Market Wraps

Morning Wrap: Nasdaq up almost 10% in 2023, US-listed BNPL stocks extend gains, ASX to rise

Tue 24 Jan 23, 8:40am (AEST)

ASX 200 futures are trading 25 points higher, up 0.33% as of 8:20 am AEDT.

Major US benchmarks continue to climb ahead of a busy earnings week, investors continue to rotate into growth and tech names, US earnings season has so far been softer-than-expected and is the BNPL rebound set to continue?

Let's dive in.

Overnight Summary

Tue 24 Jan 23, 8:40am (AEST)

Name Value Chg %
Major Indices
S&P 500 4,020 +1.19%
Dow Jones 33,630 +0.76%
NASDAQ Comp 11,364 +2.01%
Russell 2000 1,890 +1.24%
Country Indices
Canada 20,632 +0.63%
China 3,265 +0.76%
Germany 15,103 +0.46%
Hong Kong 22,045 +1.82%
India 60,942 +0.53%
Japan 26,906 +1.33%
United Kingdom 7,785 +0.18%
Name Value Chg %
Commodities (USD)
Gold 1,927.00 -0.06%
Iron Ore 122.16 -
Copper 4.244 -0.18%
WTI Oil 81.51 -0.16%
AUD/USD 0.7025 +0.91%
Bitcoin (AUD) 32,678 +1.73%
Ethereum (AUD) 2,322 +0.52%
US 10 Yr T-bond 3.525 +1.18%
VIX 20 -0.55%

US Sectors

Tue 24 Jan 23, 8:40am (AEST)

Sector Chg %
Information Technology +2.28%
Communication Services +1.78%
Consumer Discretionary +1.57%
Financials +1.12%
Industrials +1.09%
Materials +0.32%
Consumer Staples +0.30%
Health Care +0.28%
Real Estate +0.24%
Utilities +0.04%
Energy -0.20%


  • The S&P 500 faded from session highs of 1.68% – there may be some technical factors in play as it hovers around closely watched 200-day moving average

  • Bullish factors bolstering the market include: Slowdown in the pace of Fed tightening, disinflation momentum, a faster China reopening and a rise in soft-landing expectations

  • Growth and tech continue to outperform, with names such as Tesla, Netflix, Meta and Apple up between 2-6%

  • Cost-cutting and layoff announcements seem to be generating further buying interest in these growth names

  • Q4 earnings season appears to be fairly lackluster, with S&P 500 earnings expected to fall -4.6%, according to FactSet

  • Only 67% of results have surpassed consensus expectations, below the five-year average of 77%, according to FactSet

  • 60% of stocks advanced overnight

  • 35% trade below their 200-day moving average 


Qualcomm (+6.3%) was among several semiconductor companies that received an upgrade from Barclays. The investment bank expects to see a recovery in PC sales in the second half of 2023. 

Salesforce (+3.0%) shares rallied after activist investor Elliot Management built a multi-billion dollar stake in the company. 

Apple (+2.1%) continues to rally on expectations that a China reopening will help recover iPhone sales. Morgan Stanley said the stock is a top pick and views the reopening as having ‘important implications’ for both demand and supply.

Spotify (+2.0%) plans to lay off 6% of its global workforce of about 600 employees. 

  • “To offer some perspective on why we are making this decision, in 2022, the growth of Spotify’s OPEX outpaced our revenue growth by 2 times.” - CEO Daniel Ek 


Eurozone consumer confidence improved to -20.9 in January from -22.2 last December. It’s also the highest since February 2022 on hopes of lower energy prices.

Euro Area Consumer Confidence - December 2022 Data - 1985-2021 Historical
Source: TradingEconomics

European Central Bank President Lagarde continued her hawkish rhetoric, highlights include:

  • "We have made it clear that ECB interest rates will still have to rise significantly at a steady pace to reach levels that are sufficiently restrictive, and stay at those levels for as long as necessary."

  • "In other words, we will stay the course to ensure the timely return of inflation to our target."


Tech strength: The Nasdaq is up around 9.6% year-to-date. So what happens when the Nasdaq is up in each of the first three weeks of the year?

Nasdaq performance

Falling recession odds: The likelihood of a recession is falling for the first time in over a year. Still, the Leading Economic Index (LEI) is in its 10th consecutive month of decline, which would be a record without a recession. Has the LEI got it wrong this time or is GDP contraction still on the horizon?

US recession odds

Industry ETFs

Tue 24 Jan 23, 8:40am (AEST)

Description Last Chg %
Strategic Metals 89.71 +3.49%
Lithium & Battery Tech 65.82 +2.70%
Uranium 22.3 +1.17%
Nickel 37.62 +0.88%
Aluminum 54.299 +0.74%
Gold 179.29 +0.18%
Copper Miners 41.28 0.00%
Steel 65.61 -0.29%
Silver 22.02 -2.00%
Aerospace & Defense 109.35 +1.14%
Global Jets 20.24 +0.05%
Cannabis 11.93 +3.35%
Biotechnology 135.47 +0.97%
Description Last Chg %
Bitcoin 14.19 +3.38%
Hydrogen 12.73 +4.79%
CleanTech 16.16 +3.53%
Solar 79.47 +2.69%
Semiconductor 385.53 +5.02%
Video Games/eSports 47.12 +3.16%
Electric Vehicles 22.4 +3.13%
Cloud Computing 17.13 +3.04%
E-commerce 19.03 +2.68%
Sports Betting/Gaming 15.72 +2.35%
FinTech 21.35 +2.20%
Robotics & AI 22.87 +1.84%
Cybersecurity 21.3 +1.83%
Last year, I wrote an explainer for our ETF table (includes tickers). You can check it out here.

ASX Morning Brief

Major US benchmarks are showing some signs of a 'change of character' as the S&P 500 flirts around the 200-day moving average.

We're also seeing an improved strength among individual stocks, with 66% of S&P 500 rallying back above their 200-day moving averages, up from 50% earlier this year.

As for the ASX 200, it continues to grind higher and believe it or not, around 2.3% away from all-time highs. The market continues to defy the idea of a pullback. But the question remains, in the event of one, will we see buying support or do things fall apart like previous rallies?

The Morning Wrap is going through a review of its own as we figure out how to better optimise its sections. The first thing we're thinking about is the below 'Sectors to watch' segment. I want to ask something a bit radical - How would you feel if we removed it entirely (with no replacement).

Ok maybe that was a little too intense, but seriously, has it been useful? Accurate? Let me know at [email protected].

Sectors to watch

BNPL: Monday was a crazy day for BNPL names, with Zip and Sezzle up 22.8% and 38.9% respectively. Overnight, US-listed BNPL names like Affirm and Block continued to rally, up 7-8%. Does this mark another day of soaring optimism for the beleaguered sector?

Tech: By extension of the above, we also saw the Nasdaq continue to grind higher, up around 2%. It closed towards session highs unlike the S&P 500. Our ETF list shows several sub-sectors such as Semis, Bitcoin, Cloud, eCommerce and FinTech up more than 2%. Some local heavyweights like Wisetech, Xero, Block and Altium could see some positive flow.

Lithium: The VanEck Rare Earths/Strategic Metals ETF rallied through the 200-day moving average. Do we continue to see a recovery in the lithium space? Its also worth pondering on whether or not a recovery will be even across all names. For example, will established producers like Pilbara Minerals and Allkem lead while explorers lag?

REMX chart
VanEck Rare Earths/Strategic Metals ETF (Source: TradingView)

Key Events

Key events 

ASX corporate actions occurring today:

  • Trading ex-div: None 

  • Dividends paid: Eildon Capital (EDC) 

  • Listing: High-Tech Metals (HTM)

Economic calendar:

  • 9:00 am: Australia manufacturing and services PMI

  • 6:00 pm: Germany consumer confidence

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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