Market Wraps

Morning Wrap: ASX 200 to rise, Dow bounces, Nasdaq lower as investors rotate out of tech

Tue 14 Jan 25, 8:31am (AEDT)

ASX 200 futures are up 31pts (+0.37%) as of 8:30 am AEDT.

In a nutshell:

  • Nasdaq continued to ease as investors rotated out of major tech names

  • S&P 500 and Dow positive, most US stocks finished higher, led by Materials, Tech and Healthcare sectors

  • Yields and the US dollar remain a problem as both continued to tick higher overnight

Let's dive in.

Overnight Summary

Tue 14 Jan 25, 8:20am (AEDT)

Name Value % Chg
Major Indices
S&P 500 5,836 +0.16%
Dow Jones 42,297 +0.86%
NASDAQ Comp 19,088 -0.38%
Russell 2000 2,189 -0.02%
Country Indices
Canada 24,536 -0.93%
China 3,161 -0.25%
Germany 20,133 -0.41%
Hong Kong 18,874 -1.00%
India 76,330 -1.36%
Japan 39,190 -1.05%
United Kingdom 8,224 -0.29%
Name Value % Chg
Commodities (USD)
Gold 2,679.6001 -1.30%
Iron Ore 98.09 -
Copper 4.3215 +0.41%
WTI Oil 78.7 +2.78%
Currency
AUD/USD 0.6161 +0.24%
Cryptocurrency
Bitcoin (USD) 93,772 -0.90%
Ethereum (AUD) 5,029 -5.47%
Miscellaneous
US 10 Yr T-bond 4.803 +0.57%
VIX 19.34 -1.02%

US Sectors

Tue 14 Jan 25, 8:20am (AEDT)

SECTOR % CHG
Energy +2.25%
Materials +2.21%
Health Care +1.27%
Real Estate +1.25%
Industrials +1.16%
Financials +0.69%
SECTOR % CHG
Consumer Discretionary +0.48%
Consumer Staples -0.06%
Communication Services -0.49%
Information Technology -0.87%
Utilities -1.19%

S&P 500 SESSION CHART

SPX
S&P 500 higher, well off session lows (Source: TradingView)

OVERNIGHT MARKETS

  • Major US benchmarks finished mixed but well off worst levels

  • S&P 500 finished up 0.16%, rallying from session lows of -0.92%

  • Strong breadth, with more than 70% of S&P 500 constituents closing higher

  • Yields continue to dampen risk appetite, the US 10-year yield is up more than 115 bps since the Fed kicked off the current easing cycle

  • S&P 500 earnings forecast to increase 11.7% year-on-year in Q4, the strongest growth in three years

  • Investors hope corporate earnings growth can revive faltering stock market rally amid fading bets for quicker Fed rate cuts (WSJ)

  • Hedge funds increased bearish bets ahead of Friday's strong US jobs report, says Goldman Sachs (Reuters)

  • Stronger US dollar to boost domestically oriented sectors over those with global revenues, says Morgan Stanley's Wilson (BBG)

  • Strong US jobs report reinforces expectations for higher for longer rates; some fear inflation rebound (RT)

  • Global bond yield backup triggering a lot of worries about start to 2025 (BBG)

  • BofA strategists see weaker demand for long-duration, investment grade bonds amid hawkish Fed repricing (BBG)

  • Bitcoin briefly dips below $90,000 to lowest level since November (CNBC)

  • Tougher US sanctions set to curb Russian oil supply to China and India sending crude to four-month high (BBG)

STOCKS

  • Nvidia Blackwell customers delaying orders over overheating, glitches in how chips connect with each other (RT)

  • Optimism over US banks set to be put to the test with earnings this week (YH)

  • Airline bosses bullish over 2025 but industry remains vulnerable to unexpected problems like recession, inflation rebound (NYT)

  • TSMC Q4 profit expected to surge 58% on strong AI chip demand (RT)

CENTRAL BANKS

  • ECB's Vujcic says central bank unlikely to speed up rate cut pace (BBG)

  • ECB's Rehn says more rate cuts will be needed irrespective of Fed moves (BBG)

  • BoE faces inflation challenge as CPI set to remain elevated (BBG)

  • China ramps up support for yuan with tweaks to its capital controls and vows to crack down on market disruption (BBG)

ECONOMY

  • China export growth beats estimates ahead of potential tariff increase (BBG)

  • PBOC chief says China will promote role of consumption in the economy, move away from investment focus (BBG)

Industry ETFs

Tue 14 Jan 25, 8:20am (AEDT)

Name Value % Chg
Commodities
Steel 59.1 +2.62%
Lithium & Battery Tech 40.51 +1.86%
Strategic Metals 41.02 +1.81%
Uranium 27.1 -0.26%
Copper Miners 39.01 -0.41%
Gold Miners 35.36 -1.70%
Silver 26.955 -2.37%
Industrials
Agriculture 26.74 +1.10%
Aerospace & Defense 146.1649 +0.75%
Construction 75.32 +0.68%
Global Jets 25.655 -2.15%
Healthcare
Biotechnology 134.02 +0.97%
Name Value % Chg
Cryptocurrency
Bitcoin 22.7501 -1.30%
Renewables
Solar 33.74 -1.17%
CleanTech 6.9101 -1.28%
Hydrogen 22.9708 -6.36%
Technology
Video Games/eSports 81.84 +0.28%
Sports Betting/Gaming 18.58 -0.10%
Electric Vehicles 22.83 -0.13%
Semiconductor 217.53 -0.31%
E-commerce 27.22 -0.44%
Cloud Computing 23.44 -0.51%
FinTech 30.48 -0.91%
Cybersecurity 31.56 -0.97%
Robotics & AI 31.46 -1.04%

ASX TODAY

  • Bravura Solutions confirms 16.3 cents per share return of capital or a yield of approximately 7.4% (BVS)

  • MAF Financial to raise ~$300m for listed private credit trust, sources say MA has begun contacting potential investors about the raise, as it targets managing $15bn by the end of 2026 (The Aus)

  • Telix Pharmaceuticals reports preliminary Q4 revenue growth of 46% to $218m, upgrades FY revenue guidance to $783m vs. prior $745-776m and $771m consensus (TLX)

  • Xingchun Wang discloses 5.5% stake in The Star, the mystery investor is Macau-based, listed address as the Windsor Arch high-rise project (AFR)  

WHAT TO WATCH TODAY

  • Resource bounce: Energy (+2.2%) and Materials (+2.2%) were the best performing S&P 500 sectors. Continued strength across several commodities like oil (Brent up 1.5% to four-month high), copper (up 0.75% to three-month high) and a small bounce in iron ore prices (up 0.4% to US$99.35)

  • Gold weakness: Bullion prices eased -1.0% overnight, snapping a four-day win streak.

  • Retailers: Premier Investments (-15.9%) and Myer (23.1%) suffered steep selloffs yesterday after trading updates flagged weaker-than-expected earnings. PMV guided to 1H25 sales between $855-865m or 2.2% below Macquarie estimates (as of Nov-24). The result dragged most retail stocks lower (e.g. BRG -3.4%, WES -2.2%, LOV -1.8%). It will be interesting to see if PMV is hit with consensus downgrades today.

BROKER MOVES

  • MA Financial upgraded to Neutral from Underperform; target up to $11 from $9 (BofA)

  • Newmont initiated Buy with $76.20 target (GS)

  • Northern Star Resources upgraded to Buy from Neutral; target up to $20 from $16.60 (GS)

Key Events

Stocks trading ex-dividend: 

  • Tue 14 Jan: None

  • Wed 15 Jan: Tower (TWR) – 4.22%

  • Thu 16 – Fri 17 Jan: None

Other ASX corporate actions today: 

  • Dividends paid: None

  • Listing: None

  • Earnings: None

  • AGMs: None

Economic calendar (AEDT):

  • 9:30 am: Australia Consumer Confidence (Jan)

  • 11:30 pm: US Producer Price Index (Dec)

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.

Get the latest news and insights direct to your inbox

Subscribe free