Jarden Brief: Boeing up after Dreamliner build rate booms, but cruise company price plummets

An Air New Zealand 787-9 Dreamliner takes off at Auckland International Airport. Photo / Brett Phibbs

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

International

US

After a strong performance last week, all major US indices were trading down at the time of writing.

The S&P 500 dropped 0.4 per cent, the Nasdaq was down 0.3 per cent and the Dow Jones Industrial Average was 0.1 per cent in the red.

Consumer staples and consumer discretionary were the only sectors in the green at the time of writing, up 1.4 and 0.4 per cent respectively.

On the flip side, energy and financials were the biggest detractors with declines of 3.1 and 1.3 per cent respectively.

PerkinElmer Inc, a company focused on diagnostics and life science research, led the S&P up 6.0 per cent at the time of writing. PerkinElmer announced it is divesting three business units in a US$2.45 billion deal.

Boeing also found some gains with a 5.6 per cent increase in its share price after outlook on its 787 aircraft future build rate has increased. The company still trades approximately 50.0 per cent down from pre-Covid times.

An Air New Zealand 787-9 Dreamliner takes off at Auckland International Airport. Photo / Brett Phibbs

Global Payments Inc closes out the top three performers with a 4.8 per cent jump.

Royal Caribbean Cruises experienced the largest losses, down 10.7 per cent to US$34.6 a share. The company announced that it plans to issue US$900 million in new debt.

Mining company Freeport-McMoran was also in the red with a decline of 5.8 per cent after missing consensus estimates on profits in their financial results.

Technical professional services firm Jacobs Engineering is the final laggard after falling 5.7 per cent.

This followed the announcement of their third quarter results which highlighted a 7.7 per cent increase in net revenue and an adjusted earnings per share jump of 13 per cent.

Rest of the World

European markets also lost ground with the FTSE and CAC down 0.1 and 0.2 per cent while the DAX remained flat.

Contrastingly, Asian markets all closed in the green. The Shanghai Composite, Nikkei and Hang Seng were up 0.2, 0.7 and 0.1 per cent respectively.

Commodities

The U.S 10-Year Treasury rate continued its downward trajectory, losing another three basis points to 2.611 per cent.

Gold and silver experienced gains, up 0.3 and 0.8 per cent respectively.

Oil was in the red with a 4.9 per cent price drop. This brings oil to $US93.78 per barrel and represents a 24.0 per cent price drop from this year's high.

Bitcoin and Ethereum retracted alongside with the US market, down 3.6 and 4.8 per cent respectively.

New Zealand

The NZX 50 started August in the green, rising 0.3 per cent to 11,525.9 points. This built on from July, when the index's capitalisation rose 6.1 per cent.

Infrastructure investment company Infratil was the top performer of the index, advancing 6.7 per cent yesterday.

Together with its co-investors the NZ Super Fund and the Longroad Energy management team, they announced that MEAG, acting as the asset management arm for entities of Munich Re, has agreed to invest US$300 million to acquire a 12% stake in Longroad Energy.

Royal Caribbean Cruises was down 10.7 per cent to US$34.6 a share after announcing plans to issue US$900 million in new debt. Photo / Royal Caribbean Cruise Lines

Infratil and the NZ Super Fund will each also invest a further US$100 million and retain a ~37% stake.

Retirement village operator Oceania Healthcare and retail company The Warehouse Group rounded out yesterday's top movers, elevating 3.2 per cent and 2.5 per cent respectively.

Cancer Diagnostics company Pacific Edge was the biggest underperformer yesterday, dropping 37.8 per cent to -63.5 per cent year to date.

The company announced that its Cxbladder cancer tests might not qualify for reimbursement by Novitas, a major US health insurance company, if its proposed new coverage process is put in place unchanged. The decision on these changes is still pending.

Film technology company Vista Group International and fast-food company Restaurant Brands closed out yesterday's bottom movers, decreasing 5.5 per cent and 3.3 per cent, respectively.

Both companies are set to release their half year results at the end of this month on the 29 August.

Australia

The ASX 200 rose 0.7 per cent yesterday to set a new 20-day high.

Sectors were mostly in the green with eight of 11 closing higher. Utilities was up 2.0 per cent, energy lifted 1.9 per cent and healthcare increased 1.6 per cent.

Conversely, information technology was down 0.4 per cent and consumer discretionary declined 0.2 per cent.

Lithium company Allkem was the top performer, rising 4.5 per cent. Miner Lynas Rare Earths increased 4.5 per cent and agribusiness Elders traded 4.2 per cent higher.

On the flipside, United Malt Group was the biggest laggard, dropping 17.2 per cent.

This comes after the food and beverage ingredient supplier released a trading update where they lowered expected underlying earnings before interest, tax, depreciation and amortisation to a range of A$100 million to A$108 million for FY22.

The company cited the reasons being the delay in the anticipated improvement of the North American Processing segment due to continued supply chain disruptions, higher than expected energy costs and the cost and quality of domestically-sourced North American barley supply.

The network and service provider Megaport dropped 14.4 per cent and bookmaker Pointsbet Holdings lost 14.2 per cent.

Westpac increased 0.7 per cent yesterday. It announced the completion of the sale of Westpac Life Insurance Services to TAL Dai-ichi Life Australia.

The terms of sale remained unchanged, and Westpac expects to report a total after tax loss of approximately A$1.37 billion on the sale.

The latest ANZ Australian Job Ads data was published yesterday, which saw a decrease of 1.1 per cent month on month in July. This compares to a 1.4 per cent month on month increase in June and ANZ noted that it may signal having passed the peak in job ads.

The Reserve Bank of Australia is scheduled to announce the latest cash rate today at 2.30pm AEST.

• For more information on the latest market moves, get in touch with Jarden.

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