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Markets rise ahead of key tech earnings and economic data

ASR Team

Self-directed investors have relied on Australian Stock Report for over 20 years to provide them with comments on the Australian stock market and useful insights. We provide Australian investors with market news and research to make decisions that would help manage their savings, build a sustainable income, and potentially achieve capital growth.

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Image Source: Adobe Stock

 

Morning Research Notes - 29.10.24

 

Wall Street closed higher yesterday as investors look forward to a week filled with major tech earnings and crucial economic reports, setting the stage for potential market shifts. Major commodities had a mixed day: Gold fell 0.2% to $US2,743.11 an ounce, while Brent crude dropped 5.7% to $US71.70 a barrel. In contrast, iron ore rose 2.8% to $US103.95 a tonne.

The S&P 500 closed higher on Monday, continuing its recent gains as investors anticipate a busy week of key economic data and major tech earnings. The Dow Jones, S&P 500, and NASDAQ each rose by 0.3%. Big tech stocks are in focus with Alphabet, Meta, Microsoft, Apple, and Amazon set to report earnings, which are expected to influence the broader market. Taiwan Semiconductor fell over 3% due to halted shipments to a Chinese firm. Key economic reports this week include the monthly jobs report, GDP data, and the core PCE price index. Additionally, the upcoming presidential election and recent geopolitical tensions affecting oil prices are also in the spotlight.

The Australian stock market closed Monday with gains, as the ASX 200 rose by 0.12%. This positive trend was reflected across major indices, with the Materials, Info Tech, and Healthcare sectors recording increases of 0.75%, 1.97%, and 0.23%, respectively. In contrast, Financials and Health Care closed lower by 0.42% and 0.58%, respectively. Major commodities ended the day in the red, with Aluminium, Copper, Zinc, and Nickel falling by 1.61%, 0.3%, 4.93%, and 0.72%, respectively.

 

Chart of the day

 

US industrial property has underperformed most other REITs in 2024 as a sudden and “unexpected” decline in tenant demand caused some listed REITs to downgrade earnings this year. Management teams have struggled to explain why demand (now running at 1/4th the level of previous years) has dropped off so much despite a strong economy. The answer can be seen in the chart above. A combination of surging online consumer demand and lack of new supply during the pandemic pushed tenants into a ‘land-grab’ mindset – signing new leases in excess of immediate needs for fear of missing out. Tenants now need to naturally grow into their commitments – which means the US industrial leasing outlook will probably remain weak for a for more years yet.

 

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​​Source: Livewire




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