Market Wraps

Morning Wrap: US stocks retreat, Alibaba to split US$220bn empire into six units, ASX to fall

Wed 29 Mar 23, 8:36am (AEST)

ASX 200 futures are trading 26 points lower, down -0.38% as of 8:20 am AEDT.

A rather uneventful session on Wall Street overnight, Alibaba plans to split its empire into six main units that will individually raise funds and explore initial public offerings, Australian retail sales show still-solid demand for food related industries but a pullback in discretionary spend and Australia's monthly CPI indicator is due at 11:30 am AEDT.

Let's dive in.

Overnight Summary

Wed 29 Mar 23, 8:36am (AEDT)

Name Value Chg %
Major Indices
S&P 500 3,971 -0.16%
Dow Jones 32,394 -0.12%
NASDAQ Comp 11,716 -0.45%
Russell 2000 1,753 -0.06%
Country Indices
Canada 19,658 +0.17%
China 3,245 -0.19%
Germany 15,142 +0.09%
Hong Kong 19,785 +1.11%
India 57,614 -0.07%
Japan 27,518 +0.15%
United Kingdom 7,484 +0.17%
Name Value Chg %
Commodities (USD)
Gold 1,975.30 +1.10%
Iron Ore 126.01 -
Copper 4.077 -0.04%
WTI Oil 73.58 +1.06%
AUD/USD 0.6708 -0.01%
Bitcoin (AUD) 40,644 +0.45%
Ethereum (AUD) 2,640 +3.26%
US 10 Yr T-bond 3.564 +1.02%
VIX 20 -3.06%

US Sectors

Wed 29 Mar 23, 8:36am (AEDT)

Sector Chg %
Energy +1.45%
Industrials +0.54%
Materials +0.50%
Utilities +0.29%
Consumer Staples +0.22%
Financials -0.06%
Consumer Discretionary -0.11%
Real Estate -0.26%
Information Technology -0.46%
Health Care -0.57%
Communication Services -1.02%


SPX intraday
A choppy yet uneventful day (Source: TradingView) 


  • S&P 500 closes lower but above session lows of -0.65%

  • Uneventful day where the market is waiting for more meaningful catalysts as the banking sector begins to stabilise


  • Alibaba (+14.3%) announced plans to split into six business groups (CNBC)

  • Occidental Petroleum (+4.3%) shares rallied after Warren Buffett’s Berkshire Hathaway bought another 3.7m shares for US$216, raising its ownership to 23.6%

  • Apple (-0.4%) rolls out new BNPL service "Apple Pay Later" (CNBC)

  • Lucid (-7.3%) plans to lay off 18% of workforce (Business Insider)


  • Treasury officials pledge to protect deposits if necessary (Bloomberg)


  • Australian retail sales growth cool as rate hikes crimp spending (Bloomberg)

  • South Korea retail sales up 7.9% in February and return to pre-Covid levels (Business)

  • NY Fed survey shows sharp drop in short-term home price expectations (NY Fed)

Industry ETFs

Wed 29 Mar 23, 8:36am (AEDT)

Description Last Chg %
Strategic Metals 75.43 +6.01%
Uranium 18.88 +2.17%
Copper Miners 36.75 +1.77%
Nickel 31.38 +1.58%
Lithium & Battery Tech 60.57 +1.14%
Steel 61.14 +1.08%
Silver 21.22 +0.99%
Gold 181.95 +0.82%
Aluminum 49.1251 -0.32%
Global Jets 17.52 +0.91%
Aerospace & Defense 112.3 +0.49%
Biotechnology 126.03 +0.02%
Cannabis 9.08 -2.20%
Description Last Chg %
Bitcoin 16.6 +1.69%
CleanTech 14.9 -0.40%
Solar 72.92 -0.49%
Hydrogen 10.28 -1.95%
E-commerce 17.06 +0.76%
Electric Vehicles 22.6 +0.40%
Video Games/eSports 51.58 -0.25%
Robotics & AI 24.48 -0.49%
Cloud Computing 17.24 -0.64%
FinTech 19.81 -0.66%
Semiconductor 424.41 -0.75%
Sports Betting/Gaming 15.48 -0.78%
Cybersecurity 22.53 -0.93%

Deeper Dive

S&P 500: Analyst thoughts and weightings

A few interesting comments from some pretty big names:

  • JPMorgan's Kolanovic: “Our view remains that Q1 will likely mark the high point for equities this year ... commercial real estate stresses appear to be compounding, amplified by banking shocks ... Several geopolitical crises are building ... Bond yields whipsawed ... by very poor liquidity conditions.”

  • JPMorgan: “Why are equities holding up so well? ... The weightings of mega cap tech names have helped prop up the S&P 500 and the banking crisis has triggered a rotation” into tech.

  • Morgan Stanley's Mike Wilson: “Given events of past few weeks, guidance looking more and more unrealistic, and equity markets are at greater risk of pricing in much lower estimates ahead of any hard data changes ... bond market pricing recession, S&P 500 will soon enough."

  • Goldman Sachs: “Our baseline expectation is that reduced credit availability will prove to be a headwind ... not a hurricane that pushes the economy into recession. ... we have moved our subjective probability that the economy enters a recession in the next 12 months back up to 35%.”

Broker Research: A pinch of salt

Twitter is one of my favourite sources for market insights and entertainment. I came across this interesting snippet about broker notes.

Source: @JKoozi1

Here are some of my personal thoughts about broker notes:

  • Not all research notes are made equal or have the same impact. For example, Macquarie posted a bullish graphite note on Monday which initiated coverage of Syrah with a Buy rating, sending the stock 4.7% higher. Though most broker notes tend to see very little impact on share prices

  • With that in mind, you kind of need to research the research and understand whether or not that specific broker/note can impact the market

  • The analysis and insights are interesting and as the above snippet says, they're smarter, well researched and have more resources/sources to pull from

  • However, the ratings and share price targets is often the questionable part

  • In a bear market, ratings and share price targets tend to try to be positive and progressively shift lower with the market, which kind of defeats the purpose of it being a price target

Sectors to Watch

Not a whole lot happened overnight. The banking crisis is starting to stabilise (for now) and it's a relatively quiet week on the economic data front. Australia's monthly inflation indicator will likely be a major catalyst for the local market and consensus expects CPI to ease from 7.4% year-on-year in January to 7.1% in February.

In terms of sectors to watch:

  • Lithium: Today is the day after the big Liontown takeover catalyst. Do we see more short covering or perhaps a little pullback? It will be interesting to see what kind of implications this takeover has for the sector.

  • BNPL: Apple launched Apple Pay Later in the US on Tuesday. Affirm, the largest US-listed BNPL company, fell 7.3% while Block eased 1.0%.

  • Energy: Oil prices rose 1.0% overnight after a massive 5% rally the day before. Energy was the best performing sector on the S&P 500, up 1.45%. Do we see some more strength for local oil and gas names?

Key Events

ASX corporate actions occurring today:

  • Trading ex-div: Emeco Holdings (EHL) – $0.013, Civmec (CVL) – $0.02 

  • Dividends paid: Fortescue Metals (FMG) – $0.75, Sequoia Financial (SEQ) – $0.007, Worley (WOR) – $0.25, Universal Store (UNI) – $0.14, Northern Star (NST) – $0.11, Aurizon (AZJ) – $0.07, Santos (STO) – $0.224, ASX (ASX) – $1.16

  • Listing: Leeuwin Metals (LM1)  

Economic calendar (AEDT):

  • 11:30 am: Australia Monthly CPI Indicator

  • 5:00 pm: Germany GFK 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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