AU Morning Wrap: ASX Falls as Miners Retreat, Star Slumps 21%

Moomoo News AU wrote a column · Feb 19 17:39

G'day, mooers! Check out the latest news on today's stock market!
• US stock futures rise ahead of busy earnings week
• ASX falls as BHP, Judo, Sims and Baby Bunting weigh
• Stocks to watch: BHP, Hub24, Sonic Healthcare
- Moomoo News AU

AU Morning Wrap: ASX Falls as Miners Retreat, Star Slumps 21%

Wall Street Summary

U.S. stock futures rose slightly ahead of a batch of key earnings this week that could pull investors’ focus away from concerns about stubborn inflation.

Futures tied to the tech-focused Nasdaq-100 and the S&P 500 were marginally higher, while those tied to Dow industrials were flat. Trading volumes were light, with U.S. stock and bond markets closed Monday for the Presidents Day holiday.

Bellwether companies including Nvidia, Walmart and Home Depot are due to report earnings this week and analysts say the results could help dictate the stock market’s next direction. That is especially true for Nvidia, which recently became the third-largest U.S. company by market capitalization following a nearly 50% climb in its shares this year.

AU Market Watch

Australian shares fell as miners and energy headed south following a sharp overnight drop in iron ore prices and BHP posted its lowest half-year profit in eight years amid a flurry of company earnings.

The $S&P/ASX 200 (.XJO.AU)$ lost 24.3 points, or 0.3 per cent, shortly after the opening bell, pulling away from an all-time high set on earlier this month. On Monday, it edged up 0.1 per cent.

Financials and tech were the only two sectors in the green out of the index's 11.

Stocks to Watch

$BHP Group Ltd (BHP.AU)$: BHP Group fell 0.4 per cent after underlying profit slumped to $US6.6 billion ($10.1 billion), forcing the company to cut interim dividend to $US72¢, from $US90¢.

Iron ore slid more than 3 per cent in Singapore and copper was lower in London even after the People’s Bank of China opted to keep rates steady against expectations of a cut and on reports that new home prices fell during the Lunar New Year break.

$The Star Entertainment Group Ltd (SGR.AU)$: Star Entertainment was the index's biggest loser, down 25 per cent to 42¢ as it is on the verge of losing a lucrative licence to operate one of two Sydney casinos.

$Sims Ltd (SGM.AU)$: Metal recycling company Sims was the second largest underperformer down 6.6 per cent after its statutory net profit after tax slumped in the first half of 2024 because of higher borrowing costs, lower trading margins, and persistently high inflation.

$Judo Capital Holdings Ltd (JDO.AU)$: Judo Bank sank 6.7 per cent after chief executive Joseph Healy announced he was stepping down.