Jarden Brief: US indices trading higher

The S&P 500 traded 1.0 per cent higher. Photo / AP

Keeping you up to date with the latest market moves, in association with Investment firm Jarden

International
US

All major US indices were trading higher at the time of writing. The S&P 500, the Nasdaq and the Dow Jones Industrial Average, all increased 0.3 per cent.

Sectors were mixed. Trading in the green and leading the sectors was energy, up 2.6 per cent. Technology, industrials, and health all followed with a 0.7 per cent rise. The laggard sectors were consumer discretionary and real estate, dropping 1.0 per cent and 0.5 per cent, respectively.

APA Corporation was the top performing stock of the S&P 500 at the time of writing, advancing 6.0 per cent. The company engages in hydrocarbon exploration and continues its strong start to the week. At the time of writing, the share price was trading US$0.45 lower than its 52-week high, which it reached yesterday.

J.M Smucker rose 5.3 per cent. The food producer's revenue in the latest quarter beat analyst's estimates despite stating inflation, supply chain issues, and other factors would continue to impact results and increase uncertainty.

Next in line was multinational oil and gas corporation Exxon Mobil, rising 4.2 per cent to US$103.00 - its highest level since August 2014. The company released its earnings result last Friday, which reported revenue of US$90.5 billion for the quarter, up 53.0 per cent compared to the same quarter last year. Earnings per share (EPS) was US$2.07, for the quarter.

Mosaic Co. was the largest underperformer of the index at the time of writing, declining 5.5 per cent. The agriculture company continues to experience a volatile week.

E-commerce company Etsy fell 3.7 per cent. Etsy operates online marketplaces. On Monday, the company announced the launch of a purchase protection programme. The programme will enable buyers to receive a full refund for purchases on Etsy in cases that they don't match the item description, arrive damaged, or never arrive. Etsy plans to invest at least US$25.0 million per year into the purchase protection programme.

Rounding out the bottom performers was Target Corporation, trading 3.5 per cent lower at the time of writing. The retailer plans to drop prices and cancel orders to clear out unwanted inventory, announcing a series of steps on Tuesday. The latest move shows how inflation and changing consumer behaviour seem to be shifting the business outlook for many retailers.

Rest of the World

Asian markets were mixed at the time of writing. The Nikkei rose 0.1 per cent, and the Shanghai Composite increased 0.2 per cent. While the Hang Seng fell 0.6 per cent.

European markets were in the red. The FTSE dropped 0.1 per cent, while the DAX and the CAC both fell 0.7 per cent.

Commodities

Gold traded 0.5 per cent higher to US$1,852.1 per ounce. Followed by silver, which rose 0.4 per cent to US$22.2 per ounce.

WTI Crude Oil underperformed, falling 0.5 per cent to US$117.8 per barrel.

The cryptocurrency market was largely in the red at the time of writing. Bitcoin was down 4.7 per cent and Ethereum was trading 4.4 per cent lower.

The US 10-year Treasury rate was down seven basis points to 2.972 per cent, alongside a seven basis point fall in the 30-year rate, to 3.118 per cent.

New Zealand

The NZX 50 closed Tuesday in the red, down 2.0 per cent.

Software Company Serko led the market, up 1.7 per cent.

Ryman Healthcare gained 1.3 per cent. The company announced that Cheyne Chalmers has been promoted to CEO of Ryman's kiwi business. Chalmers has been Ryman's Chief Operations Officer.

Cancer diagnostics company Pacific Edge fell 5.1 per cent and Mainfreight lost some of last week's gains, decreasing 4.2 per cent.

Wine company Delegat Group announced the conclusion of its 2022 harvest. The group harvested 44,861 tonnes, 20 per cent higher than its 2021 yield of 37,470 tonnes, however fell short of its expected yield by 7 per cent.

Chief Executive of Goodman Property Trust John Dakin will step down at the end of the year, remaining a member of the board, and James Spence will be promoted to company CEO. Goodman Property fell 1.4 per cent yesterday, to close at $2.05.

On Friday, March quarter building activity was released by Stats NZ. The volume of building activity rose 3.2 per cent compared to the December quarter. Residential and non-residential building activity both rose, up 3.5 per cent and 2.7 per cent, respectively.

Australia

The ASX 200 fell 1.5 per cent to 7096 points at yesterday's close.

All sectors were in the red with the largest losses being seen by information technology (-3.0 per cent), real estate investment trusts (-3.0 per cent), and consumer discretionary (-2.3 per cent).

Leading the market was copper mining firm, Sandfire Resources, up 3.4 per cent following the release of positive guidance at a conference presentation on Monday. Over the past five years, the ASX 200 index gained 25.0 per cent, while the ASX 200 Resources index has grown by 81.1 per cent.

Poultry producer, Inghams, and petroleum company Ampol increased 3.2 and 2.4 per cent, respectively.

On the flip side, Zip Co, a financial technology company, dropped 14.4 per cent. It was followed by biomedical company Clinuvel Pharmaceuticals and lifestyle developer Ingenia Communities, which also fell 6.7 and 5.7 per cent, respectively.

Yesterday, Australia's Reserve Bank Governor Philip Lowe announced a rate hike of 50 basis points; the ASX 200 then fell 0.7 per cent within five minutes of the announcement. This rate increase moves the RBA Official Cash Rate to 0.85 per cent, a far cry from the 0.1 per cent rate seen in May. The rise surprised consensus estimates, which were leaning towards expectations of a 25 to 40 basis point increase.

• For more information on the latest market moves, get in touch with Jarden.

Jarden is advising Zip Co on its definitive agreement to acquire Sezzle.

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