The next best performer was Kathmandu Holdings, rising 2.7 per cent to $1.52. The outdoor retailer is continuing its two months upward trend, with a lift in sales by competitor MacPac potentially improving sentiment for the stock.
Ryman Healthcare continued to recover from its rout last month, up 1.8 per cent to $14.35.
Skycity Entertainment Group was the worst performer, decreasing 3.3 per cent to $3.50. The casino operator had made an investor presentation at the Macquarie Business Conference in Australia yesterday, during which it flagged continued delays with the NZ International Conference Centre development.
The two big dairy stocks also fell yesterday, with A2 Milk declining 3.3 per cent to $7.72 and Synlait Milk down by 2.3 per cent to $3.40.
Fonterra announced yesterday that it is starting a consultation process on its capital structure options, the cause for its trading halt on the ASX, NZX and the Fonterra Shareholders Market before market open on Wednesday. Some of the possible capital structures are a dual share structure, an unshared supply structure, or a split co-operative model. Ultimately, the farmers are supposed to gain greater financial flexibility. The trading halt will cease with market open today. Meanwhile, there will be a temporary cap on the size of the Fonterra Shareholders' Fund until the end of the consultation process to allow farmers to consider all options.
NZ has paused quarantine-free travel from NSW to NZ from 11.59pm last night while the source of infection of the two cases announced in Sydney in the last two days is investigated. This will be under constant review.
The government has suggested it would increase spending on its New Zealand rail plan by many billions of dollars, in addition to $5 billion outlined in previous budgets. The value of rail to the economy is said to be $2.1 billion per year, with additional benefits to the environment.
INTERNATIONAL
US:
At time of writing, the Dow Jones Industrial Average was up 0.4 per cent, the Nasdaq had fallen 0.4 per cent, and the S&P500 had risen 0.2 per cent.
Consumer Staples and Financial sectors led the way again, up 1.1 and 0.6 per cent, respectively. In contrast, Health and Energy were the worst performing sectors for another day - falling 2.2 and 1.4 per cent, respectively.
The best performing stock of the S&P500 this morning was Kellogg, up 7.6 per cent. The cereal and convenience manufacturer released its first-quarter results today which outlined earnings per share rising 8 per cent for the same quarter last year, with a trend toward higher snacking fuelling higher growth.
Holdings company Iron Mountain was another outperformer, rising 7.1 per cent to a 52-week high. The first-quarter results release outlined EBITDA up 2 per cent.
Online marketplace Etsy fell 15.3 per cent. While first-quarter 2021 results were positive, growth for the second quarter was less optimistic and the guidance for this disappointed investors - sending the stock downwards.
Media has also picked up on the fact that outgoing Amazon CEO Jeff Bezos has sold nearly US$2 billion of Amazon shares in the past two days. The sales come a week after the first quarter 2021 results release which exceeded expectations.
In macroeconomic news, President Biden outlined more details of the American Jobs Plan which includes US$115 billion in infrastructure spending. The announcement included the need to "build back better" from the Covid shock and "build from the bottom up and the middle out" with significant investment in roads and bridges to create more jobs for middle-class Americans and stimulate the economy. He also encouraged Americans to "buy American", as well as reinforcing that corporate taxes will be raised.
The US is supporting the waiving of patent protection for Covid vaccines. As the health crisis continues in many parts of the world, notably India, this patent waiving should allow for faster vaccine production and rollout.
Rest of world:
Asian markets were a mixed bag overnight. The Hang Seng (Hong Kong) rose 0.8 per cent, while the Shanghai Composite (China) fell 0.2 per cent and the Nikkei (Japan) recovered some of the week's losses, up 1.8 per cent.
With the Olympics edging closer, mutant strains of Covid are concerningly becoming dominant in Tokyo.
Commodities:
Gold increased its value by 1.7 per cent to US$1,815.20 per ounce. The negative correlation with the USD and gold continued overnight, with the weakening USD strengthening gold prices.
Crypto movements include Bitcoin falling 0.5 per cent and another day of gains for Ethereum, up 2.8 per cent at the time of writing.
The US 10-year bond is flat and currently yielding 1.561 per cent.
Australia
The S&P/ASX 200 traded down 0.5 per cent yesterday, with losses from the large-cap banks and tech names weighing on index performance.
The worst performer of the day was Nearmap Ltd, after being Wednesday's best performer on an early guidance release which was pending further detail on potential legal proceedings. Yesterday, a formal complaint was lodged against Nearmap claiming a patent violation relating to its roof estimation technology. Although it is unclear whether the claim could materially damage the company and its product, Nearmap fell 23.3 per cent, more than offsetting yesterday's gain of 14.6 per cent.
Joining Nearmap Ltd was IT company Appen Ltd, down 21.1 per cent after an underwhelming presentation at the Macquarie Business Conference yesterday.
On the other hand, QBE Insurance Group led the way with a strong performance, up 3.2 per cent at yesterdays close. Similarly, resources company BHP Group Ltd advanced 2.1 per cent.
The leading sector was Basic Materials (up 0.9 per cent) as mining stocks continue upward momentum. Energy was the only other sector to rise, up 0.3 per cent.
Academic & Educational Services (down 4.9 per cent) and Industrials (down 1.8 per cent) were the laggard sectors at yesterday's close.
In other news, Australian M&A activity has hit record highs as low interest rates and a post-pandemic economy bring about more opportunities for businesses than ever before. 447 deals were delivered between January and April end where the target company was Australian, summing to a whopping A$50.5 billion in deal value - the highest since 1980. If you include deals where an Australian company targeted an offshore entity, the total increases to A$69 billion.
Many of the factors contributing to this rise in deal activity are likely to persist, with the rest of 2021 lined up to deliver similar record-breaking statistics.
Coming up Today:
No planned releases domestically, although Australia's central bank is set to make a new statement on monetary policy. Banking group Macquarie will report its full-year earnings, while News Corp, commercial property owner Goodman Group and real estate company REA Group will be reporting their third-quarter earnings.
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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>