Tesla has been on a bit of a turbulent run recently. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand
The NZX 50 fell 0.5 per cent yesterday.
The top performer of the day was Napier Port, rising 2.7 per cent following its full-year earnings announcement. Full-year results detailed a 9.0 per cent increase in revenue for the year to $109.5 million and a 5.2 per cent net profit increase to $23.2m. Napier Port also announced the issuing of a 4.7 cent final dividend, taking total dividends for the year to 7.5 cents.
Port of Tauranga's share price also increased on Tuesday, up by 1.9 per cent. The company launched a $100 million seven-year wholesale bond issue with a November 2028 final maturity on fixed-rate notes.
EBOS increased 2.4 per cent during yesterday's trading.
On the flipside, a2 Milk lost some of Monday's gain despite a seemingly successful 11.11 Singles Day, the world's largest shopping event. The dairy company declined 2.9 per cent yesterday.
Gentailers Mercury NZ and Meridian Energy fell 2.8 and 2.1 per cent, respectively. Competitor Contact Energy released its position paper for the thermal transition as renewables grow. Contact outlined its view on the benefits of establishing an industry-wide, market-based solution to manage the retirement of thermal electricity generation.
NZME (+5.7 per cent) launched a $30 million share buyback after the successful completion of the sale of GrabOne. The on-market buyback will redistribute excess capital to shareholders.
International
US
The major US indices were all trading in the green this morning. The S&P 500 and the Dow Jones Industrial Index each rose 0.5 per cent, while the NASDAQ increased by 0.6 per cent.
Consumer discretionary (+1.3 per cent) and technology (+0.9 per cent) were performing well, while consumer staples (-0.4 per cent) and real estate (-0.4 per cent) were the laggards of the day.
Online marketplace Etsy (+6.0 per cent) was the top gainer on the S&P 500 at the time of writing, reaching a new 52-week high.
Next in line was home improvement retailer Home Depot, increasing 5.5 per cent, also setting a new 52-week record. The company released its third quarter earnings results for 2021 before market open, which delivered better-than-expected results. Earnings per share came in at US$3.92 versus market expectations of US$3.33. Revenue improved by 9.8 per cent year-on-year to US$36.8 billion versus expected US$34.5 billion.
Rounding out the leaderboard was technology-enabled healthcare services provider IQVIA Holdings, rising 3.8 per cent, more than recovering yesterday's losses.
On the other hand, Norwegian Cruise Line Holdings was booking the biggest losses at the time of writing, decreasing 7.6 per cent. Other stocks in the industry such as Royal Caribbean Group (-1.9 per cent) and Carnival (-3.1 per cent) also fell.
Video gaming company Activision Blizzard also declined, down 6.9 per cent after insiders reportedly sold US$6.0 million worth of stock.
Joining the underperformers was dialysis and lab services provider DaVita, trading 3.4 per cent lower.
According to court filings on Monday, JP Morgan Chase (-0.2 per cent) is suing Tesla (+2.9 per cent) for US$162.2 million plus interest and expenses. The lawsuit was lodged due to a dispute about warrants, that were sold in 2014 expiring in 2021. The dispute was ignited by Elon Musk tweeting about taking Tesla private in 2018. JP Morgan alleges the electric vehicle maker has breached terms of the contract as Tesla did not deliver shares under the warrant conditions. However, Tesla argues that JP Morgan made "unreasonably swift" adjustments to those warrants, which the car maker claims to be opportunistic.
On Monday, US President Joe Biden signed the new US$1 trillion bipartisan infrastructure bill into law. About US$550 billion of that is pledged to go into transportation, broadband and utilities, with the funding to be dispersed across five years.
Rest of the World
Overnight, the most popular Asian indices delivered mixed results. The Nikkei (Japan) rose 0.1 per cent, the Shanghai Composite (China) declined by 0.3 per cent, and the Hang Seng (Hong Kong) closed 1.3 per cent higher.
On Tuesday, the UK government announced a probe into Nvidia's (-0.1 per cent) takeover deal of chip designer Arm. The investigation is due to antitrust concerns and national security issues that might occur.
Last month the European Commission launched its own investigation into Nvidia, after US and Chinese regulators voiced concerns about the deal. Japanese-owned Arm currently licenses its chip designs to more than 500 companies, to produce their own chips. With Nvidia potentially taking the company over, regulators are concerned that companies will lose access to the neutral chip designs and that it would hinder innovation. However, Nvidia argues that the increased investment would support further innovation.
Commodities
Gold further decreased on Tuesday and was trading 0.4 per cent lower, at US$1,858.60 per ounce.
Oil was faring better, increasing 0.3 per cent to US$81.03 per barrel.
Cryptocurrencies significantly dropped during Tuesday's trading. Bitcoin and Ethereum declined by nearly 8.0 per cent. Without clear indicators as to why this move occurred, some link it to China's National Development and Reform Commission stating in a press conference on Tuesday, that it will continue to clean up virtual currency mining in China. At the time of writing, Bitcoin traded 5.0 per cent lower, while Ethereum was down 5.2 per cent, compared to the previous close.
The US 10-year bond rate was yielding 1.623 per cent, at the time of writing.
Australia
The ASX 200 had a challenging day on Tuesday, falling 0.7 per cent to finish at 7,420.4 points.
Expectations were dampened by the Reserve Bank of Australia's (RBA) commentary, where Governor Phillip Lowe indicated that there were no plans for interest rate hikes in 2022 – while also hinting that some macro pressures could force hikes before 2024. Lowe's stance on interest rates, wage inflation, and unemployment among other economic indicators was likely viewed as 'dovish' by the market, which reacted accordingly.
Industrials was the only sector to make gains, increasing 0.3 per cent. Materials and healthcare dragged the market lower, posting losses of 1.8 and 1.1 per cent.
Diversified miner Chalice Mining led the market with a strong performance (+3.7 per cent) and was also joined by payments and banking service provider Virgin Money, which finished higher by 2.6 per cent. Virgin may have received some demand-side pressure after a broker upgraded their recommendation for the stock.
Health and biotech company Mesoblast almost reversed Monday's 11.8 per cent gain with a loss of with a loss of 8.7 per cent by the close. Meso had traded higher on news its Rexlemestrocel-L therapy was found to be a potential treatment against chronic heart failure.
Rounding off Tuesday's decliners was Iluka Resources, which fell 4.1 per cent. Iluka is involved in a range of different processes in the mining industry and presented to investors at the Mineral Sands Conference on Tuesday.
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Disclaimer: The Jarden Brief is provided for general information purposes only. It reflects views and research available at the time of publication, using external sources, systems and other data and information we believe to be accurate, complete and reliable at the time of preparation. We make no representation or warranty as to the accuracy, correctness and completeness of that information, and will not be liable or responsible for any error or omission. The Jarden Brief is not to be relied upon as a basis for making any investment decision. Please seek specific investment advice before making any investment decision. Jarden Securities Limited is an NZX Firm. A financial advice disclosure statement is available free of charge at https://www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement/ Full disclaimer available at: https://www.jarden.co.nz/wealth-sales-and-research-disclaimer
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