Australian shares experienced a decline at midday, following a downward trend in US markets. The benchmark S&P/ASX 200 Index fell by 0.1%, or 4.1 points, to 7967. This dip was influenced by losses in the ASX energy sector, reflecting the 0.1% drop in both the Dow and Nasdaq, and a 0.2% decline in the S&P 500.
Tesla’s second-quarter profit missed Wall Street estimates, continuing a difficult year marked by slower sales and layoffs. The electric vehicle manufacturer reported adjusted earnings of 52 cents per share, falling short of the expected 60 cents. This marks the fourth consecutive quarter of missed earnings expectations for Tesla (NASDAQ:TSLA).
Alphabet (NASDAQ:GOOGL), the parent company of Google, reported slightly better-than-expected earnings per share of $1.89 and revenue of $84.7 billion. Despite surpassing revenue estimates, Alphabet's shares fell in after-hours trading, reflecting cautious market sentiment.
Sector Performance on the ASX
On the ASX, the energy sector faced the most significant declines, despite a rebound in oil prices. Brent Crude rose above $81 per barrel after a previous decline. Key energy stocks such as Woodside Energy (ASX:WDS), Viva Energy, and Beach Energy (ASX:BPT) saw losses of 1%, 1.1%, and 2.5%, respectively. Miners also faced lower trading levels, with BHP (ASX:ASX:BHP) decreasing by 0.3% amid iron ore prices hovering around $100 per tonne.
Stocks in Focus
- Pilbara Minerals (ASX:PLS): Shares edged down by 0.3% despite a 58% increase in revenue to $305 million for the June quarter.
- Flight Centre (ASX:ASX:FLT): The travel company’s shares fell 4.2% following a revised profit before tax guidance of $316 million to $324 million for FY24, excluding $4 million in losses from the Discova Central Americas business closure.
- Perpetual (ASX:PPT): Shares dropped 1.2% as assets under management fell to $215 billion from $227.4 billion, impacted by institutional client redemptions.
- Platinum Capital (ASX:PMC): Shares rose 3.9% after announcing the conversion of its Platinum International Fund from a closed-end to an open-ended fund.
- Telix Pharmaceuticals (ASX:TLX): The biotech company’s shares plummeted 5.5% after raising $650 million through convertible debt at an interest rate of 2.375%, while abandoning plans to list on the Nasdaq.