AU Morning Wrap: ASX Slips; Macquarie Shares Tumble

Moomoo News AU wrote a column · Jul 27, 2023 08:33

G'day, mooers! Check out the latest news on today's stock market!
• Dow notches longest winning streak since 1987
• ASX falls; Macquarie tumbles; Rio drops
• Stocks to watch: Fortescue Metals, BHP, Macquarie
- Moomoo News AU

AU Morning Wrap: ASX Slips; Macquarie Shares Tumble

Wall Street Summary

The last time the $Dow Jones Industrial Average (.DJI.US)$ climbed for 13 straight sessions, Paul Volcker was finishing his inflation fight at the Federal Reserve. Today was Jerome Powell's turn.

The blue-chip index on Wednesday notched a 13th consecutive advance for the first time since January 1987, rising as the Fed increased interest rates to a 22-year high.

The Dow wavered between small gains and losses throughout the day, eking out a 0.2% increase after Powell, the current Fed chair, suggested the central bank might consider pausing rate hikes at its September meeting. The $S&P 500 Index (.SPX.US)$ edged less than 0.1% lower, while the tech-heavy $Nasdaq Composite Index (.IXIC.US)$ fell 0.1%.

AU Market Watch

The Australian sharemarket slipped at market open following Wall Street's muted response to the US Federal Reserve's decision to lift the cash rate.

The benchmark $S&P/ASX 200 (.XJO.AU)$ index fell 0.1 per cent, or 8.1 points to 7393.9 with mining stocks recording the most losses.

The material's sector was dragged lower by the iron ore giants. $Rio Tinto Ltd (RIO.AU)$ shares dropped 2.5 per cent after reporting that its half-year profit slumped by 34 per cent on the back of weaker commodity prices with the $US5.7 billion ($8.4 billion) underlying result and the dividend falling short of analyst expectations.

Fortescue Metals fell 0.5 per cent even as it beat analysts expectations and delivering to the top end of its target for the year to June 30.

$BHP Group Ltd (BHP.AU)$ shares dropped 0.7 per cent.

Macquarie Group tumbled 4.3 per cent. The investment bank cited weaker trading conditions for delivering a net profit in first quarter financial 2024 that was substantially down on the prior corresponding period.

Stocks to Watch

$Magellan Financial Group Ltd (MFG.AU)$: Macquarie Group has cited weaker trading conditions for delivering first quarter financial 2024 net profit that was substantially down on the first quarter of the 2023 financial year.

Macquarie recorded a capital surplus of $10.8 billion at 30 June 2023.

$Medibank Pvt Ltd (MPL.AU)$: Health insurer Medibank has made some minor tweaks to its executive team this morning ahead of its results next month.

The company, which saw its systems breached by a hacker last year, resulting in thousands of medical records being leaked onto the dark web, has moved Rod Deeming to look after the digital and ventures footprint and created a new data and technology role.

Kylie Williamson will hold the latter in the interim while a full-time appointment is sought.

$Allkem Ltd (AKE.AU)$: Lithium explorer Allkem has recorded a revenue of $US334 million ($494.3 million), according to its June quarter results.

Cash cost of goods sold for the quarter was US$5882 a tonne, up 19 per cent from prior quarter. Allkem said it was as a result of the "the elimination of export incentives coming into full effect during the quarter. "

$Fortescue Ltd (FMG.AU)$: Iron ore giant Fortescue says iron ore shipments reached the top end of guidance, according to its June quarter results.

Iron ore shipments were recorded at 48.9 million tonnes in the fourth quarter of financial 2023 and contributed to shipments of 192 million tonnes in the year to June.

The miner had told investors to expect full-year iron ore shipments to be between 187 million and 192 million tonnes.

$St Barbara Ltd (SBM.AU)$: Gold miner St Barbara says production will reach the upper end of guidance of 260,368 ounces for financial 2023.

The miner produced 77,125 ounces of gold in the June quarter at an all in sustaining cost of $2145 per ounce.

$Karoon Energy Ltd (KAR.AU)$: Karoon Energy says its June quarter oil production decreased 15 per cent to 1.68 million barrels due to a six week shut in at the company's Bauna operation in Brazil.

The oil explorer said while sales revenue of $US122.7 million ($181.6 million) for the June quarter was lower than the prior quarter, revenue for financial 2023 increased 47 per cent to $US566.5 million when compared to 2022.

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