AU Morning Wrap: Mining and tech shares lift ASX, Pinnacle tumbles
G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 snaps five-day losing streak, oil spirals lower
• Mining and tech shares lift ASX
• Stocks to watch: Pinnacle, Nitro Software, Warrego
- Moomoo News AU
Wall Street Summary
US stocks rebounded as an increase in claims for unemployment benefits sharpened hopes for a smaller interest rate hike when the Federal Reserve meets next week.
US stocks rebounded as an increase in claims for unemployment benefits sharpened hopes for a smaller interest rate hike when the Federal Reserve meets next week.
The $S&P 500 Index (.SPX.US)$ bounced 30 points or 0.75 per cent. The $Dow Jones Industrial Average (.DJI.US)$ gained 184 points or 0.55 per cent. The $Nasdaq Composite Index (.IXIC.US)$ added 123 points or 1.13 per cent.
The number of Americans collecting jobless benefits rose to the highest since February in what some commentators saw as an indication of a slowing economy. Continuing claims increased by 62,000 last week to 1.67 million. First-time claims for benefits inched up by 4,000 to 230,000.
AU Market Watch
$S&P/ASX 200 (.XJO.AU)$ rose 0.44 per cent in early trade, materials and tech stocks led gains.
Warrego fell 3.3 per cent. It unanimously recommended shareholders to accept a superior bid from Hancock.
Nitro Software stock leapt 2.4 per cent after receiving a sweetened bid from suitor Potentia.
Pinnacle Investment Management Group tumbled 10.2 per cent after warning its performance fee income would sharply drop in the first half of the financial year.
Stocks to Watch
$Healius Ltd (HLS.AU)$: Healius has promoted current CFO and COO Maxine Jaquet as its new CEO following the stepping down of Malcolm Parmenter.
The company has entered into a binding agreement to sell Montserrat Day Hospitals, an operator of 11 specialist short-stay hospitals and haematology/oncology clinics to Nexus Hospitals for $138.6 million.
$Beach Energy Ltd (BPT.AU)$: Beach Energy has surrendered in the takeover battle for $Warrego Energy Ltd (WGO.AU)$ and opted to focus instead on developing its existing onshore gas assets in the Perth Basin.
Beach raising the white flag means Gina Rinehart's Hancock Prospecting is poised to secure Warrego unless another bidder emerges.
$McPherson's Ltd (MCP.AU)$: The corporate regulator has commenced Federal proceedings against health beauty and wellness company McPherson's for breaching continuous disclosure obligations and engaging in misleading and deceptive conduct when it raised capital in October 2020.
McPherson's issued a cleansing notice on November 2nd, 2020 only to revise its 2021 first-half guidance and withdraw its guidance for the full year on 1 December 2020 prompting a 34.5 per cent slide in its share price.
$Nitro Software Ltd (NTO.AU)$: Nitro Software said it would consider Potentia's revised takeover offer at $2 a share and recommended its shareholders to take no action until the review.
$Rio Tinto Ltd (RIO.AU)$: Rio Tinto chief executive Jakob Stausholm has contacted $Fortescue Ltd (FMG.AU)$ chairman Andrew Forrest to see if the two mining heavyweights can find common ground on green hydrogen and its potential to replace fossil fuels.
Rio and Fortescue, who mine iron ore side-by-side in Western Australia, are taking a collaborative approach to reducing their carbon footprint, with both companies looking to build large-scale solar and wind farms near their WA mines.
$Pinnacle Investment Management Group Ltd (PNI.AU)$: Pinnacle Investment Management Group expects its net share of performance fees, after tax, to drop below $1 million, from $6.4 million a year ago, but should bounce back in the second half of its financial year.
Ex-dividend: None
Dividends Paid: $CSR Ltd (CSR.AU)$, $Nufarm Ltd (NUF.AU)$, $Tamawood Ltd (TWD.AU)$, $Beacon Minerals Ltd (BCN.AU)$, $PTB Group Ltd (PTB.AU)$, $TerraCom Ltd (TER.AU)$
Commodities
• Iron ore futures rose 0.3% to US$109.65 a tonne.
• Oil prices reversed gains of 3-4% to close more than 1.0% lower.
"Crude prices spiked higher after the Keystone Pipeline was shut after a leak in Nebraska … Today's headlines appear to be only short-term negative for supplies but don't change anything with the deteriorating crude demand outlook." - Oanda senior market analyst, Ed Moya
• Gold prices edged higher as it braces for a big week of upcoming inflation data points and the Fed's interest rate decision.
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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