Keeping you up to date with the latest market moves, in association with Investment firm Jarden
International
US
All three major US indices were trading lower at the time of writing. Earnings reports and the weaker outlook from large cap names likely weighed on markets this morning.
The S&P 500 fell 1.0 per cent, the tech-focused Nasdaq declined 1.8 per cent and the Dow Jones Industrial Average decreased 0.4 per cent.
Sectors largely underperformed, with only three out of 11 trading in the green.
Consumer discretionary and communication services were the worst performing sectors, down 3.2 per cent and 2.0 per cent respectively. On the other hand, healthcare led the sector gains, up 0.9 per cent.
Cybersecurity solutions provider Fortinet was the biggest underperformer of the single stock movers, falling 8.6 per cent. Fortinet announced its new built-in-the-cloud offering, which it said will coordinate security findings from an organisation's cloud footprint.
Walmart, the world's largest retailer, fell 7.9 per cent after issuing its second profit warning in 10 weeks.
Walmart's chief executive Doug McMillion stated: "The increasing levels of food and fuel inflation are affecting how customers spend".
McMillion said Walmart was having to drop prices in order to move inventory, especially clothing, which could now cause operating income to fall 13 to 14 per cent for the second quarter.
Following the news, other retail stocks were dragged lower, including Target, Costco and Amazon.
Rounding out the bottom performers was Carnival Corporation, which traded 6.5 per cent lower at the time of writing. The British-American cruise operator with a combined fleet of over 100 vessels across 10 cruise line brands announced yesterday that it will begin testing biofuel use aboard one of its AIDA Cruises ships.
On the flip side, 3M Corporation rose 5.8 per cent after the company posted second quarter profit of US$78 million.
The corporation operating in the fields of industry, worker safety, US healthcare and consumer goods disclosed plans to spin off its healthcare business into its own publicly traded entity.
Next in line was General Electric, rising 5.3 per cent at the time of writing. This follows the industrial company's second quarter financial results, with higher quarterly profit and positive cash flows, as recovery in the aviation industry drove up its jet engine business.
The company reported a 27.0 per cent year-on-year jump in revenue in the quarter through June.
Global fintech and payments company Fiserv rose 4.8 per cent, after the company announced that its net income in the second quarter more than doubled (to US$598 million) from a year earlier. The financial services technology provider also raised its full-year 2022 outlook.
Rest of the World
Asian markets were mixed at the time of writing. The Shanghai Composite improved 0.8 per cent, the Nikkei fell 0.2 per cent and the Hang Seng was up 1.7 per cent.
European markets closed in the red. The FTSE remained flat, the DAX declined 0.9 per cent and the CAC dropped 0.4 per cent.
Commodities
WTI Crude Oil traded 0.9 per cent lower to US$95.87 per barrel. Gold also underperformed, falling 0.2 per cent to US$1,716.5 per ounce.
The cryptocurrency market was in the red, with Bitcoin decreasing 3.7 per cent and Ethereum down 6.7 per cent.
The US 10-year Treasury rate fell three basis points to 2.79 per cent, whilst the 30-Year rate fell four basis points to 3.006 per cent.
New Zealand
The NZX 50 closed lower by 0.3 per cent yesterday.
The biggest gainer was Argosy Property rising 3.9 per cent. Precinct Properties followed suit, lifting 2.9 per cent, and retirement village operator Arvida Group finished with a 2.1 per cent increase.
On the other hand, travel management company Serko dropped 2.6 per cent, Synlait Milk declined 2.5 per cent and donations payment provider Pushpay Holdings fell 2.4 per cent.
Fonterra Shareholders' Fund (-0.7 per cent) announced the appointment of Emma Parsons to a newly developed role of Managing Director Strategy and Optimisation, effective from 1 August 2022.
The role will oversee the implementation of Fonterra's strategy and plans to achieve Fonterra's long-term aims.
Statistics NZ released its household living-costs price indices for the June 2022 quarter.
The quarterly change in inflation experienced was 1.8 per cent for all households, 1.4 per cent for beneficiaries, 1.5 per cent for super annuitants (retired people receiving national superannuation), 2.4 per cent for the highest-expenditure household group and 1.4 per cent for the lowest-expenditure household group.
Looking ahead to Thursday, ANZ is expected to release its Business Confidence data and annual general meetings are to be held by Ryman Healthcare, EROAD, Pacific Edge and Mainfreight.
Australia
The ASX 200 closed 0.3 per cent higher yesterday, at 6,807.3 points.
The energy sector performed best, having increased 2.8 per cent. This was followed by materials and telecommunication services, up 1.6 and 0.4 per cent, respectively.
Sector losses included consumer discretionary (-1.7 per cent), healthcare (-0.9 per cent), and industrials (-0.8 per cent).
Financial technology company ZIP Co led the market, up 19.9 per cent. Last week, the company released its June quarterly report, showcasing a rise in revenue of 27.0 per cent to A$160.1 million. Despite yesterday's positive movement, the company is still down 76.3 per cent since the start of the year.
Uranium mining firm, Paladin Energy, rose 8.1 per cent. Yesterday's quarterly report release announced the reopening of the Langer Heinrich Mine, located in Namibia.
Additionally, the firm revealed holdings of US$177 million in unrestricted cash.
Healthcare technology business Nanosonics increased 6.6 per cent. In a business update on Monday, the firm reported that revenue for 2022 was expected to be A$120.3 million, up 17.0 per cent from the previous year.
On the flip side, financial services software provider IRESS was down 6.6 per cent. The firm recently announced the retirement of its long-time Chief Executive Officer Andrew Walsh. At the same time, the company revealed first half profit expectations of A$80.3 million, an increase of 6.0 per cent.
Travel firm Flight Centre decreased 5.6 per cent. Despite a surge in demand for travel, the company's updated market guidance on Monday still expects earnings before income, tax, depreciation and amortization (EBITDA) to be a loss of approximately A$185 million for the 12 months to June 30, 2022.
Rounding out the largest losses was Perseus Mining. The gold production company had fallen 5.3 per cent at market close.
Tuesday's quarterly update reaffirmed guidance around production and costs, in line with previous statements made by the firm. Investors may be concerned after the company set expectations that all-in sustaining costs would increase 5–15 per cent during the first half of 2023's financial year.
Later today, the Australian Bureau of Statistics is set to release the Consumer Price Index figures for the June quarter.
Consensus estimates expect to see a 6.3 per cent increase in prices compared to a year earlier, with the Reserve Bank of Australia itself having signalled expectations that inflation will hit 7.0 per cent by the end of the year.
• For more information on the latest market moves, get in touch with Jarden.
• For more information on the latest market moves, get in touch with Jarden.
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