Market Wraps

Morning Wrap: ASX 200 to fall, Nvidia tops earnings expectations + Pilbara Minerals, MinRes to report

Thu 22 Feb 24, 8:35am (AEST)

ASX 200 futures are trading 19 points lower, down -0.25% as of 8:30 am AEDT.

The S&P 500 rallied in the last 30 minutes of trade to finish slightly higher, Nvidia smashes fourth quarter earnings expectations and issued a strong guidance, local heavyweights Pilbara Minerals, MinRes and IGO are due to release their first half results, CSR receives a massive takeover bid from French giant Saint-Gobain, January FOMC minutes stressed the need to hold rates and some nuggets from Woolies and Wisetech earnings calls.

Let's dive in.

Overnight Summary

Thu 22 Feb 24, 8:24am (AEDT)

Name Value % Chg
Major Indices
S&P 500 4,982 +0.13%
Dow Jones 38,612 +0.13%
NASDAQ Comp 15,581 -0.32%
Russell 2000 1,992 -0.60%
Country Indices
Canada 21,172 -0.21%
China 2,951 +0.97%
Germany 17,118 +0.29%
Hong Kong 16,503 +1.57%
India 72,623 -0.59%
Japan 38,262 -0.26%
United Kingdom 7,663 -0.73%
Name Value % Chg
Commodities (USD)
Gold 2,035.7 0.00%
Iron Ore 127.92 -1.06%
Copper 3.88 +0.54%
WTI Oil 78.02 -0.32%
AUD/USD 0.655 -0.06%
Bitcoin (AUD) 77,858 -1.83%
Ethereum (AUD) 4,441 -2.21%
US 10 Yr T-bond 4.325 +1.17%
VIX 15.41 -0.06%

US Sectors

Thu 22 Feb 24, 8:24am (AEDT)

Energy +1.86%
Utilities +1.36%
Consumer Discretionary +0.72%
Real Estate +0.72%
Materials +0.57%
Industrials +0.42%
Financials +0.31%
Consumer Staples +0.29%
Health Care +0.26%
Communication Services +0.20%
Information Technology -0.76%


S&P 500 intraday
S&P 500 claws back losses to close slightly higher (Source: TradingView)


  • ASX 200 futures point towards a weak start but a lot of variables at play including major miner earnings and better-than-expected results from Nvidia

  • Companies due to report today include Flight Centre, Deterra Royalties, Fortescue, Lovisa, MinRes, Qantas, Tabcorp, Nine Entertainment, ReadyTech, The Reject Shop and more

  • Mineral Resources reports 1H24 statutory net profit of $518m, down 33%

  • Pilbara Minerals reports 1H24 net profit after tax of $220m, down 82.3%

  • Corporate Travel downgraded to Neutral from Buy at Citi, target cut to $17.55 from $22.55 

  • Domino’s Pizza downgraded to Neutral from Outperform at Macquarie, target cut to $42 from $48

  • Iluka Resources upgraded to Overweight from Neutral at Barrenjoey, target increased to $8.40 from $7.20 

  • Lottery Corp downgraded to Hold from Add, target unchanged at $5.40 

  • Wisetech Global downgraded to Neutral from Overweight due to valuation concerns, target increased to $82 from $80

  • Woolworths downgraded to Hold from Add at Morgans, target cut to $34.70 from $39.45

  • MinRes selling 14.5% of Azure Minerals (AFR)

  • Sayona Mining shareholder launches $60m block trade (AFR)

  • French building materials giant Saint-Gobain lobs $4.3bn bid for CSR (AFR)


  • S&P 500 rallied in the last 30 minutes of trading to finish slightly higher

  • Bonds yields higher across the curve, both 2-and-10 years closing near 3-month highs

  • Nvidia released its earnings after market close – Q4 revenue of US$22.1bn (8% beat), adjusted gross margin of 76.7% (130 bps beat) and adjusted EPS of $5.16 (11.4% beat)

  • Nvidia expects 1Q24 revenue of US$24bn, well above expectations of US$21.9bn

  • Nvidia shares currently up around 6% in after hours

  • Markets have priced out more than 75 bp worth of rate cuts from peak easing expectations but still looking for 90 bps of rate cuts this year

  • January FOMC minutes stressed the need to hold rates until the data brought greater confidence that inflation was moving sustainably towards the 2% target, participants remained highly attentive to inflation risks, some worried disinflation progress could stall


  • Nvidia options positioning implies 10.6% share swing post earnings (Bloomberg)

  • Nvidia faces high earnings bar following stock rally (Reuters)

  • Hedge funds pare exposure to Magnificent 7 megacap tech stocks in Q4 (Bloomberg)

  • Intel discloses forecast to overtake TSMC in making fastest chips this year (Reuters)


  • Fed's Barkin says US has 'ways to go' on soft landing and hot January data made things more difficult (Bloomberg)

  • Fed Governor Bowman says time to cut rates 'certainly not now' (Bloomberg)

  • Fed's Daly reiterates that patience, says "to finish the job will take fortitude" (SF Fed)

  • Options data shows some investors hedging against chance of a rate hike (Bloomberg)

  • BoE to start cutting rates in Q3, most likely August (Reuters)

  • BoK expected to leave rates unchanged on Thursday (Bloomberg)


  • EU and Biden set to impose major sanctions on Russia for Navalny's death (Bloomberg)

  • Russia has regained the initiative and put Zelensky on the back foot (Bloomberg)

  • Trump likely to consider two-step process to sharply lift China tariffs (Nikkei)

  • China avoids US tariffs by shipping more goods via Mexico (FT)


  • Japan export rebound tops forecasts, underpinned by shipments of autos and chipmaking equipment (Reuters)

  • Biden announces additional $1.2bn in student debt forgiveness (CNBC)

Industry ETFs

Thu 22 Feb 24, 8:25am (AEDT)

Name Value % Chg
Lithium & Battery Tech 42.73 +1.45%
Uranium 28.33 +0.96%
Strategic Metals 48.41 +0.62%
Steel 69.615 +0.18%
Copper Miners 35.93 -
Silver 20.96 -0.52%
Gold Miners 26.81 -0.67%
Agriculture 22.155 +0.70%
Aerospace & Defense 125.53 +0.08%
Construction 65.02 +0.08%
Global Jets 20.06 -0.10%
Cannabis 5.15 +0.78%
Biotechnology 135.26 +0.29%
Name Value % Chg
Bitcoin 24.12 -2.19%
Hydrogen 5.53 -0.72%
CleanTech 9.13 -0.87%
Solar 44.775 -2.26%
Electric Vehicles 23.5 +0.34%
Semiconductor 613.19 -0.23%
Video Games/eSports 59.5 -0.55%
Sports Betting/Gaming 17.5 -0.79%
E-commerce 21.365 -0.95%
Robotics & AI 29.46 -1.21%
FinTech 24.83 -1.78%
Cloud Computing 21.2 -2.17%
Cybersecurity 28.6 -6.75%

The Lithium Scenes

The sector is not as hype as before but some wild things have happened in the past 24 hours.

  • MinRes Managing Director Chris Ellison sold a 14.5% stake in Azure Minerals, valued at $230 million. Ellison was happy to exit at $3.42 per share or a 7.6% discount instead of waiting a few more months until the scheme is implemented. How strange.

  • Sayona flagged a $60m (1.1 billion shares or around 11% of the company) block trade after market close on Wednesday. Sources suggest the seller was Piedmont Lithium. Maybe they need the cash?

  • Chinese lithium prices briefly hit limit up of 10% in early trade on Wednesday (but finished the session only 3.5% higher)

  • Pilbara Minerals, MinRes and IGO are due to report first-half results today

Buckle up.

Woolworths Earnings Call Highlights

Woolworths (ASX: WOW) had its worst day since December 2021 after a softer-than-expected set of half-year earnings. The weakness was compounded by a smaller-than-expected interim dividend, an unexpected CEO departure and a cautious outlook. The stock finished the session down 6.6% to a 12-month low. You can find my summary of the results here as well as some of the nuggets from its earnings Q&A below.

  • Wage (+6.3%) and other costs led to a ~9% cost growth in the Australian food business

  • The $480 million cost of doing business growth was half due to wage inflation and volume/mix drivers accounted for ~40% of cost growth

  • Productivity agenda ahead of expectations but the focus is on fundamental improvements rather than just cutting costs

  • Gross margin benefited from eCommerce growth (larger baskets with more long-lasting products), investments in Everyday Rewards, telco business rebranding, etc

  • Big W's future strategy includes cautious underlying investment approach; every store lease renewal will be critically evaluated based on performance

Wisetech Earnings Call Highlights 

Wisetech (ASX: WTC) had one of those results where you knew the stock was going to open high and close even higher. Underlying net profit for the first half was up 5% to $128.4 million or 12% ahead of Citi estimates and its 7.7 cents per share interim dividend was 33% of Citi estimates. It reaffirmed its full-year guidance but upped its margin guidance range. The stock opened 5.6% higher and finished up 11.2%.

  • Volume growth in CargoWise is on trend, with a slight uptick towards year end

  • Less than 10% of overall CargoWise growth comes from market

  • First half revenue was $500.4 million, up 32%, and CargoWise revenue up 40%

  • Product development releases have been delayed into FY25, affecting revenue projections for that year

  • Capitalisation rate has increased by 86% over the last year to $71.6 million due to significant pipeline of new products.

  • Integration of Blume and Envase acquisitions has been quicker and more cost-effective than expected due to Wisetech's global scale capabilities

  • EBITDA margin for FY26 to be above 50%, driven by revenue growth and operating leverage rather than high capitalisation rates

Key Events

ASX corporate actions occurring today:

  • Trading ex-div: Deterra Royalties (DRR) – $0.149, Whitehaven Coal (WHC) – $0.07, JB Hi-Fi (JBH) – $1.58, Bendigo and Adelaide Bank (BEN) – $0.30, Virgin Money (VUK) – $0.038 

  • Dividends paid: 5G Networks (5GN) – $0.02, Dexus Industria REIT (DXI) – $0.04, Dexus Convenience Retail (DXC) – $0.05  

  • Listing: None

Economic calendar (AEDT):

  • 9:00 am: Australia Manufacturing and Services PMI (Feb)

  • 8:00 pm :Eurozone Manufacturing and Services PMI (Feb) 

Written By

Kerry Sun

Content Strategist

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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