Jarden Brief: US markets set records for second consecutive day

Wall Street was remains upbeat. Photo / Getty Images

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

New Zealand

The S&P/NZX 50 charged ahead yesterday with the index making a 0.8 per cent gain to finish at 13173.5 points.

Outperforming sectors included both consumer cyclicals and non-cyclicals which made gains of 2.5 and 1.3 per cent, respectively.

Multiple earnings announcements shifted the markets as the August reporting season continued to drive volatility.

Firstly, agribusiness Scales Corp, jumped 9.2 per cent as investors reacted to 1H21 headline numbers, coming in mostly above consensus estimates.

Similarly, retirement village operator Summerset Holdings, added on to Tuesday's gains (+4.0 per cent) by advancing another 8.7 per cent after the market continued to digest its positive first half result.

Gaming and hospitality company SkyCity Entertainment, was another company which produced a notable earnings beat, up 6.1 per cent as the company announced it would restart paying dividends, seeing the light at the end of a Covid-19 tunnel.

On the other hand, markets were weighed down by both the utilities and the financials sectors which fell 0.7 and 0.1 per cent at Wednesday's close.

Sky Network Television underperformed, falling 2.5 per cent, against the run of the tide with its FY21 earnings result being poorly received. Sky continued to experience negative subscriber growth in its traditional box set subscription service, with its overall revenue mix continuing to transition toward offering various streaming products.

International
US

The major US indices were maintaining their upward trend at time of writing. The S&P 500 (+0.3 per cent) and the NASDAQ (+0.1 per cent) were both setting new records for the second consecutive day, while the DJIA (+0.2 per cent) was about 200 points off its all-time high.

The health and technology sectors were the only ones underperforming this morning, decreasing 0.2 and 0.1 per cent, respectively. The biggest advancements were made by financials and energy, each rising 1.5 and 1.1 per cent.

Computer hard drive manufacturer Western Digital Corporation rallied 9.3 per cent as the best performer. Next in line was Penn National Gaming (+7.5 per cent), joining the top performers of the previous session after gambling destination, Macao, eased restrictions for visitors from mainland China. Rounding out the top performers was memory and storage solutions provider, Micron Technology, up 3.9 per cent.

Apparel retailer, Gap, was the worst performer of the session, declining 5.1 per cent. Steel products manufacturer, Nucor Corporation, also underperformed, decreasing 2.5 per cent, followed by biopharmaceutical company, Biogen, down 1.9 per cent.

Vector Acquisition Corporation, the special purpose acquisition company created for the listing of New Zealand founded, Rocket Lab, started trading on the NASDAQ today with a value of US$4.1 billion. The deal is said to have raised about US$777 million for the Kiwi-American company. However, the shares under the new ticker RKLB tumbled in early morning trading, trading 9.8 per cent lower at the time of writing.

Delta Airlines (+1.8 per cent) has announced that as of 1 November, its unvaccinated staff who receive health insurance through the company, will have to pay a US$200 monthly surcharge. From 12 September, unvaccinated employees will have to take weekly Covid-19 tests, while infection rates are high. United Airlines (+1.2 per cent) and Hawaiian Airlines (+0.5 per cent) plan to go a step further and mandate vaccines for their employees.

Rest of the world

The Asian markets were a mixed bag overnight. The Hang Seng declined by 0.1 per cent, while the Shanghai index and Shenzhen increased by 0.7 and 0.2 per cent, respectively. The Nikkei remained flat.

China's cyberspace regulator said on Tuesday that Chinese companies wanting to go public - domestically or overseas - will have to ensure the security of the national network, critical information infrastructure, and personal data. They will also have to meet all other domestic regulations. The new policy to protect critical information infrastructure is set to take effect on 1 September.

Commodities

Gold declined by 1.0 per cent to US$1,790.80 per ounce, while oil continued to improve, rising 0.7 per cent to US$67.98 per barrel.

Cryptocurrencies reversed yesterday's trend and were all trading in the green this morning. Bitcoin was up 1.8 per cent, and Ethereum increased 1.2 per cent.

The US 10-year treasury rate surged to 1.342 per cent, a day before the Fed summit.

Australia

The ASX 200 rose 0.4 per cent on Wednesday, despite a record 919 new Covid-19 cases in New South Wales, with future economic growth hinging on vaccination rates.

Information technology and materials led the index up, each climbing 1.9 and 1.4 per cent. Meanwhile, telecommunications services and utilities declined 1.5 and 0.9 per cent, respectively.

Wisetech Global was up 28.4 per cent on the close, peaking at a 56.8 per cent share price rise during the day, before coming down from its high. The software company surged on the back of its full year results release. Revenue rose 18 per cent (to A$507.5 million) and financial year 2022 guidance of revenue growth of 18 to 25 per cent seemed to be a positive surprise for the market.

Appen was another outperformer, up 8.7 per cent. The artificial intelligence company has its full year results release today. In the past five days the share price has risen 19.2 per cent in the lead up to the release.

Falling 10.8 per cent was Reece. The plumbing group released its full year results on Tuesday with sales revenue up a slim 4.0 per cent to A$6,271 million, and net profit after tax up 25 per cent to A$286 million. However, the poor stock price performance indicates the market may have had greater results expectations.

Media company, Nine Entertainment Co, was another underperformer, slipping 9.7 per cent. Revenue rose 8.0 per cent to A$2,332 million and net profit after tax rose 76 per cent to AUS$278 million. Other highlights for Nine Entertainment during the year were completed agreements with Facebook and Alphabet, as well as launching a new sport offering in financial year 2021.

• 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>