Chipotle Mexican Grill traded 12.4 per cent higher after the restaurant chain reported quarterly net income of US$259.9 million. Photo / Getty
Keeping you up to date with the latest market moves, in association with Investment firm Jarden
International
US
The Federal Reserve chair announced a second consecutive 0.75 percentage point hike in the interest rate at the latest meeting, as policy makers attempt to combat high levels of inflation.
All three major US indices performed well and held onto their gains from earlier in the session. At the time of writing, the S&P 500 had risen 1.6 per cent, the Nasdaq increased 2.6 per cent and the Dow Jones Industrial Average was up 0.3 per cent.
Sectors were mainly trading higher. Communication services and technology led the sector gains, up 4.0 per cent and 2.7 per cent respectively. Healthcare and utilities went against the run of play, both down 0.3 per cent.
Enphase Energy was the frontrunner, up 16.0 per cent at the time of writing. The solar equipment company's share price rose after posting strong results for the second quarter.
Enphase reported revenue of US$530 million amid growing demand for its microinverters and energy storage products. Europe was the key growth area, with revenue from the region improving 69.0 per cent, quarter over quarter, as the energy system continues its transition away from fossil fuels.
Chipotle Mexican Grill traded 12.4 per cent higher after the restaurant chain reported quarterly net income of US$259.9 million, up from US$188 million a year earlier.
The company reported weaker-than-expected sales for its second quarter, but higher prices drove strong profit growth. Chipotle was able to offset an increase in costs for key ingredients like avocados, dairy and beef, with several rounds of price increases.
Joining the single stock movers was PayPal Holdings, rising 10.7 per cent.
On the flip side, the electronic device company Garmin Limited fell 9.8 per cent after second-quarter sales declined to US$1.24 billion, a 6.0 per cent decrease compared to the strong, pandemic-driven prior year quarter.
The company pointed to a strong dollar and supply chain issues as reasons for the weakness.
Paint and coating manufacturer Sherwin-Williams dropped 9.2 per cent. The decrease in share price might be connected to the company's cut in its full-year profit outlook, warning of higher prices and falling demand.
Rounding out the bottom performers was Teledyne Technologies, down 7.4 per cent. The industrial company reported second-quarter net income of US$171.3 million, an increase of 164.8 per cent compared with the same period last year.
Major technology companies reported quarterly earnings.
Microsoft saw its slowest revenue growth since 2020, at 12.0 per cent year over year in the quarter, which ended June 30.
Alphabet reported weaker-than-expected results, as revenue growth slowed to 13.0 per cent in the quarter, from 62.0 per cent a year earlier when the company was benefiting from the post-pandemic reopening and consumer spending was on the rise.
Rest of the World
Asian markets were mixed at the time of writing. The Shanghai Composite was down 0.1 per cent, the Nikkei improved 0.2 per cent and the Hang Seng fell 1.1 per cent.
European markets closed higher ahead of the US Federal Reserve's decision. The FTSE rose 0.6 per cent, the DAX increased 0.5 per cent and the CAC improved 0.8 per cent.
Commodities
WTI Crude Oil traded 2.6 per cent higher to US$97.39 per barrel.
Gold also performed well, up 0.1 per cent to US$1,718.90 per ounce.
The cryptocurrency market was largely in the green, with Bitcoin having increased 3.7 per cent and Ethereum up 10.2 per cent.
The US 10-Year Treasury rate fell two basis points to 2.768 per cent, whilst the 30-Year rate dropped one basis point to 2.998 per cent.
New Zealand
The NZX 50 was in the red for the third time this week, down 0.3 per cent yesterday.
Restaurant Brands was the biggest underperformer, dropping 9.4 per cent after releasing its profit guidance and second quarter sales.
The announcement noted that Covid-19 continues to affect the business operations through staffing issues and the company is experiencing significant cost inflation across all regions.
The restaurant company's total sales for the second quarter grew to $309.5 million, which represents a 10.2 per cent increase compared to the previous year's second quarter.
Preliminary management financial results indicate that net profit after tax for the half-year ending 30 June 2022 will be between $14 million and $16 million.
Healthcare company Pacific Edge was also in the red, down 3.7 per cent and clothing company KMD Brands rounded out the bottom movers with a dip of 2.7 per cent.
In contrast, the top performer was freight and logistics technology company Eroad, climbing 1.9 per cent. Meridian Energy rose 1.5 per cent and Port of Tauranga increased 1.1 per cent.
Burger Fuel Group (+3.1 per cent) announced it will be holding its annual meeting of shareholders on Wednesday 31 August 2022 commencing at 11.00 am.
Australia
The ASX 200 closed in the green yesterday, up 0.2 per cent to 6,823.2 points.
The healthcare, financial and consumer discretionary sectors rose 1.2, 1.1, and 0.9 per cent, respectively.
The sectors experiencing the largest decreases were materials (-1.2 per cent), utilities (-0.6 per cent) and telecommunications services (-0.4 per cent).
Technology company ZIP Co led the market for the second day in a row, up 21.0 per cent after Wednesday's trading, following no recent news. Despite the large movement, and a 19.9 per cent increase after Tuesday's trading, the stock is still down 71.4 per cent from the start of the year.
Software provider and computer chip manufacturer Brainchip rose 8.6 per cent.
The company recently released its June Quarterly Report revealing customer receipts of US$1.2 million, a significant jump from the approximately US$200,000 seen in the first quarter.
Biotechnology company Clinuvel Pharmaceuticals increased 8.0 per cent.
The largest loss was seen by retail clothing company City Chic Collections, down 5.1 per cent. It appears no recent news has been released by the company.
Iron exploration and development firm Champion Iron decreased 4.5 per cent.
Mining company Iluka Resources fell 4.3 per cent. Iluka has recently completed the demerger of its rutile (a form of titanium dioxide) business into a separate entity, Sierra Rutile Holdings Limited.
Management hopes this will allow the business to grow more efficiently and increase value for Iluka shareholders. Eligible Iluka shareholders will receive one Sierra Rutile share for each Iluka share owned with normal trading commencing on 5 August.
Yesterday, the Australian Bureau of Statistics updated their Consumer Price Index figures, indicating that the annual inflation rate had risen to 6.1 per cent.
While the highest level in more than 20 years, it was slightly below consensus expectations, which pointed to a figure of 6.3 per cent.
Australian Treasurer Jim Chalmers is providing an economic update to parliament on Thursday.
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