Market Wraps

Morning Wrap: ASX 200 to rise, Uranium ETF hits 10-year high, Webjet reports 40% earnings surge

Wed 22 May 24, 8:42am (AEST)

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

Some may say that it's lonely at the top, but in this case, it's lonely at the bottom for JPMorgan's Marko Kolanovic. Kolanovic, who was once one of Wall Street's biggest bulls, is now the last major stock market bear standing following Morgan Stanley's revision yesterday. Kolanovic is keeping his bearish view on stocks despite the S&P 500 and NASDAQ hitting more record highs.

And it's not just stocks which are smashing records - gold, silver, copper, and now, a key uranium ETF has hit a 10-year high.

On our bourses, Webjet has already released its earnings (more details below) while Telix Pharmaceuticals and Eagers Automotive host their AGMs. And there's already been two early broker moves.

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 Tuesday 21 May 2024
It may have been a slow grind but the bulls won out in the end. (Source: TradingView)

OVERNIGHT MARKETS

  • S&P 500 notches fresh peak as U.S. stocks edge higher ahead of Nvidia earnings (Nvidia reports overnight US time)

  • S&P 500 and Nasdaq close at fresh records, Dow remains below 40K

  • European markets close lower as positive momentum fades

  • Treasury yields pull back as investors weigh inflation, interest rate outlook

  • Oil prices drift lower but remain stuck in narrow range as market struggles to find catalysts

  • Gold prices cool near record peak as dollar holds footing

INTERNATIONAL STOCKS

  • Some of Nvidia's biggest customers assisting in development of Triton software system to break chipmaker's stranglehold on AI market

  • Dimon outlines JPMorgan succession plans and share repurchase restraints

  • Palo Alto Networks falls on underwhelming billings outlook

  • Zoom boosts full-year profit and revenue forecasts amid strong demand and AI integration

  • Alibaba slashing prices for AI services in potential start of price war in China's AI market

  • ASML and TSMC have contingency plans to disable chipmaking machines in case China invades Taiwan

MORE ON THE MARKETS

  • JPMorgan is the last bear on Wall Street: Kolanovic sticking to his bearish outlook as Morgan Stanley's Wilson boosts S&P price target

  • Bond king Jeffrey Gundlach still sees a U.S. recession coming

  • Uranium ETF soars to 10-year high on rising demand and Russia import ban

  • EU real estate funds experience significant withdrawals amid valuation concerns

  • Geopolitical tensions and China demand send Gold to record high while Silver also surges

  • Yen slump exacerbated by energy, raw materials imports and related outflows of money

  • UBS says it’s time to move out of cash

ECONOMY

  • Britain’s inflation rate could be about to drop below the Bank of England’s 2% target

  • International investors avoiding German property deals amid worst market crisis in a generation

  • South Korea exports up nearly 18 y/y over first 20 days of May

  • Australia consumer confidence dips in May amid inflation fears

  • Australia feels pinch of rising inflation despite government efforts

  • Fed officials repeat too early to tell if inflation is trending to 2% target

  • Federal Reserve urged to address stigma and accessibility issues of discount window lending facility

  • RBA weighs risk of over-tightening amid inflation concerns in its latest Meeting Minutes

ASX TODAY

  • Webjet has already handed down its full year earnings report. Here's what you need to know:

    • Bookings +21% to 8.66 million, total transaction values (TTV) +29% to $5.59 billion

    • Underlying EBITDA +40% to $188.1 million

    • Targeting $5 billion in TTV in FY25 and management says they are "tracking ahead of that target". The company continues to target $10 billion in TTV by 2030

    • However - "trading for the first 7 weeks of FY25 has been subdued reflecting cost of living pressures"

  • Wilsons lifts Technology One price target by 6% to $19.31 per share (OVERWEIGHT rating maintained)

  • Citi slashes Sonic Healthcare price target from $31 to $25 per share (shares closed 6% lower yesterday following an earnings downgrade)

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:

  • Orica Ltd (ORI) - 23 May - $0.19

  • Aristocrat (ALL) - 23 May - $0.36

  • Whitefield (WHF) - 24 May -$0.102

Economic releases:

  • Noon – NZD – Official cash rate, RBNZ monetary policy statement, rate statement – followed by press conference

  • 4:00 pm – GBP – CPI, core CPI, PPI input/output

  • Midnight – USD – existing home sale, crude inventories

  • Tomorrow at 4:00 am – FOMC meeting minutes

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.

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