Jarden Brief: Tech giant big reports due this week and Fed interest rate decision looms

Apple's corporate HQ in Cupertino, California. Financial reports are expected this week from the company and other tech giants. Photo / 123RF

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

International

US

The major US indices were mixed at the time of writing. The S&P 500 was trading flat, the Nasdaq was down 0.5 per cent and the Dow Jones Industrial Average rose 0.1 per cent.

Investors await the significant line up of financial reports that are expected this week, including Microsoft, Apple, Alphabet, Meta Platforms and Amazon. Monetary policy decisions from the US Federal Reserve, due this Wednesday, will also provide insights into further interest rate hikes.

Sectors were also mixed. Energy led the sector movers, up 3.2 per cent after the price of oil traded higher on fears that supply will remain tight.

On the other hand, consumer discretionary (-1.1 per cent) and technology (-0.8 per cent) were the worst performers at the time of writing.

SVB Financial Group, the parent of Silicon Valley Bank, was the best single stock performer, up 7.6 per cent.

Oil and gas companies led the way amongst rising oil prices as Diamondback Energy rose 6.3 per cent, APA Corporation was up 5.9 per cent, and Marathon Oil Corporation finished higher by 5.6 per cent, respectively.

On the flip side, gold producer Newmont Corporation fell 12.6 per cent. This follows the mining company's earnings announcement for the second quarter of US$387 million, compared to US$650 million in last year's second quarter.

Newmont also raised its annual cost forecast and warned that inflationary pressures would persist in 2023. Higher operating costs related to labour, energy and supplies led the miner to increase its annual forecast for all-in sustaining costs (AISC), an industry metric that reflects total expenses, to $1,150 per ounce.

Next in line was IDEXX Laboratories, down 4.8 per cent. The company distributes products and provides services for the companion animal veterinary, livestock and poultry, water testing and dairy markets.

Rounding out the bottom performers was Align Technology, down 4.2 per cent at the time of writing. The orthodontics company is down 61.3 per cent year-to-date.

Rest of the World

Asian markets results were down overnight. The Shanghai Composite fell 0.6 per cent, the Nikkei declined 0.8 per cent and the Hang Seng decreased 0.2 per cent.

European markets were mixed at the time of writing. The FTSE and the CAC were up 0.4 and 0.3 per cent respectively, while the DAX traded 0.3 per cent lower.

Commodities

WTI Crude Oil rose 1.6 per cent to US$96.23 per barrel.

Gold traded 0.4 per cent lower to US$1,719.7 per ounce. Silver fell 1.4 per cent to US$18.35 per ounce.

The cryptocurrency market was largely in the red at the time of writing. Bitcoin and Ethereum dropped 3.6 per cent and 5.2 per cent respectively.
  
The US 10-Year Treasury rate was up four basis points to 2.82 per cent, alongside a five basis point rise in the 30-Year rate to 3.047 per cent.

New Zealand

The NZX 50 started the week in red with a drop of 0.6 per cent yesterday.

Freight and logistics technology company Eroad was the top performer, rising 5.0 per cent.

Retirement village operator Summerset was up 3.4 per cent and real estate investment company Property for Industry increased 2.0 per cent.

On the flip side, Heartland Group lead the decliners, down 3.8 per cent. The a2 Milk Company fell 3.4 per cent on the back of a competitor in the infant milk formula space, Feihe, putting out a profit warning late Friday evening. Lastly, Stride Property Group rounded out the bottom movers with a decrease of 2.8 per cent.

Real estate investment trust Goodman Property rose 1.0 per cent after releasing its Managed Investment Scheme Annual Report. Highlights included statutory profit of $763.8 million before tax up 17.7 per cent, operating earnings of $118.3 million before tax, an increase of 3.0 per cent, and net tangible assets rising 22.6 per cent to 260.6 cents per unit.

Green Cross Health, a provider of primary health care services across New Zealand, increased 1.5 per cent after holding its Annual Shareholders Meeting yesterday. Results included group revenue of $670.3 million, up 18 per cent on FY21, with net profit after tax increasing 47 per cent on FY21 to $24.6 million.

Restaurant Brands is expected to release its second quarter sales on Wednesday.

Australia

The ASX 200 remained flat yesterday, with the index losing just 1.6 points, closing at 6,789.9.

Sectors were mixed with materials, utilities, and industrials rising 1.1, 1.1, and 0.7 per cent, respectively. Losing ground were information technology (-1.5 per cent), telecommunication services (-1.2 per cent), and healthcare (-1.0 per cent).

Leading the index was Insurance Australia Group (IAG), up 5.9 per cent. Last week, IAG released its preliminary annual results for the year ended 30 June.

Among the figures, a net profit after tax of A$347 million was reported (as compared to the A$427 million loss in 2021).

Insurance firm Steadfast Group and gold miner Evolution Mining both rose 3.9 per cent, following seemingly no news.

On the other side of the market, software and payment solutions company EML Payments fell 22.2 per cent.

This followed an announcement from the company that the Central Bank of Ireland has "identified shortcomings in components of the remediation programme" being undertaken by EML's Irish subsidiary, PFS Card Services. Following Monday's trading, the stock was down 79.1 per cent from the start of the year.

Betting services company Pointsbet decreased 10.3 per cent, on the back of no news having been released.

Biotechnology firm Imugene lost 9.8 per cent. The company revealed its June quarterly report which indicated net cash used during operation amounted to A$10.2 million.

The company still holds A$99.9 million in cash.

Analysts this week have been looking to Wednesday, awaiting updated Consumer Price Index figures to be released from the Australian Bureau of Statistics.

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