AU Morning Wrap: ASX jumps 1% as tech surges

Wall Street Summary
US stocks soared as earnings reports suggested American companies were coping well with rising inflation and supply-chain issues. Buying accelerated as the three major averages climbed above their 50-day moving averages for the first time since April.

The $S&P 500 Index (.SPX.US)$ rallied 106 points or 2.76 per cent to its highest finish since June 9. The benchmark closed above 3,900 for the first time since late June at 3,937.

The $Dow Jones Industrial Average (.DJI.US)$ gained 754 points or 2.43 per cent. The $Nasdaq Composite Index (.IXIC.US)$ put on 353 points or 3.11 per cent.

AU Market Watch
Australia's S&P/ASX 200 is set to open strongly after U.S. stocks reacted positively to the latest round of company earnings reports. ASX futures are up by 1.2%, pointing to a bounce from Tuesday's 0.6% slide, which was led by health and tech stocks.

Australian shares opened higher this morning. The $S&P/ASX 200 (.XJO.AU)$ gained 1.07 per cent to 6721 as of 10:13 am.

Stocks to Watch
$Allkem Ltd (AKE.AU)$: Lithium producer Allkem says it earned record revenue of $US337 million in the June quarter on a gross operating cash margin of 67 per cent. It achieved an average lithium price of $US41,033 a tonne free on board (FOB) during the June quarter.

$BKI Investment Co Ltd (BKI.AU)$: Listed investment company BKI has reported record full-year earnings boosted by higher dividend payouts from its major holdings including BHP, Rio Tinto and Commonwealth Bank. Dividends from New Hope, Woodside Energy, National Australia Bank and Macquarie Group also contributed.

$Atlas Arteria Ltd (ALX.AU)$: Toll-road operator Altas Arteria has reported higher traffic across its assets in the second quarter, boosted by strong performance on France’s Autoroutes Paris-Rhin-Rhone (APRR).

$Megaport Ltd (MP1.AU)$: Telco infrastructure firm Megaport has reported total revenue of $30.6 million for Q4 2022, up 10 per cent on the previous quarter.

Ex-dividend: $Alternative Investment Trust (AIQ.AU)$, $Katana Capital Ltd (KAT.AU)$, $Plato Income Maximiser Ltd (PL8.AU)$

Dividends paid: $Ophir High Conviction Fund (OPH.AU)$, $Vanguard All-World ex-US Shares ETF (VEU.AU)$

Commodities
• Iron ore futures erased early gains, down -2.1% to US$103.1 on Tuesday.
• Oil prices briefly tumbled after a Bank of America fund manager survey showed global growth optimism was at an all-time low. Still, the supply side remains extremely tight and prices were quick to rebound.
• Gold prices continue to hover around US$1,700.

Source: Dow Jones Newswires, AFR