Video conferencing company Zoom gained 1.2 per cent after providing higher than expected guidance for the current year.
On the other hand, Norwegian Cruise Line Holdings dropped 12 per cent after it posted a higher loss versus market expectations.
Hospital and healthcare giant Universal Health Services also fell by 8.5 per cent after disappointing on guidance.
Elon Musk has regained his position as the world’s richest person after a strong recovery in Tesla’s shares – up by almost double since the start of the year.
Musk’s net worth now stands at US$187 billion, overtaking Bernard Arnault, the French tycoon behind luxury goods brand LVMH.
However, a warning from the Chinese Communist Party may put this status at risk – after the billionaire was warned overnight for retweeting about the US government’s “low confidence” assessment that the Covid-19 virus originated from a lab leak.
Tesla is hosting an investor day on Wednesday, and the market will likely be watching the event with interest.
Most recently, Tesla’s strategy has been to cut prices of its luxury vehicles – which have seemingly succeeded in spurring demand for its vehicles.
Australia
The ASX 200 gained 0.5 per cent yesterday, recovering some of Monday’s losses on the back of a volatile commodities market.
Electronics retailer Harvey Norman fell by almost 10 per cent following the release of its half-year results, which fell short of market expectations.
While revenue remained steady at A$2.34 billion, the retailer’s operating earnings and underlying profit slumped, leading to a 35 per cent reduction in its interim dividend.
Despite a challenging economic environment, Harvey Norman’s management remains optimistic about the future, citing the resilience of its integrated retail, franchise, property and digital system and its strong balance sheet.
The Albanese government in Australia has announced that earnings from superannuation balances over A$3 million will be taxed at 30 per cent, up from 15 per cent, generating an estimated A$2 billion in revenue annually. Around 80,000 people will be affected by the change, which will come into force in 2025-26 and will not limit funds held in the accumulation phase.
New Zealand
KFC and Pizza Hut owner Restaurant Brands reported its full year result yesterday, highlighting a 16 per cent uptick in total sales, with all four divisions showing growth. However, the company’s profit fell by almost $20 million compared to the year before, due to the impact of inflation and a one-off gain in the prior year.
Heartland Bank rose after announcing a half year underlying profit of $54.7 million, a 16.2 per cent increase compared to the first half last year.
Despite this increase in profit, net interest margin, a key indicator for banks, fell to just below 4 per cent.
The bank also noted it is considering offering up to $75 million of fixed income notes to New Zealand and certain overseas institutional investors, with a right to accept up to an additional $50 million in oversubscriptions at Heartland Bank’s discretion.
Also reporting results was Tower Insurance, which announced year on year growth in its first quarter gross written premiums to $123 million.
Tower’s CEO said the insurer is focused on supporting customers and communities in the aftermath of the North Island weather events in recent weeks. The insurer has received over 5,000 claims for the events already, with expected costs expected to be between $95 million to $125 million.
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