AU Morning Wrap: ASX dips in early trade; CBA profit jumps

Wall Street Summary
Investors continued to reduce their exposure after the second revenue warning from a major chipmaker in two days underlined headwinds facing corporate America. Bond yields rallied ahead of tonight's July CPI.

The $S&P 500 Index (.SPX.US)$ declined 18 points or 0.42 per cent. The $Dow Jones Industrial Average (.DJI.US)$ eased 58 points or 0.13 per cent. The $Nasdaq Composite Index (.IXIC.US)$ fell 151 points or 1.19 per cent.

AU Market Watch
Australia's S&P/ASX 200 is on track to pull back at the open after tech stocks led U.S. indexes lower. ASX futures are down by 0.6%, suggesting the benchmark index could struggle to extend its three-day winning streak. The ASX 200 edged 0.1% higher on Tuesday.

Australian shares opened lower this morning. The $S&P/ASX 200 (.XJO.AU)$ lost 0.59 per cent to 6988.1 as of 10:19 am.

Stocks to Watch
$CommBank (CBA.AU)$: Commonwealth Bank has reported an 11 per cent jump in full-year cash profit to $9.595 billion on the back of strong home lending and lower bad debts even as interest rates begin to rise.

$Graincorp Ltd (GNC.AU)$: GrainCorp has upgraded its earnings guidance for the 12 months ending September 30, 2022, amid strong expectations for the east coast Australian crop in 2022/23.

$Mayne Pharma Group Ltd (MYX.AU)$: Mayne Pharma has entered into a binding agreement with Catalent to sell Metrics Contract Services (Metrics) to biopharma group Catalent for $US475 million ($679 million) in cash. Completion of the sale is expected by year-end. Mayne expects to receive $US445 million in net proceeds after transaction costs.

$Centuria Capital Group (CNI.AU)$: Real estate funds manager posted operating profit of $114.5 million in FY22 with a distribution per share of 11¢, up 10 per cent from the previous year. It expects to deliver 11.6¢ in DPS in FY23.

Dividends paid: $Metcash Ltd (MTS.AU)$, $Praemium Ltd (PPS.AU)$

Commodities
• Iron ore futures fell -1.5% to $109 a tonne. China's Jan-July steel exports and iron ore imports fell -7% and -3.4% year-on-year respectively.
• Oil prices rallied after Russian oil exports were halted to Eastern Europe.
• Gold inched closer towards US$1,800 amid a softening dollar, safe haven flows and a potential turning point for inflation.

Source: Dow Jones Newswires, AFR