Tech stocks hit with Amazon down 20% after the bell + UBS' take on two mining favourites

The Morning Wrap

Livewire Markets

Welcome to Charts and Caffeine - Livewire's pre-market open news and analysis wrap. We'll get you across the overnight session and share our best insights to get you better set for the investing day ahead.


S&P 500 Session Chart: US stocks faded significantly from early strength, amid soft tech earnings
S&P 500 Session Chart: US stocks faded significantly from early strength, amid soft tech earnings
Please note the prices above are futures prices @ 7:30 am, AEDT, not NY close price
Please note the prices above are futures prices @ 7:30 am, AEDT, not NY close price


  • Dow surges after GDP data, but Nasdaq falls with tech stocks hit
  • Amazon the latest tech stock to get hammered on results, down 20% after the bell
  • Apple beats after the bell, but comes up light on iPhone sales and services, stock down 0.6%
  • Meta down 25% on the back of soft results
  • European Central Bank raises interest rates by 75 basis points, as expected
  • US 3Q GDP came in 2.6% higher on an annual basis and above the 2.3% gain economists expected
  • RBNZ Governor Orr says New Zealand relatively well positioned but inflation still too high
  • Credit Suisse nears sale of securitised-products group to Pimco and Apollo
  • Japan's extra budget for stimulus package to exceed $198 billion
  • Australia rides out Chinese sanctions as exports boom
  • Chinese cities step up Covid restrictions as cases remain elevated
  • IEA says peak fossil fuel demand possible in a few years
  • China President Xi says willing to work with US over peace and development ahead of Biden meeting
  • China has decided Taiwan's situation no longer acceptable and has begun to ratchet up pressure 


    Source: Forex Factory
    Source: Forex Factory

    Not a great deal on the docket over the next 24 hours, with US pending home sales and the University of Michigan Consumer Sentiment read about the most important for markets. 

    Consumer sentiment was essentially unchanged in September, just 0.4 index points above August. The one-year economic outlook continued lifting from the extremely low readings earlier in the year, but gains were largely offset by modest declines in the long-run outlook. 


    Daily ASX 200 chart over the past six months
    Daily ASX 200 chart over the past six months

    The Aussie market continues to grind higher, extending away from the September/October lows. Whilst many analysts are calling for further weakness and new lows to be created in time, you wouldn't know it looking at the chart. 6800 has been cleared, albeit modestly at this stage, and there is a fairly clear run - at least technically - into 7000. That level, however, will likely act as major technical and psychological resistance, whilst there are multiple layers of resistance all the way up to 7200. 


    UBS has taken a look at a couple of hot materials stocks in Pilbara Minerals (ASX: PLS) and Whitehaven Coal (ASX: WHC). 

    UBS notes that PLS reported strong Septebmer quarter production and had in-line sales at good costs. The problem, as they see it, is that realised prices came in below expectations. The other wrinkle is that PLS is expensive and trades at a premium to its peers. Whilst UBS is bullish on lithium, they see better value alternatives and have a SELL rating on the stock with a 305c price target. 

    As for WHC, UBS has reinstated their coverage of the coal producer with a NEUTRAL rating and 1000c price target. UBS notes generational high coal prices continuing to create value but see coal price volatility through the northern hemisphere winter. 

    Chris Conway wrote today's report.


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    Livewire and Market Index's pre-opening bell news and analysis wrap. Available weekday mornings and written by Kerry Sun.

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