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Senior Analyst and Equity Strategist Tom Sartor takes us through the results and themes so far this August 2022 Reporting Season, with over 25% of the top 50 ASX companies reporting results for FY22.

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US equity markets advanced, shrugging off some underwhelming economic data out of China - Dow gained +151-points or +0.45%, its fourth consecutive session gain and longest winning streak since its six session strong of gains that ended 27 May. The 30-stock index also closed above its 200-day moving average for the first time since 20 April. The broader S&P500 rose +0.40%, with Consumer Staples (up +1.05%) and Utilities (+0.81%) leading nine of the eleven primary sectors higher. Energy (down -1.96%) sat at the foot of the primary sector leaderboard, with Exxon Mobil Corp down -1.79%, Chevron Corp -1.90% and Marathon Oil Corp -2.78%. Tesla Inc rose +3.1%, with Chief Executive Elon Musk tweeting that the electric-vehicle maker has produced more than >3M vehicles, with a third of them made in China. The Nasdaq climbed +0.62%. Apple Inc (up +0.63%) may expand its advertising to more of its first-party apps on the iPhone in an effort to boost revenue, according to Bloomberg. The company generates ~US$4B in annual revenue from its ad business but wants to grow the segment into the “double digits,” according to the report. The small capitalisation Russell 2000 added +0.23%. Bed Bath & Beyond Inc soared +23.55% as the Reddit crowd that made it a meme stock again embraced it. Volume of 127M shares traded was more than eight times the 65-day average of 15m shares per day. The stock has been rallying amid with no real news, but participants on Reddit’s WallStreetBets forum were celebrating the gains. The stock, which has been shorted by many large funds, is up ~200% so far this month.

US equity markets rallied into the close of Friday’s (12 August) session to cap another strong week - Dow gained +424-points or +1.27%, The broader S&P500 rallied +1.73% to 4,280.15. The S&P 500 crossed a closely watched technical level of 4,231 points during last Friday’s (12 August) session, meaning the benchmark index has recouped half its losses since tumbling from its all-time closing peak (4,796.56) set on 3 January. A 50% retracement for some signals a bull market. All 11 primary sectors S&P 500 advanced on Friday (12 August), with Consumer Discretionary (up +2.30%), Information Technology (+2.07%) and Communication Services (+2.02%) all rising over >2%. The Philadelphia Semiconductors Index (+2.99%) and Dow Jones Transport Average (+0.49%) also advanced. The S&P500 Growth Index (up +2.06%) outperformed the S&P500 Value Index (+1.41%). The Nasdaq climbed +2.09% to 13,047.18. The small capitalisation Russell 2000 also gained +2.09%.

US equity markets erased earlier session gains to settle with modest losses, running out of steam in the closing hour of trading despite another reassuring inflation report - Dow edged +27-points or +0.08% higher. Walt Disney Co gained +4.68% after the media and entertainment giant reported its second quarter result after the close of the previous session, adding more streaming subscribers than expected and announcing plans to launch an ad-supported tier while increasing prices on its current offerings before the end of the year. Investment banks Goldman Sachs Group Inc (up +1.08%) and JPMorgan Chase & Co (+1.48%) also continued to trade strongly. The broader S&P500 dipped -0.07%, with the more defensive sectors (Health Care down -0.71%, Real Estate -0.55%) among the key underperformers overnight. Energy (up +3.19%) sat atop the primary sector leaderboard following a strong session on crude markets. Heal The Nasdaq lost -0.58%. Bloomberg reported late in the session that Apple Inc (down -0.44%) is requesting that its suppliers "build at least as many" of the company's new iPhones as they did last year. The report said that Apple also continues to expect suppliers to build ~220M total iPhones for the year, which is roughly equal to last year's figure as well. Bloomberg noted that the report suggested confidence on the part of Apple executives that the company would be able to withstand economic challenges and still drive strong demand for its devices. The small capitalisation Russell 2000 rose +0.31%.

Associate Analyst Steven Sassine previews the stocks yet to report in FY22 in the Online sector, including Carsales.com (CAR) and SEEK (SEK). As well as a recap of REA Group, which reported on 10 August 2022.

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A peak in core inflation allows an easing of bond yields which together with improved earnings support US equities.

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US equity markets rallied after a softer-than-expected inflation report prompted investors to dial back their forecasts on the scale of further interest rate hikes in September - Dow gained +535-points or +1.63%, exiting official correction territory. The broader S&P500 +2.13% to 4,210.24, settling +14.8% above its mid-June low. Materials (up +2.88%), Consumer Discretionary (+2.87%), Information Technology (+2.77%) and Communication Services (+2.77%) all climbing over >2.5%. All eleven primary sectors advanced, with six sector logging gains of over >2%. Tesla Inc gained +3.89% despite filings on Tuesday (9 August) with the Securities and Exchange Commission (SEC) revealing that Elon Musk had sold ~7.9M shares between Friday (5 August) and Tuesday at prices ranging from US$838.57 to US$911.75 - ~US$6.88B in total. In a tweet, Mr Musk indicated he was done selling, adding: “In the (hopefully unlikely) event that Twitter forces this deal to close *and* some equity partners don’t come through, it is important to avoid an emergency sale of Tesla stock.” Last week, Tesla shareholders approved plans for a 3-for-1 stock split, which will take place 24 August. Trading will begin on a stock split-adjusted basis on 25 August, the company said in a regulatory filing. The Nasdaq rallied +2.85% to 12,854.80, exiting official bear market territory after 107 trading sessions. The technology-centric index is up 20.75% from its 2022 closing low of 10646.10 hit on 16 June, 2022. Meta Platforms Inc rose +5.82% after the Facebook-parent said that it had raised US$10B in its first-ever bond offering. Apple Inc (up +2.62%), Alphabet Inc (+2.63%) and Amazon.com Inc (+3.53%) all rose more than >2%. The small capitalisation Russell 2000 jumped +2.95%.

Morgans AM: Wednesday, 10 August 2022 by Morgans Financial

Senior Analyst Nathan Lead gives an update on the result for Aurizon Holdings (ASX:AZJ) which was the softer Bulk result, weaker than expected FY23 outlook, Network macro benefits, and the One Rail acquisition.

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Morgans AM: Tuesday, 9 August 2022 by Morgans Financial