At the time of writing, the S&P
500 and Nasdaq Composite rose by 0.1 per cent and 0.4 per cent respectively, while the Dow Jones Industrial Average dipped 0.2 per cent.
By sector, energy and technology led the market up, increasing 1.7 and 0.8 per cent respectively, while consumer discretionary and consumer staples fell 1.5 and 1.1 per cent respectively.
Pinterest shares lost 5.6 per cent after the company reported mixed quarterly results.
Adjusted earnings per share surprised to the upside while revenue fell just shy of the market’s expectations. Pinterest is one of many companies that rely on advertising revenue and struggling with demand in the current macroeconomic environment.
Primary care providers Oak Street Health shares rose 30.2 per cent on the Wall Street Journal reporting CVS Health was close to an agreement to purchase the company.
Hertz Global gained 8.0 per cent after reporting its fourth quarter results. The company reported strong demand for rental cars from leisure travelers and demand for car buyers fueled by automotive shortages.
Rest of the World
European stocks closed slightly higher ahead of the Powell speech. The European Stoxx 600 index rose 0.2 per cent and the FTSE 100 increased 0.4 per cent.
Asian markets were mixed with the Hang Seng 0.4 per cent higher, Shanghai Composite up 0.3 per cent and the Nikkei flat.
Shares in Baidu jumped 15.3 per cent to an 11-month high upon flagging plans to launch ‘Ernie Bot’, a ChatGPT-style artificial intelligence chatbot. Internal testing will likely be complete in March before being made public.
Commodities
Brent Oil is currently trading 3.0 per cent higher at US$83.40 a barrel, rising on a more bullish Chinese demand outlook and supply concerns following the Turkey earthquake.
Gold is trading up 0.4 per cent to US$1874.60 per ounce.
The US 10-year Treasury bond has risen a small 2 basis points to a yield of 3.65 per cent as investors look to remarks from the Fed Chair.
Bitcoin continues a gradual recovery, up 0.2 per cent to US$22,965.00
New Zealand
The NZX 50 Index fell 0.6 per cent yesterday in the first trading day following Waitangi weekend. The index was led downwards by consumer cyclicals and healthcare sectors falling 1.5 and 1.4 per cent, respectively.
Mainfreight was the top performer, up 3.1 per cent, Restaurant Brands New Zealand rose 2.3 per cent and Air New Zealand gained 1.3 per cent.
Genesis Energy and FRV in a joint venture confirmed the purchase of a large-scale solar site yesterday, with an aim to start generating electricity in 2024.
The 90-hectare site south of Christchurch will hold approximately 80,000 solar panels with a capacity of 52 MW and generate around 80 GWh of renewable electricity annually – enough to power close to 10,000 houses. Genesis Energy declined 1.8 per cent yesterday.
Pushpay Holdings narrowed its financial year 2023 guidance range for ebitdaf of US$55-$57 million from US$54-$58 million, and narrowed its revenue growth expectations.
Pushpay ended the day flat.
Prices in the latest Global Dairy Trade auction, held overnight, rose by up 3.2 per cent across the board. This is the first increase since December 6.
Australia
The ASX 200 traded also traded down, falling 0.5 per cent on Tuesday in response to an official cash rate hike.
In the first cash rate target review for 2023, the RBA lifted the cash rate 25 basis points to 3.35 per cent in line with expectations.
This is a ninth straight increase. The RBA have said that more rises would be necessary in the months ahead to control high inflation and that it remains resolute in its determination to return inflation to target.
It was noted that in assessing how much further interest rates need to increase, the Board will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market.
Real estate led the index downwards, losing 1.6 per cent.
ANZ rose 0.5 per cent yesterday and was the first major bank to respond to the RBA’s decision, saying variable interest rates across all its home loans will increase by the full 0.25 percentage points from February 17.
ARB Corp declined 12.4 per cent. The 4x4 auto parts company released its half year update on Monday. Centuria Capital Group fell 5.6 per cent and Nick Scali declined 4.4 per cent, both also following the recent release of interim results.
Australia holds focus today with earnings season ramping up as companies report results.
Coming up today
In Australia Amcor, Boral, Dexus Industria REIT, Suncorp, BWP Trust, Bapcor, Megaport, Temple & Webster report earnings.
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