Market Wraps

Morning Wrap: ASX 200 to edge lower, James Hardie reports record earnings, Telstra reaffirms FY24 guidance

Tue 21 May 24, 8:57am (AEST)

ASX 200 futures are trading 52 points lower, down -0.68% as of 8:30 am AEST.

At the end of last year, we compiled a piece on the rush (and indeed, the uselessness) of S&P 500 year-end targets. Well, we're five months into 2024, and research houses who have not already changed their targets at least once are now springing into action. The NASDAQ closed at another record high while the S&P 500 rally is estimated to have added US$12 trillion in wealth since the surge began last October.

That rally could go under one almighty test given NVIDIA (NASDAQ: NVDA) reports tonight.

Will today be the day the ASX 200 notches its record high? Locally, we're already seeing a few interesting corporate catalysts - not least the fact that James Hardie has notched up another record earnings year in spite of what's meant to be a tough homebuilding and construction market.

Let's dive in.

Overnight Summary

Mon 27 May 24, 8:20am (AEST)

Name Value % Chg
Major Indices
S&P 500 5,305 +0.70%
Dow Jones 39,070 +0.01%
NASDAQ Comp 16,921 +1.10%
Russell 2000 2,070 +1.04%
Country Indices
Canada 22,321 +0.54%
China 3,089 -0.88%
Germany 18,693 +0.01%
Hong Kong 18,609 -1.38%
India 75,410 -0.01%
Japan 38,646 -1.17%
United Kingdom 8,318 -0.26%
Name Value % Chg
Commodities (USD)
Gold 2,334.5 -0.12%
Iron Ore 117.66 +0.11%
Copper 4.7535 -0.81%
WTI Oil 77.72 +1.11%
Currency
AUD/USD 0.6629 +0.35%
Cryptocurrency
Bitcoin (AUD) 103,344 -0.87%
Ethereum (AUD) 5,803 +2.72%
Miscellaneous
US 10 Yr T-bond 4.467 -0.18%
VIX 11.93 -6.58%

US Sectors

Fri 24 May 24, 8:22am (AEST)

SECTOR % CHG
Information Technology +0.56%
Materials -0.88%
Energy -1.02%
Health Care -1.08%
Communication Services -1.15%
Consumer Staples -1.20%
SECTOR % CHG
Industrials -1.22%
Financials -1.51%
Consumer Discretionary -1.52%
Utilities -1.70%
Real Estate -2.16%

S&P 500 SESSION CHART

SPX Monday 20 May 2024
A buying flurry at the close was just enough to get the S&P 500 home with a minute gain. (Source: TradingView)

OVERNIGHT MARKETS

  • Nasdaq scores record close as Dow sheds 200 points

  • Global stocks hit record highs as more countries join in the rally

  • Wall Street strategists rush to revise S&P 500 targets as stocks hit fresh records

  • European markets close slightly higher; luxury giant Richemont up 5.3%

  • Treasury yields inch higher as investors look to data, Fed speaker comments

  • Oil prices fall as traders monitor developments in Iran after president's death

  • 'Perfect storm' steers gold to another record high; silver jumps

INTERNATIONAL STOCKS

  • Microsoft announces new PCs with AI chips from Qualcomm

  • JPMorgan CEO Jamie Dimon signals retirement is closer than ever

  • Nvidia beating earnings per share expectations is worst-kept secret on Wall Street, says Evercore

  • Apple launches aggressive iPhone price discounts in China amid fierce Huawei competition

  • US regulators moving toward new plan to significantly reduce nearly 20% mandated increase in capital for large banks

  • BHP said to be mulling improved proposal for Anglo American as time runs out in takeover saga

  • Tesla doing damage-control to appease from European leasing by offering discounts for fleet buyers

MORE ON THE MARKETS

  • An earnings surge could lift Dow to 60,000 and S&P 500 to 8,000, says top Wall Street strategist

  • UK stocks are outperforming the U.S. and one CIO says they look ‘very cheap’

  • Global bond rally sparked by euphoria over slower US inflation faces UK CPI reality check this week

  • Copper surges to its highest-ever level amid ongoing bets of looming shortages

  • Financials, Healthcare the stars of Europe's Q1 earnings season

ECONOMY

  • Debate picks up over potential for BoJ rate hike amid hawkish signals, weak yen

  • ECB's Kazaks warns over hasty rate cuts after June; places focus on upcoming data

  • BoE's Broadbent says rate cuts may come soon (Bloomberg); inflation could hit BoE's 2% target this week

ASX TODAY

  • James Hardie (ASX: JHX) has reported a 17% rise in full year net income to a record $707 million. Sales and earnings also hit all time highs for the full year. ALS (ASX: ALQ) and Technology One (ASX: TNE) also release earnings results.

  • Telstra (ASX: TLS) has already reiterated its FY24 guidance and provided FY25 earnings guidance (but not before it said it would cut 2800 jobs)

  • BrainChip (ASX: BRN) and Viva Energy (ASX: VEA) host AGMs.

Industry ETFs

Mon 27 May 24, 8:20am (AEST)

Name Value % Chg
Commodities
Copper Miners 48.66 +1.88%
Uranium 32.0 +1.78%
Strategic Metals 53.32 +1.51%
Gold Miners 35.26 +1.47%
Lithium & Battery Tech 44.29 +1.00%
Steel 71.7093 +0.70%
Silver 27.74 +0.69%
Industrials
Aerospace & Defense 135.55 +1.04%
Construction 70.74 +0.87%
Global Jets 20.27 +0.50%
Agriculture 24.67 +0.16%
Healthcare
Biotechnology 135.67 +0.03%
Name Value % Chg
Cryptocurrency
Bitcoin 28.07 +3.20%
Renewables
Solar 47.5 +5.23%
CleanTech 9.77 +3.72%
Hydrogen 6.54 +2.99%
Technology
Semiconductor 238.56 +1.98%
Electric Vehicles 24.76 +1.77%
Sports Betting/Gaming 17.1409 +1.02%
Video Games/eSports 65.05 +0.93%
Robotics & AI 31.53 +0.90%
Cybersecurity 29.28 +0.72%
FinTech 25.62 +0.67%
E-commerce 24.05 +0.59%
Cloud Computing 19.93 -0.75%

 

Key Events

Trading ex-dividend this week:

  • Amcor (AMC) - 21 May - $0.193

  • Aneka Tambang (ATM) - 21 May -$0.048

  • Orica Ltd (ORI) - 23 May - $0.19

  • Aristocrat (ALL) - 23 May - $0.36

  • Whitefield (WHF) - 24 May -$0.102

Economic releases:

  • 10:30am – AUD – Westpac Consumer Sentiment

  • 11:30am – AUD- Monetary policy meeting minutes

  • 4:00pm – EUR – German PPI

  • 10:30pm – CAD – CPI

  • Tonight – USD – FOMC members Waller, Barkin, Williams, Bostic, Barr all speaking

This Morning Wrap was written by Hans Lee and Chris Conway.

Written By

Hans Lee

Senior Editor

Hans is one of the Senior Editors at Livewire Markets and Market Index. He created Signal or Noise and leads the team's coverage of the global economy and fixed income markets.

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