AU Morning Wrap: ASX Inches Up, Telix and Allkem Rally
G'day, mooers! Check out the latest news on today's stock market!
• US bank earnings disappoint
• ASX 200 Index edged up 0.06 per cent in early trade with energy leading gains
• Stocks to watch: Telix Pharmaceuticals, JB Hi-Fi, Allkem
- Moomoo News AU
• US bank earnings disappoint
• ASX 200 Index edged up 0.06 per cent in early trade with energy leading gains
• Stocks to watch: Telix Pharmaceuticals, JB Hi-Fi, Allkem
- Moomoo News AU
Wall Street Summary
US stocks mostly declined as earnings dictated direction on the major indices following the Martin Luther King Jr public holiday. A mixed batch of bank earnings wrapped up with a well-received update from Morgan Stanley and a big miss from Goldman Sachs.
The $S&P 500 Index(.SPX.US$ traded both sides of break-even before finishing eight points or 0.2 per cent lower. The $Dow Jones Industrial Average(.DJI.US$ shed 392 points or 1.14 per cent. The $Nasdaq Composite Index(.IXIC.US$ advanced 16 points or 0.14 per cent.
A 6.45 per cent plunge in $Goldman Sachs(GS.US$ accounted for roughly half the Dow's decline. The bank slumped as its Q4 profit more than halved from a year earlier and earnings fell significantly short of analysts’ expectations. The bank warned it was seeing "early signs of consumer credit deterioration" as clients struggled with rising interest rates and higher prices.
AU Market Watch
Telix Pharmaceuticals was the performer, up 6.1 per cent after its revenues surged in the third quarter of 2022.
JB Hi-Fi rallied 2.2 per cent following strong results and UBS upgrading its price target.
Allkem jumped 1 per cent after posting record lithium production.
Major mining companies were mixed with Rio Tinto up 0.4 per cent and BHP down 0.8 pe cent. Fortescue Metals gained 0.2 per cent.
Stocks to Watch
$JB Hi Fi Ltd(JBH.AU$: UBS increased the 12-month price target of JB Hi-Fi to $46 per share from $44 and kept a neutral rating.
It estimated higher sales and gross margins would lift earnings per share 14 per cent in fiscal year 2023 and 5 per cent the following year.
UBS said the company was continuing to perform well and underscored near-term growth catalysts.
Revenues of oncology company Telix Pharmaceuticals have surged 41 per cent to $78.2 million in the third quarter of 2022, as US sales jumped.
The company posted $1.6 million in net cash flows, the first positive quarter from operations.
$EML Payments Ltd(EML.AU$: EML Payments has appointed Jonathan Gatt as interim chief financial officer following the departure of Robert Shore who was in the role for six years.
$Allkem Ltd(AKE.AU$: Lithium mining company Allkem posted record production in the December quarter at its Olaroz site, taking revenues to a historical high.
Allkem reported group revenues for the quarter of $US265 million ($379 million) with a gross cash margin of $US218 million.
The weighted average price for third-party sales of lithium carbonate products in Q3 FY23 is expected to be in line with the previous quarter.
Commodities
• Iron ore fell for a second day, pressured by weak Chinese economic growth. Data yesterday showed Chinese property investment declined 10 per cent last year, undermining demand for steel and inputs.
The most-traded May ore on China's Dalian Commodity Exchange ended daytime trade 1.3 per cent lower at 835 yuan (US$123.27) a tonne.
• Oil caught an uplift from news that China's economy weathered last month's reopening Covid wave better than expected. Industrial production, retail sales and GDP data all came in stronger than economists predicted.
Brent crude settled US$1.46 or 1.73 per cent ahead at US$85.92 a barrel.
• Gold fell for the first time in four sessions after reaching its highest level since April. The decline came as the US dollar rebounded.
Gold for February delivery settled US$11.80 or 0.6 per cent lower at US$1,909.90 an ounce. The NYSE Arca Gold Bugs Index slumped 3.49 per cent.
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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