AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Australian shares are anticipated to follow Wall Street's upward trend, despite some fluctuations during the session. U.S. consumer strength remains a key theme, with data highlighting robust consumer spending. Wells Fargo noted an upward revision to the U.S. GDP growth rate for the June quarter, reaching 3.0% annualized, driven by strong consumer spending. Additionally, profits rebounded to a record high, recouping previous declines.
Wall Street Snapshot
At the close of the session, the Dow Jones Industrial Average rose by 0.6%, while the S&P 500 ended nearly unchanged. The Nasdaq Composite fell by 0.2%. Notably, about 75% of S&P 500 stocks finished higher, according to Bloomberg, and the Russell 2000, representing small-cap stocks, increased by 1%.
Nvidia's share price dropped by 6.4% following a disappointing quarterly report, aligning with its after-hours decline. In contrast, Apple advanced by 1.5%, approaching its mid-July record high. Citigroup highlighted Apple as a top pick in AI over Nvidia.
Upcoming Reports
Key companies set to release earnings reports on Friday include Star Entertainment Group, Ramsay Health Care, Appen, Dicker Data, TPG, and Downer EDI.
Market Highlights
- ASX Futures: Up 51 points, or 0.6%, to 8060 near 7 am AEST
- Australian Dollar: +0.2% to 67.99 US cents
- Bitcoin: +0.4% to $59,501 at 7:12 am AEST
- Global Markets:
- US Indices: Dow +0.6%, S&P 500 -0.00%, Nasdaq -0.2%
- European Indices: Stoxx 50 +1.1%, FTSE +0.4%, DAX +0.7%, CAC +0.8%
- Commodities: Gold +0.8%, Brent Crude +1.4%, Iron Ore +1%
U.S. Economic Data
The latest data from the Bureau of Economic Analysis revealed a 3% annualized GDP growth rate for Q2, up from a previous estimate of 2.8%. Consumer spending increased by 2.9%, surpassing earlier estimates. Corporate profits also saw a notable rise, with adjusted pre-tax profits increasing by 1.7%.
Inflation metrics showed the personal consumption expenditures (PCE) price index rising at a 2.5% annualized rate. The core PCE, excluding food and energy, climbed by 2.8%, slightly down from earlier projections.
Notable Updates
- Pilbara Minerals (ASX:PLS): The company's share price is down 26.9% this year. Its valuation metrics are currently below historical averages.
- ASX Ltd (ASX:ASX): The share price is tracking 14.0% off its 52-week lows.
- Star Entertainment Group: Expected to report a significant impairment related to the Queen’s Wharf Brisbane project.
Nvidia Analysis
Nvidia's stock declined despite impressive quarterly results, suggesting it may have been priced for perfection. Analysts like John Higgins from Capital Economics view the company's performance positively but note challenges ahead, including reliance on key customers and potential competition. Wedbush Securities remains optimistic about Nvidia's future, citing strong demand for AI GPUs. Oppenheimer's valuation reflects optimism but acknowledges risks such as macroeconomic slowdowns and manufacturing disruptions.
Today's Agenda
- Local Data: July retail sales and private sector credit due at 11:30 am
- Overseas Data: NZ August ANZ consumer confidence, Japan July industrial production and retail sales, Eurozone August preliminary CPI, US July personal income, spending, and Core PCE data.
