Grim start to last trading day for the week: ASX down 0.8%

Energy and Information Technology are the only sectors up at noon, as the ASX looks to close out a pretty moderate week.

The energy sector got a boost from Whitehaven Coal (ASX:WHC), which is up nearly 3 per cent as investors have turned their attention to the group's 25 per cent buyback plans, which are up for approval at next week's annual meeting. In March, the company started its buyback plan. On Thursday, the coal miner completed its 10 per cent share buy back of 103 million shares, returning $588m to shareholders.

Another coal miner, New Hope (ASX:NHC), advanced 4.3 per cent.

Fellow energy companies Beach Energy (ASX:BPT) and Woodside Petroleum (ASX:WDS) rose 2.1 per cent and 0.1 per cent, respectively.

At noon, the S&P/ASX 200 is 0.80 per cent or 53.70 points lower at 6677.00.

The SPI futures are pointing to a fall of 65 points.

Best and worst performers

The best-performing sector is Energy, up 0.33 per cent. The worst-performing sector is Financials, down 1.87 per cent.

The best-performing stock in the S&P/ASX 200 is Telix Pharmaceuticals (ASX:TLX), trading 10.67 per cent higher at $6.64. It is followed by shares in Perseus Mining (ASX:PRU) and New Hope Corporation (ASX:NHC).

The worst-performing stock in the S&P/ASX 200 is Insurance Australia Group Group (ASX:IAG), trading 3.71 per cent lower at $4.67. It is followed by shares in Allkem (ASX:AKE) and HUB24 (ASX:HUB).

Asian markets

Asian equities opened mostly lower on Friday.

Shares in the Asia-Pacific traded lower on Friday as investors await inflation data from several economies.

The Nikkei 225 opened 0.24 per cent lower in early trade and the Topix lost 0.33 per cent. South Korea’s Kospi dipped 0.23 per cent and the Kosdaq shed 0.37 per cent to start the day. MSCI’s broadest index of Asia-Pacific shares was 0.43 per cent lower.

Japan’s core consumer prices for the month of September rose 3 per cent compared to a year ago, while Hong Kong and Malaysia are slated to release their inflation data later in the day.

Tesla misses on gross margins but some positive takeaways as well

Tesla was a laggard following their mixed Q3 results. Their revenue and gross margin targets were not hit. Also, there was some focus on comments about more difficult macro conditions in China and Europe, while the takeaways flagged China ASP risk as well. However, there was no real shift in sentiment surrounding the name and analysts highlighted a number of bright spots. Musk predicted an "epic" Q4 and the company said it continues to expect to sell every car it manufactures. Musk also noted potential for $5-$10B of stock buybacks next year, though some notes said cash use should be focused on investments. Other positive takeaways revolved around reiteration of 50 per cent of the average annual delivery growth guidance.

Bounce can drive some wishful thinking

Bounce strength can help put a more positive spin on even some of the more bearish talking points. The inflation/Fed/rate narrative that has been the big headwind throughout 2022 may be getting old with the Fed on track for getting to the terminal rate projection in just a couple of months. A move to the sidelines may be enough of a pivot if the Fed guides for data dependency that fits better with the lagged effect of the tightening cycle. Global tightening cycle could also be constrained by the lack of political appetite for a more meaningful growth/employment slowdown and negative wealth effect. Damage from the equity selloff has already amounted to ~$15T, approaching that of the financial crisis when measured against GDP (Bloomberg). While earnings flagged as the next shoe to drop for stocks, estimates may prove stickier given lingering pricing power and strong consumer and corporate balance sheets. In addition, an eventual earnings reset may be cushioned by the outsized multiple contraction (~7x) that has already been responsible for all of the 2022 drawdown.

Company news

San Francisco-based Life360 (ASX:360) today announced changes to pricing for some of its US based premium offerings. The company will implement price changes for certain existing monthly subscribers. Pricing for annual subscriptions remains unchanged. These changes will roll out to existing monthly iOS subscribers on a staged basis, representing approximately 60 per cent of US subscribers, and are expected to take effect by mid-December 2022. Life360 had 42 million monthly active users as at June 2022, located in more than 150 countries. Life360 CEO Chris Hulls said: “Life360 has always focused on providing great value for our members - free and paid. Our last price increase was with the introduction of the three tiers of membership in 2020, which also included the addition of an extensive range of products and services within each tier. With our enhanced product rollouts, we have continued to increase the value of the user experience for all our members. Shares are trading 2.2 per cent higher at $6.01.

GBM Resources (ASX:GBZ) has executed a $25m farm-in agreement with Newcrest Operations, a subsidiary of Newcrest Mining, to advance its Mount Coolon Gold Project in the Drummond Basin in Quensland. This farm-in agreement provides the potential for substantial funding to advance exploration on the known mineral resources together with the other targets in the Mount Coolon Project area while allowing GBM to focus its efforts on its highly prospective Twin Hills and Yandan Gold Projects. During the farm-in period, Newcrest will have a first right of refusal over the Twin Hills and Yandan Projects should GBM look to sell or joint venture these assets. Newcrest has the right to acquire up to a 75 per cent interest in the Mount Coolon Project tenements by spending up to A$25m and completing a series of exploration milestones in a 3 stage farm-in over six years. Shares are trading 12.2 per cent higher at 5 cents.

Podium Minerals (ASX:POD) has announced 5E PGM1 results have been received for all outstanding drill holes, including the Central Ore Zone and the diamond core tailed holes. 5E PGM represents a combination of platinum, palladium, gold, rhodium and iridium. Managing Director and CEO Sam Rodda commented: “The presence of high-grade zones and confirmation of rhodium and iridium throughout the orebody will allow us to optimise our resource modelling and studies to consider these areas.” “Our work streams remain focused on growing and understanding the orebody and testing our metallurgy for a preferred processing path as part of refining our path to production.” Shares are trading 11.5 per cent higher at 14 cents.

Commodities and the dollar

Gold is trading at US$1626.74 an ounce.
Iron ore is 2.5 per cent lower at US$91.40 a tonne.
Iron ore futures are pointing to a rise of 1.03 per cent.
One Australian dollar is buying 62.71 US cents.