Market Wraps

Morning Wrap: ASX 200 to rise, S&P 500 and Dow at all-time highs + Web Travel earnings

Wed 27 Nov 24, 8:36am (AEDT)

ASX 200 futures are trading 38 points higher, up 0.45%, as of 8:30 am AEDT.

Major US benchmarks continued to tick higher overnight – with the S&P 500 and Dow Jones both logging all-time highs, theme of cyclical rotation into sectors like Utilities and Discretionary continued, Trump's tariff threat placed upward pressure on the US Dollar and bond yields and trading updates/earnings from QBE Insurance and Web Travel Group.

Let's dive in.

Overnight Summary

Wed 27 Nov 24, 8:25am (AEDT)

Name Value % Chg
Major Indices
S&P 500 6,022 +0.57%
Dow Jones 44,860 +0.28%
NASDAQ Comp 19,174 +0.63%
Russell 2000 2,426 -0.66%
Country Indices
Canada 25,405 -0.02%
China 3,260 -0.12%
Germany 19,296 -0.56%
Hong Kong 19,159 +0.04%
India 80,004 -0.13%
Japan 38,442 -0.87%
United Kingdom 8,259 -0.40%
Name Value % Chg
Commodities (USD)
Gold 2,631.2 +0.12%
Iron Ore 102.01 +0.06%
Copper 4.0565 -1.25%
WTI Oil 68.67 -0.54%
Currency
AUD/USD 0.6461 -0.62%
Cryptocurrency
Bitcoin (USD) 91,253 -4.13%
Ethereum (AUD) 5,138 -5.26%
Miscellaneous
US 10 Yr T-bond 4.302 +0.87%
VIX 14.05 -3.76%

US Sectors

Wed 27 Nov 24, 8:25am (AEDT)

SECTOR % CHG
Utilities +1.56%
Consumer Discretionary +0.90%
Communication Services +0.81%
Information Technology +0.80%
Consumer Staples +0.65%
Real Estate +0.53%
SECTOR % CHG
Health Care +0.45%
Financials +0.21%
Industrials +0.15%
Energy -0.23%
Materials -0.67%

S&P 500 SESSION CHART

S&P 500 intraday
S&P 500 higher, finished near best levels (Source: TradingView)

OVERNIGHT MARKETS

  • Major US benchmarks finished higher, finished near best levels

  • Equal-weight S&P 500 underperformed the official benchmark by 56 bps as gains from Big Tech helped cushion the market at the index level

  • Overnight upside continues to highlight a cyclical rotation into sectors like Utilities and Discretionary

  • Recent strength in retail stocks has received some attention, with S&P Retail ETF up ~12% since November, underpinned by decent earnings, Black Friday optimism, macro surprise momentum and lower oil prices

  • Equity volatility heading for its lowest annual average since 2019 despite broad global risks (BBG)

  • French yield gap over German bonds surges to highest since 2012 euro crisis, could spike further if government collapses (BBG)

STOCKS

  • Automaker shares fall after Trump threatens 25% tariff on Mexico and Canada, 10% on China (CNBC)

  • Biden administration proposing rule that would require the US government to cover weight-loss drugs (BBG)

  • Apple runs into regulatory hurdles in China with AI rollout for iPhones (FT)

  • Kohl’s shares dip 17% after the retailer cut its sales outlook amid an uncertain holiday backdrop (CNBC)

  • Best Buy shares fall 4.8% after slashing its full-year sales forecast, now expects comparable same-store sales to fall 2.5-3.5%

CENTRAL BANKS

  • Fed November meeting minutes show broad support for gradually lowering rates, while some saw pause or faster cuts as an option (BBG)

  • Chicago Fed's Goolsbee sees rate cuts continuing, but pace to be determined by outlook and conditions (BBG)

  • ECB VP de Guindos says more rate cuts are on the way if policymakers' forecasts for inflation hold (BBG)

  • RBNZ expected to cut cash rate by another 50 bp this week (BBG)

POLITICS & GEOPOLITICS

  • Trump says first executive orders will include an additional 10% tariffs on China goods, above any additional tariffs, as well as 25% tariffs on Mexico and Canada (RT)

  • Mexican president calls for cooperation with US on trade, warns of risks tariffs pose to companies (BBG)

  • Biden, France's Macron to announce Israel-Hezbollah ceasefire (RT)

  • Russian forces advancing in Ukraine at the fastest rate since the early days of the 2022 invasion (RT)

ECONOMY

  • Japan's service-sector inflation steady near 3%, keeps alive BOJ rate hike (RT)

  • South Korean consumers' economic outlook deteriorates at fastest pace since mid-2022 (BBG)

  • India Q2 GDP growth forecast to have slowed to 1.5 year low (RT)

Industry ETFs

Wed 27 Nov 24, 8:25am (AEDT)

Name Value % Chg
Commodities
Silver 27.79 +0.58%
Gold Miners 37.31 +0.46%
Uranium 31.77 -0.94%
Steel 70.6406 -1.27%
Copper Miners 41.8 -1.58%
Strategic Metals 45.22 -2.46%
Lithium & Battery Tech 43.94 -3.41%
Industrials
Aerospace & Defense 154.63 +1.14%
Agriculture 26.775 +0.92%
Construction 87.94 -0.49%
Global Jets 24.4 -1.05%
Healthcare
Biotechnology 140.23 +0.23%
Name Value % Chg
Cryptocurrency
Bitcoin 24.42 -4.16%
Renewables
Solar 35.97 -0.22%
CleanTech 7.26 -1.22%
Hydrogen 24.37 -1.50%
Technology
Cybersecurity 33.81 +1.29%
Video Games/eSports 83.325 +0.54%
Sports Betting/Gaming 20.38 +0.15%
Robotics & AI 33.27 -0.42%
E-commerce 28.545 -0.57%
Cloud Computing 24.72 -0.60%
FinTech 33.58 -0.94%
Semiconductor 215.45 -1.30%
Electric Vehicles 23.41 -1.47%

ASX TODAY

  • City Chic Collective reaffirms FY revenue guidance of $142-160m vs. $144m consensus, expects higher average selling prices and gross margin trends from 2H24 and early FY25 (CCX)

  • QBE Insurance issues trading update, GWP up 2% year-on-year for nine months to 30 September, driven by Group-wide renewable premium rate increase of 5.9%, reiterates FY24 outlook (QBE)

  • Ramsay Health Care CEO says the company is not going to sell offshore assets despite investor pressure, won't rule out property sales (AFR)

  • Web Travel Group intends to conduct on-market share buyback of up to $150m, commencing December 2024 (WEB)

  • Web Travel Group reports 1H25 underlying EBITDA of $70m vs. $75.7m consensus with no interim dividend, full-year EBITDA guidance of $117-122m vs. $114m consensus, TTV up 23% for first 7 weeks of trading for 2H25 (WEB)

WHAT TO WATCH TODAY

  • Pretty quiet in terms of overnight lead and current announcements – cyclical rotation to continue to benefit sectors like Utilities, Real Estate, Staples etc. while resources underperform (iron ore, copper and nickel-related stocks all pulled back overnight)

BROKER MOVES

  • GQG Partners initiated Buy with $3.30 target (JARD)

  • Pinnacle Investment initiated Neutral with $22.60 target (JARD)

  • Qantas downgraded to Neutral from Buy; however target up to $9 from $8.60 (UBS)

  • Qualitas initiated Buy with $3.75 target (JARD)

  • The Lottery Corp upgraded to Buy from Hold; target up to $5.80 from $5.09 (JEF)

  • Webjet Group upgraded to Buy; target up to $1.10 from $0.95 (JEF)

  • Webjet Group initiated Buy with $1.32 target (OM)

Key Events

Stocks trading ex-dividend: 

  • Wed 27 Nov: ALS (ALQ) – 1.18%, Graincorp (GNC) – 3.00%, Whitefield Industrials (WHF) – 1.83%.

  • Thu 28 Nov: 360 Capital Mortgage REIT (TCF) – 0.86%, Gryphon Capital Income Trust (GCI) – 0.66%, KKR Credit Income Fund (KKC) – 0.73%, , Perpetual Credit Income Trust (PCI) – 0.59%, Red Hill Minerals (RHI) – 6.82%, Technology One (TNE) – 0.57%

  • Fri 29 Nov: Aristocrat Leisure (ALL) – 0.63%, , Metrics Income Opportunities Trust (MOT) – 0.52%, Metrics Master Income Trust (MXT) – 0.61%, Metrics Real Estate Multi-Strategy Fund (MRE) – 0.41%, Pengana International Equities (PIA) – 1.15%.

Other ASX corporate actions today: 

  • Dividends paid: Brickworks (BKW), Global Data Centre Group (GDC)

  • Listing: None

  • Earnings: Web Travel Group (WEB)

  • AGMs: Harvey Norman (HVN), Liontown Resources (LTR), Lynas Rare Earths (LYC), NRW Holdings (NWH)

Economic calendar (AEDT):

  • 10:30 am: Australia Monthly CPI Indicator (Oct)

  • 11:30 pm: US Core PCE Index (Oct)

  • 11:30 pm: US Durable Goods Orders (Oct)

  • 11:30 pm: US Q3 GDP

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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