At the time of
writing, the S&P 500 was down 1.6 per cent, the Nasdaq Composite was 2.0 per cent lower and the Dow Jones Industrial Average had declined 1.7 per cent after markets opened post closure on Presidents’ Day.
Walmart rose a slim 0.2 per cent as it topped holiday-quarter earnings expectations in a results release.
However, the retailer gave a weaker-than-expected outlook for the year ahead. Walmart’s CFO said shoppers are still buying fewer discretionary items, as grocery prices remain elevated with inflation.
Home Depot reported fourth quarter earnings and shared the sentiment of a muted outlook, owing to a weakening macroeconomic environment where it expects consumers to pivot from goods to services consumption.
This was the first quarterly revenue miss since 2019 for the retailer. It said it expects same-store sales to be approximately flat in the coming fiscal year. Home Depot had declined 6.0 per cent at the time of writing.
United Airlines and five corporate partners announced they are investing US$100 million to launch a fund to invest in sustainable aviation fuel (SAF).
Joining United Airlines are Air Canada, Boeing, GE Aerospace, JPMorgan Chase and Honeywell. SAF is generally viewed as the most promising option for emissions reduction in an inherently polluting industry. United Airlines had declined 2.6 per cent.
Rest of the World
European stocks closed lower with the European Stoxx 600 Index down 0.2 per cent and the FTSE 100 losing 0.5 per cent.
Asian markets were a mixed bag with the Hang Seng down 1.7 per cent, Shanghai Composite up 0.5 per cent and Nikkei down 0.2 per cent.
Commodities
The US 10-year Treasury bond is up 8 basis points to its highest yield since November at 3.94 per cent.
Brent Oil is currently trading down 1.4 per cent at US$82.90 a barrel, while gold is trading down 0.3 per cent to US$1,835.50 per ounce on a firmer USD and yields.
Bitcoin eased off 1.3 per cent to US$24,445.00.
New Zealand
The NZX 50 Index declined 0.8 per cent yesterday.
All eyes are on the RBNZ Official Cash Rate decision today in the current inflationary environment and in the wake of Cyclone Gabrielle. The RBNZ commentary accompanying the decision will be closely watched.
Mercury Energy reported first half results yesterday. Earnings increased on the prior comparable period, driven upwards by higher hydro generation, while 2023 guidance was left unchanged.
The interim dividend of 9 cents per share was an increase on the 8 cents per share financial year 2022 interim dividend. Mercury declined 1.6 per cent yesterday.
PGG Wrightson’s interim result was categorised by a 6 per cent increase in revenue and 1 per cent increase in earnings before interest, tax, depreciation and amortisation (ebitda).
Sales in retail and water benefitted from market share gains which revenues in agency were impacted by a weak real estate market. PGG Wrightson fell 0.7 per cent.
The A2 Milk Company continued to decline after its result release on Monday, down a further 6.3 per cent.
Sky TV announced it plans to axe 90 jobs in technology, content and customer service and outsource most call centre operations to the Philippines in a cost cutting exercise.
Australia
The ASX 200 traded down 0.2 per cent on Tuesday.
The Ingenia share price declined 13.4 per cent. The retirement and holiday communities developer released its half-year results and reported a 24 per cent increase in earnings before interest and tax, while ebit growth guidance was downgraded for the second half of 0-10 per cent, compared to previous guidance of 30 per cent growth.
Digital brain health assessments company Cogstate declined 14.5 per cent and then entered a trading halt. Cogstate said the trading halt had been requested to enable the company to respond to the price query request from the ASX. Its shares are now down 26 per cent in a week without any news.
Pilbara Minerals recovered from Monday’s slump, up 4.5 per cent, and reports its results today.
Looking ahead, Australia has a significant reporting day coming up today with the likes of Rio Tinto and Woolworths releasing results.
Coming up today
In New Zealand, the RBNZ Official Cash Rate decision is announced today, as is the trade balance and credit card spending. EBOS, NZME and Spark NZ report earnings.
In a big earnings day for Australia, earnings are being released by: EML Payments, ReadyTech Holdings, Rio Tinto, Universal Store, AUB Group, Woolworths, SiteMinder, Hansen Technologies, Nickel Industries, BrainChip Holdings, PEXA Group, Pilbara Minerals, Perseus Mining, National Storage REIT, Flight Centre, Steadfast, APA Group, McMillan Shakespeare, St Barbara, Worley, Santos, Karoon Energy, WiseTech Global, Scentre Group, Domino’s Pizza.
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