AU Morning Wrap: ASX Slips, Dragged Lower by Tech Stocks
G'day, mooers! Check out the latest news on today's stock market!
• S&P 500's climb toward bull market thwarted by Canada rate move
• ASX slips, dragged lower by tech stocks
• Stocks to watch: WiseTech, Enero, Resmed
- Moomoo News AU
Wall Street Summary
Stocks fell Wednesday after a surprise rate hike from the Bank of Canada took the air out of a Tuesday rally.
Major stock indexes came under pressure as the trading day wore on, a day after the $S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ set fresh highs for the year. The benchmark S&P 500 shed 0.4%. The tech-heavy Nasdaq lost 1.3%, while the $Dow Jones Industrial Average (.DJI.US)$ gained 0.3%.
The S&P 500 briefly touched bull-market territory Wednesday morning, but it didn't last.
Stocks' declines were sparked by the Bank of Canada's unexpected decision to raise interest rates to a 22-year high after a four-month pause in tightening. The central bank cited a strong labor market and consumer spending as risks to inflation's path to its 2% target.
AU Market Watch
The $S&P/ASX 200 (.XJO.AU)$ edged lower 0.1 per cent, or 7.7 points to 7110.3 at market open, weighed down by losses in the consumer discretionary and technology sectors.
The sector dropped 1.9 per cent amid a weakness in technology stocks in New York. $WiseTech Global Ltd (WTC.AU)$ shares fell 1.5 per cent. $Xero Ltd (XRO.AU)$ lost 2.2 per cent. $Nextdc Ltd (NXT.AU)$ retreated 2.2 per cent.
$Wesfarmers Ltd (WES.AU)$ shares dropped 1.1 per cent. $Aristocrat Leisure Ltd (ALL.AU)$ fell 1.1 per cent. $Domino's Pizza Enterprises Ltd (DMP.AU)$ lost 2.6 per cent. $Premier Investments Ltd (PMV.AU)$ tumbled 3.9 per cent.
Healthcare stocks also recorded losses. $CSL Ltd (CSL.AU)$ shares dropped 1 per cent. $ResMed Inc (RMD.AU)$ fell 3.3 per cent.
$Enero Group Ltd (EGG.AU)$ shares dropped 3.5 per cent despite reporting that it expects revenue in FY23 to grow up to 26 per cent, to a range between $241 million and $244 million.
Stocks to Watch
$Air New Zealand Ltd (AIZ.AU)$: Air New Zealand has upgraded its earnings guidance for FY23 to $NZ580 million ($526.4 million) in its latest trading update.
The company's previous guidance range was $NZ510 million to $NZ560 million.
It previously indicated that in the next five years the airline will invest $NZ3.5 billion in aircraft and retrofitting.
$Enero Group Ltd (EGG.AU)$: Marketing company Enero Group says it expects revenue in FY23 to grow up to 26 per cent, to a range between $241 million and $244 million.
It has forecast earnings to increase about 22 per cent, between $78 million and $81 million.
Infrastructure investor Infratil says it has completed the underwritten placement of its planned NZ$850 million ($770.8 million) equity raising.
The New-Zealand based firm announced that the placement raised a total of $NZ750 million at a price of $9.20 a share.
$AMP Ltd (AMP.AU)$: AMP has announced that its entered into an agreement to sell its self-managed superannuation fund (SMSF) administration and software business, SuperConcepts to Pemba Capital Partners.
The financial services provider is set to receive an upfront cash consideration of $8 million. It's expecting the transaction to result in a loss on sale of $7 million.
$Zip Co Ltd (ZIP.AU)$: Buy now pay later provider Zip Co has entered into a trading halt.
The company says the trading halt was requested to undertake capital raising.
Dividends Paid: None
Listing: None
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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