ASX 200 to fall sharply, US stocks record worst month in 5 months
Get up to date on overnight market activity and the big events for the day.
ASX 200 futures are trading 92 points lower, as of 8:20 am AEST.
It was bound to happen. After five months of consistent gains to end 2023 and start 2024, the US equity market recorded a month of losses. A combination of mixed earnings, concerns over the Fed's next move, and rapidly changing market sentiment sent stocks lower yesterday. 2-Year yields hit the highest since November, and are back over the psychologically important 5% level.
On the earnings front - Amazon (NASDAQ: AMZN)'s AWS business reported its best revenue growth in a year while Pinterest (NASDAQ: PINS) shares surged more than 20% following its earnings beat. On the downside, Starbucks (NASDAQ: SBUX)' Q1 results and guidance left a bitter aftertaste in its shareholders' mouths while chip maker AMD (NASDAQ: AMD) reported a near-50% drop in gaming revenues.
Let's dive in.
S&P 500 SESSION CHART
OVERNIGHT MARKETS
- Wall Street hit by Fed jitters to close wild April
- Dow sheds 570 points as stocks seal awful April ahead of Fed interest-rate decision
- ‘Sell in May and go away’? This year the calendar ‘trick’ overlaps with a Biden-Trump rematch
- Investors getting jittery about upcoming US presidential election with taxes, tariffs and debt the hot topics
- Goldman Sachs says momentum traders are modelled to buy equities over next week regardless of market direction
INTERNATIONAL STOCKS
- Amazon reports strong cloud unit sales on rising AI demand
- Starbucks posts first sales drop since 2020 during global pullback
- Binance founder CZ gets four months in prison
- AMD’s gaming-chip sales drop nearly 50%, stock falls 3%
- McDonald’s stock bounces as revenue beat, new ‘larger’ burger offset profit miss
- 3M’s stock surges toward a 14-month high after profit, sales beat expectations
- Coca-Cola’s Q1 results beat top- and bottom-line estimates, boosted by ‘dynamic backdrop’
- Eli Lilly’s stock jumps as Q1 profit tops estimates amid strong sales of its diabetes treatments Mounjaro, Zepbound
- Apple poaches dozens of Google's AI experts, creates secretive European laboratory in Zurich
- Samsung Electronics returns to profit for first time in two years; says AI demand to drive H2
CENTRAL BANKS
- May Fed meeting messaging will revolve around higher for longer
- Fed tightening impact limited by housing, equity market tailwinds for wealthier Americans
- ECB's Knot says June rate cut realistic, citing declining inflationary pressure in the Eurozone
- ECB VP Guindos notes of challenges for the central bank to achieve its inflation goal
- PBOC takes steps to stop CGB bull market, unlikely to become buyer for now
- Majority of Bank of Korea board members don't see any rush to cut interest rates
ECONOMY
- US labour costs rise by most in year in sign of wage pressures
- Eurozone inflation steady in April, paving way for June ECB rate cut
- Europe's major four economies grow faster than expected in Q1, boosting revival hopes
- China official non-manufacturing PMI softer than expected, Caixin manufacturing index firmer
- China's top ruling lawmakers signal support for property and willingness to cut rates
- Japan industrial production beats, retail sales disappoint, jobless rate unexpectedly steady
- German retail sales up more than expected in March
- Taiwan's economy expanded at the fastest pace in almost three years as AI demand boosts tech exports
- South Korea activity data mostly soft, industrial production posts biggest drop in 15 months
GEOPOLITICS
- Hope rises for renewed Gaza ceasefire as Israel lowers demands, Hamas urged to accept terms
- ICC told arrest warrants for senior Israeli officials will be met with US retaliation
- Tesla and TikTok highlight US-China battle of data which is just getting started
ASX TODAY
- Keep an eye out on Nexgen Energy (ASX: NXG) shares as the dual-listed uranium miner is about to launch a $200 million equity placement.
- In the meantime, Bapcor (ASX: BAP) is searching for (another) new CEO after Paul Dumbrell said he wouldn't take the job just two days before he was due to start.
- And in private company news, another airline bites the dust - this time, Bonza entered voluntary administration and its fleet of aircraft has been repossessed.
Key Events
Companies trading ex-dividend:
- Wed 1 May: DRA Global (DRA) – $0.11
- Thu 2 May: WAM Strategic Value (WAR) – $0.022, Waterco (WAT) – $0.07, Acorn Capital (ACQ) – $0.028, Bank of Queensland (BOQ) – $0.17
- Fri 3 May: None
Economic calendar (AEST):
- 8:45am – NZD – Unemployment change, unemployment rate
- 10:30am – JPY – Final manufacturing PMI
- 4:30pm – AUD – Commodity prices y/y
- 10:15pm – USD – ADP non-farm employment change
- 11:45pm – USD – Final manufacturing PMI
Overnight:
- 12:00am – USD ISM manufacturing PMI, JOLTS job openings, ISM manufacturing prices, construction spending
- 12:30am – USD – Crude oil inventories
- 4:00am – USD – Federal Funds Rate, FOMC statement
- 4:30am – USD – FOMC Press conference
This Morning Wrap was written by Hans Lee and Chris Conway.
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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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Livewire and Market Index's pre-opening bell news and analysis wrap. Available weekday mornings and written by Kerry Sun.
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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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