New Zealand Market Movers
The New Zealand market (NZX 50 Index, -0.1%) fell marginally late on Wednesday, after spending most of the day in positive territory. Consumer Discretionary (+0.8%) led sectors after data showed that credit card spending stays elevated, rising 1% in October, driven by spending on durables and consumables.
Healthcare stocks helped hold the market up, with gains registered by Truscreen (+7.0%), Blis Technologies (+3.5%), and Pacific Edge (2.3%).
Manawa Energy (-8.7%) cratered after reporting earnings for the six months to Sept 30. The company’s EBITDAF from continuing operations (earnings before interest, tax, depreciation, amortisation, fair value movements of financial instruments, asset impairments and discount on acquisition adjustments) slipped -34% to $70 million from $106 million in the previous corresponding period. Further, Underlying earnings fell –40% to $35 million from $59 million due to ” high prices and low hydro inflows”.
Australia Market Movers
The Australian market (ASX 200 Index, +0.6%) rose on Wednesday, led by Mining and Real estate. Regarding the former, it was gold miners doing the heavy lifting, including, Evolution Mining (+9.3%), Newcrest Mining (+6.9%), Northern Star Resources (+6.8%), after Gold (-0.5%) steadied above $1,700 an ounce.
Financials (+0.4%) rose slightly with NAB (-0.9%) limiting upside after reporting pleasing 2022 full year earnings and warned of slowing credit demand. NAB’s cash earnings rose 8.3% to $7.1 billion, with the company benefiting from the windfall of higher interest rates.
Europe Market Movers
European markets (Stoxx 600 Index, -0.3%) dipped a little lower on Wednesday, with most sectors in the red.
US Market Movers
US markets (S&P 500 Index –2.1%) fell on Wednesday with control of Control of the US House of representatives and the Senate still undecided. The Republican red wave has seemingly not occurred, and a few closely contested seats will now determine if Democrats can keep their slim majorities in the House and Senate. All this uncertainty, combined with the US inflation print due 2.30am tomorrow morning, means that investors are demonstrating risk-off sentiment, and all sectors closed in the red.
Upstart (-10.4%) plummeted after reporting much weaker-than-expected revenue of $157 million (vs. $169 million expected) for the current quarter as rising interest rates eat into demand for loans.
Stock In Focus: DISNEY (DIS.NYSE)
Disney (-13.1%) missed market estimates on its revenue and profit for its latest quarter results. Fourth-quarter total revenue came in at $20.15 billion (vs. $21.24 billion expected). On a positive note, Disney+ added 12.1 million subscribers, bringing total users to 164.2 million (vs. 160.5 million expected), however, the company did warn that it expects growth in this segment to slow moving forward.
We are enthused by Disney’s net subscriber additions and strong growth in parks. All media companies reported weaker earnings this quarter, as costs of content and weaker ad sales (for WBD and PARAA) mount. We reiterate that buying Disney is buying a very strong franchise well-prepared for the next decade of streaming: we see further weakness across the market over the near-term so it creates opportunity to prepare adequately and build positions for the long-term.
What Markets will be Watching this Week (UTC +13)
Monday
Tuesday
AU Westpac Consumer Confidence
AU NAB Business Confidence reports.
Wednesday
CN Inflation Rate year-on-year OCT
Thursday
AU Consumer Inflation Expectations NOV
Friday
US Inflation Rate year-on-year OCT
GB GDP Growth Rate year-on-year Q3
NZ Business NZ PMI OCT
Saturday
US Michigan Consumer Sentiment NOV