The ASX is set for another day in the red following Wall Street’s muted session.
Futures are down 37 points or 0.51% to 7,117 as UK inflation accelerates above analyst expectations.
What’s new on Wall Street?
All four of New York’s major indices turned red as subpar earnings reports turned investors away.
The Russell 2000 and the Nasdaq led the rout, falling 1.88% and 1.54%, while the S&P and the Dow trailed with 0.83% and 0.12% losses.
Only utilities and consumer staple stocks staged a green finish, while energy companies brought up the rear with a 2.15% loss. Slightly more than 60% of US stocks declined.
Retail giant Target (NYSE:TGT) was among the day’s biggest losers, dropping 13% after it missed earnings expectations and slashed its fourth-quarter outlook. Chipmaker Micron (NASDAQ:MU) also fell nearly 7% on a weakened 2023 outlook.
There are stocks that beat expectations, however, with semiconductor stalwart Nvidia jumping 3% after it beat revenue forecasts, and home improvement retailer Lowe’s notched a 3.1% gain thanks to better-than-expected earnings and an upgraded FY22 outlook.
Commodities and currency
Oil gave back its gains overnight after NATO posited the missile that hit Poland came from Ukrainian defences.
A barrel of West Texas Intermediate is down 1.66% to fetch US$85.48, while Brent Crude fell 1.89% to US$85.28 a barrel.
Oanda senior market analyst Ed Moya said yesterday’s bullish triggers for oil prices were quickly undone overnight.
“Oil prices declined after flows from the Druzhba pipeline resumed and preliminary analysis of the missile that killed two in Poland was likely an errant missile fired by Ukraine’s defence system,” Moya explained.
“It looks like we aren’t seeing an immediate escalation from the Russians and that has tentatively removed some of the short-term supply risks.”
Not even gold could crack a material gain — up just 0.08% — while copper dropped 1.66% to US$3.76 a pound. Iron ore futures held on to their green streak, up 2.5% to just more than US$98 a tonne.
As US currency continues to weaken, the Aussie dollar is making headway. It’s currently buying 67 US cents and 57 British pence.
In crypto land, the rout is back — major currencies gave up their gains overnight to land in the red. Bitcoin is down 1.85% to fetch A$24,611 and Ethereum dropped 3.58% to A$1,799.
On the ASX
Travel stock Webjet is flying above its pre-pandemic levels, with bookings in the last six months to September 30 at 101% of its 2019 figures.
Webjet managing director John Guscic said the result demonstrated “a spectacular turnaround” — the company posted $88.4 million in underlying earnings after tabling a $15.9 million loss in 2022’s first half.
In other consumer stock news, Tamalin Morton will become the new face of Adore Beauty next year.
She’ll step into the CEO role in early January, while founders Kate Morris and James Height will act as co-CEOs during the handover.
St Barbara also has a new CEO at the helm — former Western Areas boss Dan Lougher will take up the baton from current executive Craig Jetson in late November.