What's Affecting Markets Today
Nvidia helps S&P500 surge to new highs
In Thursday’s evening trading session, stock futures showed minimal changes following a stellar performance by the S&P 500 and Nasdaq Composite, marking their most significant gains since early 2023. Dow Jones Industrial Average futures edged up by 0.06%, while S&P 500 futures saw a slight increase of 0.05%. Conversely, Nasdaq 100 futures experienced a minor dip of 0.02%.
Block’s shares soared over 13% in after-hours trading, beating Wall Street’s revenue forecasts for the fourth quarter. Carvana also witnessed a 23% surge after projecting an increase in retail units for 2024.
The day’s trading was energized by Nvidia, which jumped 16% due to robust quarterly results, propelling the S&P 500 up by 2.11% and the Nasdaq Composite by 2.96%. The Dow Jones Industrial Average also reached a record high with a 1.18% gain. Larry Tentarelli highlighted the rally’s broad support across sectors, with industrials and health care setting new records. The major averages are poised for a successful week, with anticipated earnings reports from Warner Bros Discovery and Bloomin’ Brands on the horizon.
ASX Stocks
ASX 200 - 7,643.6 (+0.4%)
Key Highlights:
The S&P/ASX 200 experienced a 0.4% rise on Friday, buoyed by a 2.2% surge in the technology sector amidst a global rally in shares driven by the burgeoning demand for artificial intelligence products. Leading the gains, Block, the parent company of Afterpay, saw a notable 15% increase in its share price following the announcement of its December quarter sales surpassing analyst expectations. This performance was attributed to efficient cost management and robust gross profit levels, alongside plans to incorporate Afterpay into its Cash App in the US, signaling a positive outlook for the company.
In other market movements, Brambles upgraded its 2024 profit forecast and announced a 22% increase in its interim dividend, reflecting strong financial health. Conversely, 29Metals reported a significant $440 million loss for 2023 due to flood impacts on its Capricorn Copper mine operations. Meanwhile, Aussie Broadband’s shares leaped 12% after reporting growth in sales, subscriber numbers, and profits for the half-year period ending December 31, underscoring the company’s robust market performance since its IPO.
Jumbo Interactive also reported growth in sales and profits for the financial year 2024, witnessing a 6.1% rise in shares. Newmont aims to divest six mines and two projects to amass $3.1 billion, with Telfer and Havieron mines among the assets for sale. Pexa reported a shift to a $4.6 million net loss despite an operating income of $58.8 million, with shares mildly increasing by 1.2%.
Lastly, Woodside Energy finalized a $2.1 billion agreement with JERA, selling a 15.1% stake in its Scarborough LNG venture, further securing a deal for six LNG cargoes over ten years starting in 2026, marking a significant strategic move in the energy sector.
Leaders
SQ2 Block Inc 17.38%
ABB Aussie Broadband Ltd 17.02%
BRN Brainchip Holdings Ltd 15.12%
WBT Weebit Nano Ltd 9.88%
BGA Bega Cheese Ltd 7.48%
Laggards
ASB Austal Ltd -13.79%
LIC Lifestyle Communities Ltd -12.35%
NEM Newmont Corporation -7.05%
AX1 Accent Group Ltd -6.82%
IPH IPH Ltd -6.21%