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Morgans AM: Wednesday, 22 February 2023 by Morgans Financial

US equity and bond markets were CLOSED overnight in observance of the Presidents Day holiday. On the geopolitical front, tensions between the US and China were ratcheted up as US Secretary of State Antony Blinken warned top Chinese diplomat Wang Yi of consequences should Beijing provide material support to Russia's invasion of Ukraine after the men met on the sidelines of the Munich Security Conference.

Morgans Senior Analyst Chris Brown interviews Malcolm Norris of Sunstone Metals regarding the most recent results from the El Palmar Copper-Gold Project in Ecuador. Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAU

US equity markets mostly weaker on Friday (17 February) as robust economic data and hawkish commentary from Federal Reserve officials continued to fan investor fears that the Federal Reserve will need to apply a brake to the US economy for longer than anticipated just last month - Dow rose +130-points or +0.39%, with biotechnology company Amgen Inc (up +2.69%) and diversified health care company UnitedHealth Group Inc (+2.41%) among the leading index performers. The broader S&P500 eased -0.28%, with Energy (down -3.65%) the major drag. The more defensive Consumer Staples (+up +1.29%) and Utilities (+1.00%) outperformed. Tesla Inc rose +3.10%, with Bloomberg reporting after the close that the electric vehicle manufacturer is considering buying Canadian miner Sigma Lithium Corp (down -2.64%). Tesla has been talking with advisers about a potential bid, and Sigma Lithium is one of “multiple mining options” being explored, the report said. The Nasdaq fell -0.58%. Meta Platforms Inc (up +0.26%) announced a new paid verification subscription service called Meta Verified over the weekend. For US$11.99 per month on the web and US$14.99 per month on iOS, users on Meta’s Instagram and Facebook platforms will be able to submit their government ID and get a blue verification badge. The service will be introduced in Australia and New Zealand this week, and more countries will follow, CEO Mark Zuckerberg said. The small capitalisation Russell 2000 added +0.21%.

In an ABC Radio interview with Steve Austin, Morgans Chief Economist Michael Knox discusses the Australian economy, interest rate rises, and how the Fed and the RBA are trying to outwit the market. Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAU

Senior Analyst Nick Harris updates us on Telstra's (ASX:TLS) 1H23 result which was broadly in line with expectations and full-year guidance was reiterated, albeit with consumers buying fewer new mobile phone handsets. Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAU

US equity markets retreated amid fresh evidence of stubborn inflation, and following some hawkish commentary from Federal Reserve speakers - Dow fell -431-points or -1.3%, Microsoft Corp and Walt Disney Co contributed the most to the Dow’s decline, down -2.66% and -3.12% respectively. The broader S&P500 shed -1.4%, with Consumer Discretionary (down -2.16%), Information Technology (-1.75%) and Communication Services (-1.55%) all down over >1.5% to lead all eleven primary sectors lower. Bank of America Corp (down -0.79%) is planning to cut jobs in its investment bank, according to a Bloomberg News report, albeit the cuts could affect less than 200 banking globally according to people familiar with the matter. Tesla Inc fell -5.69% after the company issued a voluntary recall notice for 362,758 vehicles in the US equipped with the company’s experimental driver-assistance software, which is marketed as Full Self-Driving Beta or FSD Beta. The electric vehicle manufacturer will deliver an over-the-air software update to cars to address the issues. The FSD Beta system may cause crashes by allowing the affected vehicles to: “Act unsafe around intersections, such as traveling straight through an intersection while in a turn-only lane, entering a stop sign-controlled intersection without coming to a complete stop, or proceeding into an intersection during a steady yellow traffic signal without due caution,” according to a safety recall report on the website of the National Highway Traffic Safety Administration. The Nasdaq dropped -1.78%. Cisco Systems Inc rallied +5.24% after reported better-than-expected fourth quarter earnings per share (US0.88c versus consensus estimates for US$0.86c) and revenue (US$13.59B versus consensus US$13.43B) after the close a day earlier. Roku Inc soared +11.15% after the streaming service reported a narrower-than-expected fourth quarter loss per share (-US$1.70 versus consensus US$1.73), and better-than-expected revenue after the close of the previous session. The small capitalisation Russell 2000 lost -0.96%.

Senior Analyst Derek Jellinek gives an update on CSL Limited (ASX:CSL) and Cochlear (ASX:COH) following their recent reporting season results. Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAU

Senior Analyst Nathan Lead gives his comments on the solid result from Commonwealth Bank this reporting season. Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAU

US equity markets advanced as investors digested stronger-than-expected retail sales figures for January, the latest in a string of economic data that has fuelled investor bets that the Federal Reserve will have to raise interest rates further to curb inflation - Dow edged +39-points or +0.11%, rallying more than >250-points from its intrasession low. The broader S&P500 +0.28%, with Communication Services (+1.017%) and Consumer Discretionary (+1.16%) both rising over >1% to lift nine of the eleven primary sectors. Energy (down -1.78%) and Health Care (-0.51%) settled in the red. The Nasdaq +0.92%. Airbnb Inc jumped +13.35% after reporting record fourth-quarter revenue and profit after the close of the previous session to achieve its first profitable year. The small capitalisation Russell 2000 rose +1.09%.