.svg "close (3)"){kind=small}
Image Source: Adobe Stock
Morning Research Notes - 15.08.24
Wednesday marked an important milestone as the Dow Jones Industrial Average closed above 40,000 points for the first time, driven by cooling inflation and positive corporate developments. The notion failed to echo through to major commodities. Spot gold decreased by 0.8% to $US2445.10 per ounce. Brent crude fell by 1.1% to $US79.83 per barrel, while iron ore prices fell by 2.4% to $US96.20 per tonne.
Yesterday, the Dow Jones Industrial Average closed above 40,000 for the first time, rising 0.6% as inflation showed signs of cooling. The U.S. Consumer Price Index (CPI) slowed to a 2.9% annual pace in July, down from 3.0% in June, which is expected to prompt the Federal Reserve to consider cutting interest rates next month. Intel sold its stake in Arm Holdings, Google faced potential legal action from the U.S. Department of Justice, and Kellanova saw a significant stock increase after agreeing to be acquired by Mars. Cardinal Health also raised its full-year guidance following strong quarterly results.
The Australian market continued its steady climb leading the ASX 200 to close 0.3% higher. The bullish trend was exemplified in most major indices. Financials, Info Tech, Health Care and Utilities all saw price gains of 0.48%, 1.59%, 1.68% and 0.94% respectively whilst Materials saw a price decline of 1.87%. The commodity markets also rebounded on Wednesday following falling prices on Tuesday with Aluminum, Copper, Zinc and Nickel all seeing price gains of 1.88%, 0.84%, 1.59% and 0.41% respectively.
In other news, Treasury Wines lifts dividend, restructures premium brands, Pilbara Minerals to acquire Latin Resources, and Telstra’s profit slips 13pc, ups dividends. (Source: AFR)
Chart of the day
Whilst Iron ore prices remain elevated compared to pre-pandemic levels, they are beginning to show signs of a near-term correction China’s shift from urbanisation and industrialisation to consumption, along with demographic decline, has led to a flatlining in steel production and reduced demand for iron ore. Despite high returns for major companies like BHP and RIO, the outlook for iron ore prices remains uncertain.
Source: Livewiremarkets
If you want to receive our top 3 income stocks click on the button below:
Invest Well,
Australian Stock Report
