Jarden Brief: Tesla hits new 52-week high

Tesla's share price shows that flying cars are already here. Photo / Getty Images

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

New Zealand

After a strong session on Friday, the NZX 50 started the week off with a decline of 0.5 per cent.

Auckland is set to move to step two of Level 3 from next week Tuesday, pending confirmation by Cabinet next week. This would allow retail, museums, and other public facilities to reopen with restrictions. Meanwhile, Waikato will move to step two from 11.59pm on Tuesday. The government continued to urge people to get vaccinated, for the whole country to move into the new traffic light system.

Energy (+0.6 per cent) and technology (+0.1 per cent) were the only two sectors in the green. All other sectors underperformed, with financials (-3.9 per cent) and industrials (-1.1 per cent) booking the biggest losses.

Commercial property owner Investore Property was the best performer in yesterday's session, gaining 2.1 per cent. Next in line was agri-manufacturer Skellerup Holdings, up 1.8 per cent, continuing last week's trend.

Rounding out the leader board was the New Zealand exchange operator NZX Limited, rising 1.7 per cent.

Synlait Milk declined 3.3 per cent, continuing last week's trend, while logistics heavyweight Mainfreight dropped 2.1 per cent - with its half year 2022 earnings release set for 11 November.

Restaurant Brands New Zealand, which operates KFC and Pizza Hut, closed 2.6 per cent lower after a volatile prior week.

International                                                                                         
US

The US markets were in the green at the time of writing with the S&P 500 0.1 per cent higher, the Nasdaq trading up 0.5 per cent, and Dow Jones Industrial Average up 0.2 per cent after hitting a new record at open. All eyes are on the upcoming two-day Federal Reserve meeting this week with market expectation that the US$120 billion per month bond buying program will be reduced.

Outperforming sectors were energy and consumer discretionary, increasing by 1.7 and 1.0 per cent, respectively.

Franklin Resources was the top performer, up 12.0 per cent to a new 52-week high. The investment management company rose following its earnings release exceeding expectations and the announcement that it will acquire private equity firm Lexington Partners for US$1.75 billion.

Deere & Co rose 6.6 per cent after the announcement that it has reached a tentative six-year deal with the United Auto Workers union following employee strikes. The deal would provide 10,000 workers with higher raises and bonuses. It will be voted on today.

Tesla increased 6.4 per cent to a new 52-week high and continues to rally after becoming a US$1 trillion company last week.

Technology and real estate sectors shouldered losses, each falling 0.3 per cent. 
Fortinet fell 4.3 per cent. The cyber security solutions company led the technology sector downwards. Despite this, Fortinet has more than tripled its share price year-to-date. 
Covid-19 vaccine producer Moderna lost 4.2 per cent. The fall appears to be linked to the US Food and Drug Administration delaying their decision on Moderna's Covid-19 vaccine for 12 to 17-year-olds and comes before third-quarter 2021 earnings results are released on 4 November.

Rest of the world

Asian indices were a mixed bag on Monday. The Hang Seng traded down 0.9 per cent, the Nikkei gained 2.6 per cent, while the Shanghai Composite fell a slim 0.1 per cent. In Japan, the Nikkei seemed to benefit from the country's parliamentary election results on Sunday, with the incumbent Liberal Democratic Party achieving single-party majority

Commodities

In commodities this morning, gold traded up 0.6 per cent to US$1795.30 per ounce, continuing to hover around US$1,800.00 as a typical inflation hedge ahead of the upcoming Fed meeting. WTI crude oil rose 0.7 per cent to US$84.14 per barrel. The US 10-year bond is trading at 1.579 per cent.

In cryptocurrency, Bitcoin rose 0.3 per cent and Ethereum gained 1.0 per cent.

Australia

Australian equities traded higher on Monday with the S&P/ASX 200 moving up 0.6 per cent to 7370.8 points at the close.

The wider Australian market experienced a several IPOs to start the week. This includes bamboo fibre underwear company Step One, which listed for greater than A$270m, and retail bank Judo, with a A$2.3bn valuation. At this valuation, Judo could potentially earn index inclusion in the ASX 200 in six months' time. Both companies finished higher than their original list prices during their first days of trading.

Sector gains included technology and utilities, each leading the way with 2.8 and 1.9 per cent increases, respectively.

Overall index movements were well supported by the single stock winner, Orocobre Ltd, up 5.8 per cent, after the lithium miner released its quarter production statistics over the weekend. Joining Orocobre was healthcare company Blackmores, and freight technology provider WiseTech, as both made gains of 5.5 per cent. Blackmores had released the result of its annual general meeting (AGM).

On the other hand, markets were weighed down by a poor performance from the financials sector, which slid 0.4 per cent.

The sector was led down by Westpac Banking Corp (-7.4 per cent), after it released its financial year 2021 result on Monday. A cash profit of over A$5 billion and intended A$3.5 billion share buyback came in below market expectations.

Rounding out the biggest decliners was healthcare company ResMed, which lost 4.9 per cent after it published its quarterly earnings, while gold mining company St Barbara dropped 4.1 per cent, following poor market sentiment surrounding its AGM, hosted on Monday.

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

Disclaimer: This Morning Brief has been prepared in good faith and reflects opinions and views 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. This Morning 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 broker disclosure statement is available free of charge at www.jarden.co.nz. Jarden is not a registered bank in New Zealand. Full disclaimer available at: https://www.jarden.co.nz/limitations-and-disclaimera>