ASX 200 futures are trading 32 points higher, up 0.42% as of 8:30 am AEDT.
Major US benchmarks surged to record levels after Nvidia's monster earnings sparked a global stock market rally overnight, Japan's main stock index closes above its 1989 record high, European PMIs inch towards a recovery in January plus highlights from the Fortescue and Qantas earnings call Q&A.
Let's dive in.
Fri 23 Feb 24, 8:22am (AEDT)
Fri 23 Feb 24, 8:23am (AEDT)
Companies to report today include Austal, Bapcor, Brambles, Aracadium Lithium, Monash IVF, Perseus Mining, Pexa Group, Sandfire Resources, Block and more
Aussie Broadband reports mixed 1H results, downgrades full-year view (Announcement)
Paladin Energy reports 1H net profit from cont ops of $76.8m (Announcement)
Saint-Gobain’s $4.3bn bid for CSR two years in the making (AFR)
Bega Cheese upgraded to Overweight from Neutral at Barrenjoey, target increased to $4.40 from $3.50
Eagers Automotive upgraded to Buy from Hold at Bell Potter, but target decrease to $15.20 from $15.65
Iluka Resources downgraded to Underperform from Neutral at BofA, target cut to $6.85 from $7.0
Super Retail Group upgraded to Neutral from Underweight at JPMorgan, target increased to $16.10 from $15.50
Tabcorp upgraded to Outperform from Neutral at Macquarie, but target cut to $0.85 from $0.90
S&P 500 finished higher, near best levels and logged a new all-time high
Nasdaq at record highs, marks best session in more than a year
Nvidia opens 11.3% higher, rallies intraday to close up 16.4%
Nvidia driving broad-based gains across semiconductor stocks and megacap names like Meta (+3.9%), Amazon (+3.6%) and Microsoft (+2.4%)
Cool stat – Nvidia makes up over 4% of the S&P 500 and a little over 5% of the Nasdaq
Nvidia's outlook saves broader market as AI hype continues (Bloomberg)
Market price in Fed's outlook on rates, reins in aggressive bets on cuts (FT)
Bond traders positioning for renewed selloff (Bloomberg)
Nikkei overtakes 1989 high to hit all-time high (Bloomberg)
Nvidia revenue and guidance exceed lofty expectations on surging AI demand (Reuters)
Rivian to cut 10% of workforce as production guidance underwhelms (Bloomberg)
Intel to produce high-end chips for Microsoft (FT)
Google to will pause the image generation of people (Bloomberg)
FOMC minutes stress need for greater confidence on inflation (Bloomberg)
Fed Governor Bowman says time to cut rates 'certainly not now' (Bloomberg)
BOJ watchers fall in line with April rate hike scenario (Reuters)
Eurozone money markets push back ECB rate cut expectations (Bloomberg)
BoE's Greene says needs more evidence that UK inflation becoming less entrenched before backing rate cuts (Bloomberg)
White House's proposed sanctions on Russia in response to Navalny's death unlikely to include aggressive penalties (Politico)
Biden administration planning to strengthen restrictions on China's Semiconductor Manufacturing International Corp in wake of Huawei Mate 60 Pro (Reuters)
Israeli officials push ahead with Rafah offensive though sources say no clear plan for safe evacuation of civilians (Bloomberg)
Fri 23 Feb 24, 8:22am (AEDT)
Nvidia's results dropped around this time on Thursday – So I figured we'd see a pretty strong response for local tech-related names like Megaport (ASX: MP1), Life360 (ASX: 360) and NextDC (ASX: NXT).
Interestingly, most of these names opened flat or lower on Thursday. It wasn't until around 11:00 am AEDT that they started to realise "oh hang on ... I think the AI trade is back" and started to rally. Classic ASX.
Let' see if this strength kicks on today.
Fortescue (ASX: FMG) shares finished 2.1% higher on Thursday after its reporting better-than-expected half-year revenue, earnings and dividends. Numbers aside, here are the key takeaways from its earnings Q&A.
Recovering from the late December derailment is on track, with additional rail capacity helping to recover lost tonnes.
Pilbara decarbonisation program is expected to ramp up in H2, with overall spend for the year within guidance.
Capital allocation framework continues to prioritise return of capital to shareholders and dividend policy of 50% - 80% remains unchanged
Two hydrogen projects in Norway and Brazil are being fast-tracked, with Norway likely next for final investment decision (FID)
No significant issues reported regarding custom clearance delays in China and iron ore demand remains robust despite anticipated scrap supply increase
Qantas (ASX: QAN) shares opened in positive territory on Thursday but sold off intraday to close 6.8% lower. Numbers for the first-half were largely in-line with consensus but generally 3-5% below Jarden estimates. The company's loyalty earnings guidance and FY25 capex also missed expectations.
Return to pre-COVID earnings seasonality expected, with cost focus and transformation program set for H2
Commitment to margin targets reiterated, with confidence in domestic market structure and ongoing transformation work
New aircraft delivery delays due to supply chain issues but flexibility allows for network adjustments
A$230 million customer experience investment confirmed as ongoing and improvements seen in on-time performance and customer satisfaction.
Operating cash flow expected to improve in H2 and beyond, supporting both business investment and shareholder distributions
A$400M buyback commitment reaffirmed but timing dependent on market liquidity
Consultants engaged to enhance operational performance using global best practices and improvement seen but aim is for better than pre-COVID levels
ASX corporate actions occurring today:
Trading ex-div: Bluescope Steel (BSL) – $0.25, Fiducian Group (FID) – $0.18, GWA Group (GWA) – $0.07, Lendlease (LLC) – $0.06, GUD Holdings (GUD) – $0.185
Dividends paid: Goodman Group (GMG) – $0.15
Listing: None
Economic calendar (AEDT):
12:30 pm: China House Price Index (Jan)
8:00 pm: Germany IFO Business Climate (Feb)
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