Macro Update

A daily bulletin featuring an overnight sharemarket summary and economic news from across the globe, broadcast in the Morgans studio before the Australian stock market opens each morning.

Morgans AM: Your pre-market briefing

Michael Knox, Morgans Chief Economist

Morgans Business Breakfasts

Morgans Conversations is a collection of short interviews with company executives.

Morgans Conversations

Morgans’ power sector analyst, Max Vickerson, speaks with Simon Kidston (Executive Director) and James Harding (CEO) of Genex Power. They discuss the major construction milestones for Kidston Pumped Hydro, the Bouldercombe Battery Project, and M&A trends in the renewable energy sector.

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Morgans Conversations: Genex Power(ASX:GNX): Simon Kidston ED and James Harding CEO

Morgans Analyst Nick Harris talks with Sovereign Cloud Chair, Cathie Reid & MD, Phil Dawson.

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#Cloudstorage #Cloud #Data

Morgans Conversations: Cathie Reid, Chair & Phil Dawson, MD of Sovereign Cloud (ASX:SOV)

Morgans Adviser Chris Titley chats to Sam Budiselik , MD of ASX listed Cash Converters. Cash Converters is known throughout Australia, but many may not know their involvement in lending, and how they are assisting customers in Australia and beyond. Sam talks about the history of the company, how they navigated through 2020-21, and why he is excited about the future.

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Morgans Conversations: Sam Budiselik, Managing Director of Cash Converters (ASX:CCV)

Strategist Andrew Tang unpacks the structural investment thematic of this generation. Speak to your Morgans adviser for more ideas on exposure to companies and funds leading the way to Net Zero.

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#Netzero #Investment #Funds #Stocks #ETF

Dissecting the investment required to achieve Net Zero emissions: Andrew Tang Equity Strategist

GARDA Property Group (ASX:GDF) is a real estate investor, developer, and manager with investments along the eastern seaboard of Australia, from Cairns to Melbourne.

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#Realestate #Industrialreal #Propertymanagement

Morgans Business Breakfast: Matthew Madsen, Executive Chairman of Garda Property Group (ASX:GDF)

Thank you to Jane Hunter, Chief Executive Officer of Tritium, for presenting at our final Business Breakfast for the year. Founded in 2001, Tritium designs and manufactures proprietary hardware and software to create advanced and reliable DC fast chargers for electric vehicles. The company will be listed on the NASDAQ in the first quarter of 2022. Find out more about this innovative company: https://tritiumcharging.com/about/

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Morgans Business Breakfast: Jane Hunter, Chief Executive Office of Tritium Pty Ltd

This episode of the Morgans Conversations was with Danny Lessem, CEO and Co-founder of ASX listed Elmo.  Danny goes into the history of Elmo, the progress they have made since the peak of Covid-19, the shifting workforce dynamics as well as the recent result. The company is forecasting >$100m of ARR for the full year – a milestone never achieved before by the company.

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Morgans Conversations: Danny Lessem, Co-Founder and CEO of ELMO

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Morgans Business Breakfast: Keith Thornton, Chief Executive Officer of Eagers Automotive

A dramatic escalation of geopolitical risks, commodity prices, the Fed rate hike expectations, and cautious market positioning provides investors with a broad scope of potential outcomes over the next few months.

Asset Allocation Blog: https://morgans.com.au/Blog/2022/March/Australia-Strategy-Asset-Allocation-Update-Q2-2022

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Asset Allocation Update, 2Q 2022: Andrew Tang, Equity Strategist

In today’s Morgans Conversations, adviser Chris Titley chats with Alex Waislitz from Thorney Opportunities (ASX Code:TOP). Alex talks about the existing portfolio, the sectors they operate in and the composition of the portfolio and why they are so enthused. Alex also gives his views on the overall market. 

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Morgans Conversations: Alex Waislitz, CEO of Thorney Opportunities (ASX:TOP)

US equity markets opened the new month and quarter with modest gains on Friday (1 April), with Wall Street looking to bounce back from its first negative quarter in two years - Dow up +140-points or +0.40%, recovering from an earlier session decline of ~100-points. The broader S&P500 added +0.34%, with the more defensive Real Estate (up +2.02%), Utilities (+1.45%) and Consumer Staples (+1.25%) sectors leading eight of the eleven primary sectors higher. Industrials (down -0.70%), Financials (-0.21%) and Information Technology (-0.17%) were the three primary sectors to close in the red. The Nasdaq +0.29%. Apple Inc (down -0.17%) was removed from JP Morgan’s Analyst Focus List, with the investment bank’s analysts citing concerns around a moderation in consumer spending. Apple climbed for 11-days from 14 March 14 until last Wednesday (30 March) - its longest winning streak since 2003. Chipmaker Qualcomm Inc (down -3.81%) was also removed from the focus list. Chip stocks more broadly were under fresh pressure, with Intel Corp down -2.93% and Advanced Micro Devices Inc -1.05%. Tesla Inc (up +0.65%) on Saturday (2 April)  reported first quarter deliveries of ~310K vehicles, in-line with analysts’ expectations despite soaring gas prices, fresh COVID restrictions and supply chain challenges. It marked a quarterly record for the electric vehicle maker, up from ~309K vehicles delivered in the fourth quarter of 2021 and ~185K vehicles delivered in the first quarter of 2021.  The small capitalisation Russell 2000 rose +1.01%.  U.S.-listed Chinese stocks rallied on Friday (1 April) following a report that authorities in Beijing were preparing to meet a key demand of U.S. regulators, a move that would remove a cloud of uncertainty from companies like Alibaba Group Holding Ltd (up +1.29%), DiDI Global Inc (+12.80%), JD.com Inc (+2.11%) and NIO (+4.18%). The Chinese Securities Regulatory Commission and other regulators are drafting a new framework that would allow most Chinese companies to keep their U.S. listings, Bloomberg reported, citing anonymous sources. Beijing is set to give U.S. regulators the auditing reports of most of the 200-plus Chinese companies listed in New York, the report said, but was preparing to accept that some state-owned firms will be delisted.

Morgans AM: Monday, 4 April 2022

US equity markets were strong in overnights trade as positive employment data and a rebound in technology stocks outweighed geo-political developments - The Dow up +103-points or +0.20%. The broader S&P500 added +0.81%. While the Nasdaq gained +1.9% to lead the indexes. A jump in Consumer Discretionary (+2.3%), Communication Services (+2.3%), Information Technology (+1.91%) & Energy (+0.7%) led 8 of the 11 S&P500 sectors higher. Twitter shares surged more than 27% following news that Elon Musk purchased a +9.2% passive stake in the company. Tesla’s stock also rose +5.6% on the back of its latest quarterly electric vehicle delivery figures, which came in above the year-earlier period. Other technology companies including Apple, Amazon, Alphabet and Nvidia were also up more than +2% after what was a weak March quarter for those companies. US-listed Chinese technology stocks, including Alibaba and JD.com, also rallied on optimism that they could avoid being delisted from US markets. Meanwhile, shares of Starbucks dipped +3.7% after the coffee chain suspended its share buyback program. The small capitalisation Russell 2000 rose +0.21%.

Morgans AM: Tuesday, 5 April 2022

US equity markets saw a mixed start, but soon turned lower across the board following remarks by the Fed Governor Lael Brainard, saying the Fed will “continue tightening monetary policy methodically through a series of interest rate increases and by starting to reduce the balance sheet at a rapid pace as soon as our May meeting,” This saw - Dow down -280 points or +0.80%. The broader S&P500 -1.26%, with Consumer Discretionary (-2.35%), and Information Technology (-2.19) leading the way down. Spirit Airlines (+22.37%) surged overnight after a report that JetBlue Airways has made a bid for budget carrier. This comes less than two months after Spirit and Frontier agreed to merge into a discount airline behemoth. The Nasdaq lead the losses falling -2.26%. Twitter (+2.00%) remained in the spotlight for a second day after the company named Elon Musk to its board of directors. Expectations of quicker interest rate hikes also dulled high-growth stocks Tesla (-4.73%), Paypal (-3.45%), and Amazon (2.6%). The small capitalisation Russell 2000 -2.36%.

Morgans AM: Wednesday, 6 April 2022

How US budget deficits have driven the Australian commodities boom.

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Will the Commodities Boom ever rest?: Michael Knox, Morgans Chief Economist

US equity markets retreated on Friday (8 April) as investors braced for tighter monetary policy - Dow up +138-points or +0.40% . The broader S&P500 eased -0.27%, with Information Technology (down -1.49%) the key index drag. Energy (up +2.76%) sat atop the primary sector leaderboard on Friday (8 April). The Nasdaq shed -1.34%. The small capitalisation Russell 2000 fell -0.76%. US equity and bond markets are closed on Friday (15 April) for the Good Friday holiday.

Morgans AM: Monday, 11 April 2022

The Fed intends to Sell $US720 billion of Treasury bonds and  $US420 billion of Mortgage-backed securities per year, to force up US long-term yields and slow the US Economy.

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Powerful Fed Tools will rein in US Inflation: Michael Knox, Morgans Chief Economist

US equity markets settled with modest gains after a choppy session as investors weighed the latest inflation figures - Dow eased -88-points or -0.26% after climbing as much as +362 points earlier in the session. The broader S&P500 lost -0.34%, unwinding an earlier gain of as much as +1.30%. Financials (down -1.07%) led seven of the eleven primary sectors lower. Energy returned to the top of the primary sector leaderboard with a +1.72% gain, with Occidental Petroleum Corp up +2.11% and Chevron Corp +2.08%.  The Nasdaq slipped -0.29%, having been up as much as +2.04% at its session peak. The small capitalisation Russell 2000 added +0.33%.

Morgans AM: Wednesday, 13 April 2022

US equity markets rallied and settled near their session highs - Dow up +344-points or +1.01% . The broader S&P500 gained +1.12%, with Consumer Discretionary (up +2.51%) and Information Technology (+1.59%) leading nine of the eleven primary sectors higher. Utilities (down -0.17%) and Financials (-0.08%) were the only primary sectors to close in the red.  Airlines got a boost from Delta Air Lines’ solid quarterly result, with American Airlines Group Inc up +10.62% and Southwest Airlines Co +7.54%. Costco Wholesale Corp (up +1.67%) announced after the closing bell that it had approved a quarterly payout of 90 cents a share, or US$3.60 a year, up from 79 cents a quarter, or US$3.16 a year. The Nasdaq +2.03%, with chipmakers rebounding. Nvidia Corp rose +3.25%, Advanced Micro Devices Inc +2.78% and Qualcomm Inc +3.24%.  PayPal Inc dropped -2.85% following an announcement from Walmart Inc (on Tuesday (12 April) that it had hired PayPal executive John Rainey as its new chief financial officer (CFO). The small capitalisation Russell 2000 gained +1.92%.  Gap Inc rose +8.23% after a report from Activist Insight speculating the clothing retailer could be a potential activist target.

Morgans AM: Thursday, 14 April 2022

View the full list of Best Ideas here: https://morgans.com.au/Blog/2022/April/Best-Ideas-April-2022

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Morgans Best Ideas: April 2022

US equity markets retreated for a second straight session as trading resumed following the Easter break, relinquishing gains in the final hour of the session as the first quarter earnings season prepared to move into full swing - Dow eased -40-points or -0.11% . The broader S&P500 dipped -0.02% despite a +1.51% rally for the Energy sector. Healthcare (down -1.12%) and Consumer Staples (-0.81%) led six of the eleven primary sectors lower. The Nasdaq slipped -0.14%. Twitter Inc gained +7.48% to US$48.45 after Elon Musk last Thursday (15 April) offered to buy the social media company for US$54.20 a share last. Twitter adopted a limited duration shareholder rights plan, often called a “poison pill,” a day after Mr Musk’s US$43B offer. Under the new structure, if any person or group acquires beneficial ownership of at least 15% of Twitter’s outstanding common stock without the board’s approval, other shareholders will be allowed to purchase additional shares at a discount. The plan is set to expire on 14 April, 2023. The small capitalisation Russell 2000 lost -0.74%.

Morgans AM: Tuesday, 19 April 2022

We show how to examine the US yield curve to find out when recession is near.

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Is the US heading for recession? | Michael Knox, Morgans Chief Economist

US equity markets retreated, selling off in the afternoon session after Federal Reserve Chairman Jerome Powell added his support for moving faster on raising interest rates to cool inflation, including through a potential 50 basis point hike in May - Dow down -368-points or -1.05%, recording an intra-day swing of more than >700-points. The broader S&P500 fell -1.48%, with the Energy sector (down -3.10%) leading all eleven primary sectors lower. Tesla Inc advanced +3.23% after the electric vehicle maker posted better-than-forecast earnings after the close pf the previous session, aided byprice hikes. The Nasdaq shed -2.07%, unwinding an earlier session rally of as much as +1.9%. Netflix Inc fell -3.52%, extending the previous session’s -35.12% slump after the streaming giant reported a net loss of -200K paid subscribers in the first quarter after the close of Tuesday’s (19 April) session. The small capitalisation Russell 2000 lost 2.29%.  Gap Inc fell over >11% in the extended session trading after the clothing retailer said Old Navy Chief Executive Nancy Green would be leaving the company by the end of the week and that it expects a larger-than-expected sales declines for the fiscal first quarter because of “macro-economic dynamics as well as the execution challenges at the Old Navy brand.” Gap said it now expects first-quarter sales to decline in the “low to mid-teens year over year,” compared with a previously forecast decline of “mid to high single-digit year over year.”

Morgans AM: Friday, 22 April 2022

US equity markets logged modest gains after an earlier rally fizzled and with investors digesting another busy night on the corporate earnings calendar - Dow up +62-points or +0.19%, paring an earlier rally of as much as .  The broader S&P500 added +0.21% to 4,183.96. A close below 4,168.44 would see the index enter correction territory (defined as a pullback of at least 10% - but not more than 20% - from a most recent peak). The S&P 500 previously suffered a correction on 22 February, when it closed at 4,304.76, down -10.25% from its early January record close. Energy (up +1.48%), Materials (+1.48%) and Information Technology (+1.36%) all rose over >1% to lead five of the eleven primary sectors higher. Communication Services (down -2.62%) was the worst performing primary sector overnight. The Nasdaq dipped -0.01% to 12,488.93, settling at its lowest level of 2022 to date.   The small capitalisation Russell 2000 down -0.34%.

Morgans AM: Thursday, 28 April 2022

We update our models of US and Australian equities for the selloff in the US and Australian bonds. 

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Is the ASX 200 a better bet than the S&P 500? | Michael Knox, Morgans Chief Economist

US equity markets showed solid gains across the board last night- Dow up +614-points or +1.85%. The broader S&P500 +2.47%. while the Nasdaq +3.06%. The small capitalisation Russell 2000 +1.80%. Information Technology (+4.04%), Communication Services (+3.88%) and Energy (+3.13%) led the gains, as all primary sectors ended in the green. The Technology sector was helped by a +17.5% rise in Meta (formally Facebook), after the company said it had added more users than expected in the first quarter. Shares were down -48% on the year heading into the results. Qualcomm gained +9.7% on the back of strong earnings, while PayPal rose +11.5% despite issuing weak guidance for the second quarter. On the contrary, Teladoc shares plunged about +40.2% after the company reported weaker-than-expected results.

Morgans AM: Friday, 29 April 2022

US equity markets recorded their steepest one day losses since 2020 to close out a tough month - Dow dropped -939-points or -2.77% . The broader S&P500 slumped -3.63% to 4,131.93, , settling with its largest one-day decline since June 2020 and lowest finish since 19 May, 2021. All 11 primary sectors fell sharply on Friday (29 April), with Consumer Discretionary (-5.92%), Real Estate (-4.90%)  and Information Technology (-4.14%) posting the biggest losses.  The latest fall left the S&P500 in official correction territory, down -10.8% from its most recent closing peak (4,631.60) on 29 March. The S&P 500 fell back into correction just 22 trading days after leaving the previous one, its fastest re-entry since November 2008, during the turmoil of the 2007-2009 financial crisis, when the index fell back into correction only 7 trading days after leaving one. The Nasdaq tumbled -4.17%, marking the technology centric index’s largest single session decline since September 2020. Amazon.com Inc dropped -14.05% to a near 2-year low and logging its steepest one-day drop since 2006 after the e-commerce giant delivered a disappointing first quarter result and outlook after the closing bell of last Thursday’s (28 April) session. The Nasdaq Composite sits in bear market territory, 23.9% below its most recent intraday high. Both the S&P500 and Nasdaq settled at their lowest levels for 2022 to date.  The small capitalisation Russell 2000 lost -2.81%.

Morgans AM: Monday, 2 May 2022

US equity markets rallied in the final hour of trading to start May on a positive footing – Dow settled +84-points or +0.26% higher, recovering from an earlier drop of as much as -527 points. Boeing Co (down -0.15% at US$148.61), paring an earlier decline of more than >3% that saw the stock touch its lowest intraday level (US$143.38) since 2 November, 2020. The aircraft manufacturer has logged a nine session losing streak that has seen the stock lose more than >22% following a weaker-than-expected first quarter result last week.  The broader S&P500 rose +0.57% after hitting a fresh 2022 low earlier in the session. Communication Services (up +2.42%), Information Technology (+1.56%), Energy (+1.37%) and Consumer Discretionary (+1.36%) all advanced over >1% to lead six of the eleven primary sectors higher. Real Estate (down -2.55%) was the worst performing sector overnight. The Nasdaq rebounded +1.63%, clawing back some of the previous session’s -4.17% drop. Apple Inc added +0.20% despite European Union (EU) antitrust authorities telling the company that they have formed a preliminary view that it has abused its dominant position in markets for mobile wallets. The small capitalisation Russell 2000 gained +1.01%.

Morgans AM: Tuesday, 3 May 2022

US equity markets settled with modest gains as investors braced for the Federal Reserve’s latest monetary policy pronouncements tomorrow morning - Dow up +67-points or +0.20% . The broader S&P500 +0.48%, with the Energy sector (up +2.87%) leading nine of the eleven primary sectors higher. Exxon Mobil Corp gained +2.%. Consumer Discretionary (down -0.29%) and Consumer Staples (-0.24%) were the only primary sectors to close in the red overnight.  The Nasdaq +0.21%. The small capitalisation Russell 2000 +0.85%.

Morgans AM: Wednesday, 4 May 2022

The RBA forecast for core inflation has risen  to 4.75%  in 2022.

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Why the RBA cash rate may rise to 3.7%: Michael Knox, Morgans Chief Economist

US equity markets soared after Federal Reserve Chair Jerome Powell said larger +75-basis point interest rate hikes were not in play - Dow rallied +932-points or +2.81%, booking its best daily percentage gain since 9 November, 2020, according to Dow Jones Market Data and with all 30 index constituents advancing. Stocks seen as economic bellwethers performed well, with Home Depot Inc and Caterpillar Inc rising +3.39% and +4.20%, respectively. Bank stocks also gained ground, with Goldman Sachs Group Inc up +3.0% and JPMorgan Chase & Co +3.3%. The broader S&P500 +2.99%, logging its best daily percentage climbs since 18 May, 2020. Energy (up +4.11%) sat atop the primary sector leaderboard for a second consecutive session to lead all eleven key sectors higher, with Chevron Corp rising +3.14% and Exxon Mobil Corp +3.98%. Communication Services (+3.68%), Information Technology (+3.51%), Materials (+3.24%) and Financials (+3.02%) all climbed over >3%. The Nasdaq jumped +3.19%, the technology-centric index’s best daily performance since 16 March. Apple Inc (up +4.1%) and Google-parent Alphabet Inc (+3.76%) gaining more than >3.5% each. Advanced Micro Devices (AMD) Inc rallied +9.1% after the chip maker comfortably topped US$5B in quarterly revenue for the first time and lifted their full year outlook after the close of the previous session. The small capitalisation Russell 2000 gained +2.69%.  Lyft Inc tumbled -29.91% after the ridesharing company provided weak guidance for the current quarter as it expects to invest in driver supply. Rival Uber Technologies Inc dropped -4.65%.

Morgans AM: Thursday, 5 May 2022

Morgans Business Breakfast: Simon Finnis, Managing Director of KGL Resources

US equity markets closed out a tumultuous week in the red, clinching weekly declines for all three benchmark indices - Dow fell -99-points or -0.30% . The broader S&P500 -0.57%. The Nasdaq -1.4%. Amazon.com Inc fell -1.4%, while Microsoft Corp -0.94% and Nvidia Corp -0.90%. The small capitalisation Russell 2000 -1.69%.

Morgans AM: Monday, 9 May 2022

US equity markets extended their recent sell-off, with technology stocks under particular pressure once again - Dow dropped -654-points or -1.99%. Walt Disney Company fell -3% to be trading more than >3% below where it was trading 5-years ago. The broader S&P500 slumped -3.2%, sliding below <4,000 to its lowest level since March 2021. The Energy sector tumbled -8.3% to lead ten of the eleven primary sectors lower. Consumer Staples eked out a +0.05% rise to be the only primary sector to advance. Tesla Inc fell -% The Nasdaq tumbled -4.29%, with Meta Platforms Inc and Google parent Alphabet Inc down -3.71% and -2.23%. Amazon.com Inc fell -5.21% and joined a host of other names in the Nasdaq 100 that are now trading below pre-pandemic highs. The technology-centric index is down -25.71% year-to-date, comfortably its worst start to a year on record. The small capitalisation Russell 2000 shed -4.21%. Rivian Automotive Inc shed 20.88% ahead of its first quarter result on Wednesday night AEST (11 May) amid reports that, after the post-initial public offering (IPO) period has passed, Ford Motor Co (down -5.91%) and others will look to divest some of their holding in the electric vehicle maker.

Morgans AM: Tuesday, 10 May 2022

Morgans Equity Strategist, Andrew Tang, explores the relationship between rising interest rates and equity market performance. Should investors fear the worse or is this a another buying opportunity?

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Equity market sensitivity to rising interest rates: Andrew Tang, Equity Strategist

US equity markets steadied ahead of the release of key inflation data tonight AEST and with technology stocks regaining some composure after steep declines - Dow eased -84-points or -0.26%, booking a fourth consecutive session of losses (to be down -5.67%, its largest four-day percentage decline since the stretch ending 29 October, 2020). The index traded in an ~850-point range overnight, climbing as much as 500-points and sliding as much as -350-points. International Business Machines (IBM) (down -3.95%), Home Depot Inc (-1.98%), 3M Co (-2.14%) and JPMorgan Chase & Co (-2.44%) were among notable drags on the 30-stock index. The broader S&P500 added +0.25% to 4,001.05 after sliding below <4,000 to its lowest level since March 2021 in the previous session. Information Technology rose +1.58% to lead four of the eleven primary sectors higher. Real Estate fell -2.28% to be the worst primary sector overnight. Pfizer Inc (up +1.75%) announced it has entered a definitive agreement to acquire Biohaven Pharmaceutical Holding Company Ltd (+68.39%) for US$11.6B in cash. Tesla Inc fell -%, with Reuters reporting that electric vehicle maker had suspended production at its Shanghai plant, this time due to supply problems. The Nasdaq gained +0.98%. The small capitalisation Russell 2000 dipped -0.02%.

Morgans AM: Wednesday, 11 May 2022

Movements in the Australian cash rate have been following the “effective FED funds rate“.

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Watch the RBA Copy the FED: Michael Knox, Morgans Chief Economist

US equity markets retreated as investors assessed the latest inflation report - Dow down -327-points or -1.02%, unwinding an earlier rally of ~423-points. Visa Inc (up +1.62%) and Merck & Co Inc (+1.57%). The index’s -6.5% decline over the past five trading session marks its biggest such decline since 15 June, 2020, according to Dow Jones Market Data. The broader S&P500 lost -1.65% to 3,935.18, touching an intra-session 52-week low (3,928.52) and is now down more than >18% from its 52-week high (and down over >17% calendar year-to-date). Consumer Discretionary (down -3.57%) and Information Technology (-3.30%) both declined over >3% to lead eight of the eleven primary sectors lower. The Energy (up +1.37%) sector helped to limit declines in the Dow and S&P500. The Nasdaq dropped -3.18%. Apple Inc shed -5.18% (dragging its market capitalisation down to ~US$2.37 trillion) and was usurped as the world’s largest company by capitalisation by oil giant Saudi Aramco (~US$2.43 trillion). Apple passed Saudi Aramco to become the world’s most valuable publicly traded company in 2020. Netflix Inc closed -6.4% lower in the wake of a New York Times report detailing plans by the streaming giant to launch an ad-supported pricing tier and crack down on password sharing. Meta Platforms Inc fell -4.51% and Microsoft Corp -3.32%.  The small capitalisation Russell 2000 fell -2.48%. Coinbase Global Inc slumped -26.4% after the crypto exchange reported first-quarter revenue (US$1.17B) below expectations (US$1.48B) after the close of the previous session, impacted by lower crypto asset prices and market volatility.

Morgans AM: Thursday, 12 May 2022

US equity markets rallied to cap another volatile week that saw the S&P500 flirt with official bear market territory - Dow up +466-points or +1.47%, with Nike Inc (up +4.74%) and Salesforce Inc (+4.05%) among the leading index performers. American Express (+3.58%) and Boeing Co (+3.30%) both added more than >3% each. The broader S&P500 +2.39% (to 4,023.89) to reclaim the 4,000 level. Consumer Discretionary (up +4.10%), Information Technology (+3.44%) and Energy (+3.38%) all rallied over >3% to lead all eleven primary sectors higher. The technology-centric Nasdaq rebounded +3.82%, booking its biggest daily percentage gain since 4 November, 2020, according to Dow Jones Market Data. Meta Platforms Inc and Alphabet Inc gained +3.86% and +2.96%, respectively. Twitter Inc dropped -9.7% after Elon Musk tweeted that the deal to buy the social-media company was “temporarily on hold.” Mr Musk, the chief executive of electric vehicle maker Tesla Inc (up +%) said the hold on the deal is “pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.” In a subsequent tweet, Mr Musk said he was “Still committed to the acquisition.” The small capitalisation Russell 2000 jumped +3.06%.

Morgans AM: Monday, 16 May 2022

We discuss the key pre-election promises and what a Labor victory means for investors. 

Read more election coverage here: https://morgans.com.au/Blog/2022/May/Federal-Election-2022-Change-of-Government-first-impressions

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#equities #federalelection #asx

Federal Election 2022 – Equity Market Implications: Andrew Tang, Equity Strategist

Morgans Business Breakfast: Bill Richmond, Chief Executive Office of BlueBet (ASX:BBT)

US equity markets closed out the month on a weaker footing - Dow down -223-points or -0.67% , snapping a six session winning streak.  The broader S&P500 -0.63%. After outperforming earlier in the session, the Energy sector settled -1.65% lower to lead nine of the eleven primary sectors lower. Consumer Discretionary (up +0.76%) and Communication Services (+0.40%) were the only primary sectors to advance overnight. The Nasdaq -0.41%. Both the S&P500 and Nasdaq snapped a three session winning streak. The small capitalisation Russell 2000 lost -1.26%.

Morgans AM: Wednesday, 1 June 2022

Michael shows how to use the Chicago Fed  National Activity Indicator at  chicagofed.org to see if a US recession is near.

Chicago Fed National Activity Index: https://www.chicagofed.org/research/data/cfnai/current-data

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How to see a US Recession??? | Michael Knox, Morgans Chief Economist

The Australian cash rate is rising with the US effective fed funds rate as rates “normalise” to remove  extraordinary pandemic stimulus.

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Why The RBA Cash Rate Must Rise: Michael Knox, Morgans Chief Economist

The Federal Reserve hikes rates by 75 basis points and tells us they saved the US economy from recession.

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The FED Shock Rate Hike: Michael Knox, Morgans Chief Economist

Tom Sartor, Equity Strategist at Morgans takes at look at the current volatile market, and what that means for commodities.

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Commodity Snapshot: Tom Sartor, Equity Strategist

AUD - buying ~69.51 US cents. The Reserve Bank of Australia’s (RBA) release the minutes from its June monetary policy meeting that saw the central bank hike rates +50-basis points, while RBA Governor Philip is scheduled to deliver a speech titled “Economic Outlook and Monetary Policy”. The Bank of Japan (BoJ) release the minutes of their June monetary policy meeting that saw the central bank stand firm on its ultra-loose monetary policy prescription last Friday (17 June). Elsewhere, there were reports this morning that Qantas Airways has lifted the passenger mask mandate for non-stop, outbound flights to the US and UK.

Morgans AM: Tuesday, 21 June 2022

The ASX 200 is the most undervalued it's been since 2012 and 2013. It needs time to base. A strong rally is likely by the end of 2022.

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Why the ASX 200 is worth 7100 points: Michael Knox, Morgans Chief Economist

US equity markets resumed trading following the holiday long weekend on the front foot, with all three benchmark indices rallying over >2% following a strong session for both value and growth stocks as risk assets bounced back - Dow gained +641-points or +2.15%, The broader S&P500 rose +2.45% to log its best single session advance month-to-date and after logging its worst weekly decline since 2020 last week, with the Energy sector (up +5.14%) returning to the top of the primary sector leaderboard and leading all eleven primary sectors at least +1.5% higher. Exxon Mobil Corp gained +6.22%, buoyed by an upgrade to “Outperform” from “Neutral” from Credit Suisse.  Last night’s session marked the first time since May that both S&P 500 Value and S&P 500 Growth indexes gained more than >2% on the same day, and only the third time since 2020 that both indexes rallied as much.  441 stocks in the S&P500 advanced. Tesla Inc rallied +9.35% after Chief Executive Officer (CEO) Elon Musk told Bloomberg that job cuts at the company would result in a reduction of as much as 3.5% of the electric vehicle maker’s total head count. Twitter Inc rose +3.07% after Mr Musk told an audience at the Qatar Economic Forum in Doha that he would be “driving the product” at Twitter, while reiterating that he does not necessarily want to serve as CEO after he completes the acquisition of the social media company.  Kellogg Co rose +1.95% after the food company announced a plan to split into three businesses - "Global Snacking Co", which will represent ~US$11.4B in sales and include international cereal and noodles, North American frozen breakfast, as well as snacks; "North America Cereal Co", which represents ~US$2.4B in sales and includes U.S., Canada, and Caribbean cereals; and "Plant Co", a business of  ~US$340M anchored by the MorningStar Farms brand and focused on plant-based foods. The Nasdaq rallied +2.51%, with Goggle-parent Alphabet Inc rising +3.85%, Apple Inc +3.28% and Amazon.com Inc +2.32%. Chipmakers also traded strongly, with Advanced Micro Devices Inc climbing +2.72%. The small capitalisation Russell 2000 rose +1.70%.

Morgans AM: Wednesday, 22 June 2022

US equity markets logged modest losses, unwinding earlier gains in the final hour of trading as investors digested Federal Reserve Chair Jerome Powell’s latest congressional testimony  - Dow eased -47-points or 0.15%. Dow Inc sank -4.75% to US$52.34 and its lowest levels since early 2021 after analysts at Credit Suisse cut their rating on the specialty chemicals company to “Underperform” (reducing the target price to US$49), citing concerns that the business could continue to struggle as supply chains normalise.  The broader S&P500 slipped -0.13%, with Energy (down (-4.19%) leading seven of the eleven primary sectors lower. Real Estate (up +1.55%) and Health Care (+1.42%) were the best performing primary sectors.  The Fed release its latest bank stress test results tonight AEST. The Nasdaq -0.15%. The small capitalisation Russell 2000 lost -0.22%.

Morgans AM: Thursday 23 June 2022

US equity markets advanced after Federal Reserve Chairman Jerome Powell concluded a second day of congressional testimony with a vow to battle inflation, even if it risks a recession - Dow up +194-points or +0.64% and settling near its session highs at 30,677.36. The broader S&P500 +0.95%, with more defensive sectors like Utilities (up +2.35%), Health Care (+2.22%) and Real Estate (+2.01%) atop the primary sector leaderboard for a second consecutive session. Energy (down -3.74%) was the worst performing primary sector for a second day running.  Occidental Petroleum Corp added +0.57% as Berkshire Hathaway Chief Executive Officer (CEO) Warren Buffett increased his firm’s stake in the oil-and-gas company by 9.6M shares or US$529M in June, according to regulatory filings cited by The Wall Street Journal, lifting the holding to ~16%.  The Nasdaq +1.62%. The small capitalisation Russell 2000 rose +1.27%.

Morgans AM: Friday, 24 June 2022

US equity markets rebounded strongly, with all three benchmark indices snapping three-week losing streaks as investors reassessed the expected path of Federal Reserve interest-rate hikes - Dow rallied +823-points or +2.68% to 31,500.68, climbing back above >31,000 and recording its largest daily percentage gain since 4 May. FedEx Corp gained +7.16% after the global delivery and logistics company reported fiscal fourth-quarter earnings that matched Wall Street’s expectations and issued guidance for the fiscal year that topped projections after the close of last Thursday’s (23 June session. The broader S&P500 gained +3.06%, logging its best daily percentage gain since 18 May, 2020. Materials (up +3.98%), Communication Services (+3.94%), Financials (+3.80%), Consumer Discretionary (+3.74%) and Information Technology (+3.57%) all rallying over >3.5% and leading all eleven primary sectors higher. Shares in the biggest U.S. banks climbed on Friday (24 June) a day after it was confirmed they had all passed the Federal Reserve's annual health check. JPMorgan Chase & Co rose +2.98%, Citigroup Inc +3.26% and Wells Fargo & Co +7.55.  The Nasdaq jumped +3.34%, the technology-centric indice’s largest daily percentage gain since 13 May. The small capitalisation Russell 2000 rallied +3.16%.

Morgans AM: Monday, 27 June 2022

Morgans Research Analyst Max Vickerson provides an overview of the business fundamentals for Tesla.

*Disclaimer: Morgans does not formally cover Tesla and does not offer an investment rating. This presentation is for informative purposes only.*

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Investment Analysis: An Introduction to Tesla (TSLA:NAS)

US equity markets settled with modest losses to open the new week following a strong rebound last Friday (24 June), shrugging off some better-than-expected economic data - Dow eased -62-points or -0.20%. Boeing Co fell 1.99% following a pair of reports appearing to question the safety of 737 MAX jets, including by Australia’s taxpayer-funded broadcaster that cited “at least six mid-air emergencies” and various other problems experienced by MAX jets since the planes were recertified to fly. The problems were pulled from publicly available databases maintained by the U.S. government. The broader S&P500 lost -0.30%, with Consumer Discretionary (down -1.09%) and Communication Services (-1.05%) leading the decline.  Energy returned to the top of the primary sector leaderboard with a +2.78% rally. The S&P 500 is up more than >7% since hitting a bear-market low in mid-June, although the benchmark is down 19% from its high and 18% lower since the year began. The Nasdaq fell -0.72%. The small capitalisation Russell 2000 added +0.34%.

Morgans AM: Tuesday, 28 June 2022

US equity markets retreated following some weak consumer confidence data, and as oil prices climbed for a third day  - Dow down -491-points or -1.56%, The broader S&P500 shed -2.01%, with Consumer Discretionary (down -4.03%) and Information Technology (-3.01%) leading ten of the eleven primary sectors lower. Energy sat atop the primary sector leaderboard for a second consecutive session with a +2.70% gain.  Warren Buffett's Berkshire Hathaway Inc said it had acquired an additional 794,389 shares in Occidental Petroleum Corp (up +4.77%), lifting the conglomerate’s stake to ~16.4%. The Nasdaq dropped -2.98%. Qualcomm Inc (up +3.48%) bucked the weaker trend after a prominent analyst (Ming-Chi Kuo at TF International Securities) said Apple Inc (-2.98%) is likely to use the company’s 5G modems for its 2023 iPhones rather that relying on technology built in-house. All three benchmark indices booked their worst daily percentage declines since 16 June, according to Dow Jones Market Data. The small capitalisation Russell 2000 lost -0.49%.

Morgans AM: Wednesday, 29 June 2022

US slowdown, Australian boom.

Chicago FED National Activity Index: https://www.chicagofed.org/research/data/cfnai/current-data

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The US Recession That Isn't There: Michael Knox, Morgans Chief Economist

Morgans is Australia's largest national full-service retail stockbroking and wealth management network with more than 240,000 client accounts, 500 authorised representatives and 950 employees operating from offices across all states and territories in Australia.

Morgans Financial Limited

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