Federal Reserve Chair Jerome Powell said there is more restriction coming, reiterating the position taken by policymakers at their June meeting.
The Dow Jones Industrial Average was down 0.3 per cent, while the Nasdaq traded 0.1 per cent higher at the time of writing.
Tech-heavy stocks such as Nvidia and Advanced Micro Devices dropped 1.7 per cent and 0.1 per cent respectively, after the Wall Street Journal reported the Biden administration was considering possible restrictions on exports of artificial intelligence chips to China.
Cheerios and the Betty Croker owner General Mills fell 5.0 per cent following mixed fiscal fourth-quarter results.
Despite posting US$1.12 in adjusted earnings per share and exceeding market consensus estimates, revenue of US$5.0 billion came in lower than analysts’ forecasts.
Shares of the robotics and drone maker AeroVironment jumped 5.1 per cent after topping market expectations for its fiscal Q4 report.
After market close Tuesday, the company reported revenue of US$168 million, compared to a loss of US$160m for the same period last year.
Management is anticipating full-year revenue to come in between US$630 - $660m.
Cruise liners continued to rally, with Carnival up nearly 9.0 per cent, after reporting a smaller-than-expected loss for its second quarter guidance.
Norwegian Cruise Line also gained 7.5 per cent and Royal Caribbean added more than 1.0 per cent during Wednesday’s trading session.
The sector seems to be slowly taking a turn from the Covid-19 pandemic.
New Zealand
The NZX 50 closed higher, up 0.7 per cent at the end of Wednesday’s trading session.
Travel management software provider Serko revealed its upbeat start to the financial year as strong travel demand remains on track.
At the annual shareholders’ meeting, management also reaffirmed its FY24 total income guidance to range between $63m and $70m, whilst spend is expected to come in at $86m to $90m. Shares of Serko closed 1.1 per cent higher yesterday.
Goodman Property Trust rose 0.9 per cent after telling shareholders it had increased cash earnings 6.6 per cent to $99.6m, up nearly 3.0 per cent on original guidance.
Due to favourable occupancy rates, growing rental rates and new developments, Goodman anticipates a further 4.0 per cent rise in cash earnings for the coming year, to potentially reach 7.4 cents per unit.
Australia
Across the ditch, the ASX 200 rose 1.1 per cent yesterday, making it the biggest daily jump since April.
Ten of the eleven sectors ended in the green. The rally came after inflation figures slowed to a 13-month low, fuelling hopes the Reserve Bank of Australia may pause its interest rate hike trend.
Australia’s monthly consumer price index (CPI) rose 5.6 per cent in the year to May, down from 6.8 per cent in the month prior.
Data from the Australian Bureau of Statistics showed inflation had slowed, and the figures came in lower than economists’ expectations.
The decline was driven by lower fuel prices (-8.0 per cent over the year), and a drop in holiday travel and accommodation (-11.0 per cent in May).
The annual movement excluding such volatile items showed inflation falling to 6.4 per cent, down from April’s 6.5 per cent, indicating persistent price pressures. The result will play a part in the central bank’s interest rate decision expected early next week.
The property sector soared 2.2 per cent higher as investors hope the cooling in the annual rate of inflation may provide some relief for the debt-weighted industry.
On the flipside, dairy business Bega Cheese was the biggest laggard of the single stock movers.
Its shares tumbled 8.5 per cent, reaching a ten-year low. It extended Tuesday’s losses when the company reiterated that its projected profits for 2022-23 would be at the lower end of its guidance range.
Shares in Harvey Norman slumped 4.9 per cent after the electronics retailer warned shareholders it expects a fall in earnings this year following higher living costs and a sharp decline in consumer spending.
The company expects pre-tax profit excluding net property revaluation to come in between A$637m and A$704m for its financial year ending June 30, compared to A$943m last year.
Investors can expect a complete overview of Harvey Norman’s financial performance, including net profit after tax results and dividend payout, as the company discloses its full-year earnings on August 31.
Coming up today
US: Q1 GDP, Pending Home Sales, Initial Jobless Claims.
Eurozone: Consumer/Economic Confidence.
Australia: Retail Sales.
NZ: ANZ Business Confidence, Stride Property ASM.
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