.svg "close (3)"){kind=small}
Image Source: Adobe Stock
Morning Research Notes - 27.09.24
Wall Street posted significant gains yesterday, with the S&P 500 reaching a record high, driven by strong performances in tech stocks and positive economic data. Commodities experienced mixed performance on Thursday: Spot gold increased by 0.6%, settling at US$2,671.43 per ounce. Brent crude fell by 2.7%, bringing its price down to US$71.45 per barrel. Iron ore continued its upward momentum, rising by 4% to US$100.30 per tonne.
On Thursday, Wall Street experienced significant gains, with the S&P 500 reaching a record high, driven in large by a surge in Micron Technology’s stock. Micron’s shares soared nearly 15% after the company reported strong earnings and optimistic guidance, fueled by robust demand for its AI-related memory chips. Coupled with stronger-than-expected economic data, a rally in chip stocks bolstered investor sentiment. Durable goods orders rose unexpectedly in August, as jobless claims fell more than anticipated, reinforcing hopes of a soft landing. The Nasdaq Composite and Dow Jones Industrial Average also posted gains, with the latter rising 280 points. Additionally, Southwest Airlines’ stock jumped over 5% following an upward revision of its revenue guidance and a new $2.5 billion stock repurchase program. However, Super Micro Computer’s shares dropped more than 12% due to a Department of Justice investigation.
The Australian markets experienced gains on Thursday, with the ASX200 closing 0.94% higher. Positive performance was reflected across all major sectors: Materials, Financials, Info Tech, Healthcare and Utilities saw respective price gains of 1.68%, 0.19%, 1.97%, 1.63% and 0.89%. Commodities traded relatively flat, with Zinc and Nickel prices remaining unchanged, while Aluminium ended the day 1.0% lower and Copper closed 0.2% higher.
Chart of the day
An often overlooked yet highly undervalued sector is healthcare. Healthcare can provide a solid opportunity for defensive diversification. The sector is typically resilient during economic downturns, as demand for medical services and products tends to remain constant. Investing in healthcare can offer a safeguard against market volatility that taps into long-term growth driven by ageing populations, technological advancements and ongoing innovation. Morningstar research shows that nearly 50% of healthcare stocks are rated 4 or 5 stars, indicating they're trading below intrinsic value.
Source: Livewire, VanEck, Morningstar
If you want to receive our top 3 income stocks click on the button below:
Invest Well,
Australian Stock Report
This report has been prepared by Atlantic Pacific Securities Pty Limited trading as ASR Wealth Advisers ABN 72 135 187 085 (“ASRW”) CAR 339207 of Amalgamated Australian Investment Solutions Pty Ltd (AAIS) (AFSL 314 614 - ABN: 61 123 680 106) and distributed with its consent by Australian Stock Report Pty Ltd ABN 94 106 863 978 (ASR) AFSL 301682. ASRW and ASR are part of Amalgamated Australian Investment Group Limited ABN 81 140 208 288. Whilst the information presented herein is believed to be reliable and sourced from public sources thought to be reliable, neither ASRW nor ASR make any representations as to its accuracy or completeness. This report is provided for informational purposes only. It is not an offer or a solicitation of an offer to buy or sell any financial products or to participate in any particular trading strategy. Any advice perceived to be included within this report is provided on a general advice basis only and therefore it does not take into account personal financial situation, objectives and needs of any individual. Before making any decision about financial products, investors must consider whether it is appropriate for them in light of their personal circumstances and seek professional investment, tax, legal and/or personal financial advice. Where applicable, investors should obtain and consider a Product Disclosure Statement, prospectus or other disclosure material relevant to the financial product before making a decision to acquire it.
ASRW’s, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Opinions, estimates and projections constitute the current judgement of the author as at the date of this report. They do not necessarily reflect the opinions of ASRW or any of their related entities, must not be seen as an endorsement in any way and are subject to change without notice. ASRW has no obligation to update, modify or amend this report or otherwise notify a recipient if any opinion, forecast or estimate contained herein changes or subsequently becomes inaccurate. Target prices are inherently imprecise and a product of the analyst’s judgement. Prices and availability of financial products are subject to change without notice and investment transactions can lead to losses as a result of price fluctuations, extreme volatility and other factors. If a financial product is denominated in a currency other than an investor’s currency, a change in exchange rates may adversely affect the investment.
Investing in financial markets involves risk and investments may go up and down. The payment of income and the return of capital are not guaranteed. Past performance is not an indicator of future results. Macroeconomic fluctuations often account for most of the risks associated with exposures to instruments that offer fixed or variable interest rates. Upside surprises in inflation, fiscal funding needs, and FX depreciation rates are among the most common adverse macroeconomic shocks that may impact the market value of any investment. Counterparty exposure, issuer creditworthiness, client segmentation, regulation, changes in tax policies, currency convertibility and settlement issues related to local clearing houses are also important risk factors to take into consideration.
The opinions and recommendations in the research report are based on a reasonable assessment by the research staff member who wrote the report using information provided by the product issuer and generally available in the market. ASRW’s research staff are well qualified and give their opinions and recommendations on reasonable grounds and based on the information available to them. ASRW’s research staff are remunerated by salary and do not receive any commissions or fees. Annual bonuses may be paid on a discretionary basis and as relevant to their role. Employees and/or associates of ASRW, ASR and their related entities may hold one or more of the stocks, securities or investments reviewed in this report. Any personal holdings by employees and/or associates of ASRW, ASR and their related entities should not be seen as an endorsement or recommendation in any way. For information about ASRW, its financial services and Financial Services Guide, please visit www.asrw.com.au .
