Drug manufacturing giant Eli Lilly and Co found a new 52-week high and was up 7.0 per cent after the company announced promising results from a Phase 3 study evaluating Donanemab for the treatment of Alzheimer’s disease.
Starbucks shares tumbled 9.0 per cent despite beating market expectations and posting stronger-than-expected same-store sales growth for its second quarter 2023 financial year results.
However, the company signalled earnings per share would be at the lower end of its guidance range for financial year 2023. It appears the market may have expected an increase in earnings guidance from Starbucks for the financial year.
Commodities
Brent Oil is currently trading down 3.7 per cent at US$72.50 a barrel after the Federal Reserve rate hike, while gold is trading up 0.9 per cent to US$2,033.90 per ounce. Bitcoin declined 0.3 per cent.
The US 10-year Treasury bond shed 7 basis points to a yield of 3.37 per cent.
New Zealand
The NZX 50 declined 1.1 per cent yesterday.
S&P Dow Jones Indices announced yesterday that it will remove payment software provider Pushpay Holdings from the S&P/NZX Indices subject to court approval of the scheme of arrangement whereby the company will be acquired by Pegasus Bidco Limited.
This will be effective prior to the market open on May 11, 2023.
The a2 Milk Company continued its decline yesterday, down 3.2 per cent. This brings its year-to-date decline to 22.5 per cent, closing the day at $5.72 per share.
New Zealand labour market data was released yesterday.
According to the Labour Cost Index (LCI) all salary and wage rates including overtime increased 4.3 per cent in the year to the March 2023 quarter, while the unadjusted LCI increased 5.8 per cent.
The unemployment rate remained unchanged at 3.4 per cent in the March 2023 quarter, lower than the RBNZ’s Monetary Policy Statement forecast of 3.5 per cent.
The participation rate, which is the total labour force expressed as a percentage of the working-age population, lifted to a record high 72 per cent.
Australia
The ASX 200 finished 1.0 per cent lower yesterday.
Leading the decliners was global packaging company Amcor (-9.5 per cent) after posting its third-quarter earnings.
The company warned demand is likely to remain weak and volatile in the June quarter as consumers reduce spending in the current inflationary environment and downgraded its full-year earnings forecast.
Ramsay Healthcare fell 4.8 per cent. It appears the reported boost to its revenue in its nine-month earnings fell short of market expectations.
The company continues to expect a gradual recovery in earnings through financial year 2023 and more normalised conditions in financial year 2024.
All the big four banks suffered losses.
Commonwealth Bank declined 1.8 per cent, Westpac was down 1.7 per cent, ANZ fell 1.6 per cent and National Australia Bank (NAB) slid 1.9 per cent ahead of its half year financial year 2023 results today.
Coming up today
US: FOMC Rate Decision, Trade Balance, Initial Jobless Claims.
Eurozone: PPI; China: Caixin PMI Manufacturing.
Australia: Trade Balance, NAB 1H Earnings, TPG Telecom AGM, Iress AGM.
NZ: Building Permits.
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