Tesla & corporate earnings continue to underpin US markets


If you would like to watch a video of the outlook report, click here. Thanks for tuning in!

US markets continued to rise underpinned by strong earnings numbers. Results from the reporting season so far have seen over 80 per cent of US companies beating expectations. First-quarter earnings are now on track to increase by 4.7 per cent from a year ago.

The S&P 500 rose 0.32 per cent, the Nasdaq Composite added 0.35 per cent and the Dow Jones closed 0.38 per cent higher.

In company news, Tesla popped more than 15 per cent after clearing a key hurdle for full self-driving technology in China. Apple climbed around 2.5 per cent following an upgrade from investment firm Bernstein.

Deciphera Pharmaceuticals is set to be acquired by Japan's ONO Pharmaceuticals for approximately $2.4 billion in cash, with a consideration of $25.60 per share, representing a premium of around 75 per cent compared to Friday's closing price.

Domino’s Pizza rose more than 5 per cent after reporting better than expected earnings. Apple, McDonald’s, Coca-Cola and Amazon are all expected to report earnings this week.
Of the more than 46 per cent S&P 500-listed firms that have posted results so far, about 4 out of every 5 have surpassed expectations, according to FactSet.

In economic news, investors are also focused on this week’s Fed meeting. The Fed is set to release its latest interest rate announcement on Wednesday. While the central bank is widely anticipated to keep the borrowing cost unchanged, investors will still closely monitor the post-announcement press conference with Chair Jerome Powell.

Turning to US sectors, the best performer was Consumer Discretionary which closed up 2.03 per cent. The worst performing sector was Communications which finished 2.06 per cent lower for the day.

Turning to domestic markets, the ABS retail data for March is due out today. Forecasters expect a 0.2 per cent month-on-month rise. A stronger retail number would place additional pressure on the RBA’s inflation outlook and ultimately its rates policy.
 
Futures

The SPI futures are pointing to a 0.2 per cent gain.

Currency

One Australian dollar at 7.25am was buying 65.66 US cents.

Commodities

Gold has added 0.45 per cent. Silver has risen 0.45 per cent. Copper has gained 2.24 per cent. Oil is down 1.46 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE added 0.09 per cent, Frankfurt lost 0.24 per cent, and Paris closed 0.29 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei was closed, Hong Kong’s Hang Seng added 0.54 per cent and China’s Shanghai Composite closed 0.79 per cent higher.

The Australian share market closed 0.81 per cent higher at 7,637.38

Ex-dividends
Metrics Income (ASX:MOT) is paying 1.4 cents unfranked
Metrics Master (ASX:MXT) is paying 1.49 cents unfranked

Dividends payable
Centuria Industrial REIT (ASX:CIP)
Centuria Office REIT (ASX:COF)
Magontec Ltd (ASX:MGL)
Rural Funds Group (ASX:RFF)
SDI Ltd (ASX:SDI)
Yancoal Australia Ltd (ASX:YAL)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Subscribe to our Daily Newsletter?

Would you like to receive our daily news to your inbox?