AU Morning Wrap: ASX Dips; ANZ Up Despite ACCC's Suncorp Rejection
G'day, mooers! Check out the latest news on today's stock market!
• Stocks fall as bond yields march higher
• Block, ResMed plunge, ANZ gains
• Stocks to watch: Block, ANZ, Suncorp
- Moomoo News AU
Wall Street Summary
U.S. stocks edged lower Thursday, extending their recent slide as a jump in bond yields weighed on the market's appetite for risk.
The $S&P 500 Index (.SPX.US)$ fell for a third consecutive day, bringing its losses in the first three days of August to 1.9%. Investors said it made sense that stocks might pull back after a rally that catapulted the broad U.S. index up nearly 20% in the first seven months of the year.
The S&P 500 dropped 0.3%, while the $Dow Jones Industrial Average (.DJI.US)$ declined 0.2%, or 66.63 points. The tech-heavy $Nasdaq Composite Index (.IXIC.US)$ slipped 0.1%.
AU Market Watch
The $S&P/ASX 200 (.XJO.AU)$ opened flat in early trade with gains in energy offset by losses in health care.
Shares in Afterpay parent Block tumbled 11 per cent, tracking a similar move on Wall Street despite results beating forecasts with investors seemingly pessimistic about the Australian market compared to others.
ANZ Bank shares rose 0.7 per cent, defying a major rebuff by the competition regulator which rejected its planned $4.9 billion ANZ/Suncorp bank merger. ANZ remains hopeful of a deal.
Suncorp stock fell 1.5 per cent.
ResMed plunged 11 per cent despite reporting an 18 per cent increase in revenue.
Stocks to Watch
$ResMed Inc (RMD.AU)$: Sleep and respiratory device maker ResMed has reported an 18 per cent increase in revenue to $US4.2 billion ($6.41 billion) for the full financial year, as chief executive Mick Farrell outlined plans to launch artificial intelligence products for patients and doctors.
ResMed reported a full-year net income of $US897 million, up 15 per cent, and gross margin declined by 80 basis points to 55.8 per cent thanks to higher component costs, warranty increases and freight costs.
The San Diego-based company reported shares are up 11 per cent so far this year, last closing at $33.85.
$Fonterra Shareholders Fund (FSF.AU)$: Fonterra Co-operative Group reduced its 2023/24 season forecast farmgate milk price range from $NZ7.25-$NZ8.75 per kgMS, with a midpoint of $NZ8 per kgMS, to $NZ6.25 - $NZ7.75 per kgMS, with a midpoint of $7 per kgMS.
Fonterra CEO Miles Hurrell says the revised forecast reflects continuing reduced import demand for whole milk powder from greater China.
$Block Inc (SQ2.AU)$: Shares in Afterpay parent Block slid in after-market trading despite beating analyst expectations on revenue and raising earnings forecasts.
Block chief financial officer Amrita Ahuja called out Australia as being particularly challenged relative to other markets.
$Atlassian (TEAM.US)$: Atlassian is optimistic about demand for cloud services through the fiscal year, forecasting that cloud revenue growth year-over-year is expected to be in the range of 25 per cent to 30 per cent.
That's in keeping with a first-quarter forecast for cloud revenue growth to be in the range of 25 per cent to 27 per cent.
Atlassian today reported that cloud revenue in the three months ended June 30 rose 30 per cent to $US563.2 million from $US433.9 million in the year-ago period.
$Coronado Global Resources Inc (CRN.AU)$: Coronado Global Resources has completed the refinancing of a debt facility. It has borrowed $US150 million ($229 million) of debt maturing in August 2026. The previous transaction was for $US100 million and was due in May 2024.
$Magellan Financial Group Ltd (MFG.AU)$: Magellan Funds Management had net outflows of $400 million last month, the vast majority, or $300 million, from retail investors. The balance came from the institutional side. Magellan's total funds dipped to $39.2 billion, from $39.7 billion in June.
$ANZ Group Holdings Ltd (ANZ.AU)$: The Australian Competition and Consumer Commission has rejected ANZ's proposed takeover of $Suncorp Group Ltd (SUN.AU)$'s banking arm, saying this morning that it was not satisfied the deal would not substantially reduce competition.
"We are not satisfied that the acquisition is not likely to substantially lessen competition in the supply of home loans nationally, small to medium enterprise banking in Queensland, and agribusiness banking in Queensland," ACCC deputy chairman Mick Keogh said.
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Source: Dow Jones Newswires, AFR
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