Jarden Brief: Big travel change gives glitzy gambling giants a boost

Top perfomers on the market overnight included gambling companies Wynn Resorts and Las Vegas Sands Corp. Photo / Getty

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

International

US

US equity markets eased off overnight, as investors look towards the November Federal Reserve meeting tomorrow.

At time of writing the S&P 500 had declined 0.2 per cent, the Nasdaq Composite was 1.0 per cent lower and the Dow Jones Industrial Average was down 0.7 per cent.

Despite the declines, all three major indices have made a comeback in October following a two-month losing streak.

The Dow Jones Industrial Average is on track for its best month since 1976, up 14 per cent for the month.

The top three performers included two gambling companies.

In focus was Wynn Resorts, which lifted 11.4 per cent after a filing showed billionaire investor Tilman Fertitta has built a passive 6.1 per cent stake in the company, although the stock was still down more than 20 per cent this year.

Las Vegas Sands Corp rose 4.7 per cent after China announced an e-visa system for Chinese tourists to travel to Macau after the immigration bureau called the Covid-19 situation in Macau "stable" this week.

Meta Platforms, the parent company of Facebook, fell 6.1 per cent following an earnings result which surprised to the downside last week, leading the declines in megacap technology companies.

Apple recently had a results release posting a beat on both sales and profit expectations for the fourth quarter.

Against the general trend of tech companies this earnings season, sales rose 8 per cent and profits increased 1 per cent from the prior comparable period.

Apple brushed off concerns that demand for the newest iPhones might have been weaker-than-expected and the CFO noted that the "record September quarter results continue to demonstrate our ability to execute effectively in spite of a challenging and volatile macroeconomic backdrop".

Apple declined 1.3 per cent today at the time of writing.

Rest of the World

European stocks closed higher despite inflation and GDP painting a bleak picture.

Annual consumer price inflation for the Euro Area rose to a record high (+10.7%) in October, with energy and food greatly impacted. Growth slowed for the region in the third quarter as GDP came in at 0.2 per cent.

The European Stoxx 600 index was up 0.4 per cent.

In Asia, the Nikkei closed 1.8 per cent higher, the Shanghai Composite Index lost 0.8 per cent, and the Hang Seng declined 1.2 per cent while gaming stocks rebounded following news of the e-visa system for mainland Chinese visitors to Macau.

Commodities

The US 10-Year Treasury yields have remained reasonably flat at 4.04 per cent yield. The Federal Reserve meeting is tomorrow and the market is expecting a 75 basis point interest rate hike.

There is potential for a signal from the Committee or Chairman around sentiment that the Fed could pause its hikes or reduce their size in the near future.

Brent Oil is currently trading 1.2 per cent lower at US$94.60 a barrel, following weaker than expected factory activity data out of China and concerns Covid-19 will continue to impact demand, while gold traded 0.3 per cent lower to US$1,637.00 per ounce.

Global currencies were seeing mixed performance against the US dollar with the NZD depreciating 0.1 per cent, the euro recovering 0.8 per cent and the AUD 0.3 per cent higher.

Bitcoin remains above the US$20,000 mark, although down 1.1 per cent to US$20,410.50.

New Zealand

The New Zealand market finished October on a high, with the benchmark NZX 50 index gaining 1.9 per cent yesterday to round the month out in the green.

Top performers were scattered amongst the sectors - Chorus experienced the greatest appreciation of the day, finishing up 5.9 per cent. Mercury NZ rose 5.4 per cent and Goodman Property Trust gained 5.1 per cent.

Pushpay Holdings entered into a Scheme Implementation Agreement. At NZ$1.34 per share, Sixth Street and BGH Capital would acquire all of Pushpay's shares under the agreement.

Together, entities associated with Sixth Street and BGH Capital currently hold, in aggregate, 20.34% of the shares in Pushpay.

On Friday, the Board recommended shareholders vote in favour of the scheme at the shareholder vote in 1Q23, with subsequent implementation expected in 2Q23.

Pushpay finished the day up 5.0 per cent.

Channel Infrastructure, New Zealand's largest fuel import terminal business, provided an update on the scoping study for Green Hydrogen Production.

Fortescue Future Industries and Channel Infrastructure's study into the potential feasibility of green hydrogen production at Channel's Marsden Point site is progressing, with the focus of the study now shifting from manufacturing to the viability to produce green hydrogen and green hydrogen products for domestic use.

Australia

The ASX 200 traded 1.2 per cent higher yesterday to end the month. Over the last five days the Index had gained 1.2 per cent.

Graincorp gained 7.9 per cent yesterday in line with wheat commodity prices surging following Russia withdrawing its support for a Black Sea grain export deal.

This United Nations brokered agreement was designed to protect food security and Russia withdrew under claims that Ukraine had attacked its Black Sea fleet in Crimea with Drones, escalating international food security concerns.

EML Payments slumped 35.7 per cent following the UK subsidiary, Prepaid Financial Services, agreed to temporarily cease new customer onboarding after the UK financial regulator expressed concerns.

This is the third regulator investigation associated with EML Payments recently. EML is down 77.8 per cent in the year to date.

Looking forward, the market has been anticipating today's Reserve Bank of Australia cash rate decision and commentary with expectations from the majority of the major banks for a 25 basis point hike, and the possibility of a 50 basis point rise.

This would take the cash rate from 2.6 per cent to 2.85 or 3.1 per cent.

Coming up today

Locally, NZ Building Permits data will be released and Tourism Holdings AGM is on. In Australia, the Reserve Bank of Australia Cash Rate decision is to be announced.

In the US, ISM Manufacturing and S&P Global Manufacturing PMI Construction Spending data is coming out.

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

All market pricing and announcements are sourced from Refinitiv, NZX and ASX.

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