Bulls vs. Bears: Episode 31: Earnings Lay Bare the Hits and Misses
This week, mega-cap earnings disappoint as investors ask “where’s the revenue”, US economy starts to show cracks and middle east conflict flares up (again)
August 2024
Closing Bell 16th August: Domain jumps on earnings results. ASX rally continues
The Australian sharemarket extended its gains for the sixth consecutive session, driven by broad-based optimism as investors increased their bets on potential interest rate cuts by central banks later this year. Wall Street’s overnight rally, spurred by stronger-than-expected US retail sales data, added to the positive sentiment. The S&P/ASX 200 climbed 1.3% to 7966 points, with the materials sector rebounding 2.1%.
Pre-Market Pulse 16th August – “what recession?” Retail sales show US consumer still spending
Stocks closed higher for the sixth straight session Thursday, as fears of an economic slowdown were dispelled following stronger-than-expected labor market and retail sales data.
Closing Bell 15th August: Pilbara Minerals to acquire latin resources
The jobless rate edged up to 4.2% in July, slightly higher by 0.1%. Despite adding 58,200 jobs, largely due to mass immigration, market sentiment was mixed.
Balanced Portfolio Recommendation: Sell (stop-loss) Nufarm (NUF)
We recommend reallocating 2% of our portfolio from Elders (ELD) to Nufarm (GNC). This decision is based on the realization of a 9.2% profit in Elders and the assessment that Nufarm is currently undervalued, as supported by its recent earnings report and market conditions.
Alpha Recommendation: BUY Playside Studios (PLY)
PlaySide Studios Limited (PLY) develops video games for multiple platforms including mobile, PC/Console, virtual reality and mixed reality, with a portfolio of approximately 60 titles
Pre-Market Pulse 15th August – Stocks drift higher as Investors put Inflation in the rear-view mirror
Stocks drifted higher driven by encouraging data showing a continued slowdown in inflation. This has raised expectations that the Federal Reserve might soon begin cutting interest rates, potentially as early as next month.
Closing Bell
Closing Bell 14th August: Healthcare Gains, Pro Medicus Leads the Charge
The Australian sharemarket saw a solid rise, with the S&P/ASX 200 Index gaining 0.6% (43.1 points) to reach 7869.9, driven by strong performances in industrial and healthcare stocks.
Pre-Market Pulse 14th August – Stocks rally as inflation shows further signs of easing
Stocks surged overnight as fresh evidence of easing inflation bolstered expectations for a Federal Reserve rate cut as early as next month, causing Treasury yields to drop.
Closing Bell 13th August: Challenger rallies on good results. XJO edges higher in low volatility session
Australian shares edged higher in early afternoon trade, with the S&P/ASX 200 Index up 0.3% or 21.5 points to 7835.2, extending gains for a fifth consecutive day. Real estate and mining sectors led the advance, while healthcare lagged, falling 2.6%. CSL shares dropped 4%, despite projecting double-digit earnings growth, marking one of its largest daily declines this year. Seek was the biggest laggard, plunging nearly 10% after weaker regional job ads impacted earnings.
Balanced Portfolio: Results from CGF (FY2024)
Overall, Challenger’s financial results for FY2024 appear to have exceeded market expectations, particularly in terms of profitability and EPS growth, despite slightly lower total Life sales. The company’s performance has been recognized by an increased dividend and a positive outlook from most analysts.