Morning Wrap: ASX to rise despite Wall Street slump, US inflation rises in October, Fisher & Paykel Healthcare reports earnings miss

This could be one morning when the market doesn't keep the gains from the futures market. Tech stocks led Wall Street lower last night. Dell and HP delivered less-than-bullish-enough earnings forecasts, sending both those companies' share prices south by nearly 12%. And speaking of earnings misses, Fisher & Paykel Healthcare has just reported one on its bottom line and its FY25 guidance may leave a little more to be desired as well. Finally, Star Entertainment and Westgold Resources hold AGMs.

Let's dive in.

S&P 500 SESSION CHART

The S&P 500 recovers some of its losses from the mid-session low. (Source: TradingView)

OVERNIGHT MARKETS

• Major US benchmarks finished lower, weighed down by the Nasdaq 100. All of the Magnificent Seven slid, paced by Nvidia.

• October core PCE was in line with consensus, rising 0.3% m/m, while September core PCE was unrevised at 0.3%. This figure means the Fed is likely still on course to cut interest rates at its December meeting by 25 basis points.

• The US Dollar index index up 0.2%.

• Gold finished up 0.1%. Bitcoin futures declined by 3.6%, now sit back near the US$90K level. WTI crude settled down 0.2%, off best levels, after Lebanon truce announced.

STOCKS

• JPMorgan forecasts 10-15% Chinese yuan slide in the event of US-China trade war (Bloomberg)

• JPMorgan shifts to positive view on US stocks, sees S&P 500 rising in 2025 (Bloomberg)

• Reuters poll says global stocks will deliver more tamed gains in 2025 amid trade war overhang (Reuters)

• Top US automakers producing in Mexico potentially vulnerable to Trump tariffs (Reuters)

• Google seeking to reverse Epic Games' antitrust win over Play Store (Bloomberg)

POLITICS & GEOPOLITICS

• Trump transition team considering ex-SEC Commissioner Atkins to succeed Gensler (Bloomberg)

• President-elect Donald Trump poised to roll back President Joe Biden's years-long push to cancel student debt (Yahoo)

ECONOMY

• US consumers going to great lengths to get deals (Bloomberg)

• Poll of US property experts sees home affordability worsening over the coming year (Reuters)

• Mexican economy chief says US tariffs could cost America 400K jobs (Bloomberg)

• Average rate on a 30-year mortgage in the US slips to 6.81% - a year ago, it was 7.22% (AP)

• Bank of America says US is in a "low hire, low fire" environment (Yahoo)

ASX TODAY

• Fisher & Paykel Healthcare has already handed down its latest earnings report. Here are the key numbers:

  • H1 NPAT NZ$153.2 million (MISS)

  • Revenue NZ$951.2 million (BEAT)

  • Gross margin 61.9% (STEADY on one year ago)

  • Interim dividend 18.5 NZ cents per share, +3%y/y

  • Reaffirms FY NPAT Guidance of NZ$320-370 million (MISS) and FY Revenue Guidance of NZ$1.9 billion-2 billion (IN LINE)

• MAAS Group to launch $125 million raise at A$4.65/sh for acquisitions (AFR)

WHAT TO WATCH TODAY

• Star Entertainment, Sayona Mining, and Westgold Resources all hold AGMs.

• RBA Governor Michele Bullock will speak at the Annual CEDA Conference in Sydney at 7.55pm.

BROKER MOVES

• Harvey Norman Holdings downgraded to neutral from buy at UBS

Stocks trading ex-dividend: 

• 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%

• Mon 2 Dec: None

• Tue 3 Dec: Incitec Pivot (IPL) – 1.97%

• Wed 4 Dec: None

Other ASX corporate actions today: 

• Dividends paid: Champion Iron (CIA), Cobram Estate Olives (CBO)

• Listing: None

• AGMs: Star Entertainment (SGR), Westgold (WGX)

Economic calendar (AEDT):

• 11:00 pm: Germany Inflation (Nov)