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The ASX 200 is expected to open higher today, buoyed by strong global market sentiment. Meanwhile, the S&P 500 is within 1% of its all-time highs, reflecting continued investor confidence.
Key earnings reports are also on the radar, with Megaport (ASX:MP1) and Medibank (ASX:MPL) set to release their latest financial results. These updates could provide further direction for the Australian market as investors assess the performance of these notable companies.
Overnight Markets Recap
Major U.S. benchmarks closed higher, with the S&P 500 now within 1% of its all-time highs, while the Equal-weight S&P reached record levels. The session was relatively quiet in terms of headlines, but investors are anticipating several upcoming catalysts, including global flash PMIs, Federal Reserve Chair Jerome Powell’s speech, and Nvidia's (NASDAQ:NVDA) earnings next week.
Meanwhile, the U.S. Dollar Index has extended its losing streak to four days, hitting its lowest point since December 2023.
ASX Today
In local news, a new aged care funding model has been agreed upon in principle by major parties, according to the AFR. Additionally, talks continue regarding Orora’s potential sale following Lone Star’s offer, as reported by The Australian.
What to Watch Today
Several key earnings reports have been released this morning. Here's how they stack up against market expectations:
Insignia Financial (ASX:IFL) reported an FY24 underlying net profit of $216.6 million, slightly above the consensus of $215.2 million. However, the company paused its final dividend to strengthen its balance sheet, contrary to the market's expectation of a 10-cent dividend. It will be interesting to see how the market reacts to this decision.
Medibank (ASX:MPL) announced an FY24 underlying net profit of $570.4 million, closely in line with the consensus estimate of $572 million. Most of Medibank’s key metrics, including revenue and dividends, met market expectations.
Northern Star (ASX:NST) exceeded expectations with an FY24 underlying net profit of $689 million, surpassing the consensus forecast of $669 million. Most metrics were slightly ahead of analyst expectations, with a total FY24 dividend of 40 cents per share versus Goldman Sachs’ estimate of 39.5 cents.
Super Retail Group (ASX:SUL) delivered FY24 results largely in line with expectations, posting a net profit of $242.1 million compared to the consensus of $242.8 million. The company surprised the market by declaring a special dividend of 50 cents per share, pushing the total FY24 dividend to 119 cents, well above Macquarie’s expectation of 68.5 cents.
