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ASX at open: Amazon saves the day, tech stocks bounce, miners underperform

Fri 04 Feb 22, 11:14am (AEST)
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Key Points

  • After-hours earnings from Amazon helped tip balance a bearish overnight session
  • Tech stocks lead the market after a gruesome -5% selloff on Thursday
  • REA and News Corp release earnings

The ASX is up 0.18% after Amazon shares rallied 14% in after-hours trade. 

Amazon released its earnings around 8 am AEDT, posting a big earnings beat helped by its investment in electric vehicle developer Rivian. 

Amazon said it will raise the price of its annual Prime membership from $119 to $139. The price change is expected to go into effect for new members in mid-February and for current members in late-March.

Most ASX sectors opened in positive territory, shrugging off the selloff across US stocks overnight.

11 ASX Sectors 2022-02-04

11 ASX Sectors at 10:55 am AEDT

Tech rollercoaster continues

The S&P/ASX 200 Info Tech Index is up 1.1% after a -5.9% selloff on Thursday.

Amazon’s encouraging earnings has reverberated across local tech stocks. Notable winners include:

Miners underperform 

Iron ore giants BHP (ASX: BHP) and Rio Tinto (ASX: RIO) are down -1.2% and -1.3% respectively. 

This is despite another positive overnight session for iron ore prices, up 3% to US$145.95 a tonne. 

Iron ore markets are expected to remain relatively stable in absence of Chinese market participants who are on the week-long Lunar New Year holiday. 

According to Fastmarkets, market participants believe that demand for iron ore is likely to be healthy when Chinese buyers return on Tuesday, 8 February. 

Earnings roundup 

  • REA (ASX: REA) shares rallied 4.4% at open after reporting 31% net profit growth to $226m in the first-half FY22. The company experienced a wave of new listings after lockdown restrictions were lifted from November onwards.

  • News Corporation (ASX: NWS) shares are up 4.1% after delivering 30% earnings growth for the first half FY22. Management said the business is thriving, particularly at the digital real estate services, Dow Jones and book publishing segments.

 

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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