Energy sector shines despite broader market losses

Stocks declined on Thursday as rising tensions in the Middle East left investors uneasy ahead of September's payrolls report.

The Dow Jones Industrial Average fell 184.93 points, or 0.44 per cent, finishing at 42,011.59. The S&P 500 dipped by 0.17 per cent to close at 5,699.94, while the Nasdaq Composite edged down 0.04 per cent to 17,918.48, supported by a more than 3 per cent rally in Nvidia that helped limit losses.

The three major indexes are set for losses this week, with the Dow and S&P 500 each down 0.7 per cent, while the Nasdaq is anticipated to end 1.1 per cent lower.

This shift comes after a strong three quarters; according to Bespoke Investment Group, 2024 has seen the largest gains in the first nine months of a year since 1997.

Weekly jobless claims slightly exceeded economists' expectations, suggesting mixed signals about the labor market as traders await the closely watched payrolls report due Friday morning.

U.S. crude futures climbed over 5 per cent, marking an 8 per cent gain for the week as concerns related to the Middle East drove prices higher.

Energy stocks surged in response, with the S&P 500 energy sector up about 5.9 per cent this week, putting it on track for its strongest performance in over a year.

On Thursday, the energy sector gained 1.58 per cent, while consumer discretionary was the worst performer, falling 1.28 per cent.

In company news, shares of Hims & Hers Health fell 9.6 per cent after the FDA announced the resolution of a shortage for popular weight loss drugs Zepbound and Mounjaro from Eli Lilly, which Hims & Hers had sought to capitalise on with its own compound versions.

Joby Aviation's stock dropped 8.6 per cent, reversing some of its previous session's gains. On Wednesday, shares soared nearly 28 per cent following Toyota's announcement of a $500 million investment in the company to support the development of its electric air taxi.

Levi Strauss saw its shares decline 7.7 per cent after the denim maker lowered its full-year revenue outlook and reported weaker-than-expected third-quarter revenue. The company is also considering selling its Dockers brand, which it cited as underperforming.

Futures

The SPI futures are pointing to a 0.3 per cent fall.

Currency

One Australian dollar at 7.40am was buying 68.41 US cents.

Commodities

Gold added 0.36 per cent. Silver gained 1.70 per cent. Copper dropped 2.07 per cent. Oil jumped 5.15 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 0.1 per cent, Frankfurt lost 0.78 per cent, and Paris dropped 1.32 per cent.

Turning to Asian markets, Tokyo’s Nikkei gained 1.97 per cent, while Hong Kong’s Hang Seng fell 1.47 per cent and China’s Shanghai Composite was closed.

Yesterday, the Australian share market closed 0.09 per cent higher at 8205.

Dividends payable

Auckland International Airport Ltd (ASX:AIA)
Auswide Bank Ltd (ASX:ABA)
Big River Industries Ltd (ASX:BRI)
Bisalloy Steel Group Ltd (ASX:BIS)
Breville Group Ltd (ASX:BRG)
Corporate Travel Management Ltd (ASX:CTD)
Echelon Resources Ltd (ASX:ECH)
Evolution Mining Ltd (ASX:EVN)
IPD Group Ltd (ASX:IPG)
Joyce Corp Ltd (ASX:JYC)
Kina Securities Ltd (ASX:KSL)
Lycopodium Ltd (ASX:LYL)
Mader Group Ltd (ASX:MAD)
Midway Ltd (ASX:MWY)
Motorcycle Holdings Ltd (ASX:MTO)
Perpetual Ltd (ASX:PPT)
Reliance Worldwide Corp Ltd (ASX:RWC)
Service Stream Ltd (ASX:SSM)
Spark New Zealand Ltd (ASX:SPK)
Tourism Holdings Ltd (ASX:THL)
Vita Life Sciences Ltd (ASX:VLS)
WiseTech Global Ltd (ASX:WTC)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.

Disclaimer

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