Market rallies on Apple earnings: Twitter delisted post Musk takeover
US equities were sharply higher in Friday trading, ending near best levels as major averages capped off another week of big gains.
The market got a boost after the core personal consumption expenditures price index in September increased 0.5 per cent from the previous month and 5.1 per cent from a year ago, still high but mostly in-line with expectations. This is the preferred gauge of inflation for the Federal Reserve.
Investors have found hope in data that came out over the course of the week indicating inflation may be easing, increasing optimism that the Federal Reserve could break from its trend of 75 basis point rate hikes after the November meeting.
On Friday the Dow Jones gained 2.6 per cent, The S&P 500 added nearly 2.5. The Nasdaq Composite ended up about 2.9 per cent. On a weekly basis, the major indexes made notable gains. It was the fourth positive week in a row for the Dow. The 30-stock index was up 5.7 per cent last week and is on track for its best month since January 1976. The S&P 500 and the Nasdaq were up 3.9 per cent and 2.2 per cent, respectively, for the week.
Amazon plunged by 6.8 per cent after the company posted weaker-than-expected quarterly revenue and issued disappointing fourth-quarter sales guidance Thursday. In contrast Apple shares ended Friday up 7.5 per cent. The tech giant reported weaker-than-anticipated iPhone revenue on Thursday, but beat Wall Street estimates for quarterly earnings and revenue. The Apple result boosted sentiment across the tech sector.
Apple this week predicted that foreign exchange impacts on its business would get even worse throughout the rest of the year, knocking an estimated 10 per cent from its revenue in the next quarter.
Across the market the surge in the $US dollar is set to wipe more than $10bn from US corporate earnings in the third quarter, analysts estimate, piling pressure on companies that are already grappling with high prices and a gloomy domestic outlook.
Goldman Sachs’ index of companies that generate the majority of their revenues in the US fell by 15 per cent in the first three quarters, compared with a 30 per cent decline in its index of companies with a large international presence over the same period.
Across the sectors, Solid earnings beats from Chevron, Exxon Mobil and other companies outside of tech helped the sectors to have broad based rallies.
Only the consumer discretionary sector struggled weighed down by Amazon shares,
On Friday Twitter was delisted from the New York Stock Exchange, closing the book on Tesla’s chief Elon Musk's $44 billion purchase of the company.
Currencies
One Australian dollar at 7:25 AM has weakened compared to the US dollar on Friday, buying 63.99 US cents (Fri: 64.51 US cents)
Commodities
Iron ore futures are pointing to a 3.4 per cent fall.
Gold lost $20.80 or 1.3 per cent to US$1645 an ounce.
Silver fell $0.35 or 1.8 per cent to US$19.15 an ounce.
Copper lost $9.05 or 2.6 per cent to US$342.90 a pound.
Oil lost $1.18 or 1.3 per cent to US$87.90 a barrel.
Futures
The SPI futures are pointing to a 1.4 per cent gain.
Figures around the globe
Across the Atlantic, European markets closed mixed. Paris gained 0.5 per cent, Frankfurt added 0.2 per cent and London’s FTSE closed 0.4 per cent lower.
In Asian markets, Tokyo’s Nikkei fell 0.9 per cent, Hong Kong’s Hang Seng dropped 3.7 per cent and China’s Shanghai Composite closed 2.3 per cent lower.
On Friday, the Australian sharemarket lost 0.9 per cent to close at 6786.
Ex-dividends
Autosports Group (ASX:ASG) is paying 9 cents unfranked
Metrics Income Opportunities Trust (ASX:MOT) is paying 1.41 cents fully franked
Metrics Master Income Trust (ASX:MXT) is paying 1.26 cents fully franked
Partners Group Global Income Fund (ASX:PGG) is paying 1.0946 cents fully franked
Dividends payable
Kelly Partners Group Holdings (ASX:KPG)
Magontec (ASX:MGL)
Rural Funds Group (ASX:RFF)
Steamships Trading Co (ASX:SST)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Copyright 2022 – Finance News Network
Source: Finance News Network
