Amazon sees record quarter as CEO Jeff Bezos steps down: ASX set to open higher

Market Reports

by Rachael Jones

The Australian share market is set to open higher this morning as all three major benchmarks were up on Wall Street. Amazon delivered its largest quarter revenue of all time as the results are in of its first $100 billion quarter after the holiday and pandemic shopping surge. CEO Jeff Bezos is to be replaced by Andy Jassy. Alphabet revenue grew 2 per cent in the quarter. Oil prices reached their highest in almost a year. Gamestop shares continue to fall as the Reddit rally retreats.

Economic news outlook

Today, RBA Governor Philip Lowe delivers a speech entitled “The Year Ahead” at the National Press Club in Canberra at 12.30pm AEDT. Also today the ABS quarterly ‘Living Cost Indexes’. In December, new vehicle sales were up 13.5 per cent from a year ago.


Wall Street closed higher yesterday: The Dow Jones Industrial Average gained 1.6 per cent to 30,687, the S&P 500 added 1.4 per cent to 3826 and the NASDAQ closed 1.6 per cent higher at 13,613.

European markets closed higher, London’s FTSE added 0.8 per cent, Paris gained 1.9 per cent and Frankfurt closed 1.6 per cent higher.

Asian markets closed higher, Tokyo’s Nikkei added almost 1 per cent, Hong Kong’s Hang Seng gained 1.2 per cent and China’s Shanghai Composite closed 0.8 per cent higher.

Taking all of this into equation, the SPI futures are pointing to a 0.9 per cent gain.

Yesterday, the Australian share market closed 1.5 per cent higher at 6763.

Company news

Fonterra Co-operative Group (ASX:FSF) today lifted its 2020/21 forecast Farmgate Milk Price range to NZD $6.90 - $7.50 per kg milk solids, up from NZD $6.70 - $7.30 per kgMS. The move is due to “strong” demand from China and southeast Asia. Fonterra CEO Miles Hurrell says it would see the Coop contribute almost $11 billion to the New Zealand economy through milk price payments this year. Shares in Fonterra Shareholders Fund (ASX:FSF) closed flat at $4.25 yesterday.


Advanced Share Ltd (ASX:ASW) is paying 2.5 cents fully franked
Euroz Limited (ASX:EZL) is paying 2.5 cents fully franked
Nickel Mines Limited (ASX:NIC) is paying 2 cents unfranked


One Australian Dollar at 8:20 AM was buying 76.04 US cents, 55.68 Pence Sterling, 79.86 Yen and 63.15 Euro cents.


Iron Ore has lost 4.6 per cent to US$149.80.
Iron Ore futures suggest 2.3 per cent fall.
Gold has lost $28 to US$1836 an ounce.
Silver was down $2.92 to US$26.50 an ounce.
Oil was up $1.26 to US$54.81 a barrel.


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