Daily Market Reports | Feb 28 2024
This story features COLES GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: COL
World Overnight | |||
SPI Overnight | 7642.00 | + 21.00 | 0.28% |
S&P ASX 200 | 7663.00 | + 10.20 | 0.13% |
S&P500 | 5078.18 | + 8.65 | 0.17% |
Nasdaq Comp | 16035.30 | + 59.05 | 0.37% |
DJIA | 38972.41 | – 96.82 | – 0.25% |
S&P500 VIX | 13.43 | – 0.31 | – 2.26% |
US 10-year yield | 4.32 | + 0.02 | 0.37% |
USD Index | 103.81 | + 0.04 | 0.04% |
FTSE100 | 7683.02 | – 1.28 | – 0.02% |
DAX30 | 17556.49 | + 133.26 | 0.76% |
By Greg Peel
Up, Up
There was no down, down for Coles Group ((COL)) yesterday, with the stock jumping 5.5% and rather silencing the large cohort who had insisted the other mob were a better bet. In a sign of the times, it was Coles’ e-commerce business that really surprised.
There was also clear evidence of a rethink on Endeavour Group ((EDV)), which fell on its result on Monday but yesterday bounced back 5.1%.
The staples sector rose 2.2% in a session which started with a swift -40pts plunge for the ASX200 in the first hour, before all was recovered and more by the close. It was yet another day of choppiness ending in only a modest move, with earnings results dominating.
Technology was next best (+1.3%), helped by a 7.0% pop for WiseTech Global ((WTC)), which had reported last week. But step outside into the ASX300 and things were a little different.
Anything arguably AI-related on the local exchange received a boost last week on Nvidia’s result, but yesterday’s individual results told a different story. Appen ((APX)) fared well, rising 15.5%, but Weebit Nano ((WBT)) fell -11.9% and Brainchip Holdings ((BRN)), -34.7%.
Having risen 7% on Monday, Zip Co ((ZIP)) fell -14.4%. Tyro Payments ((TYR)) missed with its numbers, falling -10.0%. Occupying a similar space, Block ((SQ2)), which rallied hard on Friday on result, fell -4.9% yesterday.
Following on from its weak reception, TPG Telecom ((TPG)) fell another -4.3%.
Within the index, train wreck of the day was Johns Lyng Group ((JLG)), which dropped -13.2% on result. You’d think a company specialising in post-disaster reconstruction would not be lacking in work.
Materials fell -0.4%, and we note Alumina Ltd ((AWC)) shares jumped 6.8% on Monday after Alcoa announced an offer, but fell -5.0% yesterday when it delivered its result.
Healthcare (-0.6%), real estate (-0.8%) and utilities (-0.7%) were all weak yesterday, so once again it was up to the banks to play the Atlas role (+0.5%).
Commonwealth Bank ((CBA)) had made a new 52-week high a while back but yesterday all of ANZ Bank ((ANZ)), National Bank ((NAB)) and Westpac ((WBC)) joined the club.
What could possibly go wrong?
The fat lady maybe warming up, but we still have numerous results to get through over the next two days. It will be a stumbling start today however, given a long list of ex-divs.
The Waiting Game
Another night, another session of not much movement on Wall Street, other than another little burst at the death. The market is on hold ahead of the January PCE release on Thursday night.
There was not much concern that the Conference Board monthly measure of consumer confidence unexpectedly fell to 106.7 from 110.9 last month, with inflation “beginning to weigh”.
It has to be understood “inflation coming down” does not mean “prices coming down”. Some prices may have come down, but on a net basis 4% inflation still means prices rising 4%. It’s a slower pace than 9%, but the trend is still up in price terms. Don’t confuse disinflation with deflation.
Note the Conference Board index is not 100-neutral, which is why it always seems at odds with the Michigan Uni surveys. It simply began its life with a 100 base.
We might also note Lowe’s (Bunnings lookalike) and Macy’s (Myer lookalike) both posted earnings beats last night.
Durable goods orders fell -6.1% in January, which looks bad, but it was mostly to do with commercial aircraft orders which distort the numbers.
The others news last night was Apple is winding down its EV development division, and shifting those workers over to the generative AI department. Another sign of the times. The EV space is becoming ever more crowded just as EV demand wanes. And I’m told this AI thing good be a bit of a goer.
Commodities
Spot Metals,Minerals & Energy Futures | |||
Gold (oz) | 2028.80 | – 4.00 | – 0.20% |
Silver (oz) | 22.42 | – 0.10 | – 0.44% |
Copper (lb) | 3.82 | + 0.02 | 0.51% |
Aluminium (lb) | 0.99 | + 0.01 | 0.78% |
Nickel (lb) | 7.89 | + 0.20 | 2.61% |
Zinc (lb) | 1.09 | – 0.00 | – 0.17% |
West Texas Crude | 78.66 | + 0.90 | 1.16% |
Brent Crude | 83.44 | + 0.74 | 0.89% |
Iron Ore (t) | 115.68 | + 2.08 | 1.83% |
After a couple of sessions of sharp falls, iron ore has bounced back a bit.
The oils seem currently stuck in a holding pattern around the US$80/bbk mark, balancing weaker global demand against geopolitics.
The Aussie is steady at US$0.6543.
Today
The SPI Overnight closed up 21 points or 0.3%.
We’ll be the ones with inflation in the spotlight today, as the January CPI is released.
We’ll also see December quarter construction work done, ahead of next week’s GDP release, and January private sector credit.
The RBNZ meets this morning.
The US revises its GDP tonight.
Be warned that Beach Energy ((BPT)), Fortescue Metals ((FMG)), Telstra ((TLS)) and Woolworths Group ((WOW)) all go ex this morning.
FNArena's Corporate Results Monitor: https://fnarena.com/index.php/reporting_season/ (with calendar).
The Australian share market over the past thirty days…
Index | 27 Feb 2024 | Week To Date | Month To Date (Feb) | Quarter To Date (Jan-Mar) | Year To Date (2024) |
---|---|---|---|---|---|
S&P ASX 200 (ex-div) | 7663.00 | 0.25% | -0.23% | 0.95% | 0.95% |
BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS | |||
ADH | Adairs | Upgrade to Add from Hold | Morgans |
AIA | Auckland International Airport | Upgrade to Buy from Neutral | Citi |
APE | Eagers Automotive | Upgrade to Buy from Hold | Bell Potter |
Upgrade to Neutral from Sell | Citi | ||
BGA | Bega Cheese | Upgrade to Hold from Lighten | Ord Minnett |
CUV | Clinuvel Pharmaceuticals | Downgrade to Hold from Add | Morgans |
CWP | Cedar Woods Properties | Upgrade to Add from Hold | Morgans |
HMC | HMC Capital | Downgrade to Hold from Add | Morgans |
IFL | Insignia Financial | Downgrade to Sell from Neutral | Citi |
ILU | Iluka Resources | Downgrade to Neutral from Outperform | Macquarie |
LFS | Latitude Group | Upgrade to Neutral from Sell | Citi |
LOV | Lovisa Holdings | Upgrade to Buy from Neutral | Citi |
MHJ | Michael Hill | Upgrade to Buy from Neutral | Citi |
PLS | Pilbara Minerals | Downgrade to Sell from Neutral | Citi |
PPE | PeopleIN | Downgrade to Hold from Add | Morgans |
QUB | Qube Holdings | Downgrade to Accumulate from Buy | Ord Minnett |
SSR | SSR Mining | Downgrade to Neutral from Buy | UBS |
SUL | Super Retail | Upgrade to Add from Hold | Morgans |
SUN | Suncorp Group | Downgrade to Neutral from Buy | Citi |
TAH | Tabcorp Holdings | Upgrade to Outperform from Neutral | Macquarie |
TPG | TPG Telecom | Downgrade to Neutral from Outperform | Macquarie |
Downgrade to Hold from Add | Morgans | ||
TRS | Reject Shop | Upgrade to Buy from Accumulate | Ord Minnett |
Downgrade to Equal-weight from Overweight | Morgan Stanley | ||
WGN | Wagners Holding Co | Add | Morgans |
WOW | Woolworths Group | Downgrade to Neutral from Buy | UBS |
WPR | Waypoint REIT | Downgrade to Hold from Add | Morgans |
For more detail go to FNArena's Australian Broker Call Report, which is updated each morning, Mon-Fri.
All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available on the FNArena website. Click here. (Subscribers can access prices on the website.)
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CHARTS
For more info SHARE ANALYSIS: ANZ - ANZ GROUP HOLDINGS LIMITED
For more info SHARE ANALYSIS: APX - APPEN LIMITED
For more info SHARE ANALYSIS: AWC - ALUMINA LIMITED
For more info SHARE ANALYSIS: BPT - BEACH ENERGY LIMITED
For more info SHARE ANALYSIS: BRN - BRAINCHIP HOLDINGS LIMITED
For more info SHARE ANALYSIS: CBA - COMMONWEALTH BANK OF AUSTRALIA
For more info SHARE ANALYSIS: COL - COLES GROUP LIMITED
For more info SHARE ANALYSIS: EDV - ENDEAVOUR GROUP LIMITED
For more info SHARE ANALYSIS: FMG - FORTESCUE LIMITED
For more info SHARE ANALYSIS: JLG - JOHNS LYNG GROUP LIMITED
For more info SHARE ANALYSIS: NAB - NATIONAL AUSTRALIA BANK LIMITED
For more info SHARE ANALYSIS: SQ2 - BLOCK INC
For more info SHARE ANALYSIS: TLS - TELSTRA GROUP LIMITED
For more info SHARE ANALYSIS: TPG - TPG TELECOM LIMITED
For more info SHARE ANALYSIS: TYR - TYRO PAYMENTS LIMITED
For more info SHARE ANALYSIS: WBC - WESTPAC BANKING CORPORATION
For more info SHARE ANALYSIS: WBT - WEEBIT NANO LIMITED
For more info SHARE ANALYSIS: WOW - WOOLWORTHS GROUP LIMITED
For more info SHARE ANALYSIS: WTC - WISETECH GLOBAL LIMITED
For more info SHARE ANALYSIS: ZIP - ZIP CO LIMITED