Market Update: Dow Jones Ended in Red. Markets Are Sensitive To Corporate Earnings

Market Update: Dow Jones Ended in Red. Markets Are Sensitive To Corporate Earnings

Even though the stock markets are sensitive to the global macro-economic parameters, in the present scenario, the investors need to maintain their focus towards the US corporate earnings. The companies, generally, provide information on how the macro-economic environment affected their business in the past and how it might affect moving forward. Also, market trackers need to closely observe the developments with respect to the trade talks between the US and China. The performances of some companies are very sensitive to the global macro-economic environment and The Blackstone Group and The Carlyle Group are included in the list of those companies.

The US Federal Reserve meeting has been scheduled for July 30-July 31, 2019 and the market players need to track the meeting as it might help in assessing the current state of the global economy. The comments of Chairman Jerome Powell can influence the movement of broader stock markets. On July 16, 2019, Dow Jones Industrial Average witnessed a decline of 23.53 points to close at 27,335.63, which reflects a fall of 0.09% on an intraday basis. On the same day, S&P 500 Index wrapped up the session at 3,004.04, reflecting a decrease of 0.34% or 10.26 points.

Minutes of Monetary Policy Meeting: A Brief Note

Recently, the minutes of monetary policy meeting were released wherein it was mentioned that the global trade, as well as manufacturing activity, slowed over the preceding year. With respect to China, it disclosed that the recent indicators of the economic activity reflected the growth, which slowed since the quarter ended March. It was also added that, in major advanced economies, the labour markets remained tight.

Australian Markets Ended in Green and S&P/ASX200 Rose 0.5% Intraday  

The geopolitical tensions, macro-economic parameters and the decision related to interest rates are primary factors which have the potential to influence the broader momentum of Australian stock markets. Additionally, performance of the Australian economy is also a critical factor. If the trade battle between the US and China ends on a permanent basis, it might favourably impact Australian equities. On July 17, 2019, S&P/ASX200 rose 32.3 points or 0.5% on an intraday basis to close at 6,673.3. Also, All Ordinaries rose 28.2 points or 0.4% to settle at 6,764. We would now be having a look at the performance of individual stocks. Elders Limited (ASX: ELD) encountered a rise of 15.008% to close at $7.050 per share while Austal Limited (ASX: ASB) rose 11.236% to settle at $3.960 per share. On July 16, 2019, Austal Limited issued a release and stated that they are expecting EBIT for FY 2019 to be around $92 million.

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On the other hand, Speedcast International Limited (ASX: SDA) fell 6.736% to close at $1.800 per share while Galaxy Resources Limited (ASX: GXY) witnessed a fall of 6.593% to close at $1.275 per share. We have provided recent updates on four healthcare stocks (i.e., AdAlta Limited, Immuron Limited, Neuren Pharmaceuticals Limited and Stemcell United Limited) which the investors in Australia should know. To have a look at the updates, please click here.


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