AU Morning Wrap: Tech, Healthcare Advance; CSL, Pro Medicus Hit 52-Week Highs
G'day, mooers! Check out the latest news on today's stock market!
• Nasdaq jumps as Meta shares pop 23%
• ASX Tech, healthcare advance
• Stocks to watch: IAG, Whitehaven, New Hope
- Moomoo News AU
Wall Street Summary
A sharply divided market saw a huge surge in Meta lift the S&P 500 and Nasdaq to multi-month highs while the Dow (which does not have Meta as a component) was dragged lower by healthcare stocks.
The $S&P 500 Index (.SPX.US)$ finished 61 points or 1.47 per cent ahead after rising to its highest since August. The $Nasdaq Composite Index (.IXIC.US)$ jumped 385 points or 3.25 per cent to its highest since September ahead of after-bell earnings from Apple, Amazon and Google parent Alphabet.
The $Dow Jones Industrial Average (.DJI.US)$ shed 39 points or 0.11 per cent following a poorly-received trading update from Merck and a sharp drop in UnitedHealth.
Tech stocks soared as Meta's trading update added to confidence after the Federal Reserve signalled the cost of borrowing may be nearing a top. $Meta Platforms (META.US)$ shares jumped 23.28 per cent after the company slashed spending and supercharged a stock buyback. CEO Mark Zuckerberg said 2023 would be a "Year of Efficiency". The price surge was the share's largest in a decade.
AU Market Watch
The $S&P/ASX 200 (.XJO.AU)$ is up 0.03 per cent in early trade as falls among the miners and energy plays are offset by gains in the interest rate sensitive tech and real estate sectors.
Shares in insurance group IAG are down 5.7 per cent after it said it expects a net profit of $468 million in the first half of financial 2023.
Coal miners are also under pressure again today as coal prices fall, with Whitehaven and New Hope both lower.
In the tech sector, Pro Medicus hit a new 52-week high of $68.13.
Stocks to Watch
$Openpay Group Ltd (OPY.AU)$: Another ASX buy now, pay later has gone into suspension amid a huge crash in the interest-free lending sector as central banks lift benchmark borrowing rates.
Openpay said the halt is related to talks around its financing arrangements. The stock last traded at 20¢.
$Insurance Australia Group Ltd (IAG.AU)$: Underwriter IAG Group said it expects gross written premiums to climb 7.5 per cent over the six months to December 31, or 9.8 per cent on an underlying basis adjusting for the impact of currencies and portfolio exits.
It said it expects net profit of $468 million over the period including the benefit of a post-tax $252 million reduction in the business interruption provision, versus $173 million in the prior corresponding half.
Commodities
• Iron ore fell to a two-week low after a Chinese government official warned of challenges to exports as global demand wilts under a possible recession. The official said the trading environment was "extremely severe", according to Reuters.
The most-traded May ore on the Dalian Commodity Exchange fell 3.3 per cent in daytime trade to 841.50 yuan (US$125.29) a tonne.
• Gold lost its grip on an intraday nine-month high as the US dollar rebounded. Gold for April delivery traded as high as US$1,975.20 before settling US$12 or 0.6 per cent lower at US$1,930.80 an ounce. The NYSE Arca Gold Bugs Index slumped 3.1 per cent.
• Oil fell for a fifth night following weak demand signals earlier in the week after an unexpected build-up in US inventories. The Energy Information Administration reported a 4.1 million barrel increase, well ahead of analysts' predictions of a gain of 300,000 barrels.
"The big build in U.S. inventory data hung like an anvil around the market neck," Stephen Innes, managing partner at SPI Asset Management, said.
Brent crude settled 67 US cents or 0.8 per cent lower at US$82.17 a barrel. The close was the contract’s weakest since January 10.
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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