The Overnight Report: Awaiting Results

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            [1] => ((RIO))
            [2] => ((NST))
            [3] => ((IMU))
            [4] => ((BRN))
            [5] => ((BHP))
            [6] => ((EVN))
            [7] => ((STO))
            [8] => ((AWC))
            [9] => ((ZIP))
            [10] => ((TLX))
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            [6] => EVN
            [7] => STO
            [8] => AWC
            [9] => ZIP
            [10] => TLX
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)

This story features WOODSIDE ENERGY GROUP LIMITED, and other companies.
For more info SHARE ANALYSIS: WDS
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

By Greg Peel

Bank on it

The ASX200 traded up 50 points early in yesterday’s session before quietly losing -10 of those points to the close. The index has now surpassed the July high mark and is within sight of the June high of 7366.

Probably not today though. The futures are up a whole two points this morning.

The banks were the primary driver yesterday (+1.5%), enthused by earnings results from the US big banks and particularly increases there in net interest margins. Tuesday night saw strong results from Morgan Stanley and Bank of America, which followed good moves on Monday night from JPMorgan, Citigroup and Wells Fargo.

Goldman Sachs made up the Big Six with its report last night, and it rose 1%. US Bancorp, one of the larger of the smaller banks in the spotlight, rose 6%.

The Aussie ten-year bond yield fell -10 points yesterday and the twos fell -6, which also helped, continuing their retreat away from 4%, noting the cash rate is 4.10%. It doesn’t help NIMs, rather loan default risk as the fall off the cliff continues.

Energy won the day with a 1.7% gain on moves up in oil prices and a solid production report from Woodside Energy ((WDS)), which rose 1.4%.

Materials did not join in, however (-0.6%), with iron ore lower and Rio Tinto’s ((RIO)) production report worth -0.7%. Gold miner Northern Star Resources ((NST)) was the top index loser on the day in falling -5.8% on its production report.

Real estate was another winner from lower yields (+0.9) while technology rose 0.8%. Ignoring Imugene’s ((IMU)) 12.0% jump, as that stock flies around every day, Brainchip Holdings ((BRN)) rose a notable 6.7% on a tenuous connection to Microsoft’s AI pricing.

Communication services was the only other sector to close in the red (-0.3%), after falling sharply on Tuesday, while discretionary also did well (+0.6%) on those lower yields.

The Nasdaq took a rare breather last night as the S&P500 posted a slight gain, hence not much response from our futures.

We get June jobs numbers today, so it may be a quiet start before the data drop.

Quiet One

If the Wall Street rally is to press on through results season, it will not be thanks to last night’s aftermarket results.

Netflix has reported this morning and its shares are currently down -7%, ditto Tesla, down -2% and IBM down -1%. The only bright spot was United Airlines, up 3%.

IBM is the only Dow member there but perhaps tonight will see a break in the Dow’s eight-day winning streak to last night – the first since September 2019 – to regain 35,000 for the first time since April last year.

It was an otherwise quiet session ahead of the above results, and nerves will build ahead of more Mega Tech earnings reports next week, along with the Fed meeting. One and done?

With little else to report, a couple of interesting moves were those of online used car retailer Carvana – one of the most heavily shorted stocks on the market – which jumped 40% after restructuring its debt – a debt burden that had the company suffering a near-death experience.

Telco giant AT&T rose 8.5% after telling a court it will hold off on removing its legacy lead-sheathed cables running beneath Lake Tahoe to allow an independent assessment of the risk. The company had been spurred into action following a damning Wall Street Journal report highlighting the health dangers of the cables, which AT&T suggests are perfectly safe.

Tonight’s list of earnings reporters is littered with more regional banks, hence positive results among those might provide a fillip for more Wall Street strength.

Looking across the seas, the UK CPI saw a greater than expected drop to 7.9% in June from 8.7% and the eurozone saw a drop to 5.5% from 6.1%.

New Zealand’s June quarter CPI slowed to 6.0% from 6.7% in the March quarter.

Commodities

Not much to say here either, other than commodity markets will continue to lose faith until there’s any sort of news out of China.

The US dollar index made it back to 100 last night. The Aussie is down -0.6% at US$0.6775.

Today

The SPI Overnight closed up 2 points.

Along with June jobs today we’ll see a June quarter business confidence wrap from NAB.

BHP Group ((BHP)) posts its production report today, along with Evolution Mining ((EVN)), Santos ((STO)) and Alumina Ltd ((AWC)).

Zip Co ((ZIP)) and Telix Pharmaceuticals ((TLX)) post earnings reports.

The Australian share market over the past thirty days…

For more detail go to FNArena's Australian Broker Call Report, which is updated each morning, Mon-Fri.

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