.svg "close (3)"){kind=small}
Image Source: Adobe Stock
Morning Research Notes - 17.07.24
US markets closed higher on Tuesday, with the Dow experiencing the strongest gains after retail sales data came in stronger than anticipated. Brent (oil) traded 0.9% lower, with the current price per barrel sitting at $84.08. Spot gold also gained 1.7%, with the current price per ounce standing at $2463.79. Volatility, as measured by the VIX index, increased by 0.6% to $13.19.
On Tuesday, the Dow Jones Industrial Average surged 742 points, or 1.9%, closing at an all-time high of 40,954.48, marking its best day since June 2023. The S&P 500 and Nasdaq Composite also reached record highs, gaining 0.6% and 0.2%, respectively. This rally was fueled by stronger-than-expected retail sales data, indicating robust consumer spending, and a series of positive quarterly earnings reports, notably from Bank of America and UnitedHealth Group. Despite speculation of potential rate cuts by the Federal Reserve, analysts suggest limited scope for significant monetary easing. Additionally, Match Group saw a significant stock increase due to activist investor interest, while Reddit and Trump Media & Technology Group experienced notable declines. Political developments also influenced market sentiment, with Donald Trump naming Ohio Senator J.D. Vance as his vice-presidential running mate after surviving an assassination attempt.
The ASX 200 decreased by 0.23% on Tuesday, with Materials (-0.92%), Utilities (-0.88%), Health Care (-0.15%) and Info Tech (-0.88%) closing lower, whereas Financials (0.09%) closed higher. Commodity markets ended the day mixed, with Zinc (-1.18%), Iron ore (-1.6%), Copper (-1.18%) and Aluminium (-1.12%) experiencing losses, whilst Nickel (0.09%) saw gains. (Source: AFR).
In other news, Cettire gives revenue, customers update, BHP commodities hit ‘production records’, and Goldman sells $US5.5b of bonds in post earnings binge. (Source: AFR)
Chart of the day
Today's chart shows annualised inflation in some of the world's major economies. As can be observed, in many of these countries inflation is within what many economists would call a stable price range. The outliers as the US, which appears to be making good progress in this regard and Australia. The Australian economy is lagging behind many of its peer Western economies on the inflation front. It begs the question as to whether the RBA needs to increase rates rather than cut them.
Source: VanEck
If you want to receive our top 3 income stocks click on the button below:
Invest Well,
Australian Stock Report
