What's Affecting Markets Today
S&P touches 5000
On Thursday, the S&P 500 briefly surpassed the unprecedented 5,000 mark before slightly increasing by 0.06% to close at 4,997.91. This milestone reflects a continuation of the robust market rally, driven by strong earnings and significant gains in major technology stocks. Despite concerns over concentrated market leadership, the index’s performance underscores the resilience of investor sentiment. The Dow Jones Industrial Average saw a modest rise of 0.13%, ending at 38,726.33, while the Nasdaq Composite advanced by 0.24% to 15,793.71. Market analysts highlight the influence of recent comments by Federal Reserve officials, including Chair Jerome Powell, on rate cut expectations, contributing to a cautious outlook. Nonetheless, standout earnings reports from companies like Disney, which soared 11.5% after exceeding expectations, and Arm, which surged 47.9%, have bolstered confidence in the ongoing economic strength and potential for sustained corporate growth. Additionally, rising yields, with the 10-year Treasury note at 4.15%, have exerted some pressure on stocks, despite the overall positive earnings landscape.
ASX Stocks
ASX 200 - 7,646.0 (+0.1%)
Key Highlights:
In todays trading session, the S&P/ASX 200 saw a modest gain of 0.3%, reaching 7,639.2 points, amid a busy earnings reporting season. Cochlear’s shares soared by 6% to $308.52, following an upward revision in its profit forecast for FY 2024, underscoring the success of its direct-to-consumer sales strategy and signaling strong future sales growth. Meanwhile, AGL Energy’s shares surged 10% after it reported a dramatic turnaround with a statutory profit of $576 million for the half-year, reversing a previous loss of $1.1 billion. In contrast, Mirvac Group reported a half-year statutory loss of $201 million, a significant shift from a $215 million profit year-on-year, with its operating profit declining by 17%. REA Group announced a 22% increase in net profit to $250 million, leading to a 16% hike in its dividend. Transurban reported a substantial rise in net profit to $230 million, forecasting a 7% dividend increase for FY 2024. Australian bond yields and the Australian dollar experienced slight movements, indicating a cautious market sentiment.
Leaders
LTR Liontown Resources Ltd +10.89%
BLD Boral Ltd +9.06%
REA REA Group Ltd +4.63%
ZIP ZIP Co Ltd +4.60%
LTM Arcadium Lithium Plc +4.41%
Laggards
BOE Boss Energy Ltd -12.44%
DYL Deep Yellow Ltd -11.79%
SLX SILEX Systems Ltd -10.47%
PDN Paladin Energy Ltd -7.72%
ADT Adriatic Metals Plc -5.07%