It’s a downward slide expected this morning for the ASX. ASX 200 futures are trading 91 points lower, down -1.29% as of 8:20 am AEST.
It will reverse yesterday’s performance where the S&P/ASX 200 closed 34 points higher, up 0.47%.
The Index rose for a third consecutive session on a strong lead from Wall Street and Nvidia earnings.
Nvidia sent ASX tech nearly 5% higher.
Despite yesterday’s numbers, a fall today would come as no surprise, as every S&P 500 sector finished in the red as benchmarks tumbled from session highs to close at their worst levels.
According to IG Markets analyst Tony Sycamore we could be in for a torrid time, wth the worst month of the year, September, just around the corner.
“Over the past five years, the ASX200 has recorded an average monthly loss of 2.91% in September. For those who prefer a larger sample size, performance isn't much better, with the ASX200 averaging a decline of 2.29% in September over the past ten years.”
On the earnings front, Wesfarmers (ASX:WES) reported a 4.8% rise in full-year net profit to $2.5 billion.
There was flat earnings growth, but key profit driver Bunnings was bolstered by stronger returns from Kmart, Officeworks and its industrial businesses.
Revenue for the year rose 18.2% to $43.6 billion.
Wesfarmer’s new health division contributed well to revenue sales, with $5.3 billion drawn from its recent takeover of Australian Pharmaceutical Industries (ASX:API).
The company declared a final dividend of $1.03 per share, up from $1, and payable on October 5.
"Wesfarmers’ financial results were underpinned by strong divisional earnings growth of 12.9% for the year, as the group’s operating businesses continued to respond well to trading and market conditions,” managing director Rob Scott said.
Bunnings earnings lifted 1.2% to $2.2 billion. Kmart Group, which includes Target (NYSE:TGT), rose 52.3% to $769 million. WesCEF saw earnings growth of 23.9% to $669 million. Officeworks reported earnings growth of 10.5% to $200 million.
What happened yesterday
Here’s what we saw (source Commsec):
US markets
Fell on Thursday, erasing earlier gains, as US government bond yields rose ahead of US Federal Reserve Chair Jerome Powell's speech at Jackson Hole on Friday.
The megacap technology space came under pressure, with Tesla (NASDAQ:TSLA) shares down 2.9%. Shares of Amazon.com (NASDAQ:AMZN) lost 2.7% and Apple (NASDAQ:AAPL) slid 2.6%, while Netflix (NASDAQ:NFLX) shed 4.8%. Nvidia (+0.1%) trimmed an advance that sent the company at the forefront of the artificial-intelligence race to an all-time high. The company late Wednesday gave a much stronger-than-expected forecast amid demand for its chips. Advanced Micro Devices (NASDAQ:AMD) (-7%) and Intel (NASDAQ:INTC) (-4.1%) both fell. Dollar Tree (NASDAQ:DLTR) shares lost 12.9% after the retailer forecast annual profit below estimates.
- The Dow Jones index fell by 373.5 points or 1.1% after earlier being up 222 points.
- The S&P 500 index lost 1.4% and the Nasdaq index shed 257 points or 1.9%.
European markets
Were mixed on Thursday. Technology stocks were the biggest decliner, down 2.4%, erasing earlier gains fuelled by Nvidia's blowout earnings forecast. The chipmaker's peers ASML Holding (AS:ASML), ASM International and BE Semiconductor all fell between 3.1% and 6.3%. Miners lost 1%, tracking lower metals prices, while a 0.5% rise in financial stocks staved-off a sharper and broader market fall.
- The continent-wide FTSEurofirst 300 index slid 0.4%.
- In London, the UK FTSE 100 index edged higher by 0.2%.
Currencies
Were weaker against the US dollar in European and US trade.
- The Euro fell from US$1.0872 to US$1.0803 and was near US$1.0810 at the US close.
- The Aussie dollar dipped from The Aussie dollar dipped from US64.80 cents to session lows near US64.15 cents at the US close.
- The Japanese yen eased from 144.94 yen per US dollar to JPY145.85 at the US close.
Commodities
Global oil prices edged higher on Thursday, swinging in thin summer trading, as traders weighed increased supplies and an uncertain economic outlook.
- The Brent crude price rose by US15 cents or 0.2% to US$83.36 a barrel.
- The US Nymex crude price lifted US16 cents or 0.2% to US$79.05 a barrel.
Base metal prices slipped on Thursday.
- The copper futures price fell by 0.9% as unease surrounding high interest rates curbing global growth offset optimism about an uptick of demand in China.
- The aluminium futures price also dipped by 0.9%.
- The gold futures price fell by US$1.00 or 0.1% to US$1,947.10 an ounce.
- Spot gold was trading near US$1,916 an ounce at the US close.
- Iron ore futures added US35 cents or 0.3% to US$107.82 a tonne on expectations that Chinese steel mills will lift operating rates ahead of the construction season.
On the small cap front
The S&P/ASX Small Ordinaries (XSO) finished strongly yesterday, up 0.24% to 2,837.20.
It has been a quiet start on the news front, but you can read about the following and more throughout the day.
- Nova Minerals Ltd (ASX:NVA, OTCQB:NVAAF) advised that its first 3D interactive geoscientific model and 360 degree photo site tour of the Estelle Gold Project, situated on the Estelle Gold Trend in Alaska’s prolific Tintina Gold Belt, has now been released.
- Alkane Resources Ltd (ASX:ALK, OTC:ALKEF) released further results from its drilling program at the Northern Molong Porphyry Project in Central New South Wales. The company believes this system has the potential to be a large, tier one gold-copper project.
- Brightstar Resources Ltd (ASX:BTR) has started mining under the joint venture with BML Ventures Pty Ltd, with the first blast occurring on the afternoon of Monday 21 August 2023 at the Selkirk Open Pit cutback.
- Yandal Resources Ltd (ASX:YRL) advised that following a cultural heritage survey by members of the Maduwongga Native Title Claimant Group and the Kakarra Part A Native Title Claimant Group, it has received heritage approval to undertake exploration activities on tenements at the southern end of the Gordons Project, 30km north-east of Kalgoorlie.
- Auric Mining Ltd (ASX:AWJ) has produced and sold 1,721 ounces of gold from its first toll milling campaign.