Jarden Brief: Rusty day for car parts company, cruise lines surge on Covid rule relaxation hopes

It was a scrappy day for Advanced Auto Parts, falling 9.5 per cent despite earnings per share increasing. Photo / 123RF

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

International

US

Major US indices were up at the time of writing. The S&P 500 lifted 0.2 per cent, Nasdaq gained 0.4 per cent and the Dow Jones Industrial Average was unchanged.

Sectors were mostly up, with only two in the red. The top gainers were real estate (+0.7 per cent), consumer discretionary (+0.5 per cent) and communication services (+0.4 per cent). Underperformers were materials (-0.2 per cent) and technology (-0.1 per cent).

Illumina was performing well at the time of writing, climbing 8.4 per cent. The company reported earnings per share for the second quarter of 2022 of US$0.57 earlier this month.

Cruise stocks dominated the top performers, with Norwegian Cruise Line Holdings, Royal Caribbean Cruises and Carnival Corporation rising, up 7.9 per cent, 6.5 per cent and 4.8 per cent, respectively. Some cruise lines are set to start easing Covid-19 restrictions, such as vaccine requirements, in September.

Conversely, Advanced Auto Parts fell 9.5 per cent following the release of second quarter results in which earnings per share increased to US$3.74, just missing the US$3.75 expected result. The company's full year outlook was also adjusted in the report, with inflation and fuel prices hiking costs for the business.

Newell Brands declined 3.6 per cent. The company's July earnings report showed earnings per share of US$0.36 for the first quarter of 2022, with the next earnings release due in October.

Laboratory Corporation of America dropped 3.0 per cent. Earnings per share for the second quarter of 2022 of US$4.95 were released in July.

Pending home sales data was released, revealing a second straight monthly decline in July 2022 of 1.0 per cent. Only one of four major regions posted an increase in pending sales, with the west lifting 2.2 per cent.

The typical monthly mortgage payment in June inclined to nearly US$2,000 in June, a 54 per cent increase from the previous year.

Durable goods orders fell flat in July after June's 2.2 per cent increase. Orders for transportation equipment fell 0.7 per cent while civilian aircraft orders soared 14.5 per cent. However, orders for defence aircraft dropped 49.8 per cent.

Rest of the World

Asian markets continued their decline overnight. The Shanghai Composite declined 1.9 per cent, the Nikkei decreased 0.5 per cent and the Hang Seng was down 1.2 per cent.

European markets closed mixed. The FTSE dropped 0.2 per cent, the DAX gained 0.2 per cent and the CAC inclined 0.4 per cent.

Commodities

Gold traded a slim 0.1 per cent higher at US$1,762.7 per ounce, while silver fell 0.5 per cent to US$18.925 per ounce.

WTI Crude Oil rose 1.3 per cent to US$94.95 per barrel.

Bitcoin gained 0.7 per cent and Ethereum lifted 0.2 per cent.

The US 10-Year Treasury rate gained five basis points to 3.108 per cent alongside a seven point incline in the 30-year rate, up to 3.323 per cent.

New Zealand

The NZX 50 remained largely unchanged yesterday, up a slim 0.1 per cent.

Scales Corporation reversed Tuesday's performance, with a 3.9 per cent increase in its share price. The company released its half year results, which showed a net profit after tax of $35.1 million, and an increase to its forecast ebitda (earnings before interest, tax, depreciation and amortisation) to a range of $65 and $75 million.

Freightways continued to rally with a further 3.4 per cent increase in its share price. The company was up more than 8.0 per cent this week.

Sanford rounded out the top three performers with a 2.3 per cent jump.

Heartland Group declined 10.9 per cent to $1.89 a share. The company released its net profit of $95.1 million on Tuesday.

Oceania and Precinct also closed in the red, down 4.0 per cent and 3.2 per cent respectively.

EBOS released its full year results. The company posted revenue of $11.2 billion, net profit of $226.0 million and a fiscal year dividend of $1.04 per share. EBOS closed 1.3 per cent higher.

Australia

The ASX 200 gained ground yesterday, improving 0.5 per cent to 6,998.10 points.
Seven sectors closed in the green. Energy increased 2.8 per cent, followed by information technology (+2.2 per cent) and materials (+1.1 per cent). Consumer staples (-1.3 per cent) ranked among the laggards, along with telecommunications services (-1.0 per cent) and the Australian real estate investment sector (-0.7 per cent).

Wisetech Global increased 12.8 per cent. The software company reported total revenue of A$632.2 million for fiscal year 2022, 25 per cent higher than the previous year. Wisetech's underlying net profit after tax swelled 72 per cent to A$181.8 million. The company's AU6.40 cents per share final dividend took total dividends for the 2022 fiscal year to AU11.15 cents per share, a 71 per cent increase on 2021.

Iluka Resources gained 9.8 per cent. The mineral sands company released its results for the half year to 30 June. Compared to the first half of 2021, mineral sands revenue increased 30 per cent on higher prices. Net profit after tax gained 186 per cent to A$369 million.

Bookmaker Pointsbet Holdings improved 8.7 per cent.

EML Payments slipped 10.6 per cent. The payment solutions company advised of fraudulent activity related to its Sentenial open banking business. EML were confident that losses would remain under A$7.9 million.

Healthcare business Nanosonics declined 5.6 per cent, a day after releasing results headlined by a 56.9 per cent net profit reduction.

Rounding out the underperformers, cement manufacturer Adbri fell 4.8 per cent.

• 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.

Jarden is advising Heartland Group Holdings Limited in its announced capital raise.

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