AU Morning Wrap: ASX Rallies 0.7%; James Hardie, Ansell Hit Hard After Results

US stocks rebounded from their worst week since December as traders squared positions ahead of a potentially-explosive January consumer inflation report. Megacap growth stocks fuelled gains.

The Nasdaq spearheaded the rally as bond yields backed off five-week highs. The tech-heavy index slumped 2.41 per cent last week after a succession of Federal Reserve officials warned the cost of borrowing was going higher and likely to stay there all year.

CSL edged up 0.3 per cent even as its profit fell in the first half.

Breville Group dropped 4.1 per cent, despite reporting first-half sales that topped a record first half of $888 million. EBIT climbed 7.6 per cent.

Santos rose 0.7 per cent after receiving a regulatory green light for its Dorado development. It also flagged a $469 million impairment as oil reserves jumped to a record peak.

James Hardie Industries slumped 6.9 per cent after cutting its full year earnings guidance. The company reported a 4.4 per cent decline in global net sales in the third quarter amid "challenging" conditions.

Temple & Webster tumbled 13 per cent. Sales in the online homewares outlet fell 12 per cent in the six months to December and didn't pay a dividend.

Ansell dropped 9 per cent after the company lowered its earnings per share guidance amid falling sales.

The retailer is still targeting an EBITDA margin of 3 per cent to 5 per cent for the full-year, and achieved 3.5 per cent margin for the first-half. Profitability improved in the second quarter.

First-half revenue was $207.1 million, down 12 per cent, and net profit fell 47 per cent to $3.9 million. Inventory was $25.7 million at December 31.

Temple & Webster did not pay a dividend.

EBIT fell 17.6 per cent to $US91.54 million on a reported-basis after the company's exit from Russia in 2022 and unfavourable FX changes.

The company lowered its earnings per share (EPS) guidance for the full year to between US110¢ and US120¢ per share. That compares to an original range of US115¢ to US135¢.

EPS for the first half fell 16.5 per cent to US50.6¢ on a reported-basis. And it declared an interim dividend of US20.10¢ resulting in a payout ratio of 40 per cent.

EBITDA jumped 13.1 per cent to $141.9 million.

First half net profit 7.8 per cent to $US1.6 billion and the biotech giant declared an interim dividend of $US1.07 ($1.55) per share, up 9 per cent.

Underlying profit (NPATA) earnings per share came in at $US3.77 and CSL reaffirmed its NPATA guidance for FY2023 of $2.7 billion to $2.8 billion.

Net income slumped 26 per cent to $US100.1 million and on an adjusted basis was 16 per cent lower to $US129 million in the three-month period to December 31.

Scrap metal recycling company Sims has reported a 60 per cent decline in statutory net profit to $101 million in the six months through December amid challenging market conditions.

Chief executive Alistair Field still said Sims delivered a "resilient performance" during a period of margin compression, driven by "lower steel prices as customer demand weakened".

Dexus will pay a distribution of 28¢ per security, in line with the first half of FY2022.

On a net tangible assets per security basis, it also fell to $12.01 from $12.28.

The retailer is still targeting an EBITDA margin of 3 per cent to 5 per cent for the full-year, and achieved 3.5 per cent margin for the first-half. Profitability improved in the second quarter.

First-half revenue was $207.1 million, down 12 per cent, and net profit fell 47 per cent to $3.9 million. Inventory was $25.7 million at December 31.

Temple & Webster did not pay a dividend.

• Iron ore declined as an increase in port inventories and steel stocks signalled Chinese demand has yet to pick up after Lunar New Year. Steel inventories held by Chinese traders increased by 1.5 million tonnes last week, according to Mysteel. SteelHome data quoted by Reuters indicated portside iron ore inventory rose to the highest since mid-September.

The most-traded May ore on China's Dalian Commodity Exchange dropped 2.2 per cent in daytime trade to 841.50 yuan (US$123.23) a tonne.

• Gold fell to its lowest close in more than five weeks as recent recoveries in the US dollar and US treasury yields continued to sap buying interest. A "hot" inflation report tonight would add to pressure on the yellow metal.

Gold for April delivery settled US$11 or 0.6 per cent lower at US$1,863.50 an ounce. The NYSE Arca Gold Bugs Index dropped 0.58 per cent.

• Oil touched its highest level of the month, building on last week's 8 per cent rally after Russia announce production cuts in retaliation for western price caps. Trading was light ahead of tonight's US CPI.

Brent crude settled 22 US cents or 0.25 per cent ahead at US$86.61 a barrel after trading as high as US$86.95.