Pre-Market Pulse 23rd January – Big Tech drags market to new record highs ahead of earnings

Last Night's Market Recap

S&P 500 - Heatmap

Overnight – Big Tech drags market to new record ahead of earnings

Equities settled at new record highs overnight, as bullish bets on tech continued ahead of busy week of corporate earnings and key economic data.

Big tech, which have driven the rally in stocks, was mostly higher as investors awaited results from some big names including Netflix, which reports on Tuesday, followed by Tesla on Wednesday, as well as 3M and Intel. United Airlines and Zions Banc are set to report after the close.

Top-tier economic data is on the calendar for this week that will likely filter into the Federal Reserve’s interest rate decision next week. The update on the growth trajectory for the economy is scheduled on Wednesday, with the release data on fourth quarter GDP, which is expected to come in at 2.0% after a 4.9% increase in the prior quarter. Key US inflation readings on Thursday, meanwhile, will provide fresh insight on the progress toward the Fed’s 2% target at time when many are reining in their expectations for a March rate cut. The odds of a Federal Reserve cut in March have shifted to 50-50 following a run of better data on retail sales and consumer sentiment, from just under 80% a week ago

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The Day Ahead

ASX SPI 7443 (-0.01%)

The ASX shares are poised to slip at the open, taking its lead from a lower iron ore price and bucking a modest rally on Wall Street that pushed the S&P 500 to a fresh high. While oil topped $US80 a barrel overnight, while iron ore and gold were lower. The US listed shares of Rio Tinto lost more than 2 per cent, while BHP slid 0.7 per cent in New York trading.

Perseus Mining boss Jeff Quartermaine says his $258 million takeover bid for African gold explorer OreCorp is “clearly” superior to the rival bid endorsed by directors of the target company.
Coronado Global Resources ended the December quarter with higher run of mine coal production, up 3.3 per cent at 6.1Mt, when compared to the prior period.