Retail earnings support market rally: US lithium stocks struggle across the globe
The S&P 500 rose Tuesday after another report signalled that inflation could be slowing.
The major averages initially rallied after the producer price index, a measure of wholesale inflation, showed a 0.2 per cent increase for the month of October, versus the consensus estimate for a 0.4 per cent increase from Dow Jones.
The broad market index advanced 0.9 per cent, while the tech-heavy Nasdaq Composite gained 1.5 per cent. The Dow Jones Industrial Average rose 0.2 per cent.
Elsewhere, retail stocks also lifted investor sentiment. Walmart shares jump on a bumper third quarter. The retail giant said that sales were up nearly 9 percent from a year ago, as shoppers flocked to cheaper groceries and other items; shares advanced just over 6.5 per cent.
Walmart also said it would take $3.3 billion in charges related to settlements over its role in the opioid crisis. Home Depot reported strong results too but kept guidance in place for the full-year; its shares rose slightly.
Earnings season continues this week with retail reports from Target, Lowe’s, Bath and Body Works, Macy’s, Kohl’s and Foot Locker on deck.
In company news, Taiwan Semiconductor Manufacturing Company shares jumped over 10.5 per cent, after Berkshire disclosed that it had invested over $4 billion in the company. T.S.M.C. is one of the world’s biggest chip makers, whose tech powers everything from cars to iPhones. The company’s stock had plunged in recent months, as the United States has cracked down on China’s chip industry, depressing semiconductor shares.
Across the sectors, no real standout overnight – with the materials struggling.
The AFR reported yesterday Australian lithium miners closed sharply lower on the ASX following a 7 per cent drop in lithium carbonate futures on the Chinese exchange, with analysts at Credit Suisse attributing to rumours that an unnamed Chinese cathode manufacturer was cutting its production target. In the US overnight lithium companies were lower with Lithium America down 3.5 per cent, Albemarle 6.5 per cent lower and Livent falling 6.8 per cent.
And iron ore prices are rallying from two-year lows as optimism creeps back into the market with the belief that the worst may be over in China. Overall, steel demand outside of the residential property is resilient, and if the outlook for the housing sector is improving, it could be a bullish signal for China's iron ore imports in coming months.
Currencies
One Australian dollar at 8:15 AM has strengthened compared to the US dollar yesterday buying 67.65 US cents.
Commodities
Iron ore futures are pointing to a 1.2 per cent gain.
Gold gained 0.3 per cent. Silver lost over 2 per cent. Copper fell 0.1 per cent and oil added 1.2 per cent.
Futures
The SPI futures are pointing to a 0.2 per cent fall.
Figures around the globe
Across the Atlantic, European markets closed mixed. Paris added 0.5 per cent, Frankfurt also added 0.5 per cent and London’s FTSE closed 0.2 per cent lower.
In Asian markets, Tokyo’s Nikkei rose 0.1 per cent, Hong Kong’s Hang Seng gained 4.1 per cent and China’s Shanghai Composite closed 1.6 per cent higher.
Yesterday, the Australian sharemarket lost 0.1 per cent to close at 7142.
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Copyright 2022 – Finance News Network
Source: Finance News Network
