Jarden Brief: Major US indicies fall, oil rises

Investors are keeping an eye on inflation data, due this week

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

International
US

The three major US indices traded in the red this morning. The S&P 500 fell 1.1 per cent, the Nasdaq dropped 0.8 per cent and the Dow Jones Industrial Average decreased 0.9 per cent. Investors weighed updates from major companies.

All but one sector was trading lower. Energy was the only sector in the green, trading 0.2 per cent higher. The laggard sectors were real estate (-2.0 per cent), materials (-2.0 per cent) and financials (-1.8 per cent).

Brown Forman Corporation led the single stock performers, up 5.3 per cent. The alcoholic beverage business reported fiscal fourth-quarter earnings of US$151 million, for earnings of $1.74 per share.

E-commerce company Etsy turned a corner and recovered from its fall yesterday, trading 4.6 per cent higher. The online marketplace has experienced a volatile week after announcing the launch of a purchase protection programme.

The used vehicle retailer, CarMax, rounded out the top performers, rising 4.0 per cent at the time of writing.

On the flip side, Altria Group, one of the world's largest producers and marketers of tobacco and cigarettes, led the underperformers, falling 7.3 per cent. The company has experienced losses for three of the past four days.

Carnival Corporation, a British-American cruise operator with a combined fleet of over 100 vessels across 10 cruise line brands, traded 5.6 per cent lower at the time of writing.

Chief executive Arnold Donald stated the company was "committed" to achieving a 40.0 per cent reduction in carbon emissions by 2030, and net zero emissions by 2050.

Intel Corporation concluded the three bottom movers, falling 5.3 per cent. The technology company announced the appointment of an executive vice president and chief legal officer to lead Intel's global legal, trade and government affairs team. The share price is US$1.10 away from its 52-week low (US$40.31).

In macroeconomic news, investors look toward Friday's consumer price index reading for May.

Rest of the World

Asian markets were in the green overnight. The Nikkei was up 1.0 per cent, the Hang Seng rose 2.2 per cent and the Shanghai Composite increased 0.7 per cent.

European markets were in the red. The FTSE fell 0.1 per cent, while the DAX and the CAC both dropped 0.8 per cent.

Commodities

Gold traded 0.2 per cent higher to US$1,856.7 per ounce, while silver declined 0.4 per cent to US$22.1 per ounce.

WTI Crude Oil performed well, rallying 2.7 per cent to US$122.6 per barrel.

The cryptocurrency market was largely in the red at the time of writing, with Bitcoin falling 1.7 per cent and Ethereum down 2.4 per cent.

The US 10-year Treasury rate was up five basis points to 3.021 per cent alongside a five basis point rise in the 30-year rate, to 3.173 per cent.

New Zealand

The NZX 50 closed 0.8 per cent lower yesterday.

Serko continued to lead the market, up 2.7 per cent from Tuesday. Auckland Airport increased 2.4 per cent and Fisher & Paykel Healthcare rose 2.3 per cent.

Pacific Edge was the biggest laggard, down 6.7 per cent, followed by Westpac decreasing 6.5 per cent. Arvida group also declined, down 4.4 per cent.

New Zealand Rural Land Company announced a capital raise yesterday of approximately $20.38 million to fund the acquisition of Argyle Downs and Greenhill farms. The acquisitions will broaden the company's portfolio of 11,710 hectares of dairy farms across Canterbury, Central Otago, and Southland. Shareholders will have the opportunity to purchase one new share for every five existing shares held on record date at a price of $1.05 per share.

Fonterra Cooperative Group has announced a share buyback programme valued at up to $50 million which will commence on 30 June 2022 and run for up to 12 months.

Chairman Peter McBride said the key reason for announcing the buyback was because the prevailing price had been considered undervalued by the co-op since late April.

Agribusiness company Scales Corporation held their 2022 annual shareholders meeting yesterday. The company announced revenues of $514.6 million, up from $470.7 million in 2020 and earnings before interest, tax, depreciation, and amortization (EBITDA) of $73.8 million compared to 2020's $64.1 million. Scales Corporation closed down 1.3 per cent, at $4.43.

Australia

The ASX 200 closed 0.4 per cent higher on Wednesday, to 7,121 points.

All but one sector ended in the green yesterday. Energy gained 4.2 per cent while utilities and industrials rose 3.2 and 2.0 per cent, respectively. Conversely, the financial sector fell 2.9 per cent.

Boral, construction materials supplier, rose 14.7 per cent. The company has appointed former head of Cleanaway Waste Management, Vik Bansal, as its new chief executive officer. Bansal oversaw a period of large shareholder returns while at Cleanaway,

potentially contributing to investor interest despite the company forecasting a near 30 per cent drop in annual profit.

Uranium production company, Paladin Energy, was up 13.5 per cent. This comes as US President Joe Biden is looking to allocate US$4.3 billion to purchase enriched uranium from sources other than Russia.

The greatest underperformers in the market yesterday were financial institutions. Bendigo and Adelaide Bank, Westpac, and the Commonwealth Bank of Australia fell 7.2, 6.1, and 4.4 per cent, respectively. All companies lifted their home loan rates in response to Australia's Reserve Bank increasing the cash rate to 0.85 per cent on Tuesday.

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