AU Morning Wrap: ASX Gains; Lovisa Dives Amid CEO Departure

The $S&P 500 Index (.SPX.US)$ fell nearly 1% earlier the session due to a tech-sector selloff, but then rebounded -- ultimately allowing the index to end May with its best monthly gain since February. The $S&P 500 Index (.SPX.US)$ rose 0.8% for Friday and 4.8% for May as a whole. Meanwhile, the blue-chip $Dow Jones Industrial Average (.DJI.US)$ ended higher by 574 points, or 1.5% -- its best day so far in 2024. Still, the technology-heavy $Nasdaq Composite Index (.IXIC.US)$ finished about flat.

The Australian sharemarket has opened higher at the beginning of May, building on strong gains from the previous session. The $S&P/ASX 200 (.XJO.AU)$ is up by 44 points or 0.6% to 7746, following modest gains on Wall Street that saw the benchmark S&P 500 rise by 0.8% at the end of last week. The market rebounded by 1% on Friday after a period of heavy selling earlier in the week due to a higher-than-expected inflation report that raised concerns about a potential interest rate increase from the Reserve Bank.

The $AUD/USD (AUDUSD.FX)$ is trading at US66.51¢, a decrease of 0.04%.

As of latest data, $Bitcoin (BTC.CC)$ is priced at $67,726, up 0.02% in the past 24 hours, while $Ethereum (ETH.CC)$ is priced at $3,776, down 0.98% in the past 24 hours.

$Lovisa Holdings Ltd (LOV.AU)$, a discount jewellery retailer, is currently the worst performing stock on the benchmark index, with a 6.6% drop to $31.65. The decline comes after the company announced that John Cheston, the managing director of Smiggle, will replace current CEO Victor Herrero in a year's time. The news has raised concerns among investors, leading to the drop in share prices. However, the market response may also reflect broader investor concerns about the outlook for retail businesses in the current economic climate.

$APM Human Services International Pty (APM.AU)$ is up by 10.4% to $1.38 after Chicago's Madison Dearborn Partners announced its plans to acquire the company for $1.45 per share. The news has been well received by investors, who are optimistic about the potential benefits of the acquisition.

$Regal Partners Ltd (RPL.AU)$ has purchased private credit and alternative investment house Merricks Capital for $235 million. The acquisition will help Merricks Capital increase its assets under management to over $15 billion. Despite the acquisition news, shares of Merricks Capital remained flat at $3.17.

Building materials group $Fletcher Building Ltd (FBU.AU)$ has extended the maturity date for a large debt facility as it prepares for challenges in the industry. This move has boosted investor confidence, leading to a 3.5% increase in share prices to $2.94.