AU Morning Wrap: Webjet jumps 9% on half-year result; Seek, Altium confirm guidance

Wall Street Summary
US stocks fell as downbeat updates from Target and Micron undermined confidence in the near-term outlook for earnings, while unexpectedly strong retail sales data kept the pressure on the Federal Reserve to raise interest rates.

Hopes for a strong Christmas for retailers were dented by a gloomy outlook from Target. Shares in the big-box retailer tumbled 13.12 per cent after it warned "dramatic changes" in consumer spending pointed to a decline in holiday spending.

Shares in the ASX are down 2.1 per cent after it issued a mea culpa over its failed CHESS replacement project and flagged that it might abandon the project altogether.

Lithium miner Pilbara Minerals is up 2.2 per cent after it reported strong lithium spodumene prices overnight.

Travel operator Webjet has jumped 9 per cent on its half-year result.

For the period it swung to a net profit of $4 million on revenue up 216 per cent to $175.8 million. It said total transaction value increased 223 per cent on the prior corresponding half to $2.1 billion.

It had $228.4 million of total borrowings as at the period end, versus cash on hand of $504 million.

Shares in the producer have more than doubled in the past 12 months and last closed at $4.92.

It said it expects to report an EBITDA margin between 35 per cent and 37 per cent in financial 2022.

Adjusted net profit is expected to finish between $250 million and $270 million.

Group EBITDA fell 37.3 per cent to $621 million, and the EBITDA margin contracted to 22.8 per cent from 32.1 per cent. It declined to issue full-year guidance.

ASX is forecasting the decision to pause the CHESS replacement project will have no material impact on its opex range of 10-12 per cent.

It earlier today announced it will write off $245 million to $255 million pre-tax in costs associated with the decision to pause the CHESS replacement project, which has dragged on for seven years.

China's crude steel output fell at a slower pace, down 2.2% on year to 860.6m tonnes over Jan-Oct compared to a 3.4% decline for the first nine months of the year, according to the country's National Bureau of Statistics.

• Oil prices eased after NATO said the missile that hit Poland wasn't a Russian attack and likely to have come from Ukraine defences.

The US Energy Information Energy reported an inventory decline of 5.4m barrels for the week ended 11 November compared to a 5.6m barrel build a week ago.

"Yesterday's bullish triggers for oil prices were quickly undone today. Oil prices declined after flows from the Druzhba pipeline resumed and preliminary analysis of the missile that killed two in Poland was likely an errant missile fired by Ukraine's defence system." - Oanda senior market analyst, Ed Moya

• Gold prices are beginning to stall after a massive rally in the last eight sessions.

"Gold will eventually act like a safe-haven, but right now its primary catalyst is the Fed's rate hike path …​Today's hawkish round of Fed speak put some pressure on bullion as policymakers push back on traders who are making calls for a pivot." - Moya

Source: Dow Jones Newswires, AFR