AU Morning Wrap: Zip posts $1b loss; Qantas, IDP gain on results

Wall Street Summary
Energy stocks led as Wall Street's main indices rose for the first time in four sessions. Volumes were light ahead of the annual Jackson Hole economic symposium.

The $S&P 500 Index(.SPX.US)$ climbed 12 points or 0.29 per cent. The $Dow Jones Industrial Average(.DJI.US)$ firmed 60 points or 0.18 per cent. The $Nasdaq Composite Index(.IXIC.US)$ gained 50 points or 0.41 per cent.

AU Market Watch
Australia's S&P/ASX 200 is on track to add to its gains of the prior session after US equities snapped a three-day losing streak. ASX futures are up by 0.4%, suggesting the benchmark index will add to yesterday's 0.5% gain. The ASX 200 pared its weekly loss to 1.6% as investors cheered earnings reports by several companies.

Australian shares opened higher this morning. The $S&P/ASX 200(.XJO.AU)$ gained 0.41 per cent to 7026.9 as of 10:18 am.

Stocks to Watch
$IDP Education Ltd(IEL.AU)$: IDP Education's profits have rebounded 159 per cent to $102.8 million alongside the lifting of COVID-19 restrictions. Revenue, compared to FY21, grew 50 per cent to $793.3 million, with first half revenue growing 47 per cent primarily from the 62 per cent growth in International English Language Testing System (IELTS) revenue, the company said.

$South32 Ltd(S32.AU)$: South32 has reported record earnings and cash flow for the year ended June 30 as it capitalised on surging commodity prices. The company delivered underlying earnings of $US2.6 billion and free cash flow from operations of $US2.6 billion. Underlying revenue increased by 45 per cent to $US10.6 billion.

$Zip Co Ltd(ZIP.AU)$: Zip Co has posted a ballooning FY 2022 net loss of $1.1 billion after tax attributable to members and a total loss of $1 billion after adjusting for foreign exchange differences.

$Perpetual Ltd(PPT.AU)$: Investment firm Perpetual has acquired Pendal after long running talks finally ended in an agreement. Pendal shareholders will receive 1 Perpetual share for each 7.5 Pendal shares plus $1.976. That is an implied value of $6.54 on an undisturbed basis, and $6.016 based on Perpetual’s closing price on Wednesday evening.

$Woolworths Group Ltd(WOW.AU)$: Retail giant Woolworths has reported a 282 per cent jump in net profit to $7.9 billion reflecting the gain on the distribution of hotels and drinks arm Endeavour Group. NPAT attributable to equity holders of the parent entity rose 0.7 per cent to $1,514 million.

$Qantas Airways Ltd(QAN.AU)$: Qantas Airways has pledged to buy back $400 million of its own shares after the airline's "restoration of financial strength" and an improved net loss of $860 million including the proceeds of its Mascot land sale. No dividend was declared.

$Appen Ltd(APX.AU)$: Labour hire and data processing business Appen has swung to a net loss of US$9.4 million for the six months to June 30, versus a net profit of $US6.7 million in the prior corresponding half. Revenue for the half year fell 6.9 per cent to $US182.9 million.

$Whitehaven Coal Ltd(WHC.AU)$: Whitehaven Coal's 2022 revenue tripled to $4.92 billion and its net profit surged to a record $1.95 billion from a loss in the previous year. It will pay a final dividend of 40¢ a share fully franked on September 16. The balance sheet is in a $1 billion net cash position.

Ex-dividend: $Anglogold Ashanti Ltd(AGG.AU)$, $Baby Bunting Group Ltd(BBN.AU)$, $Bell Financial Group Ltd(BFG.AU)$, $Codan Ltd(CDA.AU)$, $Dicker Data Ltd(DDR.AU)$, $JB Hi Fi Ltd(JBH.AU)$, $Platinum Capital Ltd(PMC.AU)$, $REA Group Ltd(REA.AU)$, $Reckon Ltd(RKN.AU)$, $VGI GLOBAL FPO(VG1.AU)$

Dividends paid: $AMCIL Ltd(AMH.AU)$, $Aspen Group Ltd(APZ.AU)$, $Goodman Group(GMG.AU)$

Commodities
• Iron ore futures rose 0.22% to US$105.2 a tonne. Futures briefly spiked 4.4% to a session high of US$109.5 on Wednesday. The 64 countries worldwide under the World Steel Association's monthly survey posted a -5.4% year-on-year decline in their crude steel output to total 1.1bn tonnes over January to July.

• Oil continues to catch bids as the pendulum swings back in favour of the tight supply and the lack of spare production capacity narrative. "Oil's outlook still looks positive here as shale is not taking off, ESG constraints remain, and strong demand for refined product exports," said Oanda senior market analyst, Ed Moya.

"US stockpiles will likely continue to decline over the coming weeks over strong export demand. Oil prices could surge over the next few weeks if OPEC+ is forced to cut output and if Iran nuclear deal talks falter again. The Saudis don't want to see oil prices disconnected from market fundamentals and that should suggest this oil market will remain very tight," he added.

• Gold firmed up even against a slightly higher US Dollar and Treasury yields. The yellow metal is in no man's land as it awaits further direction post Jackson Hole.