Market Wraps

Morning Wrap: ASX 200 to fall, Dow Jones breaches 40,000 level for first time, Walmart at all-time highs

Fri 17 May 24, 8:23am (AEST)

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

Some of yesterday's post-inflation and retail sales rally was given back today but not before the Dow Jones hit 40,000 points for the first time in intra-day trading. Consumer giant Walmart upped its earnings outlook despite admitting that spending momentum started to slow in April.

It's expected to be a muted day locally given there are no major corporate and economic items previewed for today.

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 Thursday 16 May 2024
A last minute sell order caused the S&P 500 to close lower. (Source: TradingView)

OVERNIGHT MARKETS

  • Dow closes lower Thursday after briefly topping 40,000 for first time

  • Europe stocks close lower as earnings dampen rally following soft U.S. inflation data; BT up 17%

  • Treasury yields move higher as investors digest inflation data

  • Oil prices rise as crude inventories fall and U.S. inflation eases

  • Gold eases as dollar gains, Fed rate cut bets lend support

  • Gold, silver and platinum’s red-hot rally still has further to go, strategists say

Author's Note: The strategists in question work at Saxo Bank. They have predicted that gold prices could soon test the $2,400 level, silver may climb as high as $30 per ounce, while platinum has upside potential to reach $1,130 per ounce. If you want to read some background on those calls, you can find that here and here.

INTERNATIONAL STOCKS

  • Walmart surges to all-time high as earnings beat on high-income shopper, e-commerce gains

  • FDA approves Amgen’s treatment for most deadly form of lung cancer

  • Cisco gives upbeat sales and profit guidance following rebound in orders

  • Berkshire Hathaway unveils $6.7B stake in insurer Chubb, ending months of speculation

  • Deutsche Bank dials back expectations for second share buyback this year

  • Disney says it is dramatically cutting investments in traditional TV

CENTRAL BANKS

  • Chicago Fed's Goolsbee wants to see more progress on disinflation

  • Minneapolis Fed's Kashkari says Fed should hold rates for a while longer

  • ECB highlights financial stability risks on high debt levels, low productivity and geopolitics

ECONOMY

  • U.S. data fuels bets of Fed rate cuts as early as September — but analysts aren’t convinced

  • China activity data seen broadly improving, buoying outlook for recovery as policymakers ramped up support

  • Japan's economy shrunk by more than expected, raising spectre of stagflation

  • Surprise jump in Australian unemployment rate

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

Economic calendar (AEST):

  • 11:30am – CNY – New home prices

  • 12:00pm – CNY – Industrial production, retail sales, fixed asset investment, unemployment rate

  • 7:00pm – EUR – Final core CPI

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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