Skip to main content

Morning Bell 1 February

Grady Wulff
February 1, 2023

The US market closed higher on Tuesday following the release of upbeat earnings results and encouraging economic data. General Motors shares rose over 8% on Tuesday after reporting quarterly results that surprised markets including earnings per share of $2.12 and revenue of $43.11bn which both well exceeded analysts’ expectations. The Dow Jones rose 1.1%, the S&P500 gained 1.47% to record its best January since 2019, and the Nasdaq ended the day up 1.67% for its best January since 2001.

The Fed’s FOMC meeting ends today and has investors weighing up whether the fed will continue its aggressive rate hike strategy or whether recent favourable economic data will ease the fed’s stance including personal spending in the US falling by 0.2% for the second consecutive month in December, and US CPI showing goods and services prices have dropped for the first time since May 2020 as the inflation rate fell to 6.5% for December, down from 7.1% in November. The expectation is for a 25-basis point rate hike to be announced for the month, which is the lowest since March 2022.

Over in Europe, markets closed Tuesday’s session lower despite eurozone growth figures coming in ahead of estimates with growth of 0.1% in the last quarter of 2022. Investors in the region are now focused on the European Central Bank’s interest rate decision out on Thursday. German retail sales for December showed a surprise fall which paints a mixed picture of economic conditions in the region ahead of the rate decision out tomorrow. Germany’s DAX and the French CAC each closed Tuesday’s session flat, but the FTSE100 in the UK fell 0.17%.

What to watch today:

  • Ahead of the local trading session, the SPI futures are anticipating the ASX to open the midweek session 0.43% higher on the back of the strong session on Wall St on Tuesday.
  • The Aussie dollar is buying US$0.70 US cents, 91.81 Japanese Yen, 56.91 British Pence and NZ$1.09.
  • On the commodities front, oil is up 1.17% at US$78.81/barrel, gold is up 0.34% at US$1929/ounce and iron ore is up 4.42% at US$130/tonne.

Trading Ideas:

  • Bell Potter has increased its price target on Aroa Biosurgery (ASX:ARX) from $1.40 to $1.45 and maintain a buy rating on the healthcare company following the release of the company’s third quarter trading update. For the quarter Aroa reported maintenance of revenue within the guidance range for FY23, and normalised EBITDA is expected to breakeven for FY23. Aroa also announced it has enrolled 138 out of 300 patients for its Myriad Registry. Bell Potter sees key catalysts from the report and Myriad Registry update are expected in the coming months and have increased the price target on Aroa as a result.
  • Trading Central has identified a bullish signal on Endeavour Group (ASX:EDV) following the formation of a pattern over a period of 35-days which is roughly the same amount of time the share price may rise from the close of $6.63 to the range of $6.99 to $7.07 according to standard principles of technical analysis.

Morning Bell 28 March

Sam Kanaan
March 28, 2024

Morning Bell 27 March

Grady Wulff
March 27, 2024

Morning Bell 26 March

Grady Wulff
March 26, 2024

Morning Bell 25 March

Grady Wulff
March 25, 2024

Weekly Wrap 22 March

Sophia Mavridis
March 22, 2024

Morning Bell 22 March

Sam Kanaan
March 22, 2024

Market Insights: As Good as Gold

Grady Wulff
March 21, 2024

Morning Bell 21 March

Sophia Mavridis
March 21, 2024

Morning Bell 20 March

Sam Kanaan
March 20, 2024

Morning Bell 19 March

Sam Kanaan
March 19, 2024

Morning Bell 18 March

Sophia Mavridis
March 18, 2024

Weekly Wrap 15 March

Grady Wulff
March 15, 2024