Daily Market Reports | Apr 30 2021
This story features WOOLWORTHS LIMITED, and other companies. For more info SHARE ANALYSIS: WOW
|SPI Overnight (Jun)||7045.00||– 16.00||– 0.23%|
|S&P ASX 200||7082.30||+ 17.60||0.25%|
|Nasdaq Comp||14082.55||+ 31.52||0.22%|
|S&P500 VIX||17.61||+ 0.33||1.91%|
|US 10-year yield||1.64||+ 0.02||1.23%|
|USD Index||90.64||+ 0.03||0.03%|
|FTSE100||6961.48||– 2.19||– 0.03%|
|DAX30||15154.20||– 137.98||– 0.90%|
By Greg Peel
The ASX200 opened strongly yesterday but fell to be only up 7 late morning. At lunchtime it hit a high of up 32, approaching 7100, but slipped again to close up 17.
The index continues to hold above 7000 but is struggling for any conviction to push higher. That lack of conviction is underscored by recent volumes being to the low side. Perhaps we’re all waiting for the May budget to spark some life into the market, or not.
Meanwhile, the focus has been on the flood of corporate quarterly updates. This week the big supermarkets have been in focus.
It is a truth universally acknowledged that one of the two majors will be performing better for a period than the other, before those roles reverse for a time, and later back again. For a long time Woolworths ((WOW)) was leaving Coles ((COL)) in its dust until Coles spun out of Wesfarmers and hit the front thanks to aged rock stars and Little Shop landfill.
More recently, analysts have favoured Woolies over Coles but were surprised by the latter’s sales numbers on Wednesday, leading to broker upgrades to Buy. Yesterday was Woolies’ turn and again brokers were surprised, this time negatively.
The result was an investor rush from one side of the ferry to the other. Woolworths fell -3.9% to be the third worst index performer on the day, and the money flowed into Coles, up 3.3%. Despite the offset, the consumer staples sector closed down -1.3% to be the standout loser on the day.
Technology won the day with a 2.3% jump as recent selling in BNPL stocks suddenly reversed.
Healthcare (+0.9%), energy (+0.8%) and materials (+0.8%) provided the index clout, with the banks (-0.1%) sitting it out. The top four index winners on the day were all miners, and specifically all miners that had been earlier shot down on their quarterly updates. Nickel Mines ((NIC)) rose 7.9% on insider buying, while gold miners Ramelius Resources ((RMS)) and Resolute Mining ((RSG)) rebounded 6.8% and 5.4% and Lynas Rare Earths ((LYC)) chipped in with 4.8%.
I suggested yesterday Megaport ((MP1)) was becoming a bit of a star. It was up another 4.7% to add to tech sector gains. Shareholder Bevan Slattery has revealed shorters are looking to cover, but he's not providing any of his shares. Instead, he intimated on social media, he's having the popcorn ready, watching the spectacle unfold.
Going the other way was Nuix ((NXL)), again, down -5.6% to be the top index loser, followed by UR Westfield ((URW)) with -4.5% on its quarterly. After a good run lately, Nufarm ((NUF)) pulled back -3.2%.
Just to underscore the lack of market conviction at present, the S&P500 closed up 0.7% overnight and our futures are down -16 points this morning, despite further gains in commodities (other than gold).
That would wipe out yesterday.
Bring on Josh.
After the Deluge
Last night on Wall Street saw the biggest session of earnings results in the calendar with 11% of S&P500 companies reporting, and quite a handful of Dow names among them.
Of the Dow names, it is clear from the average’s outperformance last night that on a net basis they were good. But we still saw more negative responses to stellar beats.
Apple reported blow-away numbers in Wednesday night’s aftermarket to be up 2.4% in late trading, but closed down -0.1% last night. Caterpillar has been one of the standout covid-comeback kids and it also knocked forecasts out of the park, and fell -2%.
Outside the Dow, Facebook had also reported along with Apple and saw a 6% pop at the time. It closed up 7.3% last night. Facebook had been a bit of a Big Tech laggard recently, what with all the regulatory scrutiny and so forth. Also lagging had been Amazon, which having soared up to September last year had traded sideways ever since.
Amazon reported in this morning’s aftermarket and quite simply posted an astonishing beat on earnings. It’s up 3.1% as I write.
The beat rate on earnings to date has been 86%. Earnings have come in at an average 22.7% over forecast for companies reporting so far.
The first estimate of US March quarter GDP came out last night. No surprises in 6.4% annual growth. Economists suggest that number would have been higher but for covid-related supply-side bottlenecks. All hale the US consumer, with consumption jumping a whopping 10.7%.
That number was boosted by Biden’s stimulus cheques and Biden was at it again yesterday (our time), pledging even more stimulus, this time with a focus on families. Biden wants paid maternity (and other compassionate) leave. Currently, maternity leave has been solely left to individual employer policy.
Weekly new jobs claims also slipped further last night.
Put it together, and it seems the only way is up. But market-watchers are still waiting for what they believe is a pullback that has to happen.
As we can see from the Nasdaq’s underperformance last night, despite mega-cap Facebook’s influence, not all sectors are enjoying the spoils. But we’ll see what Amazon does tonight.
|Spot Metals,Minerals & Energy Futures|
|Gold (oz)||1772.00||– 9.50||– 0.53%|
|Silver (oz)||26.10||– 0.08||– 0.31%|
|Copper (lb)||4.53||+ 0.05||1.10%|
|Aluminium (lb)||1.10||+ 0.01||1.37%|
|Lead (lb)||0.95||+ 0.01||1.18%|
|Nickel (lb)||7.82||+ 0.16||2.04%|
|Zinc (lb)||1.31||+ 0.01||0.80%|
|West Texas Crude||65.01||+ 1.15||1.80%|
|Brent Crude||68.55||+ 1.53||2.28%|
|Iron Ore (t)||190.45||0.00||0.00%|
It looks like all’s right in Commodity Land at present.
Iron ore did indeed close unchanged for once, while the ups and downs in gold continue without any specific direction evident.
The Aussie is down -0.2% at US$0.7775.
The SPI Overnight closed down -16 points or -0.2%. It’s the last day of the month, so anything could happen.
Locally we’ll see March quarter PPI numbers today along with month of March private sector credit.
China will report April PMIs.
It’s the eurozone’s turn to provide an estimate of GDP.
The US will see the Fed’s preferred PCE inflation numbers for March, noting that 10.7% jump in March quarter consumption.
Got your tomatoes ready? AMP ((AMP)) holds its AGM today.
The Australian share market over the past thirty days…
|BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS|
|ANZ||ANZ Banking Group||Downgrade to Neutral from Buy||Citi|
|APX||Appen||Upgrade to Neutral from Underperform||Macquarie|
|BSL||Bluescope Steel||Downgrade to Neutral from Outperform||Credit Suisse|
|Downgrade to Neutral from Outperform||Macquarie|
|CNU||CHORUS||Upgrade to Neutral from Sell||UBS|
|COL||Coles Group||Upgrade to Buy from Neutral||Citi|
|Upgrade to Outperform from Neutral||Credit Suisse|
|JBH||JB Hi-Fi||Upgrade to Outperform from Neutral||Credit Suisse|
|OSH||Oil Search||Upgrade to Buy from Neutral||UBS|
|RWC||Reliance Worldwide||Upgrade to Add from Hold||Morgans|
|SBM||St Barbara||Upgrade to Buy from Neutral||Citi|
|SLK||Sealink Travel||Downgrade to Neutral from Outperform||Macquarie|
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.)
(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's – see disclaimer on the website)
All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts on the website and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided. www.fnarena.com
FNArena is proud about its track record and past achievements: Ten Years On
For more info SHARE ANALYSIS: AMP - AMP LIMITED
For more info SHARE ANALYSIS: CIM - CIMIC GROUP LIMITED
For more info SHARE ANALYSIS: COL - COLES GROUP LIMITED
For more info SHARE ANALYSIS: JHG - JANUS HENDERSON GROUP PLC.
For more info SHARE ANALYSIS: LYC - LYNAS RARE EARTHS LIMITED
For more info SHARE ANALYSIS: MP1 - MEGAPORT LIMITED
For more info SHARE ANALYSIS: NIC - NICKEL MINES LIMITED
For more info SHARE ANALYSIS: NST - NORTHERN STAR RESOURCES LTD
For more info SHARE ANALYSIS: NUF - NUFARM LIMITED
For more info SHARE ANALYSIS: NXL - NUIX LTD
For more info SHARE ANALYSIS: ORG - ORIGIN ENERGY LIMITED
For more info SHARE ANALYSIS: OSH - OIL SEARCH LIMITED
For more info SHARE ANALYSIS: RMS - RAMELIUS RESOURCES LIMITED
For more info SHARE ANALYSIS: RSG - RESOLUTE MINING LIMITED
For more info SHARE ANALYSIS: URW - UNIBAIL-RODAMCO-WESTFIELD
For more info SHARE ANALYSIS: WOW - WOOLWORTHS LIMITED