earnings and revenue estimates thanks to premium rate hikes. However, Microsoft Corp (down -1.84%), Intel Corp (-1.79%) and Salesforce Inc (--1.59%) all fell over >1.5.
Morgans Chief Economist Michael Knox gives an update on the Fed Funds and the RBA Cash Rate. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated, with both the S&P 500 and Nasdaq notching their first four-day losing streaks since January and hitting 2-month lows - Dow eased -46-points or -0.12%, unwinding an earlier rally of +238-points and logging its seventh negative session in the past eight. UnitedHealth Group Inc rose +2.15%, leading the gainers list for the 30-stock index for a second day after posting a stronger-than-expected first quarter result on Tuesday (16 April). Goldman Sachs Group Inc (up +1.78%) and Nike Inc (+1.55%) both rose over >1.5%.
US equity markets settled mostly in the red following a choppy session as markets continue to adjust interest rate expectations - Dow added +64-points or +0.17%. Boeing Co (up +1.63%) snapped an 11-session losing streak -the stock’s equal longest stretch of consecutive declines.
US equity markets retreated as a fresh rise in bond yields and ongoing concerns around instability in the Middle East overshadowed a strong first quarter result from investment banking major Goldman Sachs - Dow fell -248-points or -0.65%, relinquishing an earlier rally of over >1% to log a sixth straight session decline - the longest losing streak since June. Five (5) Dow components touched lows not seen in more than a year – Biogen Inc (down -0.70%), Boeing Co (-1.02%), Brown-Forman Corp (-0.08%), Verisign Inc (-1.20%) and Walgreens Boots Alliance Inc (-1.12%).
US equity markets retreated after major U.S. bank results failed to impress, capping a week marked by market-moving inflation data, evolving expectations for U.S. Federal Reserve policy, and escalating geopolitical tensions - Dow shed -476-points or -1.24% after falling as much as -582-points or -1.51% earlier in the session. Chevron Corp -1.81% after Hess, which it has agreed to acquire, warned arbitration with ExxonMobil over Guyanese oilfield assets could push the acquisition into 2025.
Strong corporate profits drive corporate yields lower and stock prices higher.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets advanced, rebounding from the previous session’s sell-off that was triggered by a hotter than expected US consumer price inflation reading for March - Dow dipped -2-points or -0.01%.
US equity markets retreated following a stronger-than-expected March inflation report that prompted federal-funds futures markets to quickly price out rate cuts for the Federal Reserve’s June and July monetary policy meetings - Dow shed -422points or -1.09%, with Home Depot Inc (down -3.00%) and Intel Corp (-2.95%) falling ~3%. Boeing Co fell -1.96% a day after the New York Times reported a whistleblower raised concerns about the safety of its Dreamliner 787s. On the positive side of the ledger, Walmart Inc (up +1.39%) was the strongest performer in the 30-stock index, while Chevron Corp (+0.41%) logged a record closing high (US$162.67).
US equity markets edged higher, rebounding late in the session ahead of key inflation figures for March tonight AEST - Dow dipped -9-points or -0.02%. Boeing Co (down -1.89%) fell for a seventh straight session – its longest losing streak since 3 September 2023 - after the company reported that it delivered 83 commercial airplanes in the first quarter, which was its lowest quarterly total in nearly three years and below consensus analyst forecasts for 105 planes. It marked a steep decline from the 157 units it delivered in the fourth quarter and the 130 units it delivered in the first quarter of 2023. Meanwhile, a New York Times report said the US aviation regulator was investigating whistleblower claims about safety issues in the production of Boeing’s 787 Dreamliner plane. The company said the claims were “inaccurate”. Intel Corp rose +0.92% after unveiling its latest artificial intelligence (AI) chip, called Gaudi 3. Intel says the new Gaudi 3 chip is over twice as power-efficient as Nvidia Corp’s H100 GPU, and can run AI models one-and-a-half times faster than its competitor’s product. It also comes in different configurations like a bundle of eight Gaudi 3 chips on one motherboard or a card that can slot into existing systems.
US equity markets settled little changed in a subdued start to the week as investors eye key inflation figures on Wednesday night AEST (10 April) - Dow dipped -11-points or -0.03%. Nike Inc (up +1.31%) and Home Depot Inc (+1.17%) both rose over >1%. However, Intel Corp fell -1.89% as R2 Semiconductor filed a patent infringement lawsuit against its French unit and two of its customers, Dell Technologies Inc (-4.20%) and Hewlett-Packard Enterprise Co (up +0.78%), in a case that could see the technology giants blocked from importing certain microchips to the country.
US equity markets climbed on Friday (5 April) after a strong jobs report reinforced the view that the economy remains healthy even as it suggested the Federal Reserve could delay cutting interest rates - Dow rose +307-points or +0.80%. Amazon.com Inc climbed +2.82% as a Wedbush survey showed nearly 60% of respondents intended to increase their spending on the platform in 2024, the most of any retailer in the survey. However, Intel Corp fell -2.57%, extending losses into a fifth consecutive session as investors continued to digest its disappointing foundry business financials.
US equity markets fell sharply amid fresh concerns Federal Reserve's ability to cut interest rates this year against a backdrop of inflationary pressures including climbing oil prices, and ahead of key jobs figures tonight AEST - Dow down -530-points or -1.35%, extending its decline into a fourth straight session and marking the index’s worst daily percentage drop since 22 March, 2023. Only two of the index’s 30 components settled in positive territory, with Chevron Corp up +0.16% and +%. Boeing Co fell -0.88% following reports it was in talks with competitor Airbus SE to divide the operations of contractor Spirit AeroSystems Holdings Inc (+0.47%). Walt Disney Co (down -1.59%) Chief Executive Officer (CEO) Bob Iger aid Disney+ will be cracking down on password sharing in June, following Netflix Inc's (down -2.05%) lead to boost streaming service profitability.
Inflation tells us why cash rates are where they are, and unemployment tells us where cash rates will be.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets settled little changed following a slew of mixed economic data - Dow slipped -43-points or -0.1%, unwinding an earlier rise of over >135-points to log a third consecutive session decline. Walt Disney Co fell -3.13% after shareholders re-elected all 12 of the entertainment giant's directors at the annual shareholder meeting overnight, dealing activist investor Nelson Peltz defeat in his months-long campaign to claim spots on the board for himself and former chief financial officer Jay Rasulo. Intel Corp tumbled -8.22% as analysts and investors mulled yesterday’s announcement that its foundry business recorded a $7 billion operating loss in 2023. However, Amazon.com Inc rose +0.95% after it said it would lay off hundreds of employees in its Amazon Web Services unit.
US equity markets extended their lacklustre start to the new quarter, with the Dow and S&P 500 logging their worst single session performance since 5 March - Dow shed -397-points or -1.00% after falling over >500-points earlier in the session. UnitedHealth Group slumped -6.44% after the government finalised a January proposal to raise payments to Medicare Advantage plans by 3.7% in 2025, a modest increase that analysts expect will crimp insurers’ profits. Honeywell International Inc fell -0.88% amid a report from Bloomberg that the industrial conglomerate was exploring a sale of its personal protective equipment unit.
This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Find out more about Data Zoo - https://www.datazoo.com/Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
US equity markets resumed trading following the Good Friday holiday, opening the new quarter on a subdued note following positive manufacturing data that lifted Treasury yields – Dow fell -241-points or -0.60%, marking the sharpest single session decline for the 30-stock index since 22 March.
US equity markets rallied, logging a broad advance in the final hour of the session - Dow rallied +478-points or +1.22%, and is on pace for its best first quarter gain since 2021. Merck & Co rallied +4.96% to be the leading component in the 30-stock index a day after the U.S. Food and Drug Administration (FDA) approved its drug (which will be marketed as Winrevair) to treat a rare, progressive and life-threatening lung condition called pulmonary arterial hypertension.
Morgans Chief Economist Michael Knox uses the Chicago Fed National Activity Indicator to model the US economy and explain why there is no incoming US Recession. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Thank you Mr Malcolm Deane, Chief Executive Officer and Managing Director of ALS, for presenting at our latest Morgans Business Breakfast.ALS's analytical testing origins date back to 1976 in Brisbane, with the establishment of a small geochemistry laboratory. Since then, ALS has expanded its services to cover a wide range of industrial and consumer facing industries, servicing over 50 countries through 300 locations worldwide.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Following the Federal Reserve's latest two-day monetary policy meeting, Morgans Chief Economist Michael Knox says, "yes the FED rates will fall, but only so far."Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated, with investors eyeing key inflation figures on Friday night AEST (29 March) - Dow slipped -31-points or -0.08%. Boeing Co fell 2.04% as credit rating agency Moody’s said it was considering downgrading some of the jet maker’s debt. Johnson & Johnson added +0.35% amid reports it was in talks to acquire medical device maker Shockwave Medical Inc (+10.04%). Visa Inc slipped -0.22% as it agreed to lower swipe fees to settle a legal battle it and peer Mastercard (up +0.16%) have fought with retailers for decades.
European bourses settled little changed, with gains for the Oil and Gas sector (up +0.9%) offset by decline for media stocks (down -0.9%) to leave the pan-European Stoxx 600 index (which includes UK equities) just +0.04% higher. Goldman Sachs raised its 2024 year-end target for the Stoxx 600 to 540 from 510, citing possible improvement in economic growth and monetary policy easing across central banks. Germany's DAX gained +0.30%. Delivery Hero SE added +0.39%, recovering from an earlier decline after the company announced that Chief Financial Officer (CFO) Emmanuel Thomassin will depart at the end of September 2024 after a decade in the role. France's CAC flat.
US equity markets were mostly weaker on Friday (22 March) but capped their biggest weekly advance in three months - Dow fell -305-points or -0.77%. Nike Inc sank -6.90% after the world's largest sportswear maker warned that its revenue in the first half of fiscal 2025 would shrink by a low-single-digit percentage, as it scales back on franchises to save costs. However, FedEx Corp rallied +7.35% after the economic bellwether raised its 2024 guidance and said it would continue to cut costs and trim its spending for the year after the close of the previous session.
The benchmark US equity indices rallied to fresh all-time highs after the Federal Reserve signaled that it remains on track to lower interest rates three times this year - Dow rallied +401-points or +1.03% to 39,512.13. Boeing Co gained +3.67% to be the leading performer in the 30-stock index, while American Express Co (+2.81%) and 3M Co (+2.65%) climbed over >2.5%.
Following the RBA's recent decision to hold interest rates, RBA Governor Michelle Bullock said, "where we are now is where we need to be." Chief Economist Michael Knox gives his comments on this saying that the RBA are giving us stability for the near future.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets advanced as investors eyed the conclusion of the Federal Reserve’s latest two-day monetary policy meeting tomorrow morning AEST (21 March) - Dow rallied +320-points or +0.83%, booking its largest one-day point and percentage gains since 22 February. Home Depot Inc (up +2.02%) was the leading performed in the 30-stock index.
US equity markets advanced despite Treasury yields hitting three week highs ahead of a busy week of key global central bank meetings - Dow added +76-points or +0.20%, with Salesforce Inc (up +2.1%) and Walt Disney Co (+1.7%) rising over >1.5 to be the leading performers in the 30-stock index.
US equity markets retreated on Friday (15 March), with mega capitalisation technology names a key drag and with investors eyeing key central bank meetings this week - Dow fell-191-points or -0.49%, with Salesforce Inc (down -2.96%) and Amazon.com Inc (-2.42%) leading losses in the 30-stock index. Microsoft Corp fell -2.07% a day after closing at a record high. McDonald’s Corp fell -0.92% after reporting system outages worldwide that caused the temporary closure of some restaurants.
US equity markets retreated as stronger-than-expected producer prices undermined an early rally, and with some major chipmakers recording fresh declines - Dow eased -138-points or -0.35%, with Amgen Inc (down -1.61%), Honeywell International (-1.69%), International Business Machines (IBM) Corp (-1.66%) and JPMorgan Chase & Co (-1.78%) all falling over >1.5%.
US equity markets mostly weaker amid selling of chipmakers and ahead of wholesale inflation data tonight AEST - Dow added +38-points or +0.10%, paring an earlier rally of almost +200-points. Intel Corp dropped -4.44% after Bloomberg reported that the Pentagon had pulled out of a plan to spend as much as US$2.5B on a chip grant to the company. McDonald’s Corp -3.89% after the chief financial officer (CFO) said the fast-food giant's international sales could fall sequentially in the current quarter, pressured by the conflict in the Middle East and demand weakness in China.
US equity markets rallied despite mildly hotter-than-expected inflation figures - Dow rose +236-points or +0.61%. International Business Machines (IBM) Corp rose +3.16% following reports that it had notified employees in its marketing and communications division that it’s making cuts, becoming the latest large technology company to trim its payroll. Last year, IBM Chief Executive Arvind Krishna said the company was “massively upskilling all of our employees on AI [artificial intelligence]” as it replaces nearly 8,000 jobs with AI. 3M Co (up +4.97%), Microsoft Corp (+2.66%), Amazon.com Inc (1.99%) and Walmart Inc (+1.24%) also traded strongly.
US equity markets opened the new trading week mixed amid subdued trading ahead of key inflation figures tonight AEST - Dow added +47-points or +0.10%. Boeing Co fell -3.02% after The Wall Street Journal reported over the weekend the Justice Department has opened a criminal investigation into the Boeing 737 MAX jet that experienced a blowout on an Alaska Airlines flight in early January.
US equity markets retreated but not before both the S&P500 and Nasdaq touched fresh intra-day record peaks - Dow eased -68-points or -0.18%. Apple Inc rose +1.02%, snapping a seven session losing streak (its longest losing streak since early 2022). Meanwhile, the Department of Justice has launched a criminal investigation into the Boeing Co (down -2.24%) jetliner blowout that left a gaping hole on an Alaska Air Group Inc (-1.85%) plane on 5 January, the Wall Street Journal reported on Saturday (10 March).
The Morgans Network was joined by Karen Jorritsma, Managing Director and Head of Equities at RBC Capital Markets on International Women's Day 2024. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Senior Analyst Nick Harris gives a wrap up of our stocks under coverage in the Technology, Media and Gaming sectors, following this past earning season. February 2024 results were largely in line with expectations. Services & Classified EPS forecasts were reduced by 1-2%, gaming EPS forecasts lifted by 1-2%, free cash flow for larger FCF names was largely unchanged while small cap FCF forecasts were reduced. Follow all of the Morgans Reporting Season coverage here - https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets rallied, lifting both the S&P500 and Nasdaq back to record highs - Dow rose +130-points or +0.34%.
Morgans Analysts Alexander Mees and Emily Porter give a wrap of the Consumer Discretionary sector, following this past February Reporting Season. Investors became more positive towards the consumer discretionary sector over the course of reporting season. The 1H24 earnings performance of the stocks we cover generally exceeded expectations, leading us to increase our full year EPS estimates by 2%. See our full Reporting Season Wrap here - https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets advanced but trimmed gains in the closing hour of trading as investors digested Federal Reserve Chair Jerome Powell’s first day of congressional testimony - Dow added +76-points or +0.20%.
Morgans Equity Strategist Tom Sartor runs through our Reporting Season review with Australian corporates again shrugging another reporting test, navigating slowing demand and higher interest rates to post respectable half-year results in February.See our full Reporting Season Wrap here - www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Technology stocks led declines on US equity markets overnight, with investors also eyeing Federal Reserve Chair Jerome Powell’s congressional testimony tonight AEST and labour market data later in the week - Dow fell -405-points or -1.04%. Apple fell -2.84% after a report by Counterpoint Research reported that the company sold 24% fewer iPhones in in China in the first six weeks of 2024 versus a year earlier. Overall smartphone sales declined 7% in the period, though sales for rival firm Huawei jumped 64%, according to the report. Apple is still rapidly losing market share in China, a country that also serves as a manufacturing base for the company, after Beijing last year banned government officials from using Apple phones. In another sign of weakness, Foxconn (or Hon Hai Precision Industry Co., Ltd), the Taiwanese company that assembles iPhones for Apple, said on Tuesday (5 March) that February sales fell -12% from a year earlier. Meanwhile, Intel Corp (down -5.37%) and Salesforce Inc (-5.05%) both declined over >5% to be the worst performers in the 30-stock index.
The US equity market rally stalled overnight, with both the S&P 500 and Nasdaq retreating from record highs - Dow eased -98-points or -0.25%. Apple Inc fell -2.54% after the European Commission, the European Union’s executive arm, hit the company with a €1.8B antitrust fine for abusing its dominant position in the market for the distribution of music streaming apps. Separately, the Federal Aviation Administration said its audit of 737 Max manufacturing at airplane-maker Boeing Co (up +0.27) and its key supplier turned up “multiple instances” of them failing to make sure manufacturing met quality standards.
US equity markets opened March with a bang, with both the S&P500 and Nasdaq logging fresh record highs - Dow added +91-points or +0.23%. Boeing Co fell -1.83% after confirming it is in “preliminary” talks to acquire Spirit AeroSystems Holdings Inc (+15.31%), the troubled fuselage supplier it spun off nearly 20 years ago, as the plane maker faces pressure to improve its safety record. Boeing said it believed that the “reintegration” of Spirit “would further strengthen aviation safety, improve quality and serve the interests of our customers, employees, and shareholders”.
US equity markets closed out the month with modest gains as investors digested the latest inflation data, with both the S&P 500 and Nasdaq recording record closing highs - Dow edged +15-points or +0.04%.
Stephanie Commons, Acting Chief Executive Officer of Dalrymple Bay Infrastructure (ASX:DBI) gives the Morgans network an update following their full year result.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets weaker ahead of key inflation figures tonight - Dow slipped -23-points or -0.06%. UnitedHealth Group Inc (down -2.95%) led losses on the 30-stock index, while Intel Corp (-1.73%) and Alphabet Inc (-1.91%).
Morgans Analyst Alex Lu gives his analysis of the 1H FY24 result from Woolworths Group (WOW).Follow our Reporting Season coverage here: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets mostly firmer as investors digested the latest round of corporate earnings releases and eye gross domestic product (GDP) figures tonight AEST and inflation figures on Thursday night AEST (29 February) - Dow fell -97-points or -0.25%. UnitedHealth Group Inc (down -2.27%) after the Wall Street Journal (WSJ) reported that the Justice Department has launched an antitrust investigation into the health-insurance giant. Antitrust investigators have asked how UnitedHealth’s acquisitions of doctor groups might affect competitors and consumers, the Journal reported, citing people familiar with the meetings.
George Lippiatt, Chief Financial Officer of Aurizon Holdings (ASX:AZJ) gives the Morgans network an update following their 1H24 Result.Follow our Reporting Season coverage here: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets settled with modest declines following the recent Nvidia Corp (up +0.35%) fuelled rally, with traders eyeing gross domestic product (GDP) and inflation data later in the week - Dow eased -62-points or -0.16% to 39,069.23 after logging its 14th record close of 2024 last Friday (23 February). Amazon.com Inc (down -0.15%) joined the 30-stock index overnight, replacing Walgreens Boots Alliance Inc (-3.41%). The Dow’s holdings are weighted according to stock price, not market capitalisation. Chevron Corp (down -0.14%) warned that its $53B acquisition of Hess Corp (fell over >4% in extended trading after rising +0.57% in the regular session) could be thwarted by rival oil groups ExxonMobil Corp (+0.39%) and China National Offshore Oil Corporation, which are asserting their right to pre-empt its purchase of a stake in a massive oil project off the coast of Guyana.
Following the latest meeting of the Reserve Bank of Australia (RBA), Morgans Chief Economist Michael Knox explains that the RBA minutes don’t say rate cuts are a shoo in at all.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
The Dow and S&P500 eked out fresh record highs on Friday (26 February) - Dow added +62-points or +0.16% to a fresh record losing high of 39,131.53. Amazon.com Inc (up +0.23%) will replace Walgreens Boots Alliance (up +0.74%) as one of the 30 members of the Dow before the start of trading tonight AEST.
Morgans Senior Analyst Nathan Lead gives his analysis of the 1H FY24 result from APA Group (ASX:APA).Follow our Reporting Season coverage here: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Senior Analyst Adrian Prendergast gives his analysis of the 1H FY24 result from BHP Group (ASX:BHP).Follow our Reporting Season coverage here: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
A bumper fourth quarter earnings release from Nvidia Corp after the close of the previous session drove a strong rally on US equity markets and global markets more broadly - Dow rose +457-points or +1.18% to a fresh record closing high of 39,069.11, pushing above >39,000 for the first time. Salesforce Inc (up +3.56%), Visa Inc (+2.53%), International Business Machines Corp (+2.51%) and Microsoft Corp (+2.35%) all climbed over >2%, with just seven stocks closing in the red in the 30-stock index.
US equity markets settled mostly firmer, paring losses in the final hour of trading as investors digested minutes from the Federal Reserve’s late-January monetary policy meeting and awaited technology titan Nvidia Corp’s fourth quarter result - Dow edged +48-points or +0.13% higher.
Morgans Senior Analyst Derek Jellinek gives his analysis of the 1H FY24 result from Sonic Healthcare (ASX:SHL).Follow our Reporting Season coverage here: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets resumed trading following the Presidents’ Day holiday on the backfoot - Dow slipped -64-points or -0.17%. Caterpillar Inc fell -2.54% to be the worst performer in the 30-stock index.
Morgans Analyst Liam Schofield gives his analysis of the 1H FY24 result from Goodman Group (GMG) & Maas Group (MGH).Follow our Reporting Season coverage here: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Analyst Alex Lu gives his analysis of the 1H FY24 result from Reliance Worldwide (RWC) & Orora Ltd (ORA).Follow our Reporting Season coverage here: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
The Financial Times (FT) and Bloomberg News reported Sunday (18 February) that European Commission antitrust regulators are preparing to impose an ~ €500M fine against Apple, after finding that it created an anticompetitive environment by failing to inform iPhone users that cheaper, alternative music-streaming apps were available outside its App Store. The investigation was sparked by a complaint that Spotify SA filed in 2019. The FT reported the fine is expected to be announced in early March.
Morgans Equity Strategist Andrew Tang gives an update on Reporting Season thus far saying it has been better than feared, but Small/Micro-cap cyclicals offer the most compelling risk/reward trade-off. Morgans analysts also call out small-cap results that could be “better than feared” including Helloworld (ASX:HLO), Adrad Holdings (ASX:AHL), Clinuvel (ASX:CUV) and Micro-X (ASX:MX1).Follow our Reporting Season coverage here: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated on Friday (16 February) after another hotter-than-expected inflation reading undermined the case for interest rate cuts - Dow fell -145-points or -0.37%. Nike Inc fell -2.4% after the company announced 1,700 job cuts as part of a plan to cut costs.
US equity markets climbed, with investors looking past some mixed economic data - Dow rallied +349-points or +0.91%. Chevron Corp rallied +3.4% to be the leading component in the 30-stock index, with a filing with the Securities and Exchange Commission (SEC) revealing that Berkshire Hathaway lifted its stake in the oil giant to more than >US$18B.
Morgans Chief Economist Michael Knox explains how the different dates of international financial years generate seasonal variation in the Australian and US stock markets.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Senior Analyst Nathan Lead gives his analysis of the 1H FY24 result from Commonwealth Bank of Australia (ASX:CBA).Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets rebounded, recovering from sharp declines recorded in the previous session following a hotter-than-expected consumer price inflation figures - Dow rallied +151-points or +0.40%, with Salesforce Inc (up +2.85%) and Intel Corp (+2.39%) leading the upside.
A hotter-than-expected consumer price inflation (CPI) print weighed heavily on US equity markets - Dow fell -525-points or -1.35%, slightly paring an earlier decline of as much as 758-points or almost -2%. It marked the worst session for the 30-stock index since March 2023. Walgreen Boots Alliance (down -4.77%) and Goldman Sachs Group Inc (-3.54%) were the worst index performers overnight. Boeing Co fell -% after Chief Financial Officer (CFO) Brian West discussed 737 production at the Cowen Aerospace Conference and reportedly said Boeing 737 MAX production would be below 38 a month for the first half of the year and trend back to 38 by the end of 2024.
Morgans Analysts Fiona Buchanan, Liam Schofield and Nathan Lead, preview their stocks under coverage in the Real Asset Sectors for the February 2024 Reporting Season.See Morgans Reporting Season Playbook for more details: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
Morgans Head of Research Alexander Mees comments on JBH's 1H FY24 results. In our opinion, the first half performance was a masterclass in the consolidation of a market-leading position, while maintaining iron-clad discipline over costs. Despite the downturn in the Australian consumer sector, sales were down only 2% yoy, and margins held up better than expected in the face of intense inflationary pressures.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Senior Analyst Nathan Lead gives his analysis of the 1H FY24 results from ANZ Group Holdings (ANZ), Aurizon Holdings (AZJ) & Transurban Group (TCL).Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets mixed ahead of the latest consumer price inflation figures tonight AEST - Dow gained +126-points or +0.33% to a fresh record closing high of 38,797.38, the 30-stock indices 12th of 2024.
Michael explains how a boom in US corporate liquidity is driving US and Australian stock markets upwards.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets advanced on Friday (9 February), with a fresh march higher for mega-capitalisation technology stocks seeing the S&P 500 settling above the 5,000 for the first time - Dow eased -55-points or -0.14%. Chevron Corp fell -1.96% amid reports Venezuela had built up its military presence along its border with Guyana. Chevron last year announced a US$53B acquisition of Hess () in part to take ownership of Hess’s assets in the newly oil-rich country. Cisco Systems Inc added +0.36% after Reuters reported that the networking giant is planning thousands of job cuts as it restructures its business to focus more on high-growth markets. Intel Corp rose +1.91% after the White House said it would invest $5 billion in a new public-private consortium for the research and development of advanced semiconductors. International Business Machines (IBM) Corp rose +1.07% and Microsoft Corp +1.56%.
US equity markets advanced as a narrow group of companies lifted the S&P500 above the 5,000 level for the first time late in the session - Dow added +49-points or +0.13% to log yet another record closing high of 38,726.33. Walt Disney Co jumped +11.50% after reporting better than expected fiscal first-quarter earnings and guidance for fiscal 2024 that was well ahead of Wall Street estimates after the close of the previous session.
Michael Knox discusses the February 2024 RBA statement, commenting on monetary policy. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Analysts Scott Murdoch and Jared Gelsomino, preview their stocks under coverage in the Automotive & Services Sectors for the upcoming February Reporting Season.See Morgans Reporting Season Playbook for more details: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets rallied, with the S&P 500 climbing to within touching distance of the 5,000 mark as investors parsed through another slate of quarterly results - Dow climbed +156-points or +0.40% to a record close of 38,677.36.
US equity markets retreated after Federal Reserve Chairman Jerome Powell continued to push back against the prospect of near-term rate cuts in an interview aired on Sunday (4 February) in America - Dow shed -274-points or -0.71% to 38,380.12 after settling at a record closing high of 38,654.42 last Friday (2 February). Boeing Co lost -1.31% after the aerospace company said it plans to dedicate several days at its 737 factory in Renton, Washington to carrying out inspections and reworking fuselages supplied to it by Spirit AeroSystems Holdings Inc (-4.71%). The chief executive of Boeing Commercial Airplanes unit, Stan Deal, said in a memo efforts to rework the 737 fuselages could delay some “near-term” deliveries of its classic single-aisle plane, which is used by major airlines including Southwest Airlines (-1.94%), and Delta Air Lines Inc ( -1.88%).
US equity markets rallied on Friday (2 January) as strong earnings and a blowout January employment report boosted confidence in the economy, even while lowering the likelihood that the Federal Reserve will cut interest rates any time soon – Dow gained +135-points or +0.35% to a record closing high of 38,654.42.
Morgans Analysts Alex Lu, Liam Schofield, Nathan Lead and James Filius, preview their stocks under coverage in the Industrials Sectors for the upcoming February Reporting Season.See Morgans Reporting Season Playbook for more details: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Analysts Adrian Prendergast, Tom Sartor and Chris Brown preview their stocks under coverage in the Resources Sector for the upcoming February Reporting Season.See Morgans Reporting Season Playbook for more details: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets rebounded after logging their worst two-day decline since October, with gains accelerating in the final hour of the session as investors eyed results from three (3) of the so-called ‘Magnificent Seven” large capitalisation technology stocks after the closing bell - Dow rallied +370-points or +0.97%.
Morgans Analysts Alex Lu and Belinda Moore preview their stocks under coverage in the Consumer Staples Sector for the upcoming February Reporting Season.See Morgans Reporting Season Playbook for more details: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Analysts Belinda Moore and Billy Boulton preview their stocks under coverage in the Travel & Tourism Sectors for the upcoming February Reporting Season.See Morgans Reporting Season Playbook for more details: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Chief Economist Michael Knox says that Federal Reserve rate cuts later this year will be shaded by a major program of quantitative tightening.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets logged their worst single session performance of 2024 to close out January as investors digested the latest monetary policy pronouncements from the Federal Reserve and served up a lacklustre response to some solid earnings from some technology mega-caps - Dow lost -317-points or -0.82%, the 30-stock index’s biggest one-day point decline since December. Microsoft Corp (down -2.69%). Cisco Systems Inc (-3.94%), International Business Machines (IBM) Corp (-2.24%), Nike Inc (-2.54%) and Salesforce Inc (-2.31%) also declined over >2%.
Morgans Head of Research Alexander Mees previews his stocks under coverage in the Consumer Discretionary Sector for the upcoming February Reporting Season.See Morgans Reporting Season Playbook for more details: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Analysts Scott Power, Iain Wilkie and Emily Porter, preview their stocks under coverage in the Healthcare Sector for the upcoming February Reporting Season.See Morgans Reporting Season Playbook for more details: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets mixed after consumer-confidence numbers and job-opening data pointed to a sturdy U.S. economy, and with investors eyeing some major earnings releases after the closing bell and the Federal Reserve’s latest interest rate decision tomorrow morning AEST - Dow rose +134-points or +0.35% to 38,467.31, sealing its seventh record closing high of 2024. Walmart Inc rose ~1% in extended trading (after rising +0.33% in the regular session) after the retail giant announced a three-for-one stock split, with the stock sitting just below all-time highs.
Morgans Chief Economist Michael Knox walks us through his model for the US Economy using the Chicago National Activity Indicator, which explains 78% of YoY growth in US GDP.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Analysts Nathan Lead, Richard Coles and Scott Murdoch, preview their stocks under coverage in the Financials Sector for the upcoming February Reporting Season. Including our Banks, Insurance, Diversified Financials and Fund Manager stocks.See Morgans Reporting Season Playbook for more details: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets advanced, extending gains in the afternoon session after a Treasury Department funding update underpinned a rally on bond markets that spread to stocks - Dow rose +224-points or +0.59% to 38,333.45, logging its sixth record close of 2024.
US equity markets logged modest declines on Friday (26 January) to close out the opening week of the fourth quarter earnings season with solid gains, with both the S&P 500 and Nasdaq snapping six-day winning streaks as investors weighed the latest inflation data and quarterly earnings releases - Dow added +60-points or +0.16% to a fresh all-time closing high of 38,109.43.
Morgans Analysts Nick Harris, James Filius, Steven Sassine and Leo Partridge, preview their stocks under coverage in the Technology, Media and Telecommunications Sectors for the upcoming February Reporting Season.See Morgans Reporting Season Playbook for more details: https://www.morgans.com.au/reporting-seasonCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets settled with modest gains as investors digested another busy earnings calendar and eyed tonight’s AEST fourth quarter gross domestic product (GDP) - Dow eased -99-points or -0.26%, having climbed as much as +159-points earlier in the session. Verizon Communications (down -2.25%) and 3M Co (-2.98%) were key drags a day after both companies posted quarterly results.
Morgans Equity Strategist Andrew Tang covers the key insights and themes heading into February's Reporting Season. Earnings trends remain remarkably stable despite widespread expectations of an impending earnings slowdown. While the 9% rally in the ASX200 and subdued outlook statements might temper some good results, we still see potential upside surprises in February.Download our Reporting Season Playbook now: https://www.morgans.com.au/Reporting-Season-Playbook-February-2024Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets mixed as investors digested a busy corporate earnings calendar that included quarterly results from a number of major companies - Dow eased -96-points or -0.25% to 37,905.45, a day after climbing above >38,000 for the first time.
US equity markets extended their recent rally, with both the Dow and S&P500 recording fresh record highs - Dow added +138-points or +0.36% to 38,001.81, settling above >38K for the first time. Including the overnight session, it has been 25 trading days since the last 1,000-point milestone for the Dow, which is the shortest time between milestones since the period between 33,000 and 34,000, according to Dow Jones Market Data.
US equity markets rallied, buoyed by fresh gains for heavyweight technology stocks and a strong University of Michigan Consumer Sentiment survey - Dow climbed +395-points or +1.05% to 37, 863.80, logging its second record closing high of 2024.
US equity markets advanced, with the benchmark indices booking their best session in almost two weeks despite a fresh rise in Treasury yields - Dow gained +202-points or +0.54%, recovering from an earlier slide of over >140-points. Boeing Co rallied +4.21% top be the leading performer in the stock index overnight. India’s newest airline, Akasa Air, has ordered 150 Boeing 737 MAX planes.
US equity markets retreated as traders continued to wind back hopes for interest rate cuts, echoing markets in Europe following comments from various central bankers - Dow eased -94-points or -0.25%, with Walgreens Boots Alliance Inc (down -3.06%) and Caterpillar Inc (-2.99%) both falling ~3% to be the worst performers in the 30-stock index.
US equity markets resumed trading following the holiday (Martin Luther King Day) long weekend on the back foot, with investors weighing the latest fourth quarter corporate earnings releases and comments from Federal Reserve official Christopher Waller - Dow dropped -232-points or -0.62%. Boeing Co (down -7.89%) was the worst performer in the 30-stock index.
Benchmark oil prices weaker, with traders watching out for supply disruption risk in the Middle East following strikes by U.S. and British forces to stop Houthi militia in Yemen from attacking ships in the Red Sea - WTI lost -US$0.32c or -04% to US$72.36/barrel. Brent fell -US$0.34c or -0.4% to US$77.98/barrel. European bourses the pan-European Stoxx 600 index (which includes UK equities) -0.54%. Germany's DAX lost -0.49%. France's CAC shed -0.72%. Atos tumbled -% after the French information technology group said free cash flow would come in around €100M below target, but reaffirmed it would meet its other financial benchmarks amid growing concerns about its liquidity.
US equity markets settled little changed following the latest inflation figures - Dow edged +15-points or +0.04% higher, recovering from an earlier -271-point fall. Boeing Co fell -2.27% after the Federal Aviation Administration said it formally launched an investigation into whether the aerospace giant failed to complete safety tests on the certain products.
US equity markets climbed ahead of key December inflation figures tonight AEST - Dow gained +171-points or +0.45%, with Home Depot Inc (up +3.06%) the leading performer in the 30-stock index. Analysts at Wedbush upgraded their recommendation on the home improvement retail giant to ‘Outperform’ from ‘Neutral’, with the firm saying that weak home-improvement retail demand from last year was “bottoming or reversing, which should translate to stronger demand in 2024.
Morgans Chief Economist Michael Knox answers eight questions from the media on his current economic outlook, including the Australian Cash Rate.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets settled with modest declines as investors continue to eye inflation figures and fourth quarter earnings releases later in the week - Dow fell -158-points or -0.42%, snapping a three session winning streak. Boeing Co continued to slide, falling -1.41% after dropping -8.03% after the Federal Aviation Administration (FAA) on Saturday (6 January) ordered the immediate grounding of 737-9 Max jetliners after an Alaska Airlines plane suffered a blowout that left a gaping hole in the side of the fuselage. Alaska Air Group Inc (-1.32%) and United Airlines Holdings Inc (up +1.44%) said they had discovered loose parts on 737 MAX 9 jets that they inspected.
This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
US equity markets rallied, with gains accelerating into the close following a strong session for the technology sector - Dow gained +217-points or +0.58%, recovering from an earlier decline of over >200-points. Boeing Co dropped -8.03% after the Federal Aviation Administration (FAA) on Saturday (6 January) ordered the immediate grounding of 737-9 Max jetliners after an Alaska Airlines plane suffered a blowout that left a gaping hole in the side of the fuselage.
US equity markets ended a choppy Friday (5 January) session with modest gains, with the S&P500 and Nasdaq posting their first positive session of 2024 as investors digested the latest jobs data and eyed the beginning of the fourth quarter earnings season - Dow added +26-points or +0.07%. Walgreens Boots Alliance rebounded +3.09% a day after the release of its first quarter result that saw the after the pharmacy chain nearly halve its quarterly dividend and provide a downbeat outlook on consumer spending.
US equity markets advanced, extending their rally in the final hour of the session ahead of the release of key inflation figures tonight AEST - Dow gained +322-points or +0.87%. Intel Corp gained +2.88%, leaving the chipmaker on track to record its best quarterly performance since the third quarter of 2003, according to Dow Jones Market Data.
US equity markets retreated despite fresh falls for bond yields as the so-called ‘Santa rally’ paused - Dow fell -476-points or -1.27%, snapping a nine session winning streak that saw the 30-stock index book five consecutive record closing highs. Walt Disney Co (down -2.83%) and American Express Co (-2.75%) both fell over >2.5% to be worst performing Dow components overnight.
US equity markets advanced as investors continued to bank of interest rate cuts in the new year - Dow climbed +252-points or +0.68% to 37,557.92, rallying for a ninth straight session – the longest such streak since July – and logging a fifth straight record close. Walgreens Boots Alliance Inc (up +4.2%) was the leading performer in the 30-stock index overnight, while Caterpillar Inc (+2.54%) and Intel Corp (+2.12%) gained over >2%.
This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
Noja Power Group Managing Director Neil O'Sullivan recently spoke at the December, 2024 Morgans Business Breakfast. Founded in 2002, NOJA Power is a world leading manufacturer in Medium Voltage Electrical Equipment. The company has installations of more than 92,000 NOJA Power OSM Series automatic circuit reclosers in over 104 countries worldwide.Find out more about Noja Power: https://www.nojapower.com.au/Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets advanced to kick of the final full week of trading for 2023 - Dow inched +0.86 of a point higher to a fresh record closing high of 37,306.02, logging its eighth consecutive positive session.
US equity markets settled with modest gains, with comments from New York Fed President John Williams tempering hopes of imminent interest rate cuts - Dow added +57-points or +0.15% to log its third consecutive record closing high of 37,305.16. Boeing Co gained +3.13% and logged its seventh consecutive weekly gain (up +8%) – the aircraft manufacturer’s longest weekly winning streak since late 2005.
The Summary of Economic Projections say that rates will fall until 2027.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
The three main US equity benchmarks advanced for a sixth consecutive session as Treasury yields continued to slide - Dow climbed +158-points or +0.43% to 37,248.35, scoring back-to-back record closing highs and hitting a record intra-day peak of 37,287.50. Caterpillar Inc (up +6.42%) and Goldman Sachs Group Inc (+5.72%) were the leading performers in the 30-stock index.
All three benchmark US equity indices hit fresh 52-week highs as investors processed the latest dovish monetary pronouncements from Federal Reserve policymakers - Dow rallied +512-points or +1.40% to 37,090.24, logging its first record closing high since January 2022 and eclipsing >37,000 for the first time. It has been 531 trading days since the Dow’s last 1,000-point milestone, the longest time between milestones since 14,000 to 15,000. Walgreens Boots Alliance Inc (up +7.41%) was the leading performer in the 30-stock index overnight, while Amgen (up +2.78%), Dow Inc (+2.97%), Goldman Sachs Group Inc (+2.87%), Home Depot Inc (+3.06%), and Merck & Co (+2.68%) all gained over >2.5%.
Morgans Chief Economist Michael Knox's outlook for the world economy in 2024 is that growth will slow; inflation will fall; and money will flow into Stock Markets.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets advanced, with all three benchmark indices hitting fresh intra-day 52-week highs despite data highlighting stubborn inflationary pressures and with investors eyeing the latest interest rate decision and monetary policy pronouncements from the Federal Reserve tomorrow morning AEST (14 December) - Dow gained +173-points or +0.48% to 36,577.94, with the 30-stock index touching its highest intra-day level (36,596.11) since January 2022 and logging its third highest close in history. The Dow is closing in on its record high of 36,799.65 set on 4 January, 2022.
Chris Titley recently chatted to Elliot Donazzan from Payble. In this podcast we chat to Elliot about the history of Payble, the current trajectory and products in market as well as their future plans. Elliot talks about feedback loops, product innovation and the different form of payments that customers can accept.This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Find out more about Payble: https://payble.com.au/Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
The benchmark US equity indices climbed to settle at fresh 52-week highs overnight ahead of tonight’s AEST inflation figures and a host of global central bank monetary policy meetings later in the week - Dow rallied +157-points or +0.43% to 36,404.93, the 30-stock index’s highest close since 5 January, 2022. Chipmaker Intel Corp (up +4.31%) was the leading Dow component overnight. Nike Inc rallied +2.33% after Citi upgraded the athletic apparel brand to ‘Buy’ from Neutral and increased their price target to US$135 from US$110, citing optimism around Nike’s 2024 product lineup for the Paris Olympics and the company’s position in China, along with the positive impact of a decline in freight costs, lower promotions, and direct to consumer strength on gross margins. Citi’s upgrade comes 10 days before the company reports second-quarter financial results.
US equity markets closed out the first full trading week of December on a positive footing as investors assessed the latest jobs data - Dow rallied +130-points or +0.36% to 36,247.87, the 30-stock index’s highest close since 12 January, 2022. Boeing Co (up +3.11% to US$244.70) was the leading performer, hitting a fresh closing high for the year.
US equity markets advanced, with the both the Dow and S&P 500 snapping a three session losing streak ahead of tonight’s AEST latest non-farm payrolls report - Dow rose +63-points or +0.17% to 36,117.38, lifting the 30-stock index to within 2% of its record closing high of 36,799.65 set on 4 January, 2022.
This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
US equity markets retreated, with the Dow and S&P 500 logging their first three-session losing streak since October - Dow slipped -70-points or -0.19%, unwinding an earlier rally of as much as +170-points. American Express Co (down -1.86%) and Intel Corp (-1.55%) both fell over >1.5% to be the worst index performers.
US equity markets settled with modest declines although mega-capitalisation technology stocks resumed their outperformance amid fresh falls for Treasury yields - Dow fell -80-points or -0.22%, logging back-to-back losses for the first time in nearly a month American Express Co fell -1.48% after Chief Executive Officer (CEO) Stephen Squeri addressed the Goldman Sachs financial services conference in New York and said October trends had softened. “If you just go back in the second quarter, we had about 8% overall billings growth. Third quarter, it came down to 7%. And in October, everybody got a little bit skittish, and I think other people have said the same thing that growth wasn’t as strong in October. And we didn’t see growth in October like it was in the third quarter.”
This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
US equity markets retreated amid rising Treasury yields, although a ‘catch-up’ rally for small capitalisation stocks extended into a fourth day - Dow slipped -41-points or -0.11%, snapping a four session winning streak that had lifted the 30-stock index above >36,000 for the first time since 13 January, 2022.
US equity markets opened December on a positive footing on Friday (1 December), with investors shrugging off the latest tough talk on inflation by Federal Reserve Chair Jerome Powell - Dow rallied +295-points or +0.82% to 36,245.50, climbing above >36,000 for the first time since 13 January, 2022 and settling ~1.5% below its record close of 36,799.65 set on 4 January, 2022. Salesforce Inc (up +3.22%) extended its gains into a sixth straight session, and climbing over >12.5% since posting a strong fiscal third quarter result after the close of last Wednesday’s (29 November) session).
Mr Jason Huljich, Joint CEO of Centuria Capital Group (ASX:CNI) presented at last month's Morgans Business Breakfast. Centuria Industrial REIT (CIP) is Australia's largest ASX listed income focused industrial vehicle and is included in the S&P/ASX200 index. CIP owns a portfolio of industrial properties in key metropolitan locations throughout Australia. The portfolio is currently valued at +$3.8bn with a weighted average lease expiry of +7 years.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Chief Economist Michael Knox says that core Australian CPI numbers still suggests another RBA rate hike. However, we may not see rates rise until February 2024.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets rallied to cap a strong November performance as investors pondered the latest inflation figures - Dow rallied +520-points or +1.47% to 35,950.89, logging a fresh 2023 high and highest close since 13 January, 2022. Salesforce Inc jumped +9.36% following the company’s better-than-expected fiscal third quarter result after the close of the previous session. Walt Disney Co (up +0.21%) declared its first dividend since early 2020 as the company faces fresh activist pressure from investor Nelson Peltz, announcing a cash dividend of US$0.30c per share.
US equity markets settled with modest declines, running out of steam in the final half hour of trading as investors eye tonight’s AEST inflation data - Dow inched +13-points or +0.04% higher and is on course to record its best monthly gain since October 2022, up +7.19% so far in November.
US equity markets edged higher and remained on track to post solid monthly gains as bond yields retreated, with investors eyeing Thursday night’s AEST (31 November) inflation data - Dow added +84-points or +0.24%. Boeing Co gained +1.4%, buoyed by an upgrade to ‘Outperform’ from ‘Sector Perform’ by RBC Capital (who also lifted their target price on the airplane manufacturer to US$275 from US$200). “After another year of supply-chain disruptions and lowered expectations, we believe the set-up into 2024 is favourable,” the analysts said in a research note.
US equity markets settled with modest declines following a muted session absent any major leads to open the week - Dow fell -57-points or -0.16%.The broader S&P500 eased -0.20%. Health Care (down -0.64%) and Industrials (-0.58%) fell over >0.50% to lead seven of the eleven primary sectors lower. Real Estate (up +0.38%) sat atop the primary sector leaderboard. The Nasdaq dipped -0.07%. The small capitalisation Russell 2000 lost -0.35%.
Is the US Economy entering Deflation? Morgans Chief Economist Michael Knox responds to that question and says that, the level of the US Bond is now dependent on the German Bond.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets settled little changed following an abbreviated, low volume post-Thanksgiving Holiday session on Friday (24 November), although both the Dow and S&P 500 logged their highest closes since 1 August - Dow rose +117-points or +0.33% to 35,390.15, with 27 of the 30 index components advancing.
European bourses recorded another round of modest gains, with the Oil and Gas sector (up +1.4%) advancing despite fresh falls on crude markets and lifting the pan-European Stoxx 600 index (which includes UK equities) +0.30%. The Travel and Leisure sector fell -1.0%. Germany's DAX edged +0.23% higher. France's CAC rose +0.24%.
US equity markets advanced as investors digested durable goods orders and consumer sentiment data ahead of the Thanksgiving holiday - Dow rallied +185-points or +0.53% to 35,273.03, the highest level since 14 August.
US equity markets eased as investors digested the latest monetary policy meeting minutes from the Federal Reserve and eyed the release of mega-capitalisation chipmaker Nvidia Corp’s third quarter result after the close - Dow eased -63-points or -0.18%, with Intel Corp (down -2.46%) snapping a five-session winning streak that saw the stock rally over >16%.
Morgans Chief Economist Michael Knox looks at the key drivers for the lack of a US recession in 2023 and explains why Joe Biden's economic policy isn't more popular.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Chris Titley recently caught up with Leigh Dunsford from Nine25 about the evolution of the business, their recent successes and their future outlook. We chatted to Leigh in 2020 about Earned Wage Access and how he has found his niche within new fintech verticals. This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
US equity markets advanced, with the S&P 500 and Nasdaq extending gains into a fifth consecutive session - Dow rose +204-points or +0.58%, with Boeing Co (up +4.65% to US$217.71) the leading performer in the 30-stock index, buoyed by an upgrade at Deutsche Bank (who raised their target price to US$270 from US$204). Microsoft Corp climbed +2.05% to a record closing high of US$377.44 after Chief Executive Officer (CEO) Satya Nadella said former OpenAI CEO Sam Altman will be joining the technology giant to lead a new artificial intelligence (AI) research team. The news of Mr Altman’s hiring at Microsoft came after fraught efforts to restore him at OpenAI faltered late Sunday (19 November), with the ChatGPT developer’s board refusing to agree to the proposed terms of his reinstatement. Microsoft has a 49% stake in OpenAI but couldn’t overcome resistance to Altman’s return from the board that fired him last week.
US equity markets edged higher on Friday (17 November) to record a third straight week of gains - Dow settled flat. The broader S&P500 edged +0.13% higher, with Energy (up 2.12%) returning to the top of the primary sector leaderboard on Friday (17 November) and leading six of the eleven primary sectors higher. Citigroup Inc is poised to announce the first big round of lay-offs tonight AEST in a sweeping restructuring that will eventually result in thousands of positions being eliminated, according to various media reports. The Gap Inc soared +30.58% after the retailer posted a better-than-expected third quarter result after the close of the previous session.
US equity markets mixed as investors digested the latest round of earnings releases from various retailers - Dow eased -46-points or -0.13%, snapping a four session winning streak. Cisco Systems Inc dropped -9.83% after the company slashed its full year revenue forecast (to US$53.8B to US$55B, down from a previous forecast of US$57B to US$58B, and implying a revenue decline of almost 5%) after the close of the previous session. Intel Corp (up +6.75%) was the best performing Dow component.
US equity markets logged modest gains, building on the strong rally of the previous session as investors weighed another round of subdued inflation data - Dow rose +164-points or +0.47% to 34,991.24, extending gains into a fourth straight session and logging its highest close since 14 August.
Christian Westerlind Wigstrom is the guest on this week’s Bank to the Future 2.0 Podcast. Christian is is the Co-founder and CEO of Monoova. Monoova is a powerful API-enabled solutions that automates account to account payments with ease, improving cashflow and reducing admin. Christian talks about the growth since the last podcast in 2020, the challenges, the funding environment and why he is excited about the future of payments. This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Find out more about Monoova: https://www.monoova.com/Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
A cooler-than-expected inflation report for October fuelled strong gains on US equity markets, and saw Treasury yields drop sharply - Dow gained +490-points or +1.43%.
Chief Economist Michael Knox comments on Australian monetary policy, following the latest interest rate hike by the RBA.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets mixed ahead of the latest consumer price index (CPI) report tonight AEST - Dow added +55-points or +0.16% 34,337.87, its highest close since 20 September. Boeing Co gained +4.01% following a Bloomberg report that the Chinese government was considering lifting a commercial freeze for the plane maker’s 737 MAX jet later this week when President Joe Biden and China’s President Xi Jinping meet during the APEC Summit in San Francisco. Also boosting the stock was an announcement from Emirates at the Dubai Airshow that it would buy US$52B of Boeing aircraft, while SunExpress, a joint venture of Turkish Airlines and Lufthansa, announced it would buy 90 737 MAX jets.
US equity markets logged strong gains on Friday (10 November), boosted by heavyweight technology and growth stocks as Treasury yields calmed, while investors looked ahead to a this week's reports on inflation - Dow rallied +391-points or +1.15% to 34,283.10, marking the 30-stock index’s highest close since 20 September. Intel Corp (up +2.80%) was the leading Dow component on Friday (10 November).
US equity markets retreated, sliding in the closing hour of the session following a poor Treasury auction and after Federal Reserve Chaine Jerome Powell indicated more work may need to be done to bring down inflation - Dow fell -220-points or -0.65%, with Amgen Inc (down -3.37%), Home Depot Inc (-2.72%) and Walgreens Boots Alliance (-2.62%) all declining over >2.5%. Bloomberg reported that Walgreens is to engage in another round of layoffs representing ~5% of the company’s total corporate workforce. However, Walt Disney Co jumped +6.91% after posting a stronger-than-expected third quarter result after the close of the previous session that included better-than-expected subscriber growth for its Disney+ streaming service.
US equity markets climbed, extending the S&P 500 and Nasdaq’s longest winning streaks in two years - Dow slipped -40-points or -0.12%, snapping a seven-session winning streak (its longest since 26 July).
US equity markets advanced, logging their longest winning streak in two years as longer dated Treasury yields retreated for a fifth time in the past six sessions - Dow added +57-points or +0.17%, extending gains into a seventh consecutive session to mark its longest winning streak since 26 July (when the 30-stock index rose for 13 straight days). Intel Corp (up +2.16%) and Salesforce Inc (+2.13%) both climbed over >2%.
Andrew Gardner from Retiremap chats to Chris Titley from Sub11 about his business. RetireMap is the smart software solution for your Financial Planning or Accountancy practice to reduce overheads, increase productivity, engage your clients and speed up data entry. Andrew talks about his extensive history in the financial services sector, why he build Retiremap, the features, the feedback and what’s to come! This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
Michael Knox, Morgans Chief Economist gives his best value bets for the Melbourne Cup 2023. Our recommendation this year is for an each-way bet on horse no 6, Soulcombe. Remember our recommendation is for the best value bet rather than the highest probability of winning. Gamble responsibly.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
A late rally lifted the benchmark US equity indices and saw them notch up some of their longest winning streaks this year - Dow +35-points or +0.10%, with Apple Inc (up +1.46%) the leading performer in the 30-stock index. Intel Corp rose over >% in extended trading (after slipping -0.17% in the regular session) following a report the chip maker is the front-runner to land billions of dollars in funding for secure facilities producing microchips for U.S. military and intelligence applications. The as-yet unannounced facilities are intended to reduce the U.S. military’s reliance on chips imported from East Asia, particularly Taiwan, which some say is vulnerable to Chinese invasion, according to a Wall Street Journal report, citing people familiar with the matter.
US equity markets rallied on Friday (3 November) to cap their best weekly performance of the year after a softer-than-expected October jobs report pushed Treasury yields further lower - Dow climbed +222-points or +0.66%, with Goldman Sachs Group Inc (up +4.42%) the leading performer in the 30-stock index.
Managing Director and Founder, Mr Adam Bloomer, and Chief Executive Officer, Dr Jessica North from LGI Ltd, presented at our latest Morgans Business Breakfast.Offering a full suite of services, LGI Limited are a renewable energy and carbon abatement company who specialises in the capture and beneficial use of biogas from landfills.During the breakfast, LGI Limited shared informative discussions around green energy and the future trajectory of carbon credits.Morgans clients can read the company coverage here - https://bit.ly/3Quzmj7Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets rallied and bond yields fell a day after the Federal Reserve’s latest monetary policy meeting - Dow gained +565-points or +1.70%, with American Express Co (up +3.0%), Caterpillar Inc (+3.14%), Chevron Corp (+3.32%), and Nike Inc (+4.16%) all rising 3%+.
Quantitative Tightening is more powerful than we think.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets advanced and Treasury yields retreated as investors digested the latest monetary policy pronouncements from the Federal Reserve along with the latest corporate earnings releases - Dow rose +222-points or +0.67% to record its best three day advance (up +2.63%) since April.
US equity markets advanced ahead of the latest monetary policy pronouncements from the Federal Reserve tomorrow morning AEST, still logged a third straight month of declines - Dow rose +124-points or +0.38%, with Boeing Co (up +2.45%) and Intel Corp (+2.27) both gaining over >2%.
This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
US equity markets rallied, with the Dow and S&P 500 snapping three session losing streaks - Dow rallied +511-points or +1.58%, logging its best single session advance since 2 June. Nike Inc (up +3.9%), Goldman Sachs Group Inc (+3.77%), Verizon Communications (+3.53%) and Travelers Companies Inc (+3.01%) all rallied over >3%.
Morgans Senior Analyst Nathan Lead previews the upcoming banks reporting season in November, with expectations of declining 2H23 earnings and a more difficult outlook for FY24. However, capital positions are strong allowing for stable to improving dividends and buybacks.Morgans clients view Nathan's research note here: https://my.morgans.com.au/research/5122BE77-DACD-4D8A-84E8-62A24DC8698A.pdfCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated on Friday (27 October), with the S&P 500 index joining the Nasdaq in official correction territory - Dow dropped -367-points or -1.12% to 32,417.59, logging its lowest settlement since 28 March.
US equity markets recorded a second straight session of sharp declines, with technology majors again leading the downside - Dow fell -252points or -0.76%, with Microsoft Corp (down -3.75%) and Nike Inc (-3.40%) both down over >3%.
US equity markets fell sharply as investors digested the quarterly earnings from mega-capitalisation technology stocks and as bond yields resumed their march higher - Dow fell -105-points or -0.32%, and has dropped for five of the past six sessions.
Morgans Technology Analyst Nick Harris sits down with Megaport CEO Michael Reid for a deep dive in Artificial Intelligence – what, where, how and which companies benefit as suppliers of the picks and shovels to AI. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets rebounded as investors digested a flood of corporate earnings releases from Dow components and technology heavyweights - Dow gained +205-points or +0.62%, snapping a four-day losing streak.
Chris Titley chats to Chloe White from Sweden in a follow up interview from November 2021. Chloe discusses the highs and lows of what has happened within the cryptocurrency industry recently. This includes things likes Terra Luna and FTX, but on the flipside institutional acceptance of digital currencies. Chloe also delves in to policy of governments and regulation around the industry and why she is so excited about the future.This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Find out more about GenesisBlock: https://genesisblock.com.au/Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
US equity markets settled mostly lower, with the Dow and S&P500 recording their lowest closing levels since 31 May - Dow fell -191-points or -0.58%, settling lower for a fourth straight session. However, Walgreens Boots Alliance (WBA) Inc rallied +3.29% to US$21.96 after JPMorgan turned bullish on the healthcare-services and pharmacy chain, citing a “new era” for the company under Chief Executive Officer (CEO) Tim Wentworth. WBA hit a 25-year intra-session low of US$20.48 last Friday (20 October).
With Brent Oil Prices on the rise, Morgans Chief Economist Michael Knox says Europeans will find winter warmth more expensive than anticipated.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated on Friday (20 October) as Middle East tensions and elevated US bond yields steered the benchmark indices to their largest weekly percentage declines since the week ending 22 September - Dow fell -287-points or -0.86%, logging a third straight session decline of more than >250-points and dipping into negative territory for the year. Intel Corp (down -2.10%) and Salesforce.com Inc (-2.20%) both fell over >2%. However, Merck & Co Inc rallied +2.23% after it signed a US$5.5B deal with Daiichi Sankyo for the rights to jointly develop and commercialise three of the Japanese company's candidate cancer drugs.
US equity markets retreated and long-dated Treasury yields continued to climb as investors digested the latest comments from Federal Reserve Chair Jerome Powell - Dow fell -251-points or -0.75%, with Caterpillar Inc (down -2.44%) and Travelers Companies Inc (-2.48%) both falling over >2%.
US equity markets retreated as long bond yields continued to march higher and investors continued to cast a wary eye on the Middle East - Dow declined -333-points or -0.98%, snapping a three session winning streak. The Dow Jones Transportation Average dropped -3.44%, logging its worst single session decline since 26 April.
US equity markets settled little changed after a subdued session as investors digested stronger-than-expected retail sales data that fuelled concerns over tighter monetary policy - Dow edged +13-points higher . According to reports earlier this morning AEST, Chevron Corp (up +1.32%) has ended a dispute on pay and working conditions with labour unions at its liquefied natural gas (LNG) facilities in Australia. The agreement by workers to accept the terms effectively resolves a dispute that triggered strikes last month at Chevron’s Gorgon and Wheatstone facilities, which accounted for ~7% of global LNG supply last year.
US equity markets advanced, retracing sharp moves at the end of last week as investors looked ahead to a flurry of economic data and US corporate earnings - Dow rose +314-points or +0.93%, market the 30-stock indices sixth advance in the past seven sessions and best single session gain since September. Nike Inc (up +2.13%) and Travelers Companies Inc (+2.09%) both climbed over >2% to be the leading Dow components overnight.
US equity markets weaker on Friday (13 October) as investors digested consumer sentiment data and kept a wary eye on the unfolding conflict in the Middle East – Dow added +39-points or +0.12% despite Boeing Co (down -3.34%) and Walgreens Boots Alliance Inc (-3.89%) dropping over >3%. UnitedHealth Group Inc gained +2.64% after the healthcare-services and insurance giant posted better-than-expected third quarter adjusted EPS (US$6.56 versus consensus US$6.33) and revenue (US$92.361B, up from US$80.894B a year earlier and versus consensus US$91.414B), and again raised its full year adjusted EPS guidance (to US$24.85-to-US$25.00 versus current consensus US$24.83). On a call with analysts, UnitedHealth faced several questions about coverage of popular diabetes and weight-loss drugs such as Ozempic and Wegovy. “We’re struggling, and frankly our clients are struggling, with the list prices which have been demanded on these products in the U.S.,” CEO Andrew Witty said on the call. Regarding whether customers are seeking increased coverage of the drugs, CEO of the company’s UnitedHealthcare unit Brian Thompson said “it’s a mixed bag”, noting that “Some are seeking coverage, albeit dissatisfied with the price point. Some are backing off, given the cost.” Clients see the cost of the drugs as an “open-ended financial risk,” Mr Witty added on the call. “We’re trying to put forward to manufacturers a variety of options, but we need the manufacturers to move. It’s as simple as that.”
US equity markets retreated, and bond prices fell following the latest monthly inflation figures from the Bureau of Labor Statistics, and with investors eyeing the beginning of the third quarter earnings season - Dow fell -174-points or -0.51%, with Boeing Co dropping -2.43%.
US equity markets extended their advance into a fourth straight session as investors digested the minutes from the Federal Reserve’s September monetary policy meeting and September wholesale price inflation figures - Dow added +66-points or +0.19%, with Amgen Inc jumping +4.55% following an analyst upgrade that cited an expanding earnings multiple and pipeline news flow as catalysts.
US equity markets extended gains into a third consecutive session as oil prices and bond yields retreated, and with investors seemingly not concerned about the Middle East conflict widening - Dow rose +135-points or +0.40%, with Boeing Co (up +2.67%) and Coca-Cola Co (+2.17%) gaining over >2%.
Morgans Equity Strategist Andrew Tang updates us on Morgans Asset Allocation for Q4. This quarter, we increase our cautious tilt: overweight cash, and underweight risky assets including Global and Australian equities, and real assets. We remain balanced on fixed interest. Read more on our full asset allocation Q4 report here: https://morgans.com.au/Blog/2023/October/Asset-Allocation-Update-2023-Q4-OutlookCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets advanced, recovering from opening losses as investors continued to digest terrorist group Hamas’ barbaric attacks in Israel and the scope for the conflict to broaden - Dow up +197-points or +0.59%, with energy giant Chevron Corp (up +2.77% the leading index performer. Walt Disney Co gained +2.12% after The Wall Street Journal reported, citing sources, that activist investor Nelson Peltz’s Trian Fund Management has lifted its stake in a bid to get several more seats on the company’s board.
Despite continued growth in EV production, lithium prices continue to weaken since the July – August period with spot Chinese prices falling the most. Max Vickerson, Morgans Research Analyst gives an update on the Lithium markets.Read Max's full research note here: https://morgans.com.au/Blog/2023/October/Mining-Lithium-Pure-PlaysCheck out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Senior Research Analyst Nick Harris gives us a rundown on the past, present and future state of Generative AI. The good, the bad and what it all means for you.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets climbed on Friday (6 October), reversing earlier session declines as investors digested the latest non-farm payrolls data - Dow gained +288-points or +0.87%, recovering from an earlier decline of as much as -272-points but settling of its best levels of the session that saw the 30-stock index up more than >400-points. Caterpillar Inc (up +2.01%), Honeywell International (+2.58%), Microsoft Corp (+2.47%), Salesforce.com Inc (+2.65%) and Walt Disney Co (+2.64%) all gained over >2%.
US equity markets settled little changed ahead of the release of key jobs data tonight AEST - Dow dipped -10-points or -0.03%. Coca Cola Co dropped -4.83%, logging its steepest one-day decline since 18 May, 2022 to be the worst Dow component overnight.
US equity markets advanced as US Treasury yields pulled back from multi-year highs following weaker-than-expected labour market data - Dow added +127-points or +0.39%, snapping a three session losing streak. Microsoft Corp (up +1.78%) was the leading Dow component overnight.
US equity markets fell sharply, with the Dow cementing its sharpest single session decline since the March banking crisis as the bond market came under renewed selling pressure following the latest stronger-than-expected labour market data - Dow fell -431-points or -1.29% to 33,002.38, marking the 30-stock index’s lowest close since 31 May. Goldman Sachs Group Inc (down -3.89%) and American Express Co (-2.96%) were the worst performing Dow components overnight. The latest fall also pulled the index into negative territory for the year (down -0.44%).
The broader S&P500 eked out a +0.01% rise, with Communications Services (up +1.47%) and Information Technology (+1.33%) leading a narrow advance that saw just three of the eleven primary sectors settle in positive territory. Utilities (down -4.72%) was the worst performing primary sector overnight, while Energy (-1.91%) and Real Estate (-1.75%) both declined over >1.5%. Tesla Inc added +0.55%, recovering from a loss of as much as 3% despite the electric vehicle (EV) manufacturer reporting third quarter deliveries that were well below already-lowered expectations. Tesla said it produced 430,488 vehicles during the third quarter (up +17.6% year-on-year) and delivered 435,059 vehicles (up 26.5% year-on-year, and versus consensus 461K). Analysts had been lowering their expectations amid concerns over slowing demand in China, and as the lower-priced Model 3 was getting a refresh in some regions.
US equity markets were mostly weaker on Friday (29 September), with all three benchmark indices booking monthly and quarterly declines as investors the latest inflation figures - Dow fell -159-points or -0.47%, unwinding an earlier rally of as much as +227-points with Travelers Companies Inc falling -2.57%. However, Nike Inc rallied +6.68% after posting stronger than expected fiscal first quarter earnings per share (EPS) after the close of the previous session.
The Dow and S&P500 booked their largest daily percentage gains since 14 September as Treasury yields and oil prices pulled back ahead of key inflation figures tonight AEST - Dow rose +116-points or +0.35%, with chipmaker Intel Corp (up +1.65%), investment banks Goldman Sachs Group Inc (+1.01%) and JPMorgan Chase & Co (+1.24%) and Caterpillar Inc (+1.29%) among the notable performers.
US equity markets settled little changed after a volatile session once again headlined by rising oil prices and Treasury yields - Dow eased -69-points or -0.20%, having been up as much as +113-points earlier in the session. Caterpillar Inc (up +3.19%) and Chevron Corp (+3.24%) were the leading performers in the 30-stock index, both gaining over >3%.
US equity markets retreated amid a fresh rise in longer dated Treasury yields, and as investors digested the lates home sales and consumer confidence data - Dow fell -388-points or -1.14%, logging its largest one day point and percentage decline since 22 March. The 30 stock index also fell below its 200-day moving average, with the index last breaking that support level on 25 May.
Chris Titley catches up with Carolyn Breeze from Scalare Partners. Carolyn was a previous guest on the show and we catch up on her career move and recent appointment at Scalare. Scalare aims to create a greater impact by building a powerful, synergistic network that connects exceptional founders, advisors and investors in a unique partnership – to deliver the game-change to change-makers. Carolyn talks about the company, the history, the investments and her continual love for fintech. This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
The benchmark US equity indices logged their first advance in five sessions, rebounding from their lowest settlements since early June last Friday (22 September) and shaking off fresh multi-year highs for longer dated Treasury yields - Dow added +-43 points or +0.13%, underpinned by gains for Dow Inc (up +1.67%) and energy majors Chevron Corp (+1.46%) and Honeywell International (+1.10%).
US equity markets logged modest declines, capping a week in which equities were dragged down by the effects of rising oil prices and growing expectations that interest rates will stay higher for longer - Dow fell -107-points or -0.31%, with Walgreens Boots Alliance (down -1.54%) and Walt Disney Co (-1.79) both falling over >1.5%.
US equity markets fell sharply, with the S&P 500 and Nasdaq posting their lowest settlements since June as Treasury yields continued to climb in the wake of the hawkish pronouncements at the conclusion of Federal Reserve’s latest monetary policy meeting. Losses intensified following news that House Republican leaders sent the chamber into recess overnight, bolstering fears that federal lawmakers won’t pass a bill to avert a government shutdown. Market participants are concerned that a shutdown would hurt fourth-quarter GDP. Dow fell -370-points or -1.08% to 34,070.42, the lowest close for the 30-stock index since 10 July.
Morgans Senior Analyst Belinda Moore gives a reporting season wrap-up for the travel sector.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Research Analyst Liam Schofield wraps up this reporting season for the Industrials stocks under his coverage; Goodman Group (GMG), Wagners (WGN), MAAS Group (MGH), DGL Group (DGL), and Ventia Services (VNT).Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Senior Analyst Nick Harris summarises the key takeaways, investment view changes and key picks following the completion of August 2023 reporting season for the Technology sector. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated as investors digested the latest interest rate decision and monetary policy pronouncements from the Federal Reserve that saw short dated Treasury yields hit fresh 17-year highs - Dow eased -77-points or -0.22%. Intel Corp (down -4.54%) was the worst performing Dow component for a second straight session after the company’s new artificial-intelligence (AI) chips unveiled overnight on the opening day of the company’s developer conference were overshadowed by management’s tempered expectations for gross margin improvement. Chief Financial Officer (CFO) David Zinsner told the conference that he thinks “year over year, we’ll see gross margin expansion. It may not be hundreds and hundreds of basis points next year. It may be more modest for the reasons I talked about from a headwind perspective. But we do expect margin expansion next year.” Current consensus expectations are for a 550-basis-point improvement in gross margins for calendar 2024.
Morgans Head of Research Alex Mees gives a reporting season wrap-up with the earnings of discretionary retailers generally exceeding our expectations during the FY23 reporting season, driving a positive inflexion in share prices. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Chief economist Michael Knox explains how the Saudis "'manage up'' the oil price.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated, logging their lowest close September to date as Treasury yields climbed ahead of the conclusion of the Federal Reserve’s two-day monetary policy meeting - Dow fell -107-points or -0.31%. Walt Disney Co fell -3.62% after announcing plans to nearly double its investment in its cruise and parks business.
In the latest episode Chris Titley chats to Ben Silluzio from oNesto. oNesto has created a platform that gives employees access to their earnings, shopping discounts, rewards and financial education in real-time. Ben talks about why he is so excited about employee retention, financial wellness and overall improvement of mental health of staff. This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
US equity markets eked out slight gains in volatile trade as investors eyed the latest advance in crude prices and looked ahead to a busy week of central bank meetings including interest-rate decisions from the Federal Reserve, Bank of England and Bank of Japan - Dow eked out a +6-points gain.
US equity markets retreated on Friday (15 September), with technology stocks under pressure - Dow fell -289-points or -0.83%. Cisco Systems Inc (down -0.59%) announced another round of job cuts, with the networking company announcing that it will lay off 350 employees in Silicon Valley next month. Last year, Cisco announced it would slash ~5% of its workforce, roughly 4,000 jobs, and laid off nearly 700 more Silicon Valley employees in March, according to state filings.
US equity markets rallied as investors digested strong wholesale prices and retail sales data - Dow gained +332-points or +0.96%, booking its largest daily point and percentage gain since 7 August. The broader S&P500 rose +0.84%, with all of Real Estate (up +1.71%), Utilities (+1.17%), Materials (+1.40%), Energy (+1.26%) and Communication Services (+1.18%) rising over >1% to lead all eleven primary sectors higher. The Nasdaq climbed +0.81%. The small capitalisation Russell 2000 lost -0.49%. Tonight’s AEST expiration is set to be the sixth-largest monthly expiration on record, in addition to being the largest September.
US equity markets edged higher and Treasury yields declined as investors digested the latest inflation figures - Dow eased -70-points or -0.20%, The broader S&P500 +0.12%, with Utilities (up +1.21%) and Consumer Discretionary (+0.90%) leading seven of the eleven primary sectors higher. Real Estate (down -1.03%) and Energy (-0.76%) sat at the foot of the primary sector leaderboard overnight. Citigroup Inc. gained +1.66% after the major bank said it would reorganize into a flatter structure, with the heads of its five major business units reporting directly to Chief Executive Jane Fraser. American Airlines Group Inc dropped -5.67% after cutting its third-quarter earnings outlook, citing higher fuel prices and costs associated with a new labour agreement. The company said it now expects adjusted earnings per share of ~US$0.20c to US$0.30c, down from previous guidance of ~US$0.85c to US$0.95c and versus current consensus of US$0.69c. Delta Air Lines Inc fell -2.80% and United Airlines Holdings Inc -3.80%.
US equity markets declined and oil prices hit fresh 2023 highs ahead of the release of the latest monthly inflation figures tonight AEST - Dow dipped -18 points or -0.05%, The broader S&P500 eased -0.57%, with Information Technology (down -1.75%) and Communication Services (-1.06%) falling over >1% to lead eight of the eleven primary sectors lower. Energy (up +2.31%) was the clear outperformer overnight. Oracle Corp tumbled -13.50% to be the worst performing S&P500 component after the business software giant posted weaker-than-expected second quarter earnings and revenue guidance after the close of the previous session.
US equity markets advanced, with both the S&P500 and Nasdaq booking their biggest daily percentage gains since 29 August ahead of US inflation and retail sales figures later in the week - Dow up +87-points or +0.25%. Walt Disney Company rose +1.15% after CNBC reported that the media and entertainment giant has come to an agreement with cable giant Charter Communications Inc (+3.18%) to restore popular channels such as ESPN to the cable operator’s nearly 15M subscribers following an 11-day long channel blackout.
US equity markets advanced on Friday (8 September) but settled off their session highs as investors eyed inflation data later this week - Dow up +76-points or +0.22%, Goldman Sachs Group Inc settled +1.11% higher on the news that the investment banking giant would cut underperformers as soon as October - a regular practice that it had paused in during the pandemic - according to the Financial Times.
Technology stocks dragged US equity markets lower amid fresh concerns that interest rates could remain elevated for some time, and with investors eyeing the latest inflation data next week - Dow edged +58-points or +0.17% higher. Intel Corp rallied +3.24% to US$38.18, the chipmaker’s highest close since 28 July, 2022 and logging it ninth consecutive session gain – the stocks’ longest winning streak since 4 December, 2020 which has seen the company’s shares climb ~17.2%. Walt Disney Co (down -0.51%) fell for a sixth straight session – the longest losing streak in almost a year - as the impasse with Charter Communications Inc (-0.71%) over the future of their distribution deal drags on. Charter said that cable providers and media companies need a fundamentally new arrangement in the streaming era, while Disney said Charter “claims to value our direct-to-consumer services” yet wants access to them for free. Disney has fallen ~61% from its pandemic-era high of US$201.91 set in March 2021.
US equity markets resumed trading following the Labor Day long weekend, with value stocks under particular pressure as investors digested some disappointing manufacturing orders data - Dow fell -196-points or -0.6%, The broader S&P500 -0.42%, with Materials (down -1.81%), Industrials (-1.69%) and Utilities (-1.54%) all declining over >1.5% to lead eight of the eleven primary sectors lower. Energy (up +0.49%) and Information Technology (+0.39%) sat atop the primary sector leaderboard. The Nasdaq dipped -0.08%. The small capitalisation Russell 2000 lost -2.10% as rising Treasury yields added pressure.
US equity and bond markets were CLOSED overnight for the Labor Day holiday. In US economic data, Factory Orders for July are released tonight AEST.
US equity markets closed out a strong week on firmer footing after many felt the latest jobs data afforded the Federal Reserve room to hold interest rates steady and put the economy on track for a ‘soft’ landing - Dow rose +116-points or +0.33%, trading more than >250-points higher earlier in the session. Intel Corp up +4.13% was the leading Dow component, extending gains a day after Chief Executive Officer Pat Gelsinger addressed a Deutsche Bank conference and said the company is tracking above the midpoint of its third-quarter outlook. However, Walgreens Boots Alliance Inc dropped -7.43% after the pharmaceutical chain and healthcare services company announced that Chief Executive Officer (CEO) Rosalind Brewer had stepped down after just 2.5-years in that role. The leadership change comes after Walgreens shares suffered their worst monthly decline in nearly five years in August (down -15.55%), and a month after the surprise departure of the suburban Chicago–based company’s chief financial officer. Separately, Walgreens said it expects 2023 adjusted earnings per share (EPS) to be at or near the low end of previous guidance. In June, the company cut its full-year EPS guidance to US$4.00 to US$4.05, while the current consensus sits at US$4.01.
Morgans Senior Analyst Adrian Prendergast comments on this Reporting Season's result from Mineral Resources (ASX:MIN), who delivered a mixed P&L performance (underlying beat but it came with impairments), but impressed with its cash flow and dividend performance.
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US equity markets logged modest gains, advancing for a fourth consecutive session and further curtailing August’s losses as investors weighed signs of cooling in the labour market and revised data on economic growth in the second quarter - Dow edged +38-points or +0.11% higher, with Apple Inc gaining +1.92% a day after confirming 12 September as the date for its latest product event where the company is expected to debut its latest smartphone line-up.
This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.
Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/ On Instagram: www.instagram.com/hellosub11/ On Twitter: twitter.com/hellosub11 On LinkedIn: www.linkedin.com/company/sub11/ Follow Chris Titley: www.linkedin.com/in/ctitley/
The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.
This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.
Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
US equity markets and bonds rallied following data that showed signs of a cooling labour market that could further ease pressure on the Federal Reserve to raise interest rates - Dow up +293-points or +0.85%. The broader S&P500 rallied +1.45% to log its best day since June, with Communication Services (up +2.46%) and Consumer Discretionary (2.35%) rallying over >2% to lead all eleven primary sectors higher. Tesla Inc jumped +7.69% to a near three week high of US$257.18, logging its largest one-day percentage increase since 21 March. Analysts at Oppenheimer reported that the electric vehicle maker launched a US$300M AI Computing cluster, saying the supercomputer “will employ 10,000 Nvidia H100 GPUs and is more powerful than the world’s third highest-performing supercomputer.”
Morgans Head of Research Alexander Mees comments on the latest Retail/Consumer sector results for this August 2023 reporting season. Focusing on Lovisa (LOV) & Domino's Pizza (DMP).
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US equity markets advanced to kick off the final trading week of August, picking up from where they left off last Friday (25 August) following Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium. A number of analysts felt that the central bank chief had set a high bar for further interest rate hikes, whilst eyeing key inflation and employment data at the back end of the week - Dow gained +213-points or +0.62%. 3M Co gained +5.22% after The Wall Street Journal reported that the multinational conglomerate was nearing an agreement on an ~US$5.5B plan to settle more than 300,000 lawsuits over defective military earplugs.
US equity markets advanced after searching for direction earlier in last Friday’s (25 August) session as investors awaited Federal Chair Jerome Powell’s address in Jackson Hole - Dow rose +247-points or +0.73%, having rallied over >300-points at its session peak. Boeing Co (up +2.81%) was the leading Dow component on Friday (25 August) after Bloomberg reported that the that two aircraft slated for China have been taken out of storage and readied for delivery. The report, which cited people familiar with the matter, said that the handovers are expected “within weeks.” The broader S&P500 gained +0.67%, with Consumer Discretionary (up +1.10%) and Energy (+1.07%) climbing over >1% to lead all eleven primary sectors higher. The Nasdaq rose +0.94%. Apple Inc rose +1.26% ahead of the company contesting a US$2B mass lawsuit at London’s Competition Appeal Tribunal on Tuesday night AEST (29 August) in which the tech company is accused of hiding defective batteries in millions of iPhones by “throttling” them with software updates. However, Nvidia Corp fell -2.43% as some of the exuberance following the chipmaker’s strong second quarter result last week The small capitalisation Russell 2000 added +0.40%.
Morgans Senior Analyst Scott Power comments on the latest Healthcare sector results for this August 2023 reporting season. Focusing on Sonic Healthcare (SHL) & Ramsay Health Care (RHC).
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Mitchell Services (ASX:MSV) is an ASX listed drilling services provider and is Australia’s most diverse drilling company.
The Mitchell brand has successfully operated in the mining and resources sector for over half a century. It currently has 100+ surface and underground rigs, more than 700 experienced employees and a strong track record of performance and growth.
Mitchell's world class fleet is located in key exploration and mining centres throughout Australia, providing a wide range of drilling services and innovations across the country.
In his latest note on MSV, Morgans Senior Analyst Tom Sartor says, "Mitchell Services (ASX:MSV) delivered breakout operational and financial performance in late FY23, with investors finally seeing what the fleet is capable of with an un-interrupted run."
Read the latest Morgans Research on Mitchell Services: https://bit.ly/3KUcI0m
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Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog
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US equity markets logged their biggest drop in three weeks, with losses accelerating into the close as rising Treasury yields and a stronger U.S. dollar weighed on the benchmark indices - Dow dropped -374-points or -1.08%, Boeing Co fell -4.93% after the company warned of potential delivery delays of its 737 MAX jets.
US equity markets advanced as investors eyed the release of chipmaker Nvidia Corp’s latest quarterly result after the close and the beginning of the Jackson Hole Economic Symposium tonight AEST - Dow gained +184-points or +0.54%, Nike Inc (down -2.67%) fell for a tenth consecutive session, its longest slide on record. The broader S&P500 rose +1.10%, snapping a streak of 36 consecutive sessions without a gain of 1% or more in the process - longest such streak since the 42 trading day streak from 26 July, 2021 to 22 September, 2021, according to Dow Jones Market Data. It also marked the index’s best one day gain since 30 June. Information Technology (up +1.92%), Communication Services (+1.90%) and Real Estate (+1.46%) all gained over >1% to lead all primary sectors higher with the exception of Energy (down -0.30%).The Nasdaq rallied +1.59%, marking the technology-centric index’s largest one-day point and percentage gain since 28 July. The small capitalisation Russell 2000 rose +1.04%.
Morgans Chief Economist Michael Knox says that big swings in the US budget deficit are driving big swings in commodities.
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In this episode, we catch up with Andy Taylor from ASX Listed Douugh (DOU). Our previous episode was recorded in July 2020 when Douugh was a private company. Since then, the company has listed, refined, and is now focusing on the Australian market. Andy gives an update about the company as well as some of the newly launched features.
This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.
Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/ On Instagram: www.instagram.com/hellosub11/ On Twitter: twitter.com/hellosub11 On LinkedIn: www.linkedin.com/company/sub11/ Follow Chris Titley: www.linkedin.com/in/ctitley/
The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.
This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.
Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
The Dow and S&P500 logged modest losses as a fresh ratings agency downgrade weighed on the financial sector - Dow fell -175-points or -0.51%. Nike Inc fell -1.36% to log its ninth consecutive session decline, with the latest decline coming following a disappointing quarterly update from Dick’s Sporting Goods.
US equity markets advanced, led by technology stocks despite longer dated Treasury yields climbing to levels not seen in over a decade - Dow eased -37-points or -0.11%, paring an earlier slide of as much as -252-points. Johnson & Johnson (down -2.98%) and Nike Inc (-1.86%) were the worst performing Dow components overnight. The broader S&P500 rose +0.69%, with Information Technology (up +2.26%) leading five of the eleven primary sectors higher. The more defensive Real Estate (down -0.88%) and Consumer Staples (-0.64%) sat at the foot of the primary sector leaderboard overnight. Tesla Inc jumped +7.33% buoyed by an upbeat research note from analysts at Baird that highlighted some positive developments ahead of the electric vehicle maker in the second half of the year, including the launch of the Cybertruck and “a wider-scale adoption of [Full Self Driving, Tesla’s suite of advanced driver assistance systems to navigate city streets], continued growth in the energy business, expanding into new markets, and a possible AI [Artificial Intelligence] Day.” Palo Alto Networks Inc soared +14.84% after the cybersecurity firm’s fiscal fourth quarter result released after the close of last Friday’s (18 August) session topped consensus analysts forecasts, as did forecasts for profit and billings.
Following their FY23 reporting, Aurizon (AZJ) CFO, George Lippiatt gives some key highlights of the business and key messages from the July 2023 Investor Day.
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Morgans Senior Analyst, Nick Harris comments on TLS’s FY23 result and FY24 guidance, which were all largely in-line with expectations.
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Morgans Research Analyst Alex Lu makes his comments on the reporting season results from Orora (ORA), PWR Holdings (PWH) & Endeavour Group (EDV).
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US equity markets little changed on Friday (18 August) as gains for more defensive sectors and Energy offset fresh weakness among megacap technology names - Dow edged +26-points or +0.07% higher, snapping a three-session losing streak. The broader S&P500 dipped -0.01%, with Communication Services (down -0.98%) leading five of the eleven primary sectors lower. Energy (up +0.94%) sat atop the primary sector leaderboard, with Devon Energy up +1.90%, Marathon Oil +1.49% and Occidental Petroleum +1.44%. The Nasdaq slipped -0.20%, with Alphabet Inc (-1.80%), Amazon.com Inc (-0.57%), Meta Platforms Inc (down -0.65%) and Microsoft Corp (-0.13%) all weaker. The small capitalisation Russell 2000 rose +0.51%.
Morgans Chief Economist Michael Knox explains that faster than expected US growth is driving US bond yields higher.
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US equity markets retreated, once again selling off late in the session as longer dated Treasury yields continued to climb - Dow fell -291-points or -0.84% to 34,474.83, closing below its 50-day moving average for the first time since 1 July. The broader S&P500 dropped -0.77%, with Consumer Discretionary (down -1.27%) and Consumer Staples (-1.01%) leading ten of the eleven primary sectors lower overnight. Energy (up +1.11%) was the only primary sector to advance. The Nasdaq shed -1.17%, with Alphabet Inc (up +0.95%) the only member of the so-called ‘Magnificent Seven’ of technology megacaps to advance. Meta Platforms Inc (down -3.13% at US$285.09) joined Apple Inc (-1.46%), Microsoft Corp (-1.10%) and Nvidia Corp (-0.33%) in official correction territory, down at least 10% from its most recent peak (US$325.48 set on 28 July). Tesla Inc (down -2.83%) is in official bear market territory, down more than >20% from its most recent peak. Only Alphabet and Amazon.com Inc (down -0.81%) remain in bull market territory. Meta Platforms still remains the second best performer in the S&P500 year-to-date, up +136.9%. The small capitalisation Russell 2000 lost -1.15%.
Morgans Head of Research Alex Mees comments on JBH’s FY23 result, which showed again that it is a very strong retailer, with brand resilience and first class operational execution. FY23 NPAT was 6% higher than forecast due to more resilient sales and gross margins.
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US equity markets retreated to five week lows and longer term Treasury yields hit their highest levels since October last year as strong retail sales figures stirred concerns that US interest rates could remain higher for longer - Dow fell -361-points or -1.02%, snapping a three session winning streak. The broader S&P500 fell -1.16% to 4,437.86, sliding below its 50-day moving average for the first time since 28 March (snapping a 96-day streak of closes above the 50-day, the index’s longest since a 102-session streak ended on 17 September, 2020) and logging its lowest close since 11 July. Energy (down -2.44%) led all eleven primary sectors lower. Financials (-1.91%), Utilities (-1.69%), and Materials (-1.65%) all fell over >1.5%. The technology-centric Nasdaq lost -1.14%. The small capitalisation Russell 2000 lost -1.29%.
Senior Analyst Nathan Lead comments on AZJ's FY23 EBITDA, which in aggregate was as expected, and FY24 EBITDA growth guidance had already been provided. The step-up in interest costs is a negative surprise for the market, as is the decline in dividend franking for income-oriented investors.
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AGL Energy (ASX:AGL) reported a much stronger 2H23 but it is facing structurally higher costs and capital expenditure. For now higher tariffs are supporting higher earnings but we see headwinds returning in the medium term.
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US equity markets recovered from earlier session losses, buoyed by a rebound for some megacap technology names and with investors eying earnings reports from some major retailers and along with the latest retail sales figures that could shed some light on the health of the US consumer - Dow edged +26-points or +0.07% higher, The broader S&P500 rose +0.58%, with Information Technology (up +1.85%) and Communication Services (+1.04%) rising over >1% and leading six of the eleven primary sectors higher. The more defensive Utilities (down -0.83%), Real Estate (-0.54%) and Consumer Staples (-0.52%) sat at the foot of the primary sector leaderboard. Tesla Inc fell -1.19% after the electric-vehicle maker cut the cost of two versions of its Model Y SUVs by ~US$1,900 in China. In early August, Tesla reported China deliveries slumped -31% in July to their lowest point of the year.
Morgans Analyst Steven Sassine comment on REA Group's (ASX:REA) FY23 result, which was small beat vs Visible Alpha consensus.
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The S&P500 and Nasdaq fell on Friday (11 August) and posted their second straight weekly losses, as hotter-than-expected U.S. producer prices data pushed Treasury yields higher and pressured rate-sensitive megacap growth stocks – Dow rose +105-points or +0.30%, with energy giant Chevron Corp (up +2.06%) and pharmaceutical major Merck & Co (+1.77%) The broader S&P500 slipped -0.11% to 4,464.05, with Information Technology (down -0.88%) leading four of the eleven primary sectors lower. Energy (up +1.56%) sat atop the primary sector leaderboard. Tesla Inc fell -1.10% a day after a pair of exchange-traded funds (ETF) managed by Cathie Wood’s ARK Investment sold more shares in the electric vehicle manufacturer. Through Friday’s (11 August) close, the S&P500 index is still up nearly 25% from its bear-market closing low of 3,577.03 hit on 12 October. The Nasdaq fell -0.68%, with semiconductor stocks particularly weak including Advanced Micro Devices Inc -2.41%, Nvidia Corp -3.62% and Micron Technology Inc -1.64%. Foxconn Technology Group (also know as Hon Hai Technology Group), the company responsible for manufacturing Apple Inc’s (up +0.03%) iPhone in China, reports its second quarter result today. The small capitalisation Russell 2000 edged +0.13% higher.
In this episode, we chat with Joseph Healy from Judo Bank. Our previous episode was recorded in August 2020. Since then, the company has been listed on the ASX and raised significantly more capital alongside enormous loan growth. Joseph talks about his vision of becoming a world-class SME bank, the challenges, the opportunities, and what makes him proud.
This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.
Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/ On Instagram: www.instagram.com/hellosub11/ On Twitter: twitter.com/hellosub11 On LinkedIn: www.linkedin.com/company/sub11/ Follow Chris Titley: www.linkedin.com/in/ctitley/
The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.
This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.
Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
US equity markets settled little changed, with all three benchmark indices relinquishing earlier gains of over >1% as investors balanced softer inflation figures against a weaker-than-expected 30-year bond auction - Dow eked out a +3-point gain to 35,126.12, paring an earlier rally of as much as +450-points. Walt Disney Co rallied +4.88% despite a mixed fiscal third quarter result released after the close of the previous session, with the company announcing an upcoming price hike for ad-free Disney+ subscriptions. The broader S&P500 inched +0.03% higher, with gains for Communication Services (up +0.43%) and Consumer Discretionary (+0.28%) largely offset by declines for Utilities (down -0.32%) and Real Estate (-0.31%). The technology-centric Nasdaq edged +0.08% higher. Among the so-called “Magnificent Seven” stocks credited with being the biggest contributors to this year’s rally, Apple Inc (down -0.12%), Nvidia Corp (-0.39%), Microsoft Corp (up +0.22%) and Tesla Inc (+1.30%) all closed below their 50-day averages this week. The small capitalisation Russell 2000 lost -0.42%.
Morgans Research Analyst Max Vickerson interviews Dougal Elder of Sayona Mining (SYA). SYA is an emerging leader in the supply of lithium for North America's electrification.
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Morgans Senior Analyst Nathan Lead comments on the Commonwealth Bank (ASX:CBA)reporting season results, saying, while CBA delivered a mild beat of expectations for 2H23 (declining) earnings, the continuing asset quality strength and capital management initiatives (material uplift in dividend, new $1bn share buyback) were also noteworthy.
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Morgans Senior Analyst Tom Sartor sits down with Adriatic Metals Managing Director and CEO Paul Cronin. Adriatic Metals is in the final phase of construction at its world-class Vares polymetallic project in Bosnia & Herzegovina, Central Europe.
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US equity markets retreated as investors’ attention turned to tonight’s AEST inflation figures - Dow fell -191-points or -0.54%, with Salesforce.com Inc (down -2.70%) and Intel Corp (-2.11%), while Goldman Sachs Group Inc (-1.60%) and JPMorgan Chase & Co (-1.34%) were also notable underperformers. The broader S&P500 lost -0.70%, with Information Technology (down -1.51%), Communication Services (-1.24%) and Consumer Discretionary (-1.20%) all down over >1% to lead seven of the eleven primary sectors lower. Energy (up +1.22%) sat atop the primary sector leaderboard. The technology-centric Nasdaq shed -1.17%, with Apple Inc falling -0.90% and Amazon.com Inc -1.49%. Nvidia Corp -4.72% amid concerns the chipmaker is facing supply constraints for popular graphics chips. Super Micro Computer Inc (down -23.39%) Chief Executive Charles Liang told analysts on the company’s earnings call that the company is seeing supply constraints for the graphics chips coming from Nvidia that are designed for artificial intelligence (AI) applications.. The small capitalisation Russell 2000 lost -0.86%.
IEA numbers suggest a tight market for oil.
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US equity markets retreated following the release of weak China international trade data for July that heightened concerns about a slowing global economy, while Moody’s Investors Service downgraded the credit ratings of 10 banks and placed six banking giants on review for potential downgrades - Dow fell -159-points or -0.45%, paring an earlier decline of as much as -465-points. Goldman Sachs Group Inc fell -2.05%. The broader S&P500 lost -0.42%, with Materials (down -1.05%) leading eight of the eleven primary sectors lower. Healthcare (up +0.78%), Utilities (+0.49%) and Energy (+0.49) were the only primary sectors to advance overnight. The Nasdaq declined -0.79%. Both the S&P500 and Nasdaq were down over >1% at their session lows and have declined for five of the past six sessions. The small capitalisation Russell 2000 lost -0.59%.
Morgans Senior Analyst Chris Brown interviewed Tony Schreck, the MD of Pacgold (PGO) which is a gold exploration company focused on progressing its key asset, the Alice River Gold Project in North Queensland.
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Westgold MD Wayne Bramwell talks with Morgans Analyst Sharad Bhat about their upcoming quarterly announcements. Westgold (WGX) is a West Australian focussed gold miner.
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US equity markets rebounded, with the Dow recording its best session since mid-June, while the S&P500 and Nasdaq arrested a four session slide - Dow rallied +408-points or +1.16%, logging its largest one-day point and percentage gain since 15 June. The broader S&P500 rose +0.90% in a broad-based rally that saw ten of the eleven primary sectors advance, led by Communication Services (up +1.88%). Utilities (down -0.02%) was the only primary sector to settle in the red. Tesla Inc lost -0.95% after the electric vehicle maker announced the immediate departure of its Chief Financial Officer (CFO) Zachary Kirkhorn after four years in the role and thirteen years with the company more broadly. Mr Kirkhorn was replaced by Vaibhav Taneja, previously Tesla’s chief accounting officer. The Nasdaq +0.61%. The small capitalisation Russell 2000 lost -0.49%. Berkshire Hathaway Inc class B shares closed at a record high (up +3.60% at US$362.58) following the release of the conglomerate’s second quarter result on Saturday (5 August).
Morgans Senior Analyst Dr Derek Jellinek gives an update on ResMed's mixed 4Q, as strong sales across all product lines failed to translate into operating leverage.
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US equity markets retreated on Friday (4 August) as the dust settled on some major technology results and investors digested the latest non-farm payrolls report - Dow fell -150-points or -0.43%, with The broader S&P500 lost -0.53%, with Information Technology (down -1.4%), Utilities (-1.21%) and Consumer Staples (-1.02%) falling over >1% to lead nine of the eleven primary sectors lower. Consumer Discretionary (up +1.91%) and Energy (+0.03%) were the only primary sectors to advance on Friday (4 August). It’s been 113 trading sessions since the S&P 500 has seen a daily drop of 2% or more, the longest such stretch since 21 February, 2020, according to Dow Jones Market Data. When measured by the total number of 2% swings in either direction, last year was the most volatile for U.S. stocks since 2009. The S&P 500 recorded 46 daily swings of 2% or more in either direction last year, compared with 55 in 2009, according to Dow Jones Market Data. Of those, roughly half were down days.
US equity markets retreated as longer dated Treasury yields climbed to nine month highs - Dow slipped -67-points or -0.19%, The broader S&P500 eased -0.25%, with Utilities (down -2.29%) and Real Estate (-1.35%) leading nine of the eleven primary sectors lower and dragging the index lower for a third straight session. PayPal Holdings Inc tumbled -12.32% Energy (up +0.95%) and Consumer Discretionary (+0.34%) were the only primary sectors to advance. The Nasdaq dipped -0.10%. Qualcomm Inc shed -8.18% The small capitalisation Russell 2000 eased -0.28%.
Morgans Analyst Max Vickerson interviews GHY's Managing Director Neil McDonald about Natural Hydrogen as a commodity and what exactly it is. Neil also discusses Gold Hydrogen's exploration licences over known occurrences of natural hydrogen in South Australia.
"Gold Hydrogen is exploring the future of clean energy in Australia, looking for more affordable and sustainable ways to produce hydrogen power." - https://www.goldhydrogen.com.au/
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Morgans Chief Economist Michael Knox thinks the RBA has paused rate hikes to allow time for Michelle Bullock to calmly take up the role of Governor from Philip Lowe.
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US equity markets retreated a day after Fitch Ratings lowered its U.S. debt ratings to AA+ from the top AAA category, pointing to its growing debt burden and “erosion of governance” over the past two decades - Dow fell -348-points or -0.98%, with Intel Corp down -3.94% and Walt Disney Co -3.07%. The broader S&P500 dropped -1.38%, booking its biggest daily percentage decline since 25 April. The technology-centric Nasdaq shed -2.17%. Advanced Micro Devices Inc dropped -7.02% despite the chipmaker posting better-than-expected second quarter adjusted earnings per share and revenue after the close of the previous session. Amazon.com Inc (-2.64%) and Apple Inc (-1.55%) declined ahead of the release of their quarterly results tonight AEST, while Alphabet Inc (down -2.41%), Microsoft Corp (-2.63%) and Nvidia Corp (-4.81%) all fell over >2%. The small capitalisation Russell 2000 lost -1.37%. Chinese tech names JD.com Inc (down -4.47%) and Baidu Inc (-4.24%) fell more than >4% after China proposed limits on smartphone use for minors.
Atlantic Lithium is a lithium-focused exploration and development company advancing its flagship Ewoyaa Project in Ghana, West Africa to production. Keith speaks to Morgans Analyst Kyle Williams about the recent DFS release for the Ewoyaa Project and the outlook for the project over the next 12-18 months.
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Catalyst Metals Limited is a gold mining and development company listed on the ASX. Bruce Kay speaks to Morgans Senior Analyst Chris Brown about some recent discoveries and upcoming projects from CYL.
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A mixed session for US equity markets to open August as investors continued to assess a raft of quarterly earnings releases and eyed Friday night’s AEST (4 August) key non-farm payrolls report - Dow added +71-points or +0.20%, touching its highest intra-session level since February 2022 earlier in the session. The broader S&P500 eased -0.27%, pulling back from a 16-month high. Utilities (down -1.26%) and Consumer Discretionary (-1.15%) both declined over >1% to lead nine of eleven primary sectors lower overnight. Tesla Inc fell -2.38% following reports that almost 300K Tesla Model 3s and Model Ys are the subject of a fresh investigation by the National Highway Traffic Safety Administration into their steering after a dozen complaints alleging loss of steering control. Industrials (up +0.32%) and Information Technology (+0.09%) were the only primary sectors to advance. The Nasdaq -0.43%. Apple Inc (down -0.43%) and Amazon.com Inc (-1.49%) The small capitalisation Russell 2000 lost -0.45%.
André talks to Morgans Senior Analyst Chris Brown and gives an updated outlook on the Tritton Copper Operations in NSW Australia, the Cracow Gold mine, among other operations from Aeris Resources.
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EQ Resources CEO Kevin MacNeill gives an update on their tungsten assets at Mt Carbine in North Queensland, the importance of tungsten as a critical mineral and what's to come over the next 12 months from EQR.
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US equity markets logged modest gains to close out July amid optimism over corporate earnings and a resilient economy, and ahead of a busy week in terms of quarterly results and economic releases - Dow up +100-points or +0.28% at 35,559.53, the 30-stock index’s highest settlement since 9 February, 2022. The broader S&P500 edged +0.15% to 4,588.96, logging its highest close since 30 March, 2022 and settling ~4.3% below its record closing high of set on 3 January, 2022. Energy rallied +2.0% to lead eight of the eleven primary sectors higher. Health Care (down -0.79%) and Consumer Staples (-0.46%) sat at the foot of the primary sector leaderboard overnight The Nasdaq added +0.21%. The small capitalisation Russell 2000 rallied +1.09%.
US equity markets closed out the week on positive note on Friday (28 July), with investors buoyed by upbeat corporate earnings releases and cooling inflation data - Dow rose +177-points or +0.5%, Intel Corp rallied +6.60% after the chipmaker’s second-quarter earnings released after the close of last Thursday’s (27 July) session recorded a return to profitability after two straight quarters of losses, accompanied by stronger-than-expected third quarter forecast The broader S&P500 gained +0.99% to 4,582.23, logging its highest close since 4 April, 2022. Communication Services (up +2.30%) sat atop the primary sector leaderboard on Friday (28 July) for a third straight session, while Consumer Discretionary (+1.85%) and Information Technology (+1.48%) gained over >1%. The more defensive Real Estate and Utilities sectors both declined -0.26% and were the only primary sectors to settle in the red. The Nasdaq rallied +1.90%, with Alphabet Inc rising +2.46% to log its highest close in more than a year (US$132.58), and extending its weekly gain to +10.56% following their strong second quarter result earlier in the week. The small capitalisation Russell 2000 gained +1.36%. Roku Inc soared +31.41% ) after the streaming company’s second quarter results released after the close of the previous session topped consensus estimates at the top and bottom line.
US equity markets retreated, with the Dow Jones Industrial Average snapping it longest winning streak since 20 January, 1987 as Treasury yields climbed following stronger-than-expected second quarter economic growth figures - Dow lost -237-points or -0.67% after rising for thirteen consecutive session. The broader S&P500 fell -0.64%, with Real Estate (down -2.12%), Utilities (-1.73%) and Financials (-1.29%) all falling over >1% to lead ten of the eleven primary sectors lower. Communication Services (up +0.85%) was the only primary sector to settle in positive territory. The Nasdaq eased -0.55%. Meta Platforms Inc rallied +4.40% The small capitalisation Russell 2000 lost -1.29%.
When will the FED start cutting interest rates? Morgans Chief Economist Michael Knox says there are still more hikes to come, following a FED rate hike of 25 points in July, as expected. Another 25-point hike is expected in September.
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US equity markets settled little changed after a choppy session that saw investors digest a host of quarterly results and the latest interest rate decision and monetary policy pronouncements from the Federal Reserve - Dow added -82-points or +0.23%, marking the 30-stock index’s 13th consecutive gain and longest winning streak since 20 January, 1987. One more day in the green and the blue-chip gauge will be able to claim its longest winning streak in more than 125 years (noting that the Dow was created in May 1896). The broader S&P500 dipped -0.02%, with Information Technology (down -1.30%) leading six of the eleven primary sectors lower. Communication Services sat atop the primary sector leaderboard with a +2.65% rally, underpinned by a strong gain for Alphabet Inc (up +5.78%) after the search giant reported better-than-expected second quarter earnings per share and revenue after the close of the previous session. The Nasdaq slipped -0.10%. Microsoft Corp fell -3.76% as investors continued to digest the company’s latest quarterly result released after the close of the previous session. The small capitalisation Russell 2000 gained +0.72%.
US equity markets drifted higher ahead of the release of second quarter results from major technology companies after the closing bell - Dow edged +27-points or +0.08% higher to 35,438.07, extending its rally into a 12th consecutive session to and recording its highest close since February, 2022. The broader S&P500 added +0.28%, with Materials (up +1.76%) and Information Technology (+1.19%) rising over >1% and leaving five of the eleven primary sectors higher overnight. Financials (down -0.83%) sat at the foot of the primary sector leaderboard. The Nasdaq rose +0.61%. The small capitalisation Russell 2000 eked out a +0.02% gain.
US equity markets advanced to kick off a busy week of key quarterly earnings releases, central bank meetings and inflation data - Dow rose for an eleventh straight session, up +184-points or +0.52% to 35,411.24. The 30-stock index logged its highest close since 9 February, 2022 and secured its longest winning streak since the 12-day trading period that ended on 27 February, 2017. The broader S&P500 gained +0.40% to 4,554.64, settling ~5% shy of it record closing high of 4,796.56 set on 3 January, 2022. Energy (up +1.66%) led nine of the eleven primary sectors higher, while the more defensive Utilities (down -0.28%) and Health Care (-0.23%) sectors sat at the foot of the primary sector leaderboard. Chevron Corp gained +1.97% after releasing a second-quarter performance update on Sunday (23 July) that was better than expected ahead of the oil major’s earnings announcement this Friday night AEST (28 July). Adjusted earnings per share (EPS) of US$3.08 (down ~47% year-on-year) topped consensus forecasts for US$2.97. The Nasdaq edged +0.19% higher, with investors eyeing second quarter earnings from a number of technology heavyweights this week including Alphabet Inc (up +1.26%), Meta Platforms Inc (down -0.90%) and Microsoft Corp (+0.39%). The small capitalisation Russell 2000 added +0.28%.
US equity markets little changed on Friday (21 July) after a choppy trading session that saw the monthly expiration of US$2.3 trillion of listed stock options (the largest on record), and with investors preparing for a major rebalancing of the Nasdaq-100 after the closing bell (designed to diminish the concentration risk) - Dow eked out a +2.5-point or +0.01%, securing its tenth consecutive session advance and longest winning streak since 7 August, 2017. The broader S&P500 inched +0.03% higher. The Nasdaq slipped -0.22%. Nvidia Corp (down -2.66%) and Microsoft Corp (-0.89%) are the two companies most affected by the Nasdaq rebalancing. The small capitalisation Russell 2000 lost -0.35%.
US equity markets weaker, with the Nasdaq recording its biggest one-day drop in more than four months as investors reacted to second quarter results - Dow rose +164-points or +0.47%, recording its first 9-day rally since 2017.
US equity markets settled modestly firmer as investors continued to digest second quarter results, including some heavyweight names after the closing bell - Dow up +109-points or +0.31% to 35,061.21, extending its rally into a eighth consecutive session (its longest winning streak in 4-years) and marking the first time that the 30-stock index has settled above 35,000 since 20 April, 2020. The broader S&P500 added +0.24%, with Real Estate (up +1.12%) and Utilities (+1.02%) rising over >1% and leading eight of the eleven primary sectors higher. Materials (down -0.52%) and Information Technology (-0.27%) sat at the foot of the primary sector leaderboard overnight. The Nasdaq inched +0.02% higher. Apple Inc closed 0.71% higher, rising as much as 2.3% earlier in the session after a media report said it was building generative artificial intelligence tools, which could challenge products such as OpenAI’s ChatGPT. Microsoft Corp fell -1.23% to snap a six session winning streak. The small capitalisation Russell 2000 added +0.45%.
People who hoped for a US soft landing should be careful what they wish for.
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US equity markets continued to climb, with all three benchmark indices settling at 15-month highs following some upbeat earnings releases from major banks
Morgans analysts preview the results for 145 stocks under coverage that report in August and call out likely surprise and disappoint candidates. Download the Morgans Reporting Season Playbook here: https://www.morgans.com.au/Blog/2023/July/Australia-Strategy-Reporting-Season-Playbook
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The S&P 500 and Nasdaq Composite closed at 15-month highs, while the Dow Jones Industrial Average notched a sixth straight session of gains as investors shrugged off the latest round of soft China economic data and braced for a wave of second quarter results later this week - Dow added +76-points or +0.22% to 34,585.35, marking the highest close since 30 November, 2022.
A mixed session on Friday (14 July) to close out a strong week for US equity markets as investors digested second quarter results from some of America’s largest financial institutions - Dow rose +114-points or +0.33%, The broader S&P500 slipped -0.10%, snapping a four session winning streak. The index settled above the >4,500 level for the first time since 5 April, 2022 last Thursday (13 July), and hit a record close of 4,796.56 in January last year. The Energy sector (down -2.45%) led eight of the eleven primary sectors lower. Health Care (up +1.50%) sat atop the primary sector leaderboard. The Nasdaq eased -0.18%. The small capitalisation Russell 2000 lost -0.49%.
US equity markets climbed for a fourth consecutive session as wholesale inflation cooled further, and ahead of the release of second quarter results from some of the US’ biggest banks tonight AEST - Dow added +47-points or +0.10%. Walt Disney Co added +0.35% after the company’s board extended Chief Executive Bob Iger’s contract for two more years, through December 2026. The broader S&P500 +0.85% to 4,510.04, settling above the >4,500 level for the first time since 5 April, 2022. Communication Services rallied +2.32% to lead nine of the elven primary sectors higher. Energy (down -0.45%) sat at the foot of the primary sector leaderboard. The Nasdaq +1.58%. Amazon.com Inc rallied +2.68% after the company said the first day of its Prime Day shopping event drove its best sales performance yet. The small capitalisation Russell 2000 gained +0.91%.
Morgans Chief Economist Michael Knox gives us a debrief from the Economics Society of Australia's business lunch; where the RBA governor Philip Lowe announced changes following the RBA review, which creates "A Federal Reserve With Australian Characteristics.”
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Morgans Co-head of Research Alex Mees gives us a sector update on Discretionary Retail stocks in our universe.
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US equity markets extended their rebound into a third consecutive session as investors digested a cooler-than-expected inflation report - Dow added +86-points or +0.25%. The broader S&P500 climbed +0.74% to 4,472.16, recording its highest settlement since 8 April, 2022. Domino's Pizza Inc jumped +11.09% after the pizza chain said it entered into a new global agreement with Uber Technologies Inc (+0.36%) that allows U.S. customers to order Domino’s products through Uber Eats and Postmates apps. Domino’s will still be making the deliveries. The technology-centric Nasdaq outperformed, rallying +1.15% to 13,914.48 and logging its highest close since 5 April, 2022. Nvidia Corp (up +3.53%) and Intel Corp (+2.04%), with the Financial Times reporting that UK chip designer Arm is in talks to bring both US semiconductor companies onboard as anchor investors as the SoftBank-owned company presses ahead with plans for a New York listing as soon as September. Nvidia, the world’s most valuable semiconductor company, was forced last year to abandon its planned US$66B acquisition of Arm after the deal was challenged by regulators. The small capitalisation Russell 2000 rose +1.05%.
US equity markets logged back-to-back session gains following a late rally ahead of key inflation figures tonight AEST - Dow rallied +317-points or +0.93%, marking its biggest daily percentage gain since 15 June. Salesforce.com Inc logged its biggest one day advance in four months (up +3.93%) after the client relationship software management group announced it was raising prices for some of its products, the first increase in seven years. The San Francisco-based company said that it would raise list prices in August by an average of 9% across its suite of products, which include Sales Cloud and Tableau. Boeing Co gained +2.55% after the commercial aerospace giant delivered more jets (136 commercial airliners, including 60 jets in June) than expected in the second quarter. The broader S&P500 gained +0.67%, with Energy (up +2.20%) leading all eleven primary sectors higher. The Nasdaq rose +0.55%.
US equity markets logged their first advance in four session overnight as investors eye key US inflation figures and the start of the US second quarter earnings season later this week - Dow rose +210-points or +0.62%, The broader S&P500 added +0.24%, with Industrials (up +1.39%) leading seven of the eleven primary sectors higher. Communication Services sat at the foot of the primary sector leaderboard with a -0.92% decline. The Nasdaq edged +0.18% higher. The small capitalisation Russell 2000 outperformed with a +1.64% rally.
Stocks fell on Friday, and finished lower for the week, as Wall Street struggled to shake off fears that the Federal Reserve may start hiking rates again later this month. The S&P 500 lost -0.29%, the Nasdaq dipped -0.13% while the Dow dropped 187 points, or -0.55%. Energy went from worst to best sector gaining +2.06%, while materials gained +0.88%. Consumer staples fell -1.34% and health care lost -1.16%.
U.S. stocks ended off session lows but suffered broad losses Thursday after data showed the private sector created nearly half a million new jobs in June, sending Treasury yields higher as investors recalibrated interest-rate expectations.
Our model, based on the International Energy Agency's (IEA) estimates, suggests an oil price of $US113 per barrel in Q2 2024.
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US equity markets slid on Wednesday as Wall Street resumed a holiday-shortened week and digested the latest Federal Reserve meeting minutes for insights into the state of monetary policy. The Dow Jones lost 129.83 points, or 0.38%, to finish at 34,288.64. The S&P 500 fell 0.20% to end at 4,446.82, and the Nasdaq Composite slipped 0.18% to 13,791.65. The small capitalisation Russell 2000 lost -23.87 or -1.26%.
European bourses closed mixed on Tuesday, with investors in a cautious mood ahead of data releases and the start of second-quarter earnings season. The pan-European Stoxx 600 ended +0.32 points of 0.07% higher after a day of muted trade. Health-care and tech stocks led gains, up 0.5%, as banking stocks dropped 0.6%. Germany's DAX was down +0.42% and France's CAC was down 0.17%.
US equity markets rose slightly Monday in a shortened session that kicked off the second half of what’s already been a stellar year on Wall Street. The Dow Jones added 10.87 points, or 0.03%, to finish at 34,418.47. The S&P 500 climbed 0.12% to end at 4,455.59, while the Nasdaq Composite advanced 0.21% to 13,816.77. The small capitalisation Russell 2000 added +8.05 or +0.43%.
US equity markets rose Friday and technology names continued their staggering run to cap off a strong start to the year, and the best first half for the Nasdaq Composite since 1983 US equity markets – The Dow up +285.18 points or +0.84% . The broader S&P500 edged 53.94 points or +1.23%. The Nasdaq +1.45% to finish at 13,787.92. The small capitalisation Russell 2000 was up 0.38%.
US equity markets rose overnight, led by the major banks after passing the Federal Reserve’s annual stress test - Dow rose +269.76-points or +0.80%.
US equity markets were little changed, after Federal Reserve Chairman Jerome Powell said he won’t rule out back-to-back rate increases, in a meeting with other global central bankers - Dow shed -72-points or -0.2%. The broader S&P500 edged -0.04% lower. Energy (+1.02%) and Communications Services (0.80%) leading four of eleven sectors in the green. Apple shares added +0.6% to record highs, edging its way to a US$3 trillion valuation, whilst Google parent Alphabet rose +1.74%. The Nasdaq gained +0.03%, on track for its best start to a year in 40 years. Shares of NVIDIA ended -1.81% down after reports of a potential new export restrictions on sales to China. Tesla shares jumped +2.4%, ahead of the company’s second-quarter deliveries expected this week. Netflix gained +3.06% after broker upgrades. The small capitalisation Russell 2000 was up +0.47%.
US equity markets rose on Tuesday, as technology shares climbed, and housing data pointed to continued resilience in the US economy. Dow up +211 points or +0.6%. Walgreens shed -9.3% after slashing its full-year profit guidance and reporting weaker-than-expected earnings. The broader S&P500 edged +1.1%, posting its best daily percentage gain since June 15. Information technology (+2%) and Consumer Discretionary (+2%) led 10 of the 11 sectors higher. Delta Air Lines surged +6.8% after they boosted its financial guidance, signalling a continued post-pandemic travel boom. This lifted competitors United Airlines (+5.08%) and American Airlines (+5.54%). The technology centric Nasdaq rose +1.7%, NVIDIA (+3.06%), Meta (+3.08%) and Microsoft (+1.82%) contributing to the index gains. Friday marks the end of the second quarter and first half of 2023. The Nasdaq has gained 10.9% since April and 29.5% this year. It’s on pace for its best first half in 40 years. The S&P and Dow are on track to finish the quarter up +6.6% and +2% respectively. The small capitalisation Russell 2000 rose +1.46%.
US equity markets closed lower overnight, as investors enter the final trading week of the first half of the year. The Dow dipped -12.72 points or -0.04%. The broader S&P500 lost -0.45%. Gains in Energy (+1.71%) and Real Estate (+2.21) were outweighed by declines in Communication Services (-1.88%) and Technology (-1.25%). Cruise operator Carnival led the way lower, dropping -7.7% after reporting a second-quarter loss and higher costs. The sell-off spilled over into shares of Norwegian Cruise Line, which fell -4.5%. The daily losses notwithstanding, both stocks (Carnival & Norwegian) have performed solidly in June. The Nasdaq shed -1.2% after a pullback in technology giants Nvidia (-3.74%), Alphabet (-3.93%), Meta (3.55%), while Tesla (-6.06%) fell as Goldman Sachs downgraded the electric car maker, citing pricing headwinds.
US equity markets slid on Friday to end the week on the red. Dow fell -219.28 points or -0.65% . The broader S&P500 slid -0.77%. The Nasdaq closed down -1.01%. The small capitalisation Russell 2000 ended -1.44% lower. The pullback was broad-based with all 11 sectors of the S&P500 closing in the red. Chip stocks underperformed after surging this year on investor enthusiasm over artificial intelligence. Nvidia, the best-performing stock in the S&P 500 this year, fell -1.9% on Friday, while Advanced Micro Devices fell -0.6%. Goldman Sachs shares declined -1.5% after CNBC reported the investment bank likely faces a large write down for its 2021 acquisition of fintech firm GreenSky. In contrast, CarMax shares jumped +10% after the used car retailer exceeded first quarter expectations. Other notable declines were US-based resource companies, Anglo-American down -3.56%, Glencore down -2.99%, Freeport McMoran -3.4%.
US equity markets finished mostly higher on Thursday, with both the Nasdaq and S&P 500 bringing a three-day losing streak to an end as investors digested fresh commentary from Federal Reserve Chairman Jerome Powell and a raft of interest-rate hikes from global central banks - Dow fell -4-points or -0.01% with Boeing Company leading the losses down -3.05% after Spirit AeroSystems (-9.43%) said that its unionized workers have voted for a strike, which is causing Spirit to suspend factory operations. Boeing Company has now fallen -6.5% for the week.
US equity markets closed lower on Wednesday, for a third session in a row, retreating after recently touching their highest levels in more than a year - Dow fell -102-points or -0.30% to 33,951 with Intel suffering a further 6% fall after the company gave investors an update on the company’s turnaround plan to become a chip manufacturing company competing with Taiwan Semiconductor Manufacturing Company.
US equity markets closed lower on Tuesday, after the S&P 500 on Friday booked a fifth straight week of gains with some stocks touching their highest level in more than a year - Dow fell -245-points or -0.72%. Intel, Nike and Boeing, each down by more than 3%. The broader S&P500 shed 18 points or +0.47%, as investors await testimony from Federal Reserve chair Jerome Powell to Congress this week. Energy (-2.29%) and Materials (-1.26%) were the biggest laggards that saw ten of the eleven primary sectors close lower overnight. Consumer discretionary rose. PayPal Holdings (PYPL) shares gained 3.7% after the digital payment platform announced a deal in which KKR - managed funds and accounts will purchase up to €40 billion of buy now, pay later loan receivables originated in Europe. The technology-centric Nasdaq fell +0.18%. Intel (INTC) declined -3.8%. The Israeli government said the chip maker was investing $25 billion to manufacture semiconductors in the country, just days after Intel announced a new facility in Poland. Electric vehicle maker Rivian Automotive (RIVN) climbed 5.5% after the company announced it would adopt Tesla’s (TSLA) charging plug and technology. Tesla shares also finished 5.3% higher after the announcement. US depositary Alibaba (BABA) fell 4.5% after the Chinese e-commerce giant said Daniel Zhang will be stepping down as chairman and chief executive. He will remain as leader of the company’s cloud intelligence group, which the company announced last month would be spun off. The small capitalisation Russell 2000 lost -0.34%.
European bourses started the week in the red amid caution following the previous weeks big gains and regarding China’s growth prospects. The pan-European Stoxx 600 index (which includes UK equities) fell -1.02% to 462.04 with basic resources leading the losses (-2.2%), while Germany’s DAX fell by 0.96% at 16,201.20. France's CAC meanwhile slipped +1.01%.
US equity markets retreated ahead of the holiday long weekend, taking a breather following a six-session winning streak that had lifted the S&P500 and Nasdaq to 14-month highs - Dow fell -109-points or -0.32%, The broader S&P500 -0.37%, with Communication Services (down -1.00%) and Information Technology (-0.83%) leading eight of the eleven primary sectors lower. Utilities outperformed on Friday (16 June) with a +0.53% gain. The Nasdaq -0.68%. Apple Inc (down -0.59%) and Microsoft Corp (-1.66%) retreated from record highs. The small capitalisation Russell 2000 lost -0.73%.
US equity markets rallied, with both the S&P500 and Nasdaq climbing to fresh 14-month highs as economic data showed signs of the labour market softening and consumer spending moderating, potentially lessening the need for further interest rate rises from the Federal Reserve - Dow gained +429-points or +1.26% to 34,408.06 and a fresh 2023 high. The broader S&P500 +1.22% to 4,425.84, recording a sixth consecutive session of gains and lifting the index above the >4,400 level a week after the large capitalisation benchmark exited its the longest bear market since 1948. It also marked the longest stretch of straight gains since November 8, 2021, according to Dow Jones Market Data. Health Care (up +1.55%), Communication Services (+1.54%) and Industrials (+1.51%) all gained over >1.5% to lad all eleven primary sectors higher. The Nasdaq climbed +1.15% to 13,782.82, marking the highest settlement for the technology centric index since 7 April, 2022. Microsoft Corp gained +3.19% to US$348.10, extending gains into a sixth consecutive session and booking a record closing high as investors seemingly focused more on the tech giant’s artificial-intelligence (AI) roadmap instead of the stalled US$69B acquisition of videogame publisher Activision Blizzard Inc (+0.27%). The small capitalisation Russell 2000 rose +0.81%. The US-listed shares of Alibaba Group Holding Ltd gained +3.18% after announcing that it will expand one of its key China e-commerce sites, Tmall, into Europe. The announcement comes just over two months after Alibaba, China’s biggest e-commerce firm, announced plans to split its business into six units, a move designed to give each unit more autonomy and faster decision-making powers.
In this episode, Chris speaks to Morgans Senior Analyst Nathan Lead who covers the Banks sector. Nathan Lead has over 20 years of experience in the financial services industry and has specialised as an equities research analyst since 2005, specialising in infrastructure. More recently Nathan has become the leading research analyst covering the Banks sector at Morgans.
This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.
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The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.
This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.
Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
The summary of economic projections for June suggests there will be two more rate hikes from the Federal Reserve. One in July and another in September. Morgans Chief Economist discusses when we may see a reduction in interest rates.
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US equity markets mixed after a volatile trading session that saw both the S&P500 and Nasdaq log their highest intra-session peaks since April 2022 - Dow fell -233-points or -0.68%, UnitedHealth Group Inc shed -6.40% after executives addressed a Goldman Sachs investor conference and said that seniors had begun to catch up on pandemic-delayed surgeries for hips and knees, meaning rising costs for health insurers. The broader S&P500 inched +0.08% higher, logging its fifth consecutive advance and longest winning streak since November 2021. Information Technology (up +1.14%) led a narrow advance that saw four of the eleven primary sectors close higher overnight. Health Care and Energy both declined -1.12%. Tesla Inc eased -0.74%, snapping a record 13 session winning streak that had lifted the electric vehicle manufacturer’s share price. However, Delta Air Lines Inc (up +1.52%) extended its rally into a 14th straight session. The technology-centric Nasdaq added +0.39%. Nvidia Corp rallied +4.81% a day after the chipmaker officially became just the seventh public US company to close with a market capitalisation above >US$1 trillion. Oracle Corp gained +4.79% to US$122.24, logging a fresh record closing high for a fifth straight day and eighth time this month. The enterprise software company posted a better-than-expected fiscal fourth quarter result earlier this week. The small capitalisation Russell 2000 lost -1.17%.
In this month's Business Breakfast, Morgans was privileged to have guest speaker Mr Todd Barlow the Chief Executive Officer of Washington H. Soul Pattinson.
WHSP is a significant investment house with a portfolio encompassing many industries, including resources, building materials, telecommunications, financial services, education, among others. WHSP is invested across multiple asset classes, including listed equities, private equity, private credit, and property.
In 2023, WHSP is proud to celebrate 120 years as a listed entity on the Australian Securities Exchange.
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US equity markets advanced to fresh 14-month highs after the pace of inflation eased to its lowest level in more than two years, bolstering investors’ view that the Federal Reserve will not raise interest rates when their latest two day monetary policy meeting concludes tomorrow morning AEST - Dow rose +146-points or +0.43%, Home Depot Inc (down -0.26%) hosted an Investor Conference overnight The broader S&P500 gained +0.69%, with Materials (up +2.33%) leading ten of the eleven primary sectors higher. Utilities (down -0.06%) was the only primary sector to settle in the red overnight. Tesla Inc extended its rally into a record thirteenth consecutive session, rallying +3.55% to US$258.71 and its highest close since 30 September. The electric vehicle manufacturer’s was also the most actively traded stock in both the S&P500 and Nasdaq 100 overnight. The Nasdaq rallied +0.83%. Nvidia Corp gained +3.90% to US$410.22, officially becoming just the seventh public US company to close with a market capitalisation above >US$1 trillion after previously flirting with that milestone on an intra-day basis. The chipmaker is up ~181% year-to-date. Only Apple Inc (down -0.26%), Amazon.com Inc (up +0.07%), Google parent Alphabet Inc (+0.15%), Tesla, Meta Platforms Inc (+0.10%) and Microsoft Corp (+0.74%) previously crossed the US$1 trillion threshold at the close of a trading day, according to Dow Jones Market Data. Tesla and Meta have since dropped out of the US$1 trillion club. Advanced Micro Devices shed -3.61% after officially unveiling several products at its Data Centre & AI Technology Premiere event in San Francisco overnight meant to take on Nvidia Corp and Intel Corp (up +2.54%) The small capitalisation Russell 2000 climbed +1.23%.
US equity markets built on the modest gains of last Friday’s (9 June) quiet session as investors turn their attention to this week’s May US inflation data and some key central bank monetary policy decisions (including from the Federal Reserve, European Central Bank and Bank of Japan) - Dow gained +189-points or +0.56%, extending gains into a fifth consecutive session. It marks the longest stretch of gains for the 30-stock index since the six-day trading period that ended 27 January. The broader S&P500 rose +0.93% to 4,338.93, the highest close since 21 April, 2022. Information Technology sat atop the primary sector leaderboard for a second consecutive session with a +2.07% gain, leading eight of the eleven primary sectors higher. Energy (down -0.97%) was the worst performing primary sector. Tesla Inc rallied +2.22% to US$244.40, extending gains into a record 12th consecutive session and recording its highest close since 30 September, 2022. The Nasdaq rallied +1.53% 13,461.92, the technology centric index’s highest close since 19 April, 2022. Apple Inc gained +1.56% to US$183.79, extending its rally into a third straight session and logging a fresh record closing high a week after the company’s Worldwide Developer Conference. Apple is up +41.45% year-to-date. Netflix Inc gained +0.94% after data analytics company Antenna late last week reported that the streaming company’s password-sharing crackdown already appears to be working in the US. Netflix saw a huge spike in subscribers (up +73K, or a +102% over the previous 60-day average) in the four days after it notified users about its paid sharing policies on 23 May, and also added +100K subscribers on both 26 May and 27 May. That’s more subscribers than Netflix raked in once the COVID-related lockdowns went into effect in March and April 2020, according to Antenna. The small capitalisation Russell 2000 added +0.40%.
US equity markets advanced, with the S&P500 entering bull market territory as investors eye inflation data and key central bank meetings next week - Dow rose +169-points or +0.50%. Boeing Co rallied +2.92% to US$218.11, falling short of its 52-week closing high by US$0.34c. The stock is up more than >60% over the past 12-months, but is down more than >50% from its record closing high of $440.62 on 1 March, 2019, before the pandemic and before the second of two deadly crashes that led to the worldwide grounding of the 737 MAX jet. The broader S&P500 gained +0.62% to 4,293.93, logging its highest close since 16 August, 2022 and clawing its way out of bear market territory. The index closed 20.04% above its closing low of 3,577.03 set on 12 October last year, meeting the widely accepted definition of the end of a bear market (being a 20% rally off the bear-market closing low). Consumer Discretionary (up +1.56%) and Information Technology (+1.20%) climbed over >1% to lead seven of the eleven primary sectors higher. Real Estate (down -0.63%) sat at the foot of the primary sector leaderboard. The Nasdaq rallied +1.02%, with Amazon.com Inc gaining +2.49%. Wells Fargo analyst Ken Gawrelski, who launched coverage on 13 large-capitalisation internet stocks, named Amazon his top pick, one of just two stocks he launched with an ‘Overweight’ rating, along with Uber Technologies Inc (+3.26%). The small capitalisation Russell 2000 eased -0.41%, but has climbed ~2.7% this week to date.
It's Labor Governments that tend to finish tightening with the Cash Rate above the Fed funds Rate.
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US equity markets settled mostly lower after the Bank of Canada joined the Reserve Bank of Australia (RBA) a day earlier in raising interest rates - Dow rose +92-points or +0.27%, The broader S&P500 eased -0.38% a day after logging its highest close since 16 August, 2022. Communication Services (down -1.87%) and Information Technology (-1.62%) led five of the eleven primary sectors lower. The Energy sector sat atop the primary sector leaderboard overnight with a +2.65% rally. Tesla Inc rose +1.47% after the electric vehicle maker posted an update on its website that showed new Model 3 and Model Y cars are eligible for a US$7,500 tax credit from the Inflation Reduction Act. The Nasdaq shed -1.29% a day after the technology-centric index recorded its highest close since 20 April, 2022. The small capitalisation Russell 2000 advanced +1.78%, extending a recent rally that that lifted it to the highest close since 9 March. The index is outperforming the Nasdaq Composite by 5.04% so far this month, its largest outperformance in the first five trading days of a month since October 2020, according to Dow Jones Market Data.
US equity markets advanced despite a dearth of fresh catalysts, with small capitalisation stocks outperforming - Dow eked out a +10-point or +0.03% rise, with losses for Merck & Co Inc (down -2.74%) and UnitedHealth Group Inc (-2.13%) capping gains. Boeing Co lost -0.71% after the aerospace and defence company said it found new problems with its 787 Dreamliner jets. The defect, which is not a flight safety concern, is connected with a stabilizer fitting, and will lead the company to inspect every plane in inventory before delivery, the company said, adding that “at this time we do not expect that this issue will change our full-year guidance regarding 787 deliveries.” The broader S&P500 added +0.24% to 4,283.85, marking its highest close since 16 August, 2022 but falling just short of entering a technical bull market. A close above 4,292.48 for the S&P500 would mark a 20% rally off the bear-market closing low of 3,577.03 set on 12 October, 2022, meeting the widely accepted definition of the end of a bear market. Financials (up +1.25%) and Consumer Discretionary (+0.99%) led seven of the eleven primary sectors higher overnight. Regional bank stocks traded strongly as did bellwethers like Goldman Sachs Group Inc (up +1.55%) and Morgan Stanley (+2.53). More defensive Health Care (down -0.88%) and Consumer Staples (-0.47%) underperformed. The Nasdaq rose +0.35% to 13,276.42, the highest settlement for the technology-centric index since 20 April, 2022. Apple Inc slipped -0.% a day after the company debuted its highly anticipated virtual reality headset as well as new software at its annual Worldwide Developer Conference. The small capitalisation Russell 2000 rallied +2.69% to 1,855.40, logging its highest close since 9 March. The Russell 2000 has gained +5.4% so far in 2023, compared with an +11.6% gain for the large-capitalisation benchmark S&P 500 and a +26.8% jump for the Nasdaq. Coinbase Global Inc dropped -12.09% after the Securities and Exchange Commission (SEC) sued the cryptocurrency exchange, alleging it has been operating an unregistered securities exchange.
US equity markets eased, trimming earlier session gains - Dow fell -200-points or -0.59%, The broader S&P500 slipped -0.20% to 4,273.79, reversing earlier gains that briefly lifted the index into technical bull market territory. The index touched an intra-session high of 4,299.28, which is 20.19% above the near two-year closing low of 3,577.03 set on 12 October last year. Declines for the Industrials (down -0.71%) and Financials (-0.65%) sectors offset gains for the Communication Services (up +0.58%) and Utilities (+0.45%) sectors. The Nasdaq dipped -0.09%. Apple Inc settled –0.76% lower at US$179.58 after briefly touching a fresh record intra-day high (US$184.95). The iPhone maker unveiled its highly anticipated virtual reality headset (Vision Pro) and a slew of software updates at its annual Worldwide Developers Conference overnight. Intel Corp shed -4.63% as Apple said an upcoming Mac Pro computer will include a new homemade chip (M2 Ultra), representing the completion of the company’s effort to bring its own processors to its entire PC line-up. The small capitalisation Russell 2000 lost -1.32%, handing back some of last Friday’s (2 June) +3.56% rally.
US equity markets rallied, starting Friday’s (2 June)on the front-foot after the US Senate on Thursday (1 June) approved a deal between the White House and congressional Republicans to lift the debt ceiling for two years in exchange for cuts to government spending, and then further buoyed by a robust May jobs report - Dow jumped +701-points or +2.12%, logging its biggest daily points gain since the end of November last year and largest percentage rise since 6 January. The broader S&P500 rallied +1.45% to 4,282.37, and on the cusp of exiting its longest bear market run since 1948. It marked the highest close for the S&P500 since 18 August, 2022 after the index touched its highest intra-day level (4,290.67) since April 2022. Palo Alto Networks Inc gained +5.38% in extended trading (after adding +0.21% in the regular session) after it was confirmed that the cybersecurity platform company would replace Dish network Inc (+16.24%) in the S&P500 as part of the quarterly rebalancing of the index when it takes effect on 20 June. The Nasdaq gained +1.07%. Apple Inc added +0.48% to US$180.95, recording its second highest close on record ahead of its Worldwide Developer Conference tonight AEST at which it’s expected to unveil new product and operating system releases. The small capitalisation Russell 2000 jumped +3.56%, logging its best daily performance since November 10, 2022 and rising above its 200-day moving average for the first time since 8 March, just before Silicon Valley Bank collapsed. The Russell has gained +3.96% year-to-date, well behind the S&P 500′s advance of +11.53%.
US equity markets opened the new month on the front foot as concerns around a US debt default faded, with the S&P500 and Nasdaq logging their highest closes since August 2022 - Dow rose +153-points or +0.47%, The broader S&P500 rose +0.99% to 4,221.02, with Information Technology (up +1.33%) resuming its place at the top of the primary sector leaderboard and leading nine of the eleven primary sectors higher. Utilities (down -0.78%) and Consumer Staples (-0.09%) were the only two primary sectors to settle in the red. The Nasdaq rallied +1.28% to 13,100.98. The small capitalisation Russell 2000 climbed +1.05%.
US equity markets retreated but settled off their worst levels of the session ahead of a House vote on the federal debt-ceiling deal this morning AEST to prevent a potential default - Dow fell -135-points or -0.41%, The broader S&P500 lost -0.61%, with Energy (down -1.88%), Industrials (-1.40%), Financials (-1.22%), Materials (-1.12%) and Information Technology (-1.09%) all falling over >1% to lead seven of the eleven primary sectors lower. More defensive sectors outperformed, including Utilities (up +0.96%), Health Care (+0.85%) and Real Estate (+0.66%) all advancing over >0.50%. The Nasdaq -0.63%. The small capitalisation Russell 2000 lost -1.00%.
Morgans Chief Economist Michael Knox says that stubborn inflation means one to two more rate hikes may still be required before the job is done by the Federal Reserve.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets were mixed after resuming trading following the Memorial Day long weekend fell on Tuesday as Wall Street considered the likelihood of Congress passing a tentative deal on raising the U.S. debt ceiling - Dow fell -51-points or -0.15%, The broader S&P500 unchanged, with gains for the Consumer Discretionary (up +0.76%) and Information Technology (+0.63%) sectors offsetting declines for the Consumer Staples (down -1.08%) and Energy (-0.94%) sectors. Tesla Inc rallied +4.14% as excitement built around Chief Executive Elon Musk’s first visit to China in about three years. Mr Musk is expected to spend time meeting key officials in Beijing, which may even include Premier Li Qiang. The Nasdaq added +0.32% to 13,017.43, paring an earlier rally of as much as +1.4% but still marking the technology-centric index’s highest close since August, 2022. The small capitalisation Russell 2000 lost -0.32%.
European bourses settled with modest losses, with the Technology sector (down -0.7%) handing back some of last Friday’s (26 May) +3% gain and leaving the pan-European Stoxx 600 index (which includes UK equities) -0.12% lower. The Oil and Gas sector added +0.2%. Germany's DAX slipped -0.20%. France's CAC eased -0.21%. In broader stock moves, Swedish property group SBB SE rose +2.62% after announcing it was exploring strategic options including a sale of the company or of specific assets and segments. Shares of the company have sunk ~80% over the last year as it struggles with the higher interest rate environment. Elsewhere, President Tayyip Erdogan secured victory in a presidential election in Turkey on Sunday (28 May), extending his increasingly authoritarian rule into a third decade. In economic data, a final reading of eurozone Consumer Confidence for May, and Consumer Inflation Expectations for May are released tonight AEST.
US equity markets rallied ahead of the Memorial Day long weekend - Dow rose +329-points or +1.00% to snap a five-session losing streak, with Intel Corp (up +5.84%) and American Express (+4.08%) notable performers. The broader S&P500 gained +1.30% to its highest level since mid-August, with the Information Technology (up +2.68%) and Consumer Discretionary (+2.38%) popping over >2% to lead eight of the eleven primary sectors higher. Energy (down -0.37%) was the worst performing primary sector on Friday (26 May). Broadcom jumped +11.52% to a record closing high of US$812.73 - touching a record intra-day high of US$814.98 – to be the leading S&P500 performer on Friday (26 May) ahead of the chipmaker’s second quarter result later this week. Ford Motor Co rallied +6.24% after Chief Executive Jim Farley and Tesla Inc (+4.72%) Chief Executive Elon Musk held a Twitter Spaces livestream to reveal an agreement which would allow Ford owners to access Tesla Superchargers in the U.S. and Canada starting early next year, in addition to Ford’s own charging network. Ford electric vehicles (EVs) would use an adapter at first, but in a couple of years the EVs would have built-in connectors and no adapters would be needed. The Nasdaq rallied +2.19%. Marvell Technology Inc surged +32.4% after the chip company posted a solid quarterly result after the close last Thursday (25 May) and said it expected revenue from artificial intelligence (AI) to at least double this fiscal year. The Philadelphia Semiconductor index has added ~40% since the start of the year, driven by the booming AI industry. The small capitalisation Russell 2000 gained +1.05%.
The International Energy Agency (IEA) estimates world oil demand 2 million barrels a day higher than supply in the second half of 2023.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets advanced, led by fresh solid gains for the technology sector - Dow slipped -35-points or -0.11%, extending declines into a fifth consecutive session. The broader S&P500 rose +0.88%, with Information Technology (up +4.45%) comfortably the leading primary sector performer and leading five of the eleven primary sectors higher. The Nasdaq jumped +1.71%, posting its best daily percentage gain since 5 May as the artificial intelligence (AI) thematic continued to power gains. Advanced Micro Devices Inc rallied +11.16% and Palo Alto Networks Inc +1.80%. The small capitalisation Russell 2000 lost -0.70%.
Marcelo Matos, Chief Executive Officer of Stanmore Resources Limited presented at our latest Morgans Business Breakfast.Stanmore specialises in the production of high-quality QLD metallurgical coals for the seaborne market. With ownership interests in four operating open-cut mines and a diverse portfolio of eight potential developments primarily located in the Bowen Basin, QLD, Stanmore has established itself as a key player in the industry.Following the successful acquisition of the BMC assets, Stanmore is now Australia's fourth-largest met coal producer, positioning them as globally significant in its industry and attracting the attention of investors.Morgans' clients can read the latest coverage on Stanmore Resources here - https://bit.ly/3BuWfe6Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated as concern about the impasse in the debt-ceiling talks continued to grow - Dow fell -256-points or -0.77%. The broader S&P500 lost -0.73%, with Real Estate (down -2.21%) leading ten of the eleven primary sectors lower. Financials (down -1.31%), Financials (-1.31%) and Industrials (-1.27%) all fell over >1%. Energy (up +1.04%) was the sole primary sector to advance for a second straight session. The Nasdaq eased -0.61%. The small capitalisation Russell 2000 lost -1.16%.
ASX small cap industrials have had a difficult 12 months. Our strategist, Andrew Tang explains why he sees the risk/reward for the asset class turning more favourable.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated after a volatile session as the drawn out debt ceiling negotiations continued to weigh on sentiment, with losses accelerating in afternoon trading - Dow fell -231-points or -0.69%, The broader S&P500 -1.12%, with Materials (down -1.54%) and Information Technology (-1.50%) falling ~1.5% to lead ten of the eleven primary sectors lower. Energy (up +1.04%) was the sole primary sector to advance overnight. The Nasdaq -1.26%. Apple Inc lost -1.52% after announcing a multibillion-dollar chip production deal with Broadcom Inc (up +1.20%). Apple said the partnership, which centres on 5G radio frequency components and builds on its existing relationship with Broadcom, was part of its 2021 commitment to spend US$430B with US suppliers and manufacturers over five years. The small capitalisation Russell 2000 lost -0.43%. The American Depository Receipts (ADRs) of Alibaba Group Holdings Ltd fell -3.74% after a strong session a day earlier, with reports that the company’s cloud and artificial intelligence (AI) arm has begun cutting 7% of staff (source: Barron’s). The move is a bid to optimise business operations on strategic areas - like AI - in the midst of a historic restructuring, and not representative of a wider downsizing, a person familiar with the matter and cited in the report said. Alibaba announced earlier this year the biggest restructuring in its history, a bid to unlock value by splitting into six units and to foster market competitiveness, a nod to regulators who have hammered the Chinese tech sector since late 2020.
US equity markets mixed in what was a muted session as investors continued to eye developments around the debt ceiling negotiations, although the Nasdaq scaled a nine month high - Dow fell -140-points or -0.42%. JPMorgan Chase & Co (down -0.83%) hosted an investor day and said it is planning an “unmatched” spending spree on new initiatives this year of more than $15B, which would include hiring, marketing and investment in technology. JPMorgan also lifted its outlook for how much it expects to earn this year from its lending business following the recent purchase of First Republic. The investment bank raised its 2023 target for net interest income, excluding its trading division, to ~US$84B from $81B previously. The broader S&P500 eked out a +0.02% gain, recording its second highest settlement (4,192.63) this year. Communication Services rose +1.17% to lead seven of the eleven primary sectors higher. Consumer Staples sat at the foot of the primary sector leaderboard with a -1.47% decline. Chevron Corp fell -1.80% after announcing an agreement to buy Colorado-based oil and gas producer PDC Energy Inc (up +7.22%) in an all-stock deal valued at US$6.3B. Exxon Mobil Corp lost -1.21%, with The Wall Street Journal reporting that the company spent ~US$100M buying land from an exploration company called Galvanic Energy, a firm created for development of lithium from the brine-rich Smackover Formation of Southern Arkansas. The technology-centric Nasdaq gained +0.50% to 12,720.78, logging its highest close since 18 August last year. Meta Platforms Inc settled+1.09% higher, shaking off pre-market weakness seen after the social-media giant was fined €1.2B by Ireland’s Data Protection Commission over allegations it violated European Commission rules on data protection. Micron Technology Inc fell -2.85% following a weekend report that China’s government told users of computer equipment deemed sensitive to stop buying products from the biggest U.S. memory chipmaker. The small capitalisation Russell 2000 rallied +1.22%.
US equity markets retreated as policymakers paused negotiations over the debt ceiling deal and nerves over the health of the US regional banking sector resurfaced - Dow fell -109-points or -0.33%, The broader S&P500 slipped -0.14%, with Consumer Discretionary (down -0.84%) leading seven of the eleven primary sectors lower. Energy sat atop the primary sector leaderboard on Friday (19 May) with a +0.73% gain. The Nasdaq eased -0.24%. The small capitalisation Russell 2000 lost -0.62%.
US equity markets rallied, with the S&P500 and Nasdaq logging their highest closes since August last year amid reports of further progress in resolving the debt-ceiling debate in Congress - Dow rose +115-points or +0.34%, The broader S&P500 gained +0.94%, with Information Technology (up +2.06%) leading seven of the eleven primary sectors higher. The Nasdaq rallied +1.51%. Apple Inc (+1.37%) and Google-parent Alphabet Inc (+1.68%) advanced to log their highest settlements since April last year. Nvidia Corp gained +4.97% to US$316.78, marking the chipmaker’s highest close since 8 December, 2021 and ~5% below its all-time closing high of US$333.76 set on 29 November, 2021. The latest rally – which sees the stock up ~116.76% year-to-date - came after the company announced a slew of high-performance gaming cards aimed at budget shoppers. The small capitalisation Russell 2000 added +0.58%.
US equity markets rallied as optimism emerged from Republican congressional leadership over averting a default on the debt ceiling - Dow rebounded +409-points or +1.24%, The broader S&P500 rose +1.19%, with Energy (up +2.07%), Consumer Discretionary (+2.04%) and Financials (+2.0%) all gaining 2%+ to lead nine of the eleven primary sectors higher. Utilities (down -0.36%) and Consumer Staples (-0.10%) were the only primary sectors to settle in the red. The Nasdaq rallied +1.27%. The small capitalisation Russell 2000 outperformed with a +2.21% gain after the lagging the other indices recently.
Morgans Chief Economist Michael Knox discussed the US economy and the possibility of shutdown by the US Government and what effect that will have for the next several quarters.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Senior Analyst Nathan Lead recaps our coverage of the Banking sector. Including stocks such as Commonwealth Bank of Australia (ASX:CBA), National Australia Bank (ASX:NAB), Westpac Banking Corp (ASX:WBC), and ANZ Group Holdings (ASX:ANZ).Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated as investors focussed on debt ceiling talks between President Joe Biden and House Speaker Kevin McCarthy, which concluded shortly before market close - Dow fell -336-points or -1.01%, falling back into negative territory for the year-to-date for the first time since 4 May and closing below its 50-day average for the first time since 30 March. The broader S&P500 lost -0.64%, with Real Estate (down -2.61%), Energy (-2.54%) and Utilities (-2.30%) all dropping over >2% to lead nine of the eleven primary sectors lower. Communication Services (up +0.59%) and Information Technology (+0.16%) were the only primary sectors to advance. The technology-centric Nasdaq slipped -0.18%. The small capitalisation Russell 2000 shed -1.44%.
US equity markets edged higher in subdued trading as investors awaited news about debt ceiling negotiations and assessed fresh data pointing to a cooling economy - Dow added +48-points or +0.14%, snapping a five session losing streak. The broader S&P500 rose +0.30%, with Materials (up +0.85%) and Financials (+0.82%) both rose over >0.8% to lead six of the eleven primary sectors higher. Utilities sat at the foot of the primary sector leaderboard with a -1.24% decline. The Nasdaq advanced +0.66%, with chipmaker NVIDIA Corp rallying +2.16%. Apple Inc (down -0.29%) saw its market capitalisation (~US$2.7 trillion) surpass that of the entire small capitalisation Russell 2000 on 27 April and has retained this premium for two weeks. The Russell 2000 gained +1.19%.
US equity markets drifted lower on Friday (12 May), forfeiting earlier gains in late morning trade after consumer sentiment data from the University of Michigan recorded a notable increase in consumer inflation expectations - Dow dipped -9-points or -0.03%, The broader S&P500 reversed earlier gains to settle -0.16% lower, Consumer Discretionary (down -0.89%) leading four of the eleven primary sectors lower on Friday (12 May). The more defensive Utilities (up +0.44%) and Consumer Staples (+0.36%) sectors outperformed. The Nasdaq fell -0.35%, with Apple Inc down -0.54% and Meta Platforms Inc -0.84%. The small capitalisation Russell 2000 lost -0.22%. Small cap stocks have struggled since turmoil in U.S. regional banks erupted in early March, with the Russell 2000 down ~7% since 8 March.
US equity markets slipped amid fresh concerns around regional banks and weaker commodity prices - Dow fell -222-points or -0.66%, extending declines into a fourth straight session. The Walt Disney Company dropped -8.73% after the media giant released its fiscal second-quarter results after the close of the previous session and recorded a decline in subscribers to its streaming business, Disney+. The broader S&P500 slipped -0.17%, with Energy (down -1.24%), Utilities (-1.14%) and Real Estate (-1.02%) all falling over >1% to lead eight of the eleven primary sectors lower. Communication Services (up +1.65%) sat atop the primary sector leaderboard. The technology-centric Nasdaq edged +0.18% higher. Google-parent Alphabet Inc rallied +4.31% to its highest level since August on the heels of its I/O developer conference that saw the company unveil new gadgets and software, with a particular focus on artificial intelligence. The small capitalisation Russell 2000 lost -0.84%. Livent Corp.
Last night the Treasurer, the Hon. Dr. Jim Chalmers MP, handed down the Federal Budget for 2023/24.Our experienced analysts, Terri Bradford, Andrew Tang and Michael Knox have considered the implications from multiple perspectives and have provided insights on what this will mean for you.Read their full articles here: https://www.morgans.com.au/federal-budget-2023Timestamps:00:08 - Economic Strategy (Michael Knox)05:20 - Equity Strategy (Andrew Tang)08:54 - Wealth Management (Terri Bradford)Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets advanced and treasuries rallied as the latest headline inflation data printed slightly weaker-than-expected, with value stocks lagging growth names following a choppy session - Dow slipped -30-points or -0.09%, with American Express Co (down -3.06%) and Nike Inc (-1.27%) notable drags. The broader S&P500 +0.45%, with Communication Services (up +1.69%) and Information Technology (up +1.22%) leading seven of the eleven primary sectors higher. Energy and Financials sat at the foot of the primary sector leaderboard, down -1.15% and -0.67% respectively. The technology-centric Nasdaq +1.04%, logging its highest settlement since June. Alphabet Inc rose +4.10% as Google kicked off its I/O developer conference and unveiled new gadgets and software, with a particular focus on artificial intelligence. The small capitalisation Russell 2000 rose +0.56%.
US equity markets logged modest losses following a muted session as investors eye tonight’s AEST inflation figures - Dow eased -57-points or -0.17%. Boeing Co rose +2.34%, with confirmation that the company had struck a deal with Ryanair Plc that will see the Irish low-cost carrier buy up to 300 Boeing aircraft. The deal comes after discussions collapsed more than 18 months ago over a disagreement on price. The aircraft will be delivered between 2027 and 2033. The broader S&P500 fell -0.46%, with Materials (down -0.93%) and Information Technology (-0.86%) leading eight of the eleven primary sectors lower. The Nasdaq lost -0.63%. The small capitalisation Russell 2000 lost -0.27%.
US equity markets settled narrowly mixed as an early rally in regional banking stocks faded, and with investors eyeing pivotal inflation figures later in the week - Dow eased -56-points or -0.17%, The broader S&P500 inched +0.05% higher, with Communication Services (up +1.27%) leading four of the eleven primary sectors higher thanks to solid gains from Google parent Alphabet Inc (+1.91%) and Walt Disney Co (+2.44%). The Nasdaq eked out a +0.18% gain to 12,256.91, its highest close since 12 September and enough to lift the technology centric index out of official bear market territory once again (up +20.01% from its 28 December closing low of 10,213.29). The last such exit from a bear market for the Nasdaq was 10 August last year and proved short-lived, with the index peaking just a few trading days later on 15 August before slumping back into a bear market - dropping 20% from that high - by 11 October. The small capitalisation Russell 2000 lost -0.31%. Amcor Plc fell over >2% in extended trading (after adding +0.38% in the regular session) after announcing it had signed a deal to buy Moda Systems, a maker of automated protein packaging machines. The packaging major did not disclose the size of the deal.
US equity markets rallied on Friday (5 May) to snap a four session losing streak, with regional bank shares rebounding from steep losses, and as investors digested the latest monthly jobs figures - Dow rallied +547-points or +1.65%, The broader S&P500 +1.85%, with Energy (up +2.75%), Information Technology (+2.71%), Financials (+2.44%) and Consumer Discretionary (+2.5%) gaining 2%+ to lead all elven primary sectors higher. The Nasdaq +2.25%. Apple Inc jumped +4.69% after posting better-than-expected first quarter numbers after the close of the previous session. Advanced Micro Devices (AMD) Inc gained +3.73% capping a two rebound of +9.84% that saw the chipmaker recoup a fall of over >9% last Wednesday (3 May) after better-than-expected first quarter headline numbers were overshadowed by an underwhelming outlook. The rebound came following a report that AMD was partnering with Microsoft Corp (+1.72%) to develop an in-house chip to handle artificial intelligence (AI) workloads. Microsoft has relied mostly on AMD’s larger rival Nvidia Corp (+4.06%) for its data-centre needs. The small capitalisation Russell 2000 rose +2.39%. Atlassian Corp fell -9.54% after the collaboration- and productivity-software company said late last Thursday (4 May) it expected business to get worse as companies keep cutting jobs. The company forecast revenue of US$900M to US$920M for the fiscal fourth quarter versus analysts’ consensus estimates for US$919.4M, stating in its letter to shareholders that cloud revenue faced “increasing macroeconomic impacts on paid seat [a paid user of Atlassian software] expansion from existing customers and new customer conversions, as well as headwinds in areas [where] we have yet to see significant impact.”
A very tight US labour market means another FED rate hike is likely before the FED pauses in June.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated, with the benchmark indices extending losses into a fourth straight session - Dow dropped -287-points or -0.86%, dipping into the red for the year. The broader S&P500 fell -0.72%, with Financials (down -1.29%), Communication Services (-1.26%), Energy (-1.11%) and Industrials (-1.09%) all falling over >1% to lead nine of the eleven primary sectors lower. Real Estate (up +0.92%) and Utilities (+0.73%) were the only primary sectors to advance overnight. The Nasdaq lost -0.49%. Qualcomm Inc shed -5.54% after the chipmaker’s fiscal third quarter outlook released after the close of the previous session fell short of Wall Street estimates. Advanced Micro Devices Inc rallied +6.11% following a Bloomberg report that indicated the chip maker was working with Microsoft Corp (+0.33%) as it expands into processors for artificial intelligence. The small capitalisation Russell 2000 lost -1.18%.
US equity markets settled lower after a volatile session as investors digested the latest interest rate decision and monetary policy pronouncements from the Federal Reserve - Dow fell -270-points or -0.80%, The broader S&P500 lost -0.70%, with Energy (down -1.92%), Financials (-1.27%) and Materials (-1.11%) all fell over >1% to lead all eleven primary sectors lower. The Nasdaq eased -0.45%. Advanced Micro Devices Inc dropped -9.22% The small capitalisation Russell 2000 rose +0.41%.
US equity markets declined under the weight of fresh falls for regional banks and the energy sector - Dow down -367-points or -1.08%, The broader S&P500 lost -1.16%, with Energy (down -4.28%) and Financials (-2.30%) leading ten of the eleven primary sectors lower. Consumer Discretionary (+0.16%) was the only primary sector to settle in positive territory. The technology-centric Nasdaq fell -1.09%. The small capitalisation Russell 2000 dropped -2.10%.
US equity markets slipped in muted trading, giving up modest early gains as investors pondered the news that JPMorgan Chase & Co (up +2.14%) had agreed to buy the bulk of embattled of Californian lender First Republic Bank - Dow eased -46-points or -0.14%, unwinding an earlier rally of as much as +160-points. The broader S&P500 dipped -0.04%, with Energy (down -1.26%) and Consumer Discretionary (-1.06%) leading seven of the eleven primary sectors lower. Healthcare (up +0.59%) and Industrials (+0.55%) were the leading primary sector performers overnight. The Nasdaq slipped -0.11% to 12,212.60, with Amazon.com Inc down -3.22% and extending its two day slide to over >7% since the release of the e-commerce and cloud-computing giant’s first quarter result. However, chipmaker Nvidia Corp gained +4.18%. The technology-centric index has been in a bear market for 138 trading days, and needed to close above >12,255.95 to exit bear-market territory, according to Dow Jones Market Data. The small capitalisation Russell 2000 eked out a +0.01% gain.
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US equity markets advanced on Friday (28 April) despite another crushing session for First Republic Bank, with investors continuing to digest corporate earnings and the latest inflation reports - Dow rose +272-points or +0.80%, The broader S&P500 gained +0.83%, with Energy (up +1.47%), Financials (+1.19%), Real Estate (+1.15%), Materials (+1.13%) and Information Technology (+1.07%) rising over >1% to lead nine of the eleven primary sectors higher. Utilities (down -0.19%) and Consumer Discretionary (-0.04%) were the only primary sectors to settle in the red. Both the Dow and S&P500 logged their best single session advance since 6 January. The Nasdaq added +0.69% to settle at 12,226.58, logging its best single session gain since 16 March and marking the highest close for the technology-centric index since 12 September, 2022. Intel Corp rallied +4.02% as the once dominant chipmaker posted first quarter numbers after the closing bell of last Thursday’s (27 April) session that were a touch a head of consensus analyst forecasts. However, Amazon.com Inc fell -3.98% after the e-commerce and cloud-computing giant’s first quarter headline numbers released after the close of the previous session comfortably surpassed consensus estimates, but with analysts concerned about revenue growth in the Cloud unit. The small capitalisation Russell 2000 lost -0.49%.
Strong first quarter earnings from technology majors fuelled the best rally for US equity markets since January - Dow gained +524-points or +1.57%, The broader S&P500 rallied +1.96% to log its best single session gain since 6 January, with Communications Services (up +5.53%) the clear outperformer and underpinned by Meta Platforms Inc soaring +13.93% after Facebook’s parent company reported better-than-expected earnings per share (EPS) of US$2.20 for the first quarter after the close of the previous session and provided a revenue forecast that suggested reinvigorated sales growth. Consumer Discretionary (+2.77%), Real Estate (+2.43%) and Information Technology (+2.17%) all gained over >2% amid a broad-based rally that saw all eleven primary sectors advance. The Nasdaq jumped +2.43%, with Microsoft Corp up +3.20% and Alphabet Inc +3.75%. The small capitalisation Russell 2000 gained +1.20%.
US equity markets mixed as strong earnings from some technology heavyweights competed with persistent concerns around the banking sector - Dow fell -229-points or -0.68%, unwinding an earlier gain of over >100-points. Home Depot Inc (down -2.79%), Honeywell International (-2.58%) and Merck & Co Inc (-2.66%) all declined over >2.5%. The broader S&P500 eased -0.38%, with Utilities (down -2.37%) leading ten of the eleven primary sectors lower. Information Technology was the sole standout performer with a +1.78% gain. The Nasdaq rose +0.47%, paring an earlier rally of ~1.4%. Microsoft Corp rallied +7.24% after the software giant released first quarter earnings per share (EPS) and revenue after the close of the previous session that topped Wall Street’s estimates, underpinned by strong Cloud demand. The company ell narrowly short of topping its daily record for market-capitalisation gains, adding +US$148.34B in market cap overnight – just shy of the company’s record one-day market-cap haul of US$150.37B achieved 13 March, 2020. It also marked the seventh-largest daily increase in market value for a U.S. company, according to Dow Jones Market Data. Microsoft also shrugged off news that the U.K.’s Competition and Markets Authority would prohibit the company from merging with Activision Blizzard Inc (down -11.45%), a decision Microsoft plans to appeal. Google parent Alphabet Inc slipped -0.15% after trading in positive territory for most of the session despite the Google parent posting better-than-expected first quarter EPS after the close of the previous session. The small capitalisation Russell 2000 lost -0.89%.
The International Energy Agency in its April Oil Report tells us why the oil price must rise in the second half of 2023.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated amid a flood of corporate earnings releases and with investors eying results from some technology majors after the closing bell - Dow fell -344-points or -1.02%, The broader S&P500 lost -1.58%, with Materials (down -2.15%), Information Technology (-2.09%) and Consumer Discretionary (-2.05%) down over >2% and leading all eleven primary sectors lower. The Nasdaq dropped -1.98% to 11,799.16, marking the technology-centric indice’s lowest settlement since 28 March. The small capitalisation Russell 2000 slumped -2.40%.
US equity markets edged higher in what was another muted session to conclude the week as investors assessed mixed earnings from corporate America and political negotiations over the country’s debt ceiling - Dow added +22-points or +0.07%, The broader S&P500 edged +0.09% higher, with the Consumer Discretionary (up +1.20%) leading six of the eleven primary sectors higher. The Materials (down -0.90%) and Energy (-0.59%) sectors sat at the foot of the primary sector leaderboard on Friday (21 April). The Nasdaq +0.11%. Meta Platforms Inc dipped -0.08% after Chief Executive Officer (CEO) Mark Zuckerberg reportedly said the company may not be through laying off workers, as its latest round of 4,000 landed this week and another batch looms for Ma. The small capitalisation Russell 2000 +0.10%.
US equity markets retreated following some mixed corporate earnings releases - Dow fell -110-points or -0.33%. The broader S&P500 -0.60%, with Consumer Discretionary (down -1.48%), Real Estate (-1.19%) and Energy (-0.89%) lead ten of the eleven primary sectors lower. Consumer Staples (up +0.06%) was the only primary sector to eke out a gain. Tesla Inc dropped -9.75% as Chief Executive Officer (CEO) Elon Musk made clear he was willing to sacrifice margins in a push for market share in statements made following the release of the electric vehicle manufacturer’s first quarter result released after the close of the previous session. The Nasdaq lost -0.80%. Meta Platforms Inc fell -1.22% but still overtook Tesla Inc in market capitalisation terms for the first time since 20 December 2021. Meta is now the seventh largest public US company by market capitalisation at US$552.4B, pushing Tesla back to eighth spot (US$515.7B). The small capitalisation Russell 2000 lost -0.54%.
US equity markets little changed for a second consecutive session as investors assessed the latest round of quarterly earnings releases, including from a couple of Dow components - Dow fell -80-points or -0.23%. Walt Disney Co fell -2.16% after Bloomberg reported that the media and entertainment giant was planning to lay off thousands of employees next week, including ~15% of the entertainment division’s workforce. The broader S&P500 dipped -0.01%, with Communication Services (down -0.72%) leading six of the eleven primary sectors lower. The more defensive sectors outperformed overnight, with Utilities (up +0.78%) and Real Estate (+0.55%) sitting at the top of the primary sector leaderboard. United Airlines Holdings Inc rallied +7.50% after the carrier projected stronger-than-expected second quarter and full year earnings after the close of the previous session. The Nasdaq eked out a +0.03% rise. Netflix Inc fell -3.17% after the streaming giant provided a disappointing second quarter outlook after the close of the previous session. The small capitalisation Russell 2000 added +0.22%.
A consensus of the best US forecasters is that after a fall in output in Q2 2023, US GDP will likely rebound to slow but consistent growth.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets settled little changed overnight, struggling for direction as the first quarter corporate earnings season ramps up - Dow dipped -11-points or -0.03%, The broader S&P500 inched +0.09% higher, with Industrials (up +0.46%), Energy (+0.45%), Information Technology (+0.41%) and Materials (+0.40%) all up 0.4%+ and leading seven of the eleven primary sectors higher. The Nasdaq -0.04%. Meta Platforms Inc fell -0.44%, with Vox reporting that the company is expected to cut a further 4K jobs on Wednesday (19 April) in the latest round of layoffs. Meta Chief Executive Mark Zuckerberg has announced Meta’s intention to eliminate 10,000 jobs this northern hemisphere spring The small capitalisation Russell 2000 lost -0.40%.
US equity markets shook off a mixed opening to the first session of the week to push higher in the final hour of trading and settle with modest gains ahead of the first quarter earnings season shifting fully into gear this week - Dow rose +101-points or +0.30%, The broader S&P500 added +0.33%, with Real Estate (up +2.23%) and Financials (+1.04%) leading eight of the eleven primary sectors higher. Communication Services and Energy were the worst performing primary sectors overnight, both declining -1.27%. The Nasdaq +0.28%. Google parent Alphabet Inc fell -2.66% after The New York Times reported that Samsung is weighing making Bing its default search engine. The small capitalisation Russell 2000 rallied +1.22%.
US equity markets retreated on Friday (14 April) as investors assessed a weak retail sales report and some hawkish comments from Federal Reserve Governor Christopher Waller that dented enthusiasm around a stronger-than-expected start to the first quarter corporate earnings season - Dow fell -143-points or -0.42%, Boeing Co dropped -5.56% after the company warned after the close of the previous session that a manufacturing hang-up could cause problems for production and delivery of “a significant number” of 737 Max planes. The broader S&P500 eased -0.21%, with the more defensive sectors leading the declines. Real Estate (down -1.68%), Utilities (-1.11%) and Health Care (-0.79%) were the worst performing sectors on Friday (14 April), leading seven of the eleven primary sectors lower. Financials (up +1.05%) sat atop the primary sector leaderboard. The Nasdaq fell -0.35%. The small capitalisation Russell 2000 lost -0.86%.
US equity markets erased earlier gains in the final hour of trading following the release of the Federal Reserve’s March monetary policy meeting minutes, and as investors digested the latest inflation figures.- Dow slipped -38-points or -0.11%, snapping a four session winning streak after unwinding an earlier rally of over >200-points. International Business Machines (IBM) Corp (down -1.44%) is considering selling its weather operation, the Wall Street Journal (WSJ) reported after the market close. Any sale would come as IBM tries to become a leaner company trained on artificial intelligence (AI) and cloud infrastructure, the WSJ noted. The broader S&P500 eased -0.41% albeit recording its biggest intraday move in approximately three weeks, with the index swinging nearly 50 points from its intraday high to low. Consumer Discretionary (down -1.54%) led seven of the eleven primary sectors lower. Industrials (up +0.3%) sat atop the primary sector leaderboard overnight. American Airlines Group Inc dropped -9.22% after the carrier released weaker-than-expected updated guidance for the first quarter. The company now projects adjusted earnings per share (EPS) of US$0.01c to US$0.05c for the quarter, above prior guidance of breakeven, but below the average analyst projection for US$0.05c. United Airlines Holdings Inc shed -6.50%. The technology-centric Nasdaq lost -0.85%. The small capitalisation Russell 2000 fell -0.72%.
US equity markets mixed ahead of the release of the latest monthly inflation figures tonight AEST - Dow rose +98-points or +0.29%, extending the 30-stock index’s gain into a fourth straight session. The broader S&P500 settled flat, with every sector in positive territory except Information Technology (down -1.03%) and Communication Services (-0.43%). Energy (+0.89%) sat atop the primary sector leaderboard overnight. Moderna Inc shed 3.06% after the biotech firm hosted a virtual investor conference and said it’s delaying its ‘flu vaccine. The Nasdaq eased -0.43%, with Microsoft Corp (down -2.27%) and Amazon.com Inc (-2.20%) both declining over >2%. The small capitalisation Russell 2000 climbed +0.80%.
US equity markets resumed trading after the Good Friday long weekend with modest gains, climbing in the final hour of the session as investors digested last Friday’s (7 April) non-farm payrolls report and eyed the latest inflation figures and the start of the first quarter earnings season later this week – Dow rose +101-points or +0.30%. The Wall Street Journal (WSJ) reported Friday (7 April) that Exxon Mobil Corp (down -0.44%) has held informal talks with Pioneer Natural Resources Co (up +5.79%) about a possible acquisition. If a deal happens, it likely won’t come until later this year or next year, the WSJ report said. The broader S&P500 edged +0.10% higher, with Industrials (up +0.90%) and Energy (+0.65%) leading six of the eleven primary sectors higher overnight. Tesla Inc lost -0.30% after the company announced another round of price cuts on some vehicles in an attempt to spur demand. The electric vehicle maker also confirmed plans to build a megapack battery factory in Shanghai capable of assembling 10,000 giant batteries annually. The Nasdaq dipped -0.04% after dropping as much as -1.40% earlier in the session, with Apple Inc down -1.60% after market intelligence provider International Data Corp reported that global personal-computer shipments sank 29% from a year ago on weak demand, excess inventory and a worsening economic environment. Google parent Alphabet Inc lost -1.83%. Micron Technology Inc rallied +8.04% after its rival Samsung Electronics announced that it plans to cut memory chip production in the near term. A number of Wall Street analysts said the move could accelerate a return to supply-demand balance and potential rebound in the chipmaking sector. The small capitalisation Russell 2000 edged 0.13% higher. Tupperware Brands Corp sank -48.76% after the food-storage products maker issued a going-concern warning late Friday (7 April), saying it had hired financial advisers to help steer it through near-term challenges.
US equity markets weaker following a pair of soft economic reports - Dow added +80-points or +0.24%. The broader S&P500 slipped -0.25%, with Consumer Discretionary (down -2.04%) leading seven of the eleven primary sectors lower. The more defensive Utilities (up +2.57%) and Health Care (+1.73%) sectors sat at top of the primary sector leaderboard, while the Energy sector rose +1.42%. FedEx Corp rose +1.52% after the logistics giant announced plans to consolidate its operating companies into one organisation as part of an initiative called ‘Drive’, with the transition expected to be fully implemented in June 2024. The company expects the overall initiative to drive US$4B in permanent cost reductions in fiscal 2025. FedEx also plans to boost its annual dividend by +10% to US$0.44c per share. Costco Wholesale Corp fell over >2% in extended trading (after slipping -0.12% in the regular session) after the membership warehouse retailer reported its first monthly same-store sales (SSS) drop (down -1.1%) in nearly three years in March. The Nasdaq lost -1.07%, extending the technology centric indice’s decline into a third straight session. The small capitalisation Russell 2000 lost -0.99%.
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US equity markets retreated as investors weighed fresh declines in factory orders, and data hinting at a softening labour market ahead of Friday’s (7 April) March jobs report - Dow fell -199-points or -0.59%. Walmart Inc slipped -~0.9% in extended trading (after falling -0.98% in regular trading) after the world’s largest retailer reiterated its guidance for the first three months of the 2023 and the full year at its investor day. In February, the Walmart forecast consolidated net sales in the first quarter to be 4.5% to 5% higher than a year ago, and adjusted earnings per share (EPS) of US$1.25-US$1.30. Johnson and Johnson rose over >2.5% in extended trading (extending a +1.05% rise in the regular session) after said it will pay US$8.9B over the next 25 years to settle allegations that the company’s baby powder and other talc products caused cancer. The company proposed the settlement in a securities filing. J&J’s subsidiary LTL Management also refiled for Chapter 11 bankruptcy protection after its first attempt was thwarted, the filing said. The broader S&P500 -0.58%, with Industrials (down -2.25%) and Energy (-1.72%) leading seven of the eleven primary sector lower. Ford Motor Co (up +0.32%) reported a +10.1% bump in U.S. vehicle sales during the first quarter as it sold 475,906 units. The Nasdaq -0.52%. The small capitalisation Russell 2000 lost -1.81%.
Both the Dow and S&P500 extended their rally into a fourth consecutive session as investors digested news of surprise crude production cuts by the Organisation of the Petroleum Exporting Countries (OPEC) and their key producing allies (a group known as OPEC+) that saw oil prices soar and potentially muddy the inflation picture - Dow gained +327-points or +0.98%. Health insurance giant UnitedHealth Group Inc was the leading index performer, rallying +4.57% after the Center for Medicare & Medicaid Services on Friday (31 March) announced updated payment rates. The agency said that Medicare Advantage plans would see an increase in revenue of more than 3% from 2023 to 2024. The advance notice of the payment scale had pegged the increase at just over 1%. Separately, Chevron Corp gained +416%, tracking strong crude prices. Walmart Inc (+0.84%) convenes a two-day investor meeting beginning tonight AEST . The broader S&P500 added +0.37%, with Energy (up +4.91%) the clear outperformer and leading seven of the eleven primary sectors higher. Marathon Oil Corp jumped +9.93% and Conocophillips +9.26%. Tesla Inc fell -6.12% after reporting on Sunday (2 April) that it delivered 422,875 vehicles in the first quarter, just shy of the 432K units projected by analysts. The technology centric Nasdaq eased -0.27%. The small capitalisation Russell 2000 dipped -0.01%.
US equity markets staged a broad-based rally on Friday (31 March) to close out a volatile March with monthly and quarterly gains - Dow gained +415-points or +1.26%. McDonald’s Corp (+up 0.66%) is temporarily closing its U.S. offices this week as it prepares to inform corporate employees about its layoffs as part of a broader company restructuring, The Wall Street Journal reported on Sunday (2 April).The broader S&P500 rose +1.44%, with Consumer Discretionary (up +2.62%), Real Estate (+2.18%) and Communications Services (+2.08%) all gaining over >2% to lead all eleven primary sectors higher. Tesla Inc (up +6.24%) reported on Sunday (2 April) that it delivered 422,875 vehicles in the first quarter, just shy of the 432K units projected by economists. The electric vehicle manufacturer also reported production of 440,808 units for the quarter. Tesla is due to report first-quarter earnings after the close of trading on 19 April. The technology-centric Nasdaq rallied +1.74%. The small capitalisation Russell 2000 climbed +1.93%. US equity and bond markets are CLOSED on Friday night AEST (7 April) for Good Friday.
US equity markets logged back-to- back gains ahead of the release of key inflation figures tonight AEST - Dow rose +141-points or +0.43%. Boeing Co rose +1.48%, with Reuters reporting that the company’s CEO of commercial airplanes Stan Deal said that the 737 MAX production rate would go higher “soon.” The broader S&P500 climbed +0.57%, with Real Estate (up +1.22%) and Information Technology (+1.14%) leading ten of the eleven primary sectors higher. Financials (down -0.37%) was the only primary sector to settle in the red. The Nasdaq rallied +0.72% to 12,013.47, touching its highest intra-session level since 15 February (12,044.79). The technology-centric index is up +17.6% from its most recent low hit on 28 December. The level needed to enter a new bull market is 12,255.95, according to Dow Jones Market Data. Chip stocks continued to perform strongly. The more concentrated Nasdaq-100 index (up +0.91%) which tracks the top 100 non-financial companies listed on the Nasdaq exchange, exited a bear market on Wednesday (29 March), and is currently up +21.4% from its 28 December 28 closing low, according to Dow Jones Market Data. Advanced Micro Devices Inc rose +1.86%, Intel Corp +1.81% and NVIDIA Corp +1.48%. The small capitalisation Russell 2000 eased -0.18%.
US equity markets logged modest declines, with a fresh rise in Treasury yields weighing on technology stocks - Dow slipped -38-points or -0.12%, The broader S&P500 eased -0.16%, with Communication Services (down -1.02%) leading six of the eleven primary sectors lower. Energy (up +1.45%) sat atop the primary sector leaderboard for a second consecutive session. The Nasdaq lost -0.45%. Apple Inc fell -0.40% and Google parent Alphabet Inc -1.65%. The small capitalisation Russell 2000 dipped -0.06%.
US equity markets mostly advanced as investors welcomed waning signs of banking sector stress - Dow rose +195-points or +0.60%, with International Business Machines (IBM) Corp (up +3.21%) and JPMorgan Chase & Co (+2.87%) among the notable positive contributors. The broader S&P500 added +0.20%, with the Energy (up +2.10%) leading eight of the eleven primary sectors higher. Communication Services (down -1.08%) and Information technology (-0.85%) sat at the bottom of the primary sector leaderboard. The Nasdaq settled -0.47% lower. Apple Inc fell -1.23%, with a filing with the Securities and Exchange Commission (SEC) revealing that Chief Operating Officer (COO) Jeff Williams sold US$30M in stock last week. Mr Williams sale of 187,730 shares at an average price of US$159.76 was made in conjunction with a 10b5-1 trading plan, which lets executives and other company insiders arrange for stock sales to take place under certain conditions like timing and pricing. The small capitalisation Russell 2000 rose +1.08%.
US equity markets advanced after another volatile session as investors tried to shake off latest bank fears - Dow up +132-points or +0.41%. The broader S&P500 rose +0.56%, with more defensive sectors outperformed. Utilities (up +3.12%) and Real Estate (+2.57%) both rose over >2.5% to lead nine of the eleven primary sectors higher. Consumer Discretionary (down -0.35%) and Financials (-0.06%) were the only primary sectors to settle in the red. The Nasdaq added +0.31%. The small capitalisation Russell 2000 gained +0.85%. Block Inc fell -1.94%, extending the previous session’s -14.82% tumble after short seller Hindenburg Research announced that the payment company was its latest short position, alleging that Block allowed criminal activity to operate with lax controls and “highly” inflates Cash App’s transacting user base, a key metric of performance.
US equity markets advanced following another volatile session, clawing back some of the selloff as investors attempted to shake off concerns about banking-sector stability - Dow added +75-points or +0.23%, paring an earlier rally of as much as +481-points. The broader S&P500 settled +0.30% higher, having been as much as +1.8% higher at its session peak. However, the gains were concentrated, with Communication Services (up +1.83%) and Information Technology (+1.65%) the only primary sectors to advance. Energy (down -1.36%) sat at the bottom of the primary sector leaderboard The Nasdaq gained +1.01%, having jumped ~2.5% in earlier trading. Apple Inc (up +0.70%), whose market capitalisation tops the S&P500 at ~US2.5 trillion, touched a 6-month high of US$161.55. Apple now trades 7% above both its 50-day moving average of US$148.34 and its 200-day moving average of US$147.8. Microsoft Corp, the second largest stick by market capitalisation at ~US$2.06 trillion, gained +1.97%. Netflix Inc rallied +9.01% following a report from YipitData that said the streaming giant’s gross additions in Canada have improved. Chipmaker Nvidia Corp (+2.73%) extended its recent rally into an eight consecutive session. The small capitalisation Russell 2000 lost -0.41%.
New FED facility backs small banks and surges FED assets.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets - Dow fell -530-points or -1.63%, unwinding an earlier rally of ~200-points. The broader S&P500 -1.65%, having been up as much as +0.90% at its session peak. Real Estate (down -3.64%), Financials (-2.44%), Consumer Discretionary (-2.20%) and Energy (-2.11%) all fell over >2% to lead all eleven primary sectors lower. The Nasdaq -1.60%, having traded as +1.3% higher earlier in the session. The small capitalisation Russell 2000 lost -2.83%. Coinbase Global Inc fell over >13% in extended trading (extending an -8.16% decline recorded in regular trading) after the Securities and Exchange Commission (SEC) issued the cryptocurrency exchange a Wells notice, warning that it identified potential violations of U.S. securities law.
US equity markets rallied as investors welcomed a renewed sense of calm following recent unrest in the banking sector - Dow rose +316-points or +0.98%. The broader S&P500 reclaimed the 4,000 mark, settling +1.30% higher at 4,002.87. It marked the indice’s first close above >4,000 since 6 March. Energy (up +3.45%) led eight of the eleven primary sectors higher, with Consumer Discretionary (+2.71%), Financials (+2.47%) and Communication Services (+2.45%) all rising over >2%. The more defensive sectors underperformed, with Utilities down -2.06%, Real Estate -0.66% and Consumer Staples -0.12%. Tesla Inc popped +7.82% after Moody’s upgraded Tesla to Baa3 rating from its junk-rated credit. Moody’s called the electric-vehicle maker the “foremost manufacturers of battery electric vehicles” and said the upgrade reflects Tesla’s prudent financial policy and management’s operational track record. The Nasdaq gained +1.58%. Nvidia Corp (up +1.15%) hosted its annual GTC developer conference overnight, with the chipmaker’s Chief Executive Officer (CEO) Jensen Huang announcing a wide-ranging set of partnerships and products that enable the latest wave of artificial intelligence (AI) services. Mr Huang said Nvidia’s “biggest collaboration” is its partnership with Google Cloud Platform. The small capitalisation Russell 2000 gained +1.88%.
US equity markets rebounded amid optimism that the banking sector crisis may be easing, and with the Federal Reserve’s latest monetary policy meeting getting underway tonight AEST - Dow rebounded +383-points or +1.20%, recouping last Friday’s (17 March) losses and logging its best single session percentage gain since 6 January. The broader S&P500 +0.89%, wit Energy (up +2.11%) and Materials (+2.01%) up over >2% and leading all eleven primary sectors higher. The Nasdaq +0.39%. Amazon.com Inc settled -1.25% lower after the company announced a further 9,000 layoffs over the next few weeks. The move primarily affects Amazon Web Services, People Experience and Technology Solutions, advertising and Twitch. The small capitalisation Russell 2000 gained +1.11%.
Following a volatile week in global banking, Morgans Equity Strategist Andrew Tang gives us three scenarios for how the troubles in the financial sector will evolve. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
On the 15th of March 2023, Morgans Financial was joined by Neil McDonald, Managing Director & Luke Titus, Technical Director of Gold Hydrogen who presented at the monthly Morgans Business Breakfast about their upcoming Natural Hydrogen project in South Australia.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated as concerns re-emerged around the stability of the banking sector - Dow fell -385-points or -1.19%, The broader S&P500 -1.10%, with Financials (down -3.29%) leading all eleven primary sectors lower on Friday 17 March). FedEx Corporation rallied +7.97% after the economic bellwether posted fiscal third quarter earnings after the close of the last Thursday’s (16 March) session that comfortably topped Wall Street estimates. The Nasdaq lost -0.74%. The small capitalisation Russell 2000 lost -2.56%.
US equity markets rallied as an agreement by a group of big banks to deposit US$30B with troubled lender First Republic Bank helped soothe fears of a rolling banking crisis - Dow gained +372-points or +1.2%, The broader S&P500 rose +1.80%, with Information Technology (up +2.82%) and Communication Services (+2.77%) rallying over >2.5% to lead nine of the eleven primary sectors higher. Consumer Staples (down -0.07%) and Real Estate (-0.06%) were the only primary sectors not to advance. Charles Schwab Corp fell -2.8% despite executives disclosing that they had bought nearly US$7M worth of the financial-services giant’s beaten-down stock. The Nasdaq continued to outperform, rallying +2.50%. The technology-centric index is up +5.19% thus far this week and is on track to log its best week of the calendar year-to-date. Adobe Inc gained +5.90% after the software company topped Wall Street expectations for the first quarter after the close of the previous session. Intel Corp climbed +6.23% after analysts at Susquehanna unwound their bearish call on the chip maker, writing that “things are moving enough in the right direction.” Nvidia Corp rallied +5.42%. The small capitalisation Russell 2000 lost -0.49.
US equity markets retreated as concerns around a banking crisis spread to Europe - Dow fell -281-points or -0.87%, paring an earlier decline of as much as 725-points. The broader S&P500 lost -0.70%, with the Energy sector (down -5.42%) under fresh pressure and leading six of the eleven primary sectors lower. Materials (down -3.28), Financials (-2.91%) and Industrials (-2.51%) all fell over >2.5%. Communication Services (up +1.50%) and Utilities (+1.34%) rose over >1% to sit atop the primary sector leaderboard. The technology-centric Nasdaq eked out a +0.05% rise and continued its recent outperformance as hawkish interest rate expectations recede. Apple Inc rose +0.26% and Microsoft Corp +1.78%. Meta Platforms Inc gained +1.92% after the Facebook parent company announced another round of job cuts and further reduced its expense targets earlier this week The small capitalisation Russell 2000 lost -1.74%.
This audio comes from an interview with Michael Knox by ABC Radio presenter Steve Austin on the 8th March 2023.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
In this episode Chris speaks to Zeller CEO and co-founder Ben Pfisterer. Zeller offers a payment processing service aiming to simplify financial management for small to medium sized Australian businesses. This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: www.sub11.com.au/On Instagram: www.instagram.com/hellosub11/On Twitter: twitter.com/hellosub11On LinkedIn: www.linkedin.com/company/sub11/Follow Chris Titley: www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
US equity markets climbed and bonds retreated as some semblance of calm returned in the wake of the collapse of Silicon Valley Bank (SVB) late last week, and as investors parsed the latest monthly inflation figures - Dow gained +336-points or +1.06%, snapping a five session losing streak. The broader S&P500 +1.68%, with Communication Services (up +2.75%), Information Technology (+2.29%) and Financials (+2.12%) all advancing over to >2% to lead all eleven primary sectors higher. The technology centric Nasdaq rallied +2.14%. The small capitalisation Russell 2000 rose +1.87%.
US equity markets weaker as the collapse of SVB Financial Group ‘s Silicon Valley Bank (SVB) continued to reverberate, and with investors eyeing tonight’s AEST inflation figures - Dow fell -91-points or -0.28%, extending declines into a fifth straight session but paring an earlier decline of ~284-points. Boeing Co added +0.15%, with the Wall Street Journal reporting that the aircraft manufacturer is close to a deal under which two airlines in Saudi Arabia - Saudia, along with Riyadh Air - would buy nearly 80 wide-body 787 Dreamliners, with options for around 40 additional aircraft between the carriers. The broader S&P500 slipped -0.15%, with the Financials sector (down -3.85%) leading four of the eleven primary sectors lower. Energy (down -1.96%) and Materials (-1.09%) both fell over >1%. More defensive sectors sat atop the primary sector leaderboard, with Real Estate up +1.60%, Utilities +1.54% and Health Care +0.92%. The Nasdaq +0.45%. Apple Inc rose +1.33%. The small capitalisation Russell 2000 lost -0.49%.
US equity markets as regulators closed SVB Financial Group ‘s Silicon Valley Bank (SVB) and the Federal Deposit Insurance Corp took control on Friday (10 March), marking the largest demise of a U.S. bank since the 2008 financial crisis. The news somewhat overshadowed the latest monthly jobs report - Dow fell -345-points or -1.07%, its fourth straight day of declines to record its longest losing streak since December. Boeing Co (up +0.91%) was one of the few stocks to advance after U.S. aviation regulators cleared the aerospace and defence company to resume deliveries of its 787 Dreamliner jets. “The FAA may resume issuing airworthiness certificates next week,” a Federal Aviation Administration spokesperson said. The broader S&P500 lost -1.45%, with all eleven primary sectors settling in the red for a second consecutive session. Real Estate (down -3.25%) and Materials (-2.15%) were the worst performing sectors on Friday (10 March). Financials fell -1.76%, extending declines for the sector over the past two sessions to almost 6%. Goldman Sachs Group Inc shed -4.22% (extending the previous session’s -2.06% decline). Oracle Corp fell -3.22% after the software company reported fiscal third quarter revenue after the close of the previous session that fell a touch short of analysts’ expectations. The Nasdaq -1.76%. The small capitalisation Russell 2000 dropped -2.95%.
Why the further rate hikes in the US and Australia are driven by budget deficits.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets declined as investors turned their attention to tonight’s AEST latest official jobs figures - Dow fell -544-points or -1.66% to 32,255, closing below its 200-day moving average for the first time since 9 November last year The broader S&P500 -1.85%, Financials (down -4.17%) led all eleven primary sectors lower, with the sector posting its worst single-session decline since June 2020. All of the Materials (-2.54%), Consumer Discretionary (2.36%), Real Estate (-2.29%), and Communication Services (-2.22%) fell over >2%. The Nasdaq shed -2.05%. The small capitalisation Russell 2000 lost -2.81%.
Morgans Equity Strategists Andrew Tang and Tom Sartor review the February 2023 Reporting Season; it's key themes, winners, losers, and outlook for the rest of FY23. We think investors can take comfort from an overall resilient earnings outlook, and that the conservatism which has been built into market expectations since the pandemic appears to remain in place, providing a margin of safety.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets settled modestly higher as markets digested further remarks from Federal Reserve chair Jerome Powell on the pace and duration of higher interest rate rises to fight inflation.- Dow eased -58-points or -0.18%, with Merck & Co Inc (down -2.68%) and Travelers Companies Inc (-1.44%) The broader S&P500 edged +0.14% higher, with Real Estate (up +1.32%) and Information Technology (+0.84%) offsetting falls for the Energy sector (down -1.02%). Tesla Inc fell -3.04% with the U.S. National Highway Traffic Safety Administration began investigating two complaints of steering wheels coming off 2023 Model Y vehicles while vehicle was in motion. Occidental Petroleum Inc gained +2.14% after a new regulatory filing showed Warren Buffett’s Berkshire Hathaway added to its already large stake in the company. The Omaha-based conglomerate bought nearly 5.8M shares of the oil company in recent sessions, bumping Berkshire’s ownership to 22.2%. Eli Lily and Co fell ~0.45% in extended trading (after rising +0.61% in the regular session) after the Wall Street Journal reported that the company’s drug aimed at preventing Alzheimer’s disease before symptoms start, solanezumab, had failed to slow down cognitive decline in healthy older adults at risk of developing the disease. The Nasdaq added +0.40%. The small capitalisation Russell 2000 inched +0.04% higher. Uber Technologies Inc rose +2.15% after Bloomberg reported that the company is weighing a potential spinoff of its freight logistics unit.
China's recovery makes an Australian recession close to impossible.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
In the first episode of Bank to the Future 2.0 we talk to Dom Pym the co-founder of Up. Dom was also the first guest of the original Bank to the Future, back in July of 2020. Up banking is a digital bank created as a collaboration between software development company Ferocia and Bendigo & Adelaide Bank. Dom gives us an update as to where Up has gone since we last spoke to him in 2020.This podcast is partnered with Morgans Financial Limited, Australia’s largest full-service stockbroking and wealth management network.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAUCheck out more from Sub11:Visit the Sub11 website: https://www.sub11.com.au/On Instagram: https://www.instagram.com/hellosub11/On Twitter: https://twitter.com/hellosub11On LinkedIn: https://www.linkedin.com/company/sub11/Follow Chris Titley: https://www.linkedin.com/in/ctitley/The Bank to the Future podcast was founded in 2020, to document the beginning of Open Banking in Australia and to educate investors by profiling and introducing companies and individuals within the digital and traditional banking landscape. Bank to the Future 2.0 serves as a follow-up to this series. Looking back on how the market has changed over the last almost 3 years of Open Banking in Australia, revisiting past guests to see where they are now, as well as introducing new and growing companies and individuals in the space today.This Podcast is for general information purposes only and does not take into account anyone’s personal circumstances. Morgans Financial Limited AFSL 235410.Established in May 2022, Sub11 is a joint venture between Euphemia (investment partner) and Chris Titley.
US equity markets rallied, recording their biggest one-day gains in at least a month on Friday (3 March) after Treasury yields retreated from recent highs ahead of a week that sees the US labour market take centra stage - Dow gained +387-points or +1.17%, The broader S&P500 rose +1.61%, with Information Technology (up +2.14%), Consumer Discretionary (+2.12%) and Communication Services (+2.10%) gaining over >2% to lead all eleven primary sectors higher. The Nasdaq rallied+1.97%. The small capitalisation Russell 2000 gained +1.35%.
US equity markets climbed despite economic data exacerbating concerns that interest rates are set to stay higher for longer than previously forecast - Dow gained +342-points or +1.05% to 33,003.57. Salesforce Inc jumped +11.50% after the cloud client relationship management software group comfortably exceeded fourth quarter earnings per share (EPS) and revenue forecasts after the close of the previous session and provided very strong full year guidance. The broader S&P500 rose +0.76%, with Utilities (up +1.82%) leading nine of the eleven primary sectors higher and with six sectors climbing over >1%. Tesla Inc dropped -5.85% after the company failed to unveil details of any next-generation vehicles during its much-anticipated investor day on Wednesday (2 March). The Nasdaq climbed +0.73%. Advanced Micro Devices Inc gained +2.75% following a CNBC report that activist hedge fund Third Point had taken a passive stake in the chipmaker. The small capitalisation Russell 2000 added edged +0.21% higher.
A mixed start to March for US equity markets - Dow inched +5-points higher. 3M Co gained +2.29%, rebounding from a five month low after the maker of consumer, industrial and healthcare products said the U.S. Department of Defence’s records show that the “vast majority” of the 175,000 claimants in litigation over the company’s Combat Arms earplugs have “no hearing impairment” under American Medical Association standards. Some analysts had estimated potential liabilities from the litigation at ~US$14B. Caterpillar Inc rallied +3.81% after the construction- and mining-equipment maker said it reached a six-year “tentative labour agreement” with the United Autoworkers (UAW) union. The broader S&P500 eased -0.47%, with Utilities (down -1.72%), Real Estate (-1.49%), and Consumer Discretionary (-1.28%) all down over >1% and leading eight of the eleven primary sectors lower. Energy (up +1.94%) sat atop the primary sector leaderboard. Tesla Inc fell over >2.5% in extended trading (extending a -1.43% decline in the regular session) as the electric vehicle manufacturer’s Investor Day got underway. The Nasdaq lost -0.66%. The small capitalisation Russell 2000 eked out a +0.07% gain.
Why the Saudis and the Emirates control the oil price from the second half of 2023.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
The benchmark US indices retreated to round out a tough month for equity markets - Dow fell -232-points or -0.71% to 32,656.70, settling at its lowest level of 2023 to date (and logging its lowest close since 9 November). Goldman Sachs Group Inc fell -3.80% after hosting their 2023 investor day, with Chief Executive David Solomon acknowledging mistakes in an ill-fated foray into consumer banking and raising the prospect of selling parts of the business The broader S&P500 -0.30%, with Utilities (down -1.72%) and Energy (-1.44%) leading eight of the eleven primary sectors lower. Materials (up +0.45%) was the leading primary sector performer overnight. Tesla Inc eased -0.92% ahead of their Investor Day tonight AEST. The Nasdaq -0.10%. Applied Materials Inc outperformed its chipmaking peers, rising +3.64% after unveiling its Centura Sculpta patterning system that promises a lower cost way of etching the transistors into the silicon wafers used to make semiconductors. Intel Corp edged +0.12% higher, while Nvidia Corp fell -1.21%. The small capitalisation Russell 2000 inched +0.04% higher. Paramount Global dropped -2.7% after The Wall Street Journal reported that the media and entertainment company had turned down a bid from former executive David Nevins to buy its Showtime streaming service for more than >US$3B.
US equity markets settled with modest gains after the benchmark indices recorded their worst weekly performance of 2023 last week - Dow added +72-points or +0.22%, The broader S&P500 gained +0.31%, with Consumer Discretionary (up +1.18%) and Industrials (+0.83%) leading seven of the eleven primary sectors higher overnight. More defensive sectors underperformed, with Utilities (down -0.77%), Health Care (0.31%) and Consumer Staples (-0.18%). Railroad operator Union Pacific Corp rallied +10.09% after the company announced that Chief Executive Officer (CEO) would step down in 2023, prompting an upgrade from Bank of America. Tesla Inc rose +5.46% following a Reuters report that the company’s Brandenburg plant in Germany hit a production rate of 4,000 vehicles per week ahead of schedule, quadrupling from May. The electric vehicle manufacturer hosts an Investor Day on Wednesday night AEST (1 March) Albemarle Corp rose +3.01% after Wells Fargo named the specialty chemicals company a signature pick, noting: “ALB remains our preferred growth name in chemicals, given its position as one of the world’s largest low-cost lithium suppliers.” The Nasdaq rose +0.63%. The small capitalisation Russell 2000 settled +0.31% higher.
US equity markets fell on Friday (24 February) to wrap up their worst weekly performance of 2023 as the latest economic data was seen cementing expectations the Federal Reserve will continue lifting its key interest rate above >5% in its effort to bring down inflation - Dow down -337-points or -1.02%, dropping over >500-points at its session lows on Friday (24 February). Boeing Co fell -4.8% following confirmation after the close of the previous session that the airplane maker had temporarily halted deliveries of the 787 Dreamliner to conduct additional analysis on a fuselage component. Home Depot Inc (down -0.89%) and Microsoft Corp (-2.18%) were other notable index drags. The broader S&P500 fell -1.05%, with Real Estate (down -1.82%), Information Technology (-1.77%) and Consumer Discretionary (-1.56%) all down over >1.5% to lead nine of the eleven primary sectors lower. Materials (up +0.65%) and Financials (+0.10%) were the only primary sectors to advance. Adobe Inc fell -7.63% after a Bloomberg report, citing people familiar with the matter, said the U.S. Justice Department is preparing a lawsuit to block the company’s $20B acquisition of start-up Figma. The Nasdaq shed -1.69%. Nvidia Corp lost -1.60% Goldman Sachs upgraded the chipmaker on the back of its fourth-quarter results. The small capitalisation Russell 2000 lost -0.92%.
Morgans Co-head of Research Alex Mees updates us following the results of DMP and LOV this February reporting season. DMP disappointed the market with 1H23 EBIT that fell 5% short of our forecast and 7% short of consensus. LOV reported NPAT 1% higher than our forecast. Sales growth was 45%, driven by store rollout and +12.5% LFL sales growth.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Analyst Max Vickerson gives us an update following Origin's 1H result, which was well below expectations as a result of the very tight wholesale electricity market, increase in APLNG operating costs, and higher tax burden on cash distributions. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets modesty weaker as investors digested the minutes of the Federal Reserve’s most recent monetary policy meeting - Dow eased -85-points or -0.26%, The broader S&P500 slipped -0.16% to extend losses into a fourth straight session, with Real Estate (down -1.02%) and Energy (-0.77%) leading nine of the eleven primary sectors lower. Materials (up +0.68%) and Consumer Discretionary (+0.52%) were the only primary sectors to advance. The Nasdaq added +0.13%. Intel Corp fell -2.26% after the struggling chipmaker cut its dividend by more than >60% to US$0.125c per share. The small capitalisation Russell 2000 gained +0.34%.
We think that a shallow US recession has already begun and will continue through the first two quarters of 2023.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets resumed trading following the Presidents Day holiday and booked their worst single session declines since 15 December last year as a fresh rise in Treasury yields continued to pressure market sentiment - Dow fell -697-points or -2.06%, The broader S&P500 -2.00% to 3,997.34, falling for a third consecutive session and erasing all of February’s gains. The index also cut its 2023 gain in half (to +4.11%), falling more than >4.7% from its 2 February intra-session peak (4,195.44). Consumer Discretionary (down -3.34), Information Technology (-2.40%), Industrials (-2.29%), Communication Services (-2.29%) and Financials (-2.01%) all declined over >2% to lead all elven primary sectors lower. The Nasdaq shed -2.50%. Microsoft Corp (down -2.09%) said it will bring its Xbox PC games to Nvidia Corp’s cloud gaming service, after the chipmaker had reportedly expressed opposition to a major Microsoft gaming deal. Nvidia lost -3.43% ahead of the release of its quarterly result tonight. The small capitalisation Russell 2000 dropped -2.99%.
Morgans Senior Analyst Chris Brown interviews Malcolm Norris of Sunstone Metals regarding the most recent results from the El Palmar Copper-Gold Project in Ecuador. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets mostly weaker on Friday (17 February) as robust economic data and hawkish commentary from Federal Reserve officials continued to fan investor fears that the Federal Reserve will need to apply a brake to the US economy for longer than anticipated just last month - Dow rose +130-points or +0.39%, with biotechnology company Amgen Inc (up +2.69%) and diversified health care company UnitedHealth Group Inc (+2.41%) among the leading index performers. The broader S&P500 eased -0.28%, with Energy (down -3.65%) the major drag. The more defensive Consumer Staples (+up +1.29%) and Utilities (+1.00%) outperformed. Tesla Inc rose +3.10%, with Bloomberg reporting after the close that the electric vehicle manufacturer is considering buying Canadian miner Sigma Lithium Corp (down -2.64%). Tesla has been talking with advisers about a potential bid, and Sigma Lithium is one of “multiple mining options” being explored, the report said. The Nasdaq fell -0.58%. Meta Platforms Inc (up +0.26%) announced a new paid verification subscription service called Meta Verified over the weekend. For US$11.99 per month on the web and US$14.99 per month on iOS, users on Meta’s Instagram and Facebook platforms will be able to submit their government ID and get a blue verification badge. The service will be introduced in Australia and New Zealand this week, and more countries will follow, CEO Mark Zuckerberg said. The small capitalisation Russell 2000 added +0.21%.
In an ABC Radio interview with Steve Austin, Morgans Chief Economist Michael Knox discusses the Australian economy, interest rate rises, and how the Fed and the RBA are trying to outwit the market.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Senior Analyst Nick Harris updates us on Telstra's (ASX:TLS) 1H23 result which was broadly in line with expectations and full-year guidance was reiterated, albeit with consumers buying fewer new mobile phone handsets.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated amid fresh evidence of stubborn inflation, and following some hawkish commentary from Federal Reserve speakers - Dow fell -431-points or -1.3%, Microsoft Corp and Walt Disney Co contributed the most to the Dow’s decline, down -2.66% and -3.12% respectively. The broader S&P500 shed -1.4%, with Consumer Discretionary (down -2.16%), Information Technology (-1.75%) and Communication Services (-1.55%) all down over >1.5% to lead all eleven primary sectors lower. Bank of America Corp (down -0.79%) is planning to cut jobs in its investment bank, according to a Bloomberg News report, albeit the cuts could affect less than 200 banking globally according to people familiar with the matter. Tesla Inc fell -5.69% after the company issued a voluntary recall notice for 362,758 vehicles in the US equipped with the company’s experimental driver-assistance software, which is marketed as Full Self-Driving Beta or FSD Beta. The electric vehicle manufacturer will deliver an over-the-air software update to cars to address the issues. The FSD Beta system may cause crashes by allowing the affected vehicles to: “Act unsafe around intersections, such as traveling straight through an intersection while in a turn-only lane, entering a stop sign-controlled intersection without coming to a complete stop, or proceeding into an intersection during a steady yellow traffic signal without due caution,” according to a safety recall report on the website of the National Highway Traffic Safety Administration. The Nasdaq dropped -1.78%. Cisco Systems Inc rallied +5.24% after reported better-than-expected fourth quarter earnings per share (US0.88c versus consensus estimates for US$0.86c) and revenue (US$13.59B versus consensus US$13.43B) after the close a day earlier. Roku Inc soared +11.15% after the streaming service reported a narrower-than-expected fourth quarter loss per share (-US$1.70 versus consensus US$1.73), and better-than-expected revenue after the close of the previous session. The small capitalisation Russell 2000 lost -0.96%.
Senior Analyst Derek Jellinek gives an update on CSL Limited (ASX:CSL) and Cochlear (ASX:COH) following their recent reporting season results.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Senior Analyst Nathan Lead gives his comments on the solid result from Commonwealth Bank this reporting season. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets advanced as investors digested stronger-than-expected retail sales figures for January, the latest in a string of economic data that has fuelled investor bets that the Federal Reserve will have to raise interest rates further to curb inflation - Dow edged +39-points or +0.11%, rallying more than >250-points from its intrasession low. The broader S&P500 +0.28%, with Communication Services (+1.017%) and Consumer Discretionary (+1.16%) both rising over >1% to lift nine of the eleven primary sectors. Energy (down -1.78%) and Health Care (-0.51%) settled in the red. The Nasdaq +0.92%. Airbnb Inc jumped +13.35% after reporting record fourth-quarter revenue and profit after the close of the previous session to achieve its first profitable year. The small capitalisation Russell 2000 rose +1.09%.
US equity markets settled modestly weaker as investors parsed the latest inflation figures - Dow fell -157-points or -0.46%, Boeing Co (up +1.30%) The broader S&P500 dipped -0.03%, with Real Estate (down -1.04%) and Consumer Staples (-0.93%) leading seven of the eleven primary sectors lower. Consumer Discretionary (up +1.18%) sat atop the primary sector leaderboard. Ford Motor Co (down -0.92%) flagged plans to cut 3,800 jobs in Europe over the next three years as it looks to lower costs and improve profitability while shifting production toward electric vehicles. The company also temporarily halted production and delivery of its electric pickup truck due to a battery problem. Occidental Petroleum Corp rose +2.44% after Warren Buffett’s Berkshire Hathaway Inc (up +2.44%) disclosed that it increased its stake in the oil and gas company to 28.0% from 21.4%. Berkshire Hathaway also increased its stake in Apple Inc (down -0.42%) during the fourth quarter to 5.8%, according to the latest filing with the Securities and Exchange Commission (SEC) The Nasdaq added +0.57%, recouping earlier session declines. Tesla Inc rallied +7.51% and chipmaker Nvidia Corp +5.43%. The small capitalisation Russell 2000 slipped -0.06%.
US equity markets advanced as investors’ attention turned to tonight’s AEST January inflation figures - Dow rose +377-points or +1.11%, underpinned by solid gains for Microsoft Corp (up +3.12%), Nike Inc (+2.39%), Salesforce (+2.42%) and Intel Corp (+2.70%). The broader S&P500 climbed +1.14%, with Information Technology (up +1.77%), Consumer Discretionary (+1.46%), Consumer Staples (+1.17%), Financials (+1.10%) and Communication Services (+1.10%) all rising over >1% and leading ten of the eleven primary sectors higher. Energy (down -0.61%) was the only primary sector not to advance overnight. Tesla Inc lost -1.14%. Even those losses combined with those from shorting Coinbase Global Inc (down -1.21%), Microsoft Corp and Lucid Group Inc (up +1.69%) still don’t reach the losses incurred by Tesla shorts. Data compiled by S3 partners shows hedge funds have lost US$7.56B shorting the electric vehicle manufacturer on a mark-to-market basis over the last 30 days. That’s more than double the losses incurred by the second-least profitable short on the list, Apple Inc (up +1.88%), at US$2.6B. The Nasdaq rallied +1.48%. Meta Platforms Inc rose +3.03% following a Financial Times report saying further job cuts could be in the pipeline. In November, the Facebook parent announced it was laying off around 11K employees, which equates to 13% of its staff. The small capitalisation Russell 2000 rose +1.07%.
US equity markets retreated on Friday (10 February) as investors digested mixed corporate earnings and eyed the latest inflation figures later this week - Dow rose +169-points or +0.50%, The broader S&P500 added +0.22%, with Energy (up +3.92%) leading eight of the eleven primary sectors higher. ConocoPhillips rallied +4.67% and ExxonMobil Corp +4.22%. The Nasdaq eased -0.61%. The small capitalisation Russell 2000 added +0.18%.
Analyst Max Vickerson gives his comments on the disappointing result of AGL Energy this reporting season.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated, reversing earlier session gains - Dow fell -249-points or -0.73%, unwinding an earlier rally of over >300-points. Walt Disney Co fell -1.27% after the entertainment giant topped fiscal first-quarter expectations, and Chief Executive Bob Iger announced significant restructuring plans after the close of the previous session. Activist investor Nelson Peltz also called time on his proxy fight against Disney. Salesforce Inc rose +2.38% following news after the close of the previous session that a fifth activist investor, Third Point LLC, had acquired a stake in the company. The broader S&P500 -0.88%, giving up an earlier ~0.9% gain. Communication Services (down -2.80%) was the worst performing sector for a second straight session and led all eleven primary sectors lower. Tesla Inc (up +3.00%) extended its rally into an eighth straight session and has more than doubled since touching a 52-week low. Elon Musk said the electric vehicle maker’s Master Plan 3 would be unveiled at the company’s annual meeting and investor event on 1 March. The Nasdaq -1.02%, having been ~1.4% higher earlier in the session. Google parent Alphabet Inc fell -0.69% (following a -7.68% drop in the previous session) a day after the company held an event to show off its new artificial intelligence (AI) chatbot called Bard, and as investors grew concerned around rising competition in the artificial intelligence (AI) space. Microsoft Corp (-1.17%) held an event to show off its own AI technologies in its competing search engine earlier in the week. The small capitalisation Russell 2000 lost -1.33%.
Morgans' Analyst Alex Lu gives us an update covering the Industrials Sector stocks under coverage for this coming Reporting Season.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
Morgans Senior Analysts Nathan Lead, Richard Coles, and Scoot Murdoch present on each of their sub-sectors of financials heading into this reporting season. Including; Banks, insurance, and diversified financials. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated as investors continued to ponder the latest observations from Federal Reserve Chair Jerome Powell delivered a day earlier, and comments from a parade of central bank officials overnight - Dow fell -208-points or -0.61%. Salesforce Inc rose ~0.8% in extending trading (after falling -0.96% in regular trading) following reports a fifth activist investor, Third Point LLC, had acquired a stake in the company. Salesforce has also been reportedly targeted by ValueAct Capital Partners LP, Elliott Investment Management LP, Starboard Value LP and Inclusive Capital amid slowing growth. The broader S&P500 shed -1.11%, with Communication Services (down -4.13%) leading all eleven primary sectors lower as Alphabet Inc shed -7.68% after the company held an event to show off its new artificial intelligence (AI) chatbot called Bard, one day after competitor Microsoft Corp (-0.31%) held an event to show off AI technologies in its competing search engine. Tesla Inc rose +% The Nasdaq dropped -1.68%. The small capitalisation Russell 2000 lost -1.52%. Traders noted there may be more clarity on the Federal Reserve’s next interest rate move with the publication of consumer price index, retail and inflation data next week.
Morgans' Analyst Steven Sassine and Senior Analyst Nick Harris give us a rundown of the Technology Sector heading into this reporting season, as well as some key stock picks from the sector.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets advanced after a volatile session as investors digested the latest observations from Federal Reserve Chair Jerome Powell - Dow gained +266-points or +0.78%, The broader S&P500 +1.29%, with Energy (up +3.08%), Communication Services (+2.48%) and Information Technology (+2.46%) climbing over >2.5% to lead eight of the eleven primary sectors higher. The more defensive Consumer Staples (down -0.36%), Real Estate (-0.31%) and Utilities (-0.08%) settled in the red. More companies announcing job cuts, with eBay Inc (up +0.38%) flagging plans to cut 500 jobs or ~4% of its workforce, according to a filing with the Securities and Exchange Commission (SEC). Zoom Video Communications Inc jumped +9.85% after the company announced plans to cut about 1,300 employees, or ~15% of its workforce. Chief Executive Officer (CEO) Eric Yuan wrote in a blog post shared to the company’s website that as the world continues to adjust to life after the pandemic, the company needs to adapt to the “uncertainty of the global economy” as well as “its effect on our customers.” The Nasdaq outperformed with +1.90% rally. The small capitalisation Russell 2000 +0.76%.
US equity markets retreated as investors eyed a fresh rise in Treasury yields following last Friday’s (3 February) jobs report, and a speech from Federal Reserve Chair Jerome Powell tonight AEST - Dow slipped -35-points or -0.10%, paring an earlier decline of over >240-points. The broader S&P500 fell -0.61%, with Communication Services (down -1.31%), Information Technology (-1.22%) and Materials (-1.08%) all declining over >1% to lead nine of the eleven primary sectors lower. The more defensive Utilities (up +0.87%) and Consumer Staples (+0.02%) were the only primary sectors to advance. The Nasdaq lost -1.00%. Dell Technologies Inc fell -3.03% after joining the ranks of other technology companies slashing jobs, confirming in a regulatory filing that it will be reducing its workforce by 5%. The small capitalisation Russell 2000 declined -1.40%. After Bed Bath & Beyond BBBY more than doubled regular trading (before settling +92.13% higher), the company revealed plans to sell convertible preferred stock as well as warrants to purchase common shares and convertible preferred stock. The stock tumbled over >30% in after hours trading.
The resilience of the Australian consumer has been a major area of discussion among investors in recent months. Co-Head of Research at Morgans Alex Mees previews the Consumer Sector for the February 2023 Reporting Season.With the upcoming reporting season, there are a number of key themes to watch out for. The most critical information to look out for is the shape of consumer demand. We expect it to have remained robust through Christmas and into January, though it’s likely to moderate as we move into the second half of the financial year. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets climbed as investors seized on signs that interest rates are close to peaking on both sides of the Atlantic - Dow slipped -39-points or -0.11%, The broader S&P500 gained +1.47%, with Communication Services (up +6.74%) leading seven of the eleven primary sectors higher. Consumer Discretionary (+3.08%) and Information Technology (+2.78%) both climbed over >2.5%, while Energy sat at the foot of the primary sector leaderboard for a second straight session with a -2.52% decline. FedEx Corp rose +% buoyed by upgrades from Bank of America and Citi. The technology-centric Nasdaq outperformed for a third consecutive session, rallying +3.25% and remaining on track to log its fifth consecutive weekly gain. The index is ~19.5% above its recent low in late December and on the cusp of entering a bull market. Meta Platforms Inc soared +23.28% after providing better-than-expected first quarter revenue guidance after the close of the previous session. The small capitalisation Russell 2000 rose +2.06%.
Morgans' Senior Analysts Fiona Buchanan and Nathan Lead give a sector preview of our stocks under coverage that falls under Real Assets (REITs and Infrastructure). They cover key themes, catalysts, and guidance heading into this earning season.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets staged a late, sharp rebound as investors digested the latest observations from Federal Reserve Chair Jerome Powell following the conclusion of the central bank’s latest two day monetary policy meeting - Dow settled +7-points or +0.02% higher after sliding over >500-points earlier in the session. The broader S&P500 rose +1.05% to 4,119.21, reversing an earlier decline of almost 1% and settling at it highest level since August last year. Information Technology (up +2.29%) and Consumer Discretionary (+1.89%) rallied over >1.5% to lead ten of the eleven primary sectors higher. Energy (down -1.89%) was the only primary sector to settle in the red. Both the Dow and S&P 500 recorded their biggest intraday recovery from session lows since 13 October last year, according to Dow Jones Market Data. The Nasdaq rallied +2.00% to 11,816.32 and its highest level since mid-September last year, boosted by gains for chipmakers. Advanced Micro Devices Inc soared +12.63% after reporting a better-than-expected fourth quarter result after the close of the previous session. The small capitalisation Russell 2000 gained +1.49%.
US equity markets rallied as solid corporate earnings releases and encouraging inflation data pushed the S&P 500 to its best January since 2019 - Dow rose +369-points or +1.09%, The broader S&P500 gained +1.46%, with Materials and Consumer Discretionary both gaining +2.22% to lead all eleven primary sectors higher. PayPal Holdings Inc rose +2.32% following reports that Chief Executive Officer (CEO) Dan Schulman had sent an email to staff announcing plans to lay off ~2K employees or ~7% of the company’s workforce. PayPal said in August last year that it was targeting at least US$1.3B in cost savings during 2023. The technology-centric Nasdaq climbed +1.67%, cementing its best January performance since 2001 amid a broad-based rally in equities that saw some of 2022’s worst performers take the lead. The small capitalisation Russell 2000 gained +2.45%.
As attention turns to the February first half reporting season, earnings estimates continue to defy expectations of an imminent slowdown. However, fears that they will materially decelerate in 2H23 will temper sentiment when anticipated headwinds from rising interest rates hits home.Read more: https://www.morgans.com.au/Blog/2023/January/Reporting-Season-Playbook-February-2023Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated ahead of a week full of high-profile risk events, including key central bank interest rate decisions and economic data, and major US corporate earnings releases - Dow fell -261-points or -0.77%. The broader S&P500 dropped -1.30%, with Energy (down -2.29%), Information Technology (-1.94%), Communication Services (-1.80%) and Consumer Discretionary (-1.71%) all falling over >1.5% to lead ten of the eleven primary sectors lower. Consumer Staples (up +0.07%) was the only primary sector to advance. Johnson & Johnson (J&J) fell -3.70% after The Wall Street Journal (WSJ) reported that a federal appeals court rejected the consumer products and pharmaceutical company’s move to place its liabilities for tens of thousands of claims linking talc-based products to cancer into bankruptcy. The WSJ report said the talc bankruptcy case was dismissed, because the appeals court said J&J’s talc unit, LTL Management LLC, wasn’t in financial distress. J&J faced about 38,000 lawsuits, over links to the company’s Baby Powder to ovarian cancer, asbestos poisoning and other illnesses. The Nasdaq shed -1.96%. Three of the four largest U.S. companies by market value - Alphabet Inc (down -2.45%), Amazon.com Inc (-1.65%) and Apple Inc (-2.01%) - all fell ahead of release of their latest quarterly results after the market close on Thursday night AEST (2 February). The small capitalisation Russell 2000 lost -1.35%.
US equity markets rallied to cap a strong week that saw investors weigh a host of key corporate earnings releases and key economic data, and as investors eye another busy week ahead on the earnings calendar along with some key global central bank interest rate decisions – Dow edged +29-points or +0.08% higher to book a sixth consecutive session of gains and longest winning streak since late October last year. The broader S&P500 rose +0.25% to 4,070.56, recording its highest settlement since 2 December last year. The Consumer Discretionary sector gained +2.27% to be the leading primary sector performer on Friday (27 January) underpinned by the latest double-digit percentage rally for Tesla Inc (up +11.00%). Electric vehicle (EV) manufacturer Lucid Group Inc spiked +43.00% amid rumours that Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, intended to take the company private. Energy (down -1.99%) was the worst performing primary sector but still sits +4.2% higher year-to-date. With 30% of the Energy sector's 23 companies having reported quarterly results so far, fourth-quarter earnings are expected to have climbed +60% from a year earlier, and +155% for full-year 2022, according to Refintiv IBES. But earnings for the Energy sector are expected to decline -15% this year, the biggest drop among the 11 S&P 500 sectors. Hasbro Inc tumbled -8.11% after the toymaker warned of weak holiday quarter results and said it would cut 1,000 jobs (equating to ~15% of its workforce). The Nasdaq gained +0.95% to 11,621.71, the technology centric indice’s highest close since 14 September last year. Intel Corp dropped -6.41% after the chipmaker’s fourth quarter result released after the closing bell of the previous session fell short of consensus analyst expectations, as did the accompanying outlook. The small capitalisation Russell 2000 rose +0.44% (to be up almost 7% month-to-date).
Senior Analyst Dr Derek Jellinek gives an update on the Healthcare sector heading into February's Reporting Season. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets rallied as investors continued to comb through the latest batch of corporate earnings releases, and after a stronger-than-expected fourth quarter gross domestic product (GDP) print - Dow rose +206-points or +0.61%, The broader S&P500 advanced +1.10% to 4,060.43 and a near two month high, with the Energy sector (up +3.32%), Consumer Discretionary (+2.03%), Communication Services (+1.65%) and Information Technology (+1.61%) all climbing over >1.5% and leading ten of the eleven primary sectors higher. More defensive sectors underperformed, with Consumer Staples (down -0.28%) the only primary sector to settle in the red. Tesla Inc jumped +10.97% after reporting a reported a mixed fourth quarter result after the close of the previous session. Chevron Corp rose +4.86% after announcing a US$75B stock buyback programme and a dividend hike (to US$1.51 per share from US$1.42) after the closing bell of Wednesday’s (25 January) session. The Nasdaq rallied +1.76%. The small capitalisation Russell 2000 gained +0.57%.
US equity markets mixed as investors continued to digest the latest batch of corporate earnings releases - Dow rose +104-points or +0.31%, booking a third straight session of gains. The broader S&P500 dipped -0.07%, with Communication Services (-0.69%) and Health Care (-0.65%) both down over >0.5% and leading five of the eleven primary sectors lower. Industrials sat atop the primary sector leaderboard with a +0.65% rise. The Nasdaq slipped -0.27%. The small capitalisation Russell 2000 lost -0.27%.
US equity markets advanced to cap a choppy trading week, with investors eyeing a big fortnight on the corporate earnings calendar - Dow gained +331-points or +1.00%. Goldman Sachs Group Inc fell -2.54% after the Wall Street Journal (WSJ) reported that the Federal Reserve is investigating the investment bank’s consumer business. The regulator is looking into whether Goldman had the right safeguards in place to protect consumers when it increased lending in its Marcus division, according to the WSJ report, citing sources familiar with the matter. The broader S&P500 rose +1.89% to log its best daily percentage gain since 6 January. Communication Services (up +3.96%) and Information Technology (+2.72%) both rose over >2.5% to lead all eleven primary sectors higher. Costco Wholesale Corp rose +2.26% after announcing late Thursday (19 January) that its board reauthorised a stock buyback program of up to US$4B. The Nasdaq rallied +2.66%. Netflix Inc jumped +8.46% after the streaming giant posted stronger-than-expected paid subscriber numbers for the fourth quarter (7.66M versus consensus 4.57M) after the close of last Thursday’s (19 January) session, while the company also disclosed that co-Chief Executive Officer (CEO) Reed Hastings would be stepping down from his position and transitioning to the post of executive chairman. Google parent Alphabet Inc gained +5.34% after becoming the latest technology company to announce job cuts, with plans to cut 12K jobs across various areas, roles and regions within the company (equating to over 6% of its global workforce). All of Amazon.com Inc (up +3.81%), Meta Platforms Inc (+2.37%), Microsoft Corp (+3.57%) and Twitter Inc have slashed their head counts recently. Eli Lilly and Co fell -1.43% after the U.S. Food and Drug Administration (FDA) rejected the pharmaceutical company’s experimental Alzheimer’s disease treatment as it had not provided enough trial data. The small capitalisation Russell 2000 rose +1.69%.
US equity markets - Dow fell -252.40 points or -0.76% to 33,044.556, The broader S&P500 -30.01 points -0.76% to 3,898.85. The Nasdaq -104.74 points or -0.96% to 10,852.27. The small capitalisation Russell 2000 -18.02 points or -0.97% to 1,836.35.
US equity markets accelerated falls into the close following lower than expected retail sales data - Dow fell -613.89 points or -1.81% to 33,296.96, The broader S&P500 -62.11 points -1.56% to 3,928.86, The Nasdaq -138.10 points or -1.24% to 10,957.01. The small capitalisation Russell 2000 -27.82 points or -1.48% to 1,856.47. Microsoft confirmed it will layoff 10,000 or approximately 5% of staff taking recent tech layoffs to over 60k.
US equity markets were mixed as 7 of the 11 sectors dropped lead by Materials and Communication Services - Dow fell -391.76 points or 1.14% to 33,910.85, The broader S&P500 8.12 points or -0.20% to 3,990.97, The Nasdaq bounced on the back of Tesla, 15.96 points or 0.14% to 11,095.11. The small capitalisation Russell 2000 fell 2.95 points or 0.16% to 1,884.08.
Morgans Equity Strategist Andrew Tang updates us on key catalysts, cycles, and themes for markets and sectors heading into 2023.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
European bourses lifted on lower energy prices (Natural Gas futures falling 15% over night) and Chinese re-opening, Janet Yellen is scheduled to meet the Chinese Finance Minister in Zurich this week. The pan-European Stoxx 600 index (which includes UK equities) +0.46%.to . Germany's DAX up +0.3% and France's CAC rose +0.28%. In economic data, German Wholesale prices climbed 12.8%. German economic sentiment will be released later tonight.
US equity markets climbed as investors weighed a flurry of bank earnings results for the fourth quarter and fresh data on consumer sentiment and inflation expectations - Dow rose +113-points or +0.33%, Caterpillar Inc rose +1.33% to US$258.46, logging a fourth consecutive record closing high after Bank of America analysts turned bullish on the company in the belief that the construction- and mining-equipment maker will weather a 2023 recession better than many might expect. Bank of America upgraded their rating on Caterpillar to ‘Buy’ from ‘neutral’, and lifted their target price by +36% to US$295. The broader S&P500 added +0.40%, with Consumer Discretionary (up +0.97%) sitting atop the primary sector leaderboard on Friday (13 January) and leading eight of the eleven primary sectors higher. The more defensive Real Estate (down -0.61%) and Utilities (-0.44%) underperformed. Tesla Inc fell -0.94% after the electric vehicle cut prices in the U.S. and Europe again, according to listings on the company’s website last Thursday night AEST (12 January). The Nasdaq gained +0.71%. The small capitalisation Russell 2000 added +0.58%.
US equity markets advanced as investors digested the latest inflation report that saw the cost of living cool for the first time on a monthly basis since the onset of the COVID pandemic in 2020, while the annual rate of inflation fell for the sixth month in a row - Dow rose +217-points or +0.64%. Walt Disney Co rose +3.61% after the company announced Mark Parker, the executive chairman of Nike Inc (down-0.04%), as its new chairman. In addition, the company opposed Nelson Peltz of Trian as he pushes for a seat on the board, igniting a proxy battle. The broader S&P500 added +0.34%, with Energy (up +1.87%) and Real Estate (+1.09%) gaining over >1% to lead eight of the eleven primary sectors higher. The more defensive sectors underperformed overnight, with Consumer Staples (down -0.79%), Utilities (-0.64%) and Health Care (-0.39%) all settling in the red. It marked the first time the S&P 500 has risen three days in a row since early November. American Airlines Group Inc jumped +9.71% after the carrier boosted its revenue and profit estimates for the fourth quarter. The airline, which reports earnings 26 January, cited strong demand and high fares for the hike in estimates. Tesla Inc edged +0.28% higher. Retail traders unloaded US$746 million worth of stock in the electric vehicle maker over the past week, bringing the total outflow over the last three weeks to US$2.1B, according to data from JPMorgan. The selling came even as investors piled back into stocks, buying US$1.2B worth of equities in the past week. That buying included US$157M of Amazon.com Inc (up +0.19%) and US$102M of Apple Inc (down -0.06%). The Nasdaq climbed +0.65%, extending its gains into a fifth consecutive session and marking the longest winning streak for the technology-centric index since 8 June last year. The small capitalisation Russell 2000 +1.74%.
US equity markets rallied ahead of the release of the latest monthly consumer inflation figures tonight AEST - Dow gained +269-points or +0.80%, The broader S&P500 +1.28%, with Real Estate (up +3.60%) and Consumer Discretionary (+2.68%) climbing over >2.5% to lead all eleven primary sectors higher. Ford Motor Co (up +2.96%) extended its rally into a ninth straight session and logged its highest settlement since 14 December. The Nasdaq rallied +1.76%, with the technology-centric index logging its first four-day rally since September. The small capitalisation Russell 2000 gained +1.05%. Carvana Co jumped +24.43% to US$5.50 on heavy volume and had rebounded ~47.8% since closing at a record low of US$3.72 on 27 December. The rally came despite no stock specific news (the company hasn’t issued a press released or a filing with the Securities and Exchange Commission yet this year) although there was an analyst note published saying data sources indicated wholesale used vehicle prices showed signs of normalisation through the last couple months of the fourth quarter, and the average daily sales conversion rate improved in December from November.
US equity markets climbed as investors continue to eye inflation figures and fourth quarter corporate earnings later in the week - Dow rose +186-points or +0.56%, Boeing Co (down -0.90%) reported that it had delivered 69 planes in December and 152 planes in the 2022 fourth quarter overall, marking its best month of deliveries in four years and the highest quarterly delivery figure since the fourth quarter of 2018, when the planemaker delivered 238 planes. Deliveries dropped off in 2019 after the 737 MAX was grounded worldwide that March, with that plane not flying commercially again until late 2020. After the MAX’s issues came COVID-19, which hurt demand for air travel and airline profits and saw deliveries bottom out at 20 planes in the second quarter of 2020. For the full year, Boeing delivered 480 jets in 2022, up from 340 delivered in 2021. Boeing delivered 806 jets in 2018, the year before any impact from the 737 MAX’s grounding or the COVID-19 pandemic. The broader S&P500 gained +0.70%, with Communication Services (up +1.29%), Consumer Discretionary (+1.26%) and Materials (+1.02%) all rising over >1% to lead ten of the eleven primary sectors higher. Consumer Staples (down -0.16%) was the only sector to decline overnight. The technology-centric Nasdaq rallied +1.01%, securing its first three day winning streak since November. The small capitalisation Russell 2000 outperformed with a +1.49% advance.
US equity markets retreated, fumbling solid gains logged earlier in the session - Dow fell -113-points or -0.34%, relinquishing an earlier rally of over >300-points. Goldman Sachs Group Inc rose +1.41% following reports the investment banking giant will begin cutting up to 3,200 jobs within days. The cut represents ~6.5% of Goldman’s 49K workforce but is below the worst-case scenario of 3,900 jobs chief executive David Solomon and his management team had discussed late last year. The broader S&P500 dipped -0.08%, with Health Care (down -1.66%) and Consumer Staples (-1.03%) both falling over >1% to be the worst performing primary sectors overnight. Information Technology (up +1.09%) was the leading sector performer. Tesla Inc gained +5.93% continuing a rebound that saw the stock reverse an intraday loss last Friday (6 January) of ~8% to close up +2.5%. The initial dip came after Tesla said it has slashed prices in China for the second time in three months. However, the technology centric Nasdaq rose +0.63%. The small capitalisation Russell 2000 added +0.17%.
US equity markets rallied sharply on Friday (6 January) after the latest jobs report recorded a cooling in wages growth, ending the first week of 2023 higher - Dow rallied +701-points or +2.13% to 33,630.61, with all 30 index constituents advancing. The index also climbed back above its 50-day moving average (33,346.77).The broader S&P500 gained +2.28%, with Materials (up +3.4%), Information Technology (+2.99%), Real Estate (+2.86%), Consumer Staples (+2.71%) and Industrials (+2.69%) all climbing over >2.5% to lead all eleven primary sectors higher. Tesla Inc rose +2.5% despite news that the electric vehicle (EV) maker has slashed prices in China for the second time in three months. Prices for the Model 3 sedan and Model Y SUV were cut by more than >10%, according to Tesla’s website, with the Model 3 falling to ¥229,900 (~US$33,415) from ¥265,900 (~US$38,647), and the Model Y dropping to ¥259,900 (~US$37,775) from ¥288,900 (~US$41,990). Tesla generated 24% of its total third-quarter revenue from China, and the company’s Shanghai factory produces more than half of the EVs sold worldwide. Costco Wholesale Corp jumped +7.26% following a strong December sales update after the close of the previous session. Southwest Airlines Co settled +4.62% higher despite the carrier warning Friday (6 January) that it expects to report a surprise net loss for the fourth quarter after cancelling thousands of flights over the holidays. It was the best day for the Dow and S&P 500 since 30 November and the best for the Nasdaq since 29 December. The Nasdaq jumped +2.56%. The small capitalisation Russell 2000 rallied +2.26%.
US equity markets’ pre-Christmas rally spluttered overnight following another round of upbeat economic data reinforced expectations the Federal Reserve and other central banks will continue monetary policy tightening into 2023 - Dow fell -349-points or -1.05%, paring an earlier decline of over >800-points. The broader S&P500 lost -1.45%, with Consumer Discretionary (down 2.59%), Information Technology (-2.54%) and Energy (-2.31%) all down over >2% and leading all eleven primary sectors lower. Tesla Inc dropped -8.88% after the company offered a US$7,500 discount on its Model 3 and Model Y vehicles delivered in the United States by year-end, as well as 10,000 miles of free supercharging for those vehicles. Separately, the National Highway Traffic Safety Administration has initiated two more special crash investigations into incidents that involved Tesla electric vehicles, and where the company’s advanced driver assistance systems are thought to have been a factor in the crash. Tesla is the biggest decliner during the December market sell-off, down -36% this month (and down more than >64% in 2022). The Nasdaq dropped -2.18%, with semiconductor companies under particular pressure following memory chip specialist Micron Technology Inc (down -3.44%) underwhelming fiscal first quarter result released after the close of the previous session. Advanced Micro Devices Inc fell -5.64%, Nvidia Corp -7.04% and Lam Research Corp -8.65%. The small capitalisation Russell 2000 lost -1.29%.
US equity markets rallied for a second session following upbeat earnings releases after the close of the previous session from FedEx Corp (up +3.43%) and Nike Inc (+12.18%), and strong consumer confidence data - Dow gained +527-points or +1.60%, The broader S&P500 rallied +1.49%, with Energy (up +1.89%) the leading sector performer for a second session running and lifting all eleven primary sectors (with eight logging gains of over >1%). Nike’s result boosted other athletic apparel and footwear makers, with Under Armour Inc up +5.21, Skechers USA Inc +4.16% and Lululemon Athletica Inc +3.13%. Tesla Inc slipped -0.17%, with Elektrek reporting that the electric vehicle maker is planning another round of layoffs for the first quarter and is instituting a hiring freeze. The Nasdaq climbed +1.54%. The small capitalisation Russell 2000 rose +1.62%.
US equity markets advanced, recovering from some initial weakness after the Bank of Japan (BoJ) surprised the market with a policy shift - Dow added +92-points or +0.28%, Boeing Co rose +1.41% after the 4,155 page omnibus spending package included an extension for the aircraft maker's 27 December deadline for 737 MAX 7 and 10 certification. The measure in the omnibus bill will require some safety improvements, but short of what current law would demand on all 737 MAX jets to be manufactured under certification rules by safety officials. Boeing has said it would be forced to scrap the MAX 7 and the MAX 10 if it had to meet a deadline of 27 December to get approval for new cockpit-alerting systems for pilots. The broader S&P500 edged +0.10% higher, with Energy (up +1.52%) comfortably the leading performer and lifting seven of the eleven primary sectors into positive territory. Consumer Discretionary (down -1.13%) was the wort performing primary sector overnight. Tesla Inc continued to slide, dropping a further -8.05% to US$137.80. Sources told CNBC that Chief Executive Officer (CEO) Elon Musk is searching for a new chief executive of Twitter. Mr Musk wrote on Sunday (18 December) that “The question is not finding a CEO, the question is finding a CEO who can keep Twitter alive.” The latest drop pushed Tesla’s market capitalisation below Exxon Mobil Corp (up +1.45%) and left it as ninth most valuable equity by market capitalisation in the S&P 500 index after previously ranking as high as No. 5 on that list. The Nasdaq eked out a +0.01% rise. The small capitalisation Russell 2000 rose +0.54%.
How the Fed and the European Central Bank may avoid a sovereign crisis.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
China’s COVID-19 policy ‘pivot’ has the potential to be a major driver of asset prices in 2023. We see a possible end to all COVID restrictions in 1H23 as economic challenges and ongoing social unease will likely accelerate change. While the reopening will be disruptive given the speed at which the central government has eased restrictions, we expect consumption to rebound sharply and boost GDP by Q2 2023. Importantly, as China pursued a very different policy response to COVID-19 from most of the West, it is not experiencing high inflation or rising interest rates. This gives Beijing a significant runway for stimulus. Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets settled in the red for a fourth consecutive session, extending a drop last week sparked by a new round of interest rate rises and hawkish comments from central bankers - Dow fell -163-points or -0.49%, with Walt Disney Co (down -4.79%) and Nike Inc (-2.79%) among the biggest drags. A $1 move in any of the Dow's 30 components results in a 6.59-point swing. The broader S&P500 shed -0.90%, with Communication Services (down -2.19%) and Consumer Discretionary (-1.66%) both declining over >1.5% to lead ten of the eleven primary sectors lower. Energy was the only primary sector to advance overnight, edging +0.13% higher. Tesla Inc fell -0.24% to US$149.87, settling below
Investment Watch Summer 2023 Outlook: https://www.morgans.com.au/research-and-markets/economics-and-strategy/Investment-Watch-Summer-2023-OutlookWe remind investors to remain vigilant against a series of macro-economic risks that are likely to make for a bumpy ride and as always, some asset classes will outperform others. That is why this extended version of Investment Watch includes our key themes and picks for 2023 and our best ideas. As always, speak to your adviser about asset classes and stocks that suit your investment goals.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
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The S&P500 and Nasdaq extended losses into a third consecutive session on Friday (16 December) amid a volatile ‘Quadruple Witching’ session that saw the simultaneous expiration of stock index futures, stock index options, stock options and single-stock futures worth ~US$4 trillion (including US$2.4 trillion tied to S&P 500 index futures) - Dow fell -282-points or -0.85%, paring an earlier session decline of ~548-points. Goldman Sachs Group Inc lost -0.99% following reports that the US investment bank is preparing to lay off as many as 3,900 employees starting in January as chief executive David Solomon seeks to boost profitability amid economic headwinds. The plans are still being drawn up, and it is possible that the current target for a cull of “up to 8 per cent” of its 49,000 global workforce will be slimmed down if the business outlook improves, according to three people familiar with the discussions. The broader S&P500 lost -1.11%, with Real Estate (down -2.96%), Consumer Discretionary (-1.74%) and Utilities (-1.66%) all down over >1.5% and leading all eleven primary sectors lower. Tesla Inc dropped -4.72% to cap the worst weekly performance (down -16.1%) for the electric vehicle maker’s shares since 2020 and fourth-worst week in history for the shares after a series of three weeks in late February and early March 2020, when investors sold stocks in fear of the COVID-19 pandemic’s effects. Tesla ended the week with a market capitalisation of less than
US equity markets tumbled as investors digested a wave of interest rate rises and hawkish commentary from global central banks - Dow fell -764-points or -2.25%, The broader S&P500 dropped -2.49%, with Communication Services (down -3.84%), Information Technology (-3.78%) and Materials (-3.02%) all down over >3% and leading all eleven primary sectors lower. Shoe Carnival Inc over >3.2% in after-hours trading after the shoe retailer said its board of directors approved a new US$50M share buyback program. The Nasdaq slumped -3.23%. Netflix Inc dropped -8.63% following a report in Digiday citing five agency executives that the streaming giant is falling short of ad-supported viewership guarantees made to advertisers and allowing advertisers to take their money back for ads that have yet to run. The small capitalisation Russell 2000 lost -2.52%.
US equity markets settled lower as investors digested the latest Federal Reserve interest rate decision and monetary policy pronouncements - Dow fell -142-points or -0.42%, The broader S&P500 lost -0.61%, with Financials (down -1.29%), Materials (-1.11%) and Real Estate (-1.01%) all declining over >1% to lead ten of the eleven primary sector lower. Health Care (up +0.14%) was the only primary sector to advance. The S&P 500 is on track for its biggest three-month gain since the second quarter of 2020, having risen by ~11.3% since the start of October. Delta Air Lines Inc rose +2.79% after the carrier raised its earnings guidance and highlighted robust demand for air travel as the industry recovers from the widespread disruption caused by the COVID-19 pandemic. The airline raised its 2022 adjusted earnings per share (EPS) guidance to US$3.07 to US$3.12 versus current consensus forecasts for US$2.88. For 2023, Delta forecast a near doubling of adjusted earnings to US$5 to US$6 per share, and revenue growth at 15% to 20% compared with 2022 and said it is on track to meet its 2024 earnings target of more than >US$7 a share. However, Tesla Inc (down -2.58%) continued to trade around two year lows. Chief executive Elon Musk tweeted that he “will make sure Tesla shareholders benefit from Twitter long-term”. The technology-centric Nasdaq fell -0.76%. The small capitalisation Russell 2000 lost -0.65%.
A US housing slump in the first half of 2023 should be followed in the second half by an oil and gas boom.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets tallied a second consecutive session of gains albeit settled well off their session highs as investors digested the latest monthly inflation report and eyed key central bank meetings later in the week - Dow added +104-points or +0.30%, paring an earlier rally of over >700-points. Chevron Corp (up +2.23%) was the leading Dow performer. Boeing Co added +0.46% after United Airlines Holdings Inc (down -6.94%) announced it had agreed to buy 100 787 Dreamliner planes, with the option to purchase 100 more, and also committing to buying 100 737 Max jets. Boeing said the order was the largest 787 Dreamliner order in the company’s history. The broader S&P500 rose +0.73%, having climbed as much as +2.77% earlier in the session. Real Estate (up +2.04%) lead ten of the eleven primary sectors higher, with Consumer Staples (down -0.17%) the only primary sector to settle in the red. Tesla Inc (down -4.09%) continued to slide, logging its sixth session decline in the past seven The Nasdaq gained +1.01%, settling well off session highs that the saw the technology-centric index up as much as +3.84% earlier in the session. The small capitalisation Russell 2000 advanced +0.97%.
US equity markets rallied, clawing back some of last week’s steep losses as investors eye key inflation figures tonight AEST and a brace of key central bank meetings later in the week - Dow gained +529-points or +1.58%. Boeing Co rose +3.75% amid reports that Air India is close to signing an order with the planemaker to acquire up to 150 737 Max jets. The broader S&P500 rose +1.43%, with Energy (up +2.49%), Utilities (+2.27%) and Information Technology (+2.17%) all advancing over >2% to lead all eleven primary sectors higher. Tesla Inc (down -6.27% at US$167.82) settled at its lowest level since 20 November, 2020 and a fresh 52-week low. Investors remain concerned about Tesla’s production, particularly in China, even though the company has denied earlier reports that suggested production cuts in the world’s biggest auto market. The Nasdaq climbed +1.26%. The small capitalisation Russell 2000 gained +1.22%.
US equity markets retreated on Friday (9 December) as investors assessed the latest wholesale-inflation and consumer-sentiment data ahead of the Federal Reserve’s monetary policy meeting next week - Dow fell -305-points or 0.90%. Walt Disney Co rose +0.9% after the company made its ad-supported streaming subscription available in the U.S. The broader S&P500 lost -0.73%, with Energy (down -2.33%) once again leading the downside and with ten of the eleven primary sectors closing lower. Communication Services (up +0.02%) was the only primary sector to advance. The Nasdaq fell -0.70%. Microsoft Corp fell -0.80% after the company announced in a Friday morning (9 December) blog post that it had acquired Lumenisity Limited, which makes hollow core fibre solutions, as its battle with the FTC over the Activision Blizzard Inc (up +0.54%) deal deepens. The small capitalisation Russell 2000 lost -1.19%.
US equity markets rebounded - Dow gained +184-points or +0.55%, The broader S&P500 added +0.75%, arresting a five session losing streak (which marked the longest losing streak since the six sessions of consecutive losses ended 12 October). Information Technology (up +1.59%) and Consumer Discretionary (+1.05%) rose over >1% to lead nine of the eleven sectors higher. Energy (down -0.46%) and Communication Services (-0.50%) were the only primary sectors not to advance. The Nasdaq rose +1.13%, with Nvidia Corp and Amazon.com Inc adding +6.51% and 2.14%, respectively. The small capitalisation Russell 2000 gained +0.63%.
Morgans Chief Economist Michael Knox explains why the Australian Economy can keep growing when other countries have recessions.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated as an easing of some of China’s COVID curbs failed to lift broader sentiment - Dow settled flat. The broader S&P500 slipped -0.19%, extending losses into a fifth consecutive session and marking the indices longest losing streak since the six sessions of consecutive losses ended 12 October. Communication Services (down -0.93%) and Information Technology (-0.51%) fell over >0.5% to lead eight of the eleven primary sectors lower. The more defensive Health Care (up +0.85%), Consumer Staples (+0.38%) and Real Estate (+0.26%) were the only primary sectors to advance. The technology-centric Nasdaq fell -0.51%. Apple Inc fell -1.38%,with mobile industry bellwether Murata Manufacturing Co expecting the company to reduce production plans further for the iPhone 14 in the coming months because of weak demand. Murata expects this year’s drop in smart phone sales to keep going well into 2023. The small capitalisation Russell 2000 lost -0.31%.
Morgans research analysts re-set their sector views, strategies and Best Ideas as markets adapt to ongoing challenges.Check out more from Morgans:Visit the Morgans website: www.morgans.com.auCheck out our blog: www.morgans.com.au/BlogOn Facebook: www.facebook.com/MorgansAUOn Instagram: www.instagram.com/Morgans.AustraliaOn Twitter: twitter.com/MorgansAU
US equity markets retreated amid fresh concerns around a recession - Dow fell -351-points or -1.03%, with Boeing Co (down -3.60%), Goldman Sachs Group Inc (-2.32%) and Walt Disney Co (-3.79%) among notable decliners. The broader S&P500 shed -1.44%, with Energy (down -2.65%), Communication Services (-2.57%) and Information Technology (-2.14%) all down over >2% and leading ten of the eleven primary sectors lower. The index booked a fourth straight session of declines and logged its seventh negative session in eight. Utilities (up +0.66%) was the only primary sector to advance. Tesla Inc fell -1.44% after Reuters reported that the electric vehicle manufacturer planned to cut output of its Model Y by more than >20% in its Shanghai plant this month. The company said the media reports were “untrue”. Bank of America Corp dropped -4.26% to US$2,456.92 and the lowest level since mid-October. Morgan Stanley fell -2.56%, with various reports the investment bank had cut ~20% of its staff on Tuesday (6 December). The moves, reported first by CNBC, impacted about 1,600 of the company’s 81,567 employees and touched nearly every corner of the global investment bank, according to people familiar with the situation. The technology-centric Nasdaq dropped -2.00%, recording its worst two-day performance (down -3.41%) since early November, according to Dow Jones Market Data. Meta Platforms Inc shed -6.79% after the Wall Street Journal reported that European Union (EU) privacy regulators may apply restrictions to the company’s targeted advertising strategy. The small capitalisation Russell 2000 lost -1.5%.
US equity markets fell following a hotter-than-expected services sector activity report - Dow fell -483-points or -1.40%. Salesforce Inc dropped -7.35%, touching its lowest level in more than 2-years intra-day (US$133.36) after the company confirmed a report in The Wall Street Journal that Slack co-founder and chief executive Stewart Butterfield was leaving the company and that Lidiane Jones, who is part of the Salesforce executive team, would take over for him. The broader S&P500 shed -1.79%, with Consumer Discretionary (down -2.95%), Energy (-2.94%) and Financials (-2.50%) all falling 2.5%+ to lead all elven primary sectors lower. The Nasdaq lost -1.93%. The small capitalisation Russell 2000 dropped -2.78%.
A mixed session to end the week for US equity markets as investors digested the latest monthly jobs report, although all three benchmark indices booked a second straight week of gains - Dow added +35-points or +0.10%, The broader S&P500 slipped -0.12%, with Energy (down -0.60%) and Information Technology (-0.55%) both falling over >0.5% to lead six of the eleven primary sectors lower. Materials (up +1.10%) was the leading primary sector performer on Friday (2 December). The Nasdaq lost -0.18%, paring an earlier decline of as much as -1.6% The small capitalisation Russell 2000 rose +0.59%.
US equity markets eased following the powerful rally recorded in the final hour pf the previous session, with investors eyeing tonight’s AEST key jobs data - Dow fell -195-points or -0.56%. Salesforce Inc fell -8.27% after the business software provider released its quarterly result after the closing bell of the previous session and announced that co-chief executive officer (CEO) Bret Taylor is stepping down. The broader S&P500 dipped -0.09%, with Financials (down -0.71%) leading eight of the eleven primary sectors lower. Communication Services (+0.29%), Health Care (+0.24%) and Information Technology (+0.07%) were the sectors to advance. Costco Wholesale Corp dropped -6.56% after the pace of November sales slowed to a 5.7% gain from the prior year. In October, sales climbed 7.7% from a year ago. The wholesale retailer also reported a -10.1% decline in e-commerce sales during the period. The Nasdaq edged +0.13% higher. The small capitalisation Russell 2000 eased -0.26%.
US equity markets rallied strongly in the final hour of the session following Federal Reserve Chair Jerome Powell’s speech at the Hutchins Centre on Fiscal and Monetary Policy at The Brookings Institution in which he confirmed that the central bank will slow the pace of its aggressive rate-hiking campaign - Dow rallied +737 points or +2.18%. The broader S&P500 climbed +3.09%, snapping a three session losing streak. Information Technology (up +5.03%) and Communication Services (+4.91%) both rallied ~5% to lead all eleven primary sectors higher. Energy (+0.54%) was the relative laggard. The Nasdaq jumped +4.41%. The small capitalisation Russell 2000 rose +2.72%. The U.S.-listed shares of China-based e-commerce giant Alibaba Group Holding Ltd capped a strong month, rallying +9.64% and posting its second-best monthly performance (+37.72%) since it went public in September 2019 and the best since the record monthly rally of +42.2% in October 2015.
The S&P500 and Nasdaq extended losses into a third straight session as investors look ahead to some key economic releases and Federal Reserve Chair Jerome Powell’s scheduled speech at the Hutchins Centre on Fiscal and Monetary Policy at The Brookings Institution tonight AEST - Dow eked out a +0.01% gain. The broader S&P500 slipped -0.16%, with Information Technology (down -0.98%) leading six of the eleven primary sectors lower. Real Estate (up +1.71%) and Energy (+1.28%) both climbed over >1%.The Nasdaq -0.59%. The small capitalisation Russell 2000 added +0.31%.
US equity markets posted their steepest single session losses since 9 November – the first session after the US midterm elections - as social unrest from China’s prolonged COVID restrictions and some hawkish commentary from Federal Reserve speakers weighed on sentiment - Dow fell -498-points or -1.45%. UnitedHealth Group Inc edged ~0.5% lower in the extended session (after a -1.0% decline in the regular session) after the health-care and insurance company issued guidance ahead of its investor day tonight AEST, with some elements falling short of analysts’ expectations. The broader S&P500 -1.54%, with Real Estate (down -2.80%), Energy (-2.74%, with Exxon Mobil down -3.00%, Chevron Corp -2.91%, and Occidental Petroleum Corp -2.92%), Materials (-2.20%) and Information Technology (-2.13%) all fell over >2% to lead all eleven primary sectors lower. The Nasdaq -1.58%. Turmoil at Apple Inc’s (down -2.63%) key manufacturing hub of Zhengzhou is likely to result in a production shortfall of close to 6M iPhone Pro units this year, according to a person familiar with assembly operations, according to a Bloomberg report citing a person familiar with assembly operations. The small capitalisation Russell 2000 dropped -2.05%.
US equity markets mixed following a muted, shortened Black Friday trading session - Dow gained +153-points or +0.45% to 34,347.03, the highest close for the 30-stock index since 21 April. The broader S&P500 dipped -0.03%, The Nasdaq fell -0.52%. Apple Inc fell -1.96% after Wedbush Securities said that iPhone shortages have gotten worse in the past week as protests continue at Foxconn, which builds the smart phones for Apple. Microsoft Corp dipped -0.04%, with Politico reporting the Federal Trade Commission is likely to sue to block the company’s US$69B acquisition of video game company Activision Blizzard Inc (down -4.07%) The small capitalisation Russell 2000 rose +0.30%.
European bourses extended their recent rally in thin volume trade, with the Chemicals sector (up +1.1%) leading all major sectors into positive territory and lifting the pan-European Stoxx 600 index (which includes UK equities) +0.46%. Germany's DAX gained +0.78%. France's CAC added +0.42%. Remy Cointreau dipped -0.06% despite reporting a stronger-than-expected +27.2% organic jump in first-half operating profit, driven by strong demand for its premium cognac in China and the US and cost controls. In broader stock moves, Credit Suisse Group AG (down -1.91%) confirmed the final terms of its 4B Swiss franc (~US$4.2B) capital raise, making 889M shares available to existing investors at 2.52 Swiss francs. Switzerland’s second largest bank also confirmed it has issued 462M new shares to qualified investors via a placement, with Saudi National Bank the largest investor (buying 307M new shares to afford it a 9.9% stake). In economic data, The German Ifo Business Climate index rose to 86.3 in November from a revised reading of 84.5 in October, better than economists’ forecast for a reading of 85.0. The index of the current situation fell to 93.1 in November from 94.2 in October, while the gauge assessing companies’ expectations rose to 80.0 from 75.9.
US equity markets climbed amid a choppy session, gaining ground after minutes of the Federal Reserve's early November policy meeting reinforced expectations that policy makers will shift to smaller rate increases at their December meeting - Dow rose +96-points or +0.28%, The broader S&P500 +0.59%, with Consumer Discretionary (up +1.33%), Communication Services (+1.21%) and Utilities (+1.04%) all rising over >1% to lead ten of the eleven primary sectors higher. Energy (down -1.16%) was the only primary sector to settle in the red. Tesla Inc rebounded +7.82%, buoyed an upgrade from Citi to ‘neutral’ from ‘sell’. The Nasdaq +0.99%. The small capitalisation Russell 2000 added +0.17%.
A high US dollar and the prospect of falling inflation are encouraging investment in Australian and Canadian bonds.
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US equity markets rallied as investors looked past a fresh tightening of COVID policies in China and the latest downgraded economic growth forecasts from the Organisation of Economic Development (OECD), and focussed on some upbeat quarterly results from a number of retailers - Dow rose +398-points or +1.18%, The broader S&P500 climbed +1.36% to 4,003.58, settling above 4,000 for the first time since September. Energy (up +3.18%) and Materials (+2.23) both rallied over >2% to lead all eleven primary sectors higher. The Nasdaq +1.36%. The small capitalisation Russell 2000 +1.16%.
US equity markets after a choppy session to open the holiday-shortened trading week - Dow fell -45-points or -0.13%, Walt Disney Co rose +6.30% after announcing that Chief Executive Officer (CEO) Bob Chapek is stepping down from the post and will be replaced by his predecessor, Robert Iger. Mr Iger served as Disney’s CEO from 2005-2020, and has served as executive chairman and chairman of the board since 2021. The broader S&P500 -0.39%, with Consumer Discretionary (down -1.41%), Energy (-1.39%) and Information Technology (-1.13%) all falling over >1% and leading four of the eleven primary sectors lower. More defensive sectors outperformed for a second straight session, with Consumer Staples up +0.98%, Real Estate +0.72% and Utilities +0.50%. Tesla Inc fell -6.84%, with the electric vehicle company’s shares touching their lowest level since July 2020. The Nasdaq -1.09%. The small capitalisation Russell 2000 lost -0.57%.
Headquartered in Brisbane, Universal Store is a leading Australian retailer specialising in trend-led and casual men’s and women’s fashion, shoes, accessories, lifestyle and gifting. The business was founded in Queensland in 1999 and listed on the ASX in 2020.
Alice spoke to Universal Store’s reach across Australia, operating from nearly 100 bricks and mortar locations and three online stores. Alice also touched on the company’s impressive care for its employees and customers, which fosters a culture of ‘boutique service.’ This, amongst many reasons, presents Universal Store as a strong company with a positive growth trajectory over the long term.
Morgans clients can view our company analysis on Universal Store here: https://bit.ly/3UHCBn7
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US equity markets ticked higher in the after afternoon session last Friday (November) to end the week on an upbeat note - Dow up +199-points or +0.59%. The broader S&P500 +0.48%, with the more defensive Utilities (up +2.00%), Real Estate (+1.29%), Health Care (+1.20%) and Consumer Staples (+1.04%) leading nine of the elven primary sectors higher. Energy (down -0.90%) and Communication Services (-0.35%) were the only primary sectors to settle in the red. The Nasdaq settled flat. The small capitalisation Russell 2000 rose +0.58%.
US equity markets logged their first back-to-back losses in two weeks following some hawkish commentary from Federal Reserve officials - Dow dipped -8-points, The broader S&P500 -0.31%, with Utilities (down -1.79%) and Consumer Discretionary (-1.27%) leading eight of the eleven primary sectors lower. Information Technology sat atop the primary sector leaderboard with a +0.21% rise. General Motors (up +0.17%) hosted its annual investor day and raised its full year guidance, noting it expects its electric vehicle (EV) portfolio in North American to be profitable in a couple of years as it ramps up EV capacity in the region to more than 1>M EVs per year. The automaker projected full year adjusted earnings before interest and tax (EBIT) will be in a range between US$13.5B and US$14.5B compared to a prior guidance of US$13B and US$15B. The Nasdaq -0.35%. Cisco Systems Inc gained +4.96% after the networking-technology company delivered better-than-expected numbers on the top and bottom line, accompanied by encouraging guidance after the close of the previous session. The small capitalisation Russell 2000 lost -0.76%.
US equity markets retreated after a choppy session, with investors parsing the latest earnings results from retailers - Dow slipped -39-points or -0.12%, The broader S&P500 fell -0.83%, with Energy (down -2.15%), Consumer Discretionary (-1.46%) and Information Technology (-1.45%) all fell over >1.5% to lead nine of the eleven primary sectors lower. The more defensive Utilities (up +0.87%) and Consumer Staples (+0.46%) were the only primary sectors to advance. The Nasdaq -1.52%. The small capitalisation Russell 2000 lost -0.49%.
Back in September, we said the ASX 200 would rally as we came into October and November. Now we can again say why.
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US equity markets advanced, climbing late in the session as investors pondered a cooler-than-expected wholesale inflation report and some upbeat earnings from major retailers - Dow added +56-points or +0.17%, The broader S&P500 rose +0.87%, with seven of the eleven primary sectors recording gains of over >1%. Only two primary sectors – Materials (down -0.11%) and Health Care (-0.07%) – settle in the red. The technology-centric Nasdaq rallied +1.45%. The small capitalisation Russell 2000 gained +1.50%.
US equity markets retreated, with losses accelerating in the final hour of trading - Dow fell -211-points or -0.63%, The broader S&P500 -0.89%, with Real Estate (down -2.65%), Consumer Discretionary (-1.71%) and Financials (-1.54%) leading ten of the eleven primary sectors lower. Health Care eked out a +0.03% gain to be the only primary sector to advance. The Nasdaq lost -1.13%. Amazon.com Inc (down -2.28%) is reportedly the latest big tech name poised to announce employee layoffs. The company is expected to announce it is cutting ~10K employees as soon as this week – which would be the largest in the company’s history – and primarily affect Amazon’s devices organization, retail division and human resources, according to The New York Times. The small capitalisation Russell 2000 lost -1.14%.
US equity markets extended their rally to cap a strong week that saw a cooler-than-expected October inflation print fuel speculation that the Federal Reserve may slow the pace of monetary policy tightening - Dow edged +32-points or +0.10% higher. Walgreens Boots Alliance Inc jumped +7.2% after Deutsche Bank upgraded the stock to ‘buy’ from ‘hold’. Walt Disney Co (up +5.03%) plans to institute a targeted hiring freeze as well as some job cuts, according to an internal memo sent to executives on Friday (11 November). The news comes after Chief Financial Officer Christine McCarthy said during Disney’s earnings call last Tuesday (8 November) that the company was looking for ways to trim costs. The broader S&P500 rose +0.92% to 3,992.93, with Energy (up +3.06%), Communication Services (+2.47%) and Consumer Discretionary (+2.46%) all rising over >2% to lead six of the eleven primary sector higher. The more defensive Health Care (down -1.28%) and Utilities (-1.15%) sectors were the key laggards. The Nasdaq gained +1.88%, with Amazon.com Inc gaining +4.31% and Google parent Alphabet Inc +2.72%. The small capitalisation Russell 2000 added +0.79%.
Research Analyst Max Vickerson updates us as Brookfield and EIG have launched an indicative, all-cash, takeover bid for Origin Energy (ASX:ORG) at $9ps which the board will recommend following a due diligence period.
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US equity markets soared, logging their single session gains since stocks were emerging from the depths of the pandemic bear market 2020 following a cooler-than-expected October inflation report - Dow soared +1,201.43-points or +3.70%, with Salesforce Inc (up +10.02%) and Apple Inc (+8.90%) combining for an ~171-point bump for the bluechip index. The broader S&P500 +5.54%, recording its biggest one-day rally since April 2020. Information Technology (up +8.33%), Real Estate (+7.74%) and Consumer Discretionary (+7.70%) all climbed over >7% to lead all eleven primary sectors solidly higher. The Nasdaq +7.35%. 54 S&P 500 index constituents settled with gains of 10%+. The small capitalisation Russell 2000 jumped +6.11%.
US equity markets retreated ahead of the key inflation figures for October tonight AEST, and as the midterm elections provided no clear answers and with control of Congress still hanging in the balance - Dow fell -647-points or -1.95%, Walt Disney Co slumped -13.15% after the entertainment giant posted lower-than-expected earnings per share (US$0.30c versus consensus US$0.55c) and revenue (US$20.15B versus consensus US$21.24B) for the fiscal fourth quarter after the closing bell of the previous session. The broader S&P500 dropped -2.08%, with Energy (down -4.88%), Consumer Discretionary (-3.12%) and Information Technology (-2.65%) leading all eleven primary sectors lower. Tesla Inc fell -7.17% following news that Chief Executive Elon Musk sold ~US$3.95B worth of shares a week after closing his ~US44B acquisition of Twitter Inc. The Nasdaq shed -2.46%. Meta Platforms Inc rose +5.22% after the technology giant confirmed it was planning to lay off over >11,000 employees, or ~13% of the company’s workforce. Chief Executive Mark Zuckerberg observed that “Not only has online commerce returned to prior trends, but the macroeconomic downturn, increased competition, and ads signal loss have caused our revenue to be much lower than I’d expected,” adding “I got this wrong, and I take responsibility for that.” In addition to the layoffs, Meta confirmed its forecast for fourth-quarter revenue of US$30B to US $32.5B. Meta said the outlook for 2022 expenses it provided on the call to discuss its latest earnings already contemplated the newly announced cuts, and remains unchanged at US$85B to US$87B. However, the company also said it now sees 2023 expenses of US$94B to US$100B, which compares with a previous forecast of $96 billion to $101 billion, reflecting reduced hiring plans for next year. The small capitalisation Russell 2000 lost -2.34%.
Morgans Chief Economist Michael Knox thinks the FED funds rate will peak at 5.35% in March 2023. Meanwhile, the RBA continues to slowly follow the FED.
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US equity markets climbed on as Americans headed to the polling booths for the midterm elections, shrugging off a mid-afternoon dip - Dow rallied +334-points or +1.02%, The broader S&P500 rose +0.56%, with Materials (up +1.68%) leading ten of the eleven primary sectors higher. Consumer Discretionary (down -0.30%) was the only primary sector to settle in the red. The Nasdaq settled +0.49% higher. The small capitalisation Russell 2000 added +0.19%.
US equity markets advanced as US voters head to the polling booths tonight AEST for the midterm elections, and with investors eyeing inflation data later in the week - Dow +423-points or +1.31%. Walgreens Boots Alliance Inc gained +4.10% following reports that No. 2 U.S. pharmacy chain would invest ~US$3.5B to support the primary care provider VillageMD’s acquisition of urgent care provider Summit Health in a deal valued at nearly US$9B. Boeing Co (up +3.06%) was another notable Dow performer. The broader S&P500 +0.96%. The Nasdaq rose +0.85%. Apple Inc added +0.39% despite the tech company said iPhone production has been temporarily reduced because of COVID-19 restrictions in China. Meta Platforms Inc gained +6.53% a day after the Wall Street Journal report that said the company could start layoffs as soon as Wednesday (9 November). The small capitalisation Russell 2000 rose 0.64%. Carvana Co (down -15.64%) continued to tumble, with trading in the stock briefly halted after the on-line used car retailer reported disappointing third-quarter results after the closing bell of last Thursday’s (3 November) session.
Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.
New additions this month: Commonwealth Bank (ASX:CBA) and Westpac (ASX:WBC).
View the full Morgans Best Ideas list: https://morgans.com.au/Blog/2022/November/Best-Ideas-November-2022
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US equity markets closed out a tough week on a positive note as investors parsed the latest monthly jobs report - Dow gained +402-points or +1.26%, The broader S&P500 climbed +1.36%, PayPal Holdings Inc fell -1.79% after the company trimmed their revenue full year guidance results after the closing bell of last Thursday’s (3 November) session, with Chief Executive Dan Schulman noting that PayPal was “seeing a pullback in discretionary goods that are being spent on by consumers.” The Nasdaq rose +1.28%. Meta Platforms Inc (up +2.11%) is planning to begin large-scale layoffs this week according to a report in The Wall Street Journal. The small capitalisation Russell 2000 +1.13%. BioNTech SE rose +6.24% after China approved the biotechnology company's mRNA COVID-19 vaccine for use among the expatriate population in the People's Republic of China. During German Chancellor Olaf Scholz's visit to Beijing, he and Chinese leader, Xi Jinping, also broached the subject of a pathway for approval of the vaccine for use among the wider Chinese population, The Wall Street Journal reported. Separately, BioNTech and partner Pfizer Inc (up +1.40%) said new data from a Phase 2/3 trial showed that the booster for companies' omicron BA.4/BA.5-adapted bivalent COVID-19 vaccine demonstrated a "robust neutralizing immune response" after one month. The companies said immune responses for those getting the booster were "substantially higher" than for those who only received the original COVID-19 vaccine, with similar safety and tolerability profiles. Carvana Co tumbled -38.95% to post its worst single session performance on record after the on-line used car retailer reported disappointing third-quarter results after the closing bell of last Thursday’s (3 November) session that prompted Morgan Stanley to pull their rating and price target on the company, citing deterioration in the used car market and a volatile funding environment. Friday also saw the expiration of weekly and daily options tied to single stocks, stock indexes and exchange-traded funds (ETFs).
The S&P500 and Nasdaq extended declines into a fourth day following a choppy session ahead of tonight’s AEST October jobs figures, with Treasury yields continuing to march higher - Dow down -147-points or -0.46%, The broader S&P500 lost -1.06%, with Information Technology (-3.00%) and Communication Services (-2.83%) again among the worst performing primary sectors. Energy sat atop the primary sector leaderboard with a +2.04% gain. The Nasdaq shed -1.73%. Qualcomm Inc dropped -7.66% after the chip maker released its third quarter result after the closing bell of the previous session and cut its full year earnings per share (EPS) outlook citing weakening handset sales. The small capitalisation Russell 2000 lost -0.53%.
US equity markets fell sharply late in the session, relinquishing earlier gains as investors digested the latest Federal Reserve monetary policy decision and a more-hawkish-than-expected tone from central bank Chair Jerome Powell - Dow fell -505-points or -1.44%, Boeing Co gained +2.90% after the planemaker’s Chief Executive Officer (CEO) said the company could generate US$10B in cash annually by mid-decade and expects to return cash to shareholders and will not need equity to get there after 2026. The broader S&P500 shed -2.50%, with Consumer Discretionary (-3.79%), Information Technology (-3.47%), and Communication Services (-3.04%) all declining over >3% to lead all eleven primary sectors lower. The Nasdaq tumbled -3.36%, with Amazon.com Inc (down -4.82%), Netflix Inc (-4.80%) and Meta Platforms Inc (-4.89%) all down almost 5%. The small capitalisation Russell 2000 dropped -3.36%.
US equity markets logged back-to-back losses ahead of the Federal Reserve’s latest interest rate decision and monetary policy pronouncements tomorrow morning AEST (3 November) - Dow eased -80-points or -0.24%, The broader S&P500 -0.41%, with Communication Services (down -1.81%) and Consumer Discretionary (-1.35%) both down over >1% to lead six of the eleven primary sectors lower. Energy sat atop the primary sector leaderboard with a +0.99% gain. The Nasdaq -0.89%. The small capitalisation Russell 2000 added +0.25%.
Young Werther and Gold Trip are our best-value bets. Remember our recommendation is for the best value bet rather than the highest probability of winning. Gamble responsibly.
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US equity markets retreated on the final trading day of the month, however the Dow Jones Industrial Average still recorded its largest monthly percentage gain since January 1976 - Dow eased -129-points or -0.39%, The broader S&P500 -0.75%, with Communication Services (down -1.68%) and Information Technology (-1.34%) both losing over >1% to lead ten of the eleven primary sectors higher. Energy (up +0.60%) was the only primary sector to advance overnight. The Nasdaq fell -1.02%, with Big Tech under fresh pressure. Meta Platforms Inc fell -6.09% to hit a fresh 52-week low, Alphabet Inc -1.85% and Microsoft Corp -1.59%. The small capitalisation Russell 2000 lost -0.49%.
Morgans' Senior Analyst Nathan Lead gives his insight into the November reporting season for the Banks sector in Australia. The coverage is; Australia and New Zealand Banking Group (ASX:ANZ), Commonwealth Bank of Australia (ASX:CBA), National Australia Bank (ASX:NAB) and Westpac Banking Corp (ASX:WBC).
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Senior Analyst Belinda Moore gives her key themes and analysis heading into the November reporting season for the Agriculture sector. Companies covered are; Orica (ASX:ORI), Elders (ASX:ELD), Incitec Pivot (ASX:IPL), United Malt (ASX:UMG) and Nufarm (ASX:NUF).
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Morgans' Senior Analyst Nick Harris talks about why Telstra has recently been added as a key stock pick by Morgans.
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US equity markets rallied on Friday (28 October), extending their weekly gain despite a tough week on the earnings front for major technology names, with investors also digesting the latest inflation figures and eyeing the Federal Reserve’s monetary policy meeting later in the week - Dow gained +829-points or +2.59%, The broader S&P500 rallied +2.46%, with Information Technology (up +4.52%), Communication Services (+2.98%) and Utilities (+2.85%) leading ten of the eleven primary sectors higher. Consumer Discretionary (down -0.30%) was the only primary sector not to advance on Friday (28 October). The technology-centric Nasdaq rebounded +2.85%. Apple Inc (up +7.56%) logged its biggest one-day gain in more than two years after posting better-than-expected. However, Amazon.com Inc tumbled -6.80% after warning after the closing bell last Thursday (27 October) that consumer spending was in “uncharted waters”. The company said it expected revenues to come in between US$140B-US$148B in the fourth quarter - as much as US$15B less than the figure forecast by analysts. The small capitalisation Russell 2000 +2.25%.
The Nasdaq Composite and S&P 500 snapped three session winning streaks as investors assessed disappointing earnings from major technology names - Dow eked out a +2-points or +0.01% gain, paring an earlier rally of as much as +300-points. The broader S&P500 eased -0.74%, with Communication Services (down -4.75%) and Information Technology (-2.23%) leading five of the eleven primary sectors lower. Energy (up +1.36%) and Health Care (+1.12%) both rose over >2% to be the leading primary sectors overnight. Tesla Inc rose +1.00% despite a Reuters report suggesting that the electric vehicle manufacturer is facing a criminal investigation conducted by the Department of Justice into claims the company made around the self-driving capabilities of its vehicles. While federal and California safety regulators have looked into Tesla's Autopilot comments, Reuters noted that the "potentially represents a more serious level of scrutiny because of the possibility of criminal charges against the company or individual executives." However, the story also notes that any case could be complicated by the fact that Tesla has also offered some warnings about Autopilot system. The Nasdaq dropped -2.04%. Google-parent Alphabet Inc dropped -.5% after reporting lower-than-expected earnings per share (EPS) and revenue for the third quarter after the close of the previous session. Microsoft Corp shed -% after the software maker disclosed lower-than-expected cloud revenue for the fiscal first quarter and softer-than-expected guidance after the closing bell of Tuesday’s (25 October) session. The small capitalisation Russell 2000 added +0.46%.
The treasurer's main problem is distributing the benefits of the commodities boom.
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US equity markets extended their rally into a third session as Treasury yields retreated and as investors eyed another very busy US corporate earnings calendar - Dow climbed +337-points or +1.07%. The broader S&P500 +1.63%, with Real Estate (up +3.94%) and Materials (+2.53%) leading ten of the eleven primary sectors higher. Energy (down -0.04%) was the only primary not to settle in positive territory. The Nasdaq rallied +2.25%. The small capitalisation Russell 2000 jumped +2.73%.
US equity markets rallied, consolidating last Friday’s (21 October) strong gains as investors eye a busy two weeks ahead on the US corporate earnings calendar - Dow gained +407-points or +1.34%, The broader S&P500 rose +1.19%, with Health Care (up +1.91%) and Consumer Staples (+1.79%) advancing over >1.5% to lead nine of the eleven primary sectors higher. Materials (down -0.62%) and Real Estate (-0.09%) were the only primary sectors to settle in the red. The Nasdaq climbed +0.84%. The small capitalisation Russell 2000 added +0.35%.
US equity markets closed sharply higher on Friday (21 October) as investors weighed a story from the Wall Street Journal and comments from Federal Reserve officials suggesting that the central bank might shift to smaller interest-rate rises after its 1-2 November monetary policy meeting - Dow rallied -749-points or +2.47%, with Goldman Sachs Group Inc (up +4.6%) and JPMorgan Chase & Co (+5.3%) notable performers. The broader S&P500 +2.37%, with Materials (up +3.46%) leading all eleven primary sectors higher, of which six logged gains of over >2.5%. Exxon Mobil Corp (up +1.30% at US$107.66) touched fresh all-time highs (US$108.04). The Nasdaq +2.31%. Twitter Inc fell -4.86% following a report that the U.S. could subject Elon Musk’s pending acquisition of the micro-blogging site to a national security review. Snap Inc tumbled -28.1% after the developer of camera and messaging app Snapchat revealed after the closing bell of last Thursday’s session (20 October) that revenue growth had slowed and losses had ballooned in the third quarter. The small capitalisation Russell 2000 +2.22%.
US equity markets retreated after another choppy trading session as Treasury yields climbed to their highest levels in more than 14 years - Dow fell -90.22-points or -0.30%, unwinding an earlier rally of almost +400-points. International Business Machines (IBM) Corp rose +4.73% after reporting a stronger-than-expected third quarter result after the close of the previous session. Walmart Inc U.S. Chief Executive Officer (CEO) John Furner said in an interview on NBC’s “Today” show that the retail giant “certainly are watching the market very closely, but what we see from customers is that spending is still strong. There’s a lot of demand in the United States and we think that’s going to continue.” Mr Furner declined to predict whether we’d see a recession but said that Walmart was working to “take unnecessary costs out of any part of our business” so that the company “can reflect better retail values for customers.” Walmart is slated to release their quarterly result on 15 November. The broader S&P500 lost -0.80%, with Utilities (down -2.51%) leading eight of the eleven primary sectors lower. Communication Services (up +0.36%), Energy (+0.18%) and Information Technology (+0.07%) all settled with modest gains. Tesla Inc dropped -6.65% after the electric vehicle maker recorded better-than-expected adjusted EPS (US$1.05 versus consensus US$1.00), but revenue (US$21.45B) fell short of forecasts (US$21.98B) despite delivering a record number of cars in the third quarter. The Washington Post reported that CEO Elon Musk intends to slash 75% of Twitter Inc's (up +1.18%) 7,500 workers in the coming months, chopping the company's head count to just over 2,000. Elsewhere, The Oregonian reported that Intel Corp (up +0.31%) is planning on announcing “targeted” layoffs in November. The Nasdaq fell -0.61%. The small capitalisation Russell 2000 lost -1.24%.
US equity markets settled with modest losses after a choppy session, struggling to extend the recent rebound as Treasury yields resumed their march higher - Dow fell -100-points or -0.33%, The broader S&P500 lost -0.67%, with Real Estate (down -2.56%) leading ten of the eleven primary sectors lower. Energy (up +2.94%) was the only primary sector to advance. The Nasdaq fell -0.83%. Netflix Inc jumped +13.09% after the streaming giant posted a stronger-than-expected result at the top and bottom lines after the close of the previous session. The small capitalisation Russell 2000 lost -1.72%.
Strong growth in energy demand in the Indo Pacific not just Europe is driving up the LNG price.
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Some further encouraging corporate earnings releases lifted US equity markets for a second session - Dow gained +338-points or +1.12%, Salesforce Inc jumped 4.31% after CNBC reported that activist investor Starboard Value LP had taken a “significant” stake in the software company and reportedly urged management to lift margins. The broader S&P500 +1.14%, with Industrials (up +2.36%), Materials (+1.91%), Utilities (+1.79%) and Financials (+1.64%) all up over >1.5% to lead all eleven primary sectors higher. The Nasdaq rallied +1.48%. Apple Inc rose +0.94% despite a report from tech news site The Information saying that the company has cut production of the iPhone 14 Plus, one of four new models the company introduced in early September. The article said that at least one component supplier in China has been told to immediately halt production of parts for the Plus. Microsoft Corp added +0.41% amid reports from both Axios and Business Insider that the technology giant is laying off nearly 1,000 workers across multiple divisions. Microsoft is scheduled to release quarterly earnings on 25 October. The small capitalisation Russell 2000 gained +1.16%.
US equity markets rallied as investors digested the latest corporate earnings releases and news of the latest walk back on the tax proposals - Dow gained -551-points or +1.86%, Goldman Sachs Group Inc rose +2.24% following a Wall Street Journal report that the investment bank plans to fold its biggest businesses into three divisions, combining its flagship investment-banking and trading businesses into one unit, while merging asset and wealth management into another, according to people familiar with the matter. A third division will reportedly house transaction banking, the bank’s portfolio of financial-technology platforms, specialty lender GreenSky, and its ventures with Apple Inc and General Motors Co. The broader S&P500 +2.65%, with Consumer Discretionary (up 4.23%), Real Estate (+3.89%), Communication Services (+3.34%) and Information Technology (+3.09%) all climbing over >3% to lead all eleven primary sectors higher. The Nasdaq soared +3.43%. The small capitalisation Russell 2000 +3.17%.
US equity markets erased early gains to steel sharply lower on Friday (14 October), failing to build on the previous session’s strong rally after the latest University of Michigan monthly survey of US consumers recording a worsening of inflation expectations - Dow fell -404-points or -1.34%, The broader S&P500 lost -2.37%, notched its seventh negative close in eight days. Consumer Discretionary (down -3.88%), Energy (-3.71%) and Information Technology (-3.41%) all falling over >3% to lead all eleven primary sectors lower. The Nasdaq dropped -3.08% to end at 10,321.39, its lowest settlement since 2 July, 2020. Tesla Inc declined 7.55% and Lucid Motors -8.61%. The small capitalisation Russell 2000 lost -2.66%.
We think the increase in government bond yields and the threat of slowing global economic growth will keep risk assets such as equities under pressure. However, we think Australian equities will fare better than global peers.
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US equity markets staged a huge intrasession rebound to settle sharply higher despite another hit inflation report - Dow soared +828-points or +2.83% to 30,038.72, logging the largest one day percentage gain since 9 November, 2020 after recovering from an earlier decline of as much as -550-points. It marked the first time on record that the Dow has risen at least 800 points in the same trading day that it was down at least 500 points at its low, according to Dow Jones Market Data. Goldman Sachs and JPMorgan rose +3.98% and +5.56%, respectively. The broader S&P500 +2.60%, with Financials (up +4.14%) and Energy (+4.08%) both rising over >4% to lead all eleven primary sectors higher. The index recorded its widest trading range since March 2020 and fifth largest intra-day reversal in its history. The Nasdaq +2.23%. Netflix Inc gained +5.27% after the streaming company said it will charge US$6.99 for its ad-supported subscriptions. Taiwan Semiconductor Manufacturing Co injected some much needed optimism into the chip sector after the company not only reported that net income nearly doubled from a year ago, as revenue surged nearly 50%, but also forecast a “flattish” outlook that still exceeded the Street consensus at the time. The news lifted the PHLX Semiconductor Index SPX +2.60%, with Advanced Micro Devices Inc up +1.88%, Intel Corp +4.30%, and Nvidia Corp +4.00%. The small capitalisation Russell 2000 rallied +2.41%.
US equity markets - Dow eased -28-points or -0.10%, The broader S&P500 lost -0.33%. Utilities (down -3.42%) and Real Estate (-3.42%) led eight of the eleven primary sectors lower. Energy returned to the top of the primary sector leaderboard with a +0.75% gain. Intel Corp rose +1.13%, with Bloomberg reporting that the company may fire thousands of workers by the end of the month, around the same time the chip manufacturer reports its third quarter result (27 October) amid a tough year for semiconductor makers. Intel has around 121,100 employees worldwide. While the report did not include geographical specificity concerning the targeted jobs, it said the sales and marketing departments could see up to 20% reductions in staff. The Nasdaq dipped -0.09%. The small capitalisation Russell 2000 slipped -0.3%.
Rapid growth in the Indo Pacific is generating strong demand for Australian energy exports.
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The S&P500 and Nasdaq extended declines into a fifth consecutive session following choppy trading, pulled lower in part by the announcement from the Bank of England (BoE) that it would end its emergency intervention in the UK bond market by Friday (14 October) - Dow added +36-points or +0.12%, paring an earlier session rally of as much as +400-points. Amgen Inc paced gains for the Dow with a +5.72% gain, with the biotechnology company buoyed by an upgrade to an “overweight” recommendation (US$279 target price) by analysts at Morgan Stanley. Walgreens Boots Alliance Inc rose +2.42% after the company said it has accelerated its plans to buy full ownership of CareCentrix, acquiring the remaining 45% stake for US$392M. The broader S&P500 fell -0.65% to 3,588.84, settling within 0.1% of its 30 September 2022 closing low of 3,585.62. Communication Services (down -1.64%) and Information Technology (-1.52%) both fell over >1.5% to lead seven of the eleven primary sectors lower. Real Estate (up +1.02%) and Consumer Staples (+0.93%) were the leading primary sector performers overnight. The Nasdaq dropped -1.10% to 10,426.19, logging its lowest close since 28 July, 2020. Meta Platforms Inc (down -3.92%) and Netflix Inc (-6.82%) were both under notable pressure, with both stocks having dropped more than >60% year to date. Chipmakers also saw fresh selling, with the PHLX Semiconductor Index dropping -2.5%. Advanced Micro Devices Inc lost -0.31%, and Nvidia Corp -0.72% The small capitalisation Russell 2000 inched +0.06% higher.
US equity markets logged fresh falls, with the Nasdaq falling to its lowest level in two years as investors eye the latest inflation figures and corporate earnings releases later in the week - Dow fell -94-points or -0.32%, The broader S&P500 lost -0.75%, Energy (down -2.06%) and Information Technology (-1.56%) led seven of the eleven primary sectors lower. The technology centric Nasdaq retreated for a fourth consecutive session, down -1.04% at 10,542.10 and logging its lowest close since 28 July, 2020. Chipmakers were under fresh pressure following the Biden administration announcement of new export controls that limit U.S. companies selling advanced computing semiconductors and related manufacturing equipment to China. Advanced Micro Devices Inc fell -1.08% and Nvidia Corp -3.36%. PayPal Inc fell -6.27% after backtracking on a change to their acceptable use policy that would have fined users US$2,500 for spreading “misinformation”. The proposal prompted a backlash from account holders, politicians and corporate executives alike (including PayPal’s previous president, David Marcus, and Tesla Inc’s (-0.05%) Elon Musk).The small capitalisation Russell 2000 lost -0.60%.
US equity markets booked steep losses on Friday (7 October), with the decline accelerating in the final hour of the session as investors digested the latest jobs report, which is anticipated to reinforce the Federal Reserve’s resolve to keep tightening monetary policy - Dow fell -630-points or -2.11% to 29,296.79, touching an intra- session low of 29,142.66. The broader S&P500 shed -2.80%, with ~94% of index constituents settling in the red. Information Technology (down -4.14%) led all eleven primary sectors lower, with Consumer Discretionary (-3.54%), Communication Services (-2.84%) and Materials (-2.54%) all falling over >2.5%. Energy (down -0.72%) was yet again the best performing sector on a relative basis.
US equity markets retreated ahead of tonight’s AEST key jobs figures and as Treasury yields continued to climb - Dow fell -347-points or -1.15%, The broader S&P500 -1.02%, with Utilities (down -3.30%) and Real Estate (-3.20%) both dropping over >3% to lead ten of the eleven primary sectors lower. However, the Energy sector extended its relative outperformance into a fourth straight session, up +1.82%. The Nasdaq -0.68%. The small capitalisation Russell 2000 lost -0.58%.
US equity markets settled with modest losses despite a big reversal in the final hour of the trading session as Treasury yields resumed their march higher - Dow slipped -42-points or -0.14%, reversing an earlier decline of as much as -430-points. The broader S&P500 eased -0.20%, with Utilities (down -2.25%) and Real Estate (-1.90%) leading eight of the eleven primary sectors lower. Energy (up +2.06%) sat atop the primary sector leaderboard for a third straight session, with Exxon Mobil Corp rallying +4.04%. The Information Technology and Health Care sectors advanced +0.36% and +0.33% respectively. Cruise line stocks retreated after getting an initial boost from news that Norwegian Cruise Line Holdings Ltd (down -0.75%) will suspend all COVID-19 testing, masking and vaccination requirements from Tuesday next week (11 October). Carnival Corp fell -4.25%. The Nasdaq settled -0.25% lower. The small capitalisation Russell 2000 lost -0.74%.
US equity markets extended their strong start to the month and quarter - Dow rallied +825-points or +2.80%, with Boeing Co (up +5.92%) and Goldman Sachs Group Inc (+5.25%) alone contributing over >150-points in gains. The broader S&P500 jumped +3.06%, logging its best two-day gain (+5.65%) since April 2020. Energy (up +4.34%) led all eleven primary sectors higher for a second consecutive session, with Financials (+3.79%) and Consumer Discretionary (3.56%) both advancing over >3.5%. The rally comes after three straight quarters of declines for the S&P 500 - the longest quarterly losing streak since 2008. Exxon Mobil Corp estimates that changes in liquid prices will have a negative effect of between US$1.4B to US$1.8B in the third quarter compared with second-quarter results, according to a filing with the Securities and Exchange Commission (SEC). The oil and gas company also forecast a favourable effect of US$1.8B to US$2.2B on results for the recent quarter due to changes in gas prices, compared with the second quarter. Exxon Mobil is slated to release its third quarter result on 28 October. The technology-centric Nasdaq climbed +3.32%. Tesla Inc settled +2.90% higher, pulling back from an earlier session rally of as much as +6.2% following the release of a letter filed with the SEC in which the electric vehicle maker's chief executive, Elon Musk, proposed moving forward with his acquisition of Twitter Inc (up +22.24%) on the original terms (including the US$54.20 per share bid price). Amazon.com Inc (up +4.50%) is implementing a hiring freeze on the corporate side of its retail business for the rest of the year, according to a New York Times report, becoming the latest company to pause hiring plans amid growing concerns about an economic downturn. Meta Platforms Inc (up +1.20%), which owns Facebook and Instagram, is reportedly planning to reduce its own headcount amid fears over what the economy might look like in the coming months. The small capitalisation Russell 2000 outperformed with a +3.91% gain. Some traders suggested some of last week’s selling pressure may have been driven by quarter-end rebalancing, which has now abated.
US equity markets opened the new month and quarter firmly on the front foot, with the benchmark indices rallying over >2% - Dow rallied +765-points or +2.66%, rising as much as +922 points at its session peak and recording its the biggest percentage gain since 24 June, according to Dow Jones Market Data. The broader S&P500 gained +2.59%, with Energy climbing +5.77% to lead all eleven primary sectors higher. Chevron Corp rose +5.61%, Exxon Mobil Corp +5.28%, Marathon Petroleum Corp +3.48%.
US equity markets retreated to cap their worst September performance since 2008 and logging their third straight quarterly decline as assertive Federal Reserve action pushed Treasury yields and the dollar higher- Dow dropped -500-points or -1.71% to 28,725.51, settling below <29,000 for the first time since November 2020. Nike Inc dropped -12.81% following the release of the athletic apparel giant’s fiscal first quarter result that raised concerns about margins (amid pressure from higher freight costs, merchandise markdowns and the effects of a tougher foreign-exchange backdrop) and inventory.
US equity markets resumed their slide, dragging the S&P500 to a fresh 2022 low amid a broad-based decline - Dow fell -458-points or -1.54%, having been down as much as -686-points at its session lows. The broader S&P500 dropped -2.11% to 3,640.47, logging its lowest close since 30 November, 2020. Utilities (down -4.07%) led all eleven primary sectors lower. Energy outperformed albeit the sector settled with a -0.13% decline. Occidental Petroleum Corp rose +1.14% after a Securities and Exchange Commission (SEC) filing showed that Warren Buffett's Berkshire Hathaway Inc (down -0.98%) bought another 6M shares, paying as much as US$61.37 per share and lifting their stake in the energy company to 20.9%. The Nasdaq shed -2.81%. Apple Inc – also a Dow component – fell -4.91% to US$142.48 - after Bank of America downgraded the stock to ‘neutral’ from ‘buy’ (cutting their price target to US$160 per share from US$185), noting that demand trends could worsen heading into the new fiscal year. Meta Platforms Inc fell -3.67% following a Bloomberg report that Chief Executive Officer (CEO) Mark Zuckerberg told staff that the social media and metaverse company is freezing hiring and will take steps to restructure the business. The report follows comments from Mr Zuckerberg on the company’s June quarter earnings call in which he said it was Meta’s plan “to steadily reduce headcount growth over the next year. Many teams are going to shrink so we can shift energy to other areas, and I wanted to give our leaders the ability to decide within their teams where to double down, where to backfill attrition, and where to restructure teams while minimizing thrash to the long term initiatives.” The small capitalisation Russell 2000 dropped -2.35%.
The Dow and S&P500 snapped a six session losing streak, advancing for the first time since the Federal Reserve hiked interest rates again a week ago as Treasury yields retreated sharply and following a surprise intervention from the Bank of England (BoE) in the U.K. government bond market - Dow climbed +549-points or +1.88% to 29,683.74 a day after logging its lowest close since 12 November, 2020. The index settled 19.3% below its 4 January record close of 36,799.65. Apple Inc was the only Dow constituent not to advance, falling -1.27% after Bloomberg News reported that the company is dropping plans to boost production of its latest iPhones this year as a surge in demand failed to materialize. Citing sources familiar with the matter, Bloomberg said suppliers have been told to pull back from efforts to ramp up assembly of about 6M iPhone 14 units, settling on a goal of producing ~90M iPhone 14s by the end of the year, about the same as iPhone 13 production last year, and in line with an outlook that Bloomberg reported in August. Bloomberg added that sources said demand for the higher-priced iPhone Pro model was stronger than for the lower-priced models. Bloomberg had earlier reported that iPhone 14 sales were off to a sluggish start in China, down ~11% than comparable sales of the iPhone 13 last year. Home Depot Inc (up +5.02%) was the leading Dow performer, while Boeing Co (up +4.65%) and Caterpillar Inc (+3.28%) also traded strongly. The broader S&P500 gained +1.97%, snapping its longest losing streak since February 2020 and rebounding from its lowest settlement since 30 November, 2020. Energy (up +4.40%) at atop the primary sector leaderboard for a second straight session and led all eleven primary sectors higher. Chevron Corp rose +3.38% and Exxon Mobil Corp +3.64% and Occidental Petroleum Corp +4.92%. The technology-centric Nasdaq rallied +2.02%. The small capitalisation Russell 2000 jumped +3.17%.
The Dow and S&P500 extended declines into a sixth consecutive session overnight - Dow fell -126-points or -0.43% to 29,134.99, a day after entering official bear market territory for the first time in more than two years (down over >20% from its record close on 4 January). The index briefly slid below <29,000 for the first time since 12 November, 2020 earlier in the session before recovering some ground, still logging its lowest close since that same date. The broader S&P500 eased -0.21% to 3,647.29, logging its lowest close since 30 November, 2020 and cementing its longest losing streak since February 2020. Consumer Discretionary (down -1.76%) and Utilities (-1.70%) both fell over >1.5% to lead seven of the eleven primary sectors. Energy sat atop of the primary sector leaderboard with a +1.16% gain. The Nasdaq added +0.25% and remains the only one of the three main indices that hasn’t fallen below its June lows (albeit all three benchmark indices are in official bear market territory). The small capitalisation Russell 2000 gained +0.40%.
US equity markets retreated, pushing the Dow into official bear market territory for the first time in more than two years amid further volatility in bond and currency markets
US equity markets continued to slide on Friday (23 September), capping a tumultuous week dominated by hawkish central bank updates that exerted particular pressure on growth stocks - Dow fell -486-points or -1.62% to 29,590.41, carving out a fresh 2022 closing low despite paring an earlier decline of as much as -826-points, and settling at its lowest level since 20 November, 2020. It also marked the first close below <30,000 since 17 June. The Dow also flirted with bear market territory, settling -19.9% below its most recent record intra-day high. Boeing Co fell -5.37% after the aerospace company reached a US$200M settlement on charges of misleading investors following two of its jetliners being involved in deadly crashes. The broader S&P500 dropped -1.72% to 3,693.23, settling just 0.7% above its 2022 closing low of 3666.77 set on 16 June. Energy (down -6.75%) led all eleven primary sectors lower on Friday (23 September), while Consumer Discretionary (-2.29%) and Materials (-2.05%) both fell over >2%. Ford Motor Co fell -3.60% after The Wall Street Journal reported the company had delayed delivery of some vehicles because it didn’t have enough blue oval badges to put on them. This followed the automaker’s warning last Monday (19 September) that it would end the third quarter with more unfinished vehicles than it had previously expected. The Nasdaq declined -1.80%. Google-parent Alphabet Inc fell -1.40% after CNBC reported that Chief Executive Officer (CEO) Sundar Pichai faced heated questions from employees at an all-hands meeting last week, with staffers expressing concern about cost cuts and recent comments from Pichai regarding the need to improve productivity by 20%. The small capitalisation Russell 2000 lost -2.48%.
US equity markets retreated amid mounting concerns that the Federal Reserve’s aggressive monetary policy will tip the economy into a recession - Dow fell -107-points or -0.35%. Salesforce Inc rose +1.71% after the customer relationship management software company hosted an Investor Day, reiterating the fiscal 2023 revenue outlook of ~US$31B, after the company cut the outlook in May (to a range of US$31.7B-to-US$31.8B from US$32.0-to-US$32.1B in March), and lowered it again in August (to US$30.9B- to-US$31.0b). Boeing Co edged ~% higher in after-hours trading (following a -3.20% decline in regular trading) after The Wall Street Journal reported that the aerospace and defence company was seen "poised" to settle a U.S. Securities and Exchange Commission (SEC) investigation into its 737 Max crashes a few years back. The settlement pertains to "allegedly misleading statements" from the company and then-Chief Executive Dennis Muilenburg about the jets that crashed in Indonesia in 2018 and Ethiopia in 2019, the newspaper said, citing people familiar with the matter. The broader S&P500 -0.84%, with the Consumer Discretionary sector (down -2.16%) leading nine of the eleven primary sectors lower. Health Care (up +0.51%) and Communication Services (+0.06%) were the only primary sectors to advance overnioght. The Nasdaq -1.37%. The small capitalisation Russell 2000 lost -2.26%.
US equity markets retreated as Treasury yields continued to climb on the eve of the Federal Reserve’s latest interest rate decision - Dow down -313-points or -1.01%, falling as much as -550-points earlier in the session. The broader S&P500 fell -1.13%, with Real Estate (down -2.57%) and Materials (-1.90%) leading all eleven primary sectors lower. Ford Motor Co tumbled -12.32% to log its worst single session drop since 2011 after the automaker told investors after the close of the previous session that it saw a +US$1B increase in supply chain costs during the third quarter. General Motors Co fell -5.63%. The Nasdaq -0.95%. Apple Inc rose +1.57% after announcing price rises for the app store in a number of Asian and European countries, likely a response to the surge in the U.S. dollar. Nvidia Corp (down -1.54%) hosted their GPU Technology Conference overnight and said that the launch of its next generation of gaming cards is well positioned. The RTX 4090 Gaming chips using the company’s next-generation “Ada Lovelace” architecture, said to perform up to four times faster than its previous generation RTX 3090 Ti, will be available on 12 October for a suggested retail price of US$1,599. Following the keynote address, Chief Executive Officer (CEO) Jensen Huang told analysts that while gaming end markets are soft, they’re not so soft that Nvidia won’t be able to sell excess inventory it has in the channel. The Dow Jones Transport Average, viewed as a barometer of economic health, dropped -2.27% to a near 19-month low, with all 20 components retreating. The small capitalisation Russell 2000 lost -1.40%.
US equity markets logged modest gains ahead of the Federal Reserve kicking off their latest two day monetary policy meeting tonight AEST - Dow up +197-points or +0.64%, recovering from an earlier session decline of as much as -263-points. The broader S&P500 added +0.69%, with Materials (up +1.63%), Consumer Discretionary (+1.34%), Industrials (+1.33%), Utilities (+1.32%) and Financials (+1.12%) all rebounded over >1% to lead nine of the eleven primary sectors higher. Healthcare (down -0.54%) and Real Estate (-0.21%) were the only primary sectors to close in the red. Vaccine manufacturers Pfizer Inc (-1.28%), Moderna Inc (down -7.14%), BioNTech SE (-8.60%) and Novavax Inc (-6.51%) all declined a day after President Joe Biden said in a CBS interview that "the pandemic is over". Ford Motor Co fell over >4% in extended trading after the automaker told investors it saw a +US$1B increase in supply chain costs during the third quarter. Ford reiterated its full-year guidance for adjusted earnings before interest and taxes (EBIT) of between US$11.5B and US$12.5B. The company is slated to release its third quarter result on 26 October. The Nasdaq rose +0.76%. Chipmaker Nvidia Corp (up +1.39%) hosts a GTC Financial Analyst Q&A tonight AEST. The small capitalisation Russell 2000 gained +0.81%.
US equity markets retreated to two-month lows on Friday (16 September) to cap a tough week for stocks amid ongoing inflation concerns, looming further interest rate hikes and some fresh warning signs about economic growth - Dow fell -139-points or -0.45%, paring an earlier decline of as much as -412 points. Goldman Sachs Group Inc's fell -1.63%, with Bloomberg Law reporting that the company’s consumer banking unit is being reviewed by the Federal Reserve, citing people familiar with the matter. Goldman's management has been subjected to questions and follow-ups from the central bank's officials for several weeks, the report said, adding that the process was still ongoing. The broader S&P500 -0.72%, with Energy (down -2.17%) and Industrials (-2.06%) leading all eleven primary sectors lower. FedEx Corp tumbled -21.4% the shipments company and economic bellwether withdrew its full year financial forecast after the close of last Thursday’s (15 September) session, blaming an acceleration in a global demand slowdown. The company also said it will implement cost-cutting initiatives to contend with soft global shipment volumes as “macroeconomic trends significantly worsened.” FedEx Chief Executive Officer (CEO) Raj Subramaniam told CNBC late Thursday (15 September) that the global economy was likely headed for a recession. United Parcel Service Inc fell -4.48%. Home Depot Inc’s (up +1.63%) CEO Ted Decker told CNBC on Friday (16 September) that “Our consumer, our customer, pro and DIY have been resilient,” responding to questioning about whether he has seen the same signs of recession that FedEx CEO Raj Subramaniam had warned of a day earlier. Mr Decker further observed that “Our customer tends to have strong income. They tend to be homeowners. And guess what, they’re spending more time in that home, and that home’s aging,” adding that “We couldn’t be more bullish.” General Electric Co fell -3.7% after the company’s chief financial officer (CFO) Carolina Happe said at a Morgan Stanley investor conference that persistent supply-chain pressures were putting the conglomerate’s cash flow under pressure. The Nasdaq fell -0.90%. The small capitalisation Russell 2000 lost -1.48%. The Dow Jones Transport Average, viewed as a barometer of economic health, dropped -5.07%.
US equity markets retreated, extending losses in the afternoon session as a slew of economic data failed to alter expectations for further aggressive monetary policy tightening - Dow fell -173-points or -0.56%, The broader S&P500 lost -1.13% but held just above >3,900, with Energy (down -2.54%), Utilities (-2.53%), Information Technology (-2.37%) and Real Estate (-2.24%) all declining over >2% to lead nine of the eleven primary sectors lower. The Biden administration helped broker a tentative deal with unions to avert a strike, thereby avoiding a rail shutdown which would add to supply-chain pressures at the core of hot inflation. Union Pacific Corp added +0.19%. The Nasdaq shed -1.42%, with Amazon.com Inc (down -1.77%), Apple Inc (-1.89%), and Microsoft Corp (-2.71%) notable drags on the technology centric index. The small capitalisation Russell 2000 lost -0.72%. • FedEx Corp slumped over >16% in extended trading the shipments company and economic bellwether withdrew its full-year guidance, and said it will implement cost-cutting initiatives to contend with soft global shipment volumes as “macroeconomic trends significantly worsened.” The company said it is closing 90 office locations, shut down five corporate office facilities and pause hiring efforts, as part of those cost-cutting measures. In its preliminary results, FedEx reported earnings per share (EPS) of US$3.33 per share in its first quarter, down -19% from a year ago and well below the US$5.14 per share Wall Street expected. Revenue increased +5% from a year ago to $23.2bn but was slightly below analysts’ forecast for US$23.6B. The company said it expects business conditions to further weaken in the current quarter and forecast revenue to be in the range of US$23.5B to US$24B, with EPS of US$2.65 “or greater”. That compares to current Wall Street expectations for revenue of US$24.9B and EPS of $5.39. FedEx is slated to release its first quarter result on Thursday next week (22 September).
US equity markets settled with modest gains after a choppy session, steadying after a hotter-than-expected August consumer price inflation (CPI) saw the benchmark indices record their worst single session declines since Jun 2020 in the previous session - Dow edged +30-points or +0.10% higher, recovering from an earlier slide of as much as 200-points. The broader S&P500 added +0.34%, with Energy (up +2.85%) leading six of the eleven primary sectors higher. Real Estate (down -1.39%) and Materials (-1.23%) both declined over >1% to sit at the foot of the primary sector leaderboard. Lithium miner Albemarle Corp (up +3.01%), spun off from Ethyl Corp. in 1994, touched an all-time high (US$308.24). Verizon Communications Inc (down -1.13%) signalled another weak quarter in terms of new subscribers, due in part to price hikes earlier this year. Chief Executive Officer (CEO) Hans Vestberg, speaking at Goldman Sachs Group Inc.’s media and telecom conference, said that the price increases have caused a “churn bubble” in the current quarter. Intel Corp (down -0.38%) and Walgreens Boots Alliance Inc (+0.09%) were among stocks hitting 52-week lows. Railroad operators Union Pacific Corp (down -3.69%) and CSX Corp (-1.05%) declined amid concern about a potential national railroad strike The Nasdaq gained +0.74%. The small capitalisation Russell 2000 rose +0.38%.
US equity markets tumbled, recording the worst sell-off since the early days of the COVID pandemic as a stronger-than-expected August inflation report punctured a four day rally and brought a +100 basis point interest rate hike into play next week - Dow dropped -1,276-points or -3.94%, with all 30 index components settling in the red. The broader S&P500 shed -4.32%, with Communication Services (down -5.64%), Information Technology (-5.36%) and Consumer Discretionary (-5.22%) falling over >5% and leading all eleven primary sectors lower. The S&P500 Growth Index fell -5.19%, while the S&P500 Value Index declined a more modest -3.49%. Just six (6) stocks in the S&P 500 finished in positive territory, including Twitter Inc (up +0.80%) after shareholders voted to approve Tesla Inc (-4.04%) Chief Executive Elon Musk's US$44B bid to acquire the embattled company and take it private. Citigroup Inc (down -3.38%) Chief Financial Officer (CFO) Mark Mason warned the fees his bank collects from deal making and capital markets origination are likely to tumble -50%, in line with the broader slowdown hitting Wall Street. That mirrors earlier comments from JPMorgan Chase & Co (-3.47%), which said investment-banking fees may fall by half as clients stay on the sidelines. The five largest companies in the S&P 500 by market capitalization - Apple Inc (down -5.87%), Microsoft Corp (-5.50%), Amazon.com Inc (-7.06%), Google parent Alphabet Inc (-5.90%), and Tesla Inc - shed -US$477B in value. The Nasdaq slumped -5.16%, with Meta Platforms Inc (-9.37%) and Nvidia Corp (-9.47%) also falling sharply. All components in the Nasdaq 100 (down -5.54%) declined. The latest declines marked the biggest daily percentage fall for all three benchmark indexes since 11 June, 2020, according to Dow Jones Market Data. The small capitalisation Russell 2000 lost -3.91%.
The S&P500 and Nasdaq equity extended their rebound into a fourth consecutive session ahead of tonight’s AEST August inflation figures, with a number of traders pointing to a ‘short squeeze’ - Dow settled +230-points or +0.71% higher, having been up as much +352-points at its session peak. Goldman Sachs Group Inc (up +0.73%) will cut jobs as early as this month after pausing the annual practice for two years during the pandemic, according to a Reuters report. The investment bank warned in July it might slow hiring and cut expenses as the economic outlook worsens. Activist investor Dan Loeb signalled through Twitter that he is backing off his push to persuade Walt Disney Co (up +1.05%) to spin off its popular sports television network ESPN. The broader S&P500 rose +1.06%, with Energy (up +1.81%), Information Technology (+1.63%) and Consumer Discretionary (+1.35%) all advancing over >1% and leading all eleven primary sectors higher. Bristol-Myers Squibb Co jumped +3.14% after the U.S. Food and Drug Administration (FDA) approved the company’s oral treatment for plaque psoriasis known as Sotyktu. The Nasdaq gained +1.27%. The small capitalisation Russell 2000a advanced +1.23%.
US equity markets rallied on Friday (9 September) to secure their first weekly advance in four weeks, shrugging off some fresh hawkish commentary from Federal Reserve officials and with traders eyeing inflation figures later this week - Dow gained +377-points or +1.19%, The broader S&P500 rose +1.53%, with Communication Services (up +2.53%) and Energy (+2.38%) gaining over >2% to lead all eleven primary sectors higher. Warren Buffett’s investment vehicle Berkshire Hathaway boosted its stake in Occidental Petroleum (up +1.63% in extended trading after +1.75% rise in the regular session) to 26.8% (up from 20.2% as at 8 August) according to a regulatory filing late on Friday (9 September after getting the go-ahead last month from the Federal Energy Regulatory Commission to buy as much as half of the oil giant. The Nasdaq rallied +2.11%. The small capitalisation Russell 2000 gained +1.95%.
US equity markets settled with their first back-to-back gains in two weeks as investors digested Federal Reserve Chair Jerome Powell’s latest remarks - Dow gained +193-points or +0.61%, The broader S&P500 rose +0.66%, with Health Care (up +1.77%) and Financials (+1.74%) rising over >1.7% to lead eight of the eleven primary sectors higher. The Nasdaq added +0.60%. Snap Inc jumped +9.34% after Verge reported its Chief Executive Officer (CEO) Evan Spiegel broke down plans to reach US$6B in revenue and 450 million users in a leaked internal memo. The small capitalisation Russell 2000 rose +0.81%.
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US equity markets rebounded, with all three benchmark indices logging their largest daily percentage gains since 10 August despite some more hawkish pronouncements from various Federal Reserve officials - Dow gained +436-points or +1.4%, with 3M Co (up +3.39%) and Nike Inc (up +3.17%) among notable performers. A US$1 move in any one of the 30 components of the Dow equates to a 6.59-point swing. The broader S&P500 rose +1.83%, with Utilities (up +3.14%) and Consumer Discretionary (+3.08%) climbing over >3% to lead ten of the eleven primary sectors higher. Energy (down -1.15%) was the only primary sector to settle in the red, with Exxon Mobil Corp falling -0.85%, Chevron Corp -1.28% and Occidental Petroleum Corp -2.17%. United Airlines Holdings Inc rose +5.52% after the air carrier raised its third-quarter revenue growth outlook, citing continued "strong" demand exiting a "robust" summer. The company now expects revenue to be ~12% above the same period in pre-pandemic 2019, compared with previous growth guidance of ~11%. The company expects capacity to be down 10% to 11%, compared with previous expectations of down about 11%. And with costs in line with, to slightly better than expectations, but spread over greater capacity, costs per available seat miles, excluding fuel, profit sharing and nonrecurring charges, is expected to be up +16% versus previous expectations of up 16% to 17%. United raised its estimate for average fuel price per gallon to US$3.83 from US$3.81. The Nasdaq rebounded +2.12%, snapping a seven session losing streak (the technology-centric indice’s longest such streak since 4 November, 2016). Apple Inc’s (up +0.93%) hosted their launch event – titled “Far Out” – overnight, unveiling three new Apple Watches and updated AirPods Pro. The company said it did not increase the prices on its iPhone 14 line-up as a number of analysts had speculated. McCormick & Co Inc fell over >4.5% in extended trading (following a +3.41% gain in regular trading) after the spice maker and distributor said that third-quarter sales have fallen short of its expectations. Sales are expected to rise by ~3% in third quarter, while adjusted earnings per share (EPS) are forecast to be ~US$0.65c (down from US$0.80c in the year-ago period). Current consensus analyst forecasts are for McCormick to report adjusted EPS of US$0.83 cents a share when it reports quarterly earnings in early October. The small capitalisation Russell 2000 gained +2.21%. Twitter Inc gained +6.6% after The Wall Street Journal reported that a judge has ruled Elon Musk can amend his countersuit against the social-media company he agreed to buy for US$44B to include a whistleblower report but denied Mr Musk’s request to postpone the trial to November.
US equity markets resumed trading following the Labor Day holiday weekend on the backfoot as Treasury yields resumed their march higher - Dow fell -173-points or -0.55%, with the 30-stock index trading in an ~400-point intra-day range. The broader S&P500 -0.41%, with Communication Services (down -1.26%) and Energy (-1.08%) both falling over >1% to lead seven of the eleven primary sectors lower. More defensive sectors outperformed overnight, including Real Estate (up +1.01%) and Utilities (+0.23%). FedEx Corp fell -2.2% after analysts at Citi downgraded the package delivery company to a “neutral’ rating from ‘buy’ (and cutting their target price to US$225 from US$270) citing concerns over the pace of freight activity with upcoming data expected to “skew negatively” in the peak season.
August results were sound by historical standards, reflecting a stable operating environment and offering comfort to investors.
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AUD - buying ~68.12 US cents. The Reserve Bank of Australia (RBA) announces it latest interest rate decision at 2:30pm AEST, with consensus expectations for a 50 basis point interest rate hike to lift the cash rate to 2.35%. Second quarter Current Account figures and the Ai Group Services Index for August are also slated for release.
US equity markets relinquished earlier session gains to settle with sharp losses heading into the Labor Day long weekend as investors digested an August jobs report and reports of further delays to the re-opening of the Nord Stream 1 pipeline - Dow fell -338-points or -1.07%, erasing an earlier ~370-point gain. The broader S&P500 -1.07%, with Communication Services (down -1.86%) and Real Estate (-1.68%) falling over >1.5% to lead ten of the eleven primary sectors lower. Energy was the only primary sector to advance, climbing +1.81%. The Nasdaq shed -1.31%, falling for a sixth straight day in its longest losing streak since August 2019. Large cap technology names Apple Inc (down -1.36%), Microsoft Corp (-1.67%) and Meta Platforms Inc (-3.05%) all logged solid losses. Advanced Micro Devices Inc (down -2.54%) will replace DuPont de Nemours Inc (-0.85%) in the S&P 100 index effective 19 September, S&P Dow Jones Indices announced on Friday (2 September). The small capitalisation Russell 2000 lost -0.72%.
The Dow and S&P500 snapped a four session losing streak, recovering from sharp opening declines to open September on a firmer footing ahead of tonight’s AEST key August jobs data - Dow rose +146-points or +0.46%, with most of the gains coming in the final 10-minutws of the session. The broader S&P500 added +0.3%, with the more defensive sectors of Health Care (up +1.65%) and Utilities (+1.42%) led eight of the eleven primary sectors higher. Energy (down -2.30%) sat at the foot of the primary sector leaderboard, while Materials fell -1.38% and Information Technology -0.46%. The Nasdaq eased -0.26%. Nvidia Corp dropped -7.67% in the wake of a filing with the Securities and Exchange Commission (SEC) after the close of Wednesday’s (31 August) session that revealed the U.S. government has imposed a new licensing requirement covering exports of some of Nvidia’s chips (A100 and forthcoming H100 integrated circuits, Nvidia’s highest-performance products for servers) to China, including Hong Kong, and Russia. The filing specifically states that Nvidia’s forecast for the current quarter includes an expected US$400M in data-centre sales to China that could be affected by the move; Nvidia does not currently sell products in Russia. Advanced Micro Devices Inc (down -2.99%) said that U.S. officials have also told it to stop exporting its top AI chips to China, according to a Reuters report, but said it did not expect the restrictions to have a material effect on its business. The small capitalisation Russell 2000 lost -1.15%.
US equity markets extended declines into a fourth session as selling accelerated in the final ten minutes of the session to cap a tough month - Dow fell -280-points or -0.88%. Walt Disney Co (down -0.31%) is exploring a membership program similar to Amazon Prime, according to a report in The Wall Street Journal, with perks designed to encourage customers to spend more on streaming, resorts and merchandise. The broader S&P500 -0.78%, with Materials (down -1.21%) and Consumer Discretionary (-1.05%) falling over >1% to lead ten of the eleven primary sectors lower. Communication Services was the only sector to settle in positive territory, eking out a +0.01% gain. The Nasdaq -0.56%. Nvidia Corp fell over >6% in extended trading (following a -2.42% drop in the regular session) after the chipmaker said the U.S. government is restricting sales in China. Nvidia said the U.S. government told the company on 26 August about a new license requirement for future exports to China, including Hong Kong, to reduce the risk that the products may be used by the Chinese military. The small capitalisation Russell 2000 lost -0.62%. Snap Inc rose +8.69% following a report that said the Snapchat parent company plans to lay off 20% of its 6,400 employees in a round of layoffs that will begin immediately. Alibaba Group Holding gained +1.67% and Chinese e-commerce peer JD.com Inc +3.22%. The two companies are reportedly among a first group selected for inspection by U.S. audit authorities in the wake of a landmark bilateral deal between the U.S. and China over financial transparency for U.S.-listed Chinese stocks.
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Likely seasonal weakness at the end of September should be followed by a stronger equities market in the final quarter.
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US equity markets extended declines into a third session as investors eyed some strong economic data that may provide Federal Reserve policymakers even more ammunition to continue its aggressive pace of interest-rate hikes - Dow fell -308-points or -0.96%, The broader S&P500 -1.10%, with Energy (down -3.36%) leading all eleven primary sectors lower. However, as of last night’s AEST close, energy and utilities were the only sectors up year to date and on pace to end the month with gains. The Nasdaq -1.11%, notching its third straight daily drop of at least 1%, the technology centric indice’s longest such streak since 13 June. Advanced Micro Devices Inc lost -1.75% despite the chipmaker announcing late Monday (29 August) that it would launch what it claimed is the “fastest processor in the world for gaming” in September. More broadly, Citi Group analysts penned a note predicting that “we are entering the worst semiconductor downturn in a decade given the recession and inventory build,” citing cancellations of orders from auto and industrial companies that executives from Micron Technology Inc (down -1.25%) and Analog Devices Inc (-1.59%) disclosed in recent weeks. All three U.S. benchmarks closed below their 50-day moving averages for the first time since July, according to Dow Jones Market Data. The small capitalisation Russell 2000 lost -1.45%. Twitter Inc fell -1.80% after Elon Musk sent a letter “formally notifying” the company that he was terminating the merger deal. In a letter delivered to Twitter on 29 August, Mr Musk mentions allegations known to Twitter before 8 July but undisclosed to him, that came to light after the Washington Post published a whistleblower report alleging “far-reaching misconduct” at Twitter.
Senior Analyst and Co-head of Research Alex Mees gives his analysis of Lovisa's FY22 result saying, what was clear to us was that this is a global growth story that is really only just getting started. FY22 earnings were certainly impressive.
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US equity markets logged back-to-back losses as investors continued to digest Federal Reserve Chief Jerome Powell’s address at the Jackson Hole Economic Symposium last Friday (26 August) in which he signalled the central bank would keep hiking rates to tame inflation - Dow fell -184-points or -0.57%, Dow Inc dropped -1.63%, pairing a earlier decline of as much as -3.5%, after analysts at KeyBanc Capital turned bearish on the chemicals and specialty materials company (cutting their recommendation to “underweight”), citing concerns that the “meaningful” exposure to commodities and Europe skews the risk-versus-reward profile to the downside. The bearish stance comes after Dow Jones Newswires reported last week that Dow told its customers that it would temporarily reduce polyethylene (PE) operating rates by 15%. The broader S&P500 -0.67%, with Information Technology (down -1.28%) the worst performing primary sector for a second straight session and leading nine of eleven primary sectors lower. Energy (up +1.54%) and Utilities (+0.25%) were the only primary sectors to advance. Bristol-Myers Squibb Co dropped -6.24% after the pharmaceutical company reported results from a mid-stage trial of its developing stroke treatment that failed to meet the main objective of the study. The S&P 500 and Dow both briefly flipped positive earlier in the overnight session, but failed to hold those gains as losses mounted heading into the closing bell. The Nasdaq lost -1.02%. Apple Inc (down -1.37%) is holding a launch event at its headquarters in Cupertino, California, next week (7 September) and is expected to announce new iPhone models (as it has every September since 2012). This year’s event has the tagline “far out,” which could refer to features such as night-sky photography. Netflix Inc added +0.58% after Bloomberg reported that the streaming giant is considering pricing its ad-supported tier at between US$7-to-US$9 per month, with the service expected to be launched in the final quarter of the year in a handful of markets. The small capitalisation Russell 2000 lost -0.89%.
Senior Analyst and Equity Strategist Tom Sartor updates us on the current state of reporting season so far. The beats, misses, and key takeaways, as we head into the final few days of reporting.
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US equity markets fell sharply as investors digested Federal Reserve Chief Jerome Powell’s address at the Jackson Hole Economic Symposium in which he signalled the central bank would keep hiking rates to tame inflation and provided a frank acknowledgment of coming pain to households - Dow slumped -1,008-points or -3.03%, settling with its largest percentage drop since 18 May. 3M Co. stock tumbled -9.54%, pacing the Dow’s steep decline and logged its largest single-day percentage decline since 25 April, 2019 (alone shaving -89.77 points off the 30-stock index) after reports indicated that a bankruptcy judge blocked a request from 3M that would have shielded the company from litigation around earplugs that were sold to the military and later alleged to have caused issues such as hearing loss. The company’s Aearo subsidiary filed for bankruptcy last month, allowing the subsidiary to pause pending lawsuits, but the judge determined that 3M, which itself did not file for bankruptcy, is not entitled to those protections The broader S&P500 tumbled -3.37%, logging its biggest single session percentage decline since June. Information Technology (down -4.28%), Communication Services (-3.88%), Consumer Discretionary (-3.86%) and Industrials (-3.51%) all declined over >3.5% to lead all eleven primary sectors lower. ~43% of stocks were down at least 4%, while only five stocks in the S&500 settled in positive territory – Electronic Arts Inc (up +3.57), Molina Healthcare (+3.36%), Take Two Interactive Software Inc (+1.59%) , CF Industries Holdings Inc +0.81%) and ConocoPhillips (+0.04%). The Nasdaq dropped -3.94% and recorded its steepest single session percentage decline since 16 June. Having led gainers in the previous session, Nvidia Corp (down -9.23%) and Amazon.com Inc (-4.31%) dropped sharply. Meta Platforms Inc (-4.15%), Netflix Inc (-4.57%) and Block Inc (-7.72%) also logged steep declines. Apple Inc fell -3.77%, with Politico reporting late on Friday (26 August) that the company could be in the crosshairs of a potential antitrust lawsuit by the Justice Department by the end of the year. The iPhone maker has been under investigation by the Justice Department for more than three years over charges from developers that it has abused its market power to stifle competition. It remains unclear if the department will pursue a formal case, according to the report in Politico, citing people with direct knowledge of the matter. The Justice Department is expected to file an antitrust action against Google-parent Alphabet Inc (down -5.41%) regarding Google’s dominant online ad business. The small capitalisation Russell 2000 lost -0.49%. Dell Technologies Inc shed -13.51%, logging its worst one-day performance since 24 December, 2018 executives dialled back their expectations for the PC market after quarterly sales came up short of the Wall Street consensus estimate after the close of last Thursday’s (25 August) session. Listed PC peer HP Inc fell -8.94%.
Benchmark US equity indices logged their best daily percentage gains since 12 August overnight following some better-than-expected economic data, and as investors eye Federal Reserve Chair Jerome Powell’s address at the Jackson Hoe Economic Symposium tonight AEST - Dow rose +323-points or +0.98%, The broader S&P500 gained +1.41%, with Materials (up +2.26%) and Communication Services (+2.06%) rising over >2% to lead al eleven primary sectors higher. The technology-centric Nasdaq rallied +1.67%, aided by a pullback in Treasury yields. Nvidia Corp The small capitalisation Russell 2000 advanced +1.52%. Equity markets have been contending with low volume trade, with Wednesday’s (24 August) session recording turnover of just 8.8B shares across the various Wall Street exchanges - the lowest volume so far this year and a decline of 26% compared with the daily average for 2022, according to Dow Jones data.
Senior Analyst and Co-head of Research Alex Mees gives his analysis of Domino's Pizza (ASX:DMP) and The Lottery Corporation's (ASX:TLC) results for FY22.
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reportingseason #retail #gaming #economy #finance
US equity markets pushed modestly higher, with both the Dow and S&P500 snapping a three session decline - Dow added +60-points or +0.18%. The broader S&P500 settled +0.29% higher, with the Energy sector (up +1.2%) sitting atop the primary leaderboard for a second straight session and leading all eleven primary sectors higher. Cruise lines were among the best-performing stocks in the broader market index, with Norwegian Cruise Line Holdings jumping +8.40%, Royal Caribbean Group +7.65%, and Carnival Corp +5.35%. Advance Auto Parts Inc (down -9.62%) was the worst performer in the S&P500 after the auto-parts retailer reported a mixed second-quarter result and lowered its full year outlook after the close of the previous session. Tesla Inc added +0.22% to US$891.29 ahead of the electric vehicle maker’s three-for-one stock split becoming effective after the close of the session. Tesla undertook a 5-for-1 share split effective 31 August, 2020, and the stock has gained ~104% since then. The Nasdaq rose +0.41%. The small capitalisation Russell 2000 gained +0.84%. Peloton Interactive Inc soared +20.36% after the fitness equipment and apparel company announced a deal to sell its products on Amazon. To date, Peloton has relied on direct-to-consumer sales through its stores and website. Bed Bath & Beyond Inc popped +15.3% after The Wall Street Journal reported the meme stock has found a financing source to shore up its liquidity.
The Dow and S&P500 extended declines into a third straight session amid relatively thin trading volumes - Dow fell -154-points or -0.47%, The broader S&P500 slipped -0.22%, with the more defensive Real Estate (down -1.45%) and Health Care (-1.39%) both falling over >1% and leading seven of the eleven primary sectors lower. Energy sat atop the primary sector leaderboard with a +3.62% gain. The Nasdaq settled flat. Twitter Inc dropped -7.32% after a whistleblower at the company filed complaints with the Securities and Exchange Commission (SEC), Federal Trade Commission (FTC) and Justice Department alleging “extreme, egregious deficiencies by Twitter” related to privacy, security and content moderation. Tesla Inc rose +2.26% ahead of the electric vehicle maker’s three-for-one stock split becoming effective after the close of tonight’s AEST session. Tesla’s three-for-one split will be its second in as many years; the company split its shares five-for-one in August 2020. The small capitalisation Russell 2000 edged +0.18% higher.
US equity markets recorded their steepest declines in two months to open the new trading week as investors eye the Jackson Hole Economic Symposium later this week and worry that the Federal Reserve may strike a more hawkish tone - Dow fell -643-points or -1.91%, The broader S&P500 shed -2.14%, with Consumer Discretionary (-2.84%), Information Technology (down -2.78%), and Communication Services (-2.67%) all dropping over >2.5% to lead all eleven primary sectors lower. Both the Dow and S&P500 logged their steepest single session declines since 16 June. The Nasdaq dropped -2.52%, recording its largest single session fall since 28 June. Netflix Inc dropped -6.06% after analysts at CFRA downgraded the streaming giant, noting that a key catalyst for the company - introducing new ad-pay subscription plans – “may not be visible until 2023.” The small capitalisation Russell 2000 lost -0.49%.
US equity markets retreated on Friday (19 August), with the recent rebound faltering as interest rate hike fears resurfaced ahead of the Jackson Hole Economic Symposium that begins on Thursday night AEST (25 August) - Dow fell -292-points or -0.86%, The broader S&P500 lost -1.29%, with Consumer Discretionary (-2.10%) and Financials (2.02%) both falling over >2% to lead nine of the eleven primary sectors lower, Information Technology (-1.83%) was also a major drag. Health Care (+0.27%) and Energy (+0.02%) were the only primary sectors to advance. General Motors Co rose +2.53% after it said it would reinstate quarterly dividend payouts. Occidental Petroleum Corp jumped more +9.88% after Warren Buffett’s Berkshire Hathaway Inc received regulatory approval (after filing an application with the Federal Energy Regulatory Commission on 11 July) to buy to half of the oil company. Berkshire currently owns 188.5M shares of Occidental, equal to a 20.2% position. It surpassed a key threshold where Berkshire could record some of the oil company’s earnings with its own, potentially adding billions of dollars in profit. The Nasdaq -2.01%. The small capitalisation Russell 2000 lost -2.17%. Bed Bath & Beyond Inc tumbled -40.54% after Bloomberg reported that some suppliers are restricting or halting shipments altogether after the home-goods retailer fell behind on payments. The report came after GameStop Corp Chairman Ryan Cohen disclosed in a filing after the close of last Wednesday’s (17 August) session that he’s planning to sell his big stake in the company just months after he bought it.
Morgans Senior Analyst Adrian Prendergast gives us an update following a strong result from BHP, with earnings slightly ahead of expectations while positively surprising on both dividend and free cash flow generation.
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US equity markets eked out modest gains, turning positive in the final hour of the session as investors assessed mixed signals from several Federal Reserve officials on the potential pace of interest rate increases on deck for September - Dow inched +19-points or +0.06% higher. The broader S&P500 rose +0.23%, with Energy (up +2.53%) and Information Technology (+0.49%) leading seven of the eleven primary sectors higher. The Nasdaq added +0.21%. The small capitalisation Russell 2000 rose +0.68%. Bed Bath & Beyond Inc fell -19.63% (and dropped more than >44% in extended trading) after GameStop Corp Chairman Ryan Cohen disclosed in a filing after the close of the previous session that he’s planning to sell his big stake in the company just months after he bought it.
US equity markets retreated but settled off their worst levels off the session as investors digested the latest central bank monetary policy meeting minutes - Dow fell -172-points or -0.50%, paring an earlier decline of as much as -324-points but snapping a five session winning streak. The broader S&P500 -0.72% at 4,274.04, with Communication Services (down -1.85%), Materials (-1.40%) and Consumer Discretionary (-1.12%) all declined over >1% to lead ten of the eleven primary sectors lower. Energy (up +0.81%) was the only primary sector to advance overnight. The index challenged its 200-day moving average (~4,326) for the first time since April. The Nasdaq dropped -1.25%. The small capitalisation Russell 2000 shed -1.64%. ‘Meme’ stock Bed Bath & Beyond Inc extended its meteoric rise, up a further +11.77% overnight. However, the retailer fell over >16% in extended trading after activist investor Ryan Cohen said in a filing he intends to sell his entire stake in the company through his firm RC Ventures.
US equity markets mixed as investors weighed a pair of strong corporate results from major retailers Walmart Inc and Home Depot Inc against the backdrop of a slowdown in the housing market - Dow gained +239-points or +0.71% to 34,152.01, reclaiming the 34,000 level for the first times since 4 May as it extended its rally into a fifth straight session. The broader S&P500 edged +0.19% higher, Royal Caribbean Cruises Ltd gained +3.99% even after the company refinanced with a new batch of junk bonds yielding more than 11%. The Nasdaq slipped -0.19%. The small capitalisation Russell 2000 dipped -0.04%. ‘Meme’ stock Bed Bath & Beyond Inc continued to soar, rising +29.01% after another wild session that saw the company’s free float turn over 6.5 times during the session.
Senior Analyst and Equity Strategist Tom Sartor takes us through the results and themes so far this August 2022 Reporting Season, with over 25% of the top 50 ASX companies reporting results for FY22.
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reportingseason #ASX #economy #ausbiz #finance
US equity markets advanced, shrugging off some underwhelming economic data out of China - Dow gained +151-points or +0.45%, its fourth consecutive session gain and longest winning streak since its six session strong of gains that ended 27 May. The 30-stock index also closed above its 200-day moving average for the first time since 20 April. The broader S&P500 rose +0.40%, with Consumer Staples (up +1.05%) and Utilities (+0.81%) leading nine of the eleven primary sectors higher. Energy (down -1.96%) sat at the foot of the primary sector leaderboard, with Exxon Mobil Corp down -1.79%, Chevron Corp -1.90% and Marathon Oil Corp -2.78%. Tesla Inc rose +3.1%, with Chief Executive Elon Musk tweeting that the electric-vehicle maker has produced more than >3M vehicles, with a third of them made in China. The Nasdaq climbed +0.62%. Apple Inc (up +0.63%) may expand its advertising to more of its first-party apps on the iPhone in an effort to boost revenue, according to Bloomberg. The company generates ~US$4B in annual revenue from its ad business but wants to grow the segment into the “double digits,” according to the report. The small capitalisation Russell 2000 added +0.23%. Bed Bath & Beyond Inc soared +23.55% as the Reddit crowd that made it a meme stock again embraced it. Volume of 127M shares traded was more than eight times the 65-day average of 15m shares per day. The stock has been rallying amid with no real news, but participants on Reddit’s WallStreetBets forum were celebrating the gains. The stock, which has been shorted by many large funds, is up ~200% so far this month.
US equity markets rallied into the close of Friday’s (12 August) session to cap another strong week - Dow gained +424-points or +1.27%, The broader S&P500 rallied +1.73% to 4,280.15. The S&P 500 crossed a closely watched technical level of 4,231 points during last Friday’s (12 August) session, meaning the benchmark index has recouped half its losses since tumbling from its all-time closing peak (4,796.56) set on 3 January. A 50% retracement for some signals a bull market. All 11 primary sectors S&P 500 advanced on Friday (12 August), with Consumer Discretionary (up +2.30%), Information Technology (+2.07%) and Communication Services (+2.02%) all rising over >2%. The Philadelphia Semiconductors Index (+2.99%) and Dow Jones Transport Average (+0.49%) also advanced. The S&P500 Growth Index (up +2.06%) outperformed the S&P500 Value Index (+1.41%). The Nasdaq climbed +2.09% to 13,047.18. The small capitalisation Russell 2000 also gained +2.09%.
US equity markets erased earlier session gains to settle with modest losses, running out of steam in the closing hour of trading despite another reassuring inflation report - Dow edged +27-points or +0.08% higher. Walt Disney Co gained +4.68% after the media and entertainment giant reported its second quarter result after the close of the previous session, adding more streaming subscribers than expected and announcing plans to launch an ad-supported tier while increasing prices on its current offerings before the end of the year. Investment banks Goldman Sachs Group Inc (up +1.08%) and JPMorgan Chase & Co (+1.48%) also continued to trade strongly. The broader S&P500 dipped -0.07%, with the more defensive sectors (Health Care down -0.71%, Real Estate -0.55%) among the key underperformers overnight. Energy (up +3.19%) sat atop the primary sector leaderboard following a strong session on crude markets. Heal The Nasdaq lost -0.58%. Bloomberg reported late in the session that Apple Inc (down -0.44%) is requesting that its suppliers "build at least as many" of the company's new iPhones as they did last year. The report said that Apple also continues to expect suppliers to build ~220M total iPhones for the year, which is roughly equal to last year's figure as well. Bloomberg noted that the report suggested confidence on the part of Apple executives that the company would be able to withstand economic challenges and still drive strong demand for its devices. The small capitalisation Russell 2000 rose +0.31%.
Associate Analyst Steven Sassine previews the stocks yet to report in FY22 in the Online sector, including Carsales.com (CAR) and SEEK (SEK). As well as a recap of REA Group, which reported on 10 August 2022.
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A peak in core inflation allows an easing of bond yields which together with improved earnings support US equities.
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US equity markets rallied after a softer-than-expected inflation report prompted investors to dial back their forecasts on the scale of further interest rate hikes in September - Dow gained +535-points or +1.63%, exiting official correction territory. The broader S&P500 +2.13% to 4,210.24, settling +14.8% above its mid-June low. Materials (up +2.88%), Consumer Discretionary (+2.87%), Information Technology (+2.77%) and Communication Services (+2.77%) all climbing over >2.5%. All eleven primary sectors advanced, with six sector logging gains of over >2%. Tesla Inc gained +3.89% despite filings on Tuesday (9 August) with the Securities and Exchange Commission (SEC) revealing that Elon Musk had sold ~7.9M shares between Friday (5 August) and Tuesday at prices ranging from US$838.57 to US$911.75 - ~US$6.88B in total. In a tweet, Mr Musk indicated he was done selling, adding: “In the (hopefully unlikely) event that Twitter forces this deal to close and some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock.” Last week, Tesla shareholders approved plans for a 3-for-1 stock split, which will take place 24 August. Trading will begin on a stock split-adjusted basis on 25 August, the company said in a regulatory filing. The Nasdaq rallied +2.85% to 12,854.80, exiting official bear market territory after 107 trading sessions. The technology-centric index is up 20.75% from its 2022 closing low of 10646.10 hit on 16 June, 2022. Meta Platforms Inc rose +5.82% after the Facebook-parent said that it had raised US$10B in its first-ever bond offering. Apple Inc (up +2.62%), Alphabet Inc (+2.63%) and Amazon.com Inc (+3.53%) all rose more than >2%. The small capitalisation Russell 2000 jumped +2.95%.
Senior Analyst Nathan Lead gives an update on the result for Aurizon Holdings (ASX:AZJ) which was the softer Bulk result, weaker than expected FY23 outlook, Network macro benefits, and the One Rail acquisition.
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At the Noosa Mining and Exploration Conference 2022, Barry Cahill, Managing Director of Cyprium Metals Limited, spoke to Senior Analyst Chris Brown about their Nifty Copper Mine Project in Western Australia.
You can watch back the presentations from the conference by following this link: https://www.noosaminingconference.com.au/
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US equity markets a little weaker on Friday (5 August) after a solid July jobs report undermined recent optimism that the Federal Reserve might let up its aggressive campaign to reign in decades-high inflation - Dow added +77-points or +0.23%, JPMorgan Chase & Co (up +3.03%) and Goldman Sachs Group Inc (+0.84%) The broader S&P500 slipped -0.16%, with Consumer Discretionary (down -1.66%) leading six of the eleven primary sectors lower. Energy (up +2.04%) returned to the top of primary sector leaderboard. Tesla Inc fell -6.63%, with shareholders at last Thursday’s (4 August) Annual General Meeting (AGM) approving a proposal expected to lead to a 3-for-1 stock split and sided with the company on most of the proposals up for a vote. The Nasdaq fell -0.5%. Meta Platforms Inc fell -2.03% and Amazon.com Inc -1.25%. The small capitalisation Russell 2000 rose +0.81%. Carvana Co soared +40.07% following the used car group’s second quarter result after the close of last Friday’s (5 August) session.
Senior Analyst Nick Harris previews the Technology and Telecommunication sector stocks under his coverage. These include stocks that have and also have yet to report their results.
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A mixed session on US equity markets ahead of the key monthly jobs report tonight AEST - Dow eased -86-points or -0.26%, The broader S&P500 dipped -0.08%, Consumer Discretionary (up +0.54%) and Information Technology (+0.42%) leading seven of the eleven primary sectors higher. The Nasdaq added +0.41% to a fresh 3-month high of 12,720.58, with Amazon.com Inc (up +2.19%) and Advanced Micro Devices (+5.93%) notable performers. Energy (down -3.60%) was the worst performing sector for a second consecutive session. The small capitalisation Russell 2000 lost -0.49%. Coinbase Global Inc jumped +10.01% after it announced a tie-up with BlackRock (+0.79%) to provide its institutional clients access to crypto trading and custody services.
At the Noosa Mining and Exploration Conference 2022, Tony Schreck, Managing Director of Pacgold Limited, spoke to Senior Analyst Chris Brown about their recent high-grade gold discovery at its 100% owned Alice River Gold Project in North Queensland.
You can watch back the presentations from the conference by following this link: https://www.noosaminingconference.com.au/
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At the Noosa Mining and Exploration Conference 2022, Richard Laufmann, Managing Director of Rex Minerals, spoke to Senior Analyst Chris Brown about their Hillside Copper Project in South Australia.
You can watch back the presentations from the conference by following this link: https://www.noosaminingconference.com.au/
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Positive corporate earnings releases set a strong tone on US equity markets overnight, lifting the benchmark indices solidly across-the-board - Dow up +416-points or +1.29% to 32,812.50, settling ~9.8% above its 52-week closing low (29,653.29) hit on 17 June. The broader S&P500 +1.56%, Information Technology (up +2.69%), Consumer Discretionary (+2.52%) rising over >2.5% to lead ten of the eleven primary sectors higher. Energy (down -2.97%) was the only primary sector to close in the red. The Nasdaq rallied +2.58%. PayPal Holdings Inc rallied +9.52% after it raised its full year earnings guidance after the close of the previous session, announced a new US$15B share-buyback authorisation, a cost-savings program, and confirmed activist investor Elliott Management had acquired an over >US$2B stake in the financial technology firm. Apple Inc (3.82%) and Amazon.com Inc (+4.01%) both climbed over >3.5%, while Facebook parent Meta Platforms Inc (+5.37%) gained over >5%. There were reports that Meta may become the latest technology company to turn to the bond markets in a bid to raise capital. The S&P 500 and the Nasdaq are now up ~13% and ~19% respectively from their mid-June lows. The small capitalisation Russell 2000 rose +1.41%.
At the Noosa Mining and Exploration Conference 2022, Chris Cairns, Managing Director of Stavely Minerals, spoke to Senior Analyst Chris Brown about their latest project in Victoria, a high-grade, copper-gold-silver mineralisation, the Cayley Lode, its current progress, and its initial Mineral Resource Estimate results.
You can watch back the presentations from the conference by following this link: https://www.noosaminingconference.com.au/
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At the Noosa Mining and Exploration Conference 2022, Malcolm Norris, Managing Director of Sunstone Metals, spoke to Senior Analyst Chris Brown about their current projects taking place in Ecuador, the Bramaderos Gold-Copper Project and El Palmar Copper-Gold Project.
You can watch back the presentations from the conference by following this link: https://www.noosaminingconference.com.au/
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More rate hikes are still to come this year, but the RBA is confident they will master inflation in 2023 and 2024.
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At the Noosa Mining and Exploration Conference 2022, Peter Ledwidge, Managing Director of Mako Gold, spoke to Senior Analyst Chris Brown about their current gold exploration projects in West Africa.
You can watch back the presentations from the conference by following this link: https://www.noosaminingconference.com.au/
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At the Noosa Mining and Exploration Conference 2022, Theo Psaros, Executive Chairman of Metallica Minerals, spoke to Associate Analyst Kyle Williams about the Cape Flattery Silica Sand Project, key catalysts over the next 12 months, and the Silica Sand market overall.
You can watch back the presentations from the conference by following this link: https://www.noosaminingconference.com.au/
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Senior Analyst & Co-head of Research Alex Mees gives us a preview of the upcoming reporting season, our retail stocks under coverage, as well as key stock picks to look for.
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US equity markets opened August with modest declines, with all three benchmark indices snapping a three session winning streak - Dow fell -47-points or -0.14%, Boeing Co rallied +6.13% to lead Dow gainers after the aerospace and defence giant reportedly cleared a hurdle with the Federal Aviation Administration (FAA) that could allow it to resume deliveries of its 787 airliner. The FAA said it would approve Boeing’s process for validating fixes to each 787 plane before they are delivered to customers, according to an Associated Press report. Separately, The Wall Street Journal reported that Boeing’s defence manufacturing plants will vote on Wednesday (3 August) on a labour contract proposal, which temporarily delays a strike that was scheduled to begin as soon as Monday. The broader S&P500 -0.28%, with Energy (down -2.18%) leading seven of the eleven primary sectors lower. Chevron Corp fell -2.00% and ExxonMobil Corp -2.53%. Consumer Staples sat atop the primary leaderboard with a +1.21% gain. The Nasdaq -0.18% despite a solid session for chipmakers, with Advanced Micro Devices Inc up +2.45% ahead its quarterly result tonight AEST, Intel Corp +1.79%, Micron Technology Inc +1.10% and Nvidia Corp +1.53%. Apple Inc (down -0.62%) raised US$5.5B via the issuance of four series of bonds with ratings of AAA from Moody’s Investors Service and AA+ from S&P Global. The small capitalisation Russell 2000 lost -0.10%. Automotive oil, additives and lubricant maker Valvoline Inc (down -2.70%) it has reached an agreement with Saudi Arabian Oil Co (Aramco) to sell its global products business for US$2.65B in cash.
At the Noosa Mining and Exploration Conference 2022, Joe David, Managing Director of Elementos, spoke to Associate Analyst Kyle Williams about their flagship Oropesa Tin Project in the south of Spain, as well as discussing the landscape of the Tin market.
You can watch back the presentations from the conference by following this link: https://www.noosaminingconference.com.au/
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At the Noosa Mining and Exploration Conference 2022, Kevin MacNeill, Chief Executive Officer of EQ Resources, spoke to Associate Analyst Kyle Williams about EQ's role as the sole tungsten producer in Australia and an update on their current Mt Carbine project in North Queensland.
You can watch back the presentations from the conference by following this link: https://www.noosaminingconference.com.au/
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US equity markets extended their July rebound, with the benchmark indices logging their biggest monthly gains since 2020 - Dow rose +316-points or +0.97%, The broader S&P500 +1.42%, with Energy (up +4.51%) and Consumer Discretionary (+4.27%) rose over >4% to lead nine of the eleven primary sectors higher on Friday (29 July). Consumer Staples (down -0.72%) and Health Care (-0.35%) were the only primary sectors to settle in the red. The Nasdaq +1.88%. Amazon.com Inc jumped +10.36% after forecasting higher third quarter revenue amid higher fees from its Prime loyalty programmes after the close of the previous session. Apple Inc rose +3.28% after delivering fiscal third quarter sales and earnings per share (US$1.20 versus consensus US$1.16) after the close of last Thursday’s (28 July) session that were a touch ahead of Wall Street estimates, underpinned by strength in iPhone sales. Intel Corp dropped -8.56% after the chipmaker’s second quarter earnings undershot consensus forecasts by a wide margin and the company cut its full year outlook after the closing bell of the previous session. Listed chipmaking peer Advanced Micro Devices gained +3.05% to lift its market capitalisation (US$153B) above Intel Corp (US$148B) The small capitalisation Russell 2000 rose +0.65%.
Morgans Senior Analyst Dr. Derek Jellinek previews our stocks under coverage, how they have been performing and expectations heading into reporting season.
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At the Noosa Mining and Exploration Conference 2022, Nick Jorss, Executive Chairman and Gerard Redelinghuys, Managing Director of Bowen Coking Coal, spoke to Equity Strategist Tom Sartor about their current project, with two assets now in production, as well as their thoughts on the energy security crisis we are seeing in the market currently.
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At the Noosa Mining and Exploration Conference 2022, André Labuschagne, Managing Director of Aeris Resources, spoke to Equity Strategist Tom Sartor about the current projects and their upcoming exploration opportunities.
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US equity markets extended their rebound, with both the Dow Jones Industrial Average and S&P500 booking their highest closes in nearly seven weeks - Dow rose +332-points or +1.03% to 32,529.63. The broader S&P500 gained +1.21% to 4,072.43, with Real Estate (up +3.7%) and Utilities (+3.53%) rallying over >3.5% to lead ten of the eleven primary sectors higher (after being relative underperformers in the preceding two sessions). Communication Services (down -0.74%) was the only primary sector to settle in the red. The Nasdaq +1.08%. Facebook parent Meta Platforms Inc fell -5.22% after the social media giant reported disappointing second-quarter results after the closing bell of the previous session accompanied by a third-quarter outlook that was markedly below Wall Street estimates. The small capitalisation Russell 2000 rose +1.34%.
The FED lifted interest rates by 75 basis points and says that further rises will continue.
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US equity markets rallied strongly as investors digested the latest monetary policy pronouncements from the Federal Reserve and another busy night on the US corporate earnings calendar - Dow gained +436-points or +1.37%. Walmart Inc rebounded +3.8% The broader S&P500 rallied +2.62%, with Communication Services (up +5.11%), Information Technology (+4.29%) and Consumer Discretionary (+3.85%) leading all eleven primary sectors higher. More defensive sectors underperformed for a second session running, with Utilities adding +0.11% and Real Estate +0.55%.The Nasdaq soared +4.06% to 12,032.42, logging its best daily rise since April 2020. The small capitalisation Russell 2000 gained +2.39%. The overnight gains also marked the biggest rally on a Fed decision day since December 2008, the day the Fed slashed its benchmark interest rate target to between 0% and 0.25% for the first time in history.
US equity markets weaker on the eve of the latest monetary policy decision and pronouncements from the Federal Reserve, and amid a flood of corporate earnings releases - Dow fell -229-points or -0.71%, Walmart Inc fell 7.60% after the big box retailer downgraded its fiscal second quarter and full year profit guidance after the close of the previous session, citing the impacts of inflation. The broader S&P500 -1.15%, with Consumer Discretionary (down 3.31%) as Walmart’s result weighed on the sector, leading eight of the eleven primary sectors lower. Target Corp dropped -3.6%, Kohl’s Corp -9.12% and Nordstrom Inc -5.78%. Shopify Inc tumbled -14.06% after the payments provider announced it’s laying off ~10% of its global workforce, citing a pullback in online spending and saying it misjudged how long the pandemic-fueled e-commerce boom would last. The e-commerce retailer releases its quarterly result tonight AEST. More defensive sectors outperformed, with Utilities up +0.61% and Health Care +0.55%. The Nasdaq -1.87%. The small capitalisation Russell 2000 lost -0.69%
Morgans Analyst Alex Lu previews the industrial sector heading into reporting season, looking at his key stocks under coverage and top stock picks.
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Chris Brown, Senior Analyst and Kyle Williams, Associate Analyst at Morgans Financial recap the key themes, highlights and takeaways from the Noosa Mining Conference, which took place 20-22 of July 2022 at Peppers Resort in Noosa Heads, Queensland.
You can watch back the presentations from the conference by following this link: https://www.noosaminingconference.com.au/
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A mixed trading session on Wall Street left both the Dow and S&P500 nursing modest gains and settle higher for the fourth session in the past five ahead of the busiest week of the second quarter US corporate earnings calendar - Dow added -91-points or +0.28%. Chevron Corp was the best performing index constituent overnight. Walmart Inc fell over >9.5% in extended trading (after dipping -0.14% in the regular session) after the big box retailer downgraded its fiscal second quarter and full year profit guidance, citing the impact of inflation The company now expects adjusted earnings per share (EPS) to fall between 8% and 9% for the second quarter and between 11% and 13% for the full year. Boeing Co fell -0.96%, with workers expected to go on strike on 1 August at three plants in the St. Louis area after they voted to reject a contract offer from the plane maker. The broader S&P500 edged +0.13% higher, with Energy (up +3.71%) leading eight of the eleven primary sectors higher. Consumer Discretionary (down -0.85%) and Information Technology (-0.61%) were the worst performing primary sectors overnight. Tesla Inc fell -1.40% after the electric vehicle maker disclosed in its latest first quarter filing that it received a second subpoena from the Securities and Exchange Commission (SEC) asking the company to provide information on its “governance processes around compliance with the SEC settlement” related to Chief Executive Elon Musk’s 2018 tweet about taking the company private at US$420 a share. The Nasdaq fell -0.43%, Amazon.com Inc (down -1.05%), Google-parent Alphabet Inc (0.14%) and Microsoft Corp (-0.59%) all a touch weaker ahead of their results tonight AEST. The small capitalisation Russell 2000 rose +0.60%. All of the benchmark indices remain on track for their best monthly performance calendar year-to-date.
US equity markets retreated on Friday (22 July), with a soft second quarter result from Snap Inc (down -39.08%) – including its weakest ever quarterly sales growth as a public company - after the close of last Thursday’s (21 July) session rattled investors in social media and advertising technology companies - Dow fell -138-points or -0.43%, The broader S&P500 lost -0.93% to 3,961.63, unwinding an earlier rally that saw the index briefly climb above >4,000 for the first time since 9 June. Communication Services (down -4.34%) and Information Technology (-1.38%) were the worst performing primary sectors and led eight of the eleven primary sectors lower, while more defensive sectors outperformed. Utilities rose +1.37%, Real Estate +0.79% and Consumer Staples +0.69%. The Nasdaq dropped -1.87% ahead of a big week of earnings for the technology sector. Meta Platforms Inc fell -7.59% and Alphabet Inc Inc -5.81%, weighed down by Snap’s result. The small capitalisation Russell 2000 lost -0.49%.
US equity markets climbed to their best levels in six weeks as some solid corporate earnings releases bolstered sentiment (albeit there were some soft results after the closing bell) and investors continued to pivot back towards the technology sector. Investors also largely shrugged off news that President Biden had contracted COVID - Dow gained +162-points or +0.51%. The broader S&P500 rose +0.99%, with Consumer Discretionary (+2.25%) among the best performing primary sectors for a third straight session and leading nine of the eleven primary sectors higher. Energy (down -1.69%) was the worst performing primary sector overnight. Tesla Inc jumped +9.78%, climbing for a seventh straight session after reporting impressive second quarter earnings against the backdrop of a challenging operating environment (that included COVID-related lockdowns in China that constrained production) after the closing bell of the previous session. Ford Motor Co rose +2.2% after Bloomberg reported that the automaker plans to cut thousands of workers to give it a leg up in the race to win a bigger share of the market for electric vehicles. United Airlines Holdings Inc fell -10.17% after falling short of Wall Street estimates for the second quarter after the close of Wednesday’s (20 July) session. The Nasdaq outperformed for a third consecutive session, rising +1.36%. It marked the first time since late May that the technology-centric index has advanced by 1% or more for three consecutive sessions. Meta Platforms Inc fell over >4.5% in after hours trading (after edging +0.04% higher in regular trading) The small capitalisation Russell 2000 added +0.48%.
Michele Bullock has suggested that the real neutral rate is one to one and a half percent.
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US equity markets advanced, consolidating the strong gains of the previous session as “growth” sectors outperformed - Dow added +48-points or +0.15%, Walt Disney Co gained +3.75%, tracking Netflix Inc (up +7.35%) higher after the streaming giant forecast a return to customer growth during the third quarter after the close of the previous session, while posting a smaller-than-forecast -1M drop in subscribers in the second quarter. The broader S&P500 gained +0.59%, with Consumer Discretionary (+1.77%), Information Technology (+1.56%), Energy (+1.02%) and Communication Services (+1.01%) all rising over >1% to lead seven of the eleven primary sectors higher. More defensive sectors underperformed, with Utilities down -1.36% and Health Care -1.06%. Carnival Corporation fell over >8.5% in extended trading (following a +7.05% advance in the regular session) after the cruise operator announced it intends to sell at least US$1B in fresh stock, with underwriter Goldman Sachs potentially selling up to US$150M more. The company said it intends to use the proceeds for "general corporate purposes, which could include addressing 2023 debt maturities." The Nasdaq +1.56% to log its fourth positive session in five, with technology megacaps Amazon.com Inc and Microsoft Corp gaining +3.86% and +1.06% respectively. The small capitalisation Russell 2000 rose +1.59%.
US equity markets rallied strongly overnight following some str0ng corporate earnings releases - Dow rallied +754-points or +2.43%, the largest single session gain since 24 June. However, International Business Machines (IBM) Corp fell -5.25% after the software giant trimmed its 2022 free cash flow guidance after the releasing its second quarter result after close of the previous session. The broader S&P500 gained +2.76%, with Communication Services (up +3.63%), Industrials (+3.58%), Energy (+3.16%), Materials (+3.11%), Consumer Discretionary (+3.09%), Information Technology (+3.08%) and Financials (+3.07%) all gaining over >3% to lead al eleven primary sectors higher. The S&P500 has rebounded ~7.4% from its 16 June closing low. The Nasdaq jumped +3.07%, with Apple Inc (+2.67%) and Google parent Alphabet Inc (+4.29%) rebounding solidly. All three major averages are above their 50-day moving averages for the first time since April. The Russell 2000 soared +3.50%, marking the strongest daily advance for the small capitalisation index since 6 January, 2021.
US equity markets faded in the closing couple of hours of the session, unwinding an earlier rally after Bloomberg reported that Apple Inc (down -2.06%) plans to slow hiring and spending growth in some divisions next year in anticipation of a potential economic downturn - Dow fell -216-points or -0.69%, unwinding an earlier rally of as much as +356-points. Boeing Co slipped -0.01% finished marginally despite the aerospace and defence giant confirming that Delta Air Lines Inc (up +3.49%) would order 100 of its 737-10 jets as the air carrier modernizes its single-aisle fleet. The broader S&P500 lost -0.84%, with the more defensive Health Care (down -2.15%) and Utilities (-1.40%) leading eight of the eleven primary sectors lower. Energy was the leading primary sector overnight with a +1.96% advance. Tesla Inc edged +0.2% higher after Deutsche Bank added the company to its short-term buy list, citing the potential for the electric vehicle maker to exceed Wall Street expectations when it reports quarterly earnings on Wednesday night AEST (20 July). The Nasdaq -0.84%. Google parent Alphabet Inc fell -2.46%, with the internet giant’s 20-for-1 stock split that was first announced on 1 February taking effect after the close of last Friday’s (15 July) session. The small capitalisation Russell 2000 eased -0.34%.
US equity markets rebounded strongly on Friday (15 July) to cap another tumultuous week, with both the S&P 500 and the Dow both snapping five-day losing streaks following a brace of solid economic data and corporate earnings releases - Dow rallied +658-points or +2.15%, UnitedHealth Group Inc (up 5.84%), JPMorgan Chase & Co (+4.58%) and American Express Co (+4.40%). The broader S&P500 +1.92%, with Financials (up +3.51%) leading all eleven primary sectors higher. The Nasdaq +1.79%. Meta Platforms Inc (+4.21%), Salesforce Inc (+3.94%)and Amazon.com Inc (+2.64%). The small capitalisation Russell 2000 jumped +2.16%. For the week, the Dow booked a small weekly loss of -0.16%, while the S&P 500 fell -0.93% and the Nasdaq -1.57%.
Morgans Equity Strategists Andrew Tang and Tom Sartor preview this upcoming Reporting Season. Key themes to watch include cost inflation, FY23 earnings trends, quality premium, short selling, and positioning in resources.
Morgans Clients can download the full Playbook here: https://morgans.com.au/Blog/2022/July/Reporting-Season-Playbook-2H22
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US equity markets retreated but settled well of their session lows, with the second quarter bank earnings season kicking off and as the stronger-than-expected consumer price inflation (CPI) report released a day earlier continued to reverberate - Dow fell -143-points or -0.46%, recovering from a steeper decline of -628-points. UnitedHealth Group Inc added +0.24% ahead of the release of the company’s quarterly result tonight AEST. The broader S&P500 -0.30%, extending losses into a fifth consecutive session. Financials (down -1.92%), Energy (-1.90%) and Materials (-1.89%) all fell ~1.9% to lead eight of the eleven primary sectors lower. Information Technology sat atop the primary sector leaderboard overnight with a +0.93% gain. The Nasdaq inched +0.03% higher after a mixed performance from the big technology names, with Apple Inc up +2.05% and chipmaker Nvidia Corp +1.37%. Meta Platforms Inc fell -3.33% and Salesforce Inc -1.50%. Both the S&P500 and Nasdaq rebounded from earlier session declines of over >2%. The small capitalisation Russell 2000 lost -1.07%.
US equity markets retreated as investors digested the June consumer inflation report, with the Dow and S&P500 extending declines into a fourth consecutive session - Dow fell -209-points or -0.67%, paring a morning session decline of over >450-points. Boeing Co (down -2.17%), Walgreens Boots Alliance Inc (-1.92%) and UnitedHealth Group (-2.56%) were among the key drags on the index. The broader S&P500 lost -0.45%, recovering from an earlier fall of over >1.5%. Industrials (down -1.20%) and Communication Services (-1.07%) both fell over >1% to lead nine of the eleven primary sectors lower. Consumer Discretionary (+0.86%) and Consumer Staples (+0.01%) were the only primary sector to settle in positive territory overnight. The Nasdaq settled -0.15% lower having fallen over >2% earlier in the session. The small capitalisation Russell 2000 slipped -0.12%.
The FED needs to slow employment growth from 372,00 per month to 100,000 per month. This will likely lead to another 75 basis point rate hike in July 2022.
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US equity markets weaker ahead of tonight’s AEST June consumer price inflation figures, with losses accelerating in the final hour of trading - Dow fell -193-points or -0.62%. The broader S&P500 lost -0.92%, with the Energy sector (down -2.03%) leading all eleven primary sectors lower. The Nasdaq -0.95%. The small capitalisation Russell 2000 eased -0.22%.
US equity markets retreated following news that China is imposing more COVID-related restrictions and as second quarter corporate earnings and inflation data later this week looms large - Dow fell -164-points or -0.52% after briefly popping into positive territory in early afternoon trade. Walt Disney Co (down -2.32%) and Nike Inc (-2.61%) were at the forefront of the 30-stock indice’s decline. The broader S&P500 shed -1.15%, with the Communication Services (down -2.80%) and Consumer Discretionary (2.76%) both down over >2.5% to lead nine of the eleven primary sectors higher. The more defensive Utilities (up +0.64%) and Real Estate (+0.01%) sectors were the only primary sectors to advance. Casino operators with operations in Macau were under pressure after Macau city officials said casinos there would be shut down for a week to fight a COVID-19 surge. Wynn Resorts Ltd fell -6.46%, Las Vegas Sands Corp, and Melco Resorts & Entertainment Ltd -9.64%. The Nasdaq dropped -2.26%. Apple Inc and Tesla Inc – whose combined market capitalisation of just over >US$3 trillion accounts for over >16% of the Nasdaq’s aggregate market capitalisation – fell -1.5% and -6.6% respectively. Amazon.com Inc fell -3.28% ahead of its annual northern summer savings event Amazon Prime Day, kicking off tonight AEST. Twitter Inc tumbled -11.3% as the fallout continued from Elon Musk’s announcement after the closing bell last Friday (8 July) that he was terminating his deal to buy the social media company, citing contractual breaches. The small capitalisation Russell 2000 lost -2.11%.
Equity Strategist Tom Sartor updates us on commodities in the Australian market, with very healthy prices currently, possible inflation risks, as well as what could be next for the sector.
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We adjust forecasts across our Auto coverage, with broad downgrades driven primarily by an expectation of weakening consumer demand and relatively limited near-term vehicle supply improvement in Australia.
See sector note here: https://morgans.com.au/Blog/2022/July/Auto-And-Parts-CY22-YTD
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US equity markets ended the week on a mixed note as investors pondered the implications of another strong monthly jobs report - Dow slipped -46-points or -0.15%, The broader S&P500 dipped -0.08%, snapping a four session winning streak (the indice’s best winning stretch since late March), with the Materials sector (down -1.00%) leading nine of the eleven primary sectors lower. Healthcare (up +0.27%) and Information Technology (+0.07%) were the only two primary sectors to advance. The Nasdaq added +0.12%, extending the technology-centric index’s rebound into a fifth straight session, its longest winning streak since November. Tesla Inc rose +2.27% after the company shipped a record 78,906 vehicles in China in June, according to China Passenger Car Association data. Tesla’s best month before that was December 2021, when wholesale deliveries topped 70,800. Tesla shipped ~113K vehicles from its Shanghai plant in the second quarter, down ~38% from 182,174 in the first quarter and illustrating the impact COVID-19 has had on recent results. Year to date, Tesla’s share of Chinese wholesale new energy vehicles (NEV) shipments - a category that includes plug-in hybrids and battery-electric vehicles - is down to ~12% from 15% in the first half of 2021. Twitter Inc fell -5.1% (and was down a further -4.81% in extended trading) following a Washington Post report that reported that Elon Musk was planning to back out of his takeover offer for the social media company. Confirmation came after the market close in a filing reporting that the Tesla Chief Executive’s lawyers had sent a letter to Twitter terminating the deal, saying the social media company had “not complied with its contractual obligation” and asserting that it breached terms of the agreement by refusing to provide detailed information about fake accounts on the site. The small capitalisation Russell 2000 dipped -0.01%.
We preview the FY22 results of the five gaming stocks in our universe that report in August.
Read our full Gaming sector preview here: https://morgans.com.au/Blog/2022/July/Gaming-FY22-Reporting-Season-Preview
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US equity markets advanced, with the S&P 500 index and Nasdaq Composite booking a fourth day in a row of gains - their longest unbroken advance since March – ahead of tonight’s June jobs report - Dow gained +347-points or +1.12%, The broader S&P500 +1.50%, with Energy (up +3.51%) returning to the top of the primary sector leaderboard. Chevron Corp rose +1.95%, Exxon Mobil Corp +3.19% and Occidental Petroleum Corp +3.99%. Consumer Discretionary (up +2.48%) and Information Technology (+2.06%) both rose over >2%, with ten of the eleven primary sectors advancing. Utilities (down -0.10%) was the only primary sector to settle in the red. The Nasdaq rallied +2.28%. Chipmaker Micron Technology Inc (up +2.58%), Advanced Micro Devices Inc (+5.24%) and Nvidia Corp (+4.81%) traded strongly, buoyed by South Korea’s Samsung Electronics Co (+3.19%) posting its best April-June profit since 2018, driven by strong memory chip sales to server customers. The small capitalisation Russell 2000 gained +2.43%.
We make one new addition to the list this month, adding AGL Energy (ASX:AGL).
Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.
Access Morgans Best Ideas for July 2022: https://morgans.com.au/Blog/2022/July/Best-Ideas-July-2022
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US equity markets settled with modest gains as investors digested the minutes from the Federal Reserve’s mid-June monetary policy meeting that saw central bank officials reiterate their resolve to aggressively tackle inflation - Dow added +70-points or +0.23%, The broader S&P500 gained +0.36%, with Utilities (up +1.01%) and Information Technology (+0.88%) leading eight of the eleven primary sectors higher. Energy dropped -1.74% to sit at the foot of the primary sector leaderboard for a second straight session. The Nasdaq rose +0.35%. Microsoft Corp rose +1.28% despite the Associated Press reporting that its acquisition of game publisher Activision Blizzard Inc (down -0.63%) will face antitrust scrutiny in the U.K., after regulators said Wednesday (6 July) they opened an initial inquiry into the US$69B deal. The small capitalisation Russell 2000 lost -0.79%.
The Fed and the RBA are pulling Pandemic support as rapidly as they dare.
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US equity markets settled mostly firmer after resuming trading following the Independence Day holiday long weekend, staging a sharp intra-day rebound - Dow fell -129-points or 0.42%, paring an earlier decline of more than >700-points. The broader S&P500 edged +0.16% higher, rebounding from an earlier slump of over >2%. Communication Services (up +2.66%) and Consumer Discretionary (+2.28%) both gained over >2%, while Information Technology rose +1.24% to be the only three primary sectors to advance. Energy dropped -4.01% to sit at the foot of the primary sector leaderboard, with Chevron Corp down -2%. Ford Motor Co fell -1.06% despite the automaker reporting a +31.5% year-on-year jump in second quarter sales (to 152,262 vehicles), bucking the -11% decline in overall industry sales, as Ford's U.S. market share improved to 12.9%. The Nasdaq rallied +1.75% after opening the session sharply lower, with Facebook parent Meta Platforms Inc gaining +5.10%, Amazon.com Inc +3.60% and Google-parent Alphabet Inc +4.16%. The small capitalisation Russell 2000 rose +0.79%. There were reports that the Biden administration may roll back tariffs imposed on some Chinese goods, potentially helping to crimp inflation imported into the U.S.
Oil prices logged modest losses - WTI lost -US$0.32c or -0.3% to US$108.11/barrel. Brent eased -US$0.35c or -0.3% to US$111.28/barrel. In broader energy market moves, natural gas prices in Europe surged on Monday (4 July) to their most expensive since the early stages of Russia’s invasion of Ukraine as proposed strikes in Norway increased fears about inadequate supply. August natural gas futures on the Dutch-based TTF trading hub at one point rose more than >10% to change hands above >€160 a megawatt-hour. A year ago the product traded for €22.4. The ICE U.K. Natural Gas contract jumped +20% to 289.29 pence per British thermal unit , compared to 93.12p per British thermal unit months ago. There were reports that industrial action by workers would see six Norwegian natural gas fields shut down over the next few days, potentially cutting the major exporter’s supply by 13%. Elsewhere, the head of Germany’s regulatory agency for energy, Federal Network Agency President Klaus Mueller, called on residents Saturday (2 July) to save energy and to prepare for winter, when use increases. Mr Mueller said families should start talking now about “whether every room needs to be set at its usual temperature in the winter - or whether some rooms can be a little colder.” Separately, German Economy Minister Robert Habeck said the country should be prepared to cut further Russian gas supplies as President Vladimir Putin adopts a conscious strategy of raising prices to undermine European unity, and warned utilities are at risk of cascading failures, which may require activating a legal clause that would allow them to pass on price increases outside of contract commitments. Mr Halbeck said Germany refrained from activating the measure for now because it would lead to an “immediate price explosion” for consumers. The government is working on an alternative, he said, without elaborating.
US equity markets advanced on the first day of the third quarter ahead of the 4 July holiday long weekend, with both the S&P500 and Nasdaq snapping a four-session losing streak - Dow rose +322-points or +1.05%. The broader S&P500 gained +1.06%, with Utilities (up +2.48%) leading all eleven primary sectors higher. General Motors Co rose +1.35% despite the automaker warning of a second-quarter earnings shortfall, as vehicle wholesale volumes were hurt by the timing of semiconductor shipments and other supply chain disruptions. GM expects net income for the quarter to 30 June to be between US$1.6B and US$1.9B, well below current consensus analyst forecasts of US$2.46B. However, the company affirmed its full-year outlook (for net income of US$9.6B to US$11.2B) as the supply disruptions are expected to be temporary. The Nasdaq +0.9%. Meta Platforms Inc closed down -0.76% following news that it’s cutting its hiring plans for engineers as it prepares for a potential downturn. Chief Executive Officer (CEO) Mark Zuckerberg said “one of the worst downturns we’ve seen in recent history” is ahead, according to a recording heard by Reuters. Tesla Inc (up +1.24%) disclosed on Saturday (2 July) that sales of cars and SUVs fell -18% in the second quarter to 254,695 (versus consensus expectations for 256,250), snapping a two year streak of gains and marking their lowest quarterly level since last the third quarter of 2021 as supply-chain issues and pandemic restrictions in China hobbled production of its electric vehicles. Tesla delivered 310,048 vehicles in the first quarter of 2022 and 201,250 vehicles in the second quarter of 2021. Tesla is slated to release its second quarter result on 20 July. Micron Technology Inc fell -2.95% after the chipmaker provided a weak fourth quarter outlook after the closing bell of last Thursday’s (30 June) session. The small capitalisation Russell 2000 lost -0.49%. Retailer Kohl’s Corp slumped -19.63% after confirming a CNBC report that it had ceased talks with Franchise Group, saying that the retail environment has worsened since bidding began. Kohl’s also cut its outlook for the current quarter. US equity and bond markets are CLOSED tonight AEST for the Independence Day holiday.
US equity markets weaker, with the S&P500 cementing its worst first half in more than 50 years - Dow -351-points or -1.13%, with Salesforce Inc (down -3.26%) and Walgreens Boots Alliance Inc (-7.27%) the two worst performing index components overnight. The broader S&P500 fell for a forth consecutive session, down -0.63%. Energy (down -2.05%), Communication Services (-1.56%) and Consumer Discretionary (-1.54%) all fell over >1.5% to lead eight of the eleven primary sectors lower. More defensive sectors outperformed for a second straight session, with Utilities up +1.10%. Carnival Corp fell -2.48%, a day after tumbling -14.13% after Morgan Stanley cut its price target on the stock roughly in half and said it could potentially go to zero in the face of another demand shock. Royal Caribbean Cruises Ltd and Norwegian Cruise Line Holdings Ltd fell -3.08% and -3.89% respectively. American Airlines Group Inc (down -2.69%) has offered its pilots pay raises totalling nearly 17% under a new contract, according to an internal video seen by CNBC. The latest proposal to the pilots’ union, the Allied Pilots Association, comes less than a week after rival United Airlines Holdings Inc (-0.73%) and its pilots’ union reached a tentative agreement that includes more than 14% in total raises over the next 18 months. The technology-centric Nasdaq dropped -1.85%. Facebook-parent Meta Platforms Inc (down -1.64%) has warned employees to expect a tough second half of the year as the company continues to weather challenges related to its core online advertising business amid a weakening economy. Meta chief product officer Chris Cox detailed the company’s financial dilemma in an internal memo that detailed key areas where the social media giant plans to invest, a spokesperson confirmed to CNBC. The memo was previously reported by Reuters. The small capitalisation Russell 2000 lost -0.66%. High-end furniture chain RH fell -10.56% after it issued a profit warning for the full year.
Morgans Co-Head of Research and Senior Analyst Alexander Mees gives us an update on May's retail sales in Australia. As well as stock analysis on Collins Foods (ASX:CKF) and Dominos Pizza (ASX:DMP).
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US slowdown, Australian boom.
Chicago FED National Activity Index: https://www.chicagofed.org/research/data/cfnai/current-data
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US equity markets retreated following some weak consumer confidence data, and as oil prices climbed for a third day - Dow down -491-points or -1.56%, The broader S&P500 shed -2.01%, with Consumer Discretionary (down -4.03%) and Information Technology (-3.01%) leading ten of the eleven primary sectors lower. Energy sat atop the primary sector leaderboard for a second consecutive session with a +2.70% gain. Warren Buffett's Berkshire Hathaway Inc said it had acquired an additional 794,389 shares in Occidental Petroleum Corp (up +4.77%), lifting the conglomerate’s stake to ~16.4%. The Nasdaq dropped -2.98%. Qualcomm Inc (up +3.48%) bucked the weaker trend after a prominent analyst (Ming-Chi Kuo at TF International Securities) said Apple Inc (-2.98%) is likely to use the company’s 5G modems for its 2023 iPhones rather that relying on technology built in-house. All three benchmark indices booked their worst daily percentage declines since 16 June, according to Dow Jones Market Data. The small capitalisation Russell 2000 lost -0.49%.
US equity markets settled with modest losses to open the new week following a strong rebound last Friday (24 June), shrugging off some better-than-expected economic data - Dow eased -62-points or -0.20%. Boeing Co fell 1.99% following a pair of reports appearing to question the safety of 737 MAX jets, including by Australia’s taxpayer-funded broadcaster that cited “at least six mid-air emergencies” and various other problems experienced by MAX jets since the planes were recertified to fly. The problems were pulled from publicly available databases maintained by the U.S. government. The broader S&P500 lost -0.30%, with Consumer Discretionary (down -1.09%) and Communication Services (-1.05%) leading the decline. Energy returned to the top of the primary sector leaderboard with a +2.78% rally. The S&P 500 is up more than >7% since hitting a bear-market low in mid-June, although the benchmark is down 19% from its high and 18% lower since the year began. The Nasdaq fell -0.72%. The small capitalisation Russell 2000 added +0.34%.
Morgans Research Analyst Max Vickerson provides an overview of the business fundamentals for Tesla.
Disclaimer: Morgans does not formally cover Tesla and does not offer an investment rating. This presentation is for informative purposes only.
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US equity markets rebounded strongly, with all three benchmark indices snapping three-week losing streaks as investors reassessed the expected path of Federal Reserve interest-rate hikes - Dow rallied +823-points or +2.68% to 31,500.68, climbing back above >31,000 and recording its largest daily percentage gain since 4 May. FedEx Corp gained +7.16% after the global delivery and logistics company reported fiscal fourth-quarter earnings that matched Wall Street’s expectations and issued guidance for the fiscal year that topped projections after the close of last Thursday’s (23 June session. The broader S&P500 gained +3.06%, logging its best daily percentage gain since 18 May, 2020. Materials (up +3.98%), Communication Services (+3.94%), Financials (+3.80%), Consumer Discretionary (+3.74%) and Information Technology (+3.57%) all rallying over >3.5% and leading all eleven primary sectors higher. Shares in the biggest U.S. banks climbed on Friday (24 June) a day after it was confirmed they had all passed the Federal Reserve's annual health check. JPMorgan Chase & Co rose +2.98%, Citigroup Inc +3.26% and Wells Fargo & Co +7.55. The Nasdaq jumped +3.34%, the technology-centric indice’s largest daily percentage gain since 13 May. The small capitalisation Russell 2000 rallied +3.16%.
US equity markets advanced after Federal Reserve Chairman Jerome Powell concluded a second day of congressional testimony with a vow to battle inflation, even if it risks a recession - Dow up +194-points or +0.64% and settling near its session highs at 30,677.36. The broader S&P500 +0.95%, with more defensive sectors like Utilities (up +2.35%), Health Care (+2.22%) and Real Estate (+2.01%) atop the primary sector leaderboard for a second consecutive session. Energy (down -3.74%) was the worst performing primary sector for a second day running. Occidental Petroleum Corp added +0.57% as Berkshire Hathaway Chief Executive Officer (CEO) Warren Buffett increased his firm’s stake in the oil-and-gas company by 9.6M shares or US$529M in June, according to regulatory filings cited by The Wall Street Journal, lifting the holding to ~16%. The Nasdaq +1.62%. The small capitalisation Russell 2000 rose +1.27%.
US equity markets logged modest losses, unwinding earlier gains in the final hour of trading as investors digested Federal Reserve Chair Jerome Powell’s latest congressional testimony - Dow eased -47-points or 0.15%. Dow Inc sank -4.75% to US$52.34 and its lowest levels since early 2021 after analysts at Credit Suisse cut their rating on the specialty chemicals company to “Underperform” (reducing the target price to US$49), citing concerns that the business could continue to struggle as supply chains normalise. The broader S&P500 slipped -0.13%, with Energy (down (-4.19%) leading seven of the eleven primary sectors lower. Real Estate (up +1.55%) and Health Care (+1.42%) were the best performing primary sectors. The Fed release its latest bank stress test results tonight AEST. The Nasdaq -0.15%. The small capitalisation Russell 2000 lost -0.22%.
US equity markets resumed trading following the holiday long weekend on the front foot, with all three benchmark indices rallying over >2% following a strong session for both value and growth stocks as risk assets bounced back - Dow gained +641-points or +2.15%, The broader S&P500 rose +2.45% to log its best single session advance month-to-date and after logging its worst weekly decline since 2020 last week, with the Energy sector (up +5.14%) returning to the top of the primary sector leaderboard and leading all eleven primary sectors at least +1.5% higher. Exxon Mobil Corp gained +6.22%, buoyed by an upgrade to “Outperform” from “Neutral” from Credit Suisse. Last night’s session marked the first time since May that both S&P 500 Value and S&P 500 Growth indexes gained more than >2% on the same day, and only the third time since 2020 that both indexes rallied as much. 441 stocks in the S&P500 advanced. Tesla Inc rallied +9.35% after Chief Executive Officer (CEO) Elon Musk told Bloomberg that job cuts at the company would result in a reduction of as much as 3.5% of the electric vehicle maker’s total head count. Twitter Inc rose +3.07% after Mr Musk told an audience at the Qatar Economic Forum in Doha that he would be “driving the product” at Twitter, while reiterating that he does not necessarily want to serve as CEO after he completes the acquisition of the social media company. Kellogg Co rose +1.95% after the food company announced a plan to split into three businesses - "Global Snacking Co", which will represent ~US$11.4B in sales and include international cereal and noodles, North American frozen breakfast, as well as snacks; "North America Cereal Co", which represents ~US$2.4B in sales and includes U.S., Canada, and Caribbean cereals; and "Plant Co", a business of ~US$340M anchored by the MorningStar Farms brand and focused on plant-based foods. The Nasdaq rallied +2.51%, with Goggle-parent Alphabet Inc rising +3.85%, Apple Inc +3.28% and Amazon.com Inc +2.32%. Chipmakers also traded strongly, with Advanced Micro Devices Inc climbing +2.72%. The small capitalisation Russell 2000 rose +1.70%.
The ASX 200 is the most undervalued it's been since 2012 and 2013. It needs time to base. A strong rally is likely by the end of 2022.
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AUD - buying ~69.51 US cents. The Reserve Bank of Australia’s (RBA) release the minutes from its June monetary policy meeting that saw the central bank hike rates +50-basis points, while RBA Governor Philip is scheduled to deliver a speech titled “Economic Outlook and Monetary Policy”. The Bank of Japan (BoJ) release the minutes of their June monetary policy meeting that saw the central bank stand firm on its ultra-loose monetary policy prescription last Friday (17 June). Elsewhere, there were reports this morning that Qantas Airways has lifted the passenger mask mandate for non-stop, outbound flights to the US and UK.
Tom Sartor, Equity Strategist at Morgans takes at look at the current volatile market, and what that means for commodities.
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PeopleIN is the largest ASX-listed talent solutions company in Australasia. It connects over 15,000 people with roles every year, and is uniquely structured to provide deeply specialist talent solutions at scale, across a broad range of sectors.
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US equity markets closed out a turbulent week on mixed note, leaving both the Dow and S&P500 nursing their worst weekly performance sine 2020 - Dow eased -38-points or -0.13% to 29,888.78 after sliding below <30,000 for the first time January 2021 last Thursday (16 June). American Express Co gained +4.86%, buoyed by an upgrade from analysts at Baird who believe that macroeconomic concerns are “more than priced into” a number of financial stocks. The broader S&P500 added +0.22%, Communication Services (up +1.32%), Consumer Discretionary (+1.22%) and Information Technology (+0.99%) leading six of the eleven primary sectors higher. Energy (down -5.57%) was the worst performing primary sector for a third straight session. Travel stocks rebounded, with Carnival Corp (up +9.71%) and Norwegian Cruise Line Holdings Ltd (+10.12%) jumping ~10% apiece, while American Airlines Group Inc jumped +6.41% and Delta Air Lines Inc +2.30%. The International Air Transport Association (IATA) host their Annual General Meeting (AGM) in Doha tonight AEST. The Nasdaq rallied +1.43%. Amazon.com Inc rose +2.47%, while Apple Inc (+1.15%), Nvidia Corp (+1.79%), Tesla Inc (+1.72%) and Netflix Inc (+1.25%) all added more than >1%. The small capitalisation Russell 2000 gained +0.96%. Friday (17 June) was a “quadruple witching” session, the simultaneous expiration of stock index futures, single-stock futures, stock options and stock index options.
Senior Analyst Adrian Prendergast gives an update on the resources sector, including his key stocks analysis.
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US equity markets fell sharply, more than erasing the bounce recorded the previous session following the Federal Reserve’s largest rate hike since 1994, as concerns about the economic outlook returned to centre stage - Dow dropped -741-points or -2.4% to 29,927.07, sliding below <30,000 for the first time since January 2021. Home Depot Inc (down -2.24%), Intel Corp (-3.39%), Walgreens Boots Alliance Inc (-2.60%), JPMorgan Chase & Co (-1.72%), 3M Co (-2.52%), and American Express Co (-5.96%) hit fresh 52-week lows The broader S&P500 shed -3.3% to 3,666.77, with the Energy sector (down -5.58%) leading the downside for a second straight session. Consumer Discretionary (down -4.76%) and Information Technology (-4.11%) both declined over >4%, with all eleven primary sectors closing in the red. Tesla Inc fell -8.54% after the electric vehicle maker hiked prices again on all its US models as it battles rising aluminium costs and the global supply chain crisis. The Dow and S&P 500 booked their lowest settlements since December 2020. The technology-centric Nasdaq slumped -4.1% to log its lowest close since September 2020. Amazon.com Inc (-3.72%), Apple Inc (-3.97%) and Netflix Inc (-3.75%) all sank nearly 4%. Tesla Chief Executive Officer Elon Musk held a question and answer session with Twitter Inc (down -1.66%) staff, pitching a vision of a one-billion-user platform (versus the current user base of ~229M) but providing no fresh updates on his US$44B deal. The small capitalisation Russell 2000 lost -4.70%.
The Federal Reserve hikes rates by 75 basis points and tells us they saved the US economy from recession.
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A late rally saw the Dow and S&P500 snap a five session skid after a choppy session as investors digested the latest monetary policy pronouncements from the Federal Reserve and comments from central bank Chair Jerome Powell - Dow up +304-points or +1.00%, briefly climbing as much as +600-points. The broader S&P500 +1.46%, Consumer Discretionary (up +3.02%) led ten of the eleven primary sectors higher. Energy (down -2.12%) was the only primary sector to close in the red. The Nasdaq rebounded +2.49%. Apple Inc rose 2.01% after it announced Major League Soccer would be exclusively available on Apple TV starting in 2023, in a 10-year deal estimated to be worth US$250M. All three indexes booked their best daily percentage gain since 2 June, according to Dow Jones Market Data. The small capitalisation Russell 2000 rose +1.36%.
Morgans Research Analyst Max Vickerson gives an update on the electricity markets in Australia, including his key stocks analysis.
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The Dow and S&P500 extended declines into a fifth straight session, with stocks hitting their session lows in the closing hour of trading ahead of the conclusion of the Federal Reserve’s latest two day monetary policy meeting - Dow lost -152-points or -0.50% to 30,364.83, its lowest settlement since 1 February, 2021. The index had climbed as much as +170-points earlier in the session and dropped as much -370-points. FedEx Corp rallied +14.41% (leading the Dow Transports index over >2% higher) to log its best day since 1986 after the economic bellwether announced that it would raise its quarterly dividend by more than >50% and add three new directors to its board. The broader S&P500 eased -0.38% to 3,735.48, logging its lowest settlement since 29 January, 2021 a day after entering official bear market territory. The S&P 500 has dropped -10.2% over the past five trading days, the worst percentage decline over that time span since March 2020, when the U.S. was first confronting the coronavirus pandemic, according to Dow Jones Market Data. The broader index now sits 22.1% below its 3 January record closing high. Utilities (down -2.58%) led nine of the eleven primary sectors lower. Information Technology (up +0.62%) and Energy (+0.07%) were the only two primary sectors to advance. The Nasdaq edged +0.18% higher. Oracle Corp rallied +10.41% after the Silicon Valley giant posted a better-than-expected fiscal fourth quarter result after the closing bell of the previous session. The small capitalisation Russell 2000 lost -0.39%.
US equity markets logged a second consecutive session of steep losses in the wake of last Friday’s (10 June) blistering inflation report, with the benchmark indices touching their session lows in the closing 30-minutes of trading after the a Wall Street Journal report suggested the Federal Reserve would consider raising rates by +75 basis points at the conclusion of their two day monetary policy meeting later this week - Dow tumbled -876-points or -2.79%, dropping as much as -1,019 points at one point in the session. Boeing Co (down -8.77%), Salesforce Inc (-6.96%) and American Express Co (-5.26%) were among the major drags on the Dow. The broader S&P500 shed -3.88% to 3,749.63, the lowest close since March 2021. Only five index constituents closed the session in the positive territory. The index settled over >21% below the 3 January record close (3837.248) and entered official bear market territory. The last time the S&P500 was in a bear market was in March 2020 at the onset of the pandemic. Energy (down -5.13%) led all eleven primary sectors lower, with all sectors declining over >2%. Travel stocks declined despite the Biden administration announced that it will drop the COVID-19 testing requirement for inbound air travellers from abroad from Sunday (12 June), ending one of the longest-running travel restrictions of the pandemic. United Airlines Holdings Inc fell -10.06% and Delta Air Lines Inc -8.29%, while cruise operators Carnival Corporation and Norwegian Cruise Line Holdings fell -10.32% and -12.23% respectively. The Nasdaq slumped -4.68%, extending losses for the technology-centric index during this current sell-off to more than >33%. Netflix Inc (down -7.24%), Nvidia Corp (-7.82%) and Tesla Inc (-7.10%) all fell over >7%. Tesla proposed a 3-for-1 stock split in its proxy statement filed after the closing bell last Friday (10 June), saying it would provide more flexibility for its employees managing their equity and serve as a recruiting tool. The split would be Tesla’s second in as many years, with the electric vehicle maker undertaking a 5-for-1 stock split in August 2020. Tesla is slated to hold its annual shareholder meeting on 4 August. Elsewhere, Goldman Sachs downgraded Netflix last Friday (10 June) to a “Sell” from “Neutral” and cut its price target to US$186 from US$265, citing “concerns around the impact of a consumer recession as well as heightened levels of competition on demand trends”. The small capitalisation Russell 2000 slumped -4.76%.
US equity markets fell sharply ahead of tonight’s AEST consumer price inflation (CPI) figures for May - Dow fell -638-points or -1.94%, The broader S&P500 shed -2.38%, with Communication Services (down -2.75%), Information Technology (-2.72%) and Financials (-2.61%) all declining over >2.5% to lead all eleven primary sectors lower. Tesla Inc fell -0.89% despite UBS upgrading the electric vehicle leader to “buy” from “neutral”, while leaving the price target of US$1,100 unchanged. The Nasdaq dropped -2.75%. All three benchmark indices booked their worst daily percentage drops since 18 May, according to FactSet data. Facebook parent Meta Platforms (down -6.43%) began trading under its new ticker, META, completing a rebranding effort. Advanced Micro Devices Inc (down -3.04%) hosted an Investor Day, with Chief Executive Lisa Su identifying Artificial Intelligence as the chipmaker’s “single highest growth opportunity” over the next few years. With the recent acquisition of Pensando, Ms Su said that AMD now has leading technology in data processing units (DPUs) chips specifically designed to process data on a large scale, adding that the company plans to be the “partner of choice in the data centre over the next three to four years.” Ms Su also released details of the company’s financial model over the next three to four years. The company is predicting annual revenue growth of ~20% annualised, free cash flow margins of more than >25%, and gross margins of more than >57%. AMD just broke 50% gross margins a few quarters ago, while Intel Corp (down -2.96%) has struggled to keep its gross margins higher than 50%. The small capitalisation Russell 2000 lost -2.12%. Nutrien Ltd rose +1.06% after the world’s largest fertiliser company said it has plans to boost its fertiliser production capability as the world grapples with shaky supply from eastern Europe. The company said it will ramp up potash production capability to 18M tonnes by 2025, representing a 40% increase compared to 2020, citing “structural changes in global energy, agriculture and fertiliser markets”.
The Australian cash rate is rising with the US effective fed funds rate as rates “normalise” to remove extraordinary pandemic stimulus.
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US equity markets retreated in muted trading, snapping a two session winning streak as investors continued to eye Friday night’s AEST (10 June) consumer price inflation (CPI) figures for May - Dow down -269-points or -0.81%. Intel Corp fell -5.28% after management warned of weakening demand for semiconductors at an industry conference. Separately, Citi Research analysts cautioned that the company could pre-announce weaker-than-expected earnings for the second quarter. The broader S&P500 shed -1.08%, with Real Estate (down -2.43%) and Materials (-2.10%) leading ten of the eleven primary sectors lower. Energy (up +0.15%) sat atop the primary sector leaderboard for a second consecutive session and was the only primary sector to advance overnight. Exxon Mobil Corp rose +1.18% to a record closing high of US$104.59. Altria Group Inc shed -8.37% to US$49.49 after Morgan Stanley cut their recommendation the cigarette and heated tobacco seller to “Underweight” (lowering the price target to US$50 from US$54), citing inflation pressures and long-term competitive risks. Domino’s Pizza Inc slipped -0.33% to US$384.00, with analysts at CFRA downgrading the company to a “Hold” recommendation, but lifting their target price to US$410 (from US$400). The Nasdaq lost -0.73%. The small capitalisation Russell 2000 lost -1.49%. The US-listed shares of Alibaba Group Holdings jumped +14.67% as Chinese technology stocks more broadly enjoyed a strong session in Hong Kong yesterday (8 June), with sentiment buoyed a wave of videogame approvals from regulators in China. It potentially marked a sign of easing regulatory pressures for gaming stocks in particular and the Chinese technology sector at large.
US equity markets advanced, picking up steam late in the session and shaking off early weakness following a profit warning from retailer Target Corp before the opening bell - Dow up +264points or +0.8%, The broader S&P500 rose +0.95%, with Energy (up +3.14%) returning to the top of the primary sector leaderboard and leading ten of the eleven primary sectors higher. Exxon Mobil Corp gained +4.58% to $103.37, climbing above >US$100 per share for the first time since 2014 (buoyed by an upgrade from EvercoreISI). Consumer Discretionary (down -0.37%) was the only primary sector to close in the red. Target Corp fell -2.31% after the retailer announced a plan to reduce its excess inventory (including markdowns, cancelling orders and removing inventory, along with price hikes to offset higher fuel and transportation costs, and supply chain adjustments such as increased holding capacity near U.S. ports), and downwardly revised its operating-margin guidance. The Nasdaq +0.94%. Apple Inc rose +1.76% despite news that the company must change the connector on iPhones sold in Europe by 2024 after European Union (EU) countries and lawmakers agreed to a single charging port for mobile phones, tablets and cameras. The company introduced its new MacBook Air and MacBook Pro models a day earlier during the keynote address of its annual Worldwide Developers Conference (WWDC) and also launched Apple Pay Later, a buy-now-pay-later (BNPL) service with no interest fees, in partnership with Goldman Sachs Group. The small capitalisation Russell 2000 rallied +1.57%. In merger and acquisition (M&A) news, Kohl's Corp rallied +8.24% after news the department store chain entered exclusive talks with retail store operator Franchise Group Inc (+4.78%) over a potential sale that would value it at nearly US$8B.
US equity markets edged higher after a muted session as investors await key inflation figures later in the week - Dow inched +16-points or +0.05% higher, climbing as much as +336-points earlier in the session. The broader S&P500 added +0.31%, with Consumer Discretionary (up +1.03) and Communication Services (+0.98%) rebounding to lead eight of the eleven primary sectors higher. Energy dipped -0.11% after outperforming in recent sessions. The Nasdaq +0.40%. Amazon.com Inc’s 20-for-1 stock split took effect overnight, closing +1.99% higher at US$124.79 after closing at a pre-split adjusted US$2,447 last Friday (3 June). The last time Amazon’s stock traded below the four-digit level pre-split level was October 2017 Apple Inc (up +0.52%) introduced its new MacBook Air and MacBook Pro models during the keynote address of its annual Worldwide Developers Conference (WWDC) overnight. Both of the new Apple laptops will feature the company’s newly announced M2 custom chip. Twitter Inc fell -1.49% after Tesla Inc (up +1.60%) Chief Executive Officer (CEO) Elon Musk said in a letter that he could terminate the merger deal if the social-media company continues to refuse to provide the information he has requested regarding spam and fake accounts. Twitter responded in a statement that it “has and will continue to cooperatively share information” with Mr Musk. The small capitalisation Russell 2000 rose +0.36%. In merger and acquisition (M&A) news, budget carrier Spirit Airlines Inc rallied +7.04% after its bigger rival, JetBlue Airways, sweetened its offer to buy the company to US$31.50 per share (from US$30).
US equity markets retreated on Friday (3 June) after a stronger than expected employment report buttressed expectations of further interest rate hikes - Dow down -349-points or -1.05%, The broader S&P500 fell -1.63%, with Consumer Discretionary (down -2.85%), Information Technology (-2.48%) and Communication Services (-2.37%) all dropping over >2% lead ten of the eleven primary sectors lower on Friday (3 May). Energy (up +1.40%) was the only primary sector to advance. Tesla Inc fell -9.22% after Reuters reported, citing an internal email, that Chief Executive Officer (CEO) Elon Musk wants to cut 10% of jobs at the electric vehicle maker. According to Reuters’ report, Mr Musk also said in the email that he has a “super bad” feeling about the economy. Mr Musk’s comments followed similarly cautious comments from JPMorgan Chief Executive Officer (CEO) CEO Jamie Dimon earlier last week warning of an economic “hurricane” caused by the Federal Reserve and the war in Ukraine is brewing. American Airlines Group Inc fell -7.10% after the air carrier raised its revenue growth outlook (now expects second-quarter revenue to be up 11% to 13% from the same period in pre-pandemic 2019, compared with previous guidance of up 6% to 8%) but trimmed its capacity guidance (now expects available seat miles to be down 7% to 8% from 2019 levels versus previous expectations of a decline of 6% to 8%) and raised its fuel-cost estimate (average fuel price per gallon estimate was raised to US$3.92 to US$3.97 from US$3.59 to US$3.64, and the outlook for cost per available seat mile (CASM) excluding fuel was raised to 10% to 11% above 2019 levels from 8% to 10%). The Nasdaq -2.47%. Apple Inc fell -3.86% following a cautious research note from Morgan Stanley that cited slowing app store growth. The company’s Worldwide Developers Conference kicks off tonight AEST, with high expectations for its next generation operating system, a new Apple Watch and possibly a glimpse at the headset for virtual and artificial reality. Google-parent Alphabet Inc and Meta Platforms Inc declined roughly -2.6% and -4.1% respectively. Amazon.com Inc fell -2.52% to US$2,447 ahead of the 20-for-1 stock split becoming effective tonight AEST, meaning the stock should trade around US$122. Amazon’s share count will jump to 10.2B from 509M. It marks the fourth time Amazon has declared a stock split since it went public in 1997, but the first in more than two decades. Alphabet Inc’s own 20-for-1 stock split takes effect in mid-July. The small capitalisation Russell 2000 lost -0.77%. In merger and acquisition (M&A) news, Turning Point Therapeutics Inc soared +118.35% after the clinical-stage oncology company agreed to be acquired by biopharmaceutical company Bristol-Myers Squibb Co (+0.13%) in an all-cash deal valuing Turning Point at ~US$3.77B.
US equity markets rallied in the final hour of the session, with the benchmark indices booking their largest daily percentage climb since 27 May - Dow up +435-points or +1.33%, recovering from an earlier slide of over >300-points. The broader S&P500 rose +1.84%, with Consumer Discretionary rallying +3.03% to lead ten of the eleven primary sectors higher. Energy was the only primary sector to settle in the red, down -0.30%. Bloomberg reported that Citigroup Inc (up +0.08%) may record losses of at least US$50M following a London staffer’s “fat finger” trade that caused a ‘flash crash’ in European stocks last month. The Nasdaq gained +2.69%. Microsoft Corp added +0.79% despite the software giant lowering its fiscal fourth quarter earnings per share (US$2.24-to-US$2.32 from US$2.28-to-US$2.35, and versus consensus US$2.33) and revenue (US$51.94B-to-US$52.74B) guidance versus US$52.40B-to-US$53.20B) to reflect and "unfavourable" currency impact. Meta Platforms Inc rose +5.42% a day after Chief Operating Officer (COO) Sheryl Sandberg announced she was stepping down after 14-years with the company. The small capitalisation Russell 2000 rallied +2.31%.
The squeeze in the wholesale market continues as electricity futures surge to new record highs. Morgans Research Analyst Max Vickerson gives his update on the electricity sector, including stocks AGL Energy (ASX:AGL), Origin Energy (ASX:ORG), and Genex Power (ASX:GNX).
Read Max's research note here: https://morgans.com.au/Blog/2022/June/Power-Right-Now-Its-All-About-That-Base
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Core portfolio holdings and name with the most upside potential across large-cap healthcare.
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US equity markets opened June on the back foot - Dow down -177-points or -0.54%, paring an earlier decline of as much as -405-points. Salesforce Inc jumped +9.88% after the cloud-based customer-relationship-management company topped Wall Street estimates for first quarter after the closing bell of the previous session. The broader S&P500 -0.75%, with Financials (down -1.67%) leading ten of the eleven primary sectors lower. Energy (up +1.76%) was the only primary sector to advance. Delta Air Lines Inc fell -5.16% despite the carrier raising its total and unit revenue guidance for the second quarter, while the capacity outlook was lowered. Delta said it expects "strong" results for the quarter through June, and now expects revenue to be ~100% of what it was for the same period of pre-pandemic 2019, up from previous guidance of 93% to 97% of 2019 levels, while unit revenue is now expected to be 7%-8% better than previously expected. The company lowered its estimate for available seat miles (ASM) versus 2019 to 82% to 83% from approximately 84%, while raising its outlook for cost per available seat mile (CASM) excluding fuel to be up 20% to 22% from up approximately 17%. Delta's estimate for fuel price per gallon was boosted to US$3.60 to US$3.70 from $3.20 to $3.35. The Nasdaq -0.72%. Meta Platforms Inc fell -2.58% after Chief Operating Officer (COO) Sheryl Sandberg announced she was stepping down after 14-years with the company. The small capitalisation Russell 2000 lost -0.49%.
Michael shows how to use the Chicago Fed National Activity Indicator at chicagofed.org to see if a US recession is near.
Chicago Fed National Activity Index: https://www.chicagofed.org/research/data/cfnai/current-data
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US equity markets closed out the month on a weaker footing - Dow down -223-points or -0.67% , snapping a six session winning streak. The broader S&P500 -0.63%. After outperforming earlier in the session, the Energy sector settled -1.65% lower to lead nine of the eleven primary sectors lower. Consumer Discretionary (up +0.76%) and Communication Services (+0.40%) were the only primary sectors to advance overnight. The Nasdaq -0.41%. Both the S&P500 and Nasdaq snapped a three session winning streak. The small capitalisation Russell 2000 lost -1.26%.
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Fed Governor Christopher Waller said following a speech to the Institute for Monetary and Financial Stability in Frankfurt that he is “advocating 50 (basis point hikes) on the table every meeting until we see substantial reductions in inflation. Until we get that, I don't see the point of stopping." Mr Waller's comments came ahead of a meeting tonight AEST between Federal Reserve Chair Jerome Powell and U.S. President Joe Biden for a discussion called by the White House on state of the American and global economy.
US equity markets rallied strongly ahead of the holiday weekend, with technology stocks leading the advance - Dow up +576-points or +1.7%, logging its straight day of gains of more than >500 points and rallying for a sixth straight day in its longest winning streak since December 2021. The 30-stock index was powered by gains for Salesforce Inc (up +1.63%), Apple Inc (+4.08%), Microsoft Corp (+2.76%) and International Business Machines (IBM) Corp (+1.74%). The broader S&P500 +2.47%, with Consumer Discretionary (up +3.47%) and Information Technology (+3.44%) climbing over >3% to lead all eleven primary sectors (over >1%) higher. The Nasdaq +3.33% to 12,131.13, the technology-centric indice’s first close above >12,000 since 6 May. The small capitalisation Russell 2000 +2.70%. US equity and bond markets are CLOSED tonight AEST for the Memorial Day holiday.
US equity markets rallied, buoyed by a batch of strong earnings from the retail sector boosted market sentiment - Dow extended gains into a fifth consecutive session (its longest winning streak since 18 March), up +516-points or +1.61%. Boeing Co (up +4.65%) and Nike Inc (+4.38%) were among the leading performers. The broader S&P500 +1.99%, with Consumer Discretionary (up +4.78%) leading ten of the eleven primary sectors higher. All of Information Technology (+2.45%), Financials (+2.25%) and Communication Services (+2.078%) also climbed over >2%. Real Estate (down -0.10%) was the only primary sector to settle in the red. The Nasdaq rallied +2.68%. Apple Inc advanced +2.32% after a report said the iPhone maker plans to keep production of its flagship item flat this year due to industry challenges. Apple also said it would lift hourly pay for U.S. workers by +45% from 2018 to US$22 per hour to compete in a tight labour market and amid pushes by some employees to unionise. Nvidia Corp recovered from earlier losses to settle +5.16% higher The small capitalisation Russell 2000 rose +2.17%. In merger and acquisition (M&A) news, Broadcom Inc (up +3.58%) confirmed it had reached a deal to acquire cloud computing company VMWare Inc (+3.17% at US$124.36) in a cash and scrip deal worth ~US$61B following speculation earlier this week. Under the terms of the agreement, VMware shareholders will choose to receive either US$142.50 per share in cash or 0.2520 a common share of Broadcom for each VMware share.
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US equity markets advanced as technology stocks rebounded and as investors digested minutes of the Federal Reserve's policy meeting in early May - Dow rose +192-points or +0.6%, booking a fourth consecutive session of gains. The broader S&P500 gained +0.95%, with Consumer Discretionary (up +2.78%) and Energy (+1.96%) leading nine of the eleven primary sectors higher. Utilities (down -0.06%) and Health Care (-0.02%) were the only primary sectors to settle in the red. The Nasdaq rebounded +1.51% a day after logging its lowest close since 3 November, 2020. Twitter Inc gained over >6% in after hours trading (after a +3.91% rise in the regular session) after a filing with the Securities and Exchange Commission (SEC) showed Tesla Inc (+4.88%) Chief Executive Elon Musk increased the amount of cash he is committing to the acquisition of the social media company by US$6.25B, with the rest funded by debt financing. The filing also stated that Mr Musk continues to negotiate with Twitter shareholders, including cofounder Jack Dorsey, in an attempt to convince them to remain as investors instead of cashing out. The small capitalisation Russell 2000 rose +1.95%. Kohl’s Corp jumped +11.89% after Reuters reported that bidders continue to circle the retailer at lower prices than earlier this year, but still well above recent trading levels of the stock.
Michael Knox talks us through US stocks, Australian stocks, and what a full-employment economy will be like.
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Technology stocks once again weighed on US equity markets - Dow added +48-points or +0.15%. McDonald’s Corp (up +2.74%), Verizon Communications Inc (+2.03%) and International Business Machines (IBM) Corp (+2.01%) all added more than 2%.The broader S&P500 lost -0.81%, with Communication Services (down -3.70%) and Consumer Discretionary (-2.58%) leading six of the eleven primary sectors lower. More defensive sectors outperformed overnight, with Utilities up +2.01%, Consumer Staples +1.66% and Real Estate +1.21%. The Nasdaq shed -2.28% to 11,264.45, logging its lowest close since 3 November, 2020 and extending its calendar year-to-date loss to -28%. The technology-centric index sits ~30% below its record 19 November, 2021 record closing high of 16,057.44. Snap Inc tumbled -43.08% after Chief Executive Officer (CEO) Evan Spiegel warned in a note to employees that emerged after the close of Monday’s (23 May) session that the company will miss its own targets for revenue and adjusted earnings in the current quarter, and will also slow hiring through the end of the year as it looks to manage expenses. Amazon.com Inc fell -3.21% to a fresh 52-week low (us$2,082.00), while Facebook Inc lost -7.62% and Google-parent Alphabet Inc -5.14%. Twitter Inc fell -5.55% to US$35.76, below the price at which Tesla Inc chief executive Elon Musk acquired his stake. According to a 13D filing with the Securities and Exchange Commission on 5 April, Mr Musk bought his 73.12M shares or 9.1% stake in the social media company at a weighted average price of US$36.157 per share. Twitter has fallen ~31.1% from its 25 April close of US$51.70, the day the company agreed to be acquired by Mr Musk for US$54.20 per share. The small capitalisation Russell 2000 lost -1.56%. Wendy's Co jumped 17% in after-hours trading after its largest shareholder, Trian Fund Management LP, said it is looking at potential transactions to acquire control of the fast-food restaurant chain. Trian Fund Management LP owns ~19.4% of the company, according to the filings.
US equity markets advanced - Dow rallied +618-points or +1.98%, logging its best single session gain since 4 May. JPMorgan Chase & Co gained +6.19% higher after the banking giant hosted an Investor Day and raised its net interest income outlook. In addition, JPMorgan forecast that it may hit its goal of a 17% return on tangible equity this year. Goldman Sachs Group Inc rose +3.2%. The broader S&P500 rose +1.86%, with Financials (up +3.23%) leading all eleven primary sectors higher. The Nasdaq gained +1.59%. It marked the best session for both the S&P500 and Nasdaq since 17 May. The small capitalisation Russell 2000 added +1.10%. VMware Inc soared +24.78% after The Wall Street Journal reported that Broadcom Inc (down -3.10%) was offering ~US$140 per share or ~US$60B in a cash-and-stock deal to acquire the enterprise cloud-computing software company. The report came on the heels of several other media reports over the weekend speculating a deal. Snap Inc slumped ~30% in after hours trading after Chief Executive Officer (CEO) Evan Spiegel warned in a note to employees that the company will miss its own targets for revenue and adjusted earnings in the current quarter. The social media company will also slow hiring through the end of the year as it looks to manage expenses, Mr Spiegel wrote. Part of the letter was filed with the Securities and Exchange Commission.
We discuss the key pre-election promises and what a Labor victory means for investors.
Read more election coverage here: https://morgans.com.au/Blog/2022/May/Federal-Election-2022-Change-of-Government-first-impressions
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equities #federalelection #asx
A rally in the final hour of trading left US equity markets little changed on Friday (20 May) - Dow inched +9-points or +0.03% higher at 31,261.90, erasing an earlier decline of as much as -617 points. A close below 29,439.72 would put the blue-chip gauge in official bear market territory. The broader S&P500 eked out a +0.01% gain to settle at 3,901.36 after trading in official bear market territory earlier in last Friday’s (20 May) session. The index traded as low as 3,810.32 (down ~2.3%) ~20.9% the S&P500’s 3 January record closing high. Consumer Discretionary (down -1.53%) and Industrials (-1.07%) both fell over >1% to lead five of the eleven primary sectors lower. The more defensive sectors of Health Care (up +1.26%) and Real Estate (+1.19%) were the leading primary sectors last Friday (20 May), gaining over >1%. The Nasdaq slipped -0.30%. Applied Materials Inc fell -3.86% The small capitalisation Russell 2000 slipped -0.17%.
US equity markets logged back-to-back declines - Dow down -237-points or -0.75% , unwinding an earlier rally of as much as +300-points. Cisco Systems Inc tumbled -13.73% after the technology bellwether reported third quarter revenue that fell short of consensus expectations and cut its full year forecasts after the close of the previous session. The broader S&P500 -0.58% to sit 18.6% below its record closing high set in early January and ~19% below its most recent intra-day peak. Consumer Staples (-1.98%) and Information Technology (-1.07%) both fell over >1% to lead eight of the eleven primary sectors lower. Materials sat atop the primary sector leaderboard with a +0.68% rise. The Nasdaq -0.26%. The small capitalisation Russell 2000 inched +0.08% higher. Harley-Davidson Inc tumbled 9.29% after the motorcycle maker said it would suspend all assembly and shipments for two weeks. The company said the suspension was for "an abundance of caution" following information provided by a third-party supplier regarding "a regulatory compliance matter relating to the supplier's component part." In merger and acquisition (M&A) news, Spirit Airlines Inc (%) said its board has unanimously determined that JetBlue Airways Corp.’s (%) US$30-per-share cash offer isn’t in the best interest of the airline and its shareholders, urging the latter to reject the tender launched by JetBlue earlier this week. Spirit had already reiterated earlier in May its support for the merger deal with Frontier Group Holdings Inc (%), that it had agreed before JetBlue made its offer.
Some soft earnings updates from major retailers raised concerns around companies’ ability pass on higher costs and dragged US equity markets sharply lower - Dow shed -1,165-points or -3.57% to 31,490.07, logging its lowest close since 4 March. The broader S&P500 dropped -4.04% to 3,923.68, marking its lowest settlement since 25 March and with just seven index constituents advancing. All eleven primary sectors closed in the red, with Consumer Discretionary (down -6.60%) and Consumer Staples (-6.38%) both falling over >6%. The S&P 500 and the Dow recorded their worst single session performance since 11 June, 2020. Tesla Inc fell -6.80% after the E&P ESG Index dropped the electric vehicle EV maker from its widely followed index with a focus on environmental, social and governance (ESG) practices. Tesla chief executive Elon Musk responded to the news on Twitter by noting that Exxon Mobil Corp (-1.59%) is rated in the top ten in the world for ESG by S&P 500 Dow Jones Indices, adding that “ESG is a scam. It has been weaponized by phony social justice warriors.” The Nasdaq tumbled -4.74%, settling with its worst single day decline since 5 May. The small capitalisation Russell 2000 shed -3.56%.
US GDP growth should slow but low US unemployment should bring rising living standards.
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US equity markets extended their rebound following strong retail sales figures and comments from Federal Reserve Chair Jerome Powell sounding optimistic about a ‘soft’ economic landing - Dow gained +431-points or +1.34%. The broader S&P500 +2.02%, with all of Information Technology (up +2.91%), Materials (+2.86%), Financials (+2.69%), Consumer Discretionary (+2.68%) and Industrials (+2.28%) rallying over >2% to ten of the eleven primary sectors higher. Consumer Staples (down -1.15%) was the only primary sector to settle in the red. Citigroup Inc jumped +7.56% after a regulatory filing after the close of Monday’s (16 May) session recorded that Warren Buffett’s Berkshire Hathaway Inc took a nearly US$3B stake in the bank during the first quarter. The technology-centric Nasdaq gained +2.77%. The small capitalisation Russell 2000 jumped +3.19%.
US equity markets retreated after a choppy session to open the week, with growth stocks under pressure following some downbeat activity data in China - Dow inched +27-points or +0.08% higher . McDonald’s Corp lost -0.41% after announcing plans to exit Russia that would see the fast food giant book a charge of US$1.2B-US$1.4B. Consumer Discretionary (down -2.12%) led seven of the eleven primary sectors lower. The broader S&P500 eased 0.32%, with earlier gains evaporating in the final hour of trading. The Energy sector (up +2.62%) touched its highest intra-day level since 2014, with Occidental Petroleum Corp up +5.68% and Marathon Oil Corp +3.63%. Eli Lilly and Co rose +2.66% after its drug Mounjaro was approved by the Food and Drug Administration (FDA) to treat Type 2 diabetes. The drug is also being investigated for potential use in the treatment of obesity and overweight. United Airlines Holdings Inc rose over >2.5% in after hours trading after the carrier issued an update on its second-quarter outlook, noting in a securities filing that ”the demand environment has continued to improve, resulting in a higher unit revenue outlook for the second quarter 2022.” The Nasdaq lost -1.20% to 11,662.79 and sit ~27% below its record close of 16,057.44 touched on 19 November, 2021. Twitter Inc fell -8.18% after Bloomberg reported that Elon Musk said a deal to buy the social media company at a lower price than his previously agreed US$44B was "not out of the question." Tesla Inc lost -5.88%. The small capitalisation Russell 2000 lost -0.52%. In merger and acquisition (M&A) news, Spirit Airlines Inc soared 13.49% after JetBlue Airways Corp (down -6.06%) said it launched a "fully financed" tender offer to buy all Spirit outstanding shares for US$30 each, representing a 76.7% premium to last Friday's (13 May) closing price of $16.98.
US equity markets rallied to cap another volatile week that saw the S&P500 flirt with official bear market territory - Dow up +466-points or +1.47%, with Nike Inc (up +4.74%) and Salesforce Inc (+4.05%) among the leading index performers. American Express (+3.58%) and Boeing Co (+3.30%) both added more than >3% each. The broader S&P500 +2.39% (to 4,023.89) to reclaim the 4,000 level. Consumer Discretionary (up +4.10%), Information Technology (+3.44%) and Energy (+3.38%) all rallied over >3% to lead all eleven primary sectors higher. The technology-centric Nasdaq rebounded +3.82%, booking its biggest daily percentage gain since 4 November, 2020, according to Dow Jones Market Data. Meta Platforms Inc and Alphabet Inc gained +3.86% and +2.96%, respectively. Twitter Inc dropped -9.7% after Elon Musk tweeted that the deal to buy the social-media company was “temporarily on hold.” Mr Musk, the chief executive of electric vehicle maker Tesla Inc (up +%) said the hold on the deal is “pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.” In a subsequent tweet, Mr Musk said he was “Still committed to the acquisition.” The small capitalisation Russell 2000 jumped +3.06%.
US equity markets logged modest losses, recovering their worst levels of the session as Federal Reserve Chairman Jerome Powell was voted in by Congress to serve a second term of four years - Dow down -104-points or -0.33%, settling ~500-points off its session lows but extending losses into a sixth straight session. The broader S&P500 slipped -0.13% to 3,930.08, trading precariously close to official bear market territory at its session lows (3,858.87). Utilities (down -1.16%) and Information Technology (-1.14%) fell over >1% to lead five of the eleven primary sectors lower. More defensive sectors outperformed, with Healthcare up +0.92%, Consumer Discretionary +0.79% and Real Estate +0.74%. The index logged its lowest settlement since 25 March, 2021, and 18.1% below its record close from early January. A close below <3,837.25 would mark a 20% fall, meeting the widely used technical definition of a bear market. The S&P 500 entered correction territory - a fall of 10% from a recent peak - last month, its second such foray this year. Based on figures going back to 1929, the average bear market sees a peak to bear-market low decline of 33.5%, and a median fall of 33.2%, according to Dow Jones Market Data. On average, it has taken 80 trading days for the S&P 500 to hit its low after entering a bear market - and a median 52 trading days, the data showed. The Nasdaq inched +0.06% higher. Twitter Inc fell -2.19% after the company said two executives, general managers for revenue and consumer, are leaving the company ahead of Tesla Inc (%) Chief Executive Elon Musk’s takeover of the social-media giant. The small capitalisation Russell 2000 rebounded +1.24%.
US equity markets retreated as investors assessed the latest inflation report - Dow down -327-points or -1.02%, unwinding an earlier rally of ~423-points. Visa Inc (up +1.62%) and Merck & Co Inc (+1.57%). The index’s -6.5% decline over the past five trading session marks its biggest such decline since 15 June, 2020, according to Dow Jones Market Data. The broader S&P500 lost -1.65% to 3,935.18, touching an intra-session 52-week low (3,928.52) and is now down more than >18% from its 52-week high (and down over >17% calendar year-to-date). Consumer Discretionary (down -3.57%) and Information Technology (-3.30%) both declined over >3% to lead eight of the eleven primary sectors lower. The Energy (up +1.37%) sector helped to limit declines in the Dow and S&P500. The Nasdaq dropped -3.18%. Apple Inc shed -5.18% (dragging its market capitalisation down to ~US$2.37 trillion) and was usurped as the world’s largest company by capitalisation by oil giant Saudi Aramco (~US$2.43 trillion). Apple passed Saudi Aramco to become the world’s most valuable publicly traded company in 2020. Netflix Inc closed -6.4% lower in the wake of a New York Times report detailing plans by the streaming giant to launch an ad-supported pricing tier and crack down on password sharing. Meta Platforms Inc fell -4.51% and Microsoft Corp -3.32%. The small capitalisation Russell 2000 fell -2.48%. Coinbase Global Inc slumped -26.4% after the crypto exchange reported first-quarter revenue (US$1.17B) below expectations (US$1.48B) after the close of the previous session, impacted by lower crypto asset prices and market volatility.
Movements in the Australian cash rate have been following the “effective FED funds rate“.
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US equity markets steadied ahead of the release of key inflation data tonight AEST and with technology stocks regaining some composure after steep declines - Dow eased -84-points or -0.26%, booking a fourth consecutive session of losses (to be down -5.67%, its largest four-day percentage decline since the stretch ending 29 October, 2020). The index traded in an ~850-point range overnight, climbing as much as 500-points and sliding as much as -350-points. International Business Machines (IBM) (down -3.95%), Home Depot Inc (-1.98%), 3M Co (-2.14%) and JPMorgan Chase & Co (-2.44%) were among notable drags on the 30-stock index. The broader S&P500 added +0.25% to 4,001.05 after sliding below <4,000 to its lowest level since March 2021 in the previous session. Information Technology rose +1.58% to lead four of the eleven primary sectors higher. Real Estate fell -2.28% to be the worst primary sector overnight. Pfizer Inc (up +1.75%) announced it has entered a definitive agreement to acquire Biohaven Pharmaceutical Holding Company Ltd (+68.39%) for US$11.6B in cash. Tesla Inc fell -%, with Reuters reporting that electric vehicle maker had suspended production at its Shanghai plant, this time due to supply problems. The Nasdaq gained +0.98%. The small capitalisation Russell 2000 dipped -0.02%.
Morgans Equity Strategist, Andrew Tang, explores the relationship between rising interest rates and equity market performance. Should investors fear the worse or is this a another buying opportunity?
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US equity markets extended their recent sell-off, with technology stocks under particular pressure once again - Dow dropped -654-points or -1.99%. Walt Disney Company fell -3% to be trading more than >3% below where it was trading 5-years ago. The broader S&P500 slumped -3.2%, sliding below <4,000 to its lowest level since March 2021. The Energy sector tumbled -8.3% to lead ten of the eleven primary sectors lower. Consumer Staples eked out a +0.05% rise to be the only primary sector to advance. Tesla Inc fell -% The Nasdaq tumbled -4.29%, with Meta Platforms Inc and Google parent Alphabet Inc down -3.71% and -2.23%. Amazon.com Inc fell -5.21% and joined a host of other names in the Nasdaq 100 that are now trading below pre-pandemic highs. The technology-centric index is down -25.71% year-to-date, comfortably its worst start to a year on record. The small capitalisation Russell 2000 shed -4.21%. Rivian Automotive Inc shed 20.88% ahead of its first quarter result on Wednesday night AEST (11 May) amid reports that, after the post-initial public offering (IPO) period has passed, Ford Motor Co (down -5.91%) and others will look to divest some of their holding in the electric vehicle maker.
US equity markets closed out a tumultuous week in the red, clinching weekly declines for all three benchmark indices - Dow fell -99-points or -0.30% . The broader S&P500 -0.57%. The Nasdaq -1.4%. Amazon.com Inc fell -1.4%, while Microsoft Corp -0.94% and Nvidia Corp -0.90%. The small capitalisation Russell 2000 -1.69%.
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US equity markets slumped as Treasury yields resumed their ascent, with investors further picking apart the Federal Reserve’s latest monetary policy pronouncements - Dow tumbled -1,063-points or -3.12%, its worst daily percentage drop since 28 October, 2020, according to Dow Jones Market Data. The broader S&P500 shed -3.56%, recording its second worse single session decline of the year to date. Consumer Discretionary (down -5.81%), Information Technology (-4.93%) and Communication Services (-4.09%) all fell over >4% to lead all eleven primary sectors lower. Tesla Inc fell -8.3% after CNBC reported that Elon Musk intends to temporarily serve as chief executive at Twitter Inc (+2.65%) once the takeover deal closes. The Nasdaq dropped -4.99%, logging its lowest closing level since November 2020 and its worst daily percentage fall since 11 June, 2020. Facebook-parent Meta Platforms Inc fell -6.77%, Amazon.com Inc -7.56% and Apple Inc -5.57%. Etsy Inc and eBay Inc slumped -16.83% and -11.72% respectively after issuing weaker-than-expected revenue guidance. The small capitalisation Russell 2000 -4.04%.
US equity markets soared after Federal Reserve Chair Jerome Powell said larger +75-basis point interest rate hikes were not in play - Dow rallied +932-points or +2.81%, booking its best daily percentage gain since 9 November, 2020, according to Dow Jones Market Data and with all 30 index constituents advancing. Stocks seen as economic bellwethers performed well, with Home Depot Inc and Caterpillar Inc rising +3.39% and +4.20%, respectively. Bank stocks also gained ground, with Goldman Sachs Group Inc up +3.0% and JPMorgan Chase & Co +3.3%. The broader S&P500 +2.99%, logging its best daily percentage climbs since 18 May, 2020. Energy (up +4.11%) sat atop the primary sector leaderboard for a second consecutive session to lead all eleven key sectors higher, with Chevron Corp rising +3.14% and Exxon Mobil Corp +3.98%. Communication Services (+3.68%), Information Technology (+3.51%), Materials (+3.24%) and Financials (+3.02%) all climbed over >3%. The Nasdaq jumped +3.19%, the technology-centric index’s best daily performance since 16 March. Apple Inc (up +4.1%) and Google-parent Alphabet Inc (+3.76%) gaining more than >3.5% each. Advanced Micro Devices (AMD) Inc rallied +9.1% after the chip maker comfortably topped US$5B in quarterly revenue for the first time and lifted their full year outlook after the close of the previous session. The small capitalisation Russell 2000 gained +2.69%. Lyft Inc tumbled -29.91% after the ridesharing company provided weak guidance for the current quarter as it expects to invest in driver supply. Rival Uber Technologies Inc dropped -4.65%.
The RBA forecast for core inflation has risen to 4.75% in 2022.
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US equity markets settled with modest gains as investors braced for the Federal Reserve’s latest monetary policy pronouncements tomorrow morning - Dow up +67-points or +0.20% . The broader S&P500 +0.48%, with the Energy sector (up +2.87%) leading nine of the eleven primary sectors higher. Exxon Mobil Corp gained +2.%. Consumer Discretionary (down -0.29%) and Consumer Staples (-0.24%) were the only primary sectors to close in the red overnight. The Nasdaq +0.21%. The small capitalisation Russell 2000 +0.85%.
US equity markets rallied in the final hour of trading to start May on a positive footing – Dow settled +84-points or +0.26% higher, recovering from an earlier drop of as much as -527 points. Boeing Co (down -0.15% at US$148.61), paring an earlier decline of more than >3% that saw the stock touch its lowest intraday level (US$143.38) since 2 November, 2020. The aircraft manufacturer has logged a nine session losing streak that has seen the stock lose more than >22% following a weaker-than-expected first quarter result last week. The broader S&P500 rose +0.57% after hitting a fresh 2022 low earlier in the session. Communication Services (up +2.42%), Information Technology (+1.56%), Energy (+1.37%) and Consumer Discretionary (+1.36%) all advanced over >1% to lead six of the eleven primary sectors higher. Real Estate (down -2.55%) was the worst performing sector overnight. The Nasdaq rebounded +1.63%, clawing back some of the previous session’s -4.17% drop. Apple Inc added +0.20% despite European Union (EU) antitrust authorities telling the company that they have formed a preliminary view that it has abused its dominant position in markets for mobile wallets. The small capitalisation Russell 2000 gained +1.01%.
US equity markets recorded their steepest one day losses since 2020 to close out a tough month - Dow dropped -939-points or -2.77% . The broader S&P500 slumped -3.63% to 4,131.93, , settling with its largest one-day decline since June 2020 and lowest finish since 19 May, 2021. All 11 primary sectors fell sharply on Friday (29 April), with Consumer Discretionary (-5.92%), Real Estate (-4.90%) and Information Technology (-4.14%) posting the biggest losses. The latest fall left the S&P500 in official correction territory, down -10.8% from its most recent closing peak (4,631.60) on 29 March. The S&P 500 fell back into correction just 22 trading days after leaving the previous one, its fastest re-entry since November 2008, during the turmoil of the 2007-2009 financial crisis, when the index fell back into correction only 7 trading days after leaving one. The Nasdaq tumbled -4.17%, marking the technology centric index’s largest single session decline since September 2020. Amazon.com Inc dropped -14.05% to a near 2-year low and logging its steepest one-day drop since 2006 after the e-commerce giant delivered a disappointing first quarter result and outlook after the closing bell of last Thursday’s (28 April) session. The Nasdaq Composite sits in bear market territory, 23.9% below its most recent intraday high. Both the S&P500 and Nasdaq settled at their lowest levels for 2022 to date. The small capitalisation Russell 2000 lost -2.81%.
US equity markets showed solid gains across the board last night- Dow up +614-points or +1.85%. The broader S&P500 +2.47%. while the Nasdaq +3.06%. The small capitalisation Russell 2000 +1.80%. Information Technology (+4.04%), Communication Services (+3.88%) and Energy (+3.13%) led the gains, as all primary sectors ended in the green. The Technology sector was helped by a +17.5% rise in Meta (formally Facebook), after the company said it had added more users than expected in the first quarter. Shares were down -48% on the year heading into the results. Qualcomm gained +9.7% on the back of strong earnings, while PayPal rose +11.5% despite issuing weak guidance for the second quarter. On the contrary, Teladoc shares plunged about +40.2% after the company reported weaker-than-expected results.
We update our models of US and Australian equities for the selloff in the US and Australian bonds.
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US equity markets logged modest gains after an earlier rally fizzled and with investors digesting another busy night on the corporate earnings calendar - Dow up +62-points or +0.19%, paring an earlier rally of as much as . The broader S&P500 added +0.21% to 4,183.96. A close below 4,168.44 would see the index enter correction territory (defined as a pullback of at least 10% - but not more than 20% - from a most recent peak). The S&P 500 previously suffered a correction on 22 February, when it closed at 4,304.76, down -10.25% from its early January record close. Energy (up +1.48%), Materials (+1.48%) and Information Technology (+1.36%) all rose over >1% to lead five of the eleven primary sectors higher. Communication Services (down -2.62%) was the worst performing primary sector overnight. The Nasdaq dipped -0.01% to 12,488.93, settling at its lowest level of 2022 to date. The small capitalisation Russell 2000 down -0.34%.
US equity markets fell sharply as China's COVID-19 curbs and fears of aggressive U.S. Federal Reserve tightening continued to damp risk appetite and lifted the dollar to new two-year highs - Dow tumbled -809-points or -2.38% . The broader S&P500 -2.81% to 4,175.2, settling slightly above its closing low this year of 4,170.70 logged on 8 March. Consumer Discretionary (down -4.99%), Information Technology (-3.71%) and Communication Services (-3.16%) leading ten of the eleven primary sectors lower. The Energy sector was the only primary sector to advance, eking out a +0.04% rise. Twitter Inc fell -3.9% to US$49.68 a day after the board agreed to sell the social-media company to Elon Musk for US$54.20 per share, or ~US$44B. The technology-centric Nasdaq slumped -3.95%, booking its largest daily percentage drop since 8 September, 2020 and its lowest close since 14 December, 2020, according to Dow Jones Market Data. The index sits ~23% below its most recent record peak. The small capitalisation Russell 2000 shed -3.26%.
US equity markets rebounded from steep falls last Friday (22 April) albeit there was no obvious catalyst, staging their biggest intra-session turnaround in two months - Dow settled +238-points or +0.70% higher, recovering from an earlier session decline of as much as -488-points or -1.44% top log its biggest intra-day recovery since 24 February. The broader S&P500 rose +0.57%, with Communication Services (up +1.53%) and Information Technology (+1.44%) both climbing over >1% to lead seven of the eleven primary sectors higher. Energy was the big underperformer, down -3.34%. Chevron Corp fell -2.15% and Exxon Mobil Corp -3.37%. The technology centric Nasdaq gained +1.29%, buoyed by a retreat in bond yields. The Nasdaq is now sits 19.8% from its most recent record peak. Microsoft Corp gained +2.44%, Google-parent Alphabet Inc +3.04% and Meta Platforms Inc +1.56%. Twitter Inc’s rallied +5.66% after the board agreed to sell the social-media company to Elon Musk, changing course after initially gearing to fight the takeover attempt. The social-media company disclosed that the board had unanimously accepted the Tesla Inc (down -0.66%) chief executive’s offer to buy out the company for US$54.20 per share, or ~US$44B. The takeout price is ~38% ahead of Twitter’s close on 1 April, prior to when Mr Musk disclosed he had taken an ~9% stake in the company. Netflix Inc (down -2.60%) fell for a fourth consecutive session and settled near a four year low. The streaming giant has tumbled over >42% in the past four trading sessions since reporting a deeply disappointing first quarter result. The small capitalisation Russell 2000 added +0.70%. Dow tumbled -981-points or -2.82%, the index’s biggest single day decline since 28 October, 2020. UnitedHealth Group Inc fell -3.07%, shaving more than 100 points off the Dow. Caterpillar Inc fell -6.55%, also lopping almost 100-points of the 30-stock average. The broader S&P500 -2.77%, with Materials (down -3.73%), Health Care (-3.63%), Communication Services (-3.30%) and Financials (-3.00%) all declining 3%+ and leading all eleven primary sectors lower. The Nasdaq -2.5%. The small capitalisation Russell 2000 lost -2.55%. For the week, Dow lost -1.86%, its fourth straight weekly decline. The S&P500 -2.75%. Nasdaq -3.83%
US equity markets retreated, selling off in the afternoon session after Federal Reserve Chairman Jerome Powell added his support for moving faster on raising interest rates to cool inflation, including through a potential 50 basis point hike in May - Dow down -368-points or -1.05%, recording an intra-day swing of more than >700-points. The broader S&P500 fell -1.48%, with the Energy sector (down -3.10%) leading all eleven primary sectors lower. Tesla Inc advanced +3.23% after the electric vehicle maker posted better-than-forecast earnings after the close pf the previous session, aided byprice hikes. The Nasdaq shed -2.07%, unwinding an earlier session rally of as much as +1.9%. Netflix Inc fell -3.52%, extending the previous session’s -35.12% slump after the streaming giant reported a net loss of -200K paid subscribers in the first quarter after the close of Tuesday’s (19 April) session. The small capitalisation Russell 2000 lost 2.29%. Gap Inc fell over >11% in the extended session trading after the clothing retailer said Old Navy Chief Executive Nancy Green would be leaving the company by the end of the week and that it expects a larger-than-expected sales declines for the fiscal first quarter because of “macro-economic dynamics as well as the execution challenges at the Old Navy brand.” Gap said it now expects first-quarter sales to decline in the “low to mid-teens year over year,” compared with a previously forecast decline of “mid to high single-digit year over year.”
US equity markets mixed as investors waded through another busy day on the corporate earnings calendar - Dow up +250-points or +0.71%, paring an earlier rally of as much as +404-points. The broader S&P500 dipped -0.06%, with Communication Services falling -4.07% to be one of three primary sectors that settled in the red overnight. Consumer Discretionary fell -1.36% and Information Technology -0.13%. Real Estate (up +1.85%), Consumer Staples (+1.46%) and Health Care (+1.34%) all climbed over >1%. The Nasdaq fell -1.24%, with Netflix Inc tumbling -35.12% - its steepest single-day percentage decline since it fell a record 40.9% on 15 October, 2004 - on heavy volume after the streaming giant reported a net loss of -200K paid subscribers in the first quarter after the close of Tuesday’s (19 April) session, much worse than the 2.5M net additions expected by analysts. The fall saw ~US$54B shaved off Netflix’s market capitalisation. The small capitalisation Russell 2000 added +0.37%.
We show how to examine the US yield curve to find out when recession is near.
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US equity markets rallied as investors navigated one of the busiest weeks of the first-quarter corporate earnings season, with three (3) Dow constituents posting results overnight - Dow up +500-points or +1.45%. The broader S&P500 +1.61%. Consumer Discretionary (up +2.91%), Real Estate (+2.12%), and Communication Services (+2.07%) all gained over >2% to lead ten of the eleven primary sectors higher. Energy (down -0.96%) was the only primary sector to settle in the red. The Nasdaq rallied +2.15%. Twitter Inc fell -4.73% after the Wall Street Journal reported late Monday (18 April) that the social media company is expected to formally rebuff Elon Musk's US$54.20 per share offer in the coming days and that private-equity powerhouse Apollo Global Management Inc was considering whether to join in a bid. CNBC later reported that Apollo’s interest was focused on lending money to potential purchasers, not on a private-equity-style buyout. Twitter is slated to reports on 28 April. The small capitalisation Russell 2000 gained +2.04%.
US equity markets retreated for a second straight session as trading resumed following the Easter break, relinquishing gains in the final hour of the session as the first quarter earnings season prepared to move into full swing - Dow eased -40-points or -0.11% . The broader S&P500 dipped -0.02% despite a +1.51% rally for the Energy sector. Healthcare (down -1.12%) and Consumer Staples (-0.81%) led six of the eleven primary sectors lower. The Nasdaq slipped -0.14%. Twitter Inc gained +7.48% to US$48.45 after Elon Musk last Thursday (15 April) offered to buy the social media company for US$54.20 a share last. Twitter adopted a limited duration shareholder rights plan, often called a “poison pill,” a day after Mr Musk’s US$43B offer. Under the new structure, if any person or group acquires beneficial ownership of at least 15% of Twitter’s outstanding common stock without the board’s approval, other shareholders will be allowed to purchase additional shares at a discount. The plan is set to expire on 14 April, 2023. The small capitalisation Russell 2000 lost -0.74%.
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US equity markets rallied and settled near their session highs - Dow up +344-points or +1.01% . The broader S&P500 gained +1.12%, with Consumer Discretionary (up +2.51%) and Information Technology (+1.59%) leading nine of the eleven primary sectors higher. Utilities (down -0.17%) and Financials (-0.08%) were the only primary sectors to close in the red. Airlines got a boost from Delta Air Lines’ solid quarterly result, with American Airlines Group Inc up +10.62% and Southwest Airlines Co +7.54%. Costco Wholesale Corp (up +1.67%) announced after the closing bell that it had approved a quarterly payout of 90 cents a share, or US$3.60 a year, up from 79 cents a quarter, or US$3.16 a year. The Nasdaq +2.03%, with chipmakers rebounding. Nvidia Corp rose +3.25%, Advanced Micro Devices Inc +2.78% and Qualcomm Inc +3.24%. PayPal Inc dropped -2.85% following an announcement from Walmart Inc (on Tuesday (12 April) that it had hired PayPal executive John Rainey as its new chief financial officer (CFO). The small capitalisation Russell 2000 gained +1.92%. Gap Inc rose +8.23% after a report from Activist Insight speculating the clothing retailer could be a potential activist target.
The Fed intends to Sell $US720 billion of Treasury bonds and $US420 billion of Mortgage-backed securities per year, to force up US long-term yields and slow the US Economy.
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US equity markets settled with modest gains after a choppy session as investors weighed the latest inflation figures - Dow eased -88-points or -0.26% after climbing as much as +362 points earlier in the session. The broader S&P500 lost -0.34%, unwinding an earlier gain of as much as +1.30%. Financials (down -1.07%) led seven of the eleven primary sectors lower. Energy returned to the top of the primary sector leaderboard with a +1.72% gain, with Occidental Petroleum Corp up +2.11% and Chevron Corp +2.08%. The Nasdaq slipped -0.29%, having been up as much as +2.04% at its session peak. The small capitalisation Russell 2000 added +0.33%.
US equity markets retreated as rising Treasury yields continued to weigh on the Information Technology sector (down -2.60%) and with investors eyeing tonight’s AEST inflation data - Dow down -413-points or -1.19%, marking the largest one-day point and percentage drop since 31 March. Goldman Sachs Group Inc (down -0.20%) has acquired Netherlands-based asset manager NN Investment Partners for €1.7B to expand its asset management footprint in Europe and increase its sustainable investment capabilities. NN Investment Partners, which has more than 900 employees, will be integrated into Goldman Sachs Asset Management (GSAM) and brings Goldman's assets under supervision to approximately US$2.8 trillion. The broader S&P500 -1.69%, the indice’s largest one-day point and percentage decline since 7 March. The Energy sector (down -3.11%) led all eleven primary sectors lower, with Occidental Petroleum Corp down -6.28% and Conocophillips -4.92%. Airline stocks bucked the broader market’s negative trend, with Delta Air Lines Inc climbing +4.00%, American Airlines Group Inc +2.29%, Southwest Airlines Co +3.35% and United Airlines Holdings Inc +1.10%. Twitter Inc added +1.69% after Chief Executive Officer (CEO) Parag Agrawal revealed that Elon Musk abandoned his plan to join the company’s board. AT&T Inc rallied +7.74% on its first trading day following the spinoff of its 71% stake in Warner Bros. Holders of AT&T received roughly a 0.242 share of Warner Brothers Discovery, as the merged media company will be known, for each AT&T share in the spinoff. The Nasdaq shed -2.18% with losses deepening in the final hour of the session. Microsoft Corp fell -3.94%, while chipmakers Nvidia Corp and Advanced Micro Devices Inc fell -5.20% and -3.59% respectively. The small capitalisation Russell 2000 lost 0.71%.
US equity markets retreated on Friday (8 April) as investors braced for tighter monetary policy - Dow up +138-points or +0.40% . The broader S&P500 eased -0.27%, with Information Technology (down -1.49%) the key index drag. Energy (up +2.76%) sat atop the primary sector leaderboard on Friday (8 April). The Nasdaq shed -1.34%. The small capitalisation Russell 2000 fell -0.76%. US equity and bond markets are closed on Friday (15 April) for the Good Friday holiday.
US equity markets staged a comeback overnight as investors digested minutes from the March Federal Open Market Committee meeting, showing the central bank weighing a plan to reduce its bond holdings by $95 billion per month as it tries to stamp out surging inflation. The Dow rose +87.06 points or +0.30%. The broader S&P500 gained +0.4%, with Health Care (+1.85%), Energy (+1.36%), and Consumer Staples (+1.18%) leading the way. St. Louis Fed President James Bullard on Thursday dismissed talk of recession, saying that the U.S. expansion “is not ‘old’ and can continue for a long time.” Bullard has called for the Fed to raise interest rates swiftly to counter inflation, saying he wants to get the Fed’s benchmark interest rate above 3% this year. Shares in HP Inc. jumped +14.8% after Warren Buffett’s Berkshire Hathaway Inc. disclosed that it had taken an 11.4% (US$4.2bn) stake in the computer and printer maker. This follows a near US$20bn buying spree by Berkshire Hathaway recently. The Nasdaq also rose +0.1% helped by Tesla Inc (+1.2%) and Microsoft (+0.6%), while Twitter fell -5.4% The small capitalisation Russell 2000 was lower -0.35%.
Bond yields hit their highest level in three years and technology stocks lost ground as investors digested more details about the Federal Reserve's plan to raise interest rates. The Dow fell about -0.30%, or -100 points, Nasdaq dropped -2.0% or 315 points to 13,888. While the S&P 500 lost 0.90% or -43 points to 4,481, with the more defensive sectors Utilities (up +2.0%), Real Estate (up +1.55%) and Health Care (up +1.55%) leading five of the eleven primary sectors. Technology shares were sold off, falling for a second day as investors rotated out of the sector in anticipation for higher rates. Apple (-1.85%), Microsoft (-3.66%), Amazon (-3.23%) and Tesla (-4.17%) contributed to the sectors decline. Chipmakers Nvidia and Marvell Technology also continued their decent, falling -6.0% and -2.60% respectively. Expectations of higher short-term rates have hit the mortgage market, sending the average 30-year fixed-rate mortgage to 4.9% last week, the highest rate since 2018, according to the Mortgage Bankers Association. Shares of home builders, fell across the board. PulteGroup fell -US$1.15, or -2.70%, Lennar was down -US$3.42, or -4.30%, and D.R. Horton slid -US$2.92, or -3.90%.
How US budget deficits have driven the Australian commodities boom.
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US equity markets saw a mixed start, but soon turned lower across the board following remarks by the Fed Governor Lael Brainard, saying the Fed will “continue tightening monetary policy methodically through a series of interest rate increases and by starting to reduce the balance sheet at a rapid pace as soon as our May meeting,” This saw - Dow down -280 points or +0.80%. The broader S&P500 -1.26%, with Consumer Discretionary (-2.35%), and Information Technology (-2.19) leading the way down. Spirit Airlines (+22.37%) surged overnight after a report that JetBlue Airways has made a bid for budget carrier. This comes less than two months after Spirit and Frontier agreed to merge into a discount airline behemoth. The Nasdaq lead the losses falling -2.26%. Twitter (+2.00%) remained in the spotlight for a second day after the company named Elon Musk to its board of directors. Expectations of quicker interest rate hikes also dulled high-growth stocks Tesla (-4.73%), Paypal (-3.45%), and Amazon (2.6%). The small capitalisation Russell 2000 -2.36%.
US equity markets were strong in overnights trade as positive employment data and a rebound in technology stocks outweighed geo-political developments - The Dow up +103-points or +0.20%. The broader S&P500 added +0.81%. While the Nasdaq gained +1.9% to lead the indexes. A jump in Consumer Discretionary (+2.3%), Communication Services (+2.3%), Information Technology (+1.91%) & Energy (+0.7%) led 8 of the 11 S&P500 sectors higher. Twitter shares surged more than 27% following news that Elon Musk purchased a +9.2% passive stake in the company. Tesla’s stock also rose +5.6% on the back of its latest quarterly electric vehicle delivery figures, which came in above the year-earlier period. Other technology companies including Apple, Amazon, Alphabet and Nvidia were also up more than +2% after what was a weak March quarter for those companies. US-listed Chinese technology stocks, including Alibaba and JD.com, also rallied on optimism that they could avoid being delisted from US markets. Meanwhile, shares of Starbucks dipped +3.7% after the coffee chain suspended its share buyback program. The small capitalisation Russell 2000 rose +0.21%.
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US equity markets opened the new month and quarter with modest gains on Friday (1 April), with Wall Street looking to bounce back from its first negative quarter in two years - Dow up +140-points or +0.40%, recovering from an earlier session decline of ~100-points. The broader S&P500 added +0.34%, with the more defensive Real Estate (up +2.02%), Utilities (+1.45%) and Consumer Staples (+1.25%) sectors leading eight of the eleven primary sectors higher. Industrials (down -0.70%), Financials (-0.21%) and Information Technology (-0.17%) were the three primary sectors to close in the red. The Nasdaq +0.29%. Apple Inc (down -0.17%) was removed from JP Morgan’s Analyst Focus List, with the investment bank’s analysts citing concerns around a moderation in consumer spending. Apple climbed for 11-days from 14 March 14 until last Wednesday (30 March) - its longest winning streak since 2003. Chipmaker Qualcomm Inc (down -3.81%) was also removed from the focus list. Chip stocks more broadly were under fresh pressure, with Intel Corp down -2.93% and Advanced Micro Devices Inc -1.05%. Tesla Inc (up +0.65%) on Saturday (2 April) reported first quarter deliveries of ~310K vehicles, in-line with analysts’ expectations despite soaring gas prices, fresh COVID restrictions and supply chain challenges. It marked a quarterly record for the electric vehicle maker, up from ~309K vehicles delivered in the fourth quarter of 2021 and ~185K vehicles delivered in the first quarter of 2021. The small capitalisation Russell 2000 rose +1.01%. U.S.-listed Chinese stocks rallied on Friday (1 April) following a report that authorities in Beijing were preparing to meet a key demand of U.S. regulators, a move that would remove a cloud of uncertainty from companies like Alibaba Group Holding Ltd (up +1.29%), DiDI Global Inc (+12.80%), JD.com Inc (+2.11%) and NIO (+4.18%). The Chinese Securities Regulatory Commission and other regulators are drafting a new framework that would allow most Chinese companies to keep their U.S. listings, Bloomberg reported, citing anonymous sources. Beijing is set to give U.S. regulators the auditing reports of most of the 200-plus Chinese companies listed in New York, the report said, but was preparing to accept that some state-owned firms will be delisted.
US equity markets retreated, with the losses deepening in the final hour of the session - Dow lost -550-points or -1.56% . JPMorgan Chase & Co fell -3% and Goldman Sachs Group Inc -1.6% The broader S&P500 shed -1.57%. Financials (down -2.32%) and Consumer Services (-2.01%) both fell over >2% to lead all eleven primary sectors lower. The Nasdaq fell -1.54%. Semiconductor and tech hardware stocks came under pressure amid analyst concerns over the PC market going forward. Advanced Micro Devices Inc fell -8.29% after analysts at Barclays downgraded the stock to equal weight from overweight and lowered its price target from US$148 to US$115. Meanwhile, HP Inc and Dell Technologies Inc dropped -6.54% and -7.6%, respectively, after being downgraded to equal weight from overweight at Morgan Stanley. The small capitalisation Russell 2000 -1.00%.
US equity markets modestly weaker after a choppy session, with Russian forces shelling areas around Kyiv and another Ukrainian city overnight, just hours after it pledged to “fundamentally” cut back operations in the areas - Dow eased -65-points or -0.19% . The broader S&P500 lost -0.63%. Consumer Discretionary (down -1.51%) and Information Technology (-1.36%) both declined over >1% to lead seven of the eleven primary sectors lower. Energy returned to the top of the primary sector leaderboard with a +1.17% gain. The Nasdaq -1.21%. Apple Inc (down -0.66%) snapped an 11-session winning streak overnight, falling just short of matching the 12-session record winning streak from 2003. The decline in Apple’s share price came despite a report from Bloomberg News indicating that the company had growing ambitions in financial services and was looking to build payment-processing technologies that would support more in-house fintech efforts. The small capitalisation Russell 2000 shed -1.97%.
Unemployment is the lowest in decades. Scarce Labour will now drive up real wages.
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US equity markets extended their recent rally amid signs of some thawing of tensions in the Russia-Ukraine conflict - Dow up +338-points or +0.97% . UnitedHealth Group Inc (down -0.48%) confirmed that its Optum Health unit would buy post-acute healthcare services company LHC Group LHCG in a deal that values LHC Group (up +5.93%) at more than >US$5.5B (US$170 per share). The broader S&P500 rose +1.23% to 4,631.60, exiting official correction territory after moving above 4,587.77 as the index rose for a fourth straight day. Based on data going back to 1928, the S&P 500 has seen a median gain of 11.5% a year after exiting correction, and average gain of nearly 14% - rising nearly 77% of the time. Median and average returns for shorter term time frames were also positive, according to Dow Jones Market Data. Real Estate (up +2.85%) and Information Technology (+2.06%) climbed over >2% to lead then of the eleven primary sectors higher. Energy (down -0.44%) was the only primary sector to close in the red. FedEx Corp rose % after the company announced that founder Fred Smith would step down as Chief Executive Officer (CEO) on 1 June and be replaced internally. Tesla Inc added +0.71% after Morgan Stanley reiterated its overweight rating on the electric vehicle maker. Morgan Stanley analyst Adam Jonas wrote in a client note that Tesla may spend a combined $200 billion to $250 billion on capital expenditures and research and development through 2030, or roughly the entire market value of Toyota Motor , the No. 2 automaker in market value behind Tesla. The call came after CEO Elon Musk tweeted that he was “Working on master plan part 3.” Moderna Inc rose +4.37% after U.S. regulators approved an additional COVID vaccine booster shot for people age 50 and over. The technology-centric Nasdaq gained +1.84%. The small capitalisation Russell 2000 climbed +2.65%.
US equity markets reversed earlier session losses to settle higher, with technology stocks leading the rebound - Dow up +95-points or +0.27%, recovering from an earlier decline of over >300-points. The broader S&P500 rose +0.71% to 4,575.52, falling short of the 4,587.77 level needed to mark an exit from official correction territory. Consumer Discretionary climbed +2.67% to lead eight of the eleven primary sectors higher. Energy (down -2.56%) was the worst performing primary sector overnight as crude prices retreated, with Chevron Corp down -1.75% and Exxon Mobil Corp -2.81% Tesla Inc rallied +% after the electric vehicle giant disclosed plans to enable a stock split, which would be the second in two years. The Nasdaq rallied +1.31% to 14,354.90, the highest settlement for the technology-centric index since 9 February. Apple Inc rose +0.50% to log its longest winning streak in more than a decade, climbing for ten consecutive sessions. The latest modest rise came despite a report from the Nikkei Asian Review saying that the company intends to lower production orders for its new iPhone SE by roughly 2M to 3M devices for the June quarter. The U.S. tech giant also reduced orders for its AirPods earphones by more than >10M units for all of 2022, as the company predicted lukewarm demand and wanted to reduce the level of inventories. Apple also asked suppliers to make a couple of million fewer units of the entire iPhone 13 range than previously planned, but said this adjustment was based on seasonal demand. Netflix Inc rose +1.25% despite executives predicting that growth would suffer much more than expected at the beginning of 2022. The small capitalisation Russell 2000 settled flat.
In today’s Morgans Conversations, adviser Chris Titley chats with Alex Waislitz from Thorney Opportunities (ASX Code:TOP). Alex talks about the existing portfolio, the sectors they operate in and the composition of the portfolio and why they are so enthused. Alex also gives his views on the overall market.
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US equity markets ended another positive week on a mixed note - Dow up +153-points or +0.44%, with Goldman Sachs Group Inc (up +1.26%) and JPMorgan Chase & Co (+1.23%) among the notable performers and Treasury yields continued to climb. The broader S&P500 added +0.51%. The Energy sector (up +2.28%) climbed over >2% to lead nine of he eleven primary sectors higher on Friday (25 March). Information Technology and Consumer Discretionary both dipped -0.09% to be the only primary sectors not to advance. Tesla Inc (down -0.32%) is planning to suspend production at its Shanghai factory for at least one day, Bloomberg News reported on Sunday (27 March), as China’s financial hub said it would go into a lockdown in two stages to conduct COVID-19 testing. The technology centric Nasdaq eased -0.16%. The small capitalisation Russell 2000 +0.12%. JD.com Inc fell -2.60% after the U.S. Public Company Accounting Oversight Board said it was premature to say it was close to an agreement with China on allowing audit inspections of U.S.-listed Chinese companies. Alibaba Group Holding slid -1.9% following an ~6% in Hong Kong.
US equity markets advanced, settling near session highs as world leaders met to respond to Russia’s invasion of Ukraine and investors continued to monitor remarks by Federal Reserve officials - Dow up +349-points or +1.02% . The broader S&P500 +1.43%, with Information Technology (up +2.71%) leading all eleven primary sectors higher. Tesla Inc (up +1.48% to US$1,013.92) extended its rally into an eighth consecutive session to be up ~32% over that period and logging its highest close since 18 January. The technology-centric Nasdaq rallied +1.93%, with chipmakers among the leading performers. Nvidia Corp jumped +9.82%, Intel Corp +6.94%, and Advanced Micro Devices Inc +5.80%. The small capitalisation Russell 2000 gained +1.13%. Uber Technologies Inc rose +4.96% after The Wall Street Journal reported that the company has struck a deal to list all New York City taxis on its app.
US equity markets retreated and settled near their session lows as investors weighed the latest spike in oil prices and hawkish comments from Federal Reserve officials - Dow down -449-points or -1.29% . The broader S&P500 -1.23%, with Financials (down -1.84%), Health Care (+1.77%) and Information Technology (-1.5%) fell 1.5%+ to lead nine of the eleven primary sectors lower. Energy (up +1.74%) was the leading primary sector overnight. The Nasdaq -1.32%. Adobe Inc fell -9.34% after the software firm reported better-than-expected revenue and earnings per share (EPS) after the closing bell of the previous session but provided an outlook for the current quarter that fell shy of Wall Street estimates. The small capitalisation Russell 2000 shed -1.73%.
The Feds Rate Hikes and quantitative tightening haul down US inflation.
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Morgans' Analyst Alex Lu covers the key themes from reporting season for the industrials sector.
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US equity markets rebounded following a volatile session on Monday (21 March) - Dow up +254-points or +0.74% . Goldman Sachs Group Inc rose +1.18% and JP Morgan Chase & Co +2.13% The broader S&P500 +1.13%, with Consumer Discretionary (up +2.45%) and Communication Services (+2.01%) both rising over >2% to lead ten of the eleven primary sectors higher. Energy (down -0.66%) was the only primary sector not to advance. Tesla Inc rose +7.% pushing its market capitalisation back above >US$1trillion for the first time since January after the electric carmaker opened a plant in Grünheide, Germany. The Nasdaq +1.96%. Big tech names Alphabet Inc (up +2.78%), Meta Platforms Inc (+2.44%) and Amazon.com Inc (+2.10%) all gained more than >2%. Nvidia Corp (down The small capitalisation Russell 2000 %. Alibaba Group Holding Ltd’s American Depository Receipts (ADRs) rallied +11% after the Chinese e-Commerce company announced late Monday (21 March) that it was boosting the size of its share-buyback program, authorising repurchases of as much as US$25B in shares, up from US$15B.
A dramatic escalation of geopolitical risks, commodity prices, the Fed rate hike expectations, and cautious market positioning provides investors with a broad scope of potential outcomes over the next few months.
Asset Allocation Blog: https://morgans.com.au/Blog/2022/March/Australia-Strategy-Asset-Allocation-Update-Q2-2022
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US equity markets retreated and bond markets saw aggressive selling after Federal Reserve Chair Jerome Powell underlined the need to quicken the pace of monetary policy tightening, adding that upward pressure on prices from the invasion of Ukraine comes at a time of “already too high inflation” - Dow lost -202-points or -0.58%, paring an earlier decline of as much as -413-points but snapping a five session winning streak. Boeing Co fell -3.59% after a China Eastern Airlines passenger jet, with 132 people on board crashed in the mountains of southern China. The plane was a 737-800, not the 737 Max, which has yet to resume commercial flying in China, according to The Wall Street Journal. The broader S&P500 dipped -0.04%, unwinding an earlier advance of as much as +0.4% despite a +3.79% gain for the Energy sector. The Nasdaq eased -0.40%. Facebook parent Meta Platforms Inc lost -2.31%. Apple Inc rose +0.85% despite several of its properties, including the App Store, Apple Music, Apple TV+, the iTunes store and Podcasts, suffering from an outage, disrupting access for users and businesses. Apple said the problems ranged from slow or unavailable service to intermittent issues with various services, its system status page showed. The small capitalisation Russell 2000 fell -0.97%.
US equity markets advanced to lift the benchmark indices to their best weekly performance since the week ended 6 November 2020, according to Dow Jones Market Data - Dow climbed for a fifth straight session, settling +274-points or +0.80% higher. Salesforce.com Inc and Apple Inc were among the top gainers in the Dow, rising +3.99% and +2.09% respectively The broader S&P500 gained +1.17%. Information Technology (up +2.19%) and Consumer Discretionary (+2.18%) both gained over >2% to lead ten of the eleven primary sectors higher. Utilities (down –0.90%) was the only primary sector to settle in the red on Friday (18 March). General Motors Co rose +0.4% in extended trading on Friday (18 March) after announcing that it was buying Softbank Vision Fund's stake in its autonomous-driving unit Cruise for US$2.1B, lifting its stake to ~80%. GM will also make an additional US$1.35B investment in Cruise in place of SoftBank, it said. The technology centric Nasdaq rallied +2.05%. Nvidia Corp rallied +6.8% and Meta Platforms Inc +4.16% The small capitalisation Russell 2000 added +1.02%. Friday’s (18 March) marked Quadruple Witching, the simultaneous expiration of stock index futures, stock index options, stock options and single-stock futures.
US equity markets continued to build on a strong rebound as investors digested the latest news out of Ukraine and the outcome of the latest Federal Reserve monetary policy meeting - Dow gained +418-points or +1.23% and is on pace to log its first positive week in the past six. American Express Corp (up +3.52%) was among the leading performers following their Investor Day on Wednesday (16 March), with Bank of America reiterating their ‘buy’ recommendation on the stock. The broader S&P500 advanced +1.23%, with Energy (up +3.48%) returning to the top of the leaderboard and leading all eleven primary sectors higher. Occidental Petroleum jumped +9.47% as Warren Buffet’s investment group, Berkshire Hathaway, filed papers with the Securities and Exchange Commission (SEC) indicating it owed 136.37M shares of the oil major as of 16 March, following purchases of around US$985M of stock between 14 March and 16 March at an average price of around US$54.41 per share. The Nasdaq rose +1.33%. The small capitalisation Russell 2000 gained +1.69%. Tonight’s AEST session for US equity markets is Quadruple Witching, when stock index futures, stock index options, stock options and single-stock futures expire simultaneously.
US equity markets logged strong gains after a volatile session that saw the Federal Reserve raise interest rates as expected accompanied by an aggressive policy outlook to combat inflation - Dow gained +519-points or +1.55% after initially declining in the wake of the release of the Federal Reserve’s monetary policy statement. The index swung nearly 700-points from its session lows. JPMorgan Chase & Co +4.47% Boeing Co (up +5.06%), Intel Corp (+4.06%), Nike Inc (+4.85%), and Salesforce.com Inc (+4.81%) were among other notable index performers. American Express Co gained +2.60% after the company hosted an Investor Day and reiterated its long-term goals for annualised revenue growth of more than >10% in 2024 and beyond, as well as earnings-per-share (EPS) growth in the mid-teens range over the same stretch. The broader S&P500 jumped +2.24%, recording its biggest two-day increase since April 2020. The Nasdaq surged +3.77% to log its best daily percentage gain since 4 November, 2020 and mark a +6.7% rally for the technology-centric index over the past two sessions The small capitalisation Russell 2000 rallied +3.14%.
US equity markets advanced as oil prices retreated below US$100/barrel for the first time since 1 March, while the latest reading of wholesale inflation printed lighter than expectations - Dow rallied +599-points or +1.82% . The broader S&P500 gained +2.14%, snapping a three day losing streak. Information Technology (up +3.49%) and Consumer Discretionary (+3.39%) both climbed over >3% to lead ten of the eleven primary sectors. Energy (down -3.72%) sat at the foot of the primary of the primary sector leaderboard for a second consecutive session, with Chevron Corp down -5.06% and Exxon Mobil Corp -5.69%. Delta Air Lines Inc (up +8.70%) and Southwest Airlines Co (+4.89%) both raised their first-quarter revenue outlooks overnight, while United Airlines Holdings Inc (+9.19%) said it expects first-quarter total operating revenue to be nearer the top end of previous guidance. The technology-centric Nasdaq rebounded +2.92%, also snapping a three session losing streak and more than recouping the previous session’s -2.06% decline. Microsoft Corp and Netflix Inc each rose +3.8% after some Wall Street analysts reiterated their overweight ratings. Chipmakers also rebounded strongly, with Advanced Micro Devices Inc up +6.92% and Nvidia Corp +7.70%. The small capitalisation Russell 2000 rose +1.4%.
US equity markets weaker as investors continued to monitor Russia-Ukraine updates and China’s latest COVID-related lockdown ahead of the Federal Reserve’s latest monetary policy decision on Thursday morning AEST (17 March) - Dow settled unchanged , relinquishing an earlier rally of as much as +450-points. Apple Inc fell -2.66% after its supplier and biggest assembler of iPhones Hon Hai Precision Industry Co Ltd, known as Foxconn Technology Group, suspended operations in China's Shenzhen amid rising COVID-19 cases. There were separate reports that Foxconn is in talks with Saudi Arabia about jointly building a US$9B multipurpose facility that could make microchips, electric-vehicle components and other electronics like displays, according to people familiar with the matter. Taiwan-based Foxconn is also reportedly talking with the United Arab Emirates about potentially siting the project there. Intel Corp and Salesforce.Com Inc fell -3.12% and -2.4% respectively. However, American Express Co and Visa Inc were among the Dow’s top gainers, adding +2.9% and +1.8% respectively. The broader S&P500 fell -0.74%, with Energy (down -2.89%) and Information Technology (-1.90%) leading seven of the eleven primary sectors lower. Financials (up +1.25%) was the best performing primary sector overnight. The S&P 500 booked its first death cross - where the 50-day moving average crosses below the 200-day moving average - since March of 2020. The technology-centric Nasdaq dropped -2.06%, with chipmakers under particular pressure. Qualcomm Inc fell -7.25% and Nvidia Corp -3.48%. The small capitalisation Russell 2000 declined -1.92%. The U.S.-listed shares of Alibaba Group Holding Ltd sank -10.3% as the China-based e-commerce giant continues to suffer from a broad selloff in China’s stock market amid the threat of delisting of shares of China-based companies in the U.S. Hong Kong’s Hang Seng index fell -4.97% yesterday (14 March), while mainland Chinese stocks were also weaker (Shanghai Stock Exchange down -2.60%, with the Shenzhen Component Index shed -3.08%)
February results were very strong, as we’d flagged was likely. Important large-cap stocks were the stars, beating expectations at a near record rate (37% of the ASX50 beat) with their prices jumping a record amount (+7%) reflecting a flight to quality.
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US equity markets retreated on Friday (11 March), with the losses accelerating into the close and all three major benchmarks booking another week of losses, after President Joe Biden called for a suspension of normal trade relations with Russia as part of sanctions designed to economically isolate Moscow for its unprovoked attack in Ukraine - Dow fell -265-points or -0.69%, relinquishing modest opening gains. Nike Inc (down -2.70%) and Apple Inc (-2.39%) were among the key index drags. The broader S&P500 -1.30% to 4,204.31. Communication Services (-1.88%), Information Technology (-1.80%) and Consumer Discretionary (-1.79%) led all eleven primary sectors lower. Oracle Corp rose +1.53% despite releasing a mixed third quarter result after the close of last Thursday’s (10 March) session. A Securities and Exchange Commission (SEC) filing late Friday (11 March) revealed that Berkshire Hathaway Inc (up +0.41%) spent more than US$1.5B last week to buy a further 27.1M shares in Occidental Petroleum Corp (down -0.31%), lifting the company’s stake in the energy company to 118.3M shares worth more than >US$6.9B - or ~12% of the outstanding shares. The latest purchases made Occidental Petroleum the 9th largest reported holding of Warren Buffet’s investment vehicle’s holdings of publicly-traded U.S. shares. Separately, Berkshire Hathaway on Friday (11 March) urged the rejection of four shareholder proposals recommending that it replace Warren Buffett as chairman, report on its plans to handle climate risk and reduce greenhouse gases, and improve diversity. The Nasdaq shed -2.18%. The small capitalisation Russell 2000 lost -1.59%. Ride share and food delivery company Uber Technologies (up +1.15%) announced that it is imposing a temporary fuel surcharge (ranging from US$0.45c to US$55c that will be in effect for two months) that will go directly to drivers to help mitigate the impact of soaring gas prices (which hit a record high of US$4.43 per gallon last week, up US$0.79 in the past two weeks).
US equity markets retreated as investors braced for central banks to tighten monetary policy despite Russia’s invasion of Ukraine - Dow eased -112-points or -0.34% . Goldman Sachs Group Inc (-1.11%) became the first major Wall Street bank to pull out of Russia, saying it was winding down its business in Russia, in accordance with the relevant regulatory and licensing rules. The announcement came after the investment bank disclosed a credit exposure to Russia of US$650M. FedEx Corp (up +1.18%) announced that chief executive officer and president Donald Colleran will retire 31 December. The broader S&P500 lost -0.43%, with Information Technology (down -1.76%) led six of the eleven primary sectors lower. Energy (up +3.07%) returned to the top of the primary sector leaderboard overnight, with Chevron Corp up +2.74% and Exxon Mobil Corp +3.10%. The technology-centric Nasdaq -0.95%, with Apple Inc (down -2.72%) and Meta Platforms (-1.66%) among the key drags. However, Amazon.com Inc gained +5.41% and logged its second best daily rise of 2022 after the company announced a 20-for-1 stock split and US$10B buyback after the closing bell of the previous session. The small capitalisation Russell 2000 slipped -0.23%.
US equity markets snapped a four session losing streak, with investor sentiment shifting ahead of a European Union (EU) summit tonight AEST when leaders will discuss a new growth and investment model and ways to reduce dependence on Russian energy - Dow gained +654-points or +2.00%, climbing out of official correction territory. Goldman Sachs Group Inc (up +3.80%), JPMorgan Chase & Co (up +4.01%), Nike Inc (+4.74%) and Salesforce.Com (+5.77%) were among the leading index performers. The broader S&P500 +2.57%, logging its best daily percentage gain since 5 June 2020. Information Technology (up +3.98%), Financials (+3.61%), Communication Services (+3.45%) and Materials (+3.01%) all gained over >3% to lead nine of the eleven primary sectors higher. Energy fell -3.18%. General Electric Co gained +3.5% to extend their bounce off at 14-month low after the industrial conglomerate disclosed a new US$3B stock repurchase program. The technology centric Nasdaq jumped +3.59%, dragging itself out of official bear market territory and best daily percentage gain since 9 March, 2021. Netflix Inc gained +4.98%, Microsoft Corp +4.59%, Meta Platforms +4.31% and Alphabet Inc +4.97%. The small capitalisation Russell 2000 rallied +2.71%.
War risk makes it impossible for ships to get insurance to load Russian cargo in the northern black sea. This cripples Russian exports of cargoes of Russia’s own oil and its own wheat.
Russians have an incentive to end the war sooner rather than later.
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Economy #Russia #Ukraine
US equity markets retreated, with the S&P500 settling at its lowest level since June 2021 after yet another volatile session - Dow down -185-points or -0.56%, unwinding an earlier +585-point rally. The broader S&P500 lost -0.72%, and pushing deeper into official correction territory. Consumer Staples (down -2.64%) and Healthcare (-2.11%) both declined over >2% to lead nine of the eleven primary sectors lower. Energy (up +1.39%) was yet again the leading primary sector, with Chevron Corp up +5.24%. Airlines and cruise lines also advanced. Delta Air Lines Inc rose 3.69%, American Airlines Group Inc +5.22% and United Airlines +3.32%, while Norwegian Cruise Line Holdings Ltd rose +3.77%. General Electric Co (up +3.24%) announced that its board authorised a $3B share buyback programme. The technology-centric Nasdaq -0.28% a day after entering an official bear market. Apple Inc (down -1.17%) staged its spring product launch event. The company unveiled a slew of new products on Tuesday, including a new iPad Air, the high-powered Mac Studio computer and the successor to one of its best-value phones, the iPhone SE. The small capitalisation Russell 2000 bucked the weaker trend, adding +0.60%.
US equity markets fell sharply, with investors rattled by the risk of energy sanctions cascading through the economy - Dow dropped -797-points or -2.37%, with American Express Co (down -7.99%) the worst index performer. The broader S&P500 shed -2.95%, pushing deeper into official correction territory (down more than >12% from its most recent record close). Energy (up +1.57%) was once again the best performing primary sector, with Chevron Corp up +2.14% and Exxon Mobil Corp +3.60%. Utilities (up +1.31%) was the only other primary sector to advance. Consumer Discretionary (down -4.80%) was the worst performing primary sector overnight, while Communication Services (-3.74%), Information Technology (-3.70%), Financials (-3.66%) and Materials (-3.49%) all fell over >3%. The technology-centric Nasdaq slumped -3.62% to 12,830.96 and settled in bear market territory, down by more than >20% from its 19 November, 2021 peak. The small capitalisation Russell 2000 fell -2.48%. In broader stock moves, Bed Bath & Beyond soared 34.18% after GameStop Chairman Ryan Cohen revealed he had a nearly 10% stake in the retailer, through his investment company RC Ventures.
US equity markets retreated and bond markets rallied on Friday (4 March) as investors sought out havens amid the escalating war between Russia and Ukraine - Dow down -180-points or -0.53%, paring an earlier decline of over >500-points. American Express Co (down -3.86%), JPMorgan Chase & Co (down 2.81%) and Goldman Sachs Group Inc (-1.12%) were notable laggards. However, more defensive names like Walmart Inc (up +2.53%) and UnitedHealth Inc Group Inc (+2.48%) outperformed. The broader S&P500 -0.79%. Financials (down -1.96%), Information Technology (-1.78%) and Consumer Discretionary (-1.51%) all fell over >1.5% to lead six of the eleven primary sectors lower. Energy (up +2.85%) once again sat atop the primary sector leaderboard, while Utilities gained +2.19%. Occidental Petroleum jumped +17.59%. In a filing late Friday (4 March), Berkshire Hathaway said it holds a total of 113.7M shares of Occidental, including both the stock and warrants. The combined holding represents 11.2% of Occidental’s outstanding shares but that overstates Berkshire’s investment since the warrant exercise price is out of the money (or above the current stock price). Travel and leisure-related companies were under fresh pressure, with American Airlines Group Inc down -7.13%, Delta Air Lines Inc -5.58% and United Airlines Holdings Inc -9.07%. The Nasdaq -1.66%. Apple Inc (down -1.56%) hosted its annual shareholder meeting on Friday (4 March) and stages its spring product launch event on Tuesday night AEST (8 March). Microsoft Corp (down -2.05%) and Netflix Inc (-1.72%) announced they were suspending new sales and services in Moscow. The small capitalisation Russell 2000 -1.56%. For the week, Dow lost -1.30%, logging its fourth straight weekly decline. The S&P500 shed -1.27% and the Nasdaq -2.78%.
Technology stocks weighed on US equity markets - Dow down -97-points or -0.29% after trading in positive territory for much of the session. The broader S&P500 settled -0.53% lower, with Consumer Discretionary (-2.29%) and Information Technology (-1.24%) leading four of the eleven primary sectors lower. More defensive sectors outperformed overnight, with Utilities (up +1.72%) and Real Estate (+1.10%) both gaining over >1%. The Nasdaq fell -1.56%. Apple Inc (down -0.20%) holds its annual shareholder meeting tonight AEST (2 March). The small capitalisation Russell 2000 lost -1.39%.
US equity markets rebounded sharply and a powerful rally in debt markets reversed as Federal Reserve chair Jay Powell signalled that the US central bank would raise interest rates this month despite economic uncertainty created by Russia’s invasion of Ukraine - Dow up +596-points or +1.79%, with all 30 index components advancing. Caterpillar Inc (up +5.35%), Intel Corp (+4.38%) and Goldman Sachs Group Inc (+2.49%) were among the strongest performers. The broader S&P500 gained +1.86%. Financials (up +2.55), Materials (+2.24%), Energy (+2.22%), Industrials (+2.19%) and Information Technology (+2.19%) all gained over >2% to lead all eleven primary sectors higher. Ford Motor Co jumped +8.38% after the automaker announced it would split its electric vehicle and legacy production businesses into two separate units. Ford plans to breakout financial results for both units, and its Ford+ business, by 2023.The technology-centric Nasdaq rose +1.62%. The small capitalisation Russell 2000 rose +2.51%.
US equity markets retreated as the military conflict in Ukraine showed no signs of abating, with Russia stepping up its bombardment of Ukraine’s biggest cities and traders seeking shelter from risk asset - Dow fell -598-points or -1.76%, paring an earlier -785-point drop. American Express was the worst performing Dow constituent overnight, down -8.47%. Goldman Sachs Group Inc and JPMorgan Chase & Co fell -3.27% and -3.77% respectively. The broader S&P500 -1.55%, with Financials (down -3.71%) leading ten of the eleven primary sectors lower. The latest decline dragged the S&P500 back into official correction territory. Energy (up +1.03%) was the only primary sector to advance, with Chevron Corp up +3.97% and Exxon Mobil Corp +0.96%. Chevron hosted its annual Investor Day overnight and said it will ramp up share buybacks as it expects higher returns across the next four years, as much as doubling its share buyback guidance range each year to US$5B to US$10B, up from a prior range of US$3B to US$5B. The energy major also said that it expected to continue to improve cost efficiency and deliver higher returns The technology-centric Nasdaq lost -1.59%. Apple Inc (down -1.16%) confirmed that it has stopped selling its products through the Apple Store in Russia. All Apple products on the company’s Russian storefront are listed as “unavailable” for purchase or delivery in the country. Apple also said overnight that it has removed Russian state-controlled outlets RT News and Sputnik News from its App Store around the world except for Russia. Nike Inc (down -3.17%) has also stopped selling products in Russia, according to a message posted on the company’s website. The small capitalisation Russell 2000 shed -1.93%.
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US equity markets modestly weaker as new sanctions imposed on Russia reverberated through financial markets - Dow down -166-points or -0.49%, paring an earlier. JPMorgan Chase & Co (down -4.17%) and Goldman Sachs Group Inc (-2.52%) combined to knock ~100-points off the Dow. Nike Inc (down-1.62%), Visa Inc (-1.44%), and Procter & Gamble (-1.49%) also weighed heavily on the index. A US$1 move in any of the Dow's 30 components equates to a 6.59-point swing. The broader S&P500 -0.24%, with more than >70% of index constituents in the red. Real Estate (down -1.77%), Financials (-1.46%), Consumer Staples (-1.32%) and Materials (-1.18%) all falling over >1%. Energy sat atop the primary sector leaderboard with a +2.57% gain. Tesla Inc rallied +7.48% following reports out of Germany indicating that the company is close to receiving approvals to begin commercial production at its new factory outside of Berlin. A late session rally lifted the technology-centric Nasdaq +0.41%, rebounding from an earlier loss of as much as -1.1%. The small capitalisation Russell 2000 rose +0.35%.
US equity markets rallied on Friday (25 February) as war in Ukraine raged, with investors watching for signs that the conflict with Russia would be contained to the two countries - Dow jumped +835-points or +2.51%, notching its best daily gain since early November 2020. Johnson & Johnson (up +%) and 3M Co (+%). The broader S&P500 +2.24%. Etsy Inc soared +16.21% after the online marketplace’s quarterly results beat analyst estimates. The Nasdaq +1.64%. The small capitalisation Russell 2000 +2.25%.
US equity markets staged a impressive comeback from steep declines earlier in the session, with the technology-centric Nasdaq registering its biggest intraday swing since the throes of the pandemic in March 2020 - Dow up +92-points or +0.28%, erasing an earlier -859-point/-2.6% drop The broader S&P500 gained +1.50%, recovering from an earlier session slide of as much as -2.6%. Information Technology (up +3.47%) and Communication Services (+3.13%) leading the fight back with gains of over >3%. Consumer Staples (down -1.71%) and Financials (-1.17%) were the laggard primary sectors. The Nasdaq rebounded +3.34%, rallying back from an earlier ~3.5% slump. The technology-centric index opened the session in bear market territory, down more than >20% from its record peak in November. Netflix Inc rose +6.14%, Microsoft Corp +5.11%, Alphabet Inc +4.00% and Meta Platforms Inc +4.61%. The small capitalisation Russell 2000 rose +2.64%.
The Dow and S&P500 extended losses into a fifth consecutive session following a late-session sell-off as escalating tensions dragged the benchmark indices to fresh 2022 lows - Dow down -465-points or -1.38%, just avoiding falling into official correction territory. The broader S&P500 pushed further into official correction territory, falling -1.84% and unwinding an earlier rally of as much as +0.9%. Consumer Discretionary (down 3.42%) and Information Technology (-2.56%) led ten of the eleven primary sectors lower. Energy (up +1.01%) was the only primary sector to advance. The technology-centric Nasdaq shed -2.57%, with e-commerce giant Amazon.com Inc down 3.58%, and Apple Inc -2.59%. The Dow and Nasdaq closed below their 24 January intra-day lows of 33,150.33 and 4,222.62 respectively. The small capitalisation Russell 2000 lost 1.82%.
This episode of the Morgans Conversations was with Danny Lessem, CEO and Co-founder of ASX listed Elmo. Danny goes into the history of Elmo, the progress they have made since the peak of Covid-19, the shifting workforce dynamics as well as the recent result. The company is forecasting >$100m of ARR for the full year – a milestone never achieved before by the company.
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Ukraine crisis should temper Fed tightening.
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ukraine #russia
Aurizon CEO, Andrew Harding gives the Morgans network a company update, following their solid 1H22 result.
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US equity markets resumed trading after the Presidents’ Day long weekend firmly on the backfoot as the geopolitical developments between Russia and Ukraine continued to dent investor sentiment - Dow shed -483-points or -1.42% to its lowest close since 18 June last year (33,596.61) after falling more than >700-points earlier in the session. The broader S&P500 lost -1.01% to 4,304.76, the lowest close since 4 October last year and settling in official correction territory (down just over >10% from its 3 January all-time high of 4,796.64). ~76% of index constituents declined. Consumer Discretionary (down -3.04%) led all eleven primary sectors lower. The technology-centric Nasdaq fell -1.23%. Consumer Discretionary (down 3.04%) led all eleven primary sectors lower. The small capitalisation Russell 2000 fell -1.45%.
European bourses relinquished opening gains to settle in the red, with the Automotive sector (down -2.7%) leading the pan-European Stoxx 600 index (which includes UK equities) -1.30% lower. Germany's DAX fell -2.07%. France's CAC lost -2.04%. French car parts group Faurecia SE fell -5.40% despite forecasting a rise in annual sales, adding that it expected semiconductor shortages to ease from the second half of 2022. In broader stock moves, Credit Suisse Group AG fell -3.09% after the Swiss investment bank said that it “strongly rejects” allegations published following a coordinated global media investigation into a mass leak of its client data over previous decades. The leaked information was purported to contain human rights abusers and businessmen under sanctions. In economic data, a flash reading of the IHS Markit manufacturing PMI slipped to 58.4 in February from a final reading of 58.7 in January, below economists’ forecast for an unchanged reading. The eurozone services PMI rose to a five month high of 55.8 in February from 51.1 in January, better than economists’ forecasts for a reading of 52.0. The services business expectations index climbed to 68.7 in February from 67.2. The readings saw a flash reading of the Composite PMI jump to a five-month high of 55.8 in February from 52.3 in January, significantly above median economists forecasts for 52.7. The German producer price index (PPI) rose at its fastest rate since modern records began in January, printing at 25% year-on-year versus 24.2% in December. Energy prices continue to make the biggest upward contribution, up +66.7%. The German Ifo Business Climate index for February is released tonight AEST.
Morgans' Equity Strategist, Andrew Tang breaks down the results so far this reporting season; the beats, the misses, and some upcoming results.
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US equity markets weaker after another volatile session ahead the long weekend that saw tensions between Russia and Ukraine intensify and trillions of dollars in options and futures on stocks, indexes and exchange traded funds (ETF) expire - Dow down -233-points or -0.68%, with Intel Corp (down -5.32%) the biggest index laggard as Bank of America reiterated an ‘underperform rating’ on the company. The broader S&P500 -0.72%, with Information Technology (down -1.10%) leading ten of the eleven primary sectors lower. Consumer Staples (up +0.11%) was the only primary sector to edge higher. Ford Motor Co rose +2.85% amid after Bloomberg News reported that the company is considering separating its electric-vehicle (EV) operation from its legacy car and truck manufacturing, a move seen boosting its competitiveness against singularly EV-focused makes such as Tesla Inc (down -2.21%). The technology-centric Nasdaq lost -1.23%. The small capitalisation Russell 2000 fell -0.93%. Roku Inc tumbled -22.29% in after the streaming company’s issued an underwhelming outlook for the current quarter after the closing bell of the previous session. US equity and bond markets are CLOSED tonight AEST for the Presidents’ Day holiday.
Fresh fears over Russia-Ukraine drove sharp declines for US equity markets, with the technology sector once again bearing the brunt of the losses - Dow dropped -622-points or -1.78%, logging its worst single session performance for the calendar year-to-date. The broader S&P500 shed -2.12%, with 85% of the index constituents declining and the slide ranking among the five worst trading days of the past year for the benchmark index. Information Technology (down -3.06%), Communication Services (-2.96%) and Consumer Discretionary (-2.57%) all declining over >2.65% to lead nine of the eleven primary sectors lower. Consumer Staples (up +0.91%) and Utilities (+0.06%) were the only primary sectors to advance. Cisco Systems Inc gained +2.80 after the networking hardware and software posting better-than-expected fiscal second quarter numbers after the closing bell of the previous session. The technology-centric Nasdaq slumped -2.88%. Nvidia Corp fell -7.56% despite the chipmaker posting better-than-expected adjusted fourth quarter earnings per share and record revenue after the close of Wednesday’s (16 January) session. The small capitalisation Russell 2000 fell -2.37%.
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US equity markets mixed as investors digested the latest Federal Reserve monetary policy meeting minutes and mixed messaging around the Russia-Ukraine tensions - Dow eased -55-points or -0.16%, paring an earlier decline of over >300-points. The broader S&P500 added +0.09%, recovering from an earlier ~0.7% fall. Energy up +0.76%) led ten of the eleven primary sectors higher, with Information Technology (down 0.17%) the only sector not to advance. ViacomCBS tumbled -17.81% to be the worst S&P500 performer overnight after the company reported lower-than-expected quarterly earnings after the close of the previous session and announced it was rebranding itself Paramount Global to focus on streaming. The Nasdaq -0.11%. The small capitalisation Russell 2000 +2.76%.
The Germans are the important players not the Americans.
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US equity markets climbed sharply (as Treasury yields rose and oil prices retreated) amid signs of an easing of tensions over Ukraine, with Russian President Vladimir Putin saying Moscow is ready for talks with North Atlantic Treaty Organisation (NATO) on limits to missile deployments in Europe following a meeting with German Chancellor Olaf Scholz, and following a claim that Russia is pulling back some troops in the area. - Dow up +423-points or +1.22%, with Boeing Co climbing +3.66% The broader S&P500 +1.58%, with Information Technology (up +2.73%) and Consumer Discretionary (+2.08%) advancing over >2% to lead nine of the eleven primary sectors higher. Energy (down -1.39%) and Utilities (-0.55%) were the only primary sectors to settle in the red. The Nasdaq +2.53%. The small capitalisation Russell 2000 +2.83%. In merger and acquisition (M&A) news, Intel Corp rose +1.81% after striking a US$5.4B deal to acquire Tower Semiconductor, as the chipmaker to bolster its manufacturing capabilities.
Morgans Senior Analyst Adrian Prendergast gives insight into the energy and mining sectors, this February reporting season. Stocks covered include; BHP Group (ASX:BHP), Rio Tinto (ASX:RIO), Santos (ASX:STO), and more.
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US equity markets weaker after a choppy session, with stocks whipsawing on various news reports related to Ukraine - Dow fell -172-points or -0.49%, with pharmacy group Walgreens Boots Alliance Inc (down -2.75%), International Business Machines (IBM) Corp -1.91% and energy major Chevron Corp (-1.54%) among the notable drags on the index. The broader S&P500 lost -0.38%, with Energy (down -2.24%) leading nine of the eleven primary sectors lower after topping the primary sector leaderboard last Friday (11 February). Financials (down -1.11%), Health Care (-1.09%) and Real Estate (-1.02%) all fell over >1%. Consumer Discretionary (up +0.58%) and Communication Services (+0.32%) were the only primary sectors to advance. The S&P500 logged its third straight session decline and racked up its biggest three-day drop (-4.09%) since 28 October 2020. The technology-centric Nasdaq was flat, unwinding an earlier ~1% rally and extending its decline over the past three days to -4.8%. The small capitalisation Russell 2000 lost -0.41%. In merger and acquisition (M&A) news, Splunk Inc rose +9.13% after The Wall Street Journal (WSJ) reported that Cisco Systems (down -1.34%) made a takeover offer worth more than >US$20B for the software maker. The offer was made recently and the companies aren’t currently in active talks, the WSJ reported, citing people familiar with the matter. Separately, Lockheed Martin Corp fell -2.33% as it ended its bid to buy Aerojet Rocketdyne Holdings Inc (-5.60%) after the Federal Trade Commission last month sued to block the proposed US$4.4B deal.
Morgans Senior Analyst Dr. Derek Jellinek goes over the key stocks we are looking out for in the Healthcare sector this February Reporting Season. Stocks include; ResMed Inc (ASX:RMD), Pro Medicus (ASX:PME), Healius (ASX:HLS), Virtus Health (ASX:VRT), Monash IVF (ASX:MVF), and CSL Ltd (ASX:CSL).
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US equity markets retreated sharply in Friday’s (11 February) afternoon session (and crude prices jumped), with U.S. National Security Advisor Jake Sullivan advising at a White House briefing that took place ~2-hours before the close of trading that there were signs of Russian escalation at the Ukraine border - Dow down -504-points or -1.43% . The broader S&P500 shed -1.90%, with Information Technology (down -3.01%), Consumer Discretionary (-2.82%) and Communication Services (-2.54%) all falling over >2.5% and leading nine of the eleven primary sectors lower. Energy (up +2.79%) and Utilities (+0.01%) were the only sectors to advance. Exxon Mobil Corp and ConocoPhillips gained +2.5% and +2.3%, respectively. However, American Airlines Group Inc fell -5.88% and Delta Air Lines Inc -3.58%. The Nasdaq dropped -2.78%. Semiconductor stocks, which have been volatile in part due to supply chain issues caused by COVID, were notable underperformers on Friday (11 February), with Advanced Micro Devices (down -10.01%), Nvidia Corp -7.3% and Xilinx Inc (-9.99%) both falling ~10%. The small capitalisation Russell 2000 lost -1.02%. “Buy now, pay later” provider Affirm Holdings Inc plunged -20.67% after the group posted a wider-than-expected fiscal second quarter loss and disappointing third quarter revenue guidance.
US equity markets retreated, with technology stocks under renewed pressure as investors assessed another hot inflation report - Dow down -527-points or -1.47%. However, Walt Disney Co gained +3.35% after recording record first quarter revenue and better-than-expected adjusted earnings per share (EPS) after the close of the previous session. The broader S&P500 lost -1.81%, with Real Estate (down -2.86%), Information Technology (-2.75%) and Utilities (-2.61%) all falling over >2.5% to lead all eleven primary sectors lower. The technology-centric Nasdaq dropped -2.10%. The small capitalisation Russell 2000 fell -1.55%.
US equity markets advanced, underpinned by a further rebound for the technology sector - Dow up +305-points or +0.86% . The broader S&P500 +1.45%, with Communication Services (up +2.45%), Real Estate (+2.38%), Information Technology (2.31%) and Materials (+2.13%) all climbing over >2% to lead all eleven primary sectors higher. The technology-centric Nasdaq +2.08%, settling over >8% above its 27 January closing low Facebook parent Meta Platforms Inc rebounded +5.37% a day after the company’s market capitalisation fell below
Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.
WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart, Target, and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While COVID-related staff shortages are proving to be a challenge, the core Bunnings division remains a solid performer as consumers continue to invest in their homes. We see the recent pullback in the share price as a good entry point for longer-term investors.
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Morgans Analyst Kurt Gelsomino previews the small and mid-cap industrials sector. Key stocks previewed are People Infrastructure (ASX:PPE), Maas Group (ASX:MGH), Tabcorp (ASX:TAH), Jumbo (ASX:JIN), and Alliance Aviation (ASX:AQZ).
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Electricity prices have surged in QLD and dragged NSW along with it despite milder average summer temperatures.
The market share of renewables has grown considerably though, and we don’t see a reversal of the trend of lower coal utilisation in the medium to long term.
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We analyse how bearish US stock market sentiment in fact suggests heathy stock market returns.
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US equity markets rallied, shrugging off the latest climb in Treasury yields - Dow up +372-points or +1.06%, with American Express (up +3.3%) and JPMorgan Chase & Co (+%) notable index performers. The broader S&P500 +0.84%, reversing earlier losses as investors rotated into materials, technology, and financial stocks. It was a broad rally, with gainers in the S&P 500 outnumbering decliners by more than 2 to 1. The Nasdaq +1.28%. Nvidia Corp rose +1.54% after the chipmaker announced that its planned acquisition of chip designer Arm from SoftBank (down -0.9%) had been terminated. However, Facebook parent Meta Platforms Inc fell -2.10%, sending its market capitalisation below
Senior Analyst Nathan Lead previews the infrastructure sector heading into reporting season. Previewing stocks such as Transurban (TCL), Atlas Arteria (ALX), Aurizon (AZJ), Dalrymple Bay Infra. (DBI), Silk Logistics (SLH), APA Group (APA), Qube Holdings (QUB) and Cleanaway (CWY).
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Senior Analyst Alex Lu reveals his key stock picks in the Industrials Sector and provides analysis on Amcor, Orora, Woolworths, Coles, Wesfarmers, Endeavour Group, InvoCare and Reliance Worldwide.
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A weaker start to the new trading week for US equity markets - Dow unchanged . The broader S&P500 eased -0.37% despite another strong session for the Energy sector (up +1.31%). Communication Services (down -2.24%) was the worst performing primary sector overnight along with Information Technology (-0.66%). The Nasdaq down -0.58%. Facebook-parent Meta Platforms Inc fell -5.14% and has dropped ~30% since the company’s fourth quarter result last Wednesday (2 February). Google parent Alphabet Inc (down -2.85%) disclosed that Larry Page, co-founder and current board member, has sold more than $80M worth of shares, a couple of days after the stock surged on the back of a blowout earnings report and stock-split announcement. In filings with the Securities and Exchange Commission after Friday’s (4 January) closing bell, the internet search giant said Mr Page sold 13,889 on 3 February in the open market. The small capitalisation Russell 2000 +0.51%.
Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.
New additions Wesfarmers (ASX:WES), South32 (ASX:S32), Newcrest (ASX:NCM), Seek (ASX:SEK), Beacon Lighting (ASX:BLX), Webjet (ASX:WEB), Pro Medicus (ASX:PME), Atomos (ASX:AMS), MAAS Group (ASX:MGH) and Red 5 (ASX:RED).
Removals Sonic Healthcare Limited (ASX:SHL), Alliance Aviation Services (ASX:AQZ), Panoramic Resources (ASX:PAN), Ramelius Resources (ASX:RMS) and Booktopia Group (ASX:BKG).
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US equity markets mostly firmer on Friday (4 January) - Dow slipped -21-points or -0.06%, with declines in UnitedHealth Group Inc (down -1.15%), Home Depot Inc (-1.41%) and 3M Co (-2.23%) overshadowing solid gains for Goldman Sachs Group Inc (up +2.43%) and Salesforce.com Inc (+3.04%). The broader S&P500 added +0.52%, with the Consumer Discretionary sector (up +3.74%) leading five of the eleven primary sectors higher, underpinned by Amazon.com Inc’s +13.54% jump following the company’s strong fourth quarter result after the closing bell last Thursday (3 February). Some US$11.8B of the US$14.3B fourth-quarter profit it reported was from an investment in Rivian Automotive, which went public in the quarter. Financials (up +1.66%) and Energy (+1.58%) also performed strongly. Materials (down -1.72%) and Real Estate (-1.26%) brought up the rear on Friday (4 February). Ford Motor Co dropped -9.07% after the automaker posted weaker-than-expected fourth quarter earnings after the close of the previous session. The company also confirmed over the weekend earlier reports that it would be rolling back production at some of its plants beginning this week. Chief Executive Jim Farley acknowledged supply-chain problems - such as a shortage of semiconductors - at the auto maker in an interview with Barron’s on Friday (4 January), and said the shortages were adding to rising costs and constraining production. The Nasdaq rallied +1.58% after dipping into the red shortly after the opening bell. Amazon.com Inc broke the record Friday (4 February) for the largest-ever one-day gain in market value (US$191.3B) for a U.S. company - just a day after Facebook parent Meta Platforms Inc (down -0.28%) suffered the largest-ever daily loss in market capitalisation (US$232B). The small capitalisation Russell 2000 rose +0.57%. Snap Inc soared +58.82% after the social media group reported better-than-expected fourth quarter user growth and an upbeat outlook after the close of the previous session.
US equity markets declined as some major technology earnings continued to rattle investor sentiment - Dow dropped -518-points or -1.45% . The broader S&P500 shed -2.44%, snapping a four session rally and recording its biggest daily drop since February 2021. Communication Services tumbled -6.83% to lead ten of the eleven primary sectors lower, while Consumer Discretionary (down -3.57%) and Information Technology (-3.07%) both fell over >3%. Consumer Staples was the only primary sector to advance, eking out a +0.01% gain. PayPal Holdings Inc fell -6.24%, bringing their total decline to just under 30% since the closing bell on Tuesday (1 February) when the payments company warned that a weakening ecommerce environment would slow its growth rate. The technology-centric Nasdaq slumped -3.74%, logging its worst single session decline since September 2020. Meta Platforms Inc (formerly Facebook) tumbled -26.39%, wiping more than >US$230B off its market capitalisation after posting disappointing fourth quarter earnings per share and weaker-than-expected guidance after the closing bell of the previous session. The small capitalisation Russell 2000 fell -1.90%.
US equity markets advanced however there were some steep earnings release-related declines after the closing bell - Dow up +224-points or +0.63% . The broader S&P500 gained +0.94% with Communication Services (up +3.09%) leading ten of the eleven primary sectors higher. Consumer Discretionary (down -0.53%) was the only primary sector to close in the red. PayPal Inc slumped -24.6% after the payments company reported EPS (US$1.11 versus consensus US$1.12) and guidance (expects to earn between US$4.60 and US$4.75 in fiscal 2022, below current forecasts for US$5.25) that fell short of Wall Street estimates. The Nasdaq added +0.50%, with Google parent Alphabet Inc jumping +7.3% following its strong fourth quarter result after the closing bell of the previous session that also saw the company announce a 20-for-1 stock split. Advanced Micro Devices Inc rose +5.1% after the chipmaker also posted a strong fourth quarter result after the close of Tuesday’s (1 February). However, the small capitalisation Russell 2000 fell -1.03%.
High Inflation drives down real wages.
The result of all this stimulus is that US unemployment in December fell to 3.9%. This is full employment on any measure. At this level of a low unemployment, the US economy is running out of people to give extra jobs to.
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US equity markets built on a two-day rally after a volatile January, opening February on a positive note - Dow up +273-points or +0.78% . Goldman Sachs Group Inc and JPMorgan Chase & Co gained +2.64% and +1.72% respectively. The broader S&P500 +0.69%, with Energy returning to the top of the primary sector leaderboard overnight with a +3.54% gain and leading eight of the eleven primary sector lower. More defensive sectors underperformed, with Utilities down -1.28%. The technology-centric Nasdaq rose +0.75%. The small capitalisation Russell 2000 +1.10%.
US equity markets climbed for a second session to close out a tough January that left the S&P500 and Nasdaq nursing their worst month since the onset of the pandemic - Dow rallied +406-points or +1.17% . Boeing Co (up +5.07%) was the top index performer after the airline won a deal with Qatar Airways worth $34B. The broader S&P500 gained +1.89%, with Consumer Discretionary (up +3.81%), Information Technology (+2.68%) and Communication Services (+2.40%) leading all eleven primary sectors higher. Tesla Inc gained +10.68% after Credit Suisse upgraded the electric vehicle maker following the recent pullback and citing robust company fundamentals. The Nasdaq jumped +3.41%. Netflix Inc jumped +11.13% (paring its January loss to -29.1%) after Citi upgraded the stock to buy from neutral, saying that the streaming service has ample pricing power to weather high inflation, and that prevailing equity values don’t reflect material subscriber growth prospects beyond 2023. Chipmaker NVIDIA Corp rallied +7.21%, paring its monthly decline to -16.7%. The small capitalisation Russell 2000 +3.05%. In merger and acquisition (M&A) news, cloud-computing company Citrix Systems Inc (down -3.42%) confirmed weekend press speculation that Elliott Management Corp.’s private-equity arm, Evergreen Coast Capital, and Vista Equity Partners would acquire the company for US$16.5B.
US equity markets rebounded sharply to cap a volatile week that saw investors grapple with the latest monetary pronouncements from the Federal Reserve and geopolitical tensions between Russia and Ukraine - Dow rallied +565-points or +1.65%, logging its best single session performance since 6 December after recovering from an earlier session decline of over >350-points. The broader S&P500 gained +2.43%, recovering from an earlier ~0.8% decline to record its best single session performance since June 2020 and settle ~8% below its most recent all-time peak. The Nasdaq rallied +3.13%. Apple Inc jumped +6.98%, recording its best single session percentage gain since July 31, 2020 after posting its largest single quarter in terms of revenue ever after the close of last Thursday’s (27 January) session, with sales growing over >11% to US$123.9B (versus consensus US$119B) despite supply challenges and the lingering effects of the pandemic. The small capitalisation Russell 2000 gained +1.93%. In merger and acquisition (M&A) news, there were reports over the weekend that cloud-computing company Citrix Systems Inc is close to a deal to be taken private, with Elliott Management Corp.’s private-equity arm, Evergreen Coast Capital, and Vista Equity Partners nearing an agreement to pay US$104 per share ~$13B.
US equity markets logged modest losses following another volatile session that saw the benchmark indices relinquish earlier gains - Dow dipped -7-points or +0.02% after trading more than >600-points higher earlier in the session. The broader S&P500 -0.54% to 4,326.51, settling just above 4,316.905, the level below which would see the index fall into official correction territory (or a fall of at least 10% from its record closing high of ). The Consumer Discretionary sector dropped -2.27% to lead five of the eleven primary sectors lower. Energy sat atop the primary sector leaderboard with a +1.24% gain. The Nasdaq -1.40% to 13,352.78, with the technology centric index on track pace for its longest weekly losing streak since November 2012. The Nasdaq is ~17.6% below its 19 November, 2021 record peak of 16,212.23. Netflix Inc (up +7.51%) continued to climb following confirmation after the close of Wednesday’s (26 January) session that Pershing Square’s Bill Ackman said his firm “recently” purchased more than 3.1M shares in the streaming giant, making it a top-20 holder of the stock. The small capitalisation Russell 2000 -2.29% at 1,931.29, ~21% below its record close of 2,442.74 set on 8 November, 2021 and marking the indice’s first bear market since 9 March, 2020. The latest pullback has the Dow, S&P 500 and Russell 2000 on pace for their worst months since March 2020, while the Nasdaq was sliding closer to its worst month since October 2008.
Earnings trends remain remarkably stable despite the recent Omicron and supply chain disruptions. While the uncertain outlook might temper some good results, we still see scope for upside surprises in February.
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The Fed is supporting the US economy first and fighting US inflation second; ASX 200 fair value is 7350
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Another whipsaw session for US equity markets as investors digested the latest monetary policy pronouncements from the Federal Reserve and the latest round of corporate earnings releases - Dow down -130-points or -0.38%, unwinding an earlier rally of over >500-points. The broader S&P500 slipped -0.15%. The Nasdaq eked out a +0.02% gain, with Microsoft Corp rising +2.85% following their solid fourth quarter result after the closing bell of Tuesday’s (25 January) session. Netflix Inc rose over >3.5% in after hours trading (following a -1.83% fall in the regular session) after Pershing Square’s Bill Ackman said his firm “recently” purchased more than 3.1M shares in the streaming giant, making it a top-20 holder of the stock. The small capitalisation Russell 2000 lost -1.38%.
Senior Analyst, Alexander Mees details his preview for the Retail sector for the upcoming reporting season. As well as his key stock picks and misses.
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US equity markets staged an impressive intra-session comeback overnight albeit there was no specific catalyst for the intraday turnaround - Dow up +99-points or +0.29%, logging its first advance in seven sessions and roaring back from an earlier -1,115 point or -3.25% tumble. It marked the biggest intra-day reversal for the Dow since the wild trading of March 2020. The broader S&P500 added +0.28% to 4,410.13 after falling ~4% and into official correction territory (down over >10% from its 3 January record closing high of 4,796.56) earlier in the session. The index staged its sharpest snapback after being down to end positive since 23 October, 2008. 17 stocks in the S&P500 recorded intra-day price swings of at least 10%, including Moderna Inc (down -1.7%) and Nvidia Corp (-0.01%). Consumer Discretionary rose +1.21% to lead eight if of the eleven primary sectors higher. Utilities (down -1.09%) brought up the rear. The S&P500 is still down -7.47% in January and on pace for its worst monthly performance since March 2020. The technology-centric Nasdaq settled +0.63% higher, snapping a four session losing streak and recovering from an earlier slump of as much as -4.9%. The session marked the first time since the aftermath of the financial crisis in 2008 that the Nasdaq Composite had been down more than >4% intraday and closed up. Netflix Inc (down -2.60%) continued to slide after reporting slowing subscriber growth after the close of last Thursday’s (20 January) session. The small capitalisation Russell 2000 rallied +2.29%. Kohl’s Corp soared +36.02% after the department store retailer confirmed that it had received buyout offer. The Wall Street Journal had reported over the weekend that a consortium backed by activist hedge fund Starboard Value LP has offered ~US$9B (or US$64 per share) to buy the department store chain.
US equity markets retreated on Friday (21 January), with the selling once again intensifying into the close of the session and with technology stocks under fresh selling pressure - Dow down -450-points or -1.30% . The broader S&P500 -1.89% to sit ~8.7% below its 4 January intra-day peak (4,818.62), with Communication Services (down -3.88%) and Consumer Discretionary (-3.10%) falling over >3% to lead nine of the eleven primary sectors lower. Consumer Staples (up +0.02%) was the only primary sector to advance. The Nasdaq dropped -2.72% to 13,768.92. The technology-centric index is down ~15% from its record close on 19 November (16,017.23), nearing the 20% decline from a recent peak that would meet the commonly used definition for a bear market. Netflix Inc slumped -21.79% after reporting slowing subscriber growth after the close of last Thursday’s (20 January) session. Walt Disney Co, with its Disney+ and Hulu services, fell -6.94% and streaming-device maker Roku Inc -9.10%. The small capitalisation Russell 2000 lost -1.78%.
US equity markets sold off in the final hour of trading, once again relinquishing an earlier rally - Dow down -313-points or -0.89%, falling for a fifth straight session having climbed over >400-points earlier in the day. The 30-stock average closed below its 200-day moving average for the first time since December 2021. The broader S&P500 -1.10% to 4,482.73, settling below 4,500 for the first time since October last year after relinquishing an earlier +1.53% rally. Consumer Discretionary (down -1.94%), Materials (-1.49%), Information Technology (-1.33%), Industrials (-1.10%) and Communication Services (-1.14%) all dropped over >1% to lead ten of the eleven primary sectors lower. The Utilities sector (up +0.14%) was the only primary sector to advance. The Nasdaq -1.30%, giving up an earlier rally of as much as +2.1% and pushing further into official correction territory. The small capitalisation Russell 2000 -1.88%. Peloton Interactive Inc slumped -23.93% to US$24.22 per share after the stationary bike maker announced it will temporarily halt production of its bikes and treadmills due to waning demand as it tries to control costs. The news saw the stock drop below its September 2019 initial public offer price of US$29 per share. The stock hit an all-time intraday high of US$171.09 on 14 January of last year.
US equity markets relinquished earlier session gains to settle lower, with technology stocks under fresh pressure despite some respite from rising US Treasury yields - Dow down -340-points or -0.96%, with economic bellwether Caterpillar Inc (down -3.10%) and Boeing Co (-3.52%) among the key drags on the index. Goldman Sachs Group Inc fell a further -2.0% (following a -6.97% drop in the previous session) after reporting a fall in fourth-quarter profit due to weak trading activity a day earlier. The broader S&P500 shed -0.97%, with Consumer Discretionary (down 1.81%), Financials (-1.65%), Information Technology (-1.37%), Real Estate (1.21%) and Industrials (-1.10%) all dropping over >1% to lead nine of the eleven primary sectors lower. The more defensive Consumer Staples (up +0.68%) and Utilities (+0.46%) sectors were the only primary sectors to close higher, The Nasdaq lost -1.15% to settle ~10.7% below its most recent record closing high in November 2021 and hence pushing the technology centric index into official correction territory. It marked the Nasdaq’s first close in correction territory since March last year and its 66th correction since 1971. The small capitalisation Russell 2000 fell -1.49% to a 52-week low of 2,062.78.
US equity markets returned from the holiday long weekend on the backfoot, with technology stocks under renewed pressure amid a fresh climb in bond yields - Dow dropped -543-points or -1.51% . The broader S&P500 shed -1.84%, with Information Technology (down -2.49%) and Financials (-2.30%) both down over >2% and leading nine of the eleven primary sectors lower. Energy (up +0.40%) was the only primary sector to advance, tracking the latest gains on crude markets. Ford Motor Co edged higher in extended trading (after a -3.22% decline in the regular session) after it said it has realized a US$8.2B gain in the fourth quarter related to its investments in Rivian Automotive Inc (down -8.49%) following the electric-vehicle maker’s November initial public offering. The Nasdaq tumbled -2.60% to 14,506.90, hitting its lowest level in three months. The technology-centric index sits more than >10% from its most recent high and closed below its 200-day moving average for the first time since April 2020. Meta Platforms Inc fell -4.14% and Amazon.com Inc -1.99%. The small capitalisation Russell 2000 dropped -3.06%. In merger and acquisition (M&A) news, Microsoft Corp fell -2.4% after announcing the software giant will buy video game company Activision Blizzard (up +25.88%) in an all-cash transaction (US$95 per share) valued at US$68.7B.
European bourses climbed, with the media sector (up +1.9%) leading the pan-European Stoxx 600 index (which includes UK equities) +0.70% higher. Germany's DAX added +0.32%. France's CAC gained +0.82%. In broader stock moves, Credit Suisse Group AG fell -2.26% after the Swiss investment bank announced on Sunday (16 January) that Chairman António Horta-Osório had resigned following a board investigation into his travel and personal conduct. Mr Horta-Osório joined the Credit Suisse board less than a year ago In economic data, the ZEW Economic Sentiment Index for the eurozone/Germany for January is released tonight AEST.
Major bank stocks weighed on US equity markets on Friday (14 January) to cap a volatile week - Dow fell -202-points or -0.56%, dragged lower by declines for investment banks Goldman Sachs Group Inc (down -2.52%) and JPMorgan Chase & Co (-6.15%), and credit card and travel services group American Express Co (-2.82%) . The broader S&P500 eked out a +0.08% gain, with Energy gaining +2.44% to extend a strong week for the sector. Real Estate (down -1.18%) and Financials (-1.01%) both fell over >1% to be the worst performing sectors. Casino stocks climbed after Macau’s government announced on Friday (14 January) it would allow just six casino licenses in the gambling hub. Las Vegas Sands Corp jumped +14.15% and Wynn Resorts Ltd +8.60%. The Nasdaq rose +0.59%. Netflix Inc rose +1.25% after announcing a price increase for U.S. and Canadian subscribers. The small capitalisation Russell 2000 edged +0.14% higher.
US equity markets retreated as the rebound for technology sector ran out of steam - Dow fell -177-points or -0.49%, unwinding an earlier session gain of more than >200-points. Boeing Co rose +2.97% following a Bloomberg News report that the company’s 737 Max could resume service in China as soon as this month. The broader S&P500 -1.42%, with Information Technology (down -2.65%) and Consumer Discretionary (-2.08%) both falling over >2% to lead eight of the eleven primary sectors lower. More defensive sectors outperformed, with Utilities up +0.45% and Consumer Staples +0.22%. Tesla Inc fell -6.75%. However, Ford Motor Co gained +2.25% and saw its market capitalisation top US$100B for the first time. The rally comes as the company plans to increase electric vehicle production, including the Mustang Mach-E crossover and an upcoming electric version of its best-selling F-150 pickup. Deutsche Bank also named Ford one of its top 2022 automotive stock picks. The technology-centric Nasdaq tumbled -2.51%, snapping a three session rally. Microsoft Corp down -4.23% and Amazon.com Inc -2.42%. The small capitalisation Russell 2000 lost -0.74%.
US equity markets logged modest gains after the December consumer inflation report largely matched economists’ expectations - Dow added +38-points or +0.11% . Global healthcare major Merck & Co Inc (down -0.58%) and biotechnology company Amgen Inc (-0.27%) capped the index’s advance. The broader S&P500 edged +0.28% higher, with Materials (up +0.95%) leading eight of the eleven primary sectors higher. Health Care (down -0.26%) was the only primary sector to close in the red. Tesla Inc gained +3.93% despite a teenager, calling himself a 19-year-old security specialist and hacker, claiming that he had hacked into the software systems of nearly two dozen Tesla electric-powered vehicles and had limited control over them. The technology-centric Nasdaq extended its rebound into a third session, settling with a +0.23% gain. The small capitalisation Russell 2000 shed -0.82%.
US equity markets advanced, with technology stocks consolidating the late rally of the previous session - Dow up +183-points or +0.51% . International Business Machines (IBM) Corp fell 1.60%, paring an earlier session decline of more than >5% that came after analysts at UBS downgraded the stock (lowering their price target to US$124 from US$136) citing concerns about revenue growth following the company’s spinoff of managed infrastructure-service business Kyndryl Holdings Inc and IBM’s ability to compete in the cloud market. Boeing Co (up +3.21%) said that it won orders for 909 planes in 2021 but delivered only around 280 passenger jets, falling behind Airbus SE (+0.42%) and relying more on its cargo jets and military versions of commercial planes. Including cancellations, Boeing secured 535 net new orders, including older deals for 56 planes that it now considers more likely to be fulfilled. Airbus on Monday (10 January) said it delivered 611 jets in 2021 and won orders for 771, or 507 net of cancellations. The broader S&P500 +0.92%, with Energy (up +3.41%) returning to the top of the leaderboard and leading eight of the eleven primary sectors higher. Exxon Mobil Corp gained +4.21%. Information Technology (+1.21%), Materials (+1.11%), Consumer Discretionary (+1.03%) and Communication Services (+1.02%) all gained over >1%. Utilities (down -0.92%) was the worst performing primary sector overnight. American Airlines Group Inc climbed 1.22% after the carrier updated its fourth-quarter guidance to reflect a performance that turned out to be not as bad as expected. The airline said it now expects revenue to be down ~17% compared with the fourth quarter of 2019, before the start of the pandemic, better than previous guidance of down 20%. The company flew 61.1B total available seat miles in the quarter, down -13% versus the prior guidance of down 11% to 13%. The company expects cost per available seat mile (CASM), a measurement of efficiency, to be up +13% to 14% compared to the fourth quarter of 2019, compared with earlier guidance of up 8% to 10%. The technology centric Nasdaq gained +1.41%, with Amazon.com Inc rising +2.40%, Apple Inc +1.68% and Nvidia Corp +1.52%. The small capitalisation Russell 2000 +1.05%.
US equity markets logged modest losses, with major technology stocks rallying in the afternoon session to recoup earlier steep declines - Dow down -163-points or -0.45% . The broader S&P500 slipped -0.14%, with Industrials (down -1.15%) and Materials (-0.99%) leading eight of the eleven primary sectors lower. Health Care (up +1.04%), Information Technology (+0.10%) and Communication Services (+0.02%) were the only primary sectors to advance. The Nasdaq inched +0.05% higher, recovering from a loss of -2.72% earlier in the session that saw the technology centric index trade more than >9% below its record closing high from 19 November (16,057.44) and almost enter official correction territory for the first time since 8 March, 2020. It marked the Nasdaq’s biggest intraday comeback since 28 February, 2020, according to Dow Jones Market Data. The Nasdaq Composite also managed to avoid a close below its 200-day moving average (14,688.73). The benchmark hasn’t closed below its 200-day moving average since 21 April, 2020, according to FactSet data. The small capitalisation Russell 2000 lost -0.40%. Lululemon Athletica Inc fell -1.91% after the company said the omicron variant had hurt its fourth-quarter results. Abercrombie & Fitch Co rallied over >6.5% in extended trading despite lowering its guidance for fourth-quarter sales. The fashion retailer said that it saw strong demand from consumers over the holidays but that it didn’t have enough inventory to sell (particularly at its Hollister and Gilly Hicks lines).
US equity markets retreated after a choppy session as investors digested a lacklustre December jobs report albeit one that in unlikely to be damaging enough to give central bankers reason to pause what has been expressed as a plan to tighten financial policy sooner and faster than had previously been expected - Dow dipped -5-points to 36,231.66, recovering from an intra-session low of 36,111.53. The broader S&P500 eased -0.41%, with Consumer Discretionary (down -1.65%) and Information Technology (-1.01%) falling over >1% to lead seven of the elven primary sectors lower. Energy (up +1.45%) and Financials (+1.15%) were once again the leading primary sector performers. The Nasdaq lost -0.96% to 14,935.90, hitting an intraday low of 14,877.63. The technology-centric index sits ~7% below its most recent (19 November) peak of 16,057.44 (and hence ~3% from official correction territory). The small capitalisation Russell 2000 lost -1.20%. Retailer Dick’s Sporting Goods Inc rose +1.08% after lifting their full-year earnings per share (EPS) (to $13.70 to US13.79, up from previous guidance for $12.88 to 13.06; adjusted EPS is expected to be US$15.50 to US15.60 compared with previous guidance for US$14.60 to US14.80 and current consensus analyst forecasts for US$15.35) and same-store sales (SSS) outlook (for growth between 25.8% to 26.1%, up from previous guidance for an increase between 24% to 25% and versus current consensus for 25.8% growth). Some analysts suggested that consumers had likely completed more holiday shopping early due to widespread news reports of supply chain disruptions that could lead to stock shortages.
US equity markets retreated after a choppy session as investors continued to rotate out of technology stocks - Dow down -171-points or -0.47%. The broader S&P500 slipped -0.10%, with Materials (down -1.24%), Health Care (-1.21%) and Utilities (-1.05%) all falling over >1 and leading six of the eleven primary sectors lower. Energy (up +2.29%) sat atop the primary sector leaderboard overnight, with Financials (+1.55%) also trading strongly. T-Mobile US fell over >1.5% in extended trading after reporting fourth-quarter postpaid phone net additions - a closely watched metric for wireless companies - came in at 844K, lower than the consensus Wall Street analysts’ average forecast for ~868K. The technology-centric Nasdaq dipped-0.13%, relinquishing a modest bounce in the closing minutes of the session. Apple Inc lost -1.67%, Amazon.com Inc -0.67%, and Google-parent Alphabet Inc -0.07%. However, Meta Platforms (formerly Facebook Inc) gained +2.56% The small capitalisation Russell 2000 added +0.56% after falling -3.30% in the previous session. James Hardie Industries Plc fell -4.31% after announcing it has fired Jack Truong as chief executive for code-of-conduct violations and appointed director Harold Wiens as interim Chief Executive Officer (CEO). The building materials supplier also raised its fiscal-year profit expectations, in part because of strong expectations for growth in the U.S. homebuilding market. The company now expects adjusted net income for its fiscal year through March, 2022, to be between US$605M and US$625M, an increase on earlier guidance of between US$580M and US$600M.
US equity markets retreated, tumbling into the close after the minutes of the Federal Reserve’s December monetary policy meeting suggested investors need to gear up for potentially tighter U.S. monetary policy and prompted a strong rotation out of technology stocks and into businesses more tightly linked to the economic recovery - Dow down -393-points or -1.07% after hitting a fresh record intra-day high (36,952.65) earlier in the session, logging its first decline of 2022. Salesforce.Com Inc dropped -8.28% following a downgrade from investment bank UBS. The broader S&P500 shed -1.94% - the index’s worst daily decline since 26 November last year - with Real Estate (down -3.22%) and Information Technology (-3.13%) both falling over >3% to lead all eleven primary sectors lower. The Nasdaq dropped -3.34%, recording the biggest single session loss for the technology-centric index since 25 February last year. Google parent Alphabet Inc closed down 4.6% at US$2,755.50, off more than >7.6% from its 18 November closing high of US$2,996.77. The small capitalisation Russell 2000 fell -3.30%.
Banking and industrial stocks powered the Dow Jones Industrial Average to a fresh record closing high overnight as worries about the Omicron variant of the coronavirus subsided, while a fall in heavyweight technology stocks dragged the S&P 500 and the Nasdaq indices lower - Dow up +215-points or +0.59% to 36,800, touching a fresh intraday peak of 36,934.84. Investment banks Goldman Sachs Group Inc (up +3.07%) and JP Morgan Chase & Co (+3.79%), and integrated payments giant American Express Co (+3.21%) were among the leading Dow performers and among those companies seen to be beneficiaries of rising interest rates. The broader S&P500 dipped -0.06% to 4,793.54 after scaling a fresh record intra-day high (4,818.62) earlier in the session. Energy (up +3.10%) was the leading primary sector performer for a second straight session, while Financials (+2.60%) and Industrials (+2.09%) both gained over >2%. Health Care (down -1.38%) and Information Technology (-1.14%) brought up the rear. Ford Motor Co jumped +11.67% and hit a 21-year high after the auto maker said it plans to nearly double production of its all-electric F-150 Lightning pickups at its Dearborn, Michigan, facility to 150K trucks a year to meet “soaring customer demand.” General Motors Co rallied +7.47% after saying the semiconductor supply issues that have plagued the auto industry improved during the fourth quarter. The company said it delivered 440,745 vehicles in the fourth quarter, down -43% from a year ago, when quarterly retail sales were the best in 13 years. Dealer inventory, including in-transit vehicles on their way to dealers, totalled 199,662 at the end of the fourth quarter, up +55% from a record low of 128,757 at the end of the third quarter. Tesla Inc fell -4.18% after soaring +13.53% in the previous session after releasing a statement on Sunday (2 January) and saying it delivered 308,600 vehicles in the fourth quarter alone, crushing consensus analyst forecasts for 266K. The technology-centric Nasdaq shed -1.33%, under pressure from a fresh rise in bond yields. Apple Inc fell -1.27% to US$179.70 a day after becoming the first public company to reach US$3 trillion in market capitalisation (achieving the milestone after briefly trading above >US$182.86 per share). Advanced Micro Devices lost -3.87%, with Chief Executive Lisa Su announcing new products in an event tied to the annual technology conference in Las Vegas. Ms Su said the company was releasing 20 new Ryzen 6000 series laptop processors beginning in February, and three new Radeon RX 6000S GPUs for thin gaming laptops. Ultrathin gaming laptops were the fastest-growing PC segment, selling at a rate more than three times faster than traditional gaming laptops, Ms Su said.The small capitalisation Russell 2000 slipped -0.16%.
A positive start to 2022 for US equity markets, with both the Dow and S&P500 logging fresh record closing highs - Dow up +247-points or +0.68% to a record closing high 36,585.06. The broader S&P500 rose +0.64% to also scale a record closing peak of 4,796.56, with Energy (up +3.10%) the standout primary sector performer. Consumer Discretionary (+2.76%), Financials (+1.24%) and Information Technology (+1.02%) all gained over >1%. Tesla Inc soared +13.53% after releasing a statement on Sunday (2 January) and saying it delivered more than >936K vehicles in 2021 - 911,209 of which were Model 3 sedans and Model Y SUVs. It marked an 87% increase versus 2020’s totals (when it delivered 499,647 vehicles) and more than the 897K forecast by analysts. The company delivered 308,600 vehicles in the fourth quarter alone, crushing consensus analyst forecasts for 266K. Tesla added that its final delivery numbers are slightly conservative, and may rise slightly after final calculations are made for its fourth-quarter earnings announcement. The Wall Street Journal reported that Tesla’s in-house software engineering helped make it more agile than its rivals at adjusting to the chip shortfall that plagued automakers in 2021. Ford Motor and General Motors rose about 4.8% and 4.3%, respectively. Elsewhere, the Centers for Disease Control and Prevention (CDC) issued a Level 4 notice regarding cruise travel - the highest level, which indicates very high COVID-19 levels. “Avoid cruise travel, regardless of vaccination status,” the agency said in an advisory. “Even fully vaccinated travellers may be at risk for getting and spreading COVID-19 variants.” The CDC reported over >90 cruise ships had COVID-19 cases reported. All but three of those ships were under CDC investigation, including ships operated by Carnival Corp (up +6.9%) and Norwegian Cruise Line Holdings (+6.4%). The Nasdaq rallied +1.20%. Apple Inc (up +2.5% at US$182.01) became the first public company to reach US$3 trillion in market capitalisation. The milestone was achieved after the company briefly traded above US$182.86 per share. Apple first hit the US$2 trillion market cap level on 20 August, 2020 (hitting US$1 trillion for the first time in August 2018). The small capitalisation Russell 2000 gained +1.21%.
US equity markets rallied ahead of Christmas, with the S&P500 sweeping to a fresh record closing high as investors digested some relatively benign US economic and some favourable studies around the relatively muted health impact of the Omicron variant - Dow up +197-points or +0.55% . The broader S&P500 gained +0.62% to 4,725.79, booking its 68th record closing high of 2021 and sitting within 0.4% of its all-time record intra-day peak. Consumer Discretionary (up +1.24%), Industrials (+1.16%) and Materials (+1.01%) all gained over >1% to lead nine of the eleven primary sectors higher. Real Estate (down -0.36%) and Utilities (-0.03%) were the only primary sectors to close in the red. The Nasdaq +0.85%. Microsoft Corp rose +0.45% and Nvidia Corp +0.82%. The small capitalisation Russell 2000 +0.89%. JD.com tumbled -6.92% after Tencent Holdings Ltd said it will substantially reduce its stake in the Chinese internet company.
US equity markets - Dow up +261-points or +0.74%, taking the indice’s two-day rebound to over >800-points or ~2.3%. Caterpillar Inc rose 1.94% after Bernstein upgraded the stock, saying the machinery maker will be a key beneficiary of a rebound in global growth. The broader S&P500 rose +1.02%, with Consumer Discretionary (up +1.73%), Information Technology (+1.33%) and Health Care (+1.17%) all gaining over >1% to lead all eleven primary sectors higher. Tesla Inc jumped +7.49%, with Elon Musk saying in a podcast that he had reached his goal of selling 10% of his shares in the electric vehicle maker to fund enormous tax obligations. A regulatory filing late on Tuesday (21 December) showed that Mr Musk sold a further 583,611 Tesla shares, bringing the total number of shares he has offloaded to 13.5M. Separately, Syrah Resources (SYR.ASX) it has signed an offtake agreement with Tesla for natural graphite from its production plant in Louisiana. The Nasdaq +1.18%. The small capitalisation Russell 2000 added +0.86%. Alibaba Group Holding Ltd’s American Depository Receipts (ADRs) fell -4.20% following reports that China’s IT regulator disciplined the company for failing to report an open-source security vulnerability to the government.
Jay Powell takes the long handle to strike inflation.
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US equity markets rebounded sharply, snapping a three session losing streak and erasing Monday’s (20 December) sell-off - Dow gained +561-points or +1.60% . Nike Inc rallied +6.15% after recording better-than-expected second quarter earnings per share (US$0.83c versus consensus analysts forecasts of US$0.63c) and revenue (US$11.36B versus consensus US$11.25B) after the closing bell of the previous session. The broader S&P500 gained +1.78%, having logged its worst three day stretch (down -3.04%) since September. Energy (up +2.89%), Information Technology (+2.60%), Consumer Discretionary (+2.50%) and Financials (+2.01%) all gained over >2% to lead nine of the eleven primary sectors higher. Utilities (down -0.17%) and Consumer Staples (-0.11%) were the only primary sectors to decline (having been the only sectors to advance a day earlier). Micron Technology Inc jumped +10.54% after the memory-chip maker’s fiscal first quarter adjusted earnings per share, revenue and outlook released after the close of Monday’s (20 December) session topped Wall Street estimates. Advanced Micro Devices Inc rose +6.22%. The Nasdaq +2.40%. The small capitalisation Russell 2000 rallied +2.92%, logging its best single session performance since 20 July.
Thank you to Jane Hunter, Chief Executive Officer of Tritium, for presenting at our final Business Breakfast for the year. Founded in 2001, Tritium designs and manufactures proprietary hardware and software to create advanced and reliable DC fast chargers for electric vehicles. The company will be listed on the NASDAQ in the first quarter of 2022. Find out more about this innovative company: https://tritiumcharging.com/about/
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US equity markets booked a third straight decline as major global cities grappled with surging COVID-19 infections tied to the omicron variant - Dow down -433-points or -1.23%, with Boeing Co (down -2.15%), Goldman Sachs Group Inc (-2.67%) and American Express (-2.57%) among the key drags on the index. The broader S&P500 -1.14%, with Financials (down -1.90%), Materials (-1.82%), Industrials (1.65%) and Consumer Discretionary (-1.65%) all down over >1.5% to lead nine of eleven primary sectors lower. Utilities (up +0.05%) and Consumer Staples (+0.04%) were the only primary sectors to edge higher. Th technology-centric Nasdaq shed -1.24%. The small capitalisation Russell 2000 -1.40%. In merger and acquisition (M&A) news, enterprise software giant Oracle Corp (down -5.15%) announced that it will buy electronic medical records company Cerner Corp (+0.80%) in an all-cash deal for US$95 per share, or ~US$28.3B in equity value.
Peter Hammond, Co-founder of Exto and B3v joins the Bank to the Future podcast to talk all things market places, fintechs and blockchain. Peter has a rich history of investing in emerging technology companies in Australia including investing in every round and being a long term supporter of ASX listed Airtasker. Peter talks about the history of Exto as well as their new venture B3v focusing on blockchain applications and how and why they are excited about the sector.
US equity markets declined to cap a week in which several major central banks acknowledged the threat posed by high inflation, while the Omicron coronavirus variant continued to weigh on sentiment - Dow down -532-points or -1.48% to 35,365.44, touching an intra-session low of about 35,284. It marked the index’s worst single session decline since 30 November. The S&P500 fell -1.03% to 4,620.64, touching an intra-session low of ~4,600 and the broader index’s steepest daily decline since 1 December. Financials (down -2.27%) and Energy (-2.24%) both fell over >25 to lead all eleven primary sectors lower. The Nasdaq dipped -0.07% to settle at 15,169.68, recovering from a session low of ~14,960 (down ~1.5%). Microsoft Corp dipped -0.3%, extending its weekly decline to nearly 5.5%. Google parent Alphabet Inc (down -1.41%) and Apple Inc (-0.65%) both fell more than >4% last week. The small capitalisation Russell 2000 gained +1.0%. Friday’s (17 December) session was ‘quadruple witching’, the simultaneous expiration of single-stock options, single-stock futures, and stock-index options and stock-futures, and end of quarter fund rebalancing. US equity and bond markets are closed on Friday night AEST (24 December) in observance of Christmas.
US equity markets weaker as investors digested the latest monetary policy pronouncements from a number of major global central banks – Dow slipped -30-points or -0.08%, unwinding an earlier rally of over >200-points. Banks helped the Dow outperform on a relative basis, with Goldman Sachs Group Inc rising +1.91% and JPMorgan Chase & Co +1.56%. The broader S&P500 fell -0.87% after briefly trading above its 10 December record closing high (4,687.64) in early trading. Financials (up +1.21%) and Materials (+1.04%) rose over >1% to lead eight of the eleven primary sectors higher. Information Technology (down -2.86%) was the big underperformer. Delta Air Lines Inc declined -2.21% after the carrier set its financial goals for the coming years ahead of its scheduled Capital Markets Day. The Nasdaq tumbled -2.47%, the technology-centric indice’s the biggest one-day point and percentage loss since 28 September. Apple Inc fell -3.93%, Amazon.com Inc -2.56% and Microsoft Corp -2.91%. Major semiconductor stocks Advanced Micro Devices Inc and Nvidia Corp dropping -5.37% and -6.80%, respectively. The small capitalisation Russell 2000 shed -1.95.
US equity markets recovered from earlier session losses to settle with solid gains following the Federal Reserve’s latest monetary policy pronouncements - Dow up +383-points or +1.08% at 35,927.43. The broader S&P500 gained +1.63% to 4,709.85, the second highest close of 2021 after briefly climbing above its 10 December record closing high (4,712.02), with Information Technology (up +2.75%) and Health Care (+2.11%) rising over >2% to lead ten of the eleven primary sectors higher. Energy (down -0.53%) was the only primary sector to close in the red. Visa Inc rose ~0.9% in extended trading after a late filing confirmed the company’s board has authorized a new US$12B share repurchase program. The Nasdaq rallied +2.15%, erasing an earlier ~0.7% decline. The small capitalisation Russell 2000 climbed +1.54%.
We see the expansion of the US budget deficit which leads to the boom in Australian export prices and discover the best is yet to come.
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US equity markets declined following the release of data recording that US wholesale prices rose at a record pace in November and ahead of the Federal Reserve’s latest monetary policy decision - Dow down -107-points or -0.30%, booking its first back-to-back loss for December. The broader S&P500 fell -0.75%, with Information Technology (down -1.64%) and Real Estate (-1.27%) logging declines of over >1% to lead ten of the eleven primary sectors lower. Financials (up +0.62%) was the only primary sector to advance. Tesla Inc fell -0.82% after a regulatory filing revealed that Chief Executive Officer (CEO) Elon Musk had sold a further US$906M worth of his holding in the electric vehicle maker (taking the total amount of shares he as sold thus far to 11.9M). The main reason Mr Musk is selling is to pay the taxes on the exercise of options that expire next summer. Ford Motor Co declined -1.9% following news that by 2030 Toyota would be investing US$35B into battery-powered electronic vehicles, a space where Ford has sought to establish itself as a leader. The Nasdaq -1.14%. Microsoft Corp (down -3.26%) was a major drag on the benchmark indices. Adobe Inc shed -6.60% after JPMorgan published its 2022 outlook report on software technology and issued a series of downgrades, citing high valuations. The small capitalisation Russell 2000 lost -1.06%.
US equity markets retreated amid some profit taking as investors brace for a busy week of central bank meetings - Dow fell -320-points or -0.89%, with Boeing Co (down -3.74%) a notable drag on the index. The broader S&P500 lost -0.91% a day after logging its 67th record closing high of 2021 (4,712.02) and settling ~0.7% from its all time intra-day high. Energy (down -2.77%) and Consumer Discretionary (-2.44%) both fell over >2% to lead seven of the eleven primary sectors lower. More defensive sectors outperformed, with Real Estate (up +1.32%), Utilities (+1.21%) and Consumer Staples (+1.20%) all advancing over >1%. Re-opening plays like airlines (American Airlines Group Inc fell -4.94%, and Delta Air Lines Inc -3.43% and United Airlines Holdings Inc -5.24%) and cruise lines (Carnival Corp down -4.88%) were among the biggest losers overnight. Tesla Inc fell -4.98% to US$966.41, taking the electric vehicle maker’s decline in December to over >14% and putting the stock in official bear market territory, down -21.4% from its 4 November high of US$1,229.91. The Nasdaq shed -1.39%. The small capitalisation Russell 2000 declined -1.27%. Harley-Davidson Inc (up +4.70%) announced that it is spinning off its electric bikes division, LiveWire, and listing it on the stock market through a merger with a blank-cheque company (AEA Bridges Impact Corp, a special purpose acquisition company (SPAC) run by executives of private equity firm AEA Investors and investment group Bridges Fund Management). The deal gives LiveWire an enterprise value of US$1.8B.
US equity markets advanced to cap their strongest week since February - Dow up +216-points or +0.60% . The broader S&P500 gained +0.95% to log its 67th record closing high of 2021 at 4,712.02 and settle ~0.7% from its all time intra-day high. Information Technology (up +2.07%) and Consumer Staples (+2.00%) led all eleven primary sectors higher. Oracle Corp jumped +15.61% to record highs following impressive November quarter earnings after the close of the previous session that showed signs of progress in the company’s transition into a cloud-based software provider. However, Southwest Airlines Co fell 3.76% after Goldman Sachs downgraded the carrier, writing that medium-term inflation pressure is expected to “drive a slower-than-industry return to profitability.” The Nasdaq +0.73%. Apple Inc and Microsoft Corp gained +2.8% and +2.83%, respectively, to provide the biggest boost to the major indexes. The small capitalisation Russell 2000 eased -0.38%.
Chinese steel production Olympic dive this year, rebound next year. Iron ore prices fell with steel production this year. Both will rise next year.
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Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.
New additions this month include Technology One (ASX:TNE), Namoi Cotton (ASX:NAM), HealthCo REIT (ASX:HCW) and People Infrastructure (ASX:PPE).
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US equity markets snapped a three session winning streak ahead of the release of US consumer inflation figures tonight AEST - Dow dipped -0.06% . The broader S&P500 lost -0.72%, with Consumer Discretionary (down -1.70%), Real Estate (-1.36%) and Information Technology (-1.09%) all falling over >1% and leading nine of the eleven primary sectors lower. Health Care (up +0.24%) and Consumer Staples (+0.06%) were the only primary sectors to advance. American Airlines Group Inc fell -0.49% after the company said it’s reducing its schedule due to the fact that it’s still awaiting Boeing Co (-1.64%) Dreamliner deliveries. Tesla Inc fell -6.1% after disappointing some investors who had reportedly optimistically expected the electric vehicle maker to make a major announcement (including a major product announcement and/or stock split). CVS Health Corp gained +4.52% after the company raised its full-year earnings-per-share guidance to at least US$8, up from a previous forecast of between US$7.90 and US$8. The company is also boosting its annual dividend to US$2.20 from US$2 and will execute a US$10B stock buyback program. The Nasdaq -1.71%. The small capitalisation Russell 2000 dropped -2.17.
US equity markets extended their climb into a third consecutive session - Dow edged +35-points or +0.10% higher . The broader S&P500 rose +0.31% to 4,701.21 and within touching distance of its 18 November record closing high of 4,704.54 (and ~0.9% shy of its record intra-day high of 4,473.83). Communication Services (up +0.75%) and Health Care (+0.74%) led eight of the eleven primary sectors higher. Norwegian Cruise Line Holdings Ltd jumped +8.2% to be the biggest gainer in the in the S&P500. Other travel and leisure names also traded strongly, including fellow cruise operator Carnival Corp up +5.51%, and carrier United Airlines Holdings Inc +4.24%. The Nasdaq rose +0.64% to settle within 2% of the technology-centric index’s all time high. The small capitalisation Russell 2000 rose +0.80.
US equity markets consolidated their strong start to the week- Dow up +492-points or +1.40% . The broader S&P500 gained +2.07%, recording its best day since 1 March to sit ~1% away from its all time high. Information Technology (up +3.51%) led all eleven primary sectors higher, with Consumer Discretionary (+2.36%) and Energy (+2.28%) logging gains of over >2%. Tesla Inc rose +4.24% to US$1,051.74, with UBS hiking their target price on the electric vehicle maker to US$1,000 per share and saying it expects “no rival to get even close to Tesla in 2022.” American Airlines Group Inc slipped -0.22% after announcing Doug Parker will retire as Chief Executive Officer (CEO) next year and be succeeded by the company’s president, Robert Isom, on 31 March. Mr Parker will stay on as chairman of American’s board. The Nasdaq jumped +3.03% to log its best single session performance since 9 March. Apple Inc gained +3.54% to US$171.18, buoyed by Morgan Stanley lifting their price target on the technology heavyweight to US$200 (from US$164 previously), citing the company’s commitment to developing augmented and virtual reality technology. The small capitalisation Russell 2000 +2.28%.
Stocks linked to the re-opening economy led a strong start to the week for US equity markets, with the Dow reclaiming the 35,000 level - Dow rallied +647-points or +1.87% to 35,227.03, more than comfortably erasing last week’s -319-point-0.91% decline. The broader S&P500 gained +1.17%, with Industrials (up +1.64%), Consumer Staples (+1.60%), Utilities (+1.53%) and Energy (+1.50%) all logging gains of 1.5%+ to lead all eleven primary sectors higher. Airlines (United Airlines Holdings up +8.32% and American Airlines Group Inc +7.88%) and cruise operators (Royal Caribbean Cruises Ltd up +8.22% and Carnival Corp +8.08%) Tesla Inc fell -0.59% after Reuters reported the U.S. SEC has opened a probe into the electric-car maker over whistleblower claims on solar panel defects. The Nasdaq +0.93%. Nvidia Corp fell -2.14% to US$300.37and into correction territory, closing ~10% below their all time closing high of US$333.76 set on 29 November. Late last Thursday (9 December), the Federal Trade Commission sued to block Nvidia’s $40B acquisition of Arm from SoftBank Group Corp (-8.20%) that has met with several headwinds since it was first announced back in late 2020. Fellow chipmaker Advanced Micro Devices Inc (down -3.44%) fell further into correction territory, now down -13.7% from its most recent closing high of US$161.09. Elsewhere, the US listed shares of Alibaba Group Holdings Ltd logged their largest single-day percentage gain since 8 June, 2017 with a +10.4% rally after a tough recent stretch for numerous Chinese internet stocks. The small capitalisation Russell 2000 gained +2.05%.
A broad sell-off in the technology sector saw US equity markets complete a tumultuous week on softer note, with investors digesting the latest November jobs figures and implications for central bank monetary policy - Dow down -60-points or -0.17%, paring an earlier decline of over >300-points. Boeing Co lost -1.9%. The broader S&P500 lost -0.84% to 4,538.43, falling below its 50-day moving average (4,544) once again. Consumer Discretionary (down -1.84%), Information Technology (-1.65%) and Financials (-1.54%) all down over >1.5%. Tesla Inc fell -6.42%. Airlines (Delta Air Lines Inc down -1.8%) and cruise operators (Norwegian Cruise Line Holdings Ltd down -4.54% and Carnival Corp -3.86%) saw fresh selling pressure. The technology-centric Nasdaq -1.92%. Facebook Inc fell -1.9% to settle more than >20% below its intra-day peak in September. Nvidia Corp fell -4.46% a day after the Federal Trade Commission sued to block the US$40B acquisition of Arm from SoftBank Group Corp (-0.71%). The small capitalisation Russell 2000 -2.13%. Ride-hailing giant Didi Global Inc tumbled -22.18% after announcing that it will delist from the New York Stock Exchange and make plans to list in Hong Kong instead following pressure from the Chinese government. The decision comes less than six months after the company listed in the U.S. (with the stock falling ~44% in that period). SoftBank Corp (up +0.13%) and Uber Technologies Inc (down -5.95%) combined own over >30% of Didi. Other Chinese companies listed on the NYSE came under pressure, with JD.Com Inc down -7.71%, Baidu Inc -7.77% and Alibaba Group Holding Ltd -8.23%.
US equity markets rebounded, with cyclicals clawing back some of their recent sharp falls - Dow rallied +618-points or +1.82% . Boeing Co jumped +7.54% after China cleared the 737 Max to return to fly. The broader S&P500 gained +1.42%, with Industrials (+2.89%), Financials (+2.83%), Energy (+2.81%) and Real Estate (+2.67%) all rebounding over >2% to lead all eleven primary sectors higher. The Nasdaq +0.84%. Apple Inc slipped -0.61% after Bloomberg reported that the company told some of its suppliers there could be slowing demand for iPhone 13 models. It previously expected the reduction in its initial production goal to be made up in 2022 but said that may not materialise now. The small capitalisation Russell 2000 rallied +2.74% a day after marking its first correction since June of 2020.
US equity markets relinquished solid gains to settle lower after the country recorded its first confirmed case of the omicron variant of the coronavirus – the Dow staged a 983-point U-turn to settle -462-points or -1.34% lower at 34,022.04, unwinding an earlier +520-point/+1.5% rally and settling below its 200-day moving average (34,361.27) for the first time since July. Salesforce.Com Inc tumbled -11.74% after the customer relationship management company provided disappointing fourth quarter earnings per share (EPS) guidance after the close of the previous session. The broader S&P500 lost -1.18% to 4,513.04, closing below its 50-day moving average (4,539.32) for the first time since 13 October. Communication Services (down -1.98%) and Consumer Discretionary (-1.86%) both fell over >1.5% to lead ten of the eleven primary sectors lower, with seven sectors logging declines of over >1%. Utilities (up +0.16%) was the only primary sector to close in the black. General Motors Co edged +0.33% higher after the automaker slightly raised its 2021 earnings guidance (to ~US14B from US$11.5B-to-US$13.5B previously) on strong pricing, resilient consumer demand and a stronger-than-expected supply of semiconductor chips. The Nasdaq dropped -1.83% after rallying as much as +1.8% earlier in the session. The small capitalisation Russell 2000 shed -2.18% to mark its first official correction since June of 2020. Some commentators also cited tax loss selling as a factor for the recent weakness.
Fresh concerns about the potentially damaging economic effect of the Omicron coronavirus variant and hawkish comments from Federal Reserve Chair Jerome Powell dragged US equity markets lower - Dow dropped -652-points or -1.86%, with American Express Co (-3.52%) and Salesforce.Com Inc (-3.97%) among the key drags on the index. The broader S&P500 -1.90%. Communication Services (down -3%) led all eleven primary sectors lower, with eight primary sectors logging falls of over >2%. Mastercard Inc (down -2.50%) announced after the closing bell that its directors authorized an +11% dividend increase (to US$0.49c per share) and an US$8B share buyback program. The technology-centric Nasdaq lost -1.55%. Amazon.com Inc (down -1.53%) is reportedly working on custom silicon chips for its hardware network switches to take on Intel Corp (-1.60%) and Nvidia Corp (-2.10%). according to Reuters. The chips, which could help Amazon improve its internal infrastructure as well as AWS, are said to be the result of Amazon’s US$350M acquisition of Israeli chipmaking firm Annapurna Labs back in 2015. Microsoft Corp hosted their Annual General Meeting overnight. The small capitalisation Russell 2000 fell -1.92%.
US equity markets rebounded as President Joe Biden told Americans the fight against the omicron variant of coronavirus won’t involve “shutdowns or lockdowns.” - Dow up +237-points or +0.68% a day after recording its worst daily decline (-905-points or -2.53%) since 28 October, 2020. Walmart Inc lost -1.57% after announcing that it will begin the search for a successor to Chief Financial Officer (CFO) Brett Biggs, who has been with the company for 22 years and became CFO on 31 December, 2015. However, Merck & Co (down -5.39%) was the largest drag on the Dow after Citi downgraded the stock to neutral from buy, saying in a research note that development struggles for the company’s HIV drug were taking a bite out of Merck’s long-term potential. The broader S&P500 gained +1.32%, with Information Technology (up +2.64%) leading all eleven primary sectors higher. Consumer Discretionary (up +1.63%), Utilities (+1.57%), Real Estate (+1.33%) and Communication Services (+1.12%) all rose over >1%. Moderna Inc continued to soar, climbing a further +11.80% overnight. The biotechnology company’s Chief Medical Officer Paul Burton said Sunday (28 November) that Moderna could roll out a reformulated vaccine against omicron early next year. However, Pfizer Inc fell -2.96%. The technology-centric Nasdaq rose +1.88%, with Apple Inc rising +2.19% and Amazon.com Inc +1.63% and Microsoft Corp rose +2.11% ahead of its Annual General Meeting (AGM). Twitter Inc fell -2.74%, unwinding an earlier rally of over >11% following news that Chief Executive Officer Jack Dorsey was stepping down from the role, effective immediately. Parag Agrawal, Twitter’s chief technology officer, will take over the helm. Mr Dorsey will remain a member of the board until his term expires at the 2022 meeting of stockholders, the company said. However, the small capitalisation Russell 2000 slipped 0.18%.
An ugly finish to the shortened Thanksgiving week for US equity markets during a thinly traded, abbreviated Black Friday session as a new COVID variant found in South Africa triggered a shift away from risk assets - Dow dropped -905-points or -2.53%, down over >1,000 points at its worst levels of the session and recording its worst daily decline since 28 October, 2020. The decline for the Dow saw it mark its first close below its 50-day moving average (at 35,261.93) since 14 October. Boeing Co fell -5.41%. The broader S&P500 tumbled -2.27% to 4,594.62, with Energy (down -4.07%) leading all eleven primary sectors lower and with six of those logging falls of over >2.5%. Travel stocks were unsurprisingly under the pump, with Delta Air Lines Inc down -8.34%, United Airlines Holdings Inc -9.57%, American Airlines Group Inc –8.79%, and cruise operators Royal Caribbean Group tumbling -13.22% and Norwegian Cruise Line Holdings Ltd -11.36%. A number of technical/charting analysts cite the 50-day moving average of 4,570 as a key level, along with 4,566 (representing a 38.2% retracement of the rally); and 4,550 (a previous high from early September) and the round figure of 4,500. Tesla Inc slid -3.05% after a report that the company will invest US$188M to expand production capacity at its Shanghai factory. The Nasdaq -2.23%. Microsoft Corp’s (down -2.44%) Chief Executive Officer Satya Nadella sold ~838.6K shares of common stock – or about half of his holding - last week (22 and 23 November) between US$349.22 and US$334.37 per share. The declines for the S&P 500, Dow and Nasdaq Composite represented their worst Black Friday performance since 1950.The small capitalisation Russell 2000 -3.67%. China’s ride-hailing giant Didi Global Inc sank -2.84% after Bloomberg reported that Chinese regulators have asked the firm’s executives to formulate a plan to delist from the U.S.
US bond and equity markets were CLOSED overnight AEST for Thanksgiving Day, while it is an abbreviated session tonight AEST.
Brainard is brilliant, but Powell a better leader.
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US equity markets pushed modestly higher as the recent jump in bond yields took a breather, lifting some pressure on the technology sector - Dow dipped -9-points or -0.0% . The broader S&P500 added +0.23%. The Nasdaq +0.44%. The small capitalisation Russell 2000 +0.15%. US bond and equity markets CLOSED tonight AEST for Thanksgiving Day followed by an abbreviated session on ‘Black Friday’ (26 November).
US equity markets mixed, with Federal Reserve Chair’s Jerome Powell’s nomination for a second term weighing on the technology sector (which is often more sensitive to changes in interest rate policy) - Dow gained +195-points or +0.55% , with investment banks Goldman Sachs Group Inc (up +2.56%) and JPMorgan Chase & Co (+2.39%) trading strongly for a second straight session. The broader S&P500 edged +0.17% higher, with Energy (up +3%), Financials (+1.55%) and Real Estate (+1.10%) up over >1% to lead eight of the eleven primary sectors higher. The technology-centric Nasdaq lost -0.50%. The small capitalisation Russell 2000 slipped -0.15%.
US equity markets mixed after a late session sell-off - Dow added +17-points or +0.05%, unwinding an earlier rally of more than >300-points. However, investment banks Goldman Sachs Group Inc (up +2.26%) and JPMorgan Chase & Co (+2.13%) both help up well following the announcement that President Joe Biden has nominated Federal Reserve Chair Jerome Powell for a second four-year term. The broader S&P500 eased -0.32, with Communication Services (down -1.24%) and Information Technology (-1.14%) leading five of the eleven primary sectors lower. Energy (+1.77%) and Financials (1.43%) sat atop the primary sector leaderboard. The technology-centric Nasdaq fell -1.26% as investors eyed potential rising interest rates. The small capitalisation Russell 2000 fell -0.50%.
Concerns over a resurgence of COVID-19 saw US equity markets struggle on Friday (19 November) although technology stocks pushed higher – Dow down -269-points or -0.75%, with Boeing Co (down -5,77%) a notable drag. The broader S&P500 eased -0.14%, with Energy (down -3.91%) and Financials (-1.11%) the worst performing primary sectors. Information Technology (up +0.77%) headed the gainers lists. Carriers (United Airlines Holdings fell -2.78% and Delta Air Lines Inc -1.07%) and cruise operators (Norwegian Cruise Line Holdings Ltd -2.08% and Royal Caribbean Cruises Ltd -2.98%) were under pressure. The Nasdaq added +0.40% to log its 46th record closing high of 2021 at 16,057.44. Intuit Inc (up +10.08%) and Micron Technology Inc (+7.80%) were among the best performers on the technology-centric index. The small capitalisation Russell 2000 fell 0.86%.
GARDA Property Group (ASX:GDF) is a real estate investor, developer, and manager with investments along the eastern seaboard of Australia, from Cairns to Melbourne.
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Realestate #Industrialreal #Propertymanagement
US equity markets weaker as inflation concerns continued to drag on sentiment - Dow down -211-points or -0.58% . The broader S&P500 eased -0.26%, with Energy (down -1.78%) leading seven of the eleven primary sectors lower. More defensive sectors outperformed, with Real Estate up +0.65%, Consumer Discretionary +0.59% and Health Care +0.16%. The Nasdaq -0.33%. PayPal Holdings Inc fell -4.34%, with analysts at Bernstein downgrading the company to “market perform”. Bernstein noted that PayPal has a reputation for disrupting the payments ecosystem, but it “now risks getting disrupted” itself and cited various competitive pressures for the digital payments giant (including the “increasing aggregation” of e-commerce activity on large platforms like Amazon.com Inc (up +0.21%) and Shopify Inc (down -2.25%). The small capitalisation Russell 2000 shed -1.16%.
We look at the US credit market to find two indicators of stock market health.
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US equity markets climbed, buoyed by a strong October retail sales report and better-than-expected third-quarter results from big box retailers Home Depot and Walmart - Dow added +55-points or +0.15% . The broader S&P500 rose +0.39%, with Consumer Discretionary (up +1.38%) and Information Technology (+1.07%) both gaining over >1%. Tesla Inc rebounded +4.08%. It was a strong session for electric vehicle (EV) companies more broadly, with EV start-up Lucid Group Inc soaring +23.71% after executives told investors that reservations for its first vehicles are up and 2022 production plans are still on track. That pushed its market cap to about US$89B, past that of Ford Motor Co (down -0.35%) but still far below Tesla’s, which hit $1 trillion this year. Elsewhere, Rivian Automotive Inc jumped +15.16% to see its market capitalisation climb above Volkswagen AG (+0.54%). Rivian’s value has doubled to US$153B since floating only last Wednesday (10 November).The Nasdaq gained +0.76%, with Qualcomm Inc jumping +7.89% after the wireless technology company issued bullish forecasts at an investor’s conference in New York and said that its growth doesn’t rely on a relationship with any single customer, such as its modem chip sales to Apple Inc (+0.67%). Qualcomm currently supplies wireless chips for Apple’s devices but said it expects to provide just 20% of the modem chips needed for the 2023 iPhone. “This company can no longer be defined by a single market and a single end-customer,” Qualcomm Chief Executive Officer (CEO) Cristiano Amon observed. The small capitalisation Russell 2000 edged +0.17% higher.
Strategist Andrew Tang unpacks the structural investment thematic of this generation. Speak to your Morgans adviser for more ideas on exposure to companies and funds leading the way to Net Zero.
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Netzero #Investment #Funds #Stocks #ETF
A muted start to the new trading week for US equity markets, with the benchmark indices little changed as Treasury yields climbed and investors eye quarterly reports from big retailers later in the week - Dow dipped -13-points or -0.04% . Boeing Co rose +5.49% following news that Saudi Arabian Airlines is in talks with Airbus SE (up +1.76%) and Boeing for a wide-body jet order. At the same time, Emirates announced an order for two Boeing 777 Freighters at the 2021 Dubai Airshow. The broader S&P500 unchanged, with Utilities (up +1.31%) and Energy (+0.79%) leading seven of the eleven primary sectors higher, while Health Care (down -0.64%) and Materials (-0.46%) were the worst performing primary sectors overnight. Tesla Inc (down -1.94% at US$1,013.39) continued to slide – and briefly fell below
KGL Resources MD Simon Finnis discusses the implication of the recent high grade copper +20% intersections at depth, for the Rockface copper-gold-silver deposit, already a good grade 3.7% copper resource, and provides an update as KGL moves to a final investment decision.
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Copper #Mining #Gold
Chloe White from Genesis Block is the latest guest on the Bank to the Future Podcast. Genesis Block delivers deep insight, guidance, and strategy in financial market regulation, policy development, and crypto-asset market analysis. Chloe was responsible for driving the Commonwealth Government’s five year plan to grow the blockchain sector. In this role, Chloe succeeded in delivering seven programs to support startups and promote blockchain technology. Choe talks about the blockchain use, crypto currencies, government regulation, influencers as well as why she is excited about the future.
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Blockchain #Cryptocurrencies #Markets #CWB
US equity markets rallied but till logged their first weekly decline in six weeks amid heightened inflation concerns - Dow up +179-points or +0.50% to close at 36,100.31. Johnson & Johnson climbed +1.2% after the world’s largest healthcare company announced that it is splitting in two, breaking off its consumer health division (which is forecast to generate US$15B in sales this year) into a separate publicly traded company in 18-to-24 months time. It marked the latest in a wave of well-known global companies to announce plans to split up last week, following US industrial conglomerate General Electric Co (+0.55%) and Japan’s Toshiba, in an effort to slim down and focus on individual businesses. The broader S&P500 gained +0.72%. Tesla Inc fell -2.83% to extend its weekly decline to -15.4% - the electric vehicle company’s worst week in 20-months – as Chief Executive Officer (CEO) Elon Musk commenced with his plans to sell a huge block of his holding in the company. A Securities and Exchange Commission filling late last Wednesday (10 November) showed Mr Musk sold more than 4.5M shares for close to US$5B, and a further 1.2M shares worth more than US$1.2B on Friday (12 November). Mr Musk sold shares in part to satisfy tax obligations related to an exercise of stock options (he faces an August 2022 deadline to exercise more than 20M additional options or let them expire worthless. The Nasdaq rose +1.00%. Facebook-parent Meta Platforms Inc rallied +4.01%, while Apple Inc (+1.43%), Microsoft Corp (+1.29%) and Amazon.com Inc (+1.52%) each added more than >1%. The small capitalisation Russell 2000 added +0.11%.
US equity markets mixed in the wake of the October inflation report released in the previous session - Dow down -159-points or -0.44% . Walt Disney Co fell -7.07% - its worst daily performance since June 2020- after the company reported after the closing bell of the previous session, with fiscal fourth quarter earnings per share and revenue falling short of Wall Street’s expectations, while Disney+ added a less-than-expected +2.1M subscribers. The broader S&P500 edged +0.10% higher, with Materials (up +0.85%) leading six of the eleven primary sectors higher. Tesla Inc lost -0.42%, with a Securities and Exchange Commission filling showing Chief Executive Officer (CEO) Elon Musk sold more than 4.5 million shares of the electric-vehicle maker for close to US$5B. The technology centric Nasdaq rebounded +0.57%. Chipmakers NVIDIA Corp (up +3.16%) and Advanced Micro Devices (+4.39%) logged solid gains. The small capitalisation Russell 2000 +0.82%.
Beacon Lighting’s international business is small but growing fast. The company has articulated a strategy to make its international revenue a more significant part of group sales and has launched a consumer website in the US and a sales channel in the domestic Chinese market. Morgans believes that growth outside Australia can complement the expansion of Beacon Lighting’s retail and trade channels in its home market to underpin earnings growth over the medium-term that investors have yet to factor in.
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Lighting #Fans #Retail
We look at the RBA statement on monetary policy for November, where growth is strong but inflation is not.
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Economy #RBA #Inflation
US equity markets retreated as investors digested the latest inflation data that recorded that consumer prices rose at their fastest pace in more than 30-years in October - Dow shed -240-points or -0.66% . The broader S&P500 fell -0.82%, with Energy (down -3.00%) leading eight of the eleven primary sectors lower. Information Technology (down -1.68%) and Communication Services (-1.25%) both fell over >1%. The Utilities sector was the best performing primary sector overnight with a +0.70% gain. The technology-cetnric Nasdaq dropped -1.66%. The small capitalisation Russell 2000 fell 1.55%.
US equity markets retreated amid some profit taking ahead of the release of US inflation data - Dow down -112-points or -0.31% . The broader S&P500 -0.35%, snapping an eight session losing streak and a day after posting its 64th record closing high of 2021. Consumer Discretionary (down -1.35%) led five of the eleven primary sectors lower. PayPal Holdings Inc tumbled -10.46% a day after the digital payments company issued weaker-than-expected fourth-quarter and full-year guidance. Tesla Inc (down -11.99%) continued to slide after founder Elon Musk last weekend asked in a Twitter poll whether he should sell 10% of his stock, with nearly 58% of respondents saying ‘yes’. General Electric Co gained +2.65% after announcing plans to break into three separate companies focused on healthcare, energy and aviation. GE Healthcare will be spun off in 2023, with GE retaining a 19.9 per cent stake in the unit. GE Renewable Energy, GE Power and GE Digital will be combined into one energy-focused company that will be spun off in 2024. Once these transactions are completed, the original GE will focus on aviation. The Nasdaq fell -0.60%. The small capitalisation Russell 2000 lost -0.65%. In merger and acquisition (M&A) news, DoorDash Inc (down -0.59%) - which posted both record revenue and orders in the third quarter as demand for delivery continued - also announced it is buying Finland food-delivery company Wolt in an all-stock deal worth more than >US$8B.
Modest gains for the benchmark US equity indices after Congress approved an infrastructure spending package, with the S&P500 logging its first close above >4,700 - Dow up +104-points or +0.29% to a record closing high 36,432.22. Caterpillar Inc rose +4.07% to be the leading index performer. The broader S&P500 inched +0.09% higher to log its eighth consecutive record closing high at 4,701.72, marking the longest series of all-time highs since 1997, according to Dow Jones Market Data. Materials (up +1.23%) led six of the eleven primary sectors higher, while more defensive sectors underperformed. Utilities (down -1.45%) and Consumer Discretionary (-1.38%) both fell over >1%. Tesla Inc fell -4.84% founder Elon Musk rattled investors over the weekend, asking in a Twitter poll whether he should sell 10% of his stock as a response to political clamouring to tax unrealised gains from equity holdings (58% of respondents said yes). Airlines climbed (Delta Air Lines Inc up +0.81%, United Airlines Holdings Inc +0.76% and American Airlines Group Inc +1.97%) after the US ended its pandemic-era international travel ban overnight. The Nasdaq inched +0.07% higher to 15,982.36 and registered its 11th straight gain and the longest such win streak since 26 December, 2019. Advanced Micro Devices Inc soared +10.14% after the company announced new products during its Accelerated Data Centre Premiere and disclosed that Facebook parent Meta Platforms Inc would use its Epyc processors. Chipmaking peer Nvidia Corp rose +3.40% as the company’s annual GPU Technology Conference kicked off overnight. The small capitalisation Russell 2000 also inched +0.07% higher.
Morgans Adviser Chris Titley chats to Sam Budiselik , MD of ASX listed Cash Converters. Cash Converters is known throughout Australia, but many may not know their involvement in lending, and how they are assisting customers in Australia and beyond. Sam talks about the history of the company, how they navigated through 2020-21, and why he is excited about the future.
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Dr Ralph Craven is the Independent Non Executive Chairman of Genex Power and spoke at the Morgans Business Breakfast in mid-October, 2021.
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Power Batteries #Renewables
Fresh record highs for the benchmark US equity indices to cap a solid week, buoyed by the latest October jobs figures and encouraging results from Pfizer for its antiviral COVID-19 pill - Dow up +204-points or +0.56% to close at a new peak of 36,327.95. The broader S&P500 added +0.37% to log its seventh consecutive gain and settle at a record high of 4,697.53. Energy (up +1.42%) led ten of the elven primary sectors higher on Friday night AEST (5 November), with Health Care (down -1.03%) the only primary sector to close in the red. Pfizer Inc jumped +10.86% after the pharmaceutical company said its COVID antiviral reduced the risk of hospitalizations or death by 89% in a Phase 2/3 study. Pfizer board member Dr. Scott Gottlieb said that the pandemic could be over in the U.S. by the time President Biden’s workplace vaccine mandates take effect in early January. Pharmaceutical peer Merck & Co closed -9.86% lower as investors appeared to shun Pfizer rivals. However, the news boosted classic reopening plays, with United Airlines Holdings Inc rallying +7.26% and American Airlines Group Inc +5.77%. Expedia Group Inc jumped +15.63% a day after the company said renewed travel demand boosted its top and bottom lines higher than analysts had expected. Chief Executive Officer (CEO) Elon Musk n Saturday (6 November) asked his 62.5M Twitter followers to determine the future of a chunk of his Tesla Inc (down -0.64%) holdings. Mr Musk previously said he was likely to sell “a huge block” of his options in the fourth quarter. The Nasdaq +0.020% to an all-time closing high of 15,971.59. The small capitalisation Russell 2000 +1.44%. For the week, the Dow rose 1.42%, the S&P 500 gained +2.00% and the Nasdaq advanced +3.05%.
The S&P500 and Nasdaq logged their sixth consecutive record closing highs - Dow slipped -33-points or -0.09% snaping a run of four record closing highs as Goldman Sachs Group Inc (down -2.35%) and JPMorgan Chase & Co (-1.31%). The broader S&P500 rose +0.42% to a record close of 4,680.06, with Information Technology (up +1.54%) and Consumer Discretionary (+1.49%) both rising ~1.5% to lead six of the eleven primary sectors higher. Financials (down -1.34%) and Real Estate (-1.14%) declined over >1% to be the worst performing primary sectors. The technology-centric Nasdaq gained +0.81% to 15,940.31. NVIDIA Corp soared +12.04%, recording its largest single-day percentage gain in more than 19 months and topped US$700B in market capitalisation for the first time, as optimism builds ahead of the chipmaker’s annual GTC developer conference on Monday (8 November). Qualcomm Inc jumped +12.73% after the chipmaker forecast better-than-expected profit and revenue for its current quarter after the close of the previous session on soaring demand for chips used in phones, cars and other internet-connected devices. The small capitalisation Russell 2000 dipped -0.08% after climbing to a fresh record closing high a day earlier.
Morgans’ Stockbroker Ben Rodney speaks to Sunstone (STM) MD Malcolm Norris about their exciting new copper-gold porphyry discovery in Ecuador and the upcoming catalysts which will drive the share price.
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Benchmark US equity indices pushed further into record territory, logging a fourth straight session of record closing highs – the longest such streak since 5 October, 2017 - - Dow up +105-points or +0.29% to a record closing high of 36,157.58, recovering from an earlier -160-point slide. The broader S&P500 +0.65% to record settlement of 4,660.57 The Nasdaq +1.04% to an all-time high of 15,811.58. The small capitalisation Russell 2000 gained +1.8% to a record closing high of 2,404.28.
Nathan Lead, Senior Analyst at Morgans, discusses Atlas Arteria (ASX:ALX), an addition to our Morgans Best Ideas (November 2021).
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Roads #Tolls #Shares
Morgans Best Ideas are those stocks we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures. . New additions this month include Westpac Banking Corp (ASX:WBC) and Atlas Arteria (ASX:ALX). Removals ANZ Banking Group (ASX:ANZ), Technology One (ASX:TNE) and Senex Energy (ASX:SXY). Equity Strategist Andrew Tang explains.
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Equity #Investment #ALX #WBC #Shares #Investment
Another round of fresh record closing highs for all three benchmark US equity indices amid better-than-expected earnings reports ahead of a Federal Reserve policy statement tomorrow morning AEST - Dow up +139-points or +0.39% at 36,052.63, settling above 36,000 for the first time. It was 71 trading days since the Dow last cleared a 1,000-point milestone, marking the longest stretch between milestones since the stretch of 218 trading days between the Dow’s move between 29,000 and 30,000 completed in November of last year, according to Dow Jones Market Data. The close above 36,000 marks the Dow’s sixth 1,000-point milestone of 2021, the most ever seen in a single year. Salesforce.com Inc. (up +0.06%) has been the biggest contributor to the Dow’s rise since 35,000, while Visa Inc (down-1.56%) has been the biggest drag. The broader S&P500 rose +0.37% to 4,630.65. Materials (up +1.10%) led nine of the eleven primary sectors higher, with Energy (down -1.01%) and Consumer Discretionary (-0.62%) the only primary sectors to close in the red. Telsa Inc fell -3.03% after Chief Executive Officer (CEO) Elon Musk questioned the factors driving the recent rally for the electric vehicle maker that has seen the company’s market capitalisation surge past US$1 trillion in market capitalisation since an announcement on 25 October that Hertz Global Holdings Inc (up +2.66%) will by 100K Model 3 vehicles. Mr Musk tweeted ““If any of this is based on Hertz, I’d like to emphasise that no contract has been signed yet,” adding “Tesla has far more demand than production, therefore we will only sell cars to Hertz for the same margin as to consumers.” Separately, Tesla is recalling about 11,700 2017 to 2021 Model S, Model 3 and Model X vehicles, and 2020 to 2021 Model Y vehicles, because a communication error with the software may cause unexpected activation of the emergency brake system, according to a notice filed with the National Highway Traffic Safety Administration. The technology-centric Nasdaq added +0.34%. Nikkei reported that Apple Inc (up +0.71%) has cut back production of iPad tablets to allocate more components to the iPhone 13 amid signs that the global chip supply crunch may be hitting the company harder than previously indicated. Chipmaker Nvidia Corp rose +2.22% to usurp Warren Buffet’s investment vehicle Berkshire Hathaway Inc (up 0.59%) as the seventh largest US company by market capitalisation (with its market cap rising to ~US$660B). Nvidia has gained almost US$530B in market value off its pandemic low set 16 March, 2020, according to Dow Jones Market Data. It marked the first time since December 2019 that all three benchmark indices logged record closing highs for three straight sessions, according to Dow Jones Market Data. The small capitalisation Russell 2000 edged +0.16% higher to an all time high of 2,361.86. Bed Bath & Beyond Inc skyrocketed over >75% in the extended session after the retailer announced a partnership to have some of its “most sought-after” baby and home items available at Kroger Co.’s (+0.62%) stores and on-line and said it was ahead of its share buyback schedule.
Remember our recommendation is for the best value bet rather than the highest probability of winning. Michael Knox details his perspective with the Morgans network.
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Fresh record closing highs for all three benchmark US equity indices to kick off November and ahead of a busy week of US corporate earnings and key economic data and central bank meetings - Dow up +94-points or +0.26% to 35,913.84, briefly trading above >36,000 for the first time earlier in the session and with Boeing Co (up +3.65%) and Dow Inc (+2.63%) among the leading index performers. The broader S&P500 edged +0.18% higher to 4,613.67, with Energy (up +1.55%) and Consumer Discretionary (+1.46%) lifting eight of the eleven primary sectors and offsetting declines for Information Technology (down -0.08%). Tesla Inc jumped +8.49% The Nasdaq gained +0.63% to 15,595.92 The small capitalisation Russell 2000 jumped +2.65%, recording its best single session performance since 27 August and within 0.1% of establishing its first record high since March. Harley-Davidson Inc jumped +9.07% after the European Union (EU) removed retaliatory tariffs on U.S. products including whiskey, power boats and company's motorcycles. The motorcycle maker was facing a European retaliatory tariff of 56%.
Record closing highs for all three benchmark US equity indices to close out the week and month, with a late rally seeing the market retrace earlier losses and shrugging off some disappointing corporate results from some major technology companies after the close of last Thursday’s (28 October) session - Dow up +89-points or +0.25% to settle at a fresh record closing high of 35,819.56. The broader S&P500 edged +0.19% higher to record close of 4,605.38, with Health Care (up +0.95%), Communication Services (+0.83%) and Information Technology (+0.43%) all advancing. Real Estate (down -1.19%) was the worst performing primary sector. The Nasdaq rose +0.33% to scale a fresh record peak of 15,498.39 Apple Inc fell -1.82% Microsoft Corp (up +2.24%) usurped Apple (market capitalisation of ~US$2.458 trillion) as the most valuable U.S. company by market capitalisation for the first time in nearly 16 months, with the latest gain leaving the software giant with a market capitalisation of ~US2.49 trillion. Amazon.com Inc fell -2.15% The small capitalisation Russell 2000 dipped -0.03%.
Record closing highs for both the S&P500 and Nasdaq amid a broad-based rally despite some lacklustre economic data - Dow up +240-points or +0.68% to 35,730.48 The broader S&P500 gained +0.98% to a record closing high of 4,596.42, with all of Real Estate (up +1.447%), Consumer Discretionary (+1.37%), Industrials (+1.29%), Financials (+1.24%), Information Technology (+1.06%) and Materials (+1.02%) gaining over >1% and with all eleven primary sectors advancing. Ford Motor Co jumped +8.70% The technology-centric Nasdaq rallied +1.39% to log its first record closing high since 7 September at 15,448.12. Facebook Inc rose +1.51% after announcing a rebranding which the company says reflects a hard pivot into what it calls the “next evolution of social technology,” where mixed reality brings people together to play games, exercise, watch concerts together, work remotely and communicate. The social media giant has changed its name to Meta, relegating Facebook to one of the company’s three major platforms - which also includes Instagram and WhatsApp - rather than the overarching brand amid whistleblower revelations and regulator recriminations. The small capitalisation Russell 2000 rebounded +2.02%.
US equity markets fell as some of the recent momentum around positive corporate earnings faded - Dow down -266-points or -0.74%, snapping a three session winning streak that had lifted the index to a record closing high (35,756.88) a day earlier. Visa Inc shed -6.92% after the payments company issued a conservative revenue outlook during as part of its quarterly earnings report after the close of the previous session. There were also reports that the company was facing a Justice Department probe around its relationships with fintech firms. The broader S&P500 fell -0.051%, also snapping a three session winning streak. The Nasdaq eked out a +0.01% gain. Google-parent Alphabet Inc (up +4.96%) and Microsoft Corp (up +4.21% to a record close of US$323.17) after both technology majors posted strong quarterly results after the closing bell of the previous session. The small capitalisation Russell 2000 shed -1.90%.
Michael Knox discusses how a slowing Chinese GDP is a structural problem, because of slowing labour force growth.
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ChineseGDP #China #Chineselabour #Chineseeconomy
Both the Dow and S&P500 eked out fresh record highs ahead of another wave of notable corporate earnings releases after the close of the session - Dow up +16-points or +0.04% to 35,756.88, after rising to an record intraday high of 35,892.92 (up ~150-points) in earlier trading. The broader S&P500 edged +0.08% higher to 4,574.79, after hitting a fresh intraday record of 4,598.53. The Nasdaq +0.09% to settle at 15,235.71, briefly trading as high as 15,384 and topping its closing record of 15,374.33 set on 7 September. Facebook Inc fell -3.92% after the company reported better-than-expected third-quarter earnings per share (US$3.22 versus consensus US$3.19) even as revenue (US$29.01B) undershot analysts’ estimates (US$29.57B) after the close of the previous session and also said it’s increasing its share buyback program by US$50B. The small capitalisation Russell 2000 lost -0.72%.
Both the Dow and S&P500 hit fresh record highs as earnings season kicked in to high gear in one of the heaviest reporting weeks of the quarter, with bellwethers in multiple sectors poised to announce results - Dow up +64-points or +0.18% to 35,741.15, after establishing a new all-time intraday record at 35,787.04. The broader S&P500 added +0.47% to 4,566.48 and also hit a intra-day record high of 4,572.62, with nine of the 11 major S&P sectors advancing. Consumer Discretionary (up +2.11%) and Energy (+1.41%) were the best performing primary sectors overnight. Utilities (down -0.43%) and Financials (-0.16%) were the only primary sectors to settle in the red. Tesla Inc jumped +12.66% to its own new record of US$1,024.86 per share and breached >US$1 trillion in market capitalisation, after car rental firm Hertz Global Holdings Inc placed an order for 100,000 Tesla cars, while Morgan Stanley raised its price target on the stock to US$1,200 from US$900 per share. Tesla joins a select group of mega tech stocks that include Apple Inc (down -0.03%) with a market cap of ~US$2.5 trillion, followed by Microsoft Corp (-0.33%) at ~US$2.3 trillion, Google-parent Alphabet Inc (up+0.11%) at ~US$1.8 trillion and Amazon.com Inc (-0.46%) at US$1.7 trillion. Tesla also edged out Facebook Inc (with a current market cap of ~US$900B) to become the fifth largest US company by market cap. The Nasdaq +0.90%. PayPal Inc gained +2.70% after the payments company scrapped plans to buy the digital pinboard site Pinterest Inc (down -12.71%) for as much as US$45B.The small capitalisation Russell 2000 rose +0.93%.
We think GDP Fell 0.8% in Q3 2021 but will be up by 5% in the year to Q3 2022.
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Economy #AusGDP #Finance
US equity markets mixed on Friday night (22 October) as investors weighed strong corporate earnings against persistent concerns over elevated global inflation - Dow up +73-points or +0.21% to a record closing high of 35,677.02. The broader S&P500 dipped -0.11%, with falls for Communication Services (down -2.28%) and Consumer Discretionary (-0.66%) offsetting gains for Financials (up +1.33%) and Energy (+0.93%). Tesla Inc extended its rally, rising +1.7% after hitting a new intraday high (US$909.68) earlier in the morning session that lifted the electric vehicle maker’s market capitalisation above >US$905B (which is more than almost half of the auto industry put together). The Nasdaq lost -0.82%. Quarterly results late last Thursday (21 October) from Snapchat parent Snap Inc (down -26.59%), which forecast a weaker-than-expected holiday season and expressed concerns over digital advertising, prompted a decline in internet and social-media related stocks, including Google-parent Alphabet Inc (down -3.04%) and Facebook Inc (-5.05%). Intel Corp dropped -11.68% following a soft quarterly result after the close of the previous session that the company blamed on weaker-than-expected sales amid an industry-wide component shortage. However, Netflix Inc (up +1.78%), Ebay Inc (+5.75%) and Microsoft Corp (-0.51%) all touched fresh record intra-day highs. The small capitalisation Russell 2000 eased -0.21%.
US equity markets firmer as strong corporate earnings bolstered the mood on Wall Street - Dow dipped -6-points, with IBM (down -%) The broader S&P500 added +0.30% to 4,459.78, booking its first record closing high in seven weeks after logging an intra-day record of 4,551.44. Consumer Discretionary (up +1.38%) led seven of the eleven primary sectors higher. Energy (down -1.85%) was the worst performing primary sector as US crude prices pulled back from seven year highs overnight. The Nasdaq rose +0.62%. The small capitalisation Russell 2000 added +0.28%.
US equity markets ticked higher amid some mixed reports around how corporates are managing inflationary pressures and supply chain issues - Dow gained +152-points or +0.43%, touching an all-time high of 35,669.69 earlier in the session. The broader S&P500 added +0.37% to log a sixth consecutive session advance, with Utilities (up +1.56%), Real Estate (+1.55%) and Health Care (+1.45%) all climbing over >1% and leading eight of the eleven primary sectors higher. Information Technology lagged with a -0.29% decline. The Nasdaq dipped -0.05%. The small capitalisation Russell 2000 rose +0.61%. In merger and acquisition (M&A) news, PayPal Holdings Inc fell -4.91% following reports that the company is in late-stage talks to buy social media company Pinterest, with a price of US$70 per share apparently mooted according to Bloomberg (which would value Pinterest at ~US$39B).
What we expect is playing out now. The new multi-year record prices for oil and LNG is starting to penetrate that pessimism and resulting in a ‘catch up’ rally across Australian oil & gas stocks. Morgans senior analyst Adrian Prendergast provides a full update on the oil & gas sector.
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Resources #Stocks #markets #Commodities
US equity markets advanced as major companies continued to deliver solid third quarter earnings - Dow up +199-points or +0.56% . Walmart Inc gained +2.1% after Goldman Sachs added the big-box retailer to its conviction buy list, pointing to improved profitability and increased share of the U.S. grocery market saying the stock could rally nearly 40%. The broader S&P500 extended its rally into a fifth straight session and climbed back above >4,500, rising +0.74% to 4,519.63. Health Care (up +1.31%), Utilities (+1.26%) and Energy (+1.11%) all rose over >1% to lead ten of the eleven primary sectors higher. Consumer Discretionary (down -0.29%) was the only primary sector to close in the red. The technology-centric Nasdaq rose +0.71%. Alibaba Group Holdings Ltd popped +6.1% after the company announced it has developed a custom computer chip that it will use to power its data centre servers. The small capitalisation Russell 2000 added +0.36%.
Heavyweight technology names lifted US equity markets however global sentiment was dampened by official China data recording the slowest pace of economic growth in a year in the third quarter - Dow eased -36-points or -0.10%, paring an earlier decline of -123-points. The broader S&P500 added +0.34%, extending gains into a fourth straight session and representing its longest win streak since 25 August. Consumer Discretionary (up +1.20%) and Information Technology (+0.85%) led seven of the eleven primary sectors higher. More defensive Utilities (down -0.96%) and Health Care (-0.72%) lagged the broader market. The Nasdaq gained +0.84%, also marking its fourth consecutive rise and its longest win streak since 7 September. Facebook Inc and Apple Inc were the biggest drivers of the gains, gaining 3.3% and 1.2% respectively. Apple Inc announced new Mac personal computers featuring the company’s custom chips and an upgraded set of AirPods, filling out its holiday line-up. The small capitalisation Russell 2000 edged +0.10% higher.
Better-than-expected corporate earnings continued to push US equity markets higher on Friday (15 October), with Goldman Sachs Group Inc (up +3.8%) capping a strong week for bank earnings - Dow up +382-points or +1.09% . The broader S&P500 +0.75% to 4,471.37, settling comfortably above its 50-day moving average (4,436.74). Alcoa Corp soared +15.2% after the aluminium producer reported stronger-than-expected results, and announced it would pay its first dividend since 2016 and launch a US$500M share buyback. The Nasdaq added +0.50%. The small capitalisation Russell 2000 eased -0.37%.
There is more to monetary policy than just increasing the cash rate. Michael Knox discusses how there are many more variable elements to consider when understanding monetary policy.
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Quantitativeeasing #Economy #Cashrate
Strong, broad-based gains for US equity markets overnight following largely upbeat corporate earnings, including from some major banks and a couple of Dow components - Dow up +535-points or +1.56% to sit ~2.4% below its all-time high hit in early September.. The broader S&P500 gained +1.71%, climbing back above its 50-day moving average for the first time in 12 trading sessions. Materials (up +2.43%) and Information Technology (+2.28%) rose over >2% to lead all eleven primary sectors higher in what was the best single day breadth reading for the index since late June. The Nasdaq +1.73%, logging its best single session gain since 20 May as Microsoft Corp (up +2.17%), Apple Inc (+2.02%) and Google-parent Alphabet Inc (+2.55%) all rising over >2%. The small capitalisation Russell 2000 gained +1.44%.
US corporate tax payments and US political uncertainty are generating a modest equity market correction that could continue in November. Michael Knox discusses his views with the Morgans network.
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ASX #Economy #USCorporateTax #Form1120
US equity markets mixed as investors digested September inflation data, the latest Federal Reserve meeting minutes and the start of the third quarter earnings season - Dow flat, recovering from an earlier -260 point slide. The broader S&P500 edged +0.30% higher and snapped a three session losing streak, with Utilities (up +1.14%) leading nine of the eleven primary sectors higher. Financials (down -0.64%) and Energy (-0.12%) were the only primary sectors to settle in the red. The Nasdaq rose +0.73%. Apple Inc slipped -0.42% following a Bloomberg News report filed a day earlier that the company will likely cut iPhone 13 production by up to 10M phones in 2021, following the company’s forecast of making 90M earlier in the year, because of the ongoing global chip shortage. Advanced Micro Devices Inc gained +3.92% and was among notable performers amid ongoing headlines about the global chip shortage. The small capitalisation Russell 2000 added +0.34%.
US equity markets closed in the red for a third straight session, with selling again picking up into the close and with investors eying some key economic and corporate earnings releases tonight AEST - Dow down -143-points or -0.42%. Boeing Co (down -1.27%) reported that airplane deliveries rose to 35 in September following an uptick in domestic travel, albeit its 787 programme remains hobbled by structural defects. The broader S&P500 lost -0.37%, with Communications Services (down -1.05%) and Information Technology (-0.51%) leading six of the eleven primary sectors lower. American Airlines Group Inc rose +0.79% after forecasting a smaller-than-expected adjusted net loss for the third quarter. Real Estate was the best performing primary sector overnight with a +1.34% rise. The Nasdaq dipped -0.05%. Apple Inc declined in extended trading following a Bloomberg News report that the company will likely cut iPhone 13 production by up to 10M phones in 2021, following the company’s forecast of making 90M earlier in the year, because of the ongoing global chip shortage. Broadcom Inc (down -1.43%) and Texas Instruments Inc (-2.53%) also fell in the extended session after an unidentified source told Bloomberg that both companies are having trouble delivering enough components to Apple. However, Qualcomm Inc rose over >1% in extended trading after the mobile chip maker announced plans for a US$10B stock buyback. The company noted the total is in addition to $900 million in repurchase authority from a July 2018 program. The small capitalisation Russell 2000 rose +0.61%.
US equity markets retreated, with an earlier rally fizzling and selling picking up pace in the final hours of the session as investors continued to ponder inflation challenges amid a fresh rise in energy prices and as the US third quarter earnings season officially kicks off later this week - Dow down -250-points or -0.72%, unwinding an earlier rally of over >200-points. The broader S&P500 -0.69%, with Communication Services (down -1.45%), Utilities (-1.35%) and Financials (-1.01%) all down over >1% to lead nine of the eleven primary sectors lower. Real Estate (up +0.17%) and Materials (+0.03%) were the only primary sectors to advance. Southwest Airlines Co fell -4.17% after cancelling nearly 2K flights over the weekend and leaving hundreds of passengers stranded. The airline blamed the widespread cancelations on weather “challenges” in some of its Florida airports, compounded by “unexpected” air-traffic control issues in the same areas however others were sceptical about the reasons offered. The Nasdaq fell -0.64%. The small capitalisation Russell 2000 lost -0.56%.
US equity markets closed a volatile week little changed on Friday night AEST (8 October) after another underwhelming jobs report left many investors scratching their heads - Dow dipped -9-points . The broader S&P500 slipped -0.19% despite a +3.13% gain for the Energy sector that lifted Exxon Mobil +2.51%, Chevron Corp +2.24% and Conocophillips +4.77%. R eal Estate fell -1.12% to lead nine of the eleven primary sectors lower. Goldman Sachs chief U.S. equity strategist David Kostin said in a note to clients that his year-end S&P 500 price target for 2021 is still 4,700, which is nearly 7% above its current level. The Nasdaq eased -0.51%. The small capitalisation Russell 2000 fell -0.76%.
US equity markets advanced for a third day as lawmakers neared an agreement that would avert a debt-ceiling breach for at least two months - Dow up +338-points or +0.19%, with Visa Inc (up +1.78%), Nike Inc (+2.05%) and Home Depot Inc (+2.16%) The broader S&P500 gained +0.83%. Consumer Discretionary (up +1.50%), Materials (+1.35%) and Health Care (+1.23%) led ten of the eleven primary sectors higher, with Utilities (down -0.53%) the only sector to settle in the red. The Nasdaq +1.05%. The small capitalisation Russell 2000 rose +1.59%.
Our Model of the US oil price is based on EIA oil stocks, and the pause announcement. The chance of the pause announcement having no impact on the oil price is 2 chances in 10,000. Michael Knox Morgans Chief Economist discusses with the network.
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Oil #Commodities #Economy #Biden
Adrian Prendergast, Senior Analyst at Morgans, discusses Woodside Petroleum (ASX:WPL), an addition to our Morgans Best Ideas (October 2021).
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Resources #Stocks #markets #Commodities
Alex Lu, Analyst at Morgans, discusses Endeavour Group (ASX:EDV), an addition to our Morgans Best Ideas (October 2021).
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ASX #Stocks #Retail
Morgans Best Ideas are those stocks we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures. This month we add Endeavour Group and Woodside Petroleum. Equity Strategist Andrew Tang explains.
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Commodities#Retail#Shares#Stocks
US equity markets climbed, buoyed by Senate Minority Leader Mitch McConnell saying the Republican party would support an extension of the federal debt ceiling into December - Dow rose +102-points or +0.30%, staging a 560-point U-turn to record its best intraday comeback since 21 December last year. The broader S&P500 gained +0.41%, recovering from an earlier session decline of -1.27%. Utilities (up +1.53%) and Consumer Staples (+1.00%) led nine of the eleven primary sectors higher. The Nasdaq settled +0.47% higher after falling as much as -1.20%, with Amazon.com Inc up +1.27%, Microsoft Corp +1.51% and chipmaker Nvidia Corp +1.22%. The small capitalisation Russell 2000 fell -0.60%.
US equity markets rallied despite surging energy prices intensifying inflationary pressures, sending Treasury yields higher - Dow up +312-points or +0.92%. Goldman Sachs Group Inc gained +3.12% as Treasury yields continued to climb. The broader S&P500 gained +1.05%, with Financials (up +1.77%), Communication Services (+1.59%), Information Technology (+1.46%) and Industrials (+1.10%) all climbing over >1% to lead nine of the eleven primary sectors higher. Real Estate (down -0.86%) and Utilities (-0.19%) were the only primary sectors to close in the red. The Nasdaq +1.25%, with Netflix Inc rallying +5.21%, Amazon.com Inc +0.98%, Apple Inc +1.42% and Google parent Alphabet Inc +1.77%. Facebook Inc (up +2.06%) rebounded from a -4.89% slide in the previous session (the worst single-day percentage decline since a -5% fall on 9 November, 2020) following a national broadcast of a whistleblower’s allegations that the social media network placed profits before safety and after widespread outages of Facebook services. The small capitalisation Russell 2000 added +0.49%.
US equity markets retreated amid a fresh rotation out of technology stocks amid rising bond yields - Dow lost -324-points or -0.94%. Merck & Company Inc rose +2.09%, building on an +8.37% gain in last Friday’s (1 October) session after the pharmaceutical major and partner Ridgeback Biotherapeutics said their oral antiviral treatment for COVID-19 reduced the risk of hospitalization or death by 50% for patients with mild or moderate cases. Merck is now planning to submit an application for an emergency use authorization for the treatment from the Food and Drug Administration and will also seek it from other regulatory bodies around the world. The broader S&P500 shed -1.30%, taking the index more than halfway to an official correction (defined as drop 10% from their most recent high). Information Technology (down -2.36%) and Communication Services (-2.11%) leading eight of the eleven primary sectors lower. The Energy sector (up +1.63%) was the leading primary sector performer, tracking strong gains on crude markets. Exxon Mobil Corp rose +1.30% and Conocophillips +1.98%. The Nasdaq lost -2.14%. Facebook Inc shed -4.89%, logging the worst single-day percentage decline since a -5% fall on 9 November, 2020 following a national broadcast of a whistleblower’s allegations that the social media network placed profits before safety. The social media’s woes were further compounded by a widespread outage of Facebook services, including Instagram and WhatsApp. Separately, Facebook filed a motion to dismiss the Federal Trade Commission’s amended antitrust lawsuit against the company, saying the agency’s complaint still lacked evidence Facebook violated antitrust laws. Elsewhere among major technology names, Apple Inc fell -2.46%, Amazon.com Inc -2.85%, Microsoft Corp -2.07% and Nvidia Corp -4.87%. However, Tesla Inc rose +0.81% after the company announced over the weekend that it had delivered 241,300 electric vehicles during the third quarter of 2021, topping analysts forecasts for the delivery of around 221K. The small capitalisation Russell 2000 lost -1.08%.
US equity markets kicked off October with solid gains as news of a new oral treatment for Covid-19 boosted shares of companies tied to the economic recovery - Dow gained +483-points or +1.43% . The broader S&P500 rose +1.15%, with Energy (up +3.30%) leading ten of the eleven primary sectors higher. Communication Services (up +1.78%), Materials (+1.60%), Financials (+1.59%), Information Technology (1.44%), Industrials (+1.41%) and Real Estate (+1.04%) all climbed over >1%. Utilities (down -0.04%) was the only sector to close in the red as the more defensive sectors generally underperformed last Friday (1 October). The technology-centric Nasdaq rose +0.82%, snapping a five session losing streak. The small capitalisation Russell 2000 +1.69%.
US equity markets fell sharply amid volatile end-of-month and quarter rebalancing activity and as inflation concerns continued to weigh on sentiment - Dow dropped -547-points or -1.59% . Boeing Co fell -2.41% despite a broker (Bernstein) upgrade, while Goldman Sachs Group Inc fell -1.78% and Home Depot Inc -2.57%. The broader S&P500 lost -1.19%, with Industrials (down -2.11%) leading all eleven primary sectors lower overnight. Eight primary sectors recorded declines of over >1%. The Nasdaq -0.44%. The small capitalisation Russell 2000 fell -0.94%. In merger and acquisition (M&A) news, Merck & Co Inc (up +0.03%) struck a deal to buy drugmaker Acceleron Pharma (down -1.86% at US$172.10) for US$180 per share in cash or US$11.5B. It had been reported earlier this month that Acceleron was close to a sale agreement, and reports earlier this week had named Merck as the suitor.
US equity markets posted a modest rebound overnight a day after the S&P500 booked its worst daily percentage decline (-2.04%) since 12 May despite longer dated US Treasury yields climbing for a seventh straight session - Dow rose +91-points or +0.26%. Boeing Co rose +3.18% after winning a follow-on contract from the US Department of Defense valued at up to US$23.8B to provide services to a fleet of C-17 Globemaster III transport aircraft over a 10-year period. Separately, Boeing’s 737 MAX test flight for China’s aviation regulator was successful last month and the planemaker hopes a two year grounding will be lifted this year, according Boeing China President Sherry Carbary. The broader S&P500 edged +0.16% higher, with the more defensive Utilities (up +1.30%), Consumer Staples (+0.87%) and Health Care (+0.77%) sectors leading the rebound. Materials (down -0.39%) and Information Technology (-0.10%) were among the worst performing primary sectors overnight. The Nasdaq slipped -0.24%, booking its fourth straight session decline as a broader rebound faded in the closing hour of trading. The small capitalisation Russell 2000 eased -0.20%.
The Australian economy will accelerate out of this shutdown with very strong growth in 2022. Michael Knox discusses with the Morgans network.
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Economy #GDP #Employment
US equity markets fell sharply on Tuesday, with tech names dragging down the broader markets as Treasury yields traded near three-month highs and lawmakers in Washington continued their budget stalemate. The Dow Jones Industrial Average lost -569 points, or -1.63%, to close at 34,299. The S&P 500 shed -2.04% to finish at 4,352. The Nasdaq Composite was belted down 2.83% to 14,546 for its worst day since March. The small capitalisation Russell 2000 fell -2.2%. The VIX surged 24% to 23.26. In terms of stock moves, Facebook Inc, Microsoft Corporation and Google-parent Alphabet Inc lost more than -3%, while Amazon.com Inc dropped -2.64%. Large chip stocks struggled, with NVIDIA Corporation sliding -4.44%.
U.S. stocks were split on Monday as a rise in treasury yields pressured growth names and traders braced for the final week of a volatile September. The Dow Jones Industrial Average rose by +71 points or +0.20% to 34,869 as energy stocks and bank shares pushed higher. The broader S&P 500 slipped by -0.28% and the Nasdaq shed -0.52% as major tech stocks including Alphabet (-0.10%), Apple (-1.05%), Microsoft (-1.8%) and Nvidia (-1.91%) struggled. The small capitalisation Russell 2000 Index rose +1.5%. The rise in yields appeared to boost financial stocks. Shares of Goldman Sachs and JPMorgan Chase rose more than +2%, making them some of the best performers in the Dow. Another bright spot for the market was energy, with stocks like Exxon Mobil and Occidental Petroleum climbing +3% and +7% respectively, as crude continued its September run, topping $75 a barrel.
Damien Bird from Investor Relations provides an update to the Morgans network.
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Packaging #Food #ASX
US markets rose for a third straight session on Friday, clinching weekly gains despite uncertainty over the fate of indebted property giant China Evergrande Group. The Dow gained +33 points, or +0.10%, to 34,798. The broader S&P 500 edged +0.15% higher and the Nasdaq ticked down just -0.03%. The small capitalisation Russell 2000 fell -0.49%. For the week, the Dow was up +0.60%, the S&P 500 gained +0.50% and the Nasdaq was near flat.
Portfolio Manager, Vince Pezzullo provides his views on current market conditions and identifies investment opportunities for the PIC portfolio.
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PIC #Investment #Portfolios
US equity markets jumped for a second day as fears around a crisis in China’s property market eased somewhat and as the Federal Reserve kept current monetary stimulus in place. The Dow Jones gained +506.50 points, or +1.48%, to 34,764.82, with steady buying throughout the day. Thursday’s rally adds to a 338-point gain in the prior session. The S&P 500 rose +53.34 or 1.21% to 4,448.98 and the Nasdaq Composite added +155.40 or 1.04% to 15,052.24. After Thursday’s gains, the S&P 500 is down just 1.6% for September. The small capitalisation Russell 2000 up +1.82%.
We think Chinese currency regulation is a firewall for the world against the Chinese domestic crisis. We also think iron ore prices should recover after February next year. Michael Knox discusses his views with the Morgans network.
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Currencies #China #Building
US equity markets rallied on Wednesday after the Federal Reserve indicated it doesn’t see an imminent rollback of the monetary stimulus that has been supporting the economy throughout the pandemic. The Dow Jones advanced +338.48 points, or 1%, to 34,258.32, snapping a four-day losing streak. However, the blue-chip Dow closed well off its high, as it jumped 520 points earlier in the day. The S&P 500 added +41.45 points or nearly 1% to 4,395.64 amid a 3.2% jump in the energy sector. The index also posted its first positive day in five. The Nasdaq Composite gained 1% to 14,896.85. The small capitalisation Russell 2000 up +1.48%.Commodity-related stocks led the comeback Wednesday as fears eased about ripple effects from Evergrande. Devon Energy surged 6.8%, while APA jumped nearly 7.2%. Diamondback Energy, Hess and Marathon Oil all popped more than 5%. China-exposed Wynn Resorts bounced about 2.6%.FedEx shares fell again tumbling more than 9% after profit fell at the logistics company last quarter because of rising labor costs. FedEx also cut its forecast for the full year.
US equity markets fought to rebound from Monday’s rout, but failed as the Dow Jones trended lower for most of the session and closed in the red. The Dow Jones lost -50.63 points, or -0.15%, to 33,919.84. The S&P 500 shed about 0.1% to 4,354.19, following its worst day since May on Monday. However, the Nasdaq Composite rose 0.2% to 14,746.40 as investors bought some major tech shares like Apple on the dip. The small capitalisation Russell 2000 up +0.18%.
Dr Asher Freilich, CEO and founder of the online scripts business InstantScripts explains how concept evolved into a rapidly growing operation with big plans for the future.
US equity markets began the week deeply in the red as investors continued to flock to the sidelines in September amid several emerging risks for the market. The Dow Jones lost -614.41 points, or -1.8%, to 33,970.47 for its biggest one day drop since July 19. The 30-stock average was down 971 points at one point during the day. The S&P 500 fell -75 points or -1.7% to 4,357.73, posting its worst daily performance since May 12. It was a broad sell-off with each of the main 11 sectors of the benchmark registering losses. The tech-heavy Nasdaq Composite dropped -2.2% to 14,713.90. The small capitalisation Russell 2000 down -2.44%.
US equity markets retreated to close out a volatile week of trading, with Friday night (17 September) a “quadruple witching” session - the simultaneous expiration of individual stock options, stock-index options, stock-index futures and single-stock futures – which brought some additional volume and volatility - Dow fell -166-points or -0.48% . The broader S&P500 lost -0.91% to 4,432.99, with the index slipping below its 50-day moving average of ~4,436.37 for the first time since 18 June. Materials (down -2.06%) led ten of the eleven primary sectors lower, with Utilities (down -1.59%), Information Technology (down -1.52%), Communication Services (-1.27%) and Industrials (-1.05%) all down over >1%. Health Care (up +0.07%) was the only primary sector to eke out a gain. The Nasdaq -0.91%. The small capitalisation Russell 2000 edged +0.18% higher.
US equity markets logged modest losses, settling well off their session lows as investors digested some mixed economic data - Dow eased +63-points or -0.18%, paring an earlier decline of as much as -274-points. The broader S&P500 slipped -0.16%. Materials (down -1.09%) and Energy (-1.06%) both fell over >1% to lead eight of the eleven primary sectors lower. Consumer Discretionary (up +0.44%), Real Estate (+0.16%) and Information Technology (+=0.06%) were the only primary sectors to advance. The Nasdaq edged +0.13% higher. The small capitalisation Russell 2000 dipped -0.07%. Tonight AEST marks “quadruple witching”, the simultaneous expiration of individual stock options, stock-index options, stock-index futures and single-stock futures, which can drive higher trading volume and volatility. • A group of independent advisers is scheduled to meet tonight AEST to discuss whether the Food and Drug
US equity markets rebounded, buoyed by some solid economic data and fresh gains on crude markets - Dow up +237-points or +0.68% . The broader S&P500 gained +0.85%, with Energy (up +3.82%) leading ten of the eleven primary sectors higher. Utilities (down –0.15%) was the only primary sector to close in the red. Gaming companies were under pressure, tracking falls on the Hong Kong market following news of a move by the Chinese government to increase oversight on the casino industry. MGM Resorts International dropped -2.49%, Las Vegas Sands Corp -1.71% and Wynn Resorts Ltd -6.30%. The Nasdaq +0.82%, marking the technology-centric index’s best day since 30 August. Microsoft Corp gained +1.68% after announcing a dividend increase and a sizable US$60B share repurchase program. The small capitalisation Russell 2000 rose +1.11%.
The US is considering big hikes in corporate tax rates in the coming weeks. Will the market take fright? Michael Knox Morgans Chief Economist.
US equity markets retreated despite cooler-than-expected August inflation figures - Dow fell -292-points or -0.84% . Boeing Co (down -1.36%) released their annual market outlook overnight and predicts the global fleet of commercial airplanes will climb from 25,900 in 2019 to 49,405 planes by 2040, with almost 90% those planes being new models that will enter service over the period. In addition, Boeing is projecting the global aerospace industry, including defence and services, will reach US$9 trillion over the next decade, up +US$500B from the same forecast last year. It is also the largest amount the company has ever projected for the industry over a 10-year period. The broader S&P500 shed -0.57%, logging its sixth decline in the past seven sessions. Energy (down -1.55%), Financials (-1.41%), Industrials (-1.23%) and Materials (-1.17%) all fell over >1% and led all eleven primary sector lower. The Nasdaq lost -0.43%. Apple Inc fell -0.96% after the company held its annual product launch event overnight and detailed their new iPhones, iPads and smartwatches. The new iPhone 13 series features Apple’s new A15 Bionic chip, a system-on-a-chip designed in-house, and a video tool called “cinematic mode”, which allows users to hold focus on a subject even when they are moving. The small capitalisation Russell 2000 lost -1.37%.
The Dow and S&P500 snapped a five session losing streak - Dow up +262-points or +0.76%, with 23 of the indice’s 30 components advancing . The broader S&P500 added +0.23%. Energy (up +2.94%) led eight of the eleven primary sectors higher. Health Care (down -0.61%) was the worst performing primary sector overnight. The Nasdaq dipped -0.07%, extending its decline into a fourth consecutive session. Apple Inc added +0.39% ahead of its annual product launch event tonight AEST, where the company is expected to unveil its iPhone 13 line-up as well as new smartwatches, headphones and possibly more. Separately, Epic Games has filed an appeal to last Friday’s (13 September) ruling in its lawsuit against Apple, calling on a higher court to re-examine the case and overturn the judge’s ruling. Few details were provided about the legal basis for Epic’s appeal, but it is likely to continue to press on the federal antitrust allegations dismissed by the court. The small capitalisation Russell 2000 up +0.59%. In merger and acquisition (M&A) news, Intuit Inc (down -1.76%) announced that it will acquire email marketing company Mailchimp for US$12B in cash and stock.
Heath Sharp CEO of RWC discussed FY21 post results update to the Morgans network.
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RWC #Construction #Waterflow
US equity markets fell on Friday night AEST (10 September) to cap their worst week in nearly three months as renewed concerns about inflation dented optimism over continued central bank support for financial markets - Dow down -272-points or -0.78% . Apple Inc fell -3.31% after a federal judge in the Epic Games Inc case issued an injunction that said the company can no longer force developers to use its payment system, effectively bypassing commission fees of 15% to 30%. However, the iPhone maker was not ruled an antitrust monopolist. The split decision could signal a major shift in the way apps are distributed to consumers and could have even deeper implications for other operators of dominant online platforms such as Google parent Alphabet Inc (down -1.86%) and Amazon.com Inc (-0.43%) The broader S&P500 lost -0.77%. Utilities (down -1.38%) and Real Estate (-1.23%) both fell over >1% on Friday night AEST (13 September) to lead all eleven primary sectors lower. The Nasdaq shed -0.87%. The small capitalisation Russell 2000 fell -0.96%. In merger and acquisition news (M&A), rail operator Kansas City Southern said in a statement Sunday that it has notified rival bidder Canadian National that it intends to terminate a merger agreement and make a US$31B deal with Canadian Pacific Railway Ltd. Canadian National (CN) still has five business days to negotiate amendments to its offer, and the Kansas City Southern board could determine that a revised CN offer is better.
Alexander Mees, Senior Analyst at Morgans, discusses Beacon Lighting (ASX:BLX) an addition to our Morgans Best Ideas (September 2021).
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investments #Stocks #Returns #Markets
Alexander Mees, Senior Analyst at Morgans, discusses Universal Store (ASX:UNI), an addition to our Morgans Best Ideas (September 2021).
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investments #Stocks #Returns #Markets
Dow and S&P500 extended their decline into a fourth straight session overnight - Dow down -152-points or -0.43% . The broader S&P500 settled -0.46% lower. Real Estate (down -2.12%) was the worst performing primary sector. The Financials sector (up +0.25). Ford Motor (down -2.07%) announced that it is ending vehicle production in India, shutting down its two large plants there and terminating thousands of employees, as Chief Executive Officer Jim Farley restructures the automaker’s operations as part of a turnaround plan. the actions will cost about US$2B, including pretax special charges of about US$600M in 2021 and US$1.2B in 2022. The Nasdaq eased -0.25%, registering back-to-back losses for the first time since mid-August. The small capitalisation Russell 2000 dipped -0.03%.
High prices for Australian metals and farm exports will generate higher living standards, and lower unemployment over the next three years.
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Economy #Trade #Resources
The Dow and S&P500 declined for a third straight session - Dow down -69-points or -0.20% . The broader S&P500 slipped -0.13%, with Energy (down -1.30%) and Materials (-1.02%) both falling over >1%. More defensive sectors outperformed, including Utilities (up +1.79%) and Consumer Staples (+0.77%). Swiss investment bank UBS raised its S&P 500 price target for the end of the year to 4,650 and for 2022 to 4,850. UBS acknowledged that equities are likely to have a pullback at some point, “likely driven by another reset in real yields higher, but other tailwinds should drive the S&P 500 to a new high by year end.” The Nasdaq fell -0.57%, its first fall in five sessions and a day after logging its 36th record closing high (15,374.33) of 2021. The small capitalisation Russell 2000 lost -1.14%. Coinbase Global Inc fell -3.2% after the cryptocurrency exchange revealed it received a notice of possible enforcement action from the Securities and Exchange Commission over lending practices.
Morgans Best Ideas are those stocks we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures. This month we add PTB Group and Moneyme. Equity Strategist Andrew Tang explains why.
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Returns #Shares #Stocks
Max Vickerson, Analyst at Morgans, discusses PTB Group (ASX:PTB), an addition to our Morgans Best Ideas (September 2021).
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Stocks #Investment #Returns #PTB
Steven Sassine, Associate Analyst at Morgans, discusses Moneyme (ASX:MME), an addition to our Morgans Best Ideas (September 2021).
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MME #Investments #Stocks #Returns
Equity Strategist’s Andrew Tang and Tom Sartor run through the key themes from reporting season including the outlook for dividends, how to play the re-opening trade, and identifying tactical opportunities in resources.
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Reportingseason #Dividends #Trade #Resources
US equity markets logged a mixed session after resuming trading following the Labor Day holiday - Dow fell -269-points or -0.76%, with 3M Co (down -4.53%) and Honeywell International Inc (-2.38%). Boeing Co fell -1.80% after budget airline Ryanair Holdings Plc (-1.96%) ended talks over a purchase of 737 MAX 10 jets. The broader S&P500 eased -0.34%. Ford Motor Co rose +0.47% after the company announced that it had hired former Tesla Inc (+2.64%) executive Doug Field to take over as chief advanced technology and embedded systems officer, which will put him in charge of next-generation technology in Ford automobiles. Mr Field had been serving as the vice president of “special products” at Apple after previously working at Tesla as senior vice president of engineering. The Nasdaq inched +0.07% higher to 15,374.33, securing its 36th record closing high of 2021. Apple Inc gained +1.55% and logged its third consecutive record closing high (US$156.69) after the technology giant scheduled an event for 14 September at which a new line of iPhones is expected to be unveiled. Supply chain checks for the second half of the year suggest about 130M to 150M iPhones will be built, with ~35%-to-45% of those built in the third quarter appearing to be the new iPhones to be announced, according a research note from Wedbush analyst Daniel Ives published on Tuesday (7 September). Apple has also been working on augmented and mixed reality technology for more than five years, while The Wall Street Journal recently reported that the company is working to include more health-related features its next Apple Watch, such as a blood pressure monitor and a thermometer to help with fertility planning. The small capitalisation Russell 2000 lost -0.72%.
AUD softer - buying ~74.37 US cents. The Reserve Bank of Australia (RBA) announces its latest interest rate decision this afternoon and is expected to leave their benchmark rate unchanged (with more focus likely to be on any commentary around their bond buying stimulus programme). A final reading of Building Permits for July and the Ai Group Services index for August are also on today’s Australian economic calendar.
US equity markets were modestly weaker on Friday night as investors grappled with the implications of a much weaker than expected US jobs report for August, with some market participants betting weaker data could undercut the case for the Federal Reserve to unwind its market-supportive easy money policies in coming months - Dow down -74-points or -0.21%, with American Express Co (down -1.70%) the worst performing index component. The broader S&P500 dipped -0.03%, with gains for the Information Technology sector (up +0.38%) offset by falls for the Utilities (down -0.80%) and Materials (-0.69%) sectors. The Financials sector (down -0.58%) fell despite Treasury yields climbing. The Nasdaq added +0.21% to 15,363.52 and logging its 35th record closing high of 2021. The small capitalisation Russell 2000 %. Russell 2000 lost -0.52%. Didi Global Inc ADRs rose +2.38% and gained +9.73% for the week after a Bloomberg News report that Beijing is eyeing a plan to take the troubled ride-hailing giant under state control by acquiring a stake through government-run firms. Didi is under a cybersecurity review after the Cyberspace Administration of China alleged the company had illegally collected users’ data. The ride-hailing giant was forced to stop signing up new users and its app was also removed from Chinese app stores. US equity and bond markets are CLOSED tonight AEST for the Labor Day holiday.
S&P500 and Nasdaq booked fresh record closing highs as attention turns to tonight’s AEST August jobs data - Dow up +131-points or +0.37% . The broader S&P500 added +0.28% to 4,536.95, touching a record intraday high of 4,545.85 earlier in the session. Energy (up +2.53%) led eight of the elven primary sectors higher, with Health Care (+1.08%) and Industrials (+1.02%) both rising over >1%. The global shortage of computer chips continues, forcing automakers to temporarily close factories. General Motors Co (down -0.33%) announced that it would pause production at eight North American plants during the next two weeks, including two that make the company’s top-selling Chevrolet Silverado pickup. Ford Motor Co (-0.76%) will stop making pickups at its Kansas City Assembly Plant for the next two weeks. Shifts will be cut at two more truck plants in Dearborn, Michigan, and Louisville, Kentucky. The Nasdaq edged +0.14% higher to 15,331.18, also setting an intraday all-time high (15,380.07). Apple Inc climbed +0.75% to a record closing high of US$153.65 after the most valuable U.S. company by market capitalisation announced concessions for some large developers on its App Store regarding commissions. Apple said late Wednesday (1 September) it will allow developers of so-called “reader” apps, which offer content on a subscription basis like Netflix Inc (+1.11% to US$588.55 and extending their best-ever two-week stretch of gains into record territory) and Spotify Technology SA (+6.57%), to give customers the option of sidestepping its in-app purchase commissions by making direct purchases from the respective companies. Separately, CNBC reported that Apple was preparing mass production of the Apple Car by 2024. The small capitalisation Russell 2000 up +0.74%. In merger and acquisition (M&A) news, Baxter International Inc +4.8% higher after it said it has entered an agreement to acquire fellow medical technology company Hill-Rom Holdings Inc. for US$156 per share, in a deal with an enterprise value of ~US$12.4B.”
US equity markets logged modest gains, with the technology-centric Nasdaq booking a fresh record closing high - Dow down -48points or -0.14% . The broader S&P500 inched +0.03% higher, trading above its 30 August record closing high (4,528.79) earlier in the session. The Nasdaq added +0.33% to 15,309.38 to book its 33rd record closing high of 2021. Apple Inc rose +0.45%, with the The Wall Street Journal reporting that the technology behemoth will eventually include a tool to monitor blood pressure and a thermometer to help with fertility planning in its smartwatches. The small capitalisation Russell 2000 gained +0.58%.
Morgans Chief Economist Michael Knox discusses how lower iron ore stocks relative to Chinese consumption, should support iron ore prices around the current value.
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Commodities #ironore #Stocks
Cleanaway Chief Operating Officer Brendan Gill discusses the key points from the company’s FY21 result with the Morgans network.
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Investment #Recycling #Wastemanagement
US equity markets ended the final trading session of August little changed - Dow eased -39-points or -0.11%. The broader S&P500 slipped -0.13%. Wells Fargo & Company fell more than> 5% in afternoon trading after Bloomberg News reported that the bank could face further sanctions as regulators are upset about the pace of progress in compensating victims of Wells Fargo’s previous scandals. The Nasdaq dipped -0.04%. Zoom Video Communications Inc tumbled -16.69% after the video-conferencing software company recorded slowing revenue growth in the second quarter and underwhelming third quarter guidance after the closing bell of the previous session. The small capitalisation Russell 2000 rose +0.34%.
Andrew Blattman MD and John Wadley CFO of IPH Limited, shared their results for FY21 with the Morgans network.
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IP #Shares #Investment
The S&P 500 and the Nasdaq Composite booked fresh closing records to open the new trading week - Dow down -56-points or -0.16% . The broader S&P500 added +0.43% to 4,528.79, logging its 53rd record closing high this year after establishing a fresh intraday record high (4,537.36) earlier in the session. Before this year, only 1964 and 1995 saw more than 50 new highs before August was over. The record for new highs in one year is 77, set in 1995. Real Estate (up +1.15%) and Information Technology (+1.09%) rose over >1% to lead seven of the eleven primary sectors higher. Financials (down -1.47%) and Energy (-1.16%) both fell over >1%. The Nasdaq rose +0.90% to 15,265.89, recording its 32nd record closing high of 2021 after setting its intraday all-time high (15,288.08). Apple Inc gained +3.04%, Microsoft Corp +1.29% and Netflix Inc +1.30%. Paypal Inc rose +3.64% after CNBC reported that the company is exploring a stock-trading platform for its U.S. customers. The small capitalisation Russell 2000 lost -0.49%. The Pentagon confirmed that that US military had completed its withdrawal efforts from Afghanistan albeit the diplomatic mission to ensure additional U.S. citizens and eligible Afghans who want to leave continues.
Tracking the key beats and misses from a bumpy reporting season and why AGM season will mark an important turning point for earnings. Morgans Equity Strategist Andrew Tang explains his views to the Morgans network.
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Reportingseason21 #AGM #Investment #Shares
US equity markets and government bonds rallied in response to Federal Reserve Chair Jerome Powell cementing expectations that the central bank will begin a slow removal of its crisis-era stimulus measures later this year - Dow up +243-points or +0.69%. The broader S&P500 gained +0.88% to 4,509.37, logging its 52nd record closing high this year Energy (up +2.62%) returned to the top of the primary sector leaderboard on Friday (27 August), while Communication Services (up +1.60%), Materials (+1.33%) and Financials (+1.31%) all gaining over >1%. Health Care (down -0.16%) and Utilities (-0.03%) were the only primary sectors to close in the red. The Nasdaq +1.23% to 15,129.50, recording its 31st record closing high of 2021. Amazon.com Inc (up +1.01%) announced that it is partnering with Affirm Holdings Inc (up +35.61% in extended trading last Friday (27 August)), with Affirm’s buy now, pay later checkout option will be available to certain Amazon customers in the U.S. starting Friday, with a broader rollout in the coming months. The small capitalisation Russell 2000 rallied +2.85%. For the week, Dow rose +0.96%, S&P500 +1.52% and the Nasdaq +2.82%. The Russell 2000 climbed +5.1% to record its best weekly rise since the period ended 12 March (when it jumped +7.32%), according to FactSet data.
US equity markets retreated as investors weighed second quarter economic growth data and eyed Federal Reserve Chair Jerome Powell’s address at the Jackson Hole Economic Symposium on "the economic outlook" tonight AEST - Dow down -192-points or -0.54%. Cloud-based customer-relationship management company Salesforce.com Inc outperformed with a +2.66% gain following a strong second quarter result after the closing bell of the previous session. The broader S&P500 lost -0.58%, snapping a five session winning streak that saw the index log its 51st record closing high of the year in the previous session. Energy (down -1.51%) led ten of the eleven primary sectors lower. Real Estate (up +0.10%) was the only primary sector to advance. The Nasdaq -0.64%, also snapping five session winning streak and a day after the technology-centric index logged its 30th record closing high of 2021 The small capitalisation Russell 2000 fell -1.13%. Traders were also eying new developments in Afghanistan where a dozen US service members were tragically killed following a terrorist attack outside the Kabul airport. President Biden vowed to complete the evacuation of Americans and their allies from Afghanistan.
Nick Harris shares his views on the Telecommunications sector as reporting season FY21 comes to a close. Nick highlights TLS and TPG with an add recommendation.
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Telecommunications #TLS #TPG #Telcos
Fresh record highs for both the S&P500 and Nasdaq ahead of the Jackson Hole Economic Symposium tonight AEST - Dow up +39-points or +0.11% 35,405.5 and ~0.62% shy of its all time closing high (35,625.40) set on 16 August. The broader S&P500 edged +0.22% higher to 4,496.19, logging 51st record closing high this year and matching the greatest number of closing records to this point in a calendar year since 1995, according to Dow Jones Market Data. Financials (up +1.21%), Energy (+0.72%) and Industrials (+0.60%) leading seven of the eleven primary sectors higher. More defensive sectors underperformed for a third straight session, with Health Care down -0.26%, Real Estate -0.18% and Consumer Staples -0.10%. The Nasdaq +0.15% to 15,041.85, recording its 30th record closing high of 2021. Chipmakers were buoyed a Wall Street Journal report that Western Digital (+7.8%) is in advanced talks to undertake a US$20B merger with Japan’s Kioxia Holdings. Nvidia Corp rose 1.9% following news that the Department of Energy will run its new supercomputer on the company’s computing platform. Micron Technology gained +2.%. The small capitalisation Russell 2000 +0.37%. Elsewhere on the merger and acquisition (M&A) front, ON Semiconductor Corp (down -0.21%) said it agreed to acquire GT Advanced Technologies for US$415M in cash.
Strong commodities provide the risk that the Aussie dollar will rise. Michael Knox discusses his views with the Morgans network.
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Commodities #AUD #USdeficit
Broad-based gains lifted both the S&P500 and Nasdaq to fresh record closing highs as positive U.S. vaccination news and easing worries about the U.S. tapering stimulus buoyed sentiment ahead of a key speech by Federal Reserve Chair Jerome Powell later this week. - Dow added +31-points or +0.09% . The broader S&P500 edged +0.15% higher to 4,486.23, with Energy (up +1.61%) atop the primary sector leaderboard for a second consecutive session and leading six of the eleven primary sectors higher. The more defensive sectors underperformed for a second consecutive session, with Consumer Staples (down -0.76%), Real Estate (-0.72%) and Utilities (-0.63%). The Nasdaq gained +0.52% to 15,019.80, with Chinese stocks leading the gains amid some bargain hunting as investors get some more clarity on the regulatory outlook. JD.com jumped 14.44% following the Chinese e-commerce giant’s second quarter result after the closing bell of the previous session. Fellow e-commerce platform Pinduoduo soared +22.25%, search engine Baidu +8.63% and Tencent Music Entertainment +12.75%. Gary Gensler, chairman of the U.S. Securities and Exchange Commission, said the agency will demand U.S.-traded Chinese companies disclose political and regulatory risks to investors, an extension of recently imposed requirements for firms seeking initial public offerings, according to a Bloomberg report. Corporations could begin including the enhanced disclosures in their annual reports as early as next year. Casino operators Las Vegas Sands (up +7.53%) and Wynn Resorts (+7.01%), after Macau eased travel restrictions with the improvement of the Covid-19 case outlook in China’s Guangdong province, a key visitor source for the gambling capital. The small capitalisation Russell 2000 rose +1.02%.
A strong start to the new trading week for US equity markets - Dow up +216-points or +0.61% . The broader S&P500 gained +0.85% to 4,479.53, just shy of a new closing high after setting a fresh intraday high of 4,489.88 earlier in the session. Almost three-quarters of the companies in the index advanced. Energy (up +3.77%) led seven of the eleven primary sectors higher, with Consumer Discretionary (+1.36%), Information Technology (+1.27%) and Communication Services (+1.27%) all gaining over >1%. The more defensive sectors underperformed overnight after outperforming last week, with Utilities (down -1.32%) the worst performing primary sector. The Nasdaq rallied +1.54% to book its 28th record closing high of 2021 at 14,942.65, also hitting a record intraday record high of 14,963.47. The small capitalisation Russell 2000 +1.88%.
A total of 39% of the ASX300 and 68% of the ASX50 have reported their results. Tom Sartor, Equity Strategist, examines the trends so far, result highlights and the outlook for FY22.
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Investment #Shares #Stocks
Bapcor's Chief Executive Officer Darryl Abotomey presented their FY21 results to the Morgans network.
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BAP #Autoparts #Automotive
US equity markets closed out a turbulent week marked by a surge in global volatility on a positive note - Dow up +226-points or +0.65% to 35,120.08, snapping a three session skid and climbing back above >35,000. Microsoft Corp (up +2.56%), Cisco Systems (+1.66%) and Salesforce.com Inc (+1.21%) were among the best Dow performers on Friday night (20 August). The broader S&P500 gained +0.81%. Tesla Inc rose +1.01% following their Artificial Intelligence (AI) Day that saw the company unveil a new custom chip and plans to build a humanoid robot. The Nasdaq +1.19%. Nvidia Corp’s (up +5.14%) planned $US40B acquisition of British chip designer ARM hit a major hurdle on Friday (20 August) after a UK regulator found it could damage competition and weaken rivals, and required a further lengthy investigation. The small capitalisation Russell 2000 +1.65%.
Tess Palmer Head of Investor Relations, shared TCL's results for FY21, with the Morgans network.
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Tolls #Traffic #FY21
US equity markets mixed after another choppy session, with concerns about the impact of the Delta variant of the coronavirus and the Federal Reserve’s latest monetary policy meeting minutes continuing to reverberate - Dow lost -67-points or -0.19%, paring an earlier decline of as much as -270 points. The Dow booked its third straight drop, representing its longest bout of losses since the five-session period ended 18 June. The broader S&P500 edged +0.13% higher, with Information Technology (up +0.99%) leading six of the eleven primary sectors higher. Energy (down -2.65%) sat at the bottom of the primary sector leaderboard for a second consecutive session. Tesla Inc fell -2.25% ahead of the company showcasing its autonomous driving and artificial intelligence efforts at its Artificial Intelligence Day. The Nasdaq +0.11%. NVIDIA Corp gained +3.98% after the chip maker’s earnings, revenue and outlook released after the close of Wednesday’s (18 August) session topped Wall Street estimates. The small capitalisation Russell 2000 lost -1.22% and is nearing official correction territory, down almost 10% from its March high.
US advance retails sales are drifting down to long-term trend, as US emergency income supports end. Michael Knox, Morgans Chief Economist explains.
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Retail #Sales #USretail
Benchmark US equity markets booked their worst declines in a month, with losses accelerating after the minutes of the Federal Reserve’s late July monetary policy meeting did little to dispel expectations that the central bank could begin tapering their US$120B per month bond buying programme soon - Dow fell -383-points or -1.08% . The broader S&P500 shed -1.07%. Energy (down -2.40%) led all but one of the eleven primary sectors lower (with eight sectors logging decline of over >1%). Consumer Discretionary added +0.15%. The technology-centric Nasdaq lost -0.89%. The small capitalisation Russell 2000 fell 0.84%.
• US equity markets retreated, with the Dow and S&P500 ending a five session run of record closing highs amid concerns the spread of the delta variant of COVID may slow economic growth and following a softer-than-expected July retail sales report - Dow dropped -282-points or -0.79% . The broader S&P500 fell -0.71% a day after logging its 49th record closing high of 2021. Consumer Discretionary (down -2.31%) led seven of the eleven primary sectors lower, with Materials (down -1.21%) and Industrials (-1.06%) down over >1%. More defensive sectors outperformed once again, with Health Care up +1.12%. The Nasdaq shed -0.93% as Facebook Inc (down -2.21%), Amazon.com Inc (-1.73%), Apple Inc (-0.62%) and Google-parent Alphabet Inc (-1.16%) all closed lower. The small capitalisation Russell 2000 lost -1.19%.
Anthony Porto provides an update on Carsales post the FY21 result with a strong share price run since upgrading the name in May seeing CAR back on a Hold rating. Despite this, the growth outlook for CAR looks promising with the launch of the domestic transactional offering ‘Carsales Select’ and increased proportion of earnings derived from International operations setting up a longer growth runway. Anthony remains positive on the stock and would see any weakness from here as a buying opportunity. In a similar vein, with REA down 10% since reporting based on near term lockdown impacts to the domestic residential market, this quality franchise is also beginning to screen attractively.
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Carsales #Realestate #Online
Morgans Analyst Nick Harris talks with Sovereign Cloud Chair, Cathie Reid & MD, Phil Dawson.
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Cloudstorage #Cloud #Data
Both the Dow and S&P500 recovered from early losses to record fresh record closing highs for a fifth consecutive session despite some soft economic data from China and with the fallout in Afghanistan also tempering sentiment - Dow up +110-points or +0.31% to 35,625.40 and logging its fifth straight record close to match the longest such run of all-time highs ended 8 November, 2017. The broader S&P500 added +0.26% to 4,479.71, recovering from an earlier decline of as much as -0.7% to stage its biggest intra-session comeback since 25 March. The S&P 500 has now doubled its level from its pandemic-low close on 23 March, marking the fastest bull-market doubling off a bottom since World War II, according to CNBC analysis. The S&P 500 has closed at a record high 49 times this year out of 156 trading days, or 31% of the time - the most frequent closing highs on record back to 1950. It was the more defensive sectors that led gains overnight for a second straight session, with Health Care (up +1.13%), Utilities (+0.65%) and Consumer Staples (+0.63%). Energy (down -1.83%) was the worst performing primary sector for a second consecutive session. Tesla Inc fell -4.32% after the National Highway Traffic Safety Administration announced a formal probe into the electric vehicle maker’s Autopilot partially automated driving system. T-Mobile US Inc fell -2.9% telecommunications company confirmed that there was unauthorized access to T-Mobile data, but they “have not yet determined that there is any personal customer data involved.” The last time the Dow and S&P 500 set five consecutive closing records together was a five-day stretch that ended 20 October, 2017. The Nasdaq slipped -0.20%. The small capitalisation Russell 2000 fell -0.89%.
It has been a solid reporting season so far with 30% of larger cap companies beating expectations, and only 20% missing. A big upcoming week for results this week, with our analysts calling out potential surprise candidates. Stay up to date with all the key results through Morgans Reporting Season Calendar: https://www.morgans.com.au/research-and-markets/reporting-calendar
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Aurizon, Chief Financial Officer, George Lippiatt provides an overview of the FY21 result and the outlook for the company.
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Both the Dow and S&P500 eked out fresh record highs for a fourth consecutive session - longest stretch of closing records since 15 March – despite a weak consumer sentiment report - Dow edged +15-points or +0.04% higher to 35,515.38, hitting another intraday record high (35,610.57) earlier in last Friday’s (13 August). Walt Disney Co rose +1.00% after posting its strongest quarterly sales and profit figures since before the COIVD-19 pandemic after the close of the previous session. The broader S&P500 added +0.16% to 4,468.00, touching an intraday record high of 4,468.37. The defensive Consumer Staples (up +0.81%), Real Estate (+0.68%), Health Care (+0.60%) and Utilities (+0.56%) led seven of the eleven primary sectors higher. Energy (down -1.28%) and Financials (-0.73%) were the worst performing primary sectors on Friday night AEST (13 August). The Nasdaq inched +0.04% higher. The small capitalisation Russell 2000 lost -0.93%.
Both the Dow and S&P500 edged to fresh record highs for a third consecutive session despite wholesale inflation accelerating more-than-expected in July - Dow inched +15-points or +0.04% higher to 35,499.85 . Salesforce.Com Inc (up +2.52%) and Apple Inc (+2.08%) were among the leading index performers, while Home Depot Inc (down -0.88%) and Visa Inc (-1.26%) underperformed. The broader S&P500 added +0.30% to 4,460.83, with Health Care (up +0.77%) and Information Technology (+0.59%) leading six of the eleven primary sectors higher. The Nasdaq rose +0.35%. The small capitalisation Russell 2000 slipped -0.28%.
CBA's FY21 result shows ambition to build Australia's leading business bank is real. Senior Analyst at Morgans Azib Khan explains how CBA is planning to reach the aspiring goal.
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Fresh record highs for both the Dow and S&P500 for a second consecutive session as inflation fears moderated following the latest data for July - Dow gained +220-points or +0.62% to 35,484.97 after also touching a record intra-day high of 35,501.16. Caterpillar Inc (up +3.55%) and Home Depot Inc (+1.67%) The broader S&P500 added +0.25% to 4.447.70, touching a record intra-day high of 4,449.44. Materials (up +1.42%), Industrials (+1.30%) and Financials (+1.17%) all rose over >1% to lead ten of the eleven primary sectors higher. Health Care (down -0.97%) was the only primary sector to close in the red. Southwest Airlines Co rose +1.43% despite the carrier saying slowing bookings and an increase in cancellations in August driven by the delta variant of the coronavirus means it is unlikely to be profitable in the third quarter. The Nasdaq slipped -0.16%. The small capitalisation Russell 2000 rose +0.49%. In merger and acquisition (M&A) news, Chesapeake Energy Corp (up +2.6%) announced that it has reached an agreement to acquire Vine Energy Inc (+1.95%) in a zero-premium cash-and-stock deal valued at ~US$2.2B. Shares of Chesapeake rose 2.6%, while Vine added 2%.
Morgans’ power sector analyst, Max Vickerson, speaks with Simon Kidston (Executive Director) and James Harding (CEO) of Genex Power. They discuss the major construction milestones for Kidston Pumped Hydro, the Bouldercombe Battery Project, and M&A trends in the renewable energy sector.
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Kurt discusses key ideas in the Industrials & Gaming sectors and expectations for the upcoming reporting season.
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A surge in the demand for Australian resources from Japan and India, boosts commodities as Chinese demand stabilizes. Michael Knox discusses with the Morgans network.
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Economy #Commodities #Australia
Fresh record highs for both the Dow and S&P500 after the Senate passed a much-anticipated bipartisan US$1 trillion infrastructure package - Dow up +163-points or +0.46% to 35,264.67. Caterpillar Inc (up +2.48%) was among the leading index performers. Goldman Sachs Group Inc (up +2.02%) and JP Morgan Chase & Co (+1.23%) also traded strongly as bond yields climbed. The broader S&P500 edged +0.10% higher to 4,436.74, with weakness in the Information Technology sector (down -0.73%) capping gains. Energy (up +1.72%), Materials (+1.48%), Industrials (+1.01%) and Financials (+1.01%) all rose over >1% to lead eight of the eleven primary sectors higher. Energy heavyweights Exxon Mobil Corp (up +1.71%) and Chevron Corp (+1.83%) both rebounded solidly. The technology-centric Nasdaq lost -0.49%. Research from Susquehanna Financial Group said that the amount of time companies are waiting to get chip orders filled has stretched to more than 20-weeks. Chip order lead times have increased by more than 8-days to 20.2 weeks in July from June. He gap was already the longest wait time since the firm began tracking the data in 2017. Advanced Micro Devices Inc fell -2.99% overnight and NVIDIA Corp -1.77%. The small capitalisation Russell 2000 +0.20%. In merger and acquisition (M&A) news, Kansas City Southern jumped +7.47% after Canadian Pacific Railway Ltd (down -1.19%) raised its offer for the U.S. railroad operator by ~US$2B to US$27.29B.
Nathan Lead (Senior Analyst) provides a review of the key features of the FY21 results of Aurizon (ASX:AZJ) and Transurban (ASX:TCL).
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US equity markets retreated, with both the Dow and S&500 pulling back from last Friday’s (6 August) record closing highs and with traders eyeing downgrades to China economic growth forecasts from a number of major investment banks - Dow fell -107-points or -0.30% . The broader S&P500 dipped -0.09%, with Energy (down -1.48%) leading seven of the eleven primary sectors lower. Exxon Mobil Corp fell -1.14% and Chevron Corp -1.67%. The Nasdaq added +0.16%. The small capitalisation Russell 2000 lost -0.58%. In merger and acquisition (M&A) news, Draftkings Inc (up +1.49%) agreed to acquire Golden Nugget Online Gaming Inc (+50.77%) in a US$1.56B all scrip deal.
The Morgans Healthcare Team provides a preview of the upcoming reporting season.
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Bernard Wilson, CEO of ASX Listed Cashrewards is today’s guest on the Bank to the Future Podcast series. Bernard talks about the Cashrewards platform, the transformational partnership with ANZ, the importance of education around the product as well as what he is most excited about moving forward. Cashrewards is a 7 years old business but has been listed for less than a year.
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Morgans Analyst Alex Lu, discusses his FY21 results preview for the Industrials sector.
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Both the Dow and S&P500 logged fresh record highs to close out another strong week for US equity markets as investors digested the latest July employment figures - Dow up +144-points or +0.41% to 35,208.51. Goldman Sachs Group Inc rose +% to a record high, while JP Morgan Chase & Co gained +%. The broader S&P500 edged +0.17% higher to 4,436.52. Financials (up +2.01%) and Materials (+1.47%) were the best performing primary sectors on Friday night AEST (6 August). Consumer Discretionary (down-0.73%) and Information Technology (--0.12%) underperformed, dented by a fresh rise in longer date Treasury yields. The Nasdaq eased -0.40%. The small capitalisation Russell 2000 %. For the week, Dow gained +0.78%. The S&P500 rose +0.94%, extending its year-to-date gain to +18.12%. Nasdaq +1.11%
Anthony Noble is today’s guest on Morgans Conversations. Anthony is the newly appointed CEO of ASX listed Fiji Kava. Fiji Kava is a medicinal Noble kava company based in Australia, providing a natural solution to calm and soothe nerves, support muscle relaxation, increase mind relaxation and induce sleep. In this episode, Anthony talks about his background and why he joined as CEO, the use cases for Kava, the outlook for the industry as well as why mental health, sleep and wellness are front of mind during and post a global health pandemic.
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Fresh record closing highs for both the S&P500 and Nasdaq ahead of tonight’s key non-farm payrolls report - Dow gained +272-points or +0.78% at 35,064.25. The broader S&P500 rose +0.60% to 4,429.10, logging its 43rd record closing high of 2021. Goldman Sachs raised its year-end target for the S&P 500 to 4,700, representing ~6.1% upside, in part due to an improving earnings outlook. The Nasdaq advanced +0.78% to 14,895.12, with the technology-centric index recording its 27th record closing high of 2021 and first since 26 July. The small capitalisation Russell 2000 %.
Dr James Fielding, Founder and CEO of Audeara, provides an update on the company’s progress.
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Healthcare
Rob Wong CEO of Control Bionics provides an update on the company’s progress.
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Healthcare
Jo Little Morgans Senior Analyst, discusses her FY21 results preview for the Retail sector. She guides us through expectations on stocks pre and post-lockdowns, retails spaces and the impact on results and on-line shift for businesses. Some of the highlighted stocks: Lovisa, Universal, and Eagers Automotive.
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Retail #Shopping #Automotive
US equity markets retreated and settled near their session lows after Federal Reserve Vice Chairman Richard Clarida made a case for a potential slowing of the central bank’s large-scale asset bond purchases later this year and for higher interest rates in 2023 - Dow dropped -324-points or -0.92% . The broader S&P500 fell -0.46% a day after notching its 42nd record closing high of 2021. Energy (down -2.93%) led nine of the eleven primary sectors lower following a third straight session of declines on crude markets. Communication Services (up +0.24%) and Information Technology (+0.19%) were the only primary sectors to advance. The technology-centric Nasdaq added +0.13%. Advanced Micro Devices (AMD) Inc rallied +5.52% (to US$118.77) and logged its sixth consecutive record closing high (and carved out a record intra-day high of US$122.49) following continued indications that the chip maker is taking market share away from larger rival Intel Corp (down -0.30%). Data from Mercury Research showed that while total microprocessor shipments had declined 3.1% quarter-over-quarter, AMD’s total share of the market increased to 16.9% in the second quarter from 16.1% in the first quarter. Meanwhile, Intel’s share fell to 83.1% in the second quarter from 83.9% in the first quarter. The Mercury Research data also showed gains for AMD in the important data-centre category. AMD has 8.9% share in servers, up from 5.5% in the year-ago second quarter and 8.2% in this year’s first quarter. That’s compared with Intel’s 91.1% share, down from 94.5% in the year-ago second quarter and 91.8% in the first quarter. A separate report from tech news site wccftech.com noted that AMD CPUs are still outselling Intel, according to data compiled from MindFactory, Germany’s largest tech retailer. The small capitalisation Russell 2000 fell -1.23%.
Jo Little Morgans Senior Analyst, discusses her FY21 results preview for the Retail sector. She guides us through expectations on stocks pre and post-lockdowns, retails spaces and the impact on results and on-line shift for businesses. Some of the highlighted stocks: Lovisa, Universal, and Eagers Automotive.
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Retail #Shopping #Automotive
Nathan Lead, Senior Analyst at Morgans, discusses Transurban (ASX:TCL), an addition to our Morgans Best Ideas (August 2021).
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TCL #Investments #Stocks
Morgans Best Ideas are those stocks we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures. This month we add Transurban, Treasury Wine Estate and Tabcorp. Equity Strategist Andrew Tang explains why.
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Investments #Stocks #Shares
Anthony Porto discusses the upcoming results and likely topics of interest for the online classifieds sector. The sector in aggregate has underperformed the market since releasing their 1H21 results, despite market conditions (excluding the short-term impact of lockdowns) generally becoming more favourable in the period. Current preference for CAR and SEK followed by REA and DHG. In Anthony’s small cap coverage universe, FDV, BKG, ART and CAT are discussed as looking attractive.
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On-line media # Wearables #Sports
Nick Harris Morgans Senior Analyst, discusses his FY21 results preview for the Telecommunications and Technology sectors. Including NBN rollout, TPG, Telstra, Next DC amongst other stocks.
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Telecommunications #NBN #Mobiles #Cloud
US equity markets rallied, lifting the S&P500 to a yet another record closing high - Dow rose +278-points or +0.80% to 35,116.40 (and within 0.5% of a fresh record closing high), recovering from an earlier, brief decline of over >100-points The broader S&P500 gained +0.82% to 4,423.15, notching its 42nd record closing high of 2021. Energy (up +1.83%), Health Care (+1.41%), Industrials (+1.38%), Financials (+1.13%) and Materials (+1.01%) al gained over >1% to lead ten of the eleven primary sectors higher. Communication Services (down -0.19%) was the only primary sector to close in the red. The Nasdaq +0.55%. Advanced Micro Devices Inc rose +3.62% (to US$112.56) and logged its fifth consecutive record closing high following a Bloomberg report that Nvidia Corp.’s (+0.33%) US$40B acquisition of Arm Ltd may get blocked by U.K. regulators. Bloomberg also reported that Apple Inc (up +1.26%) and Affirm Holding’s (+3.03%) PayBright are planning to launch a "buy now, pay later" program for Apple device purchases in Canada, allowing people to pay for iPhone, Mac, and iPad over 12 to 24 months. The small capitalisation Russell 2000 +0.37%. In merger and acquisition (M&A) news, PepsiCo Inc added +0.2% after the beverage and snacks company announced an agreement to sell Tropicana, Naked and other juice brands across North America for US$3.3B in cash to PAI Partners. The deal includes options to sell certain juice businesses in Europe. PepsiCo said it will retain a 39% interest in a newly formed joint venture, and will retain exclusive U.S. distribution rights of the brands.
US equity markets relinquished earlier gains to settle with modest losses, with most of the fall coming in the final hour of the session - Dow eased -97-points or -0.28% to 34,838.16 after touching a fresh record intraday high at 35,192.11. The broader S&P500 slipped -0.18%, with Materials (down -1.17%) leading seven of the eleven primary sectors lower. More defensive sectors outperformed overnight, with Utilities (up +0.75%) the leading primary sector performer. Tesla Inc rose +3.27%. The Nasdaq inched +0.06% higher. The small capitalisation Russell 2000 fell -0.48%. Persistent concerns about the spread of the delta variant of the coronavirus weighed on investor sentiment on the first trading day for equity markets in August, while investors also eyed progress on an infrastructure bill, merger and acquisition (M&A) activity and concerns about the pace and timing of the Federal Reserve’s plans to roll back easy-monetary policies.
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Origin Energy (ASX:ORG) is writing off c.$1.6bn from its generation fleet and has guided for significantly lower Energy Markets EBITDA in FY22. Find out how this has impacted Morgans Analyst Max Vickerson's forecasts.
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US equity markets retreated on Friday (30 July), closing out the week and month on a weaker footing - Dow down -149-points or -0.42% . The broader S&P500 lost -0.54%, with Consumer Discretionary (down -2.78%) and Energy (-1.76%) the worst performing primary sectors on Friday night AEST (30 July). The Nasdaq fell -0.71%. Amazon.com Inc fell -7.56% - its biggest one-day drop since May 2020 – after reporting slowing sales growth in the second quarter after the closing bell of last Thursday’s (29 July) session. The small capitalisation Russell 2000 lost -0.62%.
US equity markets advanced, shrugging off a weaker-than-expected rise in second-quarter gross domestic product (GDP) as investors instead focussed on largely upbeat corporate earnings releases - Dow up +154-points or +0.44% at 35,084.53, hitting a fresh record intraday high of 35,171.52. The broader S&P500 rose +0.42% to 4,419.15, also touching a record intra-day high (4,429.97). Materials (up +1.08%) and Energy (+1.07%) both gained over >1% to lead nine of the eleven primary sectors higher. Tesla Inc rallied +4.69%, with a number of reasons cited the latest gains. Chief Executive Officer (CEO) Elon Musk tweeted that the electric vehicle maker is hosting an artificial intelligence day on 19 August. The Nasdaq edged +0.11% higher, with Facebook Inc (down -4.01%) and PayPal Inc (-6.23%) following their results after the closing of the previous session that were accompanied underwhelming guidance. The small capitalisation Russell 2000 rose +0.68%.
US equity markets weaker after a listless session, with the Federal Reserve providing no firm clues about when it might start reducing its purchases of government bonds despite saying that the economic recovery is on track - Dow fell -128-points or -0.36% . The broader S&P500 dipped -0.02%. The Nasdaq rose +0.70%. Apple Inc fell -1.22% a day after recording its strongest June quarter result ever, with Chief Executive Officer (CEO) Tim Cook warning that silicon “supply constraints” will affect sales the iPhone as well as the iPad. Advanced Micro Devices Inc rallied +7.6% to close at record high of US$97.93, soaring late in the session after an initially muted reaction to the chipmaker’s better-than-expected second quarter result after the close of the previous session. The small capitalisation Russell 2000 rallied +1.51%. Uber Technologies Inc fell over >4% in extended trading after CNBC reported that SoftBank Group Corp is selling about one-third of its stake in ride-hailing company, in part to cover losses on its investment in Chinese ride-hailing company Didi Global Inc (up +10.32% in regular trading).
Ruwan Weerasooriya, founder and CEO of ASX listed Rewardle is today’s guest on the Bank to the Future Podcast series. Ruwan talks about his journey down different paths in combining loyalty and payments with local business owners, and how, over many years this proved extremely difficult. The company has re-focused on payments and partnerships with their existing technology and clients that include a Buy Now Pay Later company, a meal kit company as well re-establishing relationships with existing clients post the COVID-19 Pandemic to assist them through this unprecedented time.
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Rising commodity prices push up nominal GDP, allowing employers to give more jobs to more people. Michael Knox, Morgans Chief Economist shares his views with the network.
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Commodities #Wages #Economy
US equity markets logged their first declines in six sessions, pulling back from record highs as investors awaited quarterly earnings releases from several megacap technology stocks after the closing bell - Dow lost -86-points or -0.24%, paring an earlier decline of as much as -266-points. The broader S&P500 fell -0.47%, with Consumer Discretionary (down -1.16%), Communication Services (-1.06%), Energy (-1.01%) and Information Technology (-1.01%) all falling over >1%. The S&P500 recovered from an earlier decline of as much as -1.1%. The technology-centric Nasdaq lost -1.20%, its worst single session fall in two-and-a-half months as worries about a regulatory clampdown by Beijing weighed on sentiment. The small capitalisation Russell 2000 shed -1.13%.
US equity markets logged another round of record closing highs, settling near their best levels of the session after swinging between modest gains and losses during Monday’s session - Dow up +83-points or +0.24% at 35,144.31. Intel Corp fell over >3% in the extended session after the chip maker revealed its “road map” and repackaging plans for its future products. The broader S&P500 added +0.24% to 4,422.30, with Energy (up +2.50%) returning to the top of the primary sector leaderboard. The Nasdaq inched +0.03% higher to 14,840.71 ahead of a host of earnings releases from technology heavyweights tonight AEST. The small capitalisation Russell 2000 added +0.33%.
Fresh record highs for all three benchmark US equity indices on Friday night AEST (23 July) after a rocky start to the trading week, with another round of strong corporate earnings booting investor sentiment - Dow up +238-points or +0.68% to 35,061.50, settling above 35,000 at its 6th attempt (having previously traded above threshold on five occasions but unable to close above it). A late session push also saw the Dow hit a fresh record intra-day high (35,095.33). Last Friday’s (23 July) comes 69 trading days after the Dow’s first close above 34,000, making it the slowest such rise since the 218-day gap between the run from a close above 29,000 to a finish above 30,000 that ended on 24 November, 2020, according to Dow Jones Market Data. It took the Dow 165 trading days to run from a close above 30,000 to a close above 35,000, its fastest 5,000 point milestone. Intel Corp fell 5.29% after the chipmaker posted better-than-expected second quarter numbers but an underwhelming third quarter earnings per share (EPS) and revenue outlook after the closing bell of last Thursday’s (22 July) session. The broader S&P500 gained +1.01% to 4,411.79. Communication Services (up +2.65%) led ten of the eleven primary sectors higher. Energy (down -0.43%) was the only primary sector to settle in the red. The Nasdaq gained +1.04% to 14,836.99. Social media firms Twitter Inc (up +3.05%) and Snap Inc (+23.82%) posted solid gains after releasing strong second quarter results after the closing bell last Thursday’s (22 July) session. The small capitalisation Russell 2000 added +0.46%.
At the Noosa Mining and Exploration Conference 2021, Steve Promnitz, Managing Director of Lake Resources, spoke to Morgan's Analyst Max Vickerson about the growth potential for lithium over the next 10 years, as well as how Lake Resources are using direct lithium extraction for many of their current projects.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium
At the Noosa Mining and Exploration Conference 2021, Phil Condon, Chief Executive Officer of Duke Exploration, spoke to Senior Analyst Chris Brown about his joining of Duke Exploration and the benefits of the setting in which Duke's current mining projects are located.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium
At the Noosa Mining and Exploration Conference 2021, Neil McIntyre, Chief Executive Officer of Diatreme Resources, spoke to Senior Analyst Chris Brown about their current projects including mining high purity silica, what it is used for and also their partnership with the land's traditional owners.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium
At the Noosa Mining and Exploration Conference 2021, Simon Finnis the Managing Director of KGL Resources, spoke to Senior Analyst Chris Brown about his recent joining of KGL Resources and the development of KGL's current copper mine projects.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium
At the Noosa Mining and Exploration Conference 2021, Damian Galvin, Chief Financial Officer of Central Petroleum, spoke to Morgan's Analyst Max Vickerson about Central Petroleum's growth program and their current work in the Northern Territory and Queensland.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium
US equity markets logged modest gains, with economically sensitive cyclical stocks capping the advance - Dow edged +25-points or +0.07% higher . The broader S&P500 added +0.20%, with Information Technology (up +0.71%) and Healthcare (up +0.67%) the leading primary sector performers. Energy (down -1.13%) and Financials (-1.04%) were the worst performing primary sectors. The Nasdaq +0.36%. Microsoft Corp (up +1.68%), Amazon.com Inc (+1.47%), Apple Inc (+0.96%), Facebook Inc (+1.43%) and Google parent Alphabet Inc (+0.55%) all climbed ahead of the release of their latest quarterly numbers next week. All three major indices settled within 1% of their record closing highs. The small capitalisation Russell 2000 fell -1.55%.
Audeara enhances music, entertainment, and communication experiences by focusing on what really matters, what you can hear. Dr James Fielding from Audeara (ASX:AUA) presents at the Morgans Business Breakfast. Dr Fielding provides the story behind the inception of the business, its products, and its growth plans.
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AUA #Hearing #Headphones
US equity markets extended their rebound from Monday’s sharp falls as some more strong corporate earnings releases overshadowed COVID concerns - Dow up +286-points or +0.83% . The broader S&P500 gained +0.82%, logging its biggest back-to-back advance (up +2.34%) since 14 May. Energy (up +3.53%) led eight of the eleven primary sectors higher. Moderna Inc rose +4.48% after the biotechnology company joined the S&P500 index following the recent change announced by S&P Dow Jones Indices. The technology-centric Nasdaq rose +0.92%. Netflix Inc fell -3.28% after the video-streaming giant’s second quarter result released after the close of the previous session underwhelmed analysts. The small capitalisation Russell 2000 +1.81%.
Nowcasting the Australian economy on employment and hours worked shows us the rebound is still strong. Michael Knox discusses his views with the Morgans network.
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Economy #Employment #Inflation
At the Noosa Mining and Exploration Conference 2021, Patrick Walta, Managing Director of New Century Resources, spoke to Equity Strategist Tom Sartor about New Century Resources' next phase around the Silver King mine and their high grade mineral results.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium #zinc
At the Noosa Mining and Exploration Conference 2021, Malcolm Norris, Managing Director of Sunstone Metals, spoke to Senior Analyst Chris Brown about the current projects and cash balance of Sunstone Metals.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium
At the Noosa Mining and Exploration Conference 2021, Kevin MacNeill, Managing Director of EQ Resources, spoke to Senior Analyst Chris Brown about Kevin's background in mining project management, as well as EQ Resource's ongoing work at their 100% owned Mt Carbine site.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium
At the Noosa Mining and Exploration Conference 2021, Bruce Kay, Technical Director of Catalyst Metals, spoke to Senior Analyst Chris Brown about Bruce's background in Gold exploration and Catalyst Metal's focus as both a gold explorer and producer.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium
At the Noosa Mining and Exploration Conference 2021, Andrew Elf, Chief Executive Officer of Mitchell Services, spoke to Equity Strategist Tom Sartor giving an update on Mitchell Services's business and position in the market.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium
At the Noosa Mining and Exploration Conference 2021, Peter Ledwidge, Managing Director of Mako Gold, spoke to Senior Analyst Chris Brown about Mako Gold and their current gold mining projects in West Africa and why that is an important strategic location.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium
At the Noosa Mining and Exploration Conference 2021, Peter Wright, Executive Director of Bass Metals, spoke to Equity Strategist Tom Sartor about Bass Metals as an emerging player in the battery metals market and how the company's experience gives them an edge.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium
At the Noosa Mining and Exploration Conference 2021, Theo Psaros, Executive Chairman of Metallica Minerals, spoke to Equity Strategist Tom Sartor about the current work Metallica Minerals are doing redefining itself with silica sands.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium
At the Noosa Mining and Exploration Conference 2021, Tony Carusso, Managing Director of Mastermyne, spoke to Equity Strategist Tom Sartor about the current work Mastermyne are doing and the opportunities for coal companies in the market moving forward.
Watch his full presentation at https://www.noosaminingconference.com.au/company-descriptions.
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Mining #exploration #investment #gold #copper #aluminium #lithium
US equity markets rebounded, erasing much of Monday’s (19 July) steep losses - Dow rose +550-points or +1.62% a day after logging its steepest one day slide since 28 October, 2020. The broader S&P500 gained +1.52%, with Industrials (up +2.74%) and Financials (+2.42%) rising over >2% to lead ten of the eleven primary sectors higher. Consumer Staples (down -0.08%) was the only primary sector to close in the red. Airlines (American Airlines Group Inc +8.38% and Delta Air Lines Inc +5.45%) and cruise operators (Carnival Corp up +7.45% and Royal Caribbean Cruises Ltd +7.74%) rebounded solidly. The Nasdaq rose +1.57%, snapping a five session losing streak (the technology-centric indice’s longest such losing streak since 19 October, 2020). The small capitalisation Russell 2000 rallied +2.99% a day after narrowly avoiding sliding into official correction territory (defined as a pullback of 10% from its most recent high).
US equity markets logged their steepest one-day slide since October last year and bond markets rallied sharply amid fresh growth concerns as the delta variant of COVID raises the spectre of renewed lockdown measures and restrictions - Dow tumbled -726-points or -2.09%, logging its steepest one day slide since 28 October, 2020. The index was down -946 points at its worst levels of the session, with all 30 index components finishing in the red. Boeing Co fell -4.94% amid fears the spread of the Delta COVID variant could trigger renewed travel restrictions. The broader S&P500 dropped -1.59%, recording the biggest daily percentage decline since 12 May. Energy (down -3.59%) led the primary sector declines for a fourth consecutive session. Financials (down -2.80%), Materials (-2.18%) and Industrials (-2.14%) also fell over >2%, with all eleven primary sectors retreating. Cruise operators (Carnival Corp -5.74%, Royal Caribbean Cruises Ltd -3.98% and Norwegian Cruise Line Holdings Ltd -5.49%) were under further pressure after the Court of Appeals for the 11th Circuit on Saturday (17 July) handed down a decision that will temporarily keep in place pandemic restrictions on the industry. The technology-centric Nasdaq fell -1.06%, logging its fifth consecutive session decline and longest such losing streak since 19 October, 2020. The small capitalisation Russell 2000 -1.51%, just shy of logging a pullback of 10% from its most recent high (the widely adopted definition of a correction).
US equity markets retreated as inflation fears and COVID concerns overshadowed strong June retail sales figures and some solid corporate earnings releases, leaving the benchmark indices nursing their first weekly declines in four weeks - Dow dropped -299-points or -0.86% . Intel Corp fell -1.51% after the Wall Street Journal reported that the semiconductor giant was exploring a deal to acquire chip maker GlobalFoundries for ~US$30B. The broader S&P500 shed -0.75%. The Nasdaq fell -0.80%. The small capitalisation Russell 2000 fell -1.24%. Moderna Inc jumped +10.30% following confirmation after the close of last Thursday’s (15 July) session that the biotechnology company would be added to the S&P500 index at the opening of trading on 21 July, replacing Alexion Pharmaceuticals Inc (down -0.27%).
The Media publish Headline Inflation. While Central Banks look at the trimmed mean measure of core inflation in order to set policy. Michael Knox discusses his views with the Morgans network.
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Economy #Employment #Inflation
US equity markets retreated despite another round of solid corporate earnings releases as investors continued to eye fresh COVID-19 impacts and slowing growth in China - Dow added +54-points or +0.15% . The broader S&P500 eased -0.33%, with Energy (down -1.41%) the worst performing primary sector for a second consecutive session. Utilities (up +1.2%) sat atop the primary sector leaderboard. General Motors Co (down -1.81%) announced that its Lansing Delta Township Assembly plant in Michigan and Spring Hill Assembly plant in Tennessee would take downtime from July 19 through July 26.The Nasdaq fell -0.70%. The small capitalisation Russell 2000 fell -0.55%. Moderna Inc rallied over >5% in the extended session after S&P Dow Jones Indices confirmed that the biotechnology company would be added to the S&P500 index at the opening of trading on 21 July, replacing Alexion Pharmaceuticals Inc (down -3.27%).
US equity markets settled with modest gains as investors digested the first day of Federal Reserve Chair Jerome Powell’s semi-annual monetary policy testimony to Congress - Dow added +44-points or +0.13%, briefly falling into the red. The broader S&P500 edged +0.12% higher, carving out a fresh record intra-day high (4,393.68) shortly after the opening bell. Consumer Staples (up +0.92%), Real Estate (+0.89%), Utilities (+0.83%), Information Technology (+0.73%) were the best performing primary sectors, while Energy (down -2.94%) was comfortably the worst performing primary sector. American Airlines Group Inc gained +3.00% after the carrier forecast better revenue and a narrower loss than previously estimated for the second quarter when it releases its quarterly result on 22 July. L Brands Inc rose +1.35% after the retailer raised its second quarter earnings guidance and announced plans to sell 20M shares held by founder Leslie Wexner and others. The Nasdaq slipped -0.22%, trading above its 12 July closing high (14,733.24) earlier in the session. Apple Inc gained +2.41% after Bloomberg News reported that the company has asked suppliers to build as many as 90M next-generation iPhones this year, a sharp increase from its 2020 iPhone shipments. JPMorgan also added the tech giant to its focus list and raised its price target The small capitalisation Russell 2000 fell -1.63%. In merger and acquisition (M&A) news, American International Group (AIG) Inc gained +% in after hours trading after announcing it would sell a 9.9% stake in its life and retirement business to Blackstone Group Inc in a US$2.2B all-cash deal
US equity markets retreated, relinquishing earlier gains that saw both the S&P500 and Nasdaq touch fresh record intra-day highs as investors digested the latest inflation data and the start of the second-quarter corporate earnings season - Dow down -107-points or -0.31%. Boeing Co fell 4.2% after the Federal Aviation Administration said late on Monday (12 July) that some undelivered 787 Dreamliners have a new manufacturing quality issue. The broader S&P500 lost -0.35% after touching a fresh record intra-day peak (4,392.37). Real Estate (down -1.32%), Consumer Discretionary (-1.18%) and Financials (-1.06%) all fell over >1% to lead ten of the eleven primary sectors lower. Information Technology (up +0.44%) was the only primary sector to advance. The technology-centric Nasdaq fell -0.38%, touching a record intra-day high (14,803.68) earlier in the session. Bloomberg reported that Apple Inc (up +0.79%) and Goldman Sachs are partnering to launch a buy now, pay later (BNPL) service through Apple Pay called Apple Pay Later. The report prompted a -10.45% for Affirm Holdings Inc. The small capitalisation Russell 2000 dropped -1.88%.
Record closing highs for all three benchmark US equity indices on the eve of the US second quarter earnings season kicking off - Dow up +126-points or +0.36%, closing just shy of 35,000 at 34,996.18. Walt Disney Co rallied +4.15% after ‘Black Widow raked in US$80M at the US box office during its debut, the highest of any film released following the pandemic. The movie also brought in more than >US$60M globally from sales through Disney+ Premier Access. The broader S&P500 added +0.35% to 4,384.63. The Nasdaq rose +0.21% to 14,733.24 The small capitalisation Russell 2000 edged +0.08% higher.
The RBA believes it must drive down unemployment, to drive up real wages and hit their inflation target. Michael Knox discusses his views with the Morgans network.
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Stewart White, founder of Fort Canning Asset Management is today’s guest on the Bank to the Future Podcast series. Stewart talks about why he started FCAM, how they are involved with Blockchain technology, the stable coins, the network race as well as how FCAM derive their revenue. A fascinating podcast around education on the Blockchain, Cryptocurrency, and how banks globally may respond.
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US equity markets rebounded strongly, with both the Dow and S&P500 hitting fresh record closing highs - Dow gained +448-points or +1.30% to a record closing high of 34,870.16. FedEx Corp (up +1.08%) hosts a conference call tonight AEST to update investors on its business outlook. The broader S&P500 rose +1.13% to a fresh record closing peak of 4,369.55. Financials (up +2.4%) led ten of the eleven primary sectors higher on Friday night AEST (9 July). The Nasdaq +0.98%. Gains among the big technology names were capped after President Joe Biden signed a new executive order on Friday (9 July) aimed at cracking down on anti-competitive practices in Big Tech, labour and numerous other sectors. The sweeping order, which includes 72 actions and recommendations that involve more than a dozen federal agencies, is intended to reshape the thinking around corporate consolidation and antitrust laws, according to a White House fact sheet. Amazon.com Inc eased -0.32%, while Apple Inc +1.31% Facebook Inc +1.38 and Google-parent Alphabet Inc +0.38%. The small capitalisation Russell 2000 gained +2.17%. For the holiday shortened week, the Dow edged +0.24% higher, S&P500 +0.40% and Nasdaq +0.43%.
US equity markets declined amid growing concerns that the spread of new COVID-19 variants could upend economic growth expectations - Dow fell -260-points or -0.75%, dropping over >500-points earlier in the session. The broader S&P500 lost -0.86%, with Financials (down -1.97%), Industrials (-1.43%), Materials (-1.36%) and Communication Services (-1.05%) all falling over >1% and leading all eleven primary sectors into the red. Major banks Goldman Sachs Group Inc (down -2.37%), Bank of America Corp (-2.44%), JPMorgan Chase & Co (-1.73%) and Wells Fargo & Co (-2.49%) all fell as Treasury yields extended their decline. The technology-centric Nasdaq fell -0.72%, with chipmakers falling amid concerns around the pace of the global recovery. Applied Materials Inc fell -1.74%, Micron Technology -1.42% and Nvidia Corp -2.30%. Amazon.com Inc (up +0.90%) bucked the weaker trend among the technology majors. The small capitalisation Russell 2000 lost -0.94%.
Alex Waislitz joins Chris Titley to chat about Thorney Technologies (ASX:TEK). TEK has just >$20m and Alex explains the recent performance, why they raised capital, and the outlook on particular sub-sectors within the technology sector. Alex also gives his macro views on the market in general.
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Scott Power, Senior Analyst at Morgans speaks to the Morgans network. He updates on stocks in the Healthcare sector such as: Nanosonics (NAN), Resmed (RMD), Mach 7 (M7T), Impedimed (IPD), Audeara (AUA), Antisense Therapeutics (ANP), Neuren Pharmaceuticals (NEU).
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Fresh record closing highs for both the S&P500 and Nasdaq after the minutes from the Federal Reserve’s June monetary policy meeting indicated that officials are not yet ready to move on tightening policy - Dow up +104-points or +0.30% . Apple Inc rose for a seventh straight session, up +1.8% to log its first record closing high (US$144.57) since 26 January. The broader S&P500 rose +0.34% to a fresh record closing high of 4,358.13. Materials (up +1.02%) and Industrials (+1.00%) rose 1% to lead eight of the eleven primary sectors higher. Energy (down -1.73%) was the worst performing primary sector. Major investment banks Goldman Sachs Group Inc (down -0.59%) and Bank of America Corp (-0.80%) fell as long bond yields extended their declines. The Nasdaq inched +0.01% higher after touching a record intra-day high (14,755.33) shortly after the opening bell. Former President Donald Trump filed lawsuits against Facebook Inc (down -0.65%), Twitter Inc (-2.07%) and Google along with companies’ respective Chief Executive Officers alleging the technology giants violated his First Amendment rights. The small capitalisation Russell 2000 fell -0.95%.
Low cash rates and QE are both necessary to keep unemployment low enough to generate wage and price growth. Michael Knox discusses his views with the Morgans network.
Carolyn Breeze, GM ANZ of GoCardless is our guest today on the Bank to the Future podcast series. Carolyn talks about her time with Ebay and BrainTree before moving to head up Australia and NZ with the UK founded GoCardless. Carolyn talks about GoCardless’s presence here in the region, the ongoing partnerships, the local fintech sector, and what she is most excited about when it comes to payments.
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Banking #Cashless #Fintech
US markets stumbled on Tuesday as Wall Street kicked off the holiday-shortened week with concern that maybe the best of the economic recovery from the pandemic is behind us – the Dow slid 208.98 points or -0.60% to 34,577.37. The broader S&P 500 dipped -0.2% to 4,343.54 after hitting a record at the open. The 500-stock index snapped a seven-day winning streak, its longest since August. The S&P 500 is up nearly +16% year to date. Investors say they are now looking for fresh catalysts, such as strong corporate earnings reports or more fiscal stimulus, to power the next leg of the rally in stocks. Wall Street’s consensus year-end target for the S&P 500 stands at 4,276, representing a near -2% loss from the 500-stock average’s current level, according to the CNBC Market Strategist Survey that rounds up 16 top strategists’ forecasts. The Nasdaq Composite rose +0.17% to 14,663.64, closing at a new record. U.S. markets were closed for the July 4 Independence Day holiday on Monday.
Morgans Strategist Andrew Tang compares the current post-Covid market cycle to 2004. While history might not repeat itself it does often rhyme.
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ASX #Investment #Economy
Nick Harris, Senior Analyst at Morgans, discusses Technology One (ASX:TEN), an addition to our Morgans Best Ideas (July 2021).
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ASX #ausbiz #TEN #stocks #investment
Nathan Lead, Senior Analyst at Morgans, discusses Spark Infrastructure (ASX:SKI), an addition to our Morgans Best Ideas (July 2021).
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ASX #ausbiz #SKI #stocks #investment
Morgans Best Ideas are those stocks we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures. This month we add Technology One and Spark Infrastructure. Equity Strategist Andrew Tang explains why.
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Investment #Strategy #Stocks
European bourses advanced, with the Banking sector (up +1.8%) lifting the benchmark pan-European Stoxx 600 index (which includes UK equities) +0.34%. Germany's DAX edged +0.08% higher. France's CAC +0.22%. Germany’s national disease control centre, the Robert Koch Institute, said overnight that Britain, Portugal, Russia, India and Nepal will be removed from the country’s highest risk category of “virus variant areas” effective Wednesday (7 July). They will move into the second-highest category of “high-incidence areas.” Airlines and others are restricted largely to transporting German citizens and residents from “virus variant areas,” and those who arrive must spend 14 days in quarantine at home. People arriving from “high incidence areas,” however, can avoid quarantine if they can prove that they are fully vaccinated or have recovered from COVID-19. Others can cut short a mandatory 10-day quarantine by testing negative after five days. Transport is no longer restricted. In economic data, a final reading of the IHS Markit composite PMI printed at 59.5 in June, up from 57.1 in May and ahead of a “flash” estimate of 59.2. Eurozone Retail Sales for May, the ZEW Economic Sentiment index for the eurozone/Germany for July, and the eurozone/German Construction PMI for June, and German Factory Orders for May are released tonight AEST.
US equity markets climbed to fresh record closing highs ahead of the holiday long weekend after a solid June non-farm payrolls report bolstered confidence in a labour market recovery - Dow up +153-points or +0.44% to 34,786.35, logging its first record closing high since 7 May. International Business Machines (IBM) Corp fell -4.64% after the company announced that Jim Whitehurst was stepping down from the role of president but will continue to serve an adviser to the company after his departure. Mr. Whitehurst was seen as a potential contender for the chief executive role at IBM. Boeing Co fell 1.3% after a 737 cargo plane made an emergency landing off the coast of Honolulu. The broader S&P500 logged its 7th consecutive record closing high (the longest such streak since the 8-session winning streak that ended on 17 June, 1997) and 36th of 2021, gaining +0.75% to 4,352.34. Information Technology (up +1.39%) and Consumer Discretionary (+1.08%) rose over >1% to lead nine of eleven primary sectors higher on Friday (2 July). Several sectors closed at record levels on Friday (2 July), including technology and health care. Financials and Energy both eased -0.2% to be the only primary sectors to close in the red. Tesla Inc rose +0.14% after the electric vehicle maker posted record deliveries (201,250) for the second quarter that also exceeded Wall Street estimates (207K). The Nasdaq rose +0.81% to a record settlement of 14,639.33, with Apple Inc up +1.96% and Microsoft Corp +2.23%. However, the small capitalisation Russell 2000 fell -1.01%.
Dr Paul Griffin, Director of Infectious diseases at the Mater Hospital, spoke to the Morgans network at the Morgans Business Breakfast held on 23 June 2021 and discussed the latest in COVID-19 vaccine development, its rollout in Australia and how the different vaccines work in the immune system.
In today’s episode of Morgans Conversations, Morgans Adviser Chris Titley chats with Camplify’s founder and CEO Justin Hales. Justin talks about why he started the business, how the business has progressed, how they navigated 2020 as well what Justin is most excited about with the future of Camplify. Camplify, post this podcast, subsequently listed on the ASX on June 28 and is currently trading at $1.32 per share under the ASX Code CHL.
Morgans Corporate Limited was Lead Manager & Underwriter to the Initial Public Offer of shares in Camplify Holdings Limited in June 2021 and received fees in this regard. The interviewer owns shares in the following stock(s) mentioned in this report: N/A
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CHL #Camping #Motorhomes #Leisure #Morgans
US equity markets made a solid start to the third quarter, with the S&P500 scaling a fresh record high ahead of tonight’s key non-farm payrolls report - Dow up +131-points or +0.38% to 34,633.53, marking its fourth-highest close in history as it inches toward eclipsing its 7 May all-time closing high at 34,777.76. Chevron Corp was among the leading index performers following fresh gains on crude markets. The broader S&P500 logged its sixth consecutive all-time closing high (longest such streak since August 2020) and 35th record close of 2021, up +0.52% to 4,319.94. Energy (up +1.72%) and Utilities (+1.13%) rose over >1% to lead ten of the eleven primary sectors higher. Consumer Staples (down -0.28%) was the only primary sector to close in the red. The Nasdaq edged +0.13% higher to 14,522.38, just shy of its record settlement of 14,528.33. The small capitalisation Russell 2000 gained +0.81%. In merger and acquisition (M&A) news, MGM Resorts International rose +2.04% after announcing that it will buy the remaining 50% stake in its joint venture, CityCenter Holdings LLC, for US$2.125B from Infinity World Development.
US equity markets mostly firmer to close out the month, quarter and half, with the S&P500 eking out its 34th record close of 2021 - Dow gained +211-points or +0.62% . Boeing Co gained +1.61% after Germany's defense ministry announced it would buy five of the planemaker's P-8A maritime control aircraft. Walmart Inc rose +2.71% after the world’s largest retailer announced that it will start selling private-label analog insulin this week at a deep discount to branded insulin vials and pens, as it seeks to drive growth at its healthcare business. The product, ReliOn NovoLog, is a rapid-acting analog insulin used to control high blood sugar in adults and children with diabetes. It will require a prescription from a physician. More than two decades ago, Walmart launched a human insulin private label brand called ReliOn. The broader S&P500 edged +0.13% higher to log its fifth straight record closing high. Energy (up +1.31%) led seven of the eleven primary sectors higher. Real Estate (down -0.76%) was the worst performing primary sector overnight. ConocoPhillips hosted an Investor Day and detailed plans to add US$1B to its share buyback program for 2021, boosting its planned distributions to shareholders for the year to ~US$6B, or 7% of its current market capitalisation. The Nasdaq slipped -0.17%. The small capitalisation Russell 2000 inched +0.07% higher. • Chinese ride-sharing company DiDi Global Inc debuted on the New York Stock Exchange (NYSE) overnight, settling with a +1% gain (US$14.14 versus the initial public offer (IPO) price of US$14 per share) and market cap of US$67.8B. Didi raised US$4.4B in its IPO, with Uber Technologies (down -1.26%), Tencent Holdings Ltd (-1.10%) and SoftBank Corp (up +0.09%) the biggest shareholders.
In today’s episode of Morgans Conversations, Morgans Adviser Chris Titley chats with Camplify’s founder and CEO Justin Hales. Justin talks about why he started the business, how the business has progressed, how they navigated 2020 as well what Justin is most excited about with the future of Camplify. Camplify, post this podcast, subsequently listed on the ASX on June 28 and is currently trading at $1.32 per share under the ASX Code CHL.
Morgans Corporate Limited was Lead Manager & Underwriter to the Initial Public Offer of shares in Camplify Holdings Limited in June 2021 and received fees in this regard. The interviewer owns shares in the following stock(s) mentioned in this report: N/A
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CHL #Camping #Motorhomes #Leisure #Morgans
The RBA must continue quantitative easing until after unemployment has fallen below 4.5% and after the RBA inflation target is already being hit. Michael Know Morgans Chief Economist discusses with the Morgans network.
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RBA #Unemployment #Quantitativeasing
The S&P500 and Nasdaq eked out fresh record highs highs - Dow inched +9-points higher, paring an earlier climb of over >100-points. The broader S&P500 eked out a +0.03% gain to settle at 4,291.80 and log its 33rd record closing high of 2021. Information Technology (up +0.70%) did the heavy lifting overnight and was one of only three primary sectors to advance (along with Consumer Discretionary (+0.23%) and Health Care (+0.07%)). Utilities (down -1.65%) was the worst performing primary sector. Morgan Stanley (up +3.35%) and Goldman Sachs Group Inc (+1.06%) advanced. Five of the six largest U.S. banks announced on Monday (28 June) that they would increase dividends after the Federal Reserve last week lifted previous temporary restrictions on dividends and share buybacks.
Technology stocks led both the S&P500 and Nasdaq to fresh record highs - Dow fell -151-points or -0.44% , with Boeing Co fell -3.39% after regulators told the company it is not likely to receive certification for its long-range aircraft until mid-to-late 2023. Chief Executive Officer (CEO) Dave Calhoun earlier this month said it expected certification in the fourth-quarter of 2023. Chevron Corp -3.08%. Morgan Stanley rose over >2.5% in extended trading (after falling -0.79% in the regular session) after doubling its quarterly dividend to US$0.70c per shar and announced a new US$12B stock repurchase plan through until June 2022. Morgan Stanley’s new capital plan appeared to be among the most aggressive of the banks rushing to announce at the market close and comes after last week’s Federal Reserve stress tests that saw the central bank say that the biggest U.S. banks could easily withstand a severe recession, noting that all 23 institutions in the 2021 annual stress test remained “well above” minimum required capital levels during a hypothetical economic downturn. Goldman Sachs Group Inc, Bank of America Corp and JPMorgan Chase & Co also announced that they were hiking their capital payouts. The broader S&P500 added +0.23% to 4,290.61 to record its third consecutive record closing high and 32nd of 2021 after touching a fresh record intra-day high of 4,292.14 earlier in the session. Information Technology (up +1.11%) led seven of the eleven primary sectors higher. Energy (down -3.33%) was the worst performing primary sector. Carnival Corp fell -7.04% after the cruise operator said that it may sell up to US$500M in stock from time to time as part of an at-the-money equity offering program. United Airlines Holdings Inc fell -2.58% ahead of the carrier’s Investor Day tonight AEST. The Nasdaq gained +0.98% to 14,500.51, also clocking a fresh record intra-day peak (14,505.19). Facebook Inc rallied +4.18% and became the fifth US company to achieve a market capitalisation of US$1 trillion after a federal judge opted to dismiss an antitrust case that the Federal Trade Commission had brought against the social-media giant. Facebook’s market capitalisation hit a 2020 low of US$416.2B in March last year. Microsoft Corp (up +1.40%), Apple Inc (+1.25%), Amazon.com Inc (+1.05%) and Nvidia Corp (+5.01%) all logged solid gains. The small capitalisation Russell 2000 fell -0.52%.
It’s easy to argue the market is increasingly pricing equities on a relative basis, heavily influenced by momentum. Equity Strategist Tom Sartor identifies potential areas of risk and opportunity amid the current market and coming into EOFY.
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Economy #sharemarket #ASX
US equity markets advanced, with the S&P500 logging a fresh record closing high - Dow up +237-points or +0.69% 34,433.84 to settle within 345-points or 1% of its 7 May record closing high (34,777.76). Nike Inc soared +15.53% after the world’s largest athletic footwear and apparel seller posted better-than-expected fiscal fourth quarter earnings per share (US$0.93c versus a loss of -US$0.51c in the year ago period and consensus analyst forecasts for US$0.51c) and revenue (US$12.34B versus US$6.31B in the year ago period and consensus US$11.03B) after the closing bell of last Thursday’s (24 June) session. The broader S&P500 added +0.33% to settle at a fresh record closing high of 4,280.70. Financials (up +1.25%) and Utilities (+1.13%) rose over >1% to lead ten of the eleven primary sectors higher. Information Technology (down -0.15%) was the only primary sector to close in the red. Big banks Morgan Stanley (up +1.52%), Citigroup Inc (+0.32%), Bank of America Corp (+1.93%), JPMorgan Chase & Co (+1.01%) and Wells Fargo (+2.66%) added between +0.3% and 2.7% after the Fed announced they have cleared latest stress test and will no longer face pandemic-era restrictions on buying back stock and paying dividends. Chinese regulators said on Saturday (26 June) Tesla Inc (down -1.17%) would ‘recall’ nearly 300,000 China-made and imported Model 3 and Model Y cars for an online software update related to assisted driving, with owners not required to return their vehicles. The Nasdaq dipped -0.06% a day after logging its 17th record close (14,369.71) of 2021. The small capitalisation Russell 2000 eked out a +0.03% rise. Friday (25 June) saw heightened trading volume as FTSE Russell was set to rebalance its U.S. stock indexes at the market close. Bank of America estimated that more than >US$170B worth of shares would be changed hands as a result of 625 changes in total to Russell indexes, including the Russell 1000 and Russell 2000.
Michael Knox, Morgans Chief Economist discusses with the Morgans network how the Aussie dollar should rise, to catch up with rises in commodity prices.
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Fresh record highs for the both the S&P500 and Nasdaq after President Biden declared that the White House had struck an ~US$1 trillion infrastructure deal with a bipartisan group of senators that includes US$579B in new spending - Dow up +323-points or +0.95% to 34,196.82 and sit ~2.6% below its all-time record high. Caterpillar Inc rose +2.6%. Goldman Sachs Group Inc (up +2.13%) and JPMorgan Chase & Co (+0.92%) advanced ahead of the release of the Federal Reserve’s annual bank stress test results after the closing bell. The broader S&P500 gained +0.58% to 4,266.49. The Nasdaq +0.69% to 14,369.71 and logging its 17th record close of 2021. Microsoft Corp rose +0.53% to US$266.69 after unveiling the first overhaul of its Windows operating system in almost 6-years. becoming just the second U.S. company to close a trading day with a market capitalisation above >US$2 trillion. Microsoft’s market value hit a 2020 low of US$1.03 trillion in the early days of the COVID-19 crisis, according to Dow Jones Market Data, but the shares are up more than >96% from their closing low of US$135.42 on 16 March, 2020. The market-value gains for Microsoft since its March 2020 low are worth more than Facebook Inc’s (up +0.76%) entire market capitalisation (~US$973B). Apple Inc (down -0.22%) notched a market capitalisation of US$2 trillion for the first time in August last year and is now worth more than >US$2.2 trillion. The small capitalisation Russell 2000 gained +1.31%.
Ralph Highnam CEO and Founder of Volpara Health (VHT:ASX) explains the significance of the technology and how its successfully being deployed across many breast clinics.
US equity markets mixed although the technology centric Nasdaq scaled a fresh record peak - Dow eased -71-points or -0.21% . The broader S&P500 slipped -0.11% but still sits ~0.4% from its all time high. The Nasdaq edged +0.13% higher to book its 16th record closing high (14,271.73) of 2021 and touching a fresh record intra-day peak (14,317.66). The small capitalisation Russell 2000 added +0.33%.
US equity markets followed through in Monday night’s (21 June) rebound, with the technology centric Nasdaq logging a fresh record closing high - Dow added +69-points or +0.20% . The broader S&P500 rose +0.51% to 4,246.44, settling just shy of last week’s (14 June) record closing high (4,255.15), with Consumer Discretionary (up +1.04%) and Information Technology (+0.89%) leading nine of the eleven primary sectors higher. Utilities (down -0.68%) and Real Estate (-0.44%) were the only primary sectors to close in the red. Delta Air Lines Inc (down -0.87%) plans to hire more than 1,000 pilots by next summer, according to multiple news reports. Citing an internal memo, Reuters and Bloomberg News separately reported that the airline looks to increase the number of pilots by ~8%, anticipating a recovery in air travel over the next year as international travel restrictions ease. The Nasdaq erased earlier losses to settle +0.79% higher at 14,253.27, eclipsing its previous record close of 14,174.14 set on 14 June. Microsoft Corp rose +1.1% and briefly saw its market capitalisation rise above >US$2 trillion after touching a record intra-day high of US$265.79. Microsoft is looking to join Apple Inc (up +1.27%), which is the only U.S. company to have closed a trading day with a market capitalization above >US $2 trillion. Apple is now worth ~US$2.2 trillion. Alphabet Inc rose +0.43% despite the European Commission announcing that it had opened a formal probe into Google’s digital advertising business in order to assess whether the U.S. company is distorting competition by favouring its own business. The small capitalisation Russell 2000 rose +0.43%. In merger and acquisition (M&A) news, Blackstone Real Estate Income Trust Inc., a real-estate investing platform managed by a unit of private-equity firm Blackstone Group Inc (up +0.10%) announced that it would acquire Home Partners of America in a deal valuing the company at US$6B.
David Allingham & Nick Guidera, two of the Portfolio Managers at Eley Griffiths Group discuss the benefits of outsourcing to small cap managers and their emerging companies fund.
US equity markets rebounded from last Friday’s (18 June) sharp sell-off and bond markets softened - Dow rallied +587-points or +1.76%, recording its best single session percentage climb since 5 March and rebounding from its worst weekly performance since the week ended 30 October, 2020 last week. Boeing Co gained +3.34%, while the Banks (including JPMorgan Chase & Co +1.70% and Goldman Sachs Group Inc +2.50%) also rebounded. The broader S&P500 gained +1.4%, recording its best single session percentage rise since 14 May to move back to within 1% of its record closing high. Energy (up +4.29%) leading all eleven primary sectors higher. Financials (up +2.35%), Industrials (+2.18%) and Materials (+2.07%) all rebounded over >2%. American Airlines Group Inc (up +0.72%) aid it was trimming some flights (amounting to about 1% of planned flying in the first half of July) to alleviate potential strains on its operations. The Nasdaq +0.79% to 14,141.48 and notch its third highest settlement on record. Microsoft Corp gained +1.23% and hit a record intra-day high (US$263.52). Netflix Inc fell -0.75% despite detailing a partnership with Steven Spielberg’s film and TV studio Amblin Partners for multiple new films for the streaming platform. The small capitalisation Russell 2000 gained +2.16%.
US equity markets retreated to close out a soft week that saw some unwinding of the reflation trade, with investors also eyeing some hawkish comments from St. Louis Federal Reserve President James Bullard - Dow fell -533-points or -1.58% . The broader S&P500 shed -1.31%, with the Energy (down -2.92%), Utilities (-2.63%) and Financials (-2.45%) all falling over >2% and leading all eleven primary sectors lower. ~90% of the S&P500’s constituents settled lower on Friday. Both the Dow and S&P 500 hit their session lows in the final minutes of Friday’s (18 June) trading session and settled around those levels. The Nasdaq -0.92%. Amazon.com Inc’s (down -0.07%) Prime Day two day retail event kicks off tonight AEST., with EMarketer forecasting that total digital sales in the U.S. on Prime Day will jump +17.3% year over year to US$12.18B. The small capitalisation Russell 2000 dropped -2.17%. Last Friday’s (18 June) session also marked "quadruple witching day", the quarterly simultaneous expiration of U.S. options and futures contracts, and saw the largest options expiration in history.
Global markets are set to extend their winning streaks over the medium term despite being overbought.
US equity markets mixed as investors continued to ponder the latest monetary policy pronouncements from the Federal Reserve, although technology stocks traded strongly - Dow fell -210-points or -0.62%, extending its losing streak into a fourth straight day – the longest losing streak since January. Among some of the Dow’s key components, Caterpillar Inc fell -3.55%, Chevron Corp -2.37% and Dow Inc fell -3.13%, The broader S&P500 dipped -0.04%, with the Energy (down 3.49%), Financials (2.94%) and Materials (-2.20%) recording sharp falls. However, Information Technology rose +1.17% to be the leading primary sector performer. The technology-centric Nasdaq gained +0.84%, with Facebook (up +1.64%), Apple Inc +1.26%), Amazon.com Inc (+2.17%) all posting solid gains. The small capitalisation Russell 2000 fell -1.18%.
Jay Powell thinks that rapid US employment growth is the standout issue in the US economy, not inflation.
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TheFed #Economy #JayPowell
US equity markets retreated but settled off their worst levels of the session as investors digested the Federal Reserve’s latest monetary policy pronouncements that saw the central bank raise its headline inflation projection - Dow fell -266-points or -0.77% , dropping as much as -382-points or -1.1% earlier in the session and booking a third straight session decline. The broader S&P500 shed -0.54%, paring an earlier decline of as much as -1%. Utilities (down -1.49%), Consumer Staples (-1.24%) and Materials (-1.17%) all fell over >1% to lead ten of the eleven primary sectors lower. Consumer Discretionary (up +0.16%) was the only primary sector to advance. Oracle Corp fell -5.59% following the release of their fourth quarter result after the closing bell of the previous session. General Motors Co (up +1.56%) expects the ongoing semiconductor chip shortage and rising inflation to increase its expenses during the second half of the year by up to US$3B, according to Chief Financial Officer (CFO) Paul Jacobson The Nasdaq eased -0.24%, recovering from an earlier slide of as much as -1.2%. The small capitalisation Russell 2000 lost -0.23%.
US equity markets retreated as investors digested some mixed economic data and eyed the conclusion of the Federal Reserve’s two day monetary policy meeting, with the S&P 500 and Nasdaq pulling back from the record closing highs logged in the previous session - Dow down -94-points or -0.27% . The broader S&P500 eased -0.20% after touching a fresh record intra-day high (4,257.16) earlier in the session, with Real Estate (down -1.04%) and Information Technology (-0.64%) the worst performing primary sectors. Energy (up +2.06%) was comfortably the leading the primary sector performer. The Nasdaq fell -0.71%, with Apple Inc (down -0.64%), Alphabet Inc (-0.25%), Amazon.com Inc (-0.02%) and Microsoft Corp (-0.59%) all registering losses The small capitalisation Russell 2000 slipped -0.26%.
US equity markets advanced after a strong finish to the opening session of the week, with technology stocks outperforming - Dow down -86-points or -0.25%, paring an earlier -268-point/-0.78% decline. FedEx Corp in extended trading after its board approved a US$0.10c or +15% increase to the delivery and logistics company's dividend to US$0.75c per share.. The broader S&P500 edged +0.18% higher to 4,255.15, moving into positive territory in the final 15-minutes of the session and logging its 29th record closing high of the year. Information Technology rose +1.04% to lead six of the eleven primary sectors higher. Materials (down -1.28%) and Financials (-1.03%) both fell over >1% to be the worst performing primary sectors. Tesla Inc (up +1.28%) Chief Executive Officer (CEO) Elon Musk on Sunday (13 June) said the company will resume bitcoin transactions once it confirms there is reasonable clean energy usage by miners. The Nasdaq gained +0.74% to 14,174.14, logging its first record closing high since 26 April. The small capitalisation Russell 2000 fell -0.41%. Novavax (NVAX) slipped -0.9% despite announcing that Phase 3 trial data showed its COVID-19 vaccine to be 90.4% effective against the disease overall, and 100% effective at preventing severe cases.
Benchmark US equity markets advanced, shrugging off the latest evidence of accelerating inflation - Dow inched +19-points or +0.06% higher. The broader S&P500 added +0.47% to settle at a fresh record closing high of 4,239.18, also touching a fresh record intra-day high (4,249.74) earlier in the session. Healthcare (up +1.69%) led seven of the eleven primary sectors higher. Financials (down -1.12%) was the worst performing primary sector. RH (formerly known as Restoration Hardware) soared +15.67% after the home furnisher posted a better-than-expected first quarter result after the close of the previous session and lifted its fiscal full year sales.
US equity markets retreated, losing steam in the final half-hour of trading ahead of tonight’s AEST May inflation data - Dow fell -153-points or -0.44% . The broader S&P500 slipped 0.18% to 4,219.55, having surpassed its 7 May record closing high (4,232.60) earlier in the session and touching an intra-day peak of 4,237.09. Financials (down -1.06%) and Industrials (-1.03%) led seven of the eleven primary sectors lower. Healthcare (up +1.00%) and Utilities (+0.85%) sat atop the primary sector leaderboard. Target Corp fell -1.34% despite it would raise its quarterly dividend by +32.4% to US$0.90c per share from US$0.68c and reported traffic growth of 4.8% over the past 13 quarters. The Nasdaq dipped -0.09% to 13,911, booking its first loss in four sessions after touching an intra-session peak of 14,003.50. The small capitalisation Russell 2000 fell -0.71%.
US equity markets settled narrowly mixed as investors continued to eye Thursday night’s AEST (10 June) inflation report - Dow eased -30-points or -0.09% . The broader S&P500 eked out a +0.02% gain, touching an intra-session peak (4,236.74) above its record close (4,232.60) set on 7 May. Consumer Discretionary (+0.96%) led six of the eleven primary sectors higher. Utilities (down -0.91%) was the worst performing primary sector. Tesla Inc erased earlier gains to settle -0.25% lower despite data from Beijing reporting an increase in deliveries. The electric car maker delivered 33,463 China-made vehicles in that market in May, a +29% jump from April. The data had also showed China’s overall new electric vehicle sales had surged 177% compared with a year ago. Southwest Airlines Co rose +1.06% after the carrier provided May metrics and a June outlook that reflected improving leisure passenger traffic and fares. Southwest also said it recently entered into an agreement with Boeing Co (up +0.04%) to increase its 2022 orders by 34 Boeing 737 MAX 7 planes, bringing the total to 234 firm orders. Airline stocks more broadly turned higher after the Centers for Disease Control and Prevention eased travel recommendations for 61 countries, including Japan, France, South Africa, Canada, Spain and Italy. United Airlines Holdings Inc climbed +0.75% and Delta Air Lines Inc +2.08%. The Nasdaq rose +0.31%. The small capitalisation Russell 2000 rose +1.06%.
US equity markets settled modestly weaker following a session absent any notable catalysts and as investors eye Thursday night’s AEST (10 June) consumer price inflation (CPI) report for May - Dow lost -126-points or -0.36% to 34,630.24, having climbed above its 7 May record closing high (34,777.76) earlier in the session. The broader S&P500 dipped -0.08%, with Materials (down -1.23%) leading seven of the eleven primary sectors lower. Real Estate (up +0.91%) was the leading primary sector performer. Biogen Inc surged 38.3% following news that the Food and Drug Administration (FDA) approved its Alzheimer’s disease drug aducanumab.
US equity markets - Dow up +179-points or +0.52% . The broader S&P500 gained +0.88%. Both the Dow and S&P500 settled within 0.1% of record highs. The Nasdaq rallied +1.47%. Apple Inc rose +1.9% ahead of the technology giant’s Worldwide Developers Conference (WWDC), which starts tonight AEST. Microsoft Corp rose +2.07%. The small capitalisation Russell 2000 added +0.31%.
US equity markets settled with modest gains as investors eye Friday night’s AEST (5 June) key non-farm payrolls report for May - Dow added +25-points or +0.07%, recording its fifth consecutive session advance and settling ~1.4% shy of its record all-time high. The broader S&P500 edged +0.14% higher, with Energy (up +1.74%) and Real Estate (+1.41%) leading six of the eleven primary sectors higher. Materials (down -0.94%) was the worst performing primary sector overnight. Tesla Inc fell -3.01% after electric car maker said it is recalling nearly 6,000 vehicles over concerns that their brake caliper bolts might loosen, which could potentially result in a loss of tire pressure. Tesla was also reportedly told by the Securities and Exchange Commission that it had failed to properly approve tweets by Chief Executive Officer (CEO) Elon Musk. The technology-centric Nasdaq also added +0.14%. Microsoft Corp (down -0.04%) announced that it will unveil “the next generation of Windows” on 24 June. Windows, the dominant operating system for personal computers, is the source of ~14% of total revenue for Microsoft. The small capitalisation Russell 2000 edged +0.13% higher. In merger and acquisition (M&A) news, Etsy Inc gained +7.15% after announcing it is buying London-based privately held fashion marketplace Depop for US$1.625B.
A tight market for iron ore generates more income to employ more Australians, and lift GDP. Michael Knox discusses with the Morgans network.
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GDP #Ironore #China
Morgans Adviser Tim Evans interviews Jason Orthman, Lead Portfolio Manager, Deputy CIO & Deputy Chair of the Executive Committee at Hyperion Asset Management.
Hyperion has over $10 billion in funds under management and an exceptional track record of performance since establishment in 1996.
Jason discusses Hyperion’s past successes, investment process, maintaining conviction, and current market factors. Hyperion conducts deep fundamental analysis on businesses before investing and has a long term investment horizon.
Hyperion conducts fundamental analysis on businesses for three to five years before investing.
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fundmanager #hyperion #ETF
US equity markets settled with modest gains as investors eye Friday night’s AEST (5 June) key non-farm payrolls report for May - Dow added +25-points or +0.07%, recording its fifth consecutive session advance and settling ~1.4% shy of its record all-time high.
The broader S&P500 edged +0.14% higher, with Energy (up +1.74%) and Real Estate (+1.41%) leading six of the eleven primary sectors higher. Materials (down -0.94%) was the worst performing primary sector overnight.
Tesla Inc fell -3.01% after electric car maker said it is recalling nearly 6,000 vehicles over concerns that their brake caliper bolts might loosen, which could potentially result in a loss of tire pressure. Tesla was also reportedly told by the Securities and Exchange Commission that it had failed to properly approve tweets by Chief Executive Officer (CEO) Elon Musk.
The technology-centric Nasdaq also added +0.14%. Microsoft Corp (down -0.04%) announced that it will unveil “the next generation of Windows” on 24 June. Windows, the dominant operating system for personal computers, is the source of ~14% of total revenue for Microsoft.
The small capitalisation Russell 2000 edged +0.13% higher. In merger and acquisition (M&A) news, Etsy Inc gained +7.15% after announcing it is buying London-based privately held fashion marketplace Depop for US$1.625B.
Peter Rowland CEO of Micro-X explains the significance of the next generation X-ray technology for global health and security markets.
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X-ray #Security #Technology
US equity markets mixed after resuming trading following the Memorial Day long weekend, with investors continuing to monitor inflation signals - Dow added +46-points or +0.13%, paring an opening gain of as much as 300-points but logging a fourth straight session of gains. The broader S&P500 dipped -0.05% despite a +3.93% jump for the Energy sector, and with the S&P 500 Financial sector (+0.66%) hitting a record high. Health Care (down -1.64%) and Utilities (-0.62%) were the worst performing primary sectors. American Airlines Group Inc and United Airlines gained +1.77% and +2.26%, respectively, after the Transportation Security Administration said it screened an average of 1.78M people from Friday through Monday, well above the volumes one year ago and another sign that U.S. air travel has reached a pandemic-era high. Those volumes are more than six times higher than a year ago but still 22% below Memorial Day weekend in 2019. Abbott Laboratories fell -8.3% after the company cut its full-year 2021 profit forecast, citing expectations for a sharp decline in revenue from its COVID-19 tests as more Americans get vaccinated. The Nasdaq slipped -0.09%. The small capitalisation Russell 2000 rose +1.14%. In merger and acquisition (M&A) news, Cloudera Inc jumped +23.9% after private equity firms KKR & Co and Clayton Dubilier & Rice LLC agreed to take the data analytics firm private for US$4.7B (or US$16 per share).
In this interview, we chat with Tim Fung, CEO and Co-founder of Airtasker, in the first podcast post the IPO. We caught up with Tim 6 months ago, and since then a lot has happened in regards to the business with an IPO as well as expansion in to the US via their first acquisition. Tim talks about the platform enhancements, the global nature of the business , why and how they are entering the US, as well as what he is most excited about.
Morgans Corporate Limited was Lead Manager & Underwriter to the Initial Public Offer of shares in Airtasker Limited in March 2021 and received fees in this regard. Morgans Corporate Limited was Lead Manager & Underwriter to the Placement of shares in Airtasker Limited in May 2021 and received fees in this regard.
The interviewer owns shares in the following stock(s) mentioned in this report: ART.
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Airtasker #Outsource #Tasks
US equity markets were CLOSED overnight for the Memorial Day Holiday. In US economic data, the Institute of Supply Management’s (ISM) Manufacturing purchasing manager’s index (PMI) for May, a final reading of the Markit Manufacturing PMI for May, and Construction Spending for April are released tonight AEST.
US equity markets advanced ahead of the Memorial Day long week end, shrugging off the latest rise in inflation - Dow up +65-points or +0.19% . Boeing Co fell -1.47% after the Wall Street Journal reported that the aeronautics company halted deliveries of its 787 Dreamliners, adding fresh delays for customers. The broader S&P500 edged +0.08% higher , with Real Estate (up +0.64%) and Utilities (+0.46%) leading seven of the eleven primary sectors higher. The Nasdaq settled +0.09% higher. The small capitalisation Russell 2000 slipped -0.18%. US equity and bond markets are CLOSED tonight AEST for the Memorial Day holiday.
Dr. Derek Jellinek, Senior Analyst speaks to the Morgans network. He updates on stocks in the Healthcare sector such as: Ramsay Healthcare (ASX:RHC), Resmed (ASX:RMD), Sonic Healthcare (ASX:SHL), Ansell (ASX:ANN), CSL (ASX:CSL), Volpara Health Technologies (ASX:VHT).
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Healthcare #Cancer #PPE
US equity markets advanced in relatively subdued trading ahead of the Memorial Day long weekend - Dow up -142-points or +0.41% . Boeing Co rose +3.87%. The broader S&P500 edged +0.12% higher, with Industrials (up +1.37%) and Financials (+1.19%) both up over >1% to lead six of the eleven primary sectors higher. Boeing supplier General Electric Co rose +7.09%. The technology-centric Nasdaq dipped -0.01%. The small capitalisation Russell 2000 rose +1.06%, its eighth consecutive session advance and longest such winning streak since 1995.
US equity markets settled modestly higher in light volume trade ahead of the Memorial Day long weekend - Dow inched +11-points or +0.03% higher . The overnight session marked the 125th anniversary of the Dow Jones Industrial Average, which made its debut 26 May, 1896 with just 12 members. The indice’s best year occurred in 1915 when the benchmark rallied +81.7%, while 1931 marked its worst year with a -52.7% loss. The broader S&P500 edged +0.19% higher, with Energy (+0.93%) and Consumer Discretionary (+0.90%) leading eight of the eleven primary sectors higher. Healthcare (down -0.56%) was the worst performing primary sector. Ford Motor Co rallied +8.4% after the vehicle maker said it planned to spend US$30B on vehicle electrification by 2025, up from a previously stated goal of US$22B in electric vehicle spending. Cruise operators continued to trade strongly, with Carnival Corp up +2.76% and Royal Caribbean Cruises Ltd +3.92%. A tiny hedge fund - Engine No. 1 - dealt a major blow to Exxon Mobil Corp overnight, unseating at least two board members as part of a heated Environmental, Social and Corporate Governance (ESG) battle. Eight of Exxon’s nominees were elected to its 12-member board of directors, along with two of Engine No. 1’s nominees, the company said. The counting is not finished, so Engine No. 1 could potentially see three of its four nominees join the Exxon board. The Nasdaq rose +0.59%. Amazon.com Inc (up +0.19%) agreed to acquire privately owned MGM Holdings for ~US$8.45B, confirming months long speculation and marking the latest in a steady stream of consolidation in the movie and television content business. The small capitalisation Russell 2000 jumped +1.97%.
In today’s Morgans Conversations Podcast, Adviser Chris Titley interviews Sam Riley, Co-founder and CEO of ASX listed Ansarada (ASX:AND). Ansarada, named aptly after the four founders, provides cloud-based software as a service (SaaS) information governance solutions. The company recently listed on the stock exchange post the merger with The Doc Yard. Sam goes in to conversation about the history of the business, the navigation of the COVID-19 period , the customer growth story as well as the macro environment.
Morgans Corporate Limited acted as Joint Lead Manager and Underwriter for the Capital Raising of Ansarada Group Limited and received fees in this regard.
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SaaS #Software #Cloudservices
US equity markets logged modest falls, erasing earlier gains in a session absent any major catalysts - Dow fell -82-points or -0.24%, unwinding an earlier gain of over >100-points and snapping a three-session winning streak. The broader S&P500 lost -0.21% , with Energy (down -2.04%) leading six of the eleven primary sectors lower. United Airlines Holdings Inc rose +1.5% after the carrier said yields on domestic leisure tickets purchased this month topped 2019 levels amid the re-opening.The Nasdaq dipped -0.03%. Amazon.com Inc added +0.43% despite Washington, D.C., Attorney General Karl Racine said he’s suing the e-commerce giant on antitrust grounds. He alleged Amazon’s practices have unfairly raised prices for consumers and suppressed innovation. The small capitalisation Russell 2000 lost -0.97%. Moderna Inc rose +3.10% after the company said a new study showed its COVID-19 vaccine was effective in children aged 12 to 17, a finding that could clear the way for a second-shot for use in adolescents.
Technology stocks fuelled a fresh rally for US equity markets - Dow up +186-points or +0.54%, logging a third straight session climb albeit paring an earlier climb of ~265-points or +0.77%. 22 of the Dow’s 30 components advancing. The broader S&P500 gained +0.99%, with Communication Services (up +1.84%) and Information Technology (+1.76%) leading ten of the eleven primary sectors higher. MGM Resorts International (up +5.14%) was the leading S&P500 constituent, with ~83% of the index’s stocks advancing. Norwegian Cruise Line Holdings Ltd gained +4.70% after announcing that it will resume cruises to Alaska from Seattle starting 7 August. Cruise operating peer Carnival Corp rose +2.69%. Airlines also posted solid gains, with American Airlines Group Inc up +1.86%% and United Airlines Holdings Inc +1.52%. The Nasdaq rallied +1.41%, with Google parent Alphabet Inc (up +2.63%), Facebook Inc (+2.66%) and Microsoft Corp (+2.29%) all gaining over >2%. Amazon.com Inc rose +1.31% amid reports that the company is nearing a deal to acquire MGM Studios for between US$8.5B and US$9B. The deal is expected to be announced as soon tonight AEST. It would mark Amazon’s biggest acquisition since it bought Whole Foods in 2017 for US$13.7b. The small capitalisation Russell 2000 rose +0.54%. Square Inc rose +5.47% in afternoon trading after Bloomberg News reported the payments company could offer savings and checking accounts in the near future.
US equity markets closed out another volatile week on a mixed note - Dow gained +124-points or -0.36%. Boeing Co gained +3.1% after industry sources said the planemaker had drawn up preliminary plans to increase 737 MAX output to as many as 3 jets per month in 2022. Construction and mining equipment manufacturer Caterpillar Inc (up +0.96%) and investment banks Goldman Sachs Group Inc (+1.80%) and JPMorgan Chase & Co (+1.14%) also traded strongly. The broader S&P500 slipped -0.08% Consumer Discretionary (down -0.59%) and Information Technology (-0.52%) both down over >0.5% to lead six of the eleven primary sectors lower. Financials (up +0.9%) was the leading primary sector performer. Ford Motor Co jumped +6.73% after announcing plans late last Thursday (20 May) to form a battery joint venture un the US with South Korean battery manufacturer SK Innovation to support its electric vehicle rollout. The Nasdaq -0.48%. NVIDIA Corp rose +2.6% after the chipmaker announced a four-for-one stock split. Since the company’s last share spilt (3-for-2) in 2007, NVIDIA shares have rallied 1,640.7% as the company cemented its essential position in the realm of artificial intelligence. Shareholders will vote on the proposed split at the company’s annual meeting on 3 June, with the stock trading on a split-adjusted basis beginning on 20 July if the resolution is passed. J.P. Morgan kicks off its three-day virtual Global Technology, Media, and Communications conference tonight AEST, featuring companies in sectors such as hardware, semiconductors, and media. The small capitalisation Russell 2000 +0.34%.
Michelle Gallaher, CEO of Opyl (ASX:OPL), outlined the exciting future for Opyl as the company launches its global patient recruitment platform.
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OPL #Healthcare #ClinicalTrials
U.S. stocks rose on Thursday, rebounding from three straight days of losses as technology shares staged a comeback, while the latest jobless claims totalling a fresh pandemic-era low also boosted sentiment. The Dow Jones rose +188 points, or +0.6%. The S&P 500 gained nearly +1.1% with tech being the biggest gainer among 11 sectors. The Nasdaq climbed +1.8% as Microsoft, Facebook and Alphabet all gained more than 1%. Netflix and Apple rallied more than 2% each. Tesla, chip stocks and other speculative parts of the market, which took a big hit in the previous session, bounced back on Thursday amid a recovery in bitcoin prices.
US equity markets booked a third straight session of declines although pared losses in the final hour of trading, with the latest Federal Reserve monetary policy meeting minutes underscoring an emerging debate at the central bank over inflation risks and when to start discussing a pullback of its asset purchases - Dow fell -165-points or -0.48%, having been down as much as -586-points at the lows of the session. The broader S&P500 lost -0.29%, with Energy (down -2.52%) and Materials (-1.54%) leading nine of the eleven primary sectors lower. Information Technology (up +0.33%) and Communication Services (+0.10%) were the only primary sectors to advance. Dominos Pizza Inc fell ~0.9% in extended trading after announcing that Chief Financial Officer (CFO) Stuart A. Levy will be leaving the company "to pursue other opportunities" . Mr Levy is stepping down as CFO immediately but will continue with Domino's through the end of August as an adviser to ensure a smooth transition. Southwest Airlines Co lost -2.71% despite disclosing that April operating revenue and load factor were in line with expectations, and said it continues to see improvement in leisure passenger demand and bookings for May and June travel. The technology-centric Nasdaq dipped -0.03%, paring an earlier decline of over >1.7%. The small capitalisation Russell 2000 lost -0.78%.
US output and inflation for the next four years.
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US equity markets weaker, with technology stock turning lower late in the session - Dow fell -267-points or -0.78% . The broader S&P500 lost -0.85% with Energy (down -2.63%) leading nine of the eleven primary sectors lower. The Nasdaq -0.56% . Amazon.com Inc fell -1.17% following reports that the company is in discussions to acquire MGM Holdings Inc for ~US$9B. Apple Inc (down -1.12%) had previously been rumoured to have been interested in buying MGM, which started formally seeking a sale last year. The small capitalisation Russell 2000 %.
US equity markets eased as inflation concerns persist - Dow eased -54-points or -0.16% . The broader S&P500 lost -0.25%, with Communication Services (down -0.88%), Utilities (-0.86%) and Information Technology (0.70%) leading eight of the eleven primary sectors lower. Energy (up +2.30%) was the clear outperformer. Tesla Inc fell -2.19%, with famed investor Michael Burry – who made a fortune betting against mortgage securities before the 2008 global financial crisis - revealing a short position against the electric vehicle maker of 800,100 shares or ~US$534M in a regulatory filing. AT&T Inc fell -2.7% (after hitting a record intra-day high of US$33.88 earlier in the session) after confirming weekend press speculation that it will merge its content unit WarnerMedia with rival Discovery Inc (down -5.05%) in a deal to create a media giant with an enterprise value of US$150B. United Airlines Holdings Inc rose +2.33% after announcing that it is adding more than 400 daily flights to its July schedule and will increase its service to destinations in Europe, as booking for summer travel had more than tripled (up +214%) compared with 2020 levels The technology-centric Nasdaq lost -0.38%, paring an earlier decline of over >1.2%. Microsoft Corp lost -1.2% and Apple Inc -0.93%. The small capitalisation Russell 2000 edged +0.11% higher. In broader stock moves, Airbnb Inc dropped -6.16% as its post initial public offering (IPO) lockup period ends, allowing insiders the right to sell shares.
Kelly+Partners Group provides accounting and other professional services in Australia via its unique “Partner Owner driver” model. Brett Kelly, CEO, provides a brief outline of the business and its model and how the group's 5-year plan to double its earnings.
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Accounting #KPG #Wealth
US equity markets ended a tough week punctuated by inflation concerns on a positive note, with investors shrugging off a weak April retail sales report - Dow gained +361-points or +1.06% . The broader S&P500 +1.49%, with ~89% of index’s components advancing. Energy (up +3.16%) and Information Technology (+2.12%) led all eleven primary sectors higher. Stocks most exposed to the ongoing recovery traded strongly, buoyed by the Centers for Disease Control and Prevention updating its guidance around masks for people who are fully vaccinated late last Thursday (13 May), saying they no longer need to wear a mask or socially distance "in any setting" except when required by laws or rules. United Airlines Holdings Inc (up +5.44%) and American Airlines Group Inc (+5.61%) both climbed more than 5%, while cruise operators Carnival Corp (up +8.28%) and Norwegian Cruise Line Holdings Ltd (+8.09%) both jumped over >8%. CNBC reported over the weekend that AT&T Inc is in advanced talks to merge its content unit WarnerMedia with rival Discovery in a deal to create a media giant with an enterprise value of US$150B that will strengthen the combined company against rival media giants Netflix Inc and Walt Disney Co (down -2.60%), citing people familiar with the matter. The technology-centric Nasdaq gained +2.32%. Facebook Inc rose +3.5%, while Google parent Alphabet Inc (up +2.21%) and Microsoft Corp (+2.11%) both climbed over >2%. Apple Inc (up +1.98%), Amazon.com Inc (+1.94%) and Netflix Inc (+1.38%) all gained over >1%. The small capitalisation Russell 2000 gained +2.47%.
US equity markets rebounded despite another robust inflation report - Dow up +434-points or +1.29%, snapping a three session losing streak and logging its biggest single session percentage rise in almost two months. Boeing Co rose +0.84% after the The Wall Street Journal reported that that the aviation company had received approval from U.S. air-safety regulators to make fixes to an electrical problem that has grounded more than 100 of its 737 MAX jets, citing the company and a Federal Aviation Administration official, paving the way for airlines to return them to passenger service within days. The broader S&P500 +1.22%, with Industrials (up +1.90%) and Financials (+1.87%) leading ten of the eleven primary sectors higher. Energy (down -1.35%) was the only sector to close in the red. Tesla Inc lost -3.09% and the electric vehicle company has posted declines in 11 of the last 13 trading sessions and is on track to post its worst week since March 2020, with a week-to-date loss of -14.97%. The Nasdaq +0.72% higher, with Apple Inc (up +1.79%) and Microsoft Corp (+1.69%) both rebounding over >1.5%. The small capitalisation Russell 2000 rose +1.68%.
The US economy gets moving again. Michael Knox Morgans Chief Economist explains.
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USCPI #Economy #USEconomy
Inflation fears continued to rattle Wall Street, with the session once again punctuated by heavy selling in the technology sector - Dow dropped -682-points or -1.99%, settling near its session low and logging its biggest single session percentage decline since 29 January. The broader S&P500 lost -2.14%, with Consumer Discretionary (down -3.28%) leading ten of the eleven primary sector lower. Seven primary sectors logged declines of over >2%. Energy (up +0.06%) was the only sector to eke out a rise. Domino’s Pizza Inc hit a record high (US$447.50) before settling +0.73% higher after Bill Ackman, who runs hedge fund Pershing Square Capital, said he had taken a 6% stake in the pizza company. Tesla Inc fell over >1% in the extended session (following a -4.42% fall in regular trading) after Chief Executive Elon Musk took to Twitter to announce that the company will halt sales of cars using bitcoin due to the effects on the environment that cryptocurrency mining can have. The technology-centric Nasdaq tumbled -2.67%. Europe’s second-highest court annulled a European Commission ruling that ordered online retailer Amazon.com Inc (down -2.23%) to pay €250M to Luxembourg, as part of an attempt to crack down on unfair tax breaks extended to big multinationals by European Union (EU) member states. Apple Inc fell -2.49% to US$122.77 and closed below its 200-day moving average (US$122.96) for the first time since 3 April, 2020. Apple now sits ~14.2% below its record closing high of US$143.16 set on 26 January. After the first close below the 200-DMA on 16 March, 2020, the stock fell another -7.3% to bottom out at a 6-month closing low of US$56.09 on 23 March, which was 31% below the record close at the time of US$81.80 on 12 February, 2020. Google parent Alphabet Inc (down -3.02%) and Microsoft Corp (-2.94%) also fell over >2%. The small capitalisation Russell 2000 shed -3.26%. Bankrupt car-rental company Hertz Global Holdings Inc soared 55.01% after the company unveiled a US$6B plan to help it exit chapter 11 that would benefit shareholders.
The 2021-22 Budget follows up on the pivot in strategy delivered at the 2020-21 Budget in October putting aside balance sheet repair in favour of tax relief and fiscal expansion. Morgans Strategist Andrew Tang discusses the market implications of a Budget that has something for everyone.
Visit Andrew Tang's blog to learn more about the market implications of the Federal Budget 2021-22: https://www.morgans.com.au/Blog/2021/May/Federal-Budget-2021-22-market-implications
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Is the 2021 Federal Budget a ‘budget for women & battlers’? Or, as many describe it, ‘the pandemic budget part two’ given the big budget spending announced across various sectors. The 2021 Budget leaves little doubt the Government is serious about locking in a COVID-19 recovery for Australia. Terri Bradford, Morgans Wealth Management expert explains.
Visit Terri Bradford's blog to learn more about the impact of the Federal Budget 2021-22: https://www.morgans.com.au/Blog/2021/May/Federal-Budget-Review-2021-22
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The Australian comeback is now in progress. Better budget deficits than anticipated, support bigger social programs in the years ahead. Still, some very conservative estimates on future iron ore prices allow the government the chance of further happy surprises over coming years. Michael Knox Morgans Chief Economist explains.
To learn more about the impact of the Federal Budget on the Australian economy, please visit Michael Knox's blog: https://www.morgans.com.au/Blog/2021/May/Federal-Budget-2021-22-The-Australian-Comeback
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Inflation concerns hobbled US equity markets overnight although technology stocks stabilised after steep falls in the previous session - Dow down -474-points or -1.36%, logging its worst single session performance since 26 February. Travelers Companies Inc (down -3.08%) and Home Depot Inc (-3.07%) led the index declines. The broader S&P500 lost -0.87%, with Energy (down -2.56%) and Financials (-1.67%) leading ten of the eleven primary sectors lower. Materials (up +0.35%) was the only primary sector to advance. Tesla Inc fell -1.88% (paring an earlier decline of over >5.5%) after the electric vehicle maker’s April sales in China fell sharply from March, more so than its rivals amid negative public relations issues. Tesla sold 25,845 vehicles made in China in April. Although that was up from January sales of 15,484 vehicles and February sales of 18,318 vehicles, April sales were down -27% from March, according to industry data. Overall April electric vehicle sales in China fell 12% from March. L Brands Inc fell -1.8% after announcing plans to separate Victoria’s Secret and Bath & Body Works into two publicly traded companies through a tax-free spinoff that should be completed in August 2021. The Nasdaq dipped -0.09% to 13,389.43 after dropping to a six-week intra-day low of 13,107.67 (down ~2.2%)earlier in the session. A number of big technology names rebounded in in the afternoon session, including Netflix Inc which recovered from an earlier decline of as much as -1.7% to a six-month low to settle +1.72% higher. All of Amazon.com Inc (up +1.05%), Apple Inc (-0.74%) and Google parent Alphabet Inc (-1.40%) cut earlier session losses significantly. The small capitalisation Russell 2000 eased -0.26%.
US equity markets retreated as investors rotated out of growth names, resuming a trend seen earlier this year amid rising fears of inflation and higher interest rates - Dow slipped -35-points or -0.10%, turning negative in the final minutes of trading and relinquishing an earlier gain of over >300-points that saw the index hit a fresh record intra-day high (35,091.56) and pulling back from the previous session’s record closing high (34,777.76). The broader S&P500 lost -1.04% after trading ~1% higher earlier in the session, pulling back from last Friday’s (7 May) record closing high of 4,232.60. Information Technology (down -2.53%), Consumer Discretionary (-1.95%) and Communication Services (-1.91%) led six of the eleven primary sectors lower. Utilities (up +1.01) and Consumer Staples (+0.77%) were the leading primary sector performers. The technology-centric Nasdaq slumped -2.52% and settled near its sessions lows, logging its worst single session performance since 18 March. Facebook Inc (down -4.11%) and Google parent Alphabet Inc (-2.38%) fell sharply after a Citibank analyst cut ratings on the stocks to neutral from buy, citing worries that investors have become overly bullish about the online-advertising market. Microsoft Corp (down -2.09%) and Apple Inc (-2.58%) both fell over >2%. The small capitalisation Russell 2000 lost -2.59%.
Fresh record highs for both the Dow and S&P500 to end the week after a soft April jobs report alleviated some concerns around inflation and potentially higher U.S. interest rates - Dow up +229-points or +0.66% to log another record closing high (34,777.76). The broader S&P500 +0.74% to a record closing high of 4,232.60. Energy (up +1.89%), Real Estate (+1.21%) and Industrials (+1.05%) all rose over >1% to lead all eleven primary sectors higher. Both the S&P500 Energy and Materials sectors hit fresh record highs. The Nasdaq +0.88% higher. The small capitalisation Russell 2000 rose +1.35%.
US equity markets climbed, buoyed by a rebound for technology stocks and signs of a continued improvement for the labour market - Dow gained +318-points or +0.93% to a record close of 34,548.53 after hitting an intraday all-time high at 34,561.29. The broader S&P500 climbed back above >4,200, settling +0.82% higher at 4,201.62. Financials (up +1.43%), Consumer Staples (+1.33%), Communication Services (+1.10%) and Information Technology (+1.01%) all rose over >1% to lead all eleven primary sectors higher. The Nasdaq +0.37%, snapping a four session losing streak (which was longest losing streak since the five-day stretch recorded in on October last year). The small capitalisation Russell 2000 %.
Morgans healthcare analyst Iain Wilkie talks to Dr James Fielding, CEO of new IPO entrant Audeara (ASX:AUA) on what the company does and where its products fit within the audiology space.
Both the RBA and the Fed need to get unemployment much lower to get wages inflation higher.
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US equity markets mixed, with technology stocks under fresh pressure - Dow rose-97-points or +0.29% to 34,230.34 , logging its 22nd record closing high of 2021 but slightly unwinding an earlier +200-point rally. The index also logged a fresh record intra-day high (34,331.2). Goldman Sachs Group Inc (up +%), Caterpillar Inc (+%) and Chevron Corp (+%) were all notable performers. Boeing Co fell -2.3% after Reuters reported that U.S. air safety officials requested fresh analysis and documentation from the company showing numerous 737 MAX subsystems would not be affected by electrical grounding issues flagged previously. The broader S&P500 inched +0.07% higher despite fading in closing trading. Caesars Entertainment Inc was the leading index performer, rising +7.8% after the casino operator said it expected to benefit from the economy reopening. The Nasdaq eased -0.37%, booking its fourth consecutive session decline and longest losing streak since the five-day stretch recorded in on October last year. Amazon.com Inc fell -%, with a Securities and Exchange Commission filing recording that Chief Executive Officer (CEO) Jeff Bezos sold ~2B of worth of stock this week. Netflix, and Facebook all fell over >1%. The small capitalisation Russell 2000 eased -0.31%. Moderna Inc rose ~1% in the extended session (following a -6.19% fall in regular trading) after the company said its COVID booster shot generates a promising immune response against variants found in South Africa and Brazil. The early data is based on results from an ongoing clinical trial.
US equity markets weaker, with the technology sector under fresh selling pressure and comments from US Treasury Secretary Janet Yellen hinting at higher interest rates - Dow edged +20-points or +0.06% higher, clawing its way back into positive territory in the closing minutes of trading after having dropped over >300-points earlier in the session. The broader S&P500 lost -0.67% Ford Motor Co -1.89% that total U.S. April vehicle sales rose +64.8% from a year ago to 197,813 vehicles, boosted by a near fourfold rise in electric vehicle (EV) sales (up +262% to a monthly record of 11,172 vehicles, representing 5.6% of total vehicles sold). April retail sales were 57.1% above 2020 results, but were also 23.7% above pre-pandemic April 2019 results. The Nasdaq dropped -1.88% to log its worst session since 18 March, with Apple Inc down -3.54%, Amazon.com Inc -2.20%, Google parent Alphabet Inc -1.71%, Netflix Inc -1.16% and Microsoft Corp -1.62% all logging falls. The small capitalisation Russell 2000 fell -1.28%. Volume on U.S. exchanges was 12.21B shares, the highest in over a month. U.S. and European stock markets saw a sudden 0.5% drop in hefty volumes around 1130 GMT, leaving traders scratching their heads and one calling it a "micro flash-crash".
Alex Lu, Analyst at Morgans, discusses Reliance Worldwide Corporation (ASX:RWC), an addition to our Morgans Best Ideas (May 2021).
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Derek Jellinek, Senior Analyst at Morgans, discusses Sonic Healthcare (ASX:SHL), an addition to our Morgans Best Ideas (May 2021).
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Morgans Best Ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures. This month we add ANZ, Sonic Healthcare, Reliance Worldwide, Tyro Payments and Whitehaven Coal. Key removals include Westpac and Zip Money. Equity Strategist Andrew Tang explains why.
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Investment #Opportunities #ASX #ausbiz
The Dow and S&P500 booked modest gains to open May, with companies leveraged to the re-opening of the economy trading strongly - Dow gained +238-points or +0.70% to 34,113.23, logging its third highest settlement in history. The broader S&P500 added +0.27% to 4,192.66 and its second highest close ever. Energy (up +2.91%) and Materials (+1.53%) led six of the eleven primary sectors higher. Consumer Discretionary (down -0.66%) was the worst performing primary sector overnight. Baker Hughes Co (up +%) was the leading S&P500 constituent after General Electric Co (down -.70%) disclosed last Friday (30 April) that it sold off more of its holding in the oilfield services company, likely raising ~US$1B. Royal Caribbean Cruises Ltd (up +1.10%) and American Airlines Group (+1.06%) were also notable performers, both rising more than >1% each. Tesla Inc fell -3.46% after a German trade magazine (Automobilwoche) reported that the company’s Gigafactory in Berlin is likely to be delayed by six months. Tesla had hoped to open the facility on 1 July, but permitting issues and plans to also build a battery-cell factory at the site have reportedly contributed to the delay. The massive factory will be Tesla’s fourth worldwide, and first in Europe. Domino’s Pizza Inc (up +2.66%) said in a filing overnight that it has entered into a US$1B accelerated share repurchase agreement with Barclays for ~2M shares. The agreement is expected to be completed by the third quarter of 2021.The technology-centric Nasdaq lost -0.48%. The small capitalisation Russell 2000 rose +0.49%. Berkshire Hathaway Inc’s A shares rose +1.82% after the industrial conglomerate reported a surge in first quarter earnings over the weekend and after Warren Buffet reportedly effectively confirmed vice-chair Greg Abel as his heir apparent.
Today’s Morgans Conversations Podcast is with Simon Kidston, Executive Director of Genex Power. Simon talks about the history of Genex and how they are positioned with a suite of renewable assets. Simon talks about the broader sources of energy, the long life of some of the assets they manage, the technological cost curve as well as how their portfolio is contributing to local economies.
Corporate disclosure: Morgans Corporate Limited was Joint Lead Manager and Underwriter to the Placement and Entitlement Offer of shares in Genex Power Limited in April 2021 and received fees in this regard.
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US equity markets retreated on the final trading day April - Dow fell -186-points or -0.54%. The broader S&P500 lost -0.72% to 4,181.17, pulling back from the previous session’s record closing high (4,211.47). General Electric Co (down -.70%) disclosed on Friday (30 April) that it sold off more of its holding in oilfield services firm Baker Hughes Co (-2.2%), likely raising nearly US$1B. The Nasdaq -0.85%. Amazon.com Inc slipped -0.11% Apple Inc fell -% after European regulators accused the company of abusing its dominant position in the music-streaming market by imposing restrictive rules on the App Store. The statement followed a complaint made by music streaming service Spotify Inc in 2019 about Apple’s license agreements. The small capitalisation Russell 2000 fell -1.26%.
How did a pharmacist end up as Chairman of AU Cloud as well as the Director of the Australian Rules Football Club, the Brisbane Lions? Cathie Reid AM shared her impressive story of delivering value through technology at our recent Brisbane Breakfast.
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Tech #SOV #Cybersecurity
Another round of upbeat quarterly earnings from technology heavyweights and a surge in first quarter gross domestic product (GDP) growth lifted the S&P500 to fresh record closing high - Dow gained +240-points or +0.71% . The broader S&P500 rose +0.68% to a record settlement of 4,211.47, also hitting a fresh record intra-day peak (4,218.78). Communication Services (up +2.75%) and Financials (+1.82%) led nine of the eleven primary sectors higher. Health Care (down -0.46%) and Information Technology (-0.03%) were the only sectors not to advance. Ford Motor Co tumbled -9.41% despite announcing after the close of the previous session that it had swung to a profit in the first quarter and maintained its full year pre-tax profit guidance, with the automaker warning that it expected to lose half of its second-quarter production due to the global semiconductor shortage. Elsewhere, the Centers for Disease Control and Prevention said cruise ships might be able to resume sailings as early as mid-July. Carnival Corp fell -2.12%. The Nasdaq edged +0.22% higher, hitting a fresh record intra-day high of 14,211.57. Facebook Inc jumped +7.30% after posting a strong first quarter result after the close of the previous session Apple Inc dipped -0.07% despite posting a better-than-expected March quarter result all of its product categories after the close of the previous session that saw the company boost it buyback programme by US$90B and lift its dividend by +7%. The small capitalisation Russell 2000 lost -0.38%.
PPE demand remains strong and headwinds appear manageable for ANN. Morgans' Senior Analyst Derek Jellinek discusses with the network.
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Health #PPE #ANN
Growth surprises on the high side, inflation surprises on the low side. Michael Knox details his perspective with the Morgans network.
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Growth #Inflation #Economy
US equity markets retreated as investors parsed the latest monetary policy pronouncements from the Federal Reserve and a host of notable corporate earnings releases - Dow fell -165-points or -0.48% . Visa Inc rose +1.5% after the financial services giant’s better-than-expected fiscal second quarter numbers after the close of the previous session. The broader S&P500 dipped -0.08% after recording a fresh record intra-day high (4,181.78), with the Information Technology sector (down -0.96%) offsetting strong gains for the Energy sector (up +3.35%). The Nasdaq eased -0.28%. Microsoft Corp (down -2.83%) and Advanced Micro Devices (-1.40%) both retreated despite logging solid quarterly results after the close of the previous session. However, Google parent Alphabet Inc rose +3.16% after the company’s better-than-expected first quarter numbers and US$50B share buyback announcement after the closing bell of Tuesday’s (28 April) session. The small capitalisation Russell 2000 inched +0.13% higher. In merger and acquisition (M&A) news, Verizon Communications Inc is reportedly exploring a sale of assets including Yahoo and AOL, as the telecommunications giant looks to exit an expensive and unsuccessful bet on digital media. The sales process, which includes private-equity firm Apollo Global Management Inc could lead to a deal worth US$4B to US$5B, according to people familiar with the matter.
Morgans adviser Chris Titley chats to Tim Poskitt from Envestnet Yodlee. Tim talks about Yodlee’s involvement within the fintech ecosystem here and in New Zealand. Tim also talks about the Buy Now Pay Later Sector, the changing views and industries within fintech as well as how Yodlee is innovating as new industries and entrepreneurs emerge.
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Brodie Haupt from WLTH is the latest guest on the Bank to the Future podcast. Brodie tells the story of why he created WLTH , the state of fintech in Australia, their growth initiatives including some philanthropic partnerships as well as why he is most excited about the future of WLTH.
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We again expect the upcoming round of major bank reporting to surprise on the upside and we expect a further increase in investor confidence in the outlook for asset quality, dividends and capital management. ANZ is now our preferred major bank. Senior Analyst Azib Khan discusses with the Morgans network.
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Banks #Dividens #Investment #ANZ
US equity markets settled little changed as investors braced for quarterly earnings releases from the technology heavyweights - Dow inched +4-points higher . The broader S&P500 dipped -0.02%. Utilities (down -0.75%) led eight of the eleven primary sectors lower. Energy (up +1.26%), Financials (+0.91%) and Industrials (+0.87%) all advanced. FedEx Corp rose +4.3%, buoyed by the strong first quarter result from listed peer United Parcel Service (UPS) Inc. The Nasdaq eased -0.34%. The small capitalisation Russell 2000 edged +0.14% higher.
Morgans Strategist, Andrew Tang provides an update on key market themes and opportunities for investors as resilient economic growth continues to support corporate earnings.
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Morgans Adviser Chris Titley chats over the phone with Danny Lessem, Co-founder and CEO of ASX listed Elmo. Danny talks through the history of the business (19 years old), the evolution of the business and the modules they deploy as well as their growth over the last five years.
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In today’s Morgans Conversations, Adviser Chris Titley chats via phone with Alex Waislitz from Thorney Technologies (ASX Code: TEK). Alex gives an update from his last interview in December and talks about the first four months of the 2021 calendar year including snippets about crypto currency, SPAC’s, as well as the IPO market. Alex also talks about a number of their stocks within the portfolio as well as his views on the market in general.
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Both the S&P500 and Nasdaq advanced to log fresh record closing highs US equity markets - Dow fell -62-points or -0.18% . Procter & Gamble Co (down -2.00%), Walmart Inc (-1.42%) and Coca Cola Co (-1.49%) were notable drags on the index. The broader S&P500 edged +0.18% higher to a record settlement of 4,187.62. Energy (up +0.64%) and Consumer Discretionary (0.62%) both gained over +0.6% to lead seven of the eleven primary sectors higher. Consumer Staples (down -1.16% ) was the worst performing sector, with traders noting concerns around surging commodity prices, with corn futures hitting their highest level in more than seven years and copper prices at the highest level in almost a decade. The Nasdaq gained +0.87% to log its first record closing high since 12 February of 14,138.78 and confirming the end of an 11% correction for the technology-centric index that began after its previous record high close and record its most recent low on 8 March. Apple Inc (up +0.30%) announced that it has “accelerated” its investments in the U.S. – intending to make new investments of US$430B over 5-years, marking a +20% increase on a US$350B commitment made in 2018 - and plans to build a new campus in North Carolina. The company’s “$430 billion in contributions to the US economy include direct spend with American suppliers, data centre investments, capital expenditures in the U.S., and other domestic spend.” The small capitalisation Russell 2000 gained +1.15%.
US equity markets rebounded after a turbulent session last Thursday (22 April) following reports that President Joe Biden is slated to propose much higher capital gains taxes for wealthy Americans – Dow gained +228-points or +0.67% . Investment banks Goldman Sachs Group Inc (up +2.57%) and JPMorgan Chase & Co (+1.91%) were both notable performers. The broader S&P500 1.09% to 4,180.17, trading above its 16 April record closing high of 4,185.47 during Friday’s (23 April) afternoon session and setting a fresh intra-day peak of 4,194.17. Financials (up +1.85%) and Materials (+1.68%) both rose over >1.5% to lead nine of the eleven primary sectors higher. Utilities (down -0.17%) and Consumer Staples (-0.16%) were the only sectors to close in the red. The technology-centric Nasdaq gained +1.44%. The small capitalisation Russell 2000 index rose +1.76%. President Biden will address a joint session of Congress on Wednesday night AEST (28 April) and is expected to detail his “American Families Plan” and the tax increases to pay for it.
Anthony provided an update following the regulator’s decision to allow DBI to negotiate directly with its customers.
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Infrastructure #DBI #Coal
US equity markets retreated following a Bloomberg report that the Biden administration is planning a capital gains tax hike to as high as 43.4% for wealthy Americans – Dow fell -321-points or -0.94%, logging its largest single session point and percentage decline since 4 March despite paring an earlier decline of as much as -420-points. The broader S&P500 fell -38-points or 0.92%, booking its largest single session point and percentage decline since 18 March. Materials (down -1.75%) and Energy (-1.41%) lead all eleven primary sectors lower. The technology-centric Nasdaq shed -0.94%. The small capitalisation Russell 2000 index -0.31%. In merger and acquisition news (M&A), Skyworks Solutions Inc rose over >4.5% in extended trading after the semiconductor manufacturer announced it will acquire the infrastructure and automotive business of Silicon Laboratories Inc (up ~14% in after hours trading) for US$2.75B.
Tom Ferrier from Greener is today’s guest on the Bank to the Future. Greener is aiming to bring greener businesses and consumers together to repair the planet.
Tom deep dives into the history of Greener, coming from a corporate background as well as his plans and ambitions for the team moving forward.
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US equity markets arrested a two session slide as the ‘re-opening trade’ regained its footing – Dow rose +316-points or +0.93% 34,137.31, logging its second highest close ever as 26 of the 30 index components advanced. The S&P500 gained +0.93% amid a broad-based rally that saw ~82% of the index constituents advance. Materials (up +1.87%), Energy (+1.48%) and Financials (+1.39%) led nine of the eleven primary sectors higher. Utilities (down -0.90%) and Communication Services (-.28%) were the only two sectors to close in the red. Norwegian Cruise Line Holdings jumped +10.32%, buoyed by an upgrade from Goldman Sachs (with the investment bank citing the company’s capacity growth and low leverage compared to its peers). Fellow cruise operator Carnival Corp gained +6.3%. United Airlines Holdings Inc rebounded +3% after dropping -8.53% in the previous session after the carrier recorded its fifth consecutive quarterly loss. The technology-centric Nasdaq +1.19%, recording its largest single session percentage climb since 15 April. Netflix Inc dropped -7.40% after the streaming giant reported subscriber additions that fell far short of Wall Street estimates after the close of the previous session. The Russell 2000 index rallied +2.35%, marking the small capitalisation indice’s best single session performance since 1 March.
US equity markets fell for a second consecutive session, shrugging off some solid corporate earnings releases and with re-opening plays such as airlines and cruise line operators led losses – Dow down -256-points or -0.75% , with Boeing Co (down -%) and Nike Inc (-%) both dropping more than >4%. International Business Machines (IBM) Corp rose over +3.79% after posting better-than-expected first quarter earnings per share (EPS) and revenue after the closing bell of the previous session. The broader S&P 500 lost -0.68%, with Energy (down -2.66%) leading seven of the eleven primary sectors lower. The more defensive Utilities (up+1.32%) and Real Estate (+1.12%) both advanced over >1%. United Airlines Holdings Inc fell -8.53% after the carrier recorded its fifth consecutive quarterly loss after the close of the previous session. American Airlines Group Inc fell -5.48%, while cruise operators Carnival Corp (down -4.35%) and Norwegian Cruise Line Holdings (-4.36%) both fell over >4%. The Nasdaq -0.92% Apple Inc (down -1.28%) launched a new iMac and iPad with its M1 chips at a spring event overnight. The small capitalisation Russell 2000 index fell -1.96%. In merger and acquisition (M&A) news, Kansas City Southern soared +15.25% after The Wall Street Journal reported that Canadian National Railway Co (-6.76%) was planning to make a buyout bid for the railroad operator of ~US$30B, which would top Canadian Pacific Railway Ltd.’s previously agreed on buyout bid.
US equity markets retreated from record highs amid fresh falls for the technology sector – Dow eased -123-points or -0.36%, snapping a three session inning streak that carried to index to multiple record closing highs. The broader S&P500 -0.53%, pulling back from a record closing high (4,185.47). Consumer Discretionary (down -1.14%) led ten of the eleven primary sectors lower. Real Estate (up +0.29%) was the only primary sector to advance. Tesla Inc fell -3.40% ollowing a fatal crash in Spring, Texas, over the weekend. Chief Executive Officer (CEO) Elon Musk tweeted a denial that his company’s automated driving systems were involved. The Nasdaq -0.9%, retreating for the first time in three sessions. Nvidia Corp fell -3.46% after the UK government said it would look into the national security implications of Nvidia's purchase of British chip designer ARM Holdings, raising a question mark over the US$40B deal. The Competition and Markets Authority (CMA) will assess the competition, jurisdiction and national security impact of the deal, with a report due by 30 July, the government said. The small capitalisation Russell 2000 index fell -1.36%.
US equity markets booked another round of record closing highs to end the week – Dow up +165-points or +0.48% to 34,200.67 and a record closing high after crossing the 34,000 threshold for the first time in the previous session. Boeing Co fell -1.17% after the planemaker said that the potential electrical problem that prompted airlines to remove dozens of 737 MAX jets from service last week affects more areas of the aircraft's flight deck than previously known. The broader S&P500 rose +0.36% to 4,185.47. Real Estate (up +1.95%), Health Care (+1.74%), Materials (+1.18%) and Utilities (+1.11%) all rose over >1% to lead ten of the eleven of the primary sectors higher. Energy (down -0.90%) Information Technology (-0.03%) were the only primary sectors to close in the red. UBS Wealth Management increased their year end S&P 500 target to 4,400. The Nasdaq added +0.10% to 14,052.34 the second highest close ever for the technology centric index. The small capitalisation Russell 2000 index rose +0.25%. For the week, the Dow rose +1.18% and S&P500 +1.37%, with both indices logging their fourth straight weekly advance. The Nasdaq gained +1.09% to log its third straight weekly advance.
The Dow and S&P 500 clinched fresh record closing highs after the latest round of economic reports continued to affirm a healthy recovery from the pandemic – Dow gained +305-points or +0.90% to 34,035.99, logging its first close above >34,000. The Dow took 20 sessions to traverse and eclipse 34,000, which marks its fourth 1,000-point milestone so far this year, already the most since 2017, which saw five such milestones, according to Dow Jones Market Data. Home Depot Inc contributed 264 points to the price-weighted Dow’s most recent +1000 point climb, with UnitedHealth Group Inc adding ~260 points and Microsoft Corp ~140 points. The broader S&P 500 +1.11% to 4,170.42. The S&P Information Technology sector (up 1.79%) hit an all-time high. Energy (down 0.88%) and Financials (-0.11%) were the only primary sectors to settle lower Advanced Micro Devices was the best performing index constituent with a 5.7% gain. The Nasdaq +1.31% to settle ~0.4% below its 12 February record closing high (14,095.47). Facebook Inc (+1.65%), Amazon.com Inc (+1.38%), Apple Inc (+1.87%), Netflix Inc (+1.70%) and Alphabet Inc (+1.85%) all climbed more than >1%. The small capitalisation Russell 2000 index rose +0.42%.
We expect the Australian dollar to be significantly stronger as we move into the second half of calendar 2021 .
Economy #AUD
A mixed session on Wall Street despite some stellar first quarter results from a brace of banks to kick off the earnings season – Dow added +54-points or +0.16% to 33,730.89, settling ~0.5% below is 23 March record closing high (32,423.15). The Dow pared an earlier climb of over >200-points that lifted the index to a fresh record intra-session high (). The broader S&P500 eased -0.41% a day after logging its 21st record closing high (4,141.59) of 2021 but touched a fresh record intra-day high (4,151.69). Consumer Discretionary (down -1.17) and Information Technology (-1.1%) both fell over >1% to be the worst performing primary sectors. Energy gained +2.91% to comfortably lead the primary sector gains. Costco Wholesale Corp edged ~0.1% higher in after hours trading after lifting its dividend more than >12% to US$0.79c per share. The Nasdaq fell -0.99%. Netflix Inc (down -1.97%) and Facebook Inc (-2.24%) dropped more than >2% each, which Amazon.com Inc (-1.97%), Microsoft Corp (-1.12%) and Apple Inc (-1.79%) all dipped at least 1%. Coinbase Global Inc, the biggest U.S. cryptocurrency exchange and one of the first crypto exchanges to go public, settled at a +31.3% premium to its US$250 issue price and was briefly valued above $100B after touching a session peak of US$429. Dell Technologies Inc rallied over >8% in extended trading after announcing a plan to spin off its 80.8% stake in VMware Inc (up +2.77% in extended trading) to shareholders. Dell holders would receive 0.44 VMware shares for each Dell share held, subject to adjustment prior to close. The small capitalisation Russell 2000 index rose +0.8%.
• U.S. stocks traded mostly higher on Tuesday after a March inflation report turned out not as bad as some traders feared, but the impact of a halt to the rollout of Johnson & Johnson vaccine kept optimism in check. The Dow Jones fell -68 points or -0.2%, the S&P 500 added +0.33% and locked in a new closing high. The Nasdaq, the relative outperformer, gained +1.05% as Apple and PayPal each added more than +2%. Semiconductor maker Nvidia climbed +3%, Tesla rose +8.6%.
U.S. stocks hovered near their record levels on Monday as dull trading resumed before the release of widely-watched inflation data and the start of first-quarter corporate earnings. The Dow Jones fell 55 points or -0.16%, the S&P 500 was down just -0.02%, while the Nasdaq dropped -0.36%. Wall Street has been relatively quiet with the S&P 500 moving within 1% for five sessions in a row. Market volatility has declined to pre-pandemic levels amid rising reopening optimism. Nvidia jumped +5.6% after the chip giant said its first quarter revenue for fiscal 2022 is tracking above its previously provided outlook and that it expects demand to continue to exceed supply for much of this year. The weakness in reopening plays weighed on the overall market with shares of Carnival and Norwegian Cruise Line off more than 4% each. United Airlines fell -3.9% after the carrier said its first-quarter revenue is expected to fall 66% compared with the same period in 2019. Alibaba Group surged +9.1%, logging the biggest one-day gain in four years as investors expressed relief following the US$2.8B fine assessed by China’s antitrust regulator. The China-based ecommerce giant's Chief Executive Daniel Yong Zhang said in a conference call after the fine, "we don't expect material negative impact" following changes to comply with the regulator's orders. The company said it will not appeal the decision. The first-quarter earnings reporting season begins this week, with expectations set for broadly positive news and an uptrend for U.S. equities thanks to a recovering economy. Many of the nation’s largest banks, including Goldman Sachs and JPMorgan Chase will this week report results for the three months ended March 31.
A late session rally lifted both the Dow and S&P500 to fresh record closing highs last Friday (9 April) albeit it was a relatively quiet session as traders eyed the earnings season kicking off later this week – Dow gained +297-points or +0.89% to 33,800.60. The broader S&P500 +0.77% to log its third straight record closing high (4,128.80) and its 20th of 2021. The Nasdaq +0.51% . Cruise operator Carnival Corp rose+2.6%, buoyed by two broker upgrades. The small capitalisation Russell 2000 index eked out a +0.04% rise.
Rob Wong Chief Executive Officer of Control Bionics, speaks with Scott Power from the Morgans Healthcare team, providing an update on the significant progress the company is making.
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Innovation #Healthcare
Technology stocks lifted US equity markets as US Treasury yields continued to moderate – Dow up +57-points or +0.17% . The broader S&P500 rose +0.42% to 4,097.17, booking its 19th record closing high of 2020 after also logging a fresh record intra-day high (4,098.19). Information Technology (up +1.42%) led six of the eleven primary sectors higher. Energy (down -1.36%) was the worst performing primary sector. Overnight also marked the third straight session that the S&P500 has logged an intra-day trading range of less than<0.50% - the longest such streak since January 2020. The Nasdaq rallied +1.03% to 13,829.31 and close within 2% of its 12 February record closing high (14,095.47), with Apple Inc (up +1.92%), Netflix Inc (+1.39%) and Microsoft Corp (+1.34%) all climbing more than >1%. The small capitalisation Russell 2000 index rose +0.88%, clawing back some of the previous session’s -1.6% decline. The Russell 1000 growth index, which consists heavily of tech-related stocks, gained +1.05%. Its value counterpart, comprising mostly financials and energy names, dipped -0.05%.
Chief Economist Michael Knox speaks to the Morgans Network and explains why Biden taxes are not for infrastructure, but for welfare.
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Economy #Industry #Biden #USEconomy
US equity markets settled little changed after a listless session as the Federal Reserve released its March policy meeting minutes, which pointed to continued support for financial markets until the economy has more fully healed from the pandemic – Dow inched +16-points or +0.05% higher . The broader S&P500 edged +0.15% higher to eke out its 18th record closing high (4,079.95) of 2020. The Nasdaq dipped -0.07% despite Amazon.com Inc (up +1.72%), Apple Inc (+1.34%) and Alphabet Inc (+1.12%) all climbing more than >1%, while Facebook Inc jumped +2.3%. The small capitalisation Russell 2000 index fell -1.6%.
Morgans Equity Strategist Andrew Tang runs through our Best Ideas for April 2021. This month we add Dalrymple Bay Infrastructure (ASX:DBI) and Frontier Digital Infrastructure (ASX:FDV) to our list.
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FDV #DBI #Investment #Opportunities
Nathan Lead, Senior Analyst at Morgans, discusses Dalrymple Bay Infrastructure (ASX:FDV), an addition to our Morgans Best Ideas (April 2021).
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DBI #Investment #Stocks
Anthony Porto, Senior Analyst at Morgans, discusses Frontier Digital Ventures(ASX:FDV), an addition to our Morgans Best Ideas (April 2021).
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FDV #Investment #Stocks
US equity markets settled with modest losses a day after both the Dow and S&P500 recorded fresh record closing highs – Dow eased -97-points or -0.29% a day after logging its 18th record closing high (33,527.19) of 2021. The broader S&P500 slipped -0.10% after touching a fresh record intra-day high (4,081.37), snapping a three session winning streak that lifted the index to a record closing high (4,077.91) a day earlier. Information Technology (down -0.38%) and Health Care (-0.36%) led five of the eleven primary sectors lower, while Utilities (up +0.53%) was the leading primary sector performer. Shares of airlines (Delta Air Lines up +2.8%) and cruise lines (Carnival Corp +1.74% and Norwegian Cruise Line Holdings +4.61%) continued to trade strongly. The Nasdaq dipped -0.05% after logging three straight session gains of over >1.5%. The small capitalisation Russell 2000 index lost -0.25%.
US equity markets resumed trading after the Easter long weekend, with the Dow and S&P500 sweeping to fresh record closing highs following a brace of positive economic data last Friday (2 April) – Dow rallied +374-points or +1.13% 33,527.19, surpassing its previous record close of 33,171.37 hit on 9 March. The broader S&P500 +1.44% to 4,077.91. Tesla Inc gained +4.43% following last Friday’s (2 April) release that recorded first quarter deliveries rose to a better-than-expected 184,800 vehicles, up from 181K deliveries in the fourth quarter of 2020 and versus consensus analyst forecasts for 162K. Norwegian Cruise Line Holdings jumped +7.18% after the company asked federal health authorities to let it sail from U.S. ports starting 4 July. The Nasdaq gained +1.67% to 13,705.59, logging its third straight gain of over >1.5%. Amazon.com Inc rallied +% toward a six week high. The technology-centric index needs to gain a further ~1.2% to 13,870.076 to officially exit correction territory. The small capitalisation Russell 2000 index added +0.49%.
Leigh Travers, of ASX listed Digital X (ASX:DCC) speaks with Chris Titley about the history of the business, their involvement with Bitcoin as well a “mining 101” lesson! Leigh talks about the future of digital assets, NFT’s as well how Digital X is positioning itself in the future.
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US equity markets concluded the month an quarter on a mostly positive note, with gains for the technology sector lifting the S&P500 to a record high – Dow down 85-points or -0.26% . Goldman Sachs Group Inc (down -1.51%) announced plans to offer access to Bitcoin and other cryptocurrencies to wealthy investors. The broader S&P500 +0.36% to 3,972.89 and a record closing high, paring gains late in the session after also touching a fresh record intra-day high (3,994.41). Information Technology (up +1.50%) led five of the elven primary sectors higher. Energy (down -0.93%) and Financials (-0.90%) were the worst performing primary sectors. The technology-centric Nasdaq rose +1.54%. Apple Inc (+1.88%), Microsoft Corp (+1.69%) and Facebook Inc (+2.27%) all gained at least 1.6%. UBS raised their recommendation on Apple Inc to a ‘Buy’, citing stable long-term demand for iPhones with better authorised service providers. The small capitalisation Russell 2000 index rose +1.13%. US equity and bond markets will be CLOSED on Friday night AEST (3 April).
Very high US growth in 2021 could help Australia to outperform. Morgans Chief Economist Michael Knox discusses and answers questions from the Morgans network, regarding Australia's growth in 2021.
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Economy #USeconomy #Auseconomy
US equity markets settled with modest declines in what was a largely uneventful session – Dow -104-points or -0.31% a day after logging its 17th record closing high (33,171.37) of 2021. Apple Inc (down -1.23%) and Microsoft Corp (-1.44%) were the worst performing Dow constituents. Goldman Sachs Group Inc (up +2%) and Morgan Stanley (+1.6%) advanced, with both banks moving large blocks of assets before other large banks that lent to Archegos Capital Management, as the scale of the hedge fund’s losses became apparent, according to The Wall Street Journal, helping to limit their losses amid the stock liquidation. The broader S&P500 -0.32%, with Consumer Staples (down -1.14%) and Information Technology (-0.95%) leading eight of the eleven primary sectors lower. Consumer Discretionary (up +0.75%) and Financials (+0.71%) were the leading primary sector performers. Classic re-opening plays rallied after the release of strong consumer confidence data. American Airlines Group Inc jumped +528%, United Airlines Holdings +3.58%. Carnival Corp and Norwegian Cruise Line Holdings Ltd climbed +3.98% and +3.78% respectively. Wells Fargo & Co rose +2.5% after the lender said it had a prime brokerage relationship with Archegos Capital and that it no longer had any exposure and did not experience any losses. PayPal Holdings Inc added +0.4% after the payments company said it would start letting U.S. customers purchase items with cryptocurrencies. The Nasdaq dipped -0.06%, paring an earlier decline of over >1%. The small capitalisation Russell 2000 index rebounded +1.72%.
In this episode of Bank to the Future- Chris Titley chats to Marc Schneider from Zebit (ASX Code:ZBT) . Marc deep dives in to the background of why he started Zebit. Marc talks about the 120m people that are under banked in the US and the platform Zebit has created to assist them with various retail options.
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Fintech #Neobanks #Innovation
Airtasker listed on the ASX on 23 March 2021. Tim Fung, Founder, and CEO of Airtasker, and Nathan Chadwick, Airtasker’s CFO, presented to the Morgans network to provide an overview of the business and strategy for growth, which includes product enhancement and international expansion. Outside Australia, Airtasker has opened in the UK, Ireland, Singapore, New Zealand, and the US.
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Tech #Innovation #Business #ASX
In this interview, Chris Titley chats with Mark Watkin, Global CEO of ASX listed Bike Exchange (ASX Code: BEX). Mark talks about the history of Bike Exchange a marketplace selling anything to do with Bikes, the category size and industry thematics as well as their geographical expansion. Mark also talks about how they are deploying capital for their next chapter of growth.
Disclaimer: Morgans was lead manager to the IPO of Bike Exchange and received fees in this regard.
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US equity markets mixed amid concerns about the potential spill-over effects after a large investment fund was forced to liquidate massive holdings in stocks – Dow rose +98-points or +0.30%, erasing an earlier -160-point loss to log its 17th record closing high (33,171.37) of 2021. Goldman Sachs Group Inc lost -0.51%. CNBC reported that Goldman Sachs, Morgan Stanley, and Deutsche Bank facilitated the liquidation of Archegos Capital Management’s holdings in many of the Chinese internet names through unregistered trades The broader S&P500 dipped -0.09%, paring an earlier decline of as much as -0.8%. Energy (down -1.26%) and Financials (-0.93%) were the worst performing primary sectors, while Utilities (up 1.07%), Consumer Staples (+1.03%) and Communication Services (+1.02%) were the leading primary sector performers. ViacomCBS CI B (down 6.68%), Discovery Inc (-1.60%) and Baidu Inc (-1.87%) swung between losses and gains after intense selling pressure last week, with the companies among those roiled late last week by the forced liquidation of more than >$20B of positions linked to Archegos Capital Management. Southwest Airlines Co fell -0.54% after the airline placed 100 firm orders for the Boeing 737 Max 7 with the first 30 of those aircraft to be delivered in 2022. As part of an agreement with Boeing Co (up +2.31%), Southwest also converted 70 Max 8 firm orders to Max 7 firm orders and added 155 MAX options for MAX 7 or MAX 8 aircraft for years 2022 through 2029. The Nasdaq eased -0.60%. Applied Materials Inc fell -2.28% after the company said its agreement to purchase Kokusai Electric Corp was terminated because the company didn’t obtain approval for the deal by Chinese regulators in time. The small capitalisation Russell 2000 index fell -2.83%.
US equity markets rallied to cap a see-saw week for the stock market, with all three benchmark indices logging gains of over >1% – Dow rallied +453-points or +1.39% to 33,072.88, jumping more than >150-points in the final 8 minutes of the session. Boeing Co rose +% as the planemaker plans to resume delivery of its 787 Dreamliners this week The broader S&P500 +1.66% to a record closing high of 3,974.54 and extending its 2021 gains to 5.8%. Energy (up +2.62%), Information Technology (+2.54%), Materials (+2.49%) and Real Estate (+2.47%) all gained over >2% to lead ten of the eleven primary sectors higher. Communication Services (down -0.34%) was the only primary sector to close in the red. L Brands Inc rose +3.65% after the retailer raised its profit outlook for the first quarter, citing a boost from government stimulus and from loosened COVID-related restrictions. The Nasdaq rose +1.24%, erasing an earlier decline of -0.8. The small capitalisation Russell 2000 index gained +1.76%. The Russell 1000 value index, which includes energy, banks and industrial stocks, has gained more than 10% this year, outperforming its counterpart the Russell 1000 growth index, which is just above break-even for the year.
US equity markets advanced, staging an impressive intra-session turnaround – Dow +199-points or +0.62%, recovering from an earlier decline of almost 350-points. Boeing Co gained +3.3%. The broader S&P500 +0.52%, settling well off session lows that saw the index down as much as -0.92%. Financials (up +1.57%), Industrials (+1.56%) and Materials 1.41%) all gained over >1% to lead the primary sector gains. Communication Services and Information Technology (-0.07%) were the only sectors to close in the red. The Nasdaq +0.12% . The small capitalisation Russell 2000 index +2.29%. Value stocks (up 1.2%) again outperformed growth stocks (down -0.10%) A number of traders have partly attributed the choppy trade this week to quarter-end rebalancing and a rotation in and out of sectors that are expected to perform better when the economy stages a more pronounced recovery from the COVID-19 pandemic.
Morgans Analyst Max Vickerson chats with Origin Energy’s (ASX:ORG) Chief Executive Officer and Managing Director, Frank Calabria. The pair detail the company's positioning considering the changing attitude towards the global energy market.
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Morgans analyst Iain Wilkie speaks with Chief Executive Officer and Managing Director of ResApp (ASX:RAP), Tony Keating. Tony provides an update on a number of recent news events.
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US equity markets retreated, fading in the closing hour of trading amid a fresh sell off for technology stocks – Dow dipped -3-points or -0.01%, paring an earlier climb of ~370-points. The broader S&P500 lost -0.55%, fading in the final hour of trading for a sixth straight session and unwinding an earlier gain of ~0.8%. Communication Services (down -1.66%), Consumer Discretionary (-1.52%) and Information Technology (-1.21%) all fell over >1% to be the worst performing primary sectors. The Energy sector (up +2.52%) comfortably led the upside, with Chevron Corp up +2.68% and Exxon Mobil Corp +2.03%. General Motors Co (down -0.62%) extended production cuts in North America due to a worldwide semiconductor chip shortage. Shares of cruise operators fell to session lows after Centers for Disease Control and Prevention said the sailing order limiting cruises will stay in place until 1 November. Norwegian Cruise Line Holdings Ltd dropped -4.9% following the news, while Royal Caribbean Cruises Ltd and Carnival Corp fell -2.77% and -1.89%, respectively. The Nasdaq dropped -2.01%, with Apple Inc (down -2.0%), Facebook Inc (-2.92%) and Netflix Inc (-2.67%) all slid more than >2%. The small capitalisation Russell 2000 index fell for a third straight session, down -2.40%.
US equity markets retreated, extending losses in the closing hour of trading although traders struggled to pinpoint a particular reason for the weakness – Dow down -308-points or -0.94%. Intel Corp surged over >5.5% in after hours trading after the chip maker announced aggressive plans to expand its manufacturing capacity to take back its leadership position in the industry . Newly installed Chief Executive Pat Gelsinger, who had spent decades at Intel focused on the engineering side of the business before moving onto Chief Operating Officer at EMC Corp and CEO of VMware Inc, laid out an ambitious roadmap to bounce back from recent manufacturing problems that surfaced last year. The broader S&P500 fell -0.76%, with Materials (down -2.10%) leading eight of the eleven primary sectors lower. Utilities (up +1.52%) was the leading primary sector performer. The technology-centric Nasdaq shed -1.12%. Microsoft Corp rose +0.67% following a report by Bloomberg News that the company is in discussions to purchase videogame-focused chat platform Discord for more than >US$10B. The small capitalisation Russell 2000 index tumbled -3.58% to record its worst single session performance since 25 February. Overnight marked the anniversary of the pandemic lows hit on 23 March, 2020, when all of the major U.S. stock benchmarks put in their bear-market lows. In broader corporate news, Robinhood Markets Inc, the online brokerage at the heart of the historic retail trading frenzy that gripped Wall Street earlier this year, has confidentially submitted plans to regulators for a U.S. stock market listing, according to a Reuters report.
US equity markets climbed as technology stocks continued to stage a rebound – Dow added +103-points or +0.32% . The broader S&P500 rose 0.70%, with Information Technology (up +1.93%), Consumer Staples (+1.16%) and Real Estate (+1.11%) all up over 1% and leading seven of the eleven primary sectors higher. Financials (down -1.30%) and Energy (-1.01%) both lost over >1% to be the worst performing primary sectors. More broadly, Industrials got a boost after the New York Times reported that President Biden is eyeing an infrastructure deal of as much as US$3 trillion to boost the economy. Kansas City Southern surged +11.12% after Canadian Pacific Railway Ltd agreed to acquire the railroad operator in a US$25 billion cash-and-stock deal to create the first railway spanning the United States, Mexico and Canada. The Nasdaq rallied +1.23%, with Apple Inc (up +2.83%), Microsoft Corp (+2.45%) and Netflix Inc (+2.13%) all gained at least 2%. The small capitalisation Russell 2000 index lost -0.90%.
In today’s Morgans Conversations, adviser Chris Titley chats with Peter Lancken, Chair of Acrow Formwork (ASX Code: ACF). Peter delves into the story of Acrow – from his background at Kennards to now the opportunity at large. Peter discusses why he joined Acrow, how they navigated through 2020, as well as his views about the current infrastructure thematic. He also talks about the importance of culture, and the business acumen the company is deploying for future growth.
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Dr Sean Parsons, Founder & Managing Director of Ellume, presented at the Morgans Business Breakfast. The Australian-based digital diagnostics company has developed an at-home COVID-19 test kit that delivers a result within 15 minutes with roughly 96% accuracy.
Ellume struck a US$230 million deal with the United States in February to scale production and ship 8.5 million kits to the U.S. by the end of the year.
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US equity markets mixed amid a reversal of a recent trend that has seen value stocks outperform growth stocks, with Treasury yields taking a breather from their recent climb – Dow down -234-points or -0.71% Goldman Sachs Group Inc (down -1.09%) and JPMorgan Chase & Co (-1.59%) both fell after the Federal Reserve declined to extend pandemic-related regulatory relief for major US banks. Visa Inc dropped -6.24% after a report said the Justice Department has opened an investigation into its debit card business and possible anticompetitive practices. The broader S&P500 dipped -0.06%. Communication Services and Consumer Discretionary both advanced +0.80% to lead six of the eleven primary sectors higher. Real Estate (down -1.26%) and Financials (-1.2%) both declined over >1% to be the worst performing sector. FedEx Corporation rallied +6.1% after the economic bellwether’s fiscal third quarter numbers released after the closing bell of the previous session topped consensus expectations. The technology-centric Nasdaq gained +0.76% . Facebook Inc gained +4.12% after Chief Executive Mark Zuckerberg said Apple Inc’s imminent privacy policy changes on ad sales would leave the social network in a “stronger position.” The small capitalisation Russell 2000 index rose +0.88%.
Large classified players remain on a HOLD, but starting to see value emerge and near term expectations look well supported. Morgans Senior Analyst Anthony Porto wraps Reporting Season 1H21, for the Online and Emerging Technology sectors.
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US equity markets retreated as a fresh rise in bond yields exerted particular pressure on the technology sector – Dow fell -153-points or -0.46% a day after recording fresh record closing (33,015.37) and intra-day (33,047.58) highs. Chevron Corp declined -3.62%. The broader S&P500 lost -1.48% after also setting record closing (3,974.12) and intra-day (3,983.87) peaks in the previous session. Energy tumbled -4.68% to lead ten of the eleven primary sectors lower. Financials (up +0.56%) was the only primary sector to advance. The Nasdaq slumped -3.02% . Apple Inc (down -3.39%), Amazon.com Inc (-3.44%) and Netflix Inc (-3.75%) all fell more than >3%. The small capitalisation Russell 2000 index fell -2.94% (with the Russell 1000 growth index, which includes technology stocks, dropping more than >2%).
US equity markets advanced after a choppy session, with the Federal Reserve forecasting a fast economic recovery from the coronavirus pandemic and said it would maintain its interest rate at close to zero– Dow up +189-points or +0.58% to a fresh record closing high of 33,015.37 (after hitting a fresh intra-day high of 33,047.58) – the first settlement above >33,000. It also marked the fastest ever trip through consecutive 1000-point milestones, moving above >33,000 just five trading days after clearing 32,000 (albeit the hurdle obviously become less taxing in percentage terms the higher the index moves). Boeing Co (up +3.28% overnight) was the biggest points contributor (~120-points) to the indices latest 1,000-point rally. The second-fastest move between milestones was an eight-day journey from 25,000 to 26,000, a rise of 4%. The Walt Disney Co gained 0.5% after CEO Bob Chapek told CNBC that California’s two Disneyland theme parks will reopen on April 30. The broader S&P500 added +0.29% to a record close of 3,974.12 after setting an intra-day all-time high of 3,983.87 and erasing an earlier decline of -0.7%. Consumer Discretionary (up +1.41%) and Industrials (+1.12%) gained over >1% to lead six of the eleven primary sectors higher. Utilities (down 1.63%) was the worst performing sector. Amazon.com Inc (up +1.4% and Tesla Inc (+3.7%) provided the biggest lift to the index. The Nasdaq added +0.40% after also erasing earlier losses that saw the technology-centric index down as much as 1.5%. The small capitalisation Russell 2000 index rose +0.73%. AMC Entertainment Holdings Inc climbed ~4% in extended trading after the movie-theatre chain said that 98% of its U.S. locations will open starting Friday (19 March), and that 99% should be open by 26 March.
IntelliHR (ASX:IHR) is a leading people and performance management business. At its core, intelliHR uses analytics, data, and technology to enable its customers to track real-time performance and provide better outcomes for their staff.
In only a short space of time, IntelliHR has grown rapidly and is now expanding overseas on the back of a world-class technology-driven platform. Rob Bromage, Founder and Chief Executive Officer discussed IHR with the Morgans network.
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Technology #Analytics #HumanResources
US equity markets were in decline Tuesday night as the Dow fell from its record high and snapped a seven-day winning streak ahead of the Federal Reserve’s upcoming policy announcement. The Dow Jones Industrial Average fell about 129 points, or -0.4%, to 32,825.95. The S&P 500 slipped -0.2% after setting a record high intraday and finished at 3,962. The tech-heavy Nasdaq Composite eked out a gain of 11.86 points, or less than +0.1% to close at 13471.57, after having been up as much as 1.2% earlier in the day. Tech and communication stocks still posted gains, with Apple, Microsoft, and Google parent Alphabet all up more than +1% and Facebook gaining $5.53, or +2%, to close at $279.28. Amazon, Apple and Google have underperformed in recent months as investors have shifted from growth stocks to value plays, but some of the more mature tech stocks now appear less expensive due to their profitability and strong balance sheets, according to some strategists. Seven of the S&P 500's 11 sectors were in negative territory, with energy stocks performing the worst, weighed down by a decline in oil prices. Investors are keeping a close eye on the Federal Reserve to see whether it will address the recent rise in bond yields.
The Covid-19 rescue bill contains sweeping reforms to the US social safety net. Michael Knox discusses the implications of the bill, with the Morgans network.
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USWelfare #Biden #Covid-19 #USpayments
Fresh record closing highs for both the Dow and S&P500 although US equity markets tread water for much of the session before opposing in the closing minutes in the final minutes of the session – Dow gained +175-points or +0.53% to 32,953.46, logging seventh positive trading session in-a-row and fourth consecutive record closing high (the longest such run since December 2017, according to Dow Jones Market Data). The broader S&P500 advanced +0.65% to 3,968.94 and a third consecutive record closing high. Utilities (up +1.36%), Real Estate (+1.18%), Consumer Discretionary (+1.17%) and Information Technology (+1.11%) all climbed over 1%. Energy (down -1.25%) and Financials (-0.57%) were the only sectors to close in the red. United Airlines Holdings Inc jumped +8.26% after the carrier said in a filing that it expects core cash flow to be positive for the month of March. The Nasdaq +1.05%. Apple Inc gained +2.45% (paring its year-to-date loss to under <7%). Advanced Micro Devices Inc gained +1.79% as the company launched its third generation EPYC processors. The small capitalisation Russell 2000 index added 0.31% to also record a fresh record closing high (2,360.17).
US equity markets mixed on Friday night (12 March) to conclude a strong week as Treasury yields climbed and prompted investors to once again chase value stocks at the expense of growth stocks – Dow gained +293-points or +0.90% to notch its fifth consecutive record closing high of 32,778.64. Boeing Co rallied +6.82% following a Reuters report that the company had received an order from a private investment firm 777 Partners to buy 24 737 MAX airplanes with an option to purchase a further 60. Other notable index performers included Caterpillar Inc (up 4.2%) and investment banks Goldman Sachs Group Inc (+2%) and JPMorgan Inc (+1.2%). The broader edged S&P500 +0.10% higher, recovering earlier losses to also eke out a fresh record closing high of 3,943.34. Real Estate (up +1.50%), Industrials (+1.34%), Utilities (+1.28%) and Financials (+1.09%) all advanced over >1%. Communication Services (down -0.90%) and Information Technology (-0.71%) were the only sectors to close in the red. The Nasdaq lost -0.59% after rebounding over >6% over the preceding three sessions. China’s market regulator said Friday (12 March) it had imposed fines on twelve companies, including WeChat owner Tencent Holdings Ltd (down -7.52%), search engine Baidu Inc (-2.98%), ride-hailing giant Didi Chuxing and Japan’s SoftBank Corp. Separately, the US listed shares of China-based JD.com Inc slid -6.65% after three sources said it is in talks to buy part or all of a stake in brokerage Sinolink Securities worth at least US$1.5B. The small capitalisation Russell 2000 index advanced +0.61% to a record closing high of 2,352.79. Novavax Inc jumped +8.07% after the company said its COVID-19 vaccine was 96% effective in a Phase 3 trial.
We have upgraded CSL to an Add recommendation. While we make no changes to our estimates or price target, we believe CSL share price weakness offers an opportunity to buy a high-quality business at a discount. Dr. Derek Jellinek explains further in an update to the Morgans network.
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CSL #Investment #Stocks
Dr. Don Hamson from Plato Investment Management discussed with the Morgans network, highlighting the superior dividend performance of PL8 in the face of 35% dividend cuts post the onset of COVID.
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US equity markets rallied as rising inflation subsided, while the signing of a massive stimulus bill reinforced expectations of a strong economic recovery – Dow rose +189-points or +0.58%, paring an earlier climb of over >300 points that lifted the index to a fresh record intra-day peak (32,661.59). The broader S&P500 +1.04% to a fresh record closing high of 3,939.34, with Information Technology (up +2.12%) leading the primary sector gains. The Nasdaq +2.5%, with Facebook Inc (+3.39%), Alphabet Inc (+3.16%) and Netflix Inc (+3.67%) all advancing at least 3%. Chip stocks jumped sharply after China’s semiconductor trade association formed a new group to work with their U.S. counterparts to ease recent trade tensions between the two countries. Nvidia Corp (up +4.21%) and Advanced Micro Devices Inc (+4.79%) jumped more than 4% each. The small capitalisation Russell 2000 index rose +2.31%.
Cyclical stocks most sensitive to an economic rebound led US equity markets higher – Dow rallied +464-points or +1.46% to a record closing high of 32,297.02 . The broader S&P500 rose +0.6%, with Energy (up +2.63%, taking its 2021 gains to more than >39%.) returning to the top of the primary sector leaderboard and leading ten of the eleven primary sectors higher. All of Financials (up +1.92%), Materials (+1.64%), Industrials (+1.45%) and Consumer Staples (1.29%) rose over >1%. Information Technology (down -0.40%) was the only sector to close in the red. Investment bank UBS hiked its year-end S&P 500 target to 4,250 from 4,100, representing an ~9% gain from current levels. The Nasdaq inched +0.04% higher . The Dow hasn’t notched a record high while the Nasdaq Composite has been in correction territory since around the time of the dot-com boom and bust on 23 August, 1999, according to Dow Jones Market Data. The small capitalisation Russell 2000 index gained +1.81%.
US equity markets rallied, led by a strong rebound for the technology sector and as Treasury yield receded – Dow edged +30-points or +0.10% higher, settling near its session low and unwinding an earlier gain of over >300 points that lifted the index to a fresh record intra-day high (32,148.04). Walt Disney Co fell -3.66% despite Chief Executive Officer (CEO) Bob Chapek revealing at the annual shareholders meeting that the company’s Disney+ streaming service had topped >100M subscribers. The broader S&P500 gained +1.42%. Tesla Inc arrested a five session losing streak with a +19.64% jump and biggest single session advance since February last year (adding ~US$106B to the electric vehicle maker’s market capitalisation). Chevron Corp (down -0.23) hosted an Investor Day . The Nasdaq rebounded +3.69% to log its strongest session since 4 November last year, with Apple Inc (up +4.06%) and Facebook Inc (+4.09%) both up over >4%. Microsoft Corp (up +2.81%) and Netflix Inc (+2.66%) both gained over >2.5%, while Amazon.com Inc rose +3.76%. The small capitalisation Russell 2000 index gained +1.91%.
In today’s episode of Morgans Conversations, we chat with Heath Behncke from Holon Global Investments. Heath has been involved in equity markets for nearly two decades and started Holon as a fund to invest with a growth stance. Heath talks about the investment processes as well as their views on the technology sector, including stocks such as Tesla and Xero. Heath also talks about Web 3.0 – an interesting take on the future of blockchain applications and how companies will need to adapt and re-think business processes.
US equity markets mixed, with another steep sell-off for technology stocks – Dow gained +306-points or +0.97%, climbing as much as 650-points and touching a fresh record intra-day peak (32,148.04). Walt Disney Co rallied +6.27% ahead of the company’s annual shareholders meeting, with California health officials last Friday (5 March) gave Disneyland and other theme parks the go-ahead to reopen at limited capacity from 1 April, after a closure of almost a year due to the coronavirus pandemic. The broader S&P500 fell -0.54%, erasing an earlier +1% gain. Information Technology (down -2.46%) led the decline, while Utilities (up +1.39%), Materials (+1.29%), Financials (+1.29%) and Industrials (+1.05%) all advanced over >1%. Tesla Inc (down -5.84%) fell for a fifth straight session. 341 stocks in the S&P500 advanced, while 164 stocks retreated. The technology-centric Nasdaq tumbled -2.41% to settle more than >10% below its 12 February closing high (14,095.47) and booking its first correction since September last year. Apple Inc fell -4.17% to settle around a three month low and has fallen -% from its 26 January record close of US$143.16. The Dow booked its widest outperformance against the S&P 500 since 1971, according to Dow Jones Market Data and the biggest outperformance against the Nasdaq since 2001. The small capitalisation Russell 2000 index added +0.49%.
Morgans Equity Strategist Andrew Tang runs through our Best Ideas for March 2021. This month we add Ansell (ANN) Baby Bunting (BBN) and remove APA, Orica and Beach Energy.
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Ansell #Investment #Stocks
Dr. Derek Jellinek, Senior Analyst at Morgans, discusses Ansell (ASX:ANN), an addition to our Morgans Best Ideas (March 2021).
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Ansell #Investment #Stocks
Morgans Equity Strategist Andrew Tang runs through our Best Ideas for December 2020. Six new entries to the list this month are: Orica (ASX:ORI), Inghams (ASX:ING), Grain Corp (ASX:GNC), Bega Cheese (ASX:BGA), Magellan Financial (ASX:MFG) Santos (ASX:STO).
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asx #investing #stockpicks #Morgans
US equity markets rebounded following a stronger-than-expected February jobs report to conclude a volatile session and week of a positive footing – Dow settled +572-points or +1.85% higher after spanning an intra-day range of 814-points or ~2.63%. The broader S&P500 gained +1.95%, recovering from an earlier -1% decline. Energy (up +3.87%) sat atop the primary sector leaderboard for a third consecutive session, logging its best single session performance since November last year and leading all eleven primary sectors higher on Friday night AEST (5 March). All of Industrials (up +2.39%), Communication Services (+2.37%), Materials (+2.35%), Consumer Staples (+2.15%) and Health Care (+2.02%) gained over >2%. The Nasdaq +1.55% (at 12,920.15), with the technology-centric index staging its biggest intra-session comeback since 28 February last year after recovering from an earlier -2.6% slide (to 12,397.05) to settle near its session high. The Nasdaq sits ~8.3% below its 12 February record closing high. The small capitalisation Russell 2000 rebounded +2.11%. In merger and acquisition (M&A) news, Chevron Corp (up +4.31%) announced it has entered an agreement to acquire the 33.925M shares of Noble Midstream Partners it does not already own in all stock deal. Under the terms of the deal, Chevron will pay 0.1393 of its stock for each common unit of Noble owned. No further financial terms were disclosed.
US equity markets retreated after Federal Reserve Chair Jerome Powell failed to reassure investors that the central bank would keep surging bond yields and inflation expectations in check – Dow settled -346-points or -1.11% lower (at 30,924.14) after tumbling as much as -700-points earlier in the session. Home Depot Inc (down -2.5%) and Intel Corp (-2.62%) were among the biggest drags on the index. The broader S&P500 fell -1.34% (to 3,768.47), paring an earlier -2.5% decline. Information Technology (down 2.26%), Materials (-2.06%) and Consumer Discretionary (-2.02%) all fell over >2% and led nine of the eleven primary sectors lower. Energy remained atop the primary sector leaderboard with a +2.47% gain. Exxon Mobil Corp rose +3.87% after the Chief Executive Officer (CEO) of the energy major, Darren Woods, reiterated the company’s commitment to its dividend. Apple Inc (down -1.58%), Tesla Inc (-4.86%) and PayPal Holdings Inc (-6.27%) were among the largest individual drags on the index. Both the Dow and S&P500 logged their first settlement below their respective 50-day moving averages (30,944.98 and 3,818.61) in over a month The Nasdaq shed -2.11% and fell into negative territory for the calendar year-to-date (down -1.28%). The technology-centric benchmark settled -9.7% below its record closing high on 12 February and fell into correction territory on an intraday basis, down more than 10% from its most recent 52-week high. The small capitalisation Russell 2000 lost -2.76%.
A fresh rise in Treasury yields weighed heavily on technology stocks and dragged the benchmark US equity indices lower – Dow down -121-points or -0.39%, settling near its session low. The broader S&P500 fell -1.31% with Information Technology (down -2.49%) and Consumer Discretionary (-2.38%) both down over >2% and leading eight of the eleven primary sectors lower. Energy (up +1.43%) and Financials (+0.75%) were the leading primary sector performers. The S&P 500 financial and industrial sector indexes touched intra-day record highs. Just five companies - Apple Inc (down -2.45%), Amazon.com Inc (-2.89%), Microsoft Corp (-2.70%), Google-parent Alphabet Inc (-2.37%) and Tesla (-4.84%) – accounted for almost half the S&P500’s decline. Exxon Mobil Corp rose +0.8% after the oil major unveiled plans to grow dividends and curb spending with projections that were less bold than previous years at the company’s Investor Day. The Nasdaq dropped -2.70%, paring its year-to-date gains to +0.85%. Netflix Inc shed -4.95%. The small capitalisation Russell 2000 index lost -1.06%.
Increasing real demand for credit means that real bond yields must rise as investment rises. Morgans Chief Economist Michael Knox explains.
“Growth in the world economy this year will be the best growth for a couple of decades.”
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BondYields #Bonds #Inflation
US equity markets weaker after making a very strong start to March – Dow down -144-points or -0.46%. The broader S&P500 lost -0.81% a day after recording the best single-session performance since 5 June last year. Information Technology (down -1.35%) and Consumer Discretionary (-1.27%) were the worst-performing primary sectors with falls of over >2%, while Materials (up +0.58%) was the only primary sector to advance. The Nasdaq dropped -1.69%, with Apple Inc (-2.09%) and Facebook Inc (-2.23%) both down over >2% . The small capitalisation Russell 2000 index lost -1.93%. Lyft Inc rose +3.8% in extended trading after the company said it had its best week in terms of ridesharing volume since pandemic lockdowns began last year. Lyft also said it expects a narrower earnings before interest, tax, depreciation, and amortisation (EBITDA) loss for the first quarter than it previously forecast.
US equity markets made a strong start to March, buoyed by data showing that the manufacturing sector continues to gather steam and with the recent volatility on Treasury markets dying down – Dow gained +603-points or +1.95%, and booking its best daily gain since November last year. Boeing Co (up +5.84%) led the advance, with United Airlines Holdings Inc (+1.20%) said it is buying 25 additional 737 Max planes and taking delivery of other orders earlier than previously planned. The broader S&P500 rallied +2.38%, logging its best single session performance since 5 June last year. Information Technology (up +3.18%) and Financials (+3.12%) gained over >3% to lead all eleven primary sectors higher. Royal Caribbean Ltd fell 2.06% after the cruise operator said it has commenced a US$1.5B public stock offering. The Nasdaq jumped +3.01% to settle with its best single session advance since 4 November. Apple Inc gained +5.37% after all 270 of its stores in the U.S. were open to the public for the first time since last March. The small capitalisation Russell 2000 index jumped +3.43%, recording its sharpest daily percentage gain since 6 January.
February was a stunning season. Beats strongly overwhelmed misses by a record margin versus recent history. February was broadly a story of cyclicals outperforming overly-fearful valuations similar to August. Particularly impressive were Large-caps and domestic cyclicals as expected (Retail, Financials, traditional Industrials). Morgans Equity Strategist Tom Sartor discusses the outcomes, hits and misses for reporting season 1H21.
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US equity markets retreated as investors struggled to shake off concerns around the rapid jump in Treasury yields despite the Personal Consumption Expenditure (PCE) index - the Federal Reserve’s preferred measure of inflation - indicating subdued inflation in January – Dow dropped -470-points or -1.50% (to 30,932.37), dropping back below <31,000 The broader S&P500 lost -0.48%, briefly falling below its 50-day moving average (3,808.40). Energy (down -2.30%) led eight of the eleven primary sectors lower. Information Technology (up +0.60%) and Consumer Discretionary (+0.58%) were the leading primary sector performers. Cloud software company Salesforce.Com Inc fell -6.3% despite reporting that revenue topped US$20B for the first time in a fiscal year after the close of last Thursday’s (25 February) session, with 2021 earnings projections below consensus analyst expectations. Johnson & Johnson gained 1.3% in after-hours trading after the Food and Drug Administration (FDA) said it has contacted the company to say it is "rapidly" working toward issuing an emergency use authorization for the company’s COVID-19 vaccine candidate. Johnson & Johnson said earlier last week that it plans to deliver 20M doses of its single-dose vaccine in the U.S. by the end of March. Almost US$2.5B of shares changed hands near the close, dragging the Dow and S&P500 down to near their lows in the final minutes of Friday night’s (26 February) session. The Nasdaq settled +0.56% higher (to 13,192.34) after a volatile session that saw the index down -0.7% and up as much as +1.9% at session high – and after closing below its 50-day moving average on Thursday (25 February). Facebook Inc (up +1.15%), Microsoft Corp (+1.48%) and Amazon.com Inc (+1.17%) each rose more than >1% The small capitalisation Russell 2000 index inched +0.04% higher.
Morgans Business Breakfast is back for 2021! Our first guest speaker was Pinnacle Investment Management Group's (ASX:PNI) Managing Director, Mr. Ian Macoun.
Mr. Macoun delves into his time at Pinnacle and spoke about the years ahead for the financial sector, including stock markets and the positive recovery from COVID-19.
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Business #Pinnacle #Investment
Scott Power has upgraded the recommendation on Nanosonics, following their results from reporting season 2021.
US equity markets staged another intra-day comeback to settle with solid gains as investors continued to buy companies leveraged to an economic rebound – Dow rose +425-points or +1.35% to 31,961.86. Boeing Co jumped 8.1%, while Chevron Corp climbed 3.7%. Goldman Sachs and Visa Inc both rose more than >3%. The broader S&P500 rose +1.14%, recovering from an earlier -0.6% decline. Energy (up +3.64%) was once again the leading primary sector performer, while Financials (+2.01%), Industrials (+1.93%) and Information (+1.51%) also traded strongly. Utilities and Consumer Staples (-0.03%) were the only primary sectors to close in the red. Tesla Inc rose +6.2% after Ark Invest increased their stake in the electric vehicle maker. Johnson and Johnson rose +1.34% after the U.S. Food and Drug Administration (FDA) said that the pharmaceutical company’s COVID-19 vaccine met the requirements for emergency use authorisation. The Nasdaq rose +0.99%, erasing an earlier -1.3% fall. The small capitalisation Russell 2000 index jumped +2.38%.
Economic Strategist Michael Knox outlines how the US deficit (almost the largest since WW2) will drive a boom in international trade in 2021 and 2022.
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Bank of Queensland (ASX:BOQ) to acquire ME Bank. Azib Khan discusses the acquisition with the Morgans network.
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Banks #BOQ #MEBank #Acquisitions
US equity markets settled with modest gains after staging a big intra-day recovering following Federal Reserve Chair Jerome Powell’s dovish congressional testimony that relieved some concerns around higher interest rates and inflation – Dow eked out a +15-point or +0.05% gain, erasing an earlier decline of over >360-points. The broader S&P500 added +0.13%, recovering from an earlier -1.8% drop. Energy (up +1.61%) once again sat atop the primary sector leaderboard and led seven of the eleven primary sectors higher. Consumer Discretionary (down -0.49%) and Information Technology (-0.25%) were the worst performing sectors. Tesla Inc settled -2.2% lower and moved into negative territory for the year, dropping as much as -13% earlier in the session. The Nasdaq lost -0.52%, paring an earlier 3.9% decline that saw the technology-centric index fall below its 50-day moving average for the first time since 3 November last year. Apple Inc dipped -0.11% after sliding as much as -6% earlier in the session hosted their annual shareholders meeting The small capitalisation Russell 2000 index fell -0.88%.
Andrew Harding Managing Director of Aurizon (ASX:AZJ) discusses company results for 1H21 with the Morgans network.
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Reportingseason21 #Stocks #Analysis
US equity markets weaker as rising Treasury yields and inflationary concerns weighed on some high-flying growth stocks – Dow added +27-points or +0.09%. Disney jumped 4.4%, while industrial giant Caterpillar and chemicals company Dow Inc. both climbed more than 3.5%. American Express and Chevron gained 3.2% and 2.7%, respectively The broader S&P500 fell 0.77%, with Information Technology (down -2.26%) and Consumer Discretionary (-2.15%) the worst performing sectors with declines of over >2%, while Energy (up +3.47%) returned to the top of the primary sector leaderboard.. Tesla Inc dropped -8.55%, the biggest single session fall for the electric vehicle maker’s stock since 23 September, 2020. Some linked the decline to the ~6% decline in Bitcoin overnight, with Tesla disclosing earlier this month that it had acquired US$1.5B of the digital currency for “more flexibility to further diversify and maximize returns on our cash.” Airline stocks rebounded, buoyed by an upgrade to several carriers by Deutsche Bank. American Airlines Group jumped +9.42% The Nasdaq dropped -2.44%, with Apple Inc (-2.98%), Amazon.com Inc (-2.13%) and Microsoft Corp (-2.68%) all dropping at least -2%. However, Oracle Corp rallied +5.43% following a positive story in Barron’s that suggested it could be the next longstanding technology company to transform like Adobe Inc (down -2.46%), Autodesk Inc (-2.52%) and Microsoft, which changed up their business models to embrace cloud-based services over traditional licensed software, and saw their stocks rise as a result. The small capitalisation Russell 2000 index fell -0.69%.
Half-way through corporate Reporting Season, Morgans Equity Strategist Andrew Tang walks through the key themes and results.
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Reportingseason21 #Stocks #Analysis
US equity markets settled little changed on Friday night AEST (19 February) as investors continued to rotate out of technology stocks and into cyclical stocks seen as likely to benefit from pent up demand once the COVID-19 pandemic is subdued and the economy re-opens – Dow settled flat after touching a fresh record intra-day high (31,647.53). The broader S&P500 slipped -0.19%, turning negative in the final minutes of the session and extending its decline into a fourth straight session and marking the index’s longest losing streak in two months. Utilities (down -1.51%), Consumer Staples (-1.23%), Health Care (-1.15%) and Communication Services (-1.07%) all logged falls of over >1%, offsetting gains of over >1% for all of Materials (up +1.85%), Energy (+1.64%), Industrials (+1.60%) and Financials (+1.16%). The Nasdaq inched +0.07% higher although much of the FAANG complex weaker (Facebook Inc down -2.91%, Amazon.com Inc -2.35%, Netflix Inc -1.46% and Google parent Alphabet Inc -0.76%). Apple Inc (up +0.12%) edged higher for the first time in four sessions. Applied Materials Inc gained +5.32% after the chip-industry supplier reported better-than-expected fiscal first-quarter adjusted earnings per share and revenue of US$5.16B after the close of last Thursday’s (18 February) session, with Chief Executive Officer Gary Dickerson observing that there is “strong momentum across the company. The small capitalisation Russell 2000 index jumped +2.18%.
US equity markets - Dow fell -120-points or -0.38%, pulling back from the record closing high (31,613.02) of the previous session but paring an earlier decline of over >300-points. The broader S&P500 shed -0.44%, retreating for a third straight session. Energy (down -2.27%) led nine of the eleven primary sectors lower. Utilities (up +0.55%) and Consumer Discretionary (+0.14%) were the only primary sectors to advance. The Nasdaq fell -0.72%, with Apple Inc down -0.9% and extending its week-to-date decline to over ~4.2%. The small capitalisation Russell 2000 index dropped -1.67%.
US equity markets mixed amid a rotation out of technology stocks and as inflation concerns continued to apply some pressure on equities - Dow added +90-points or +0.29% to a fresh record closing high of 31,613.02, recovering from an earlier decline of as much as -180-points. Verizon Communications Inc (up +5.24%) and Chevron Corp (+3.00%) were among the leading index performers Warren Buffett’s investment vehicle Berkshire Hathaway disclosed fresh stakes in both companies. The broader S&P500 dipped -0.03%, with Information Technology (down -1.03%) the worst performing primary sector and offsetting a +1.45% gain for the Energy sector. Wells Fargo and Co rallied +5.17% after Bloomberg News reported that Fed officials had signalled to the diversified financials group that they would approve its overhaul plan. Wells Fargo has been operating under several restrictions, including an asset camp, related to its fake accounts scandal under prior leadership. The Nasdaq shed -0.58%. Apple Inc fell -1.76%, with Berkshire Hathaway disclosing it had trimmed its position in the company over the past quarter by -6% to just over 887M shares. The small capitalisation Russell 2000 index fell -0.74%.
The US budget deficits of 2020 and 2021 drive the $US down and commodity prices up. Chief Economist, Michael Knox shares his latest thoughts with the Morgans network.
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BudgetDeficit #Commodities #Economics
US equity markets struggled for direction after resuming trading following the Presidents Day long weekend, with traders also eyeing the latest climb in long bond yields - Dow added +64-points or +0.20% to carve out another record closing high (31,522.22). The broader S&P500 dipped -0.06%, with yield sensitive Utilities (down -1.14%), Real Estate (-1.07%) and Health Care (-1.02%) all down over >1%. Energy (up +2.26%) was once again atop the primary sector leaderboard, while Financials also traded strongly (+1.77%). The Nasdaq fell -0.34%. The small capitalisation Russell 2000 index fell -0.72%.
Morgans’ Analyst, Max Vickerson, discusses Beach Energy’s 1H21 result and whether the uncertainty surrounding the Western Flank presents a buying opportunity.
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BPT #Energy #Stocks
Nathan Lead discusses the highlights of the 1H21 result and the changes he has made to his outlook for the company.
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AZJ #Aurizon #Resources
Senior Analyst Tom Sartor takes a look at the results reported to date, emerging trends, and the better performing segments.
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Reportingseason21 #Stocks #Analysis
European bourses advanced in thin trade, with markets in the US, China, Hong Kong and Taiwan all closed for local holidays. The benchmark pan-European Stoxx 600 index (which includes UK equities) gained +1.32%, with Basic Resources (up +4.0%), Oil and Gas (+3.99%) and Banks (+3.1%) leading the advance. Germany's DAX gained +0.56% and France's CAC +1.45%. Vivendi SE soared +19.62% after the French conglomerate said it may spin out Universal Music Group (UMG) in Amsterdam and distribute 60% of the capital to investors by year end. Vivendi, which is controlled by billionaire Vincent Bollore, announced the plan on Saturday (13 February) after it completed the sale of a 10% stake in UMG to a consortium led by Tencent Holdings, which valued UMG at €30B. Ten-year bond yields in Germany, France and the Netherlands all rose to their highest level since September as reflation expectations gripped markets. In economic data, eurozone industrial production dropped -1.6% in December from a month earlier, worse than economists’ forecast for a -0.6% drop and a marked downturn after growth of +2.6% in November. The ZEW Economic Sentiment Index for the eurozone/Germany for February and a second estimate of eurozone gross domestic product (GDP) growth for the fourth quarter are released tonight AEST.
Overall this was a good result from TLS, in our view. They have held the dividend flat at 8cps (and guided to a 16 cps dividend for FY21 which is flat yoy). P&L guidance is broadly unchanged but FCF guidance has been upgraded by ~15% on tighter working capital. Progress is being made on InfraCo value realisation with bids for InfraCo towers expected by the end of this calendar year.
Fresh record closing highs for the benchmark US equity indices to cap another strong week ahead of the holiday long weekend, with fiscal stimulus and inflation the key broader themes - Dow added +28-points or +0.09% to 31,458.40. The Walt Disney Co erased earlier gains to close -1.7% lower despite announcing after the close of last Thursday’s (11 February) session that that its streaming platform, Disney+, surpassed 94.9M subscribers as part of its fourth quarter earnings release. Disney+ exceeded the company’s initial subscriber goal of 60M to 90M by 2024 back in November, forcing it to reforecast. The company now expects Disney+ will have 230M to 260M subscribers by 2024. The broader S&P500 rose +0.47% to 3,934.83, with Energy (up +1.40%), Materials (+1.02%) and Financials (+0.95%) logging gains of +0.9%+ and leading nine of the eleven primary sectors higher. Utilities (down 0.79%) and Real Estate (-0.06%) were the only primary sectors to close in the red. PayPal Holdings Inc rose +4.7% after several analysts raised their price targets following the payments company’s investor day last Thursday (11 February). The Nasdaq gained +0.50% to 14,095.47 The small capitalisation Russell 2000 index edged +0.18% higher. For the week, the Dow gained +1.0%, S&P500 +1.23% Nasdaq +1.73% US equity and bond markets are CLOSED tonight AEST for the Presidents Day holiday.
Commonwealth Bank (ASX:CBA) announced its results for 1H21. Morgans Senior Analyst Azib Khan, discusses CBA's results with the Morgans network.
US equity markets settled narrowly mixed , with comments from President Joe Biden that China was poised to “eat our lunch” tempering investor sentiment - Dow slipped -8-points or +0.02% . The broader S&P500 edged +0.17% higher to eke out a record closing high (3,916.38), with Information Technology (up +1.09%) leading four of the eleven primary sectors higher in what was a narrow advance, buoyed by gains for Nvdia Corp (up +3.3%) and Intel Corp (+3.06%) . Energy (down -1.53%) was the worst performing primary sector. Mastercard Inc rose +2.59% after the credit-card company said it was planning to offer support for some cryptocurrencies on its network this year, joining a string of big-ticket firms that have pledged similar support.
Morgans Senior Analyst Nick Harris discusses with the Morgans network the Telecommunications & Technology 1H21 results preview.
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Analyst Nathan Lead provides a review of his coverage ahead of the upcoming reporting season.
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Optimistic results for the Retail sector, with JB Hi-Fi and Super Retail Group providing positive trading updates. Morgans Senior Analyst Josephine Little, and James Barker Analyst, discuss the sector with the Morgans network, ahead of Reporting Season.
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Alex Lu updates the Morgans network with his Industrials sector pre-reporting season summary.
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"Major banks: Potential for upcoming reporting to surprise on upside". Morgans Senior Analyst Azib Khan explains the optimism in the banking sector's financial results, ahead of Reporting Season 1H21
US equity markets lower after a choppy session - Dow added +62-points or +0.20% to 31,437.80 and a fresh record closing high, recovering from an earlier decline of as much as -150-points. The broader S&P500 dipped 0.03%. Energy (up +1.84%) returned to the top of the primary sector leaderboard, while Consumer Discretionary (down -0.94%) was the worst performer. Oracle Corp (down -0.63%) and Walmart Inc (-1.17%) closed lower following a report that a planned forced sale of TikTok’s American operations to a group that includes the two companies had been shelved indefinitely. The Nasdaq lost -0.25% after logging record closing highs for each of the previous four trading sessions, with Amazon.com Inc (down -0.56%), Microsoft Corp (-0.39%) and Apple Inc (-0.46%). However, Twitter Inc soared +13.2% after the social-media platform delivered its second-ever US$1B quarter after the close of the previous session. All three benchmark indices touched fresh record intra-day highs during the session. The small capitalisation Russell 2000 index lost -0.72%, also retreating from record highs.
Ansarada (ASX:AND) Co-Founder and CEO, Sam Riley provides an update on the company’s performance for the quarter ending 31 December 2020, including growth in Active Customer Numbers and Revenue. Sam also updates on recent customer wins and feedback.
Ansarada is a SaaS software company that helps companies govern critical information to assist in managing critical business outcomes, which is a US$20 billion market opportunity.
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Ansarada #SaaS #Morgans
Morgans Senior Analysis, Dr. Derek Jellinek, provides an update on the healthcare universe, including key upcoming catalysts.
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Healthcare #Stocks #ReportingSeason
Morgans Senior Analyst, Dr. Derek Jellinek, discusses the Healthcare Sector ahead of the February 2020 Reporting Season. In this update, Derek also highlights his thoughts on ResMed (ASX:RMD), CSL (ASX:CSL) and Ramsay Healthcare (ASX:RHC), considering their recent short-term price decline.
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Healthcare #Stocks #ReportingSeason
The Fed now intends to run inflation above 2% for some time. Michael Knox Morgans Chief Economist explains what this means for the bond market in two to three years’ time.
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US equity markets settled with modest declines, with the Dow and S&P500 snapping a six session winning streak - Dow slipped -10-points or -0.03% . The broader S&P500 dipped -0.11%, with Energy (down -1.52%) the worst performing primary sector after rallying over >4% in the previous session. The Nasdaq edged +0.14% higher to log its fifth consecutive record closing high (14,0007.70) and tenth of 2021. The NYSE FANG+TM index, which includes Facebook Inc (up +1.08%), Netflix Inc (+2.03%) and Tesla Inc (down -1.62%), rose to an all-time high. The small capitalisation Russell 2000 index rose +0.40% to a fresh record closing high of 2,299.00 and extending its year-to-date gain to over >16%.
In our first episode of Bank to the Future in 2021, we chat to Christian Ecklemann, Co-founder and CEO of Upstreet (recorded in December 2020).
Upstreet was founded in 2019 by a passionate team of experienced professionals and entrepreneurs looking to make life better for everyday shoppers across Australia and the world. To create real alignment between major brands and everyday shoppers, Upstreet wanted to enable brands to offer real shares with every purchase. Christian talks about the journey thus far, their competitive position as well as the increasing popularity of shares as an asset class amongst millennials.
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Fintech #Millenials #Shares
A fresh round of record closing highs for the benchmark US equity indices as stimulus prospects and ongoing vaccine deployment continued to boost investor optimism around the pace of the economic recovery from the COVID-19 recession - Dow +238-points or +0.76% to 31,385.76. The broader S&P500 rose +0.35% to 3,915.59, with the Energy sector rallying +4.17% and leading ten of the eleven primary sectors higher. Utilities (down -0.78%) was the only sector to close in the red. Airline stocks jumped as documents showed Democrats’ stimulus proposal could include US$14B for the airline payroll assistance. American Airlines Group Inc popped +3.37%, while United Airlines Holdings +5.2% and Delta Air Lines Inc +5.1%. Both the Dow and S&P500 logged their sixth consecutive session of gains, marking their longest winning streak since August last year. The Nasdaq gained +0.95% to 13,987.64 The small capitalisation Russell 2000 index rallied +2.53% to 2,286.62and is up ~16% calendar year-to-date.
US equity markets advanced, with both the S&P500 and Nasdaq logging fresh record closing highs for a second straight session as sentiment was buoyed by a combination of corporate earnings optimism, stimulus talks and progress on COVID-19 vaccine rollouts - Dow added +92-points or +0.30% to 31,148.24, just shy of its 20 January closing record of 31,188.38. Nike Inc (up +3.19%) and Cisco Systems Co (+1.76%) were among the leading index performers. The broader S&P500 rose +0.39% to 3,886.83, logging its seventh record closing high year-to-date. Materials (up +1.71%), Communication Services (+0.95%), Energy (+0.92%) and Consumer Discretionary (+0.92%) rose 0.9%+ to lead ten of the eleven primary sectors higher. Information Technology (down -0.22%) was the only sector to close in the red after hitting a record high earlier in the session. Both the Dow and S&P 500 rose for a fifth straight session in their longest streak of gains since August. The Nasdaq gained +0.57% to 13,856.30, the eight record closing high for the technology-centric index year-to-date. The small capitalisation Russell 2000 index rose +1.4%.
Mary Manning from Ellerston Asian Investments presents to the Morgans network a positive outlook for Asian markets, based on the best economic growth outlook in the world, and focuses on six main market drivers for 2021.
US equity markets rallied, with the both the S&P500 and Nasdaq settling at fresh record closing highs - Dow gained +332-points or +1.08% . The broader S&P500 rallied +1.09% to settle at a record closing high of 3,871.74, with Financials (up +2.28%) leading ten of the eleven sectors higher as Treasury yields climbed. Materials (down -0.54%) was the only primary sector to close in the red. eBay Inc and PayPal Inc (+%) rallied after posting strong results The Nasdaq gained +1.22% to log a record closing high of 13,777.13. Apple Inc rose +2.58% after CNBC reported that it is close to finalizing a deal with Hyundai-Kia to produce driverless cars. The small capitalisation Russell 2000 index gained +1.98% to also register a record close.
Morgans Healthcare Analyst Iain Wilkie talks to Pippa Leary, Chief Executive Officer of Swift Media (ASX:SW1) for a high-level overview of the business, catalysts, and its shift into the large aged care sector.
US equity markets settled with modest gains - Dow added +36-points or +0.12% . The broader S&P500 rose +0.10%, extending its gains into a third straight session and with the Energy sector (up +4.27%) the clear outperformer. The Nasdaq dipped -0.02%, relinquishing earlier gains in the final hour of trading despite Google parent Alphabet Inc rallying +7.3% and hitting a record high after posting record profits for a second straight quarter after the closing bell of the previous session. Amazon Inc fell -2% after releasing their fourth quarter result after the close of Tuesday’s (2 February) session and announcing that Amazon Web Services (AWS) Chief Executive Officer (CEO) Andy Jassy will replace founder Jeff Bezos as CEO during the third quarter of this year as the company. The small capitalisation Russell 2000 index added +0.38%.
Why the decline of US feedstock oil is allowing a rise in oil prices? Michael Knox shares his insights with the Morgans network.
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US equity markets rallied ahead of quarterly earnings releases from a number of technology majors after the closing bell, building on the strong gains in the previous session - Dow rallied +476-points or +1.57%, logging its best single day percentage gains since 16 November. The broader S&P500 rose +1.39% to 3,826.31, settling within 1% of its record closing high of 3,855.36. Tesla Inc gained+ 3.9% despite the electric car maker moving to recall roughly 135,000 Model S luxury sedans and Model X sport-utility vehicles over touch-screen failures, one of the electric-car maker’s largest-ever safety actions. The Nasdaq gained +1.56% to 13,612.78, withing touching distance of its record close of 13,635.99. The small capitalisation Russell 2000 index slipped -0.16%. In merger and acquisition (M&A) news, the Wall Street Journal reported that Kraft Heinz Co (down -0.27%) is nearing a deal to sell its Planters brand to Spam owner Hormel Foods Corp (up +3.90%) for ~US$3B. Uber Technologies Inc rose +7% after the ride-hailing company announced a deal to buy on-demand alcohol marketplace Drizly for US$1.1B in stock and cash.
Stavely Minerals (ASX:SVY) Managing Director, Chris Cairns, updates the Morgans network on the evaluation of the shallow Cayley Lode copper deposit, in Western Victoria, and on drilling to extend the known strike as well as testing the depth extent below the open pit mineralisation currently being drilled for resource definition. Stavely will also drill to test for the deeper copper-gold porphyry which is interpreted as the source for the higher grade, structurally controlled mineralisation.
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Gold #Copper #ASX #Morgans
US equity markets made a strong start to February, rebounding from sharp falls in the previous session - Dow gained +230-points or +0.76% . The broader S&P500 rose +1.61%, logging is best day since 24 November last year and with Consumer Discretionary (up +2.77%), Information Technology (+2.51%) and Real Estate (+2.27%) all gaining over >2% and leading all eleven primary sectors higher. The Nasdaq gained +2.55%. Apple Inc (up +1.65%) announced that it was selling US$14B of its corporate bonds, spread over six tranches. The small capitalisation Russell 2000 index gained +2.53%.
US equity markets fell sharply on Friday night AEST (29 January), with the benchmark indices capping their worst weekly and monthly performance since October as investors eyed COVID-19 vaccine rollout delays and as surging prices on a small group of heavily shorted stocks continued to take oxygen out of the market as hedge funds covered short positions and reduced exposure to other stocks to reduce risk - Dow tumbled -621-points or -2.03% to 29,982.62, marking the indice’s lowest settlement – and first close below <30,000 - since 14 December, 2020. The broader S&P500 dropped -1.93%. Energy (down -3.39%), Information Technology (-2.40%), Industrials (-2.09%), Consumer Discretionary (-2.08%), Consumer Staples (-2.04%) and Financials (-2.02%) all logged falls of over >2% and all eleven primary sectors closed in the red. American Airlines Group Inc (down -5.14%) authorised the sale of another US$1B in stock, the carrier said in a filing on Friday (29 January), in an effort to shore up cash as COVID-19 continues to depress travel demand. Both the Dow and S&P500 closed below their respective 50-day moving averages (3,716) for the first time since October last year. The Nasdaq slumped -2.00%, with Apple Inc down -3.74%. The small capitalisation Russell 2000 index fell -1.60%. For the week, the Dow dropped -3.27% S&P500 -3.31% and Nasdaq -3.49%. The Russell 2000 lost -1.6% last week. For the month, Dow lost -2.04% and S&P500 -1.11%, marking the worst monthly performance for both indices since last October. The Nasdaq gained +1.42%.
US equity markets rebounded a day after the benchmark indices logged their worst session in three months - Dow rallied +300-points or +0.99%, its largest one day point and percentage gain since 6 January a day after logging its worst single session decline (-634-points or -2.1%) since 28 October last year. The broader S&P500 rose +0.98%, with Financial, Materials and Industrials gaining over >1.5% leading all eleven primary sectors higher – the first time all key S&P500 sectors have advanced since 13 November last year. The Nasdaq gained +0.44%. Apple Inc (down -3.50%) and Facebook Inc (-2.62%) The small capitalisation Russell 2000 index slipped -0.10%. Overall trading Volumes surged, with more than >23B shares traded, the highest since May 2019, according to Dow Jones Market Data.
US equity markets slumped, logging their worst session in three months in the wake of the Federal Reserve’s latest sober monetary policy statement - Dow tumbled -634-points or -2.05%, logging its worst single session decline since 28 October last year. However, Walgreens Boots Alliance +4.01% after the pharmacy chain said it had tapped Starbucks Corp (down -6.51%) executive Roz Brewer to serve as its new chief executive. The broader S&P500 shed -2.57%, wiping out its gains for 2021. Communication Services (down -3.82%), Consumer Discretionary (-3.13%), Healthcare (-3.05%) and Materials (-3.00%) all fell 3%+ and led all eleven primary sectors lower. The Nasdaq lost -2.61%. Advanced Micro Devices Inc fell -6.% The small capitalisation Russell 2000 index fell -1.91%.
We estimate Australian GDP grew by 2.7% in Q4 2020. Michael Knox, Morgans Chief Economist discusses how the Australian economy is recovering, following the Covid-19 pandemic in 2020.
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US equity markets settled modest losses, with the S&P500 and Nasdaq pulling back from the record closing highs set in Monday’s (25 January) session on what was a big day on the corporate earnings calendar - Dow eased -23-points or -0.07%, logging its fourth consecutive session decline after paring an earlier rally of over >150-points. The broader S&P500 slipped -0.15%, after hitting a fresh record intra-day high (3,870.90). The Nasdaq dipped -0.06%. The small capitalisation Russell 2000 index fell -0.%. The session was again marked by wild swings in some heavily shorted stocks, including omnichannel video game retailer GameStop Corp (up +92.71% in regular trading and climbing a further +43.80 in the extended session), Bed Bath and Beyond Inc (up +20.18% in regular trading and up over >15% in the extended session) and consumer robot company iRobot Corp (+9.14%). Both the S&P500 and Nasdaq settled at fresh record closing highs on Monday night AEST (25 January) after a choppy session ahead of the busiest week on US fourth quarter earnings calendar - Dow slipped -37-points or -0.12% . Caterpillar Inc and American Express Corp were the weakest performers on the Dow, falling -2.4% and -3.9% respectively. The broader S&P500 rose +0.36% to 3,855.36, recovering from an earlier decline of over >1%. Utilities (up +1.95%), Consumer Staples (+0.91%) and Information Technology (+0.88%) led eight on the eleven primary sectors higher. Energy (down -1.06%) and Financials (-0.76%) were the laggard sectors. The Nasdaq gained +0.69% to 13,635.99 after also clinching an intraday record (13,728.98 near the open of Monday’s session). The Russell 2000 index eased -0.25%. Moderna Inc rose +12.2% after it announced that it was testing an experimental booster shot to increase the immune response against a coronavirus variant first found in South Africa. In broader stock moves, AMC Entertainment Holdings Inc soared +25.93% after announcing that it had raised US$917M, meaning “any talk of an imminent bankruptcy for AMC is completely off the table” according to Chief Executive Officer (CEO) Adam Aron.
Some soft corporate earnings and economic releases saw US equity markets settle lower on Friday (22 January). The Dow fell -179 points or -0.57% . International Business Machines (IBM) Corp dropped -9.91% after posting a disappointing fourth quarter result after the closing bell of Thursday’s (21 January) session, with revenue down for a fourth straight quarter (down -6% on an annualised basis). Intel Corp fell -9.29% a day after the chipmaker posted a better-than-expected fourth quarter result, with some investors concerned about the competitive challenges from the likes of Nvidia Corp (down -1.12%) and Advanced Micro Devices (up +1.38%) confronting incoming Chief Executive Office (CEO) Pat Gelsinger. The broader S&P500 lost -0.30%, pulling back from the record closing set in the previous session. Financials (down -0.72%), Energy (-0.50%) and Industrials (-0.49%) led eight of the eleven primary sectors lower. Real Estate (up +0.31%), Utilities (+0.17%) and Communication Services (+0.12%) were the only primary sectors to advance. The Nasdaq inched +0.09% higher to log a fresh record closing high (13,543.06). Apple Inc rose +%, extending its weekly rise to +9.4%. The small capitalisation Russell 2000 also logged a fresh record closing high, rallying +1.3% to 2,168.76. For the holiday-shortened week, the Dow gained +0.59%, S&P500 +1.94% and the Nasdaq +4.19%. The Russell 2000 logged a +2.2% weekly gain.
Arvid provides the Morgans Network with an update on recent fund performance, and Magellan’s latest investment insights for the year ahead.
US markets gave up afternoon gains Thursday as investors' optimism over stronger-than-expected earnings competed with signs that the labor market is still struggling to recover. The Nasdaq Composite rallied to a record close Thursday as investors showed renewed interest in megacap technology companies ahead of their earnings reports in the weeks ahead. The technology-heavy index climbed 73 points, or +0.5%, to 13,530, propelled higher by shares of Apple, Facebook and Amazon.com. The day marked the Nasdaq's third consecutive day of gains and its fourth record close of the year. Gains for the Nasdaq came amid an otherwise bumpy session for U.S. stocks, with both the S&P 500 and the Dow Jones Industrial Average swinging between small gains and losses throughout the day. The S&P 500 ultimately eked out a gain to finish at a record high, rising +1.22 points, or less than +0.1%, to 3,853.07. The Dow Jones Industrial Average, meanwhile, fell -12 points, or less than +0.1%, to 31,176. Hopes for a robust earnings season from the country’s largest communications and tech stocks have kept the mega-cap stocks trending upward, and the major indexes near records, during the holiday-shortened week. Apple and Facebook have risen +7.7% and +8.6%, respectively, this week ahead of their quarterly results, while Microsoft has gained +5.8%.
Fresh record intra-day and closing highs for the benchmark US equity indices as investors eyed fresh fiscal stimulus measures as Joe Biden was inaugurated as the 46th president of the United States - Dow rallied +258-points or +0.80% 31,188.38. The broader S&P500 rose +1.39% to 3,851.85, with Communication Services (up +3.61%), Consumer Discretionary (+2.26%) and Information Technology (+2.02%) all gaining over >2% and leading ten of the eleven primary sectors higher. Financials (down -0.47%) was the only primary sector to close in the red. The Nasdaq gained +1.96% to 13,457.25 Netflix Inc soared +16.85% and logged its best single session advance in more than four years after. Big technology names also traded strongly, including Google-parent Alphabet Inc up +5.36%, Amazon.com Inc +4.57% and Microsoft Corp +3.65%. The small capitalisation Russell 2000 index added +0.44%.
Surprising strength in hours worked, suggest surprising strength in GDP. Michael Knox explains how the recovery in the Australian economy is unfolding post Covid-19.
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US equity markets advanced after resuming trading following the Martin Luther King Jnr. Day holiday, with as U.S. Treasury Secretary nominee Janet Yellen advocating for further fiscal stimulus - Dow added +116-points or +0.38%, snapping a three session slide. Boeing Co gained +3.13% as Canada said it would lift a near two-year flight ban on its 737 MAX following two fatal crashes involving the model while a final clearance from Europe to resume flying the jet is expected next week. The broader S&P500 rose +0.81%, with Energy (+2.05%), Communication Services (+1.87%) and Information Technology (+1.31%) leading eight of the eleven primary sectors higher. The more defensive sectors lagged, with Real Estate down =-0.54%, Consumer Staples -0.44% and Utilities -0.37%. General Motors Company jumped +9.75% after the automaker said it was partnering with Microsoft Corp (+1.78%) to speed up the commercialisation of driverless cars. As part of the “long-term strategic relationship,” Microsoft will join General Motors (GM) as well as Honda Motor Co. Ltd and institutional investors on a combined new US$2B equity investment in GM’s self-driving vehicle start-up Cruise. Tesla Inc rose +2.23% after the electric vehicle market leader tweeted over the weekend that it has started official deliveries of its Model Y vehicles in China. The technology-centric Nasdaq gained +1.53% to 13,197.18, settling just shy of its 8 January all-time high (13,201.98). The small capitalisation Russell 2000 index gained +1.32%. In broader stock moves, Harley Davidson Inc rose +2.1% toward a 2-year high after the motorcycle group said its 2021 line-up of bikes have arrived at its dealers.
Scott Power from the Morgans Healthcare team speaks with Peter Rowland, CEO from Micro-X (ASX:MX1) where he explains the technology, its application, and upcoming catalysts for 2021.
US equity and bond markets were CLOSED overnight for the Martin Luther King holiday. President-elect Joe Biden’s team confirmed overnight it planned to nominate two consumer champions to lead top financial agencies, signalling a tougher stance on the industry than many had anticipated. Gary Gensler will serve as chair of the Securities and Exchange Commission (SEC) and Federal Trade Commission member Rohit Chopra will head the Consumer Financial Protection Bureau (CFPB). Mr Gensler is expected to pursue new corporate disclosures on climate change related-risks, political spending, and the composition and treatment of company workforces, and to complete post-crisis executive compensation curbs, among other rules. Mr Chopra is expected to review payday lending and debt-collection rules
US equity markets dropped on Friday (15 January) as investors pondered incoming President Biden’s US$1.9 trillion stimulus plan and parsed quarterly results from a brace of major US banks - Dow down -177-points or -0.57%, paring an earlier decline of as much as -379-points. Dow Inc (down -%) and Chevron Corp (-%) both fell more than 3% led the 30-stock average lower. The broader S&P500 fell -0.72%, with the Energy sector dropping -4% and posting its worst one-day decline since late November. Financials (down -1.80%), Materials (-1.46%) and Industrials (-1.27%) all fell over >1%. The more defensive sectors outperformed, with Real Estate up +1.46%, Utilities +0.96% and Health Care +0.32%. Exxon Mobil Corp fell -4.81% after The Wall Street Journal reported that the Securities and Exchange Commission launched an investigation into allegations that an employee of the oil giant overstated the value of a key Permian Basin asset. Pfizer Inc slipped -0.14% after confirming it will temporarily reduce deliveries to Europe of its COVID-19 vaccine while it upgrades production capacity to 2B doses a year. The Nasdaq shed -0.87%. The small capitalisation Russell 2000 index fell -1.49%. For the week, the Dow lost -0.91%, S&P500 -1.48% and Nasdaq -1.54%. However, the Russell 2000 gained +1.50%. US equity and bond markets are CLOSED tonight AEST for the Martin Luther King holiday.
Healthcare analysts Iain Wilkie and Scott Power wrap up the week with a review and call out on stocks in the IVF sector such as: Virtus Health (VRT) and Monash IVF Group (MVF). Some other stocks mentioned are ImexHS (IME), Swift Media (SW1), and Impedimed (IPD).
US equity markets settled with modest losses, relinquishing earlier gains in the final hour of trading that saw both the Dow and Nasdaq touch fresh record intra-day highs - Dow lost -69-points or -0.22%, having been up over >150-points earlier in the session and logging a fresh record intra-day high (31,223.78). Intel Corporation gained +4.04%, buoyed by a number of analyst upgrades after it was announced a day earlier that Chief Executive Officer (CEO) Bob Swan would step down effective 15 February, with VMWare Inc (+1.76%) CEO Pat Gelsinger to step into the role. The broader S&P500 fell -0.38%, with Information Technology (down -0.95%) leading seven of the eleven primary sectors lower. Energy returned to the top of the primary sector leaderboard with a +3.01% gain. The Nasdaq slipped -0.12% after scaling a fresh record intra-day peak (13,220.16) earlier in the session. Facebook Inc fell -2.38%, while Amazon.com Inc (-1.21%), Netflix Inc (-1.36%), Microsoft Corp (-1.53%) and Apple Inc (-1.51%) all declined by more than >1%. The small capitalisation Russell 2000 index rallied +2.05%. In merger and acquisition (M&A) news, Cisco Systems (down -0.46%) after CNBC reported that it was proposing a higher bit for Acacia Communications
Morgans Senior Analyst Nick Harris provides our latest perspective on Megaport (ASX:MP1) as well as sector favourite NEXTDC (ASX:NXT).
Morgans Analyst Alex Lu details his latest perspective on the Industrials Sector, covering his key picks including Amcor (ASX:AMC), Brambles (ASX:BXB), Invocare (ASX:IVC), Coles (ASX:COL), Woolworths (ASX:WOW), PWR Holdings (ASX:PWH) and Acrow Formwork and Construction Services (ASX:ACF).
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US equity markets edged higher after a choppy session, lifted by a defensive sectors and a rebound for technology stocks and as the latest political theatre unfolded in Washington - Dow dipped -8-points or -0.03%. Johnson & Johnson (JNJ) dipped -0.15% after the New York Times reported that the company unlikely to distribute as many COVID-19 vaccine doses in the spring as previously expected. Separately, the New England Journal of Medicine published trial data that showed Johnson & Johnson’s one-dose coronavirus vaccine is safe and appears to generate a promising immune response in both young and elderly volunteers. The broader S&P500 rose +0.23%, with Utilities (up +1.94%) and Real Estate (+1.39%) leading seven of the eleven primary sectors higher. Materials (down -1.06%), Industrials (-0.86%) and Energy (-0.81%) were the notable underperformers. Chipmaker Intel Corp gained +6.97% after it was announced that Chief Executive Officer (CEO) Bob Swan would step down effective 15 February, with VMWare Inc (down -6.79%) CEO Pat Gelsinger to step into the role. The Nasdaq gained +0.44%, with Apple Inc, Amazon.com Inc, Netflix Inc and Microsoft Corp advancing +1.62%, +1.44%, +2.74% and +0.66%, respectively. The small capitalisation Russell 2000 index fell -0.75% a day after hitting a fresh record closing high.
Morgans Senior Analyst Chris Brown talks about the effects of projected growth in Electric Vehicle production, in particular on the demand for copper. Chris also provides some insight into ASX-listed copper producers and associated wannabees. "With the growth in EVs, there’s likely to be weaker demand growth for oil." Further, "the impact of the Biden Presidency’s approach to fraccing may provide a positive for non-US producers."
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US equity markets little changed as investors weighed a combination of higher rates, possible stimulus and political turmoil - Dow added +60-points or +0.19% at 31,069, just shy of last Friday’s (8 January) record closing high (31,097.97). Goldman Sachs Group Inc (up +2.85%) and JPMorgan Chase & Co (+1.57%) among the leading index performers. The broader S&P500 eked out a +0.04% rise, with the more cyclical sectors (including Energy up +3.5%, Materials +1.35% and Financials +1.06%) the leading performers. Communication Services was the worst performing primary sector with a -1.50% decline. The Nasdaq settled +0.28% higher despite falls for a number of big technology names including Facebook Inc (down -2.24%), Google parent Alphabet Inc (-1.14%) and Microsoft Corp (-1.18%). The small capitalisation Russell 2000 index once again outperformed with a +1.77% rally to a fresh record closing high (2,127.96). In merger and acquisition (M&A) news, Visa Inc (down -1.89%) has abandoned its US$5.3B takeover of Silicon Valley start-up Plaid about two months after the Department of Justice filed an antitrust lawsuit on grounds that it would limit competition in the payments industry.
US equity markets retreated from record highs albeit settled well off their worst levels of the session - Dow fell -89-points or -0.29%, paring an earlier decline of over >300-points. Boeing Co fell -1.48% lower after a 737-500 jet disappeared minutes after taking off from Jakarta, Indonesia’s capital, during heavy rain on Saturday (9 January). The broader S&P500 shed -0.66%, with Consumer Discretionary (down -1.89%), Communication Services (-1.77%) and Real Estate (-1.66%) all down over >1.5% and leading seven of the eleven primary sectors lower. Energy was the best performing primary sector with a +1.62% gain. Tesla Inc fell -7.82% after gaining ~25% last week. However, NIO Inc rallied +6.42% following its annual consumer event on Saturday (9 January) where it launched a new luxury sedan. However, the China-based electric vehicle maker fell over >3% in the extended session it will offer US$1.3B in convertible notes, split into US$650M in notes due 2026 and US$650M due the year after. Net proceeds will go mostly to general corporate purposes and "to further strengthen its cash and balance sheet positions," the China-based electric-car maker said. Gilead Sciences Inc lost -0.84% despite raising sales guidance to reflect revenue from its Covid-19 treatment remdesivir. The technology-centric Nasdaq shed -1.25%. Twitter Inc fell -6.41%, paring an earlier decline of over >12% amid concerns around the company’s engagement in selective censorship that included banning President Trump from the platform. Facebook Inc fell -4.01%. Amazon.com Inc fell -2.15% after Amazon Web Services ended its relationship as the web host for the right-of-centre chat service Parler, effectively blocking the service from the internet. Lululemon Athletica Inc slid -1.04% despite the company saying earnings would grow at the high end of its previous guidance. The small capitalisation Russell 2000 index dipped -0.03%.
Examining the Commodities rally with perspective versus previous cycles and including the most interesting recent news and opportunities. Morgans Equity Strategist, Tom Sartor guides us through the opportunities in this new cycle for 2021.
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Morgans analyst Iain Wilkie discusses the healthcare team's initiation of coverage for Antisense Therapeutics (ASX:ANP) and highlights Neuren Pharmaceuticals (ASX:NEU) as a stock with key catalysts ahead.
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Senior Analyst Derek Jellinek from the Morgans Healthcare team discusses Sonic Healthcare (ASX:SHL) and how the market underestimates the persistence of COVID-19 testing.
US equity markets scaled fresh record highs to close a strong week as hopes of further economic stimulus overshadowed a soft December jobs report - Dow added +57-points or +0.18% to 31,097.97, having fallen over >200-points earlier in the session. Coca-Cola Co (up +2.24%) was the leading Dow performer. The broader S&P500 rose +0.55% to 3,824.68, with Consumer Discretionary (up +1.80%) and Real Estate (+1.09%) leading seven of the eleven primary sectors higher. Materials (down (-0.51%), Industrials (-0.22%) and Financials (-0.19%) - which outperformed their peers and scaled record levels earlier last week – slipped on Friday (8 January). Tesla Inc was the leading S&P500 performer, jumping +7.84% to yet another record closing high (US$880.02). The latest rally came on the back of heavy turnover, with Tesla trading US$62B worth of stock – more than the next ten most active stocks combined. Chinese electric vehicle maker NIO Inc rallied +8.5% ahead of unveiling its new all-electric sedan on Saturday (9 January) at its fourth annual NIO Day. In addition to the car, NIO also unveiled a higher-capacity battery and new swapping stations with more daily capacity. Both the Dow and S&P 500 posted four-day winning streaks. The Nasdaq gained +1.03% to 13,201.98. Apple Inc The small capitalisation Russell 2000 index slipped -0.16%.
Fresh records for US equity markets amid ongoing optimism of further stimulus measures - Dow gained +212-points or +0.69% to 31,041.13, paring an earlier gain of over >300-points but settling above >31,000 for the first time. Boeing Co fell -0.7% in the extended session after agreeing to pay more than >US$2.5B in penalties, including nearly US$1.8B in compensation for airlines, to resolve charges of misleading U.S. aviation authorities in connection with the company’s 737 Max aircraft, the Justice Department said late Thursday . Coca Cola Company (down -1.1%) retreated for a fourth consecutive session after J.P. Morgan became the latest bank to downgrade the beverage giant (to Neutral from Overweight), citing an increased risk that the company loses its current tax dispute with the Internal Revenue Service (IRS). American Express Company lost -0.79% after the Wall Street Journal reported that the investigative arms of three U.S. financial agencies were probing the card issuer’s sales practices. The broader S&P500 rose +1.48% to 3,803.79, settling above >3,800 for the first time. Information Technology (up +2.65%) led nine of the eleven primary sectors higher. Financials rose +1.47%, while the Industrial (+0.55%) and Materials (0.79%) sectors hit new records. DXC Technology surged + 9.3% and was the biggest gainer in the S&P500 on reports the IT-services giant has received takeover interest. Tesla Inc (up +7.94% to US$816.04) logged its tenth consecutive session gain and climbed above US$800 per share for the first time. The latest gain saw Elon Musk become the world’s richest person, overtaking Amazon.com Inc’s (u+0.76%) Jeff Bezos as his net worth crossed US$185B. Tesla’s market capitalisation (~US$774B) also exceeded Facebook Inc’s (~US$765B after the company’s shares rose +2.06%). T-Mobile Inc rose +1.26% and hit a record high (US$135.45) after announcing after the close of the previous session that it added a better-than-expected +1.6M postpaid subscribers in the fourth quarter of 2020 (versus consensus analyst expectations for the addition of +1.5M) despite a competitive few months as wireless companies flooded the market with iPhone 12 promotions. The Nasdaq jumped +2.56% to 13,067.48, climbing above >13,000 for the first time. Chipmakers traded strongly, with Advanced Micro Devices (up +5.35%), NVIDIA Corp (+5.78%) and Lam Research Corp (+3.62%) all gaining over >3%. The Russell 2000 index recorded a fresh record high, rising +1.88% to 2,096.64. It marked the third consecutive rise of 1% or more for the small capitalisation index, the longest such streak since June 2020 , according to Dow Jones Market Data.
Morgans Senior Analyst Nathan Lead details Dalrymple Bay Infrastructure (ASX:DBI) following his initiation of research. DBI is the owner of the Dalrymple Bay Coal Terminal, which provides access to process thermal and metallurgical coal from Central Queensland's Bowen Basin mines via rail, to ports around the world.
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Morgans Senior Analyst Nathan Lead provides his latest update on APA Group (ASX:APA), upgrading his recommendation to a BUY after its recent share price decline.
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Senior Analyst Scott Power from the Morgans Healthcare team speaks with Jon Pilcher, Chief Executive Officer of Neuren Pharmaceuticals (ASX:NEU). Jon explains a number of key catalysts which are expected in 2021.
US equity markets rallied as investors bought financial and industrial stocks on expectations that a Democratic sweep in the Senate run-off elections in Georgia would lead to more fiscal stimulus and infrastructure spending - Dow rallied +438-points or +1.44%, rallying as much as +600-points and hitting a fresh record intra-day high (31,022.65). Caterpillar Inc surged +5.5% to be among the leading index performers along with Goldman Sachs Inc (+5.40%) and JPMorgan Chase & Co (+4.70%). The broader S&P500 rose +0.57% and also touched an intra-day record peak (3,783.04). The Financials sector jumped +4.36% and led seven of the eleven primary sectors higher as US 10 Treasury yields topped >1% for the first time since March last year. Ford Motor Company rose +2.20% despite sales dropping -2.8% in the fourth quarter as sales of the star F-150 was hit by pandemic-related stoppages leading up to the release of the pickup truck’s newest version. Total vehicle sales in the U.S. fell nearly 10% to 542,749 units, with sales of trucks down more than >12% and SUV sales up 4%. The technology-centric Nasdaq lost -0.61% amid concerns over higher tax rates for the information technology sector. Facebook Inc (down -2.83%) and Amazon.com Inc (-2.49%) both fell over >2%. The small capitalisation Russell 2000 index jumped +3.98% to a record closing high of 2,057.92. In merger and acquisition (M&A) news, AmerisourceBergen Corp gained +8.60% after the U.S. drug wholesaler said it would buy Dow component Walgreens Boots Alliance’s (up +4.54%) drug distribution business for US$6.5B to expand in Europe.
US equity markets advanced after a choppy session as investors eyed the outcome of the Senate runoff elections in the battleground state of Georgia, which will determine the balance of power in Washington - Dow added +168-points or +0.55%, with Boeing Co (up +4.5%) the leading index performer. The broader S&P500 rose +0.71%, with the Energy sector (up +4.53%) logging its best single session advance since 4 December and leading ten of the eleven primary sectors higher. Chevron Corp gained +2.7% and Exxon Mobil Corp +4.82%. Real Estate (down -0.08%) was the only primary sector to settle in the red. Tiffany & Co announced after the closing bell that its holiday net sales reached a record high, up 2% thanks in large part to sales in China and online transactions. Costco Wholesale Corp lost -1.16% ahead reporting its December 2020 sales and revenue figures tonight AEST. The Nasdaq gained +0.95%. The small capitalisation Russell 2000 index gained +1.71%.
Scott Power from the Morgans Healthcare team runs through a number of themes for 2021 together with some upcoming catalysts.
Stocks mentioned include Pro Medicus (PME), Nanosonics (NAN), EBOS Group (EBO), Micro-X (MX1), Impedimed (IPD) Volpara Health Technologies (VHT), and ResMed (RMD).
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US equity markets opened 2021 with sharp falls, with the Dow and S&P500 retreating from record highs set on the final session of 2020 - Dow dropped -383-points or -1.25%, paring an earlier decline of as much as -700-points or -2.7%. It marked the first negative start to a new year for the Dow since 2016. Coca-Cola and Boeing were the worst-performing Dow components, falling -3.8% and -5.3%, respectively. The broader S&P500 lost -1.48%. Both the Dow and S&P 500 hit record intra-day highs in opening trading (of 30,674.28 and 3,769.99 respectively) before turning lower. The Nasdaq shed -1.47%. Taiwan Semiconductor Manufacturing Co (TSMC) is reportedly going to announce a 2021 capital expenditure plan of US$22 billion, ~10% higher than previously estimated, at an event on Thursday (7 January), according to Taiwanese media reports. TSMC acts as a manufacturer for major chip companies like Advanced Micro Devices Inc (up +0.6%) and Nvidia Corp (+0.5%) that do not have their own fabrication plants. Companies that supply the materials and make the equipment that manufacturers like TSMC use saw their shares rise, including Lam Research Corp (up +1.2%), KLA Corp (+0.6%), Applied Materials Inc +0.7% and U.S-listed shares of ASML Holding NV (+2.5%). Intel Corp slipped -0.3%. The small capitalisation Russell 2000 index fell -1.47%.