Jarden Brief: Nasdaq lifts but S&P 500 has another poor showing after after worst half-year effort in decades

Caesars Entertainment bounced back, gaining 9.2 per cent on the Nasdaq. Photo / 123RF

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

International

US

Following the long weekend break after the worst half-year performance from the S&P 500 in decades, the major US indices were mixed at the time of writing.

The S&P 500 lost 0.4 per cent, the Nasdaq lifted 1.1 per cent and the Dow Jones Industrial Average lost 1.0 per cent.

Sectors were mostly in the red with only three gaining ground, these being consumer discretionary (+1.7 per cent), communication services (+2.0 per cent) and technology (+0.5 per cent).

Underperformers included energy (-4.9 per cent), utilities (-4.0 per cent) and materials (-2.7 per cent).

E-commerce company Etsy led the outperformers, rising 9.8 per cent after facing losses last week.

Norwegian Cruise Line Holdings also gained back some losses from last week, up 9.3 per cent.

Caesars Entertainment gained 9.2 per cent after hitting a new 52-week low.

Conversely, energy stocks are seeing losses as oil trades below US$100, with the biggest drop seen by Halliburton, down 9.5 per cent. ConocoPhillips, Diamondback Energy and Marathon Oil were others booking losses, down 7.5, 7.0 and 6.9 per cent, respectively.

Hydrocarbon exploration company APA Corporation declined 8.5 per cent. Energy company Hess dropped 8.4 per cent at the time of writing.

Ford lost 1.8 per cent after not meeting analysts' expectations for new vehicle sales in the second quarter, albeit sales slightly increasing for that period.

Rest of the World

Asian markets were mixed overnight. The Shanghai Composite closed flat, the Nikkei rose 1.0 per cent and the Hang Seng gained 0.1 per cent.

European markets closed in the red. The FTSE and the DAX declined 2.9 per cent, and the CAC dropped 2.7 per cent.

The Eurozone Producer Price Index (PPI) was released on Monday, showing a slowdown in May to +36.3 per cent year on year, after April's record high of +37.2 per cent. The inflation was largely influenced by energy prices rallying up 94.4 per cent, leaving the PPI to rise just 16.0 per cent from 15.6 per cent in April.

Commodities

Gold traded 2.0 per cent lower to US$1,765.1 per ounce, while silver inclined 3.0 per cent to US$19.08 per ounce.

WTI Crude Oil fell 8.9 per cent to US$98.83 per barrel.

Bitcoin and Ethereum were down 0.3 per cent and 1.6 per cent respectively.

The US 10-year Treasury rate lost 10 basis points to 2.805 per cent alongside a 10-point decline in the 30-year rate, to 3.022 per cent.

New Zealand

The NZX 50 increased for the second day in a row, up 0.9 per cent.

Electronics and software provider Eroad led New Zealand stocks with a 9.5 per cent jump in its share price. The company's share price ended the day more than 70 per cent down over the past year.

Tourism Holdings closed 4.6 per cent higher.

Mercury Energy closed out the top three performers, up 3.7 per cent. The gentailer has confirmed that its annual results will be released on Tuesday 16 August.

Retirement village developers Arvida Group and Ryman Healthcare experienced the biggest losses, down 2.1 and 1.8 per cent respectively. Not all retirement villages were in the red, however, as Summerset and Oceania Healthcare both closed with gains of 0.1 and 1.1 per cent respectively.

NZX also closed in the red with a 1.6 per cent decline in its share price.

The ANZ Commodity Price Index for June showed a 0.7 per decline in local currencies, largely driven by aluminium, meat, and forestry.

Australia

The ASX 200 closed in the green yesterday, up 0.3 per cent after the Reserve Bank of Australia (RBA) lifted its cash rate for a third straight month, by 50 basis points to 1.35 per cent.

The decision marked a 125 basis point rise since May, and the fastest series of moves since 1994. The RBA reiterated it is willing to do "what is necessary" to tame inflation.
Seven out of the 11 sectors traded higher. Energy (+2.2 per cent) led the biggest sector gains.

Information technology (+1.7 per cent) and healthcare (+1.2 per cent) sectors closed in the green, while other sectors remained relatively unmoved, aside from real estate stocks (-1.4 per cent).

Location-based services company Life 360 was the highest single stock mover, up 11.3 per cent. The rise is likely to do with the technology sector performing well overall.

Gold miners Regis Resources Limited rose 10.7 per cent yesterday, after the company reported a 20 per cent quarter on quarter increase in total gold production to 123.9 thousand ounces for June. The announcement outlined the continuous broader market inflationary cost pressures which affect the company.

Medical device company Polynovo rounded out the top three performers, rising 10.1 per cent.

On the flip side, commercial real estate companies Unibail-Rodamco-Westfield and Mirvac Group led the bottom movers, down 4.0 and 2.9 per cent respectively. Concrete block and brick manufacturing company Brickworks Limited also underperformed, down 2.8 per cent.

In macroeconomic news, S&P Global reported the seasonally adjusted Australia Services Purchasing Managers Index (PMI) at 52.6 in June, down modestly from 53.2 in May.

While the service sector expands, aided by easing anti-pandemic restrictions, S&P Global stated "tighter financial conditions and rising costs" are likely impacting service sector results.

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

Jarden is advising Tourism Holdings Limited on an agreement to merge with Apollo Tourism and Leisure Limited.

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