Morgans Financial Limited (Imports from Soundcloud)

US equity markets tumbled, recording the worst sell-off since the early days of the COVID pandemic as a stronger-than-expected August inflation report punctured a four day rally and brought a +100 basis point interest rate hike into play next week - Dow dropped -1,276-points or -3.94%, with all 30 index components settling in the red. The broader S&P500 shed -4.32%, with Communication Services (down -5.64%), Information Technology (-5.36%) and Consumer Discretionary (-5.22%) falling over >5% and leading all eleven primary sectors lower. The S&P500 Growth Index fell -5.19%, while the S&P500 Value Index declined a more modest -3.49%. Just six (6) stocks in the S&P 500 finished in positive territory, including Twitter Inc (up +0.80%) after shareholders voted to approve Tesla Inc (-4.04%) Chief Executive Elon Musk's US$44B bid to acquire the embattled company and take it private. Citigroup Inc (down -3.38%) Chief Financial Officer (CFO) Mark Mason warned the fees his bank collects from deal making and capital markets origination are likely to tumble -50%, in line with the broader slowdown hitting Wall Street. That mirrors earlier comments from JPMorgan Chase & Co (-3.47%), which said investment-banking fees may fall by half as clients stay on the sidelines. The five largest companies in the S&P 500 by market capitalization - Apple Inc (down -5.87%), Microsoft Corp (-5.50%), Amazon.com Inc (-7.06%), Google parent Alphabet Inc (-5.90%), and Tesla Inc - shed -US$477B in value. The Nasdaq slumped -5.16%, with Meta Platforms Inc (-9.37%) and Nvidia Corp (-9.47%) also falling sharply. All components in the Nasdaq 100 (down -5.54%) declined. The latest declines marked the biggest daily percentage fall for all three benchmark indexes since 11 June, 2020, according to Dow Jones Market Data. The small capitalisation Russell 2000 lost -3.91%.

The S&P500 and Nasdaq equity extended their rebound into a fourth consecutive session ahead of tonight’s AEST August inflation figures, with a number of traders pointing to a ‘short squeeze’ - Dow settled +230-points or +0.71% higher, having been up as much +352-points at its session peak. Goldman Sachs Group Inc (up +0.73%) will cut jobs as early as this month after pausing the annual practice for two years during the pandemic, according to a Reuters report. The investment bank warned in July it might slow hiring and cut expenses as the economic outlook worsens. Activist investor Dan Loeb signalled through Twitter that he is backing off his push to persuade Walt Disney Co (up +1.05%) to spin off its popular sports television network ESPN. The broader S&P500 rose +1.06%, with Energy (up +1.81%), Information Technology (+1.63%) and Consumer Discretionary (+1.35%) all advancing over >1% and leading all eleven primary sectors higher. Bristol-Myers Squibb Co jumped +3.14% after the U.S. Food and Drug Administration (FDA) approved the company’s oral treatment for plaque psoriasis known as Sotyktu. The Nasdaq gained +1.27%. The small capitalisation Russell 2000a advanced +1.23%.

US equity markets rallied on Friday (9 September) to secure their first weekly advance in four weeks, shrugging off some fresh hawkish commentary from Federal Reserve officials and with traders eyeing inflation figures later this week - Dow gained +377-points or +1.19%, The broader S&P500 rose +1.53%, with Communication Services (up +2.53%) and Energy (+2.38%) gaining over >2% to lead all eleven primary sectors higher. Warren Buffett’s investment vehicle Berkshire Hathaway boosted its stake in Occidental Petroleum (up +1.63% in extended trading after +1.75% rise in the regular session) to 26.8% (up from 20.2% as at 8 August) according to a regulatory filing late on Friday (9 September after getting the go-ahead last month from the Federal Energy Regulatory Commission to buy as much as half of the oil giant. The Nasdaq rallied +2.11%. The small capitalisation Russell 2000 gained +1.95%.

US equity markets settled with their first back-to-back gains in two weeks as investors digested Federal Reserve Chair Jerome Powell’s latest remarks - Dow gained +193-points or +0.61%, The broader S&P500 rose +0.66%, with Health Care (up +1.77%) and Financials (+1.74%) rising over >1.7% to lead eight of the eleven primary sectors higher. The Nasdaq added +0.60%. Snap Inc jumped +9.34% after Verge reported its Chief Executive Officer (CEO) Evan Spiegel broke down plans to reach US$6B in revenue and 450 million users in a leaked internal memo. The small capitalisation Russell 2000 rose +0.81%.

Morgans is a proud sponsor of Deloitte’s Tech Fast 50 2022.

Nick Harris, Morgans Senior Analyst sat down with the Tech Fast 50 2021 winner Monica Zagrodny, the Co-founder of Monarc Global to discuss what winning Tech Fast 50 and the Female Leadership awards has meant for her and her business. Monarc Global provides automated pricing software for aircraft, supporting operators and owners within the industry.

Nominate your business today for the Tech Fast 50 2022 for the opportunity to be recognised as one of this year’s fastest-growing technology companies: https://bit.ly/3vfQKxn

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

The RBA will continue to tighten rates into our Australian Resources Boom.

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 rebounded, with all three benchmark indices logging their largest daily percentage gains since 10 August despite some more hawkish pronouncements from various Federal Reserve officials - Dow gained +436-points or +1.4%, with 3M Co (up +3.39%) and Nike Inc (up +3.17%) among notable performers. A US$1 move in any one of the 30 components of the Dow equates to a 6.59-point swing. The broader S&P500 rose +1.83%, with Utilities (up +3.14%) and Consumer Discretionary (+3.08%) climbing over >3% to lead ten of the eleven primary sectors higher. Energy (down -1.15%) was the only primary sector to settle in the red, with Exxon Mobil Corp falling -0.85%, Chevron Corp -1.28% and Occidental Petroleum Corp -2.17%. United Airlines Holdings Inc rose +5.52% after the air carrier raised its third-quarter revenue growth outlook, citing continued "strong" demand exiting a "robust" summer. The company now expects revenue to be ~12% above the same period in pre-pandemic 2019, compared with previous growth guidance of ~11%. The company expects capacity to be down 10% to 11%, compared with previous expectations of down about 11%. And with costs in line with, to slightly better than expectations, but spread over greater capacity, costs per available seat miles, excluding fuel, profit sharing and nonrecurring charges, is expected to be up +16% versus previous expectations of up 16% to 17%. United raised its estimate for average fuel price per gallon to US$3.83 from US$3.81. The Nasdaq rebounded +2.12%, snapping a seven session losing streak (the technology-centric indice’s longest such streak since 4 November, 2016). Apple Inc’s (up +0.93%) hosted their launch event – titled “Far Out” – overnight, unveiling three new Apple Watches and updated AirPods Pro. The company said it did not increase the prices on its iPhone 14 line-up as a number of analysts had speculated. McCormick & Co Inc fell over >4.5% in extended trading (following a +3.41% gain in regular trading) after the spice maker and distributor said that third-quarter sales have fallen short of its expectations. Sales are expected to rise by ~3% in third quarter, while adjusted earnings per share (EPS) are forecast to be ~US$0.65c (down from US$0.80c in the year-ago period). Current consensus analyst forecasts are for McCormick to report adjusted EPS of US$0.83 cents a share when it reports quarterly earnings in early October. The small capitalisation Russell 2000 gained +2.21%. Twitter Inc gained +6.6% after The Wall Street Journal reported that a judge has ruled Elon Musk can amend his countersuit against the social-media company he agreed to buy for US$44B to include a whistleblower report but denied Mr Musk’s request to postpone the trial to November.

US equity markets resumed trading following the Labor Day holiday weekend on the backfoot as Treasury yields resumed their march higher - Dow fell -173-points or -0.55%, with the 30-stock index trading in an ~400-point intra-day range. The broader S&P500 -0.41%, with Communication Services (down -1.26%) and Energy (-1.08%) both falling over >1% to lead seven of the eleven primary sectors lower. More defensive sectors outperformed overnight, including Real Estate (up +1.01%) and Utilities (+0.23%). FedEx Corp fell -2.2% after analysts at Citi downgraded the package delivery company to a “neutral’ rating from ‘buy’ (and cutting their target price to US$225 from US$270) citing concerns over the pace of freight activity with upcoming data expected to “skew negatively” in the peak season.

August results were sound by historical standards, reflecting a stable operating environment and offering comfort to investors.

Read more: https://morgans.com.au/Blog/2022/September/Australia-Strategy-Reporting-Season-Review

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

AUD - buying ~68.12 US cents. The Reserve Bank of Australia (RBA) announces it latest interest rate decision at 2:30pm AEST, with consensus expectations for a 50 basis point interest rate hike to lift the cash rate to 2.35%. Second quarter Current Account figures and the Ai Group Services Index for August are also slated for release.