Nvidia was up 12.7 per cent after the chipmaker topped expectations on top and bottom lines at the result release, despite a 46 per cent year-over-year decline in gaming revenue.
There appear to be opportunities for growth for Nvidia.
“AI is at an inflection point, setting up for broad adoption reaching into every industry,” chief executive Jensen Huang said.
E-commerce company eBay declined 6.5 per cent. This week it warned that demand was set to decline in the first half of 2023, after reporting a fall in holiday-quarter earnings due to reducing consumer spending in its largest markets of United States and Europe.
Netflix lost 5.2 per cent. Dissatisfaction around Netflix’s new password crackdown, generally requiring users to be in the same physical location, appears to be growing.
Netflix has declined 10.5 per cent in the last five days.
Rest of the World
European stocks were a mixed bag. The European Stoxx 600 Index rose 0.1 per cent and the FTSE 100 declined 0.3 per cent.
Asian markets were in the red with the Hang Seng down 0.4 per cent, Shanghai Composite 0.1 per cent lower and the Nikkei losing 1.3 per cent.
Commodities
Brent Oil is currently trading up 1.5 per cent at US$81.80 a barrel, while gold is trading down 0.2 per cent to US$1821.00 per ounce.
The US 10-year Treasury bond lost one basis point and is now at a yield of 3.93 per cent.
Usually-volatile Bitcoin is instead flat at US$23,799.30.
New Zealand
The NZX 50 Index gained 0.8 per cent yesterday,
Auckland International Airport and Air New Zealand released their interim results yesterday.
Auckland International Airport reported its first interim underlying profit in two-and-a-half years with the travel rebound post-pandemic.
For the full 2023 financial year Auckland International Airport expects international passenger numbers will be about 70 per cent and domestic passengers will be about 85 per cent of pre-Covid levels. Auckland International Airport rose 2.9 per cent.
Air New Zealand declined 1.2 per cent. The company reported a pre-tax profit increase of 180 per cent on the previous Covid-impacted period.
Domestic capacity is at 94 per cent of pre-Covid levels and international is 60 per cent.
The airline will consider paying dividends at its full year result considering the rebound has been faster than expected. However, it acknowledged uncertainty in the macroeconomic outlook.
Comvita announced record earnings and record revenue at its interim result.
Operating profit increased by 60.9 per cent on the prior comparable period.
Comvita Chairman Brett Hewlett acknowledged extensive damage to the facility in Hawke’s Bay following Cyclone Gabrielle, and the expectation for the site to be written off entirely but noted insurance cover was in place.
Extraction has been moved to another facility and apart from significant disruption in Hawke’s Bay, the company does not expect any material impact to daily operations. Comvita rose 0.6 per cent.
Australia
The ASX 200 traded down 0.4 per cent on Thursday.
Earnings season continues to hold focus in Australasia.
Qantas’ interim result showed a 222 per cent increase in revenue and the airline announced an up to AU$500 million on-market share buyback.
However, investor expectations appear to have been higher than the result released, with Qantas declining 6.8 per cent yesterday.
Australia’s largest insurer Medibank Private reported an underlying profit increase of 6.7 per cent and declared a fully franked dividend of A$6.3 cents per share. Medibank rose 6.5 per cent yesterday.
Insurance Australia Group has reported over 10,000 claims for damage from Cyclone Gabriel in New Zealand.
IAG announced 60 per cent of the claims for damage were for homes, 20 per cent for contents, and 10 per cent for business with the remainder for boat and vehicle damage.
IAG faced 22,000 claims for damage from floods in Auckland at the end of January.
This triggered a warning from the insurer it was facing a A$236m bill for the damage. IAG fell 1.3 per cent.
Coming up today
Earnings releases in NZ are expected from: Channel Infrastructure, Delegat Group, Port of Tauranga, and Summerset Holdings.
Companies in Australia reporting their earnings are: Link Administration, Bravura Solutions, Reece, GWA Group, Block Inc, APM Human Services, Paladin Energy, PointsBet, Lynas Rare Earths, Austal, Kogan.com, Harvey Norman, Eagers Automotive, Mesoblast, Integral Diagnostics, Jumbo Interactive, and Brambles.
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