The US stock markets extended gains as tech stocks resumed rallying amid tech earnings optimism. Dow continued its winning streak, up for the twelfth straight trading day. Both Microsoft and Alphabet’s quarterly earnings beat expectations, with the latter’s shares jumping 8% in the after-hours trading. However, Snap’s shares plunged 16% in the extended hours due to weak guidance. Investors will be eying Meta’s earnings tomorrow. Despite a positive close on Wall Street, the recent mixed earnings results may keep the rally in check, with the Fed’s decision due for release early tomorrow morning. While a 25 basis points hike is widely expected, any hawkish stance could rattle the financial markets again.
China’s signal to further boost its faltering economy through more stimulus measures made the headline for Asian markets, with the Hang Seng Index jumped 4% on Tuesday. The news reignites hopes for a better economic recovery for the country in the second half and lifted commodity prices, including metal and oil prices. Copper futures were up 1.8%, and WTI futures rose 1.1% to just under $80 per barrel, which boosted mining and energy stocks in the ASX, sending the index higher.
Asian markets are set to open mixed. The ASX 200 futures were up 0.26%, the Hang Seng Index futures were down 0.50%, and Nikkei 225 futures fell 0.06%.
Price movers:
- 5 out of 11 sectors finished higher in the S&P 500, with Material and Technology leading gains up 1.76% and 1.19%, respectively. Real Estate and Financials were the laggards, down 0.74% and 0.73%, respectively.
- Alphabet’s shares jumped 8% before pulling back amid strong earnings reports. The Google parent company reported earnings per share as US$1.44, topping an estimated US$1.34 in the second quarter. The revenue was at US$74.6 billion, beating the US$72.82 billion expected. In addition, both its YouTube ads and Google Could revenue topped Wall Street’s estimates, reporting at US$7.67 billion and US$8.03 billion, respectively. The company’s CFO, Ruth Porat, is leaving the CFO and become the chief investment officer.
- Microsoft’s shares fell slightly following the fiscal Q3 earnings results as Azure’s revenue growth slowed. The AI pioneer reported earnings per share as US$2.69, beating an estimated US$2.55. Revenue was at US$56.19, higher than the US$55.47 billion expected. The cloud business Azure’s revenue rose 26% year on year, slowed from a 27% increase in the prior quarter.
- Bitcoin dropped to just above 29,000, a more than one-month low ahead of the Fed decision as BlackRock’s ETF filing optimism faded. Cryptocurrencies lost steam in the last week as uncertainties arose around regulatory issues. Binance was sued by the SEC regarding anti-money laundering violations last month.
ASX and NZX announcements/news:
- ikeGPS Group Limited (IKE) (NZX: IKE/ASX: IKE) reports Q1 FY24 revenue as NZ$5.6 million, down 18% year on year. Gross margin was around NZ$3.4 million, or at 61%, up 56% year on year.
Today’s agenda:
- Australian second-quarter CPI.
- FOMC meeting.
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