New Zealand Market Movers
The New Zealand market (NZX 50 Index, +0.6%) rose on Thursday, as investors pick up many large blue chips after their recent selling.
Channell infrastructure rose +1.4% after lifting its revenue guidance for 2023 to $125m to $128m.
Australia Market Movers
The Australian market (ASX 200 Index, +0.2%) was up on Thursday, the index moving exact opposite of the previous session. Materials and Energy slipped giving back gains while other sectors rose, the former being hit by a –3% decline in iron ore prices.
Europe Market Movers
European markets (Stoxx 600 Index, -0.4%) as investors continue to fret over geo-political risk in Poland.
US Market Movers
US markets (S&P 500 Index -0.6%) fell overnight as interest rate induced recession fears grip the market causing almost all sectors to fall.
Investors digest comments from Fed officials “the policy rate is not yet in a zone that may be considered sufficiently restrictive” – reiterating a much more hawkish stance to fight against inflation. He told reporters after a speech that in the past he had said the Fed Funds rate needed to get to 4.75-5% but he now thought 5-5.25% was needed and “that’s a minimum level”.
While most tech stocks sold off Cisco bucked the trend on stronger earnings, while market heavy weight Apple the only mega-cap in the green offsetting losses across the rest of the sector.
Stock In Focus: Warner Brother Discovery (WBD.NASDAQ)
WarnerBrothersDiscovery (WBD) reported disappointing earnings amidst a difficult turnaround story. The company’s revenue came in below the street’s expectations, at $9.82B vs. and expected $10.36B. Per share loss was 95 cents, mainly due to write-downs which management had previously signalled.
This is still a ‘show me’ story
A lot of our house view on streaming is related to our view that many of the streaming services are very much “show me” stories at the moment. Netflix and Disney need to prove their ad-supported capabilities. WarnerBrothersDiscovery has a different challenge. It has stellar content – its stable of content is the #1 most viewed content by time spent watching in the U.S. Its content covers everything from Batman to House of the Dragon. WBD’s issue is less speculative and more prosaic: it has a lot of debt and needs to cut it, however amongst peers it appears attractively priced and for that reason we are Buy (High-Risk) rated on the stock.
What Markets will be Watching this Week (UTC +13)
Monday
Elders earnings
Tuesday
AU RBA Meeting Minutes
GB Unemployment Rate SEP
Infratil earnings
Wednesday
US Producer Price Index MoM OCT
GB Inflation Rate YoY OCT
Walmart earnings
Home Depot earnings
Thursday
US Retail Sales MoM OCT
AU Unemployment Rate OCT
Nvidia earnings
TJ Maxx earnings
Target earnings
Friday
Alibaba earnings
Applied Materials earnings
Ryman earnings
Saturday
JD.com earnings