ASX 200 Set to Climb as S&P 500 Declines Ahead of Major Tech Earnings

2 min read | July 31, 2024 09:45 AM AEST | By Team Kalkine Media

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ASX 200 Set to Climb as S&P 500 Declines Ahead of Major Tech Earnings

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ASX 200 Futures: Trading 29 points higher, up 0.36% as of 8:30 am AEST.

Overnight Markets:

Major US benchmarks finished mixed, but above worst levels.
S&P 500 (NYSE:SPX) and Nasdaq (NASDAQ:IXIC) lost ground ahead of big tech earnings.
Investors continued to rotate into small caps and defensives, with the Equal Weight S&P 500 outperforming the official benchmark by 98 bps.
US 2-and-10 year yields lower, closing at the lowest level since February 2024.
Oil prices settled 0.7% lower, down for a seventh session of the past nine.
Path of least resistance for markets has shifted to lower, with historical weak seasonality in August and September, rising VIX ahead of November election, and weakening earnings revisions.
Goldman Sachs reports S&P 500 companies have authorized just over US$772bn in year-to-date buybacks, up 11% year-on-year.

ASX Today:

Champion Iron (ASX:CIA) reports Q1 EPS of C$0.16 vs. C$0.15 consensus.
Red 5 (ASX:RED) reports Q4 production.
Regional Express (ASX:REX) major lender PAG likely to convert debt to equity to gain significant influence over airline.
Rio Tinto (ASX:RIO) reports first-half FY24 results.
SiteMinder (ASX:SDR) reports preliminary FY24 results.

What to Watch Today:

Aussie inflation figures: Monthly CPI data due at 11:30 am. Market expects inflation to fall from 4.0% in May to 3.8% in June.
Rio Tinto half-year earnings: Consensus includes revenue of US$26.6bn, underlying EBITDA of US$12.2bn, and underlying earnings of US$5.8bn. Macquarie expects an interim dividend of 188 US cents per share.
Credit Corp (ASX:CCP) day two: Reported a mixed result on Wednesday, with FY24 statutory NPAT down 44% to $50.7 million, surpassing the guidance range of $35-45 million. Full-year dividend of 38 cents per share fell short of Macquarie's expectations. Stock experienced volatile price action but closed up 13.95%. Macquarie downgraded the stock today and cut FY25-26 EPS assumptions.

Broker Moves:

Credit Corp (ASX:CCP) downgraded to Neutral from Outperform; target cut to $18.01 from $18.32 (Macquarie).
Fortescue (ASX:FMG) upgraded to Add from Hold; target remains $23 (Morgans).
Fortescue (ASX:FMG) upgraded to Overweight from Neutral; target price remains $23 (JPMorgan).
Technology One (ASX:TNE) upgraded to Outperform from Sector Perform; target up to $24 from $20 (RBC Capital).

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