The ASX had a strong start to the day, climbing from 7,856 as the market opened to 7,879 points by midday, an almost 0.3% jump.
The positivity wasn’t to last however, with the market dipping to 7,850 points by 3pm and recovering only marginally from there, finishing up just 7 points to 7,858.70.
Gains in the sectors were fairly subdued – Utilities gained 1.16%, Industrials, Materials, Real Estate, Healthcare, Financials and Info Tech lifted between 0.55% and 0.23%.
Communication Services and Consumer Discretionary were the main pain points, falling 2.36% and 1.20% respectively.
Telstra Group was one of the main culprits for the decline, with shares slipping 3.78% after a 2.7% dip yesterday.
The telecom giant announced it would cut 2,800 jobs or 9% of its workforce, drawing ire from unions, employees and customers alike. Apparently, shareholders are none too impressed about Telstra’s proposed cost-saving measures either.
For Consumer Discretionary, the main source of bleeding today was Wesfarmers (ASX:WES), down 1.43% today and 3.44% over the last five trading days.
The Australian conglomerate’s shares are likely slipping because of a recent Bunnings controversy – the hardware giant, which is owned by Wesfarmers, was recently accused of abusing its market power especially in dealings with plotted plant suppliers.
The accusations made it to the Senate hearing on supermarket price gouging a couple weeks ago, as Boomaroo Nurseries told the Senate it had decided to stop supplying plants to Bunnings due to alleged strong-arming behaviour.
Overall, the ASX is up 1.35% over the last five trading days, and sits just 0.65% off its 52-week high.
Nvidia poised to release Q1 earnings
Nvidia has made headlines in recent months, boasting a spot in the 'Magnificent Seven' big tech companies and leading the charge in the semiconductor and artificial intelligence industries.
Attention is now focused on the company’s Q1 earnings for this year, which will be revealed after the US market closes tonight.
Capital.com market analysts break down a preview of Nvidia’s earnings report, which may offer insights into the tech giant’s trajectory.
“According to Bloomberg data, analysts expected another quarter of massive top-line and bottom-line growth from Nvidia,” the report reads.
“Revenues are forecast to rise 243.3% in the first quarter, underpinning a 418% rise in earnings per share to $5.65."
Nvidia earnings over three months:
(Source: Bloomberg)
“The company’s financial performance remains predominantly driven by its data centre segment, which is projected to deliver another quarter of explosive sales growth.
“Revenues are expected to crack $21 billion, marking a 390% increase from a year earlier.
“Nvidia’s results have continually defied even the loftiest expectations, with analysts looking to the company for guidance about future performance.
“As base effects kick in following the onset of the artificial intelligence boom, growth is tipped to moderate in Q2, albeit still at a rate that would see revenue and earnings growth double.
“Risks to the outlook include geopolitical tensions between the US and China that could manifest in trade barriers, slowing demand from weaker economic activity, and the levels of cloud spending, particularly from the major tech giants that make up Nvidia’s largest customers.
“Double-ordering remains a concern; however, those concerns are diminishing.
“The analyst community remains broadly constructive on Nvidia shares. Based on Bloomberg surveys, the stock retains a consensus buy rating, with a consensus price target of $1035.”
Analyst consensus rating:
(Source: Bloomberg)
“Nvidia shares are retesting record highs, having risen in response to softer US labour market data and moderating US CPI data that fuelled a repricing of US Federal Reserve rate cut expectations,” the report asserts.
“Major resistance is around Nvidia shares’ all-time highs at $975. Perhaps ominously, price action is carving out an ascending wedge, which, technically speaking, could signal a looming pullback.
“A break of trendline support could spark a retracement in the stock.”
Nvidia share price:
Source: Capital.com
The Five at Five
Toubani Resources hits more wide, high-grade oxide gold up to 57 metres at 2.48 g/t at Kobada
Toubani Resources Ltd (ASX:TRE) has received further promising results from targeted resource definition drilling at the Kobada Gold Project in southern Mali.
Read more
South Harz Potash wraps Ohmgebirge pre-feasibility, picks up Sollstedt mine and releases maiden ore reserve
South Harz Potash Ltd (ASX:SHP) has declared a maiden ore reserve for its flagship Ohmgebirge Potash Development, part of the 100%-owned South Harz Potash Project in central Germany.
Read more
Sunstone Metals reports visible gold in trenches at Limon discovery; drilling next month
The latest results from Sunstone Metals Ltd (ASX:STM) have revealed high-grade visible gold from trench samples at its Limon discovery in southern Ecuador, setting the company up for a “pivotal” drilling program next month to define the extent of the large mineralised system and prepare for a maiden resource.
Read more
Brookside Energy completes Rocket Well surface hole, now drilling intermediate section
Brookside Energy Ltd (ASX:BRK, OTC:RDFEF) has completed drilling of the surface hole at Rocket Well, which is part of the multi-well Flames-Maroons Development Plan (FMDP) in the core of the southern SCOOP Play in Oklahoma's Anadarko Basin, and is drilling the intermediate section.
Read more
Maximus Resources kicks off follow-up drilling at Lefroy Lithium Project
Maximus Resources Ltd (ASX:MXR, OTC:MXRRF) has wasted no time putting drills to ground at the Lefroy Lithium Project in Western Australia, after its joint venture with the Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) was approved by the Australian Foreign Investment Review Board (FIRB).
Read more
On your six
Alkane Resources valued at A$1.01 and potentially A$2.95 per share by Edison as ‘Kaiser takes on the World’
Headed ‘Kaiser takes on the World’, Edison Investment Research Limited has released updated research on Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) that values the gold producer and explorer at A$1.01 per share and potentially A$2.95/share.
Read more
One to watch
Sarytogan Graphite targets industrial markets with high-purity graphite
Sarytogan Graphite Ltd (ASX:SGA) managing director Sean Gregory is back in the Proactive studio with Jonathan Jackson to discuss the expansion of its strategic plan for the Sarytogan Graphite Deposit to include new target markets.
Watch more
Read more on Proactive Investors AU
