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Benchmark US equity indices logged their best daily percentage gains since 12 August overnight following some better-than-expected economic data, and as investors eye Federal Reserve Chair Jerome Powell’s address at the Jackson Hoe Economic Symposium tonight AEST - Dow rose +323-points or +0.98%, The broader S&P500 gained +1.41%, with Materials (up +2.26%) and Communication Services (+2.06%) rising over >2% to lead al eleven primary sectors higher. The technology-centric Nasdaq rallied +1.67%, aided by a pullback in Treasury yields. Nvidia Corp The small capitalisation Russell 2000 advanced +1.52%. Equity markets have been contending with low volume trade, with Wednesday’s (24 August) session recording turnover of just 8.8B shares across the various Wall Street exchanges - the lowest volume so far this year and a decline of 26% compared with the daily average for 2022, according to Dow Jones data.

Senior Analyst and Co-head of Research Alex Mees gives his analysis of Domino's Pizza (ASX:DMP) and The Lottery Corporation's (ASX:TLC) results for FY22.

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US equity markets pushed modestly higher, with both the Dow and S&P500 snapping a three session decline - Dow added +60-points or +0.18%. The broader S&P500 settled +0.29% higher, with the Energy sector (up +1.2%) sitting atop the primary leaderboard for a second straight session and leading all eleven primary sectors higher. Cruise lines were among the best-performing stocks in the broader market index, with Norwegian Cruise Line Holdings jumping +8.40%, Royal Caribbean Group +7.65%, and Carnival Corp +5.35%. Advance Auto Parts Inc (down -9.62%) was the worst performer in the S&P500 after the auto-parts retailer reported a mixed second-quarter result and lowered its full year outlook after the close of the previous session. Tesla Inc added +0.22% to US$891.29 ahead of the electric vehicle maker’s three-for-one stock split becoming effective after the close of the session. Tesla undertook a 5-for-1 share split effective 31 August, 2020, and the stock has gained ~104% since then. The Nasdaq rose +0.41%. The small capitalisation Russell 2000 gained +0.84%. Peloton Interactive Inc soared +20.36% after the fitness equipment and apparel company announced a deal to sell its products on Amazon. To date, Peloton has relied on direct-to-consumer sales through its stores and website. Bed Bath & Beyond Inc popped +15.3% after The Wall Street Journal reported the meme stock has found a financing source to shore up its liquidity.

The Dow and S&P500 extended declines into a third straight session amid relatively thin trading volumes - Dow fell -154-points or -0.47%, The broader S&P500 slipped -0.22%, with the more defensive Real Estate (down -1.45%) and Health Care (-1.39%) both falling over >1% and leading seven of the eleven primary sectors lower. Energy sat atop the primary sector leaderboard with a +3.62% gain. The Nasdaq settled flat. Twitter Inc dropped -7.32% after a whistleblower at the company filed complaints with the Securities and Exchange Commission (SEC), Federal Trade Commission (FTC) and Justice Department alleging “extreme, egregious deficiencies by Twitter” related to privacy, security and content moderation. Tesla Inc rose +2.26% ahead of the electric vehicle maker’s three-for-one stock split becoming effective after the close of tonight’s AEST session. Tesla’s three-for-one split will be its second in as many years; the company split its shares five-for-one in August 2020. The small capitalisation Russell 2000 edged +0.18% higher.

US equity markets recorded their steepest declines in two months to open the new trading week as investors eye the Jackson Hole Economic Symposium later this week and worry that the Federal Reserve may strike a more hawkish tone - Dow fell -643-points or -1.91%, The broader S&P500 shed -2.14%, with Consumer Discretionary (-2.84%), Information Technology (down -2.78%), and Communication Services (-2.67%) all dropping over >2.5% to lead all eleven primary sectors lower. Both the Dow and S&P500 logged their steepest single session declines since 16 June. The Nasdaq dropped -2.52%, recording its largest single session fall since 28 June. Netflix Inc dropped -6.06% after analysts at CFRA downgraded the streaming giant, noting that a key catalyst for the company - introducing new ad-pay subscription plans – “may not be visible until 2023.” The small capitalisation Russell 2000 lost -0.49%.

US equity markets retreated on Friday (19 August), with the recent rebound faltering as interest rate hike fears resurfaced ahead of the Jackson Hole Economic Symposium that begins on Thursday night AEST (25 August) - Dow fell -292-points or -0.86%, The broader S&P500 lost -1.29%, with Consumer Discretionary (-2.10%) and Financials (2.02%) both falling over >2% to lead nine of the eleven primary sectors lower, Information Technology (-1.83%) was also a major drag. Health Care (+0.27%) and Energy (+0.02%) were the only primary sectors to advance. General Motors Co rose +2.53% after it said it would reinstate quarterly dividend payouts. Occidental Petroleum Corp jumped more +9.88% after Warren Buffett’s Berkshire Hathaway Inc received regulatory approval (after filing an application with the Federal Energy Regulatory Commission on 11 July) to buy to half of the oil company. Berkshire currently owns 188.5M shares of Occidental, equal to a 20.2% position. It surpassed a key threshold where Berkshire could record some of the oil company’s earnings with its own, potentially adding billions of dollars in profit. The Nasdaq -2.01%. The small capitalisation Russell 2000 lost -2.17%. Bed Bath & Beyond Inc tumbled -40.54% after Bloomberg reported that some suppliers are restricting or halting shipments altogether after the home-goods retailer fell behind on payments. The report came after GameStop Corp Chairman Ryan Cohen disclosed in a filing after the close of last Wednesday’s (17 August) session that he’s planning to sell his big stake in the company just months after he bought it.

Morgans Senior Analyst Adrian Prendergast gives us an update following a strong result from BHP, with earnings slightly ahead of expectations while positively surprising on both dividend and free cash flow generation.

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Visit the Morgans website: www.morgans.com.au
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Morgans AM: Friday, 19 August 2022 by Morgans Financial

Morgans AM: Thursday, 18 August 2022 by Morgans Financial

US equity markets mixed as investors weighed a pair of strong corporate results from major retailers Walmart Inc and Home Depot Inc against the backdrop of a slowdown in the housing market - Dow gained +239-points or +0.71% to 34,152.01, reclaiming the 34,000 level for the first times since 4 May as it extended its rally into a fifth straight session. The broader S&P500 edged +0.19% higher, Royal Caribbean Cruises Ltd gained +3.99% even after the company refinanced with a new batch of junk bonds yielding more than 11%. The Nasdaq slipped -0.19%. The small capitalisation Russell 2000 dipped -0.04%. ‘Meme’ stock Bed Bath & Beyond Inc continued to soar, rising +29.01% after another wild session that saw the company’s free float turn over 6.5 times during the session.