The Overnight Report: All Quiet

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        (
            [0] => ((PNV))
            [1] => ((PPT))
            [2] => ((LIC))
            [3] => ((INA))
            [4] => ((CBA))
            [5] => ((WBC))
            [6] => ((ORI))
            [7] => ((NWS))
            [8] => ((REA))
            [9] => ((ALD))
            [10] => ((HLI))
        )

    [1] => Array
        (
            [0] => PNV
            [1] => PPT
            [2] => LIC
            [3] => INA
            [4] => CBA
            [5] => WBC
            [6] => ORI
            [7] => NWS
            [8] => REA
            [9] => ALD
            [10] => HLI
        )

)

This story features POLYNOVO LIMITED, and other companies.
For more info SHARE ANALYSIS: PNV
The company is included in ASX300 and ALL-ORDS

By Greg Peel

Yawn

After a week of steady rallying, the ASX200 went almost nowhere yesterday – a slight gain leading the index to scrape above 7800. Five sessions ago we were under 7600, following a rock’n’roll ride that began mid-April when we saw a new high of 7910.

Yesterday’s daily range of 26.8 points, or just 0.34%, was the smallest in over six months. A range this small has only occurred in less than 2.2% of ASX200 trading sessions.

The best performing sector was industrials (+0.7%) and the worst consumer discretionary (-0.4%). The Aussie ten-year yield fell -1 point.

The quiet session followed a similar scenario on Wall Street overnight, and last night Wall Street closed even flatter.

The best performing index stock was PolyNovo ((PNV)); shares rose 8.0% after the company provided a sales update. Healthcare rose 0.3%.

The worst performer was Perpetual ((PPT)), after the company agreed to sell its trustee and advice business to private equity group KKR for $2.1bn. The buyout would leave Perpetual as a standalone funds manager of about $227bn in assets. The stock fell -7.1%.

Financials rose 0.2%.

Lithium stocks were well sought after yesterday, while the iron ore price slipped a bit, so materials closed down -0.1%.

In real estate, it was a day for the oldies. Lifestyle Communities ((LIC)) shares rose 5.1% and Ingenia Communities ((INA)) shares 3.6% to help the sector up 0.5%.

There’s no promise of the action heating up today, given the flat session on Wall Street, although our futures are down -19 points this morning.

Commonwealth Bank ((CBA)) will wrap the Big Bank reporting season with its quarterly update today, so that might spark things up a bit.

As a Tack

Well, you don’t see that very often. The S&P500 closed down -0.03 points last night to 5207.67 which, for a lack of decimal points, implies a move of 0.00%.

It was nevertheless one of the best sessions recently for market breadth among those stocks gaining on the day.

On the other side, the Mega Techs, which bar Nvidia have all now reported, have stalled.

Earnings season has been positive to date but given the rally through the March quarter, and the solid recovery from the minor -5% pullback in April, companies beating estimates have seen modest gains and companies disappointing have been slammed.

Uber reported and its shares fell -5.7%. Shares in cloud software company Shopify lost -18.6% on its report. But the “winner” was TripAdvisor, which you may heard of; its shares fell -28.7%.

Airbnb has reported in this morning’s aftermarket and its shares are down -8.0%.

The Dow has nevertheless posted a six-day winning streak as the Nasdaq falters. Last night’s Dow winners were Amgen, which has just hit the GLP-1 market, and JPMorgan Chase, both up over 2%.

Earnings aside, Wall Street is likely taking a breather ahead of next week’s CPI result, which isn’t until Wednesday. The PPI actually comes first this month, on Tuesday.

Last night, the Boston Fed president said the Fed’s interest rate policy will likely need to remain at its current level until inflation is moving “sustainably” toward the central bank’s 2% target.

That’s pretty much what Powell has been saying all along. He has also said the Fed does not need to wait for 2% to cut – it could start cutting earlier as long as things are moving in the right direction.

Commodities

Not much joy among metal prices.

The oils are holding fast even as Israel steps up the action in Rafah. A ceasefire deal continues to be negotiated, but Netanyahu has said Israel will take Rafah whether there is a ceasefire or not.

Go figure.

The Aussie is down -0.3% to US$0.6582.

Today

The SPI Overnight closed down -19 points or -0.2%.

CBA updates today as noted, while at the same time Westpac ((WBC)) goes ex.

Orica ((ORI)) reports earnings today and News Corp ((NWS)) and REA Group ((REA)) tonight.

Ampol ((ALD)) and Helia Group ((HLI)) hold AGMs.

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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