Covid-19 continues to have an impact on the US economy. Photo / Getty Images
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
New Zealand:
The NZX 50 continued to decrease yesterday, down 0.4 per cent, after two Covid-19 cases were confirmed in Christchurch.
On Thursday the Government also announced that from mid-November time spent in MIQ for overseas arrivals would be halved to seven days, followed by three days of home isolation. This is expected to free up 1,500 MIQ spots.
Energy and healthcare were the laggards of the day, declining by 1.1 and 0.8 per cent, respectively. Technology and financials closed higher, each increasing 0.4 and 0.3 per cent.
Skellerup Holdings was the best performer on the NZX 50, trading 1.8 per cent higher. The rubberwear producer had its annual general meeting on Wednesday, to which the market appeared to react positively.
Next in line was Port of Tauranga, up 1.7 per cent, ahead of its annual shareholder meeting later today.
Cancer diagnostics company Pacific Edge also performed well, rising 1.4 per cent.
On the flipside, Tourism Holdings reversed some of the gains made earlier this week, decreasing by 2.9 per cent. Ryman Healthcare was also down, by 2.8 per cent. The retirement village owner and operator announced yesterday that it acquired extensions to two existing Victorian sites. The company also announced earlier this week that it will present its half-year 2022 results on the 19 November 2021.
Rounding out the biggest decliners was Synlait Milk, decreasing a further 2.5 per cent. The dairy company announced yesterday that it will hold its annual meeting on 1 December 2021 as a fully virtual event.
International Markets:
US:
US markets flushed green at the time of writing. The S&P 500 was 0.7 per cent higher, the Nasdaq was trading up 1.1 per cent, and the Dow Jones Industrial Average had increased 0.4 per cent.
Notably, all sectors were trading higher, with consumer discretionary and materials the top performers, up 1.5 and 0.9 per cent, respectively.
US GDP increased 2.0 per cent in the third quarter compared to the same period a year prior, coming in lower than expectations and indicating slowing growth in the US. This slowing growth is largely attributed to increasing Covid-19 cases in the US, supply chain problems, and rising inflation.
The company reporting season continued. Teradyne rose 12.2 per cent following the release of its earnings report. US$1.59 profit per share exceeded US$1.43 average market estimates.
Ford Motor Company increased 8.5 per cent following a results release that exceeded expectations and increased annual guidance.
Northrop Grumman lost 7.0 per cent. The defence company's third-quarter financial year 2021 revenue of US$8.72 billion came in lower than the US$8.95 billion average market expectation.
E-commerce company eBay declined 6.1 per cent after releasing fourth-quarter revenue guidance between US$2.57 billion and US$2.62 billion. In the third quarter 2021, market earnings expectations were met, at US$2.50 billion.
Rest of the World Markets
Asian indices were in the red again. The Hang Seng traded down 0.3 per cent, the Nikkei fell 1.0 per cent, while the Shanghai Composite fell 1.2 per cent.
Commodities:
In commodities this morning, Gold traded up 0.2 per cent, just beyond US$1,800.00 at US$1,802.50 per ounce. WTI crude oil declined 0.4 per cent to US$82.37 per barrel, a two-week low, while data released on US inventories of crude showed an unexpected jump. The US 10-year bond is trading at 1.575 per cent.
Cryptocurrencies made a partial recovery, with Bitcoin up 3.9 per cent while Ethereum gained 6.0 per cent.
Australian Markets:
The ASX 200 edged lower during Thursday's trading following timid overnight movements in other offshore markets, posting a 0.3 per cent loss to finish the day on 7430.4 points. The ASX 200 edged lower during Thursday's trading, following timid overnight movements in other offshore markets, posting a 0.3 per cent loss to finish the day on 7430.4 points.
Educational services and financials were the day's leading sectors, with gains of 0.6 and 0.2 per cent, respectively.
Water flow and plumbing solutions company Reliance Worldwide Corporation (RWC) advanced to lead the market for two consecutive days, higher by 5.2 per cent (4.6 per cent on Wednesday). On Thursday, RWC held its annual general meeting (AGM), with commentary from management and the board upbeat on the company's prospects heading in to 2022.
AGM's were the headline news flow for Thursday's single stock winners, with construction and building supplier Boral, and homeware company Reece, finishing in second and third place (up 4.6 and 4.3 per cent) with both releasing guidance following their respective AGM's.
It was a poor day for both the energy (-1.8 per cent) and materials (-1.2 per cent) sectors, as markets still worked through the Australian Government's new plan to reduce emissions to net zero by 2050, released on Tuesday.
Online betting platform Pointsbet Holdings fell 18.3 per cent after its first quarterly trading update seemingly underwhelmed investors' expectations. The update confirmed some slippage in market share amongst its US competitors, where management noted significant marketing spend may be needed to compete in that space.
Financial services company IOOF holdings lost 8.5 per cent. Its own quarterly trading update saw its funds under management rise to A$222 billion, up A$1.8 billion over the quarter. These figures were overshadowed by an unexpectedly large portion of withdrawals from retail and institutional investors. Nickel Mines also fell 6.0 per cent on weaker underlying commodity prices.
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Disclaimer: This Morning Brief has been prepared in good faith and reflects opinions and views at the time of publication, using external sources, systems and other data and information we believe to be accurate, complete and reliable at the time of preparation. We make no representation or warranty as to the accuracy, correctness and completeness of that information, and will not be liable or responsible for any error or omission. This Morning Brief is not to be relied upon as a basis for making any investment decision. Please seek specific investment advice before making any investment decision. Jarden Securities Limited is an NZX Firm, a broker disclosure statement is available free of charge at www.jarden.co.nz. Jarden is not a registered bank in New Zealand. Full disclaimer available at: https://www.jarden.co.nz/limitations-and-disclaimera>
BGH's tilt at Tourism Holdings has sparked more merger and acquisition speculation.