Jarden Brief: Cryptocurrency market in the red

Bitcoin has fallen in value. Photo / NZME

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

International

US

At the time of writing, the S&P 500 rose 2.1 per cent, the Nasdaq increased 2.9 per cent and the Dow Jones Industrial Average was 1.7 per cent higher.

All sectors were trading in the green at the time of writing, led by consumer discretionary (+5.2 per cent), technology (+2.7 per cent) and financials (+2.4 per cent).

Discount store company Dollar Tree Incorporation was the best performing stock of the S&P 500, improving 20.3 per cent. This movement followed the company's positive earnings announcement before market open. The discount retailer posted revenues of US$6.9 billion and earnings of US$2.37 a share, beating consensus expectations of US$6.76 billion revenues and earnings of US$2 a share.

Information technology company DXC Technology advanced 15.8 per cent.

Rounding out the top movers was discount retailer Dollar General, inclining 14.2 per cent. This movement could be linked to the company's strong earnings announcement before market open. The retailer posted higher than anticipated quarterly results, including US$8.75 billion in revenue and earnings of US$2.41 per share.

Food company Kraft Heinz was the largest underperformer of the index at the time of writing, declining 6.3 per cent. The stock went ex-dividend today.

Medical device company Medtronic dropped 5.3 per cent to a new 52-week low. The company posted fourth quarter results that fell short of expectations. The reported US$8.09 billion revenue and US$1.52 in adjusted earnings per share were weaker than the expected US$8.43 billion in revenue and US$1.56 per share. The company stated that supply chain issues negatively affected the results for the quarter.

Closing out the bottom movers was fertiliser company CF Industries, regressing 4.9 per cent.

Rest of the World

Asian markets were mixed overnight. The Shanghai Composite increased 0.5 per cent, the Nikkei fell 0.3 per cent, and the Hang Seng dropped 0.3 per cent.

European markets were in the green. The FTSE rose 0.6 per cent, the DAX was up 1.6 per cent and the CAC gained 1.8 per cent.

Commodities

Gold traded 0.1 per cent higher to US$1,847.90 per ounce, while silver gained 0.4 per cent to US$21.95 per ounce.

WTI Crude Oil also performed well, rallying 3.6 per cent to US$114.27 per barrel.

The cryptocurrency market was in the red, with Bitcoin having decreased 0.5 per cent and Ethereum was down 4.9 per cent.

The US 10-year Treasury rate rose two basis points to 2.768 per cent alongside a three basis point gain in the 30-year rate, to 2.995 per cent.

New Zealand

The NZX 50 ended the day in the red, down 0.7 per cent to 11,103 points.

Leading the market yesterday was Ryman Healthcare, a retirement village operator, which increased 2.1 per cent. Also gaining was clothing company KMD Brands (+1.7 per cent) and telecommunications infrastructure provider Chorus (+1.5 per cent).

Global transport company Mainfreight rose 1.3 per cent after reporting their full year financial result. The firm reported net profit of $355.4 million, up 88.9 per cent from the previous year. The board also announced a final dividend of 87 cents per share.

Fleet management company Eroad dropped 8.7 per cent following the release of their annual result. The company reported revenue growth of 25 per cent and a net loss of $9.6 million following the acquisition of Coretex, a firm providing sensors and software for fleets.

Cancer diagnostics firm Pacific Edge (-1.2 per cent) also released their full year results, reporting operating revenue of $11.4 million, up 49 per cent on last year, and a net loss after tax of $19.8 million compared to $14.2 million in the year prior.

Electricity generator and retailer Mercury Energy lost 3.5 per cent, following no apparent news.

The May ANZ Consumer Confidence report is set to be released later today. The measure provides insight into the spending behaviour of New Zealand households.

Australia

After a volatile week, the ASX 200 closed Thursday's trading session down 0.7 per cent.

Majority of the sectors closed lower. Consumer staples and utilities led the underperforming sectors, decreasing 2.4 and 1.1 per cent respectively. Conversely, information technology (+1.1 per cent) and A-REIT (+0.1 per cent) were the only two sectors to finish in the green.

Appen Limited led the single stock performers. The provider of artificial intelligence services confirmed it had received a conditional, non-binding indicative offer from Telus to acquire the company at a price of A$9.50 per share – a 48.0 per cent premium to the share's most recent closing price.

Appen's shares went into a trading halt on the ASX yesterday afternoon, whilst the board analysed the A$1.2 billion takeover bid. By the end of the trading session, Appen Limited closed 29.2 per cent higher to A$8.27.

Next in line was provider of laboratory testing ALS Limited, which rose 6.1 per cent. The company recently announced underlying net profit after tax of A$264.2 million for fiscal year 2022, up 41.2 per cent from last year. ALS also released underlying earnings per share of 54.7 cents.

Tech company Tyro Payments rounded out the top performers, increasing 5.1 per cent.

On the flip side, Endeavour Group dropped 6.0 per cent yesterday after releasing its investor day presentation. The retail company reiterated its targeted capital expenditure plan of A$260 million for the year, up from A$200 last year, and that some of this will be allocated to the acquisition of "hotels, production assets and productivity".

Nanosonics Limited fell 5.7 per cent, following the recent release of its business update.

Tabcorp Holdings Limited continued its downward trend and decreased a further 4.8 per cent yesterday, following the demerger of The Lottery Corporation, which was spun out of Tabcorp and listed on the ASX. Tabcorp's share price has traded 81.8 per cent lower over the last three days.

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

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