Jarden Brief: Oil rallies to US$110 per barrel

WTI Crude Oil performed well, rallying 0.3 per cent to US$110.08 per barrel. Photo / AP

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

International
US

All major US indices were in the green at the time of writing. The S&P 500 was up 0.9 per cent, the Nasdaq lifted 1.5 per cent and the Dow Jones Industrial Average increased 0.4 per cent.

At the time of writing, most of the sectors were trading in the green, led by consumer discretionary (+2.7 per cent), energy (+1.2 per cent), and technology (+0.8 per cent). The laggard sectors were health and utilities, dropping 0.5 and 0.4 per cent, respectively.

Tax software company Intuit was the top-performing stock of the S&P 500, advancing 9.6 per cent. This follows the company releasing its latest quarter results, posting US$5.6 billion ($8.6b) in revenue. This beat consensus estimates of US$5.514b in revenue. Intuit also elevated its outlook for the current quarter after strong performances by several of its brands, including QuickBooks and Credit Karma.

Rounding out the top movers were retail store Bath & Body Works and consumer electronics company Best Buy, improving 8.8 and 8.4 per cent, respectively.

Medical device company Dexcom was the biggest underperformer at the time of writing, falling a further 3.6 per cent to a new 52-week low.

Closing out the bottom movers was lab instrument manufacturer Waters Corporation and health technology company Hologic, down 3.5 and 3.4 per cent, respectively.

The latest Fed minutes indicated that officials plan to hike interest rates with multiple 50 basis point increases, exceeding what the market anticipated. Members of the Federal Open Market Committee are hopeful that they can combat inflation but are concerned about financial stability risks.

Rest of the world

Asian markets were mixed overnight. The Shanghai Composite increased 1.2 per cent, the Nikkei dropped 0.3 per cent, and the Hang Seng rose 0.3 per cent.

European markets were in the green. The FTSE gained 0.5 per cent, the DAX was up 0.6 per cent and the CAC lifted 0.7 per cent.

Commodities

Gold traded 1.1 per cent lower to US$1845.60 per ounce, while silver declined 0.9 per cent to US$21.88 per ounce.

WTI Crude Oil performed well, rallying 0.3 per cent to US$110.08 per barrel.

The cryptocurrency market was in the green at the time of writing, with Bitcoin increasing 1.7 per cent and Ethereum was 0.2 per cent higher.

The US 10-year Treasury rate was down two basis points to 2.745 per cent alongside a one basis point fall in the 30-year rate, to 2.963 per cent.

New Zealand

The NZX 50 fell 0.7 per cent yesterday, ending the day at 11,173 points.

Leading the market was Pacific Edge, a cancer diagnostics company, which increased 5.1 per cent, ahead of its preliminary full year results announcement today.

Donation management firm Pushpay continued its rise, up 3.6 per cent to $1.45 per share. The company was trading at just over 90 cents three months ago.

Real estate investment company Property for Industry rose 2.9 per cent. The company announced an on-market share buyback programme beginning on May 31 and potentially lasting as long as 12 months. About 25.2 million shares will be bought back, which are currently trading at $2.46 per share.

Serko, a travel management company, dropped 8.5 per cent.

Medical device manufacturer Fisher & Paykel Healthcare lost 3.9 per cent. The company reported a 28 per cent decrease in annual profit in yesterday's full year results release, as the need for its breathing assistance machines had slowed from the abnormally high levels seen earlier in the Covid-19 pandemic.

Film software company Vista Group continued its decline from Tuesday, down another 2.7 per cent.

The Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) by 50 basis points to 2.0 per cent yesterday with the aim of combating record high inflation. The RBNZ now expects the OCR to peak at 3.9 per cent in June 2023 and does not see it declining until late 2024.

Australia

The ASX closed in the green yesterday, up 0.4 per cent.

After a volatile week, seven out of 11 sectors ended higher. Consumer staples was the best performing sector, gaining 1.5 per cent and rebounding from its recent decline. Financials (+0.8 per cent) also performed well. On the flip side, information technology was the laggard sector, falling 3.0 per cent, followed by consumer discretionary (-0.6 per cent).

Costa Group Holdings was the best single stock performer, up 8.6 per cent after the company updated the market on its performance and outlook for the year. The fruit and vegetable grower announced in its chair's speech that it expects earnings to be A$5 million ($5.4m) higher this year, while its net profit after tax will be A$6.4m lower.

Nufarm turned a corner yesterday and recovered from its fall earlier in the week, rising 5.6 per cent.

Perseus Mining Ltd continued its upward trend, rising another 4.5 per cent.

BHP Group fell 10.0 per cent yesterday. The mining company's shares traded ex-dividend for its in-specie dividend (paid in assets rather than cash), yesterday morning. Eligible shareholders will soon receive new Woodside shares for every 5.534 BHP shares they own, as part of a merger between the two companies.

Chalice Mining Ltd returned from its trading halt and finished the day 6.6 per cent lower. The company raised A$100m from institutional investors. These funds were raised at A$6.00 per new share, which was a 10.0 per cent discount to the Chalice Mining share price prior to the trading halt.

Rounding out the bottom performers was Pro Medicus Ltd, down 5.8 per cent on what appears to be no news.

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