Global markets were higher overnight, with US Markets (S&P 500 Index +0.2%) finding some support following a heavy loss in the previous session, as investors digest mixed bag of company results.
Microsoft ended the session up +4.8% following its earnings beat, while Alphabet (Google) fell -3.6% on its earnings miss and investors were worried after management guided for another weak quarter ahead. Solar company Enphase Energy surged +7.7% and was the biggest winner on the S&P 500 after an earnings beat, while on the other side of the ledger Boeing dropped -7.5% after an earnings miss making it the biggest laggard on the Dow index.
Meta (Facebook) is currently up 17% in after hours trade, when it reported a stronger than expected quarterly result, the jump puts Meta back to where it was trading a week ago and cuts its year-to-date loss to -40% (still significantly worse than the NASDAQ which is down -21% for the year).
Apple and Amazon are due to report US Thursday close (NZ Friday morning) which will set the general tone amongst the mega caps.
European markets (Stoxx 600 index +0.6%) were higher with most sectors trading in positive territory despite fears over gas supplies to Poland and Bulgaria from Russia halting.
Closer to home, Australia released a stronger than expected inflation (CPI) print increasing +5.1% – ahead of expectations of +4.6%. The beat brought forward expectations of RBA’s first rate hike likely to be next week – which prompted Aussie equities to sell off further later in the session yesterday.
Visa (V:NASDAQ)
Visa shares jumped +6.5% overnight after delivering a strong earnings beat, helped by robust spending in general and a strong recovery in travel spending (cross border spending is up +38% from last year). Revenue for the quarter came in at $7.19 billion, up +25% from last year and $380m ahead of expectations.
Earnings came in at $1.79 per share up +29% from last year and beat market expectations of $1.65. We are BUY rated on Visa
Australia & New Zealand Market Movers
The Australian market was down yesterday (ASX200 index -0.8%) starting the day down following a weak lead from wall street, but selling increased later in the day following a hotter than expected inflation print.
Tech and consumer staples led losses, while on the flip side energy stocks lead gains as price of oil continues to rise as US inventories remain tight.
The New Zealand market fell on Wednesday (NZX 50 index -0.7%), on a day of selling across most of the market, after the NASDAQ slumped to -20% loss for the year.
Pushpay gave back some of its Tuesday’s gains down 3.1% following market wide tech sell off. While concerns over the global economy saw most sectors also trade lower.
Warehouse (+4.7%) and Briscoes (+1.5%) both managed to buck the trend reporting modest gains as they are less concerned with the global economy.
3 Things Markets will be Watching this Week
- Geopolitical risks remain elevated with the Russia/Ukraine conflict.
- US first quarter GDP data and a huge week of earnings in the US with Alphabet, Meta, Apple, Ford, Amazon, Chevron and Exxon Mobil all due to report.
- Locally, Australian CPI (inflation) data trading updates from Australian Oil and Gas producers.