Market Wraps

Morning Wrap: ASX 200 to rise, Dow Jones closes above 40,000 level for first time, Where investors are piling cash into

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

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

It's set to be a quiet start to the week but you wouldn't know that looking at the price action. The Dow Jones Industrial Average closed above 40,000 for the first time ever last Friday - and sealed a five-week winning streak in the process. In fact, all time highs seem to be the norm for global equity markets over the last few years. Of the 20 largest stock markets in the world, 14 of them are at or near all-time highs.

It's not just stocks that people are piling into either. Corporate earnings are growing at their second-strongest quarterly pace in two years, leading the biggest investors to pile into corporate bonds.

But it's not a bubble, is it?

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 Friday 17 May 2024
A buying flurry within the last two hours was enough to give the S&P 500 a small rise at the close. (Source: TradingView)

OVERNIGHT MARKETS

  • Dow closes at record high above 40,000 to cinch a five-week winning streak

  • European markets close slightly lower after snapping nine-day winning streak

  • Treasury yields rise as investors weigh state of the economy

  • Oil posts weekly gain on hopes of firmer demand

  • China stimulus, U.S. rate cut bets lift gold, silver soars above $30 mark

  • 14 of the world's 20 largest equity markets have hit recent record highs

  • Bond investors piling into high-grade corporates as potential Fed rate cuts edge closer

INTERNATIONAL STOCKS

  • Microsoft expected to showcase its AI projects at this week's Build developers' conference

  • Amazon closing in on a deal to stream regular-season and playoff NBA games

  • Corporate earnings seeing healthy growth, second-best pace over the past two years (Per-share earnings has climbed 7.3% in first quarter thus far but most importantly, earnings growth is broadening - per Bloomberg)

ECONOMY

  • Soaring debt and deficits causing worry about threats to the economy and markets

  • Federal debt is generating elevated levels of worry for Wall Street

  • Executives in the consumer space warn of shoppers delaying big-ticket purchases

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

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.

Get the latest news and insights direct to your inbox

Subscribe free