AU Morning Wrap | ASX 200 Drops Amid Weak Wall Street Lead Ahead of Nvidia Earnings; Qantas and MinRes Post Results
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• Nvidia Beating Earnings Was Not Enough for a Post Market Surge
• ASX Falls as Nvidia drops; Qantas, MinRes Post Results
• Stocks to watch: MIN, QAN, WPR, S32, etc.
Wall Street Summary
The market fell Wednesday ahead of Nvidia earnings, and Nvidia fell after hours despite beating estimates: The firm's forward projections were below the highest of estimates. Traders are waking up to a more complicated market on Thursday.Index prices reflected traders holding their breath. The $S&P 500 Index (.SPX.US)$ traded -0.60%, the $Dow Jones Industrial Average (.DJI.US)$ fell 0.39%, and the $Nasdaq Composite Index (.IXIC.US)$ shed 1.12%.
Every sector on the S&P 500 was in the green Friday after the Federal Reserve rate cut news, but Fed President Jerome Powell did not specify the timeline of these rate cuts. Still, he said he was confident the economy was on the way to 2% inflation. "The time has come to adjust, and the direction is clear," Powell said. This week in macro, investors can look forward to more macroeconomic data that might inform how the FOMC will decide on rate cuts. CB Consumer Confidence came out Tuesday morning, showing a jump in expectations. Crude Oil Inventories came out Wednesday morning, showing a cut of 800,000 barrels compared to last week's drop of 4 million.Investors await a speech from Atlanta Fed President Raphael Bostic after 6 p.m. ET. Continuing and Initial Jobless claims will drop on Thursday alongside updated GDP numbers for the second quarter.Friday, we will see the release of the July person Consumption Expenditure index (PCE), the Fed's favorite inflation measure. Last time, the PCE came in at 2.6% year over year, the lowest since 2021. Michigan consumer expectations and confidence will also drop on Friday.
AU Market Watch
Australian shares decline at the open following a weak lead from Wall Street ahead of Nvidia's earnings.
Nvidia shares dropped over 7% in after-hours trading due to lower-than-expected third-quarter guidance, despite a 15% increase in second-quarter revenue to $30 billion.
Oil prices fell 1% amid a smaller-than-expected draw in US crude stockpiles and concerns over Chinese demand. Industrial metals also dropped.
US bond yields rose, pushing Australian bond yields higher, with three-year bonds at 3.55% and 10-year returns at 3.93%. The Australian dollar eased to US67.83¢ after briefly reaching an eight-month high of US68.12¢.
Crypto
As of latest data, $Bitcoin (BTC.CC)$ is priced at $59,232, up by 0.17% in the past 24 hours, while $Ethereum (ETH.CC)$ is priced at $2,532, up by 4.11% in the past 24 hours.
Stocks to Watch
$Mineral Resources Ltd (MIN.AU)$ will not pay a final dividend for the first time in over a decade, aiming to conserve cash amid a prolonged downturn in lithium prices and concerns about the viability of high-cost iron ore operations.
$Qantas Airways Ltd (QAN.AU)$ posted earnings in line with consensus and indicated that profits would continue to decline as travel demand decreases from record levels. The airline reported $2.08 billion in underlying earnings for the year, down $387 million from the previous year.
$Waypoint REIT Ltd (WPR.AU)$ reported a statutory net profit of $93.3 million for the half-year ended June 30, more than triple the $29.1 million from the same period last year.
$South32 Ltd (S32.AU)$ widened its full-year net loss to $205 million as revenue fell by 3 percent to $548 billion. The coal miner declared a US3.1¢ dividend and expanded its capital management program by $US200 million, to be returned via an on-market share buy-back.
$Bega Cheese Ltd (BGA.AU)$, the owner of Vegemite and several dairy brands including Dairy Farmers and Farmers Union iced coffee, increased its final dividend to 4¢ per share from 3¢ a year ago as it returned to profitability.
$IDP Education Ltd (IEL.AU)$ posted record revenue of $1 billion for the 2024 financial year, up 6 percent from the prior year. This growth was driven by a 27 percent increase in student placement revenue. The company also declared a final dividend of 9¢ per share.
$Atlas Arteria Ltd (ALX.AU)$ reported a 16 percent drop in interim net profit to $114.2 million despite higher group toll revenues, as costs rose and losses continued on its Chicago Skyway toll road. Profits in France were also impacted by a new transport tax.
Economic Calendar (AEST)
10:00 pm: Germany Inflation (Aug)
10:30 pm: US GDP Growth (Q2)
Source: Dow Jones Newswires, AFR
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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