Technology stocks continued to lead the charge on Wall Street yesterday and the Australian share market is likewise poised for gains today.
Market indicators show ASX 200 futures down by 0.9% to 7,572 points, with the Australian dollar slightly up by 0.1% at 65.69 US cents.
Wall Street ended on a positive note, with the Dow Jones up by 0.8%, the S&P 500 by 1.1%, and the Nasdaq by 1.2%.
Earnings due
US investors were waiting on quarterly earnings from tech behemoths Apple, Amazon, and Meta Platforms, due this morning, and on the whole they weren’t disappointed.
The post earnings results in after-hours trading for the three mega caps showed the following movements:
- $AMZN +8.24% to $172.40;
- $META + 14.49% to $452; and
- $APPLE - 1.55% to $183.97.
“Expect to see a sea of green across regional equity markets when they open up this morning,” said IG’s Tony Sycamore of the results.
It wasn’t all plain sailing in the US overnight though. The session saw initial pressures on the US regional banking sector, which dissipated as the day wore on.
Nonetheless, shares of New York Community Bank (NYCB) continued to decline, following a significant loss announcement and a cut in its dividend.
This led to a temporary dip in the sector, with the KBW regional bank index falling by 1.8% by the afternoon, although it substantially recovered from earlier losses triggered by NYCB's financial distress.
NYCB's stock witnessed a sharp 11.1% drop at close, an extension of a dramatic 38% fall the previous day, which has renewed concerns over potential losses in the US commercial property market.
Despite these worries, Bank of America has downplayed the risk of contagion, attributing the market's reaction to factors unique to NYCB.
Other technology movements
Atlassian (NASDAQ:TEAM) reported a net loss of US$84.5 million despite a 21% increase in sales to US$1.06 billion.
Conversely, Meta Platforms' shares surged by 12% in after-hours trading, as its sales guidance for the March quarter exceeded analysts' expectations, coupled with the announcement of a quarterly dividend.
Amazon also saw its stock rise post-announcement of sales results that surpassed expectations.
Apple, however, experienced a slight dip in its shares following a report of earnings per share up 16% to US$2.18 on flat sales for the December quarter, with analysts pointing to disappointing sales in China as a potential cause for the lacklustre share price reaction.
Other notable mentions include shares of Euroz Hartleys Group and Nickel Industries, both trading ex-dividend.
Market snapshot
- ASX 200 futures: -0.9% to 7,572 points
- Australian dollar: +0.1% at 65.69 US cents
- Wall Street: Doow +0.8% S&P 500 +1.1% Nasdaq +1.2%
- Europe: DAX -0.3% FTSE -0.1% STOXX600 -0.4%
- Asia: Nikkei -0.8%
- Spot gold: +0.3% to $US2,072/ounce
- Brent crude: -2.1% to $US78.88/barrel
- Iron ore: +0.4% to $US131.20 a tonne
- Bitcoin: +0.5% to $US42,965 US 10-year bond: 3.88%
Source: ABC
What’s happening in small caps?
The S&P/ASX Small Ordinaries closed at 2,915.50 yesterday, slipping 1.36% on the previous day.
Making news this morning, which you can read more about throughout the day with Proactive:
- Triangle Energy Ltd’s joint venture with Orcadian Energy PLC (AIM:ORCA) has been offered a licence covering nine blocks in the Central North Sea as part of the second tranche of awards in the 33rd UK Licensing Round.
- Andromeda Metals Ltd (ASX:ADN, OTC:ANDMF) independent non-executive director Melissa Holzberger will step down from the board of the company with effect from 2 February 2024, reflecting a change in her board commitments.
- Animoca Brands Corporation Ltd, along with ForbesWeb3 and Open Campus, have partnered on OC100, a pioneering competition to spotlight the best creators who are promoting learning and growth on Web3 through educational content.
- Olympio Metals Ltd (ASX:OLY, OTC:COPGF) has come to agreement to sell three of the Halls Creek Project tenements in the East Kimberley regions of Western Australia.