It looks like the Australian share market will start the day flat after a mixed day of trade on Wall Street overnight.
At 8am this morning, supermarket giant Coles dropped its financial year results, which are being watched keenly not only by the markets but by consumer advocates.
Back in the US, cautious investors are focused on upcoming economic data for clues on the Fed’s next move and eagerly await a slew of company earnings.
Despite earlier climbing more than 200 points, the Dow Jones closed up by just 65 points, or 0.2%, marking a new record high, while the broader S&P 500 index fell 0.3% and the Nasdaq index tumbled 152 points or 0.9%.
Tech drag
The reason for the Nasdaq’s poor performance was, of course, a drag caused by the technology sector, with the Philadelphia SE Semiconductor Index falling 2.5%.
Chip stocks were among the hardest hit, with Broadcom, Micron Technology and Super Micro Computer dropping between 3.8% and 8.3%.
Artificial intelligence (AI) giant Nvidia declined by 2.3% ahead of its quarterly report, contributing to broader market uncertainty.
Conversely, Apple shares edged up 0.2% after announcing a September 9 event, where the company is expected to unveil new iPhones and Apple Watch models.
Boeing slipped 0.9% following NASA's decision to select SpaceX over Boeing's Starliner to return astronauts from space next year.
Coca-Cola and 3M led the Dow Jones index higher, each gaining 1.5%.
Coles, BHP earnings
Coles Group reported a 2.1% growth in its statutory net profit after tax, reaching A$1.1 billion for the 2024 financial year. The company enjoyed a 7.6% increase in sales revenue from its ongoing operations.
The nation's second-largest grocery chain attributed its performance to robust supermarket sales growth and enhanced inventory management, which helped reduce losses due to theft.
Chief executive Leah Weckert acknowledged that these results were achieved against a backdrop of significant cost of living challenges for Australian families.
“The financial pressures on households and families have been front of mind for us this year and we have endeavoured to deliver value across our supermarket, liquor and online offerings to help customers balance the household budget,” she said.
“At the same time, we have worked hard to deliver improvements in availability and quality, made significant inroads in addressing loss, accelerated our digital offering, continued to maintain a strong focus on costs and complete the construction of our second ADC and both our CFCs.”
Also turning a decent profit was BHP Group, which reported a 2% boost to its annual underlying profit, as growth at its iron ore and copper businesses helped offset weaker coal prices.
The world's largest publicly traded miner achieved a strong fiscal 2024 profit, supported by a record iron ore output for the second consecutive year and stable average prices for the steel-making material.
Underlying attributable profit for the year ending June 30 reached US$13.66 billion, surpassing the Visible Alpha consensus of US$13.26 billion and exceeding the previous year's profit of US$13.4 billion.
BHP announced a dividend of US$0.74 per share, slightly lower than the prior year's US$0.80 per share.
European sharemarkets also inched lower, with semiconductor stocks under pressure as investors awaited Nvidia's results.
The technology sector led declines, with ASML Holding, ASM International and Aixtron losing between 1.6% and 2.7%. The continent-wide FTSEurofirst 300 index dipped 0.1%. The London Stock Exchange was closed for the Summer Bank Holiday.
In economic data, US durable goods orders surged by 9.9% in July, significantly surpassing expectations. The Dallas Federal Reserve's manufacturing activity index improved slightly in August, rising to -9.7 from -17.5 in July.
Currencies and commodities
In the currency markets, the Euro weakened against the US dollar, falling from US$1.1189 to US$1.1151. The Australian dollar showed marginal gains, while the Japanese yen depreciated slightly.
Global oil prices were riding high, with Brent crude climbing 3% to US$81.43 per barrel and US Nymex crude increasing by 3.5% to US$77.42 per barrel.
The surge was driven by concerns over supply disruptions in the Middle East and production cuts in Libya.
Base metal prices were mixed, with copper futures gaining 0.4% on renewed demand in China, while aluminium futures dipped 0.3% despite ongoing supply concerns.
Markets this morning
- Australian dollar: Flat at 67.70 US cents.
- S&P 500: -0.3% to 5,616 points.
- Nasdaq: -0.9% to 17,725 points.
- FTSE 100: +0.5% to 8,327 points.
- EuroStoxx 50: -0.3% to 4,396 points.
- Spot gold: +0.3% to $US2,516/ounce.
- Brent crude: +2.6% to $US81.19/barrel.
- Iron ore: +3% to $US98.05/tonne.
- Bitcoin: -0.5% to $US63,143.
Source: ABC
What’s happening in small caps?
It’s a relatively quiet day on the markets, but you can read about the following and more on Proactive throughout the day:
- Nexus Minerals Ltd (ASX:NXM) has received gold assay results from its recently completed regional aircore program at the Wallbrook Gold Project in the north-eastern goldfields region of WA.
- Ora Banda Mining Ltd (ASX:OBM) has appointed Doug Warden as the company’s new chief financial officer and joint company secretary, effective from tomorrow.
- Torque Metals Ltd (ASX:TOR) has received initial results from its diamond drill campaign and is about to go in with the drills at the Paris Gold Project in the West Australian Goldfields.
- St George Mining Ltd (ASX:SGQ) has appointed Adolfo Sachsida – Brazil’s former Minister of Mines and Energy and a highly credentialled business leader – as an advisor to its board.