What's Affecting Markets Today
US Markets wait for PCE data tonight
On Wall Street, market sentiment declined on Wednesday, with major indexes closing lower as investors awaited the January personal consumer expenditures data. The Dow Jones Industrial Average marginally fell by 0.06%, marking its third consecutive session of losses. The broader S&P 500 index also experienced a slight decline of 0.17%, while the tech-heavy Nasdaq Composite dropped by 0.55%. Amidst this market scenario, Google CEO Sundar Pichai confronted the company’s artificial intelligence missteps, particularly addressing the temporary removal of its Gemini image-generation feature due to biases and user offense. Concurrently, Apple’s CEO Tim Cook highlighted the company’s substantial investments in AI, hinting at an impending breakthrough in generative AI technology. Additionally, Walt Disney and Reliance Industries announced a strategic merger of their Indian operations, forming an $8.5 billion joint venture, with Reliance injecting $1.4 billion to fuel the venture’s growth, underlining the significant business movements shaping the technological and entertainment landscapes.
ASX Stocks
ASX 200 - 7,698.7 (+0.5%)
Key Highlights:
In a notable shift, the S&P/ASX 200 index closed higher, recording a 0.5% increase, buoyed by consumer discretionary shares following an optimistic forecast from Harvey Norman. Despite reporting declines in sales and earnings, Harvey Norman’s shares surged 4%, as Executive Chairman Gerry Harvey expressed confidence in the company’s potential for recovery in the upcoming building cycle. Other consumer discretionary stocks, including JB Hi-Fi, Wesfarmers, and Aristocrat Leisure, also experienced gains, with Aristocrat Leisure notably rising by 1.4% even after disclosing a full-year loss, while still evaluating its strategic directions.
In other market news, Bitcoin witnessed a substantial rally, climbing 9.5% to a record high of $US62,325 and reaching an unprecedented $97,000 in Australian dollars on the BTC Markets exchange. This surge, marking a 48% increase in 2024, is attributed to significant institutional interest and the resultant retail enthusiasm. Meanwhile, the Australian dollar depreciated to $US64.9¢, influenced by recent inflation data and weaker commodity prices. Additionally, Worley’s stock experienced another uplift following its earnings announcement the previous day, highlighting a dynamic trading session.
Leaders
MAQ Macquarie Technology Group Ltd 10.98%
SGR The Star Entertainment Group Ltd 7.29%
RHC Ramsay Health Care Ltd 6.76%
ZIP ZIP Co Ltd 5.53%
DDR Dicker Data Ltd 5.29%
Laggards
LFG Liberty Financial Group -6.25%
ZIM Zimplats Holdings Ltd -4.44%
CEN Contact Energy Ltd -4.30%
ERA Energy Resources of Australia Ltd -4.17%
IMU Imugene Ltd -4.17%