Tech earnings slam Nasdaq
US equities ended mixed in Thursday trading, finishing near session lows. The Dow Jones Industrial Average rose after new data showed third-quarter GDP grew faster than expected and hinted at waning inflation, encouraging investors to buy stocks linked to the health of the economy.
Treasury yields slid after the latest US GDP report showed some signs that inflationary pressures could be easing. The yield on the 10-year Treasury dipped 11 basis points to 3.902 per cent.
Overnight the Dow climbed 198 points, or 0.6 per cent, led by shares in McDonald’s, Honeywell and Caterpillar after they reported better-than-expected earnings.
It traded up as much as 549 points earlier in the day
The S&P 500 closed down 22 points, or 0.6 per cent, and the Nasdaq ended losing 178 points, or 1.6 per cent, as a rout in Facebook-parent Meta and other tech stocks weighed on those benchmarks.
Meta shares plummeted 29.7 per cent on a weak fourth-quarter forecast and disappointing third-quarter earnings Wednesday. The company also said it would lose even more money next year building out the metaverse. The report led to several analysts downgrading the stock.
In aftermarket trading, Apple shares are currently trading down 2 per cent post their results with Amazon shares currently down 18 per cent following an earnings miss. The Nasdaq futures are down 3 per cent as a result.
The key thematic takeaways from the recent batch of results includes continued price increases, lingering inflation and supply chain pressures, FX headwinds, consumer resilience, and excessive inventory in retail
In EV battery news the EU plans to ban new combustion engines from 2035.The EU's member states and parliament are set to reach a deal that would effectively ban the sale of new combustion-engine cars from 2035.
Across the sectors, it was all about tech, with the rout extending to tech thematics like metaverse and AR, search engine, EV battery, digital streaming and Chinese tech companies
Currencies
One Australian dollar at 7:25 AM has weakened compared to the US dollar yesterday, buying 64.51 US cents (Thu: 64.92 US cents), 55.79 Pence Sterling, 94.32 Yen and 64.76 Euro cents.
Commodities
Iron ore futures are pointing to a 2.5 per cent fall.
Gold lost $3.70 or 0.2 per cent to US$1666 an ounce.
Silver fell $0.01 or 0.03 per cent to US$19.48 an ounce.
Copper lost $3.00 or 0.9 per cent to US$351.50 a pound.
Oil gained $0.74 or 0.8 per cent to US$88.65 a barrel.
Futures
The SPI futures are pointing to a 0.4 per cent fall.
Figures around the globe
Across the Atlantic, European markets closed mixed. Paris lost 0.5 per cent, Frankfurt added 0.1 per cent and London’s FTSE closed 0.3 per cent higher.
In Asian markets, Tokyo’s Nikkei fell 0.3 per cent, Hong Kong’s Hang Seng gained 0.7 per cent and China’s Shanghai Composite closed 0.6 per cent lower.
Yesterday, the Australian sharemarket added 0.5 per cent to close at 6845.
Ex-dividends
Gryphon Capital (ASX:GCI) is paying 1.22 cents unfranked
Kkr Credit Income Fund (ASX:KKC) is paying 1.0938 cents unfranked
Perpetual Credit Income Trust (ASX:PCI) is paying 0.5123 cents unfranked
Rand Mining (ASX:RND) is paying 10 cents fully franked
360 Capital Enhanced Income Fund (ASX:TCF) is paying 3 cents unfranked
Dividends payable
Bisalloy Steel Group Ltd (ASX:BIS)
Cedar Woods Properties Ltd (ASX:CWP)
Centuria Industrial REIT (ASX:CIP)
Centuria Office REIT (ASX:COF)
CI Resources Ltd (ASX:CII)
Gowing Brothers Ltd (ASX:GOW)
N1 Holdings Ltd (ASX:N1H)
RAM Essential Services Property Fund (ASX:REP)
Regis Resources Ltd (ASX:RRL)
Seven Group Holdings Ltd (ASX:SVW)
Tombador Iron Ltd (ASX:TI1)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Copyright 2022 – Finance News Network
Source: Finance News Network
