Jarden Brief: Walmart thumped on supply chain issues, but US markets up overall

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

US

The US had performed well at the time of writing, all up from yesterday. The S&P 500 rose 1.6 per cent, the Nasdaq was up 2.76 per cent and the Dow Jones Industrial Average increased 1.34 per cent.

The biggest drivers of this performance came from materials and technology, which were up 2.8 and 2.3 per cent respectively. The only sector in the red at the time of writing was consumer staples, down 1.1 per cent.

Global media and entertainment company Paramount Global found itself to be the best performer at the time of writing, up 14.0 per cent. This follows Warren Buffet's Berkshire Hathaway revealing a US$2.6 billion stake in the company.

Take-Two Interactive Software had the next best performance, up 12.0 per cent. This followed the release of its March quarter results with net revenue up 11.0 per cent year on year.

Rounding out the top three performers, after increasing 8.6 per cent, is Advanced Micro Devices.

Walmart fell 11.1 per cent, making it the worst performer at the time of writing. This may have been influenced by first quarter results that appear to have missed expectations alongside anticipated future supply chain problems.

Food retailer Kroger Co dropped 3.9 per cent after Berkshire Hathaway trimmed its holding in the company.

Bath & Body Works rounded out the underperformers, down 3.0 per cent. This brought the company over 30.0 per cent down from the start of the year.

US retail sales were released and showed a 0.9 per cent increase in April. This was largely driven by a four per cent increase in miscellaneous retail and a two per cent increase in online sales.

The Wells Fargo Housing Market Index was also released. This showed that homebuilder sentiment and current sales conditions both declined substantially.

Rest of the World

Markets in Asia all closed in the green. The Shanghai Composite rose 0.7 per cent, the Nikkei was up 0.4 per cent and the Hang Seng climbed 3.3 per cent.

Following the other markets' trends, all European markets were also in the green at the time of writing. The FTSE is up 0.7 per cent, the DAX rose 1.6 per cent and the CAC increased 1.3 per cent.

Korea's automobile exports increased to US$4.4 billion in April. This is a 6.1 per cent increase on last year's results.

Commodities

Gold increased 0.2 per cent to US$1,817 an ounce.

WTI Crude Oil remained largely unchanged, down 0.1 per cent. On the other hand, natural gas increased 4.0 per cent.

The cryptocurrency market was mixed. Bitcoin fell 0.4 per cent while Ethereum rose 0.1 per cent.

The US 10-Year Treasury rate regained eight basis points, bringing the rate back up to 2.96 per cent.

New Zealand

The NZX 50 closed in the red Tuesday night, down 0.2 per cent to 11,137.88.
Ryman Healthcare gained back some of its losses from Monday, up 4.4 per cent at close. The company's share price has fallen from $15.50 at the beginning of the year to $9.04 last night.

NZX Limited rose 3.9 per cent and retirement village operator Arvida Group increased 3.3 per cent.

Pushpay Holdings was down 4.0 per cent.

EROAD hit a new 52 week low, losing 3.9 per cent, and Tourism Holdings fell 3.7 per cent.

Companies with larger Australian followings (with operations across the Tasman), such as Fletcher Building and EBOS, may be feeling more pressure as the New Zealand Dollar weakens. Fletcher Building closed 2.7 per cent lower to $5.85 and EBOS decreased 0.4 per cent to $39.30.

Australia

The ASX 200 increased 0.3 per cent yesterday to close at 7,112.50 points.

Despite an improvement in the index, six of the 11 sectors finished lower. The Australian real estate investment trust sector was the biggest underperformer (-1.2 per cent).

Healthcare and industrials each declined by 1.1 per cent, respectively.

Energy was the top performing sector (+2.1 per cent), followed by utilities (+1.3 per cent) and materials (+1.1 per cent).

Among single stocks, miner Lynas Rare Earths closed as the top gainer with a 6.6 per cent increase, which could be connected to higher Neodymium-Praseodymium prices. Oil and gas company Beach Energy rose 6.1 per cent. Coal miner Whitehaven Coal improved 5.9 per cent.

Bookmaker Pointsbet Holdings sunk 4.6 per cent while real estate advertising company REA Group declined 4.5 per cent.

James Hardie Industries' (-3.5 per cent) fiscal year 2022 results revealed an increase in global net sales of 24 per cent, while adjusted net income rose 36 per cent. The building supplies company has declared a dividend for the second half of fiscal year 2022 of US$0.30 per share and reaffirmed their adjusted net income guidance range for the 2023 fiscal year of US$740 million to US$820 million.

United Malt Group (-1.5 per cent) have released their results for the half year ended 31 March 2022. It reported that a higher barley price and increased customer demand contributed to revenue being up 11.0 per cent compared to last year's number. Despite this, underlying earnings before interest, tax, depreciation and amortisation, excluding software-as-a-service costs, fell 5.0 per cent. According to the company, this was driven by drought in Canada, supply chain issues, and the timing of input cost increase recovery. The company's net profit fell to A$10.3 million from A$13.6 million.

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