Market Wraps

Morning Wrap: ASX 200 to rise, S&P 500 bounces after CPI selloff+ Telstra, Wesfarmers results

Thu 15 Feb 24, 8:34am (AEST)

ASX 200 futures are trading 52 points higher, up 0.69% as of 8:30 am AEDT.

Major US benchmarks recovered some of yesterday's inflation-triggered selloff, Bitcoin crosses the US$1 trillion market cap level for the first time in more than two years, markets expect only four Fed rate cuts this year (from six just a few weeks ago), Nvidia briefly overtakes Apple as the third-largest company in the world, UK inflation unexpectedly held steady in January and a long list of companies are due to report today, including Telstra and Wesfarmers.

Let's dive in.


S&P 500 intraday
S&P 500 higher and finished at best levels (Source: TradingView)


Note: There was an error in overnight data tables. They will be back tomorrow.

  • ASX 200 set to bounce after a strong lead from Wall Street

  • Companies due to report today include Corporate Travel, Goodman Group, Origin Energy, South32, Telstra, Treasury Wines, Wesfarmers and more

  • Telstra 1H24 consensus numbers include $11.72bn revenue and $4.02bn EBITDA

  • Wesfarmers 1H24 consensus numbers include $2.2bn EBITDA and $1.36bn NPAT

  • Magellan may announce new CEO with today’s earnings release (The Australian)

  • Fletcher Building downgraded to Neutral from Buy at Goldman Sachs, target price cut to $3.70 from $4.65

  • IDP Education downgraded to Neutral from Overweight at JPMorgan, target price cut to $23.00 from $25.00 

  • Graincorp upgraded to Add from Hold at Morgans, target price increased to $8.55 from $8.08

  • Evolution Mining upgraded to Buy from Outperform at CLSA, target price increased to $3.75 from $3.50 


  • S&P 500 +0.96%, Dow +0.40%, Nasdaq +1.30%, Russell 2000 +2.44%

  • S&P 500 higher, finished near best levels but still down 0.4% since last Friday’s inflation report

  • Russell 2000 bounces but likewise, still down 1.6% since the CPI selloff

  • Selloff into overnight bounce suggests an orderly drawdown/no signs of panic selling

  • Market repricing toward higher-for-longer Fed policy stance, now expecting only 4 rate cuts by year-end, down from 6 a few weeks ago

  • Economists argue that pieces of the disinflation narrative remain in place such as softening wage growth, rising productivity, ongoing goods disinflation and falling inflation expectations 

  • Nvidia briefly overtakes Apple as third-largest company after overtaking Amazon earlier this week (Reuters)

  • Global bond rally sparked by Powell's December pivot evaporates (Bloomberg)

  • Credit risk metrics remain suppressed despite repricing of Fed rate cuts Bloomberg)

  • Oil falls after US crude stockpiles rose last week more than expected (Reuters)


  • Walmart considering acquiring Vizio for over US$2bn (Reuters)

  • Jeff Bezos unloads another US$4bn of Amazon stock (Bloomberg)

  • Airbnb posts revenue gain, sees strong demand ahead (AP)

  • Lyft soars more than 60% before correction to margin growth outlook (FT)

  • Instacart to lay off 250 employees or 7% of workers, as part of restructuring (CNBC)

  • Softbank and Nvidia to establish industry group to commercialise new AI technology (NHK)

  • Siemens to make transformers in US to meet rising power demand (Bloomberg)

  • China's BYD plans new electric vehicle plant in Mexico (Reuters)

  • German manufacturer Continental to cut 7,150 jobs (DW)

  • Morgan Stanley to lay off several hundred in wealth-management division (WSJ)


  • ECB's de Guindos says wage growth, corporate margins and geopolitical situation warrant caution before easing rates (Bloomberg)

  • BoJ's anticipated end to negative rates faces little political opposition (Bloomberg)


  • Head of the US House China committee will visit Taipei in a show of support for Lai Ching-te (FT)

  • Germany ups international pressure on Israel not to attack Rafah (Bloomberg)

  • Putin's suggestion of Ukraine ceasefire rejected by United States (Reuters)

  • NATO defense chiefs gather to talk Ukraine (Politico)

  • Trump adviser proposes new tiered system for NATO members who don't pay up (Reuters)


  • Developer China South City shares tumble 37% to record low after warning of multiple bond defaults (SCMP)

  • Fund managers want Beijing to do more to keep the US$380bn rally in Chinese and Hong Kong stocks going (SCMP)

  • MSCI cuts 66 companies from China Index as equities slump (Nikkei)


  • UK inflation unexpectedly held steady in January (Bloomberg)

Key Events

ASX corporate actions occurring today:

  • Trading ex-div: Korvest (KOV) – $0.25, Scentre Group (SCG) – $0.08

  • Dividends paid: None

  • Listing: None

Economic calendar (AEDT):

  • 10:50 am: Japan GDP (Q4)

  • 11:30 am: Australia Unemployment Rate (Jan)

  • 6:00 pm: UK GDP (Q4)

  • 12:30 am: US Retail Sales (Jan)

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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