Stocks rose Monday to start a big week of inflation data as investors bought up tech shares in the wake of recent weakness.
The Nasdaq Composite rallied by 1.14 per cent to 13,917.89. The S&P 500 gained 0.67 per cent to 4,487.46. The Dow Jones Industrial Average rose 87.13 points, or 0.25 per cent, to 34,663.72, aided by a rise in Walt Disney shares.
Tesla shares jumped 10 per cent after Morgan Stanley upgraded the stock and predicted a significant rally ahead because of breakthroughs with its autonomous software. Qualcomm shares rose nearly 4 per cent after the semiconductor company said Monday it will supply Apple with 5G modems for smartphones through 2026.
The Technology Select Sector SPDR Fund (XLK), made up of the tech shares in the S&P 500, was down 1.5 per cent in August and off by more than 1 per cent this month. On Monday, however, the ETF was higher by about 0.5 per cent. It’s up nearly 40 per cent on the year.
Elsewhere, Disney shares rose about 1.2 per cent after CNBC’s David Faber reported Monday, citing sources, the media conglomerate and Charter Communications have reached a deal to end their cable blackout fight.
Bullish sentiment Monday was helped by a report in The Wall Street Journal report on Sunday saying there was a consensus among the Federal Reserve not to raise rates at next week’s meeting. The report also cited a policy shift in which members are seeing less urgency to add another rate hike later this year, as inflation data has been improving.
Investors are looking forward to key inflation data in the week ahead after a string of stronger-than-expected economic data points last week had renewed worries that the Federal Reserve could raise rates more than previously expected.
Wednesday and Thursday bring the latest consumer price index and producer price index readings, respectively. Investors are hoping for low readings, although both are expected to jump due to energy cost pressures.
Apple will also hold its product event on Tuesday, dubbed “Wonderlust,” during which the company is widely anticipated to unveil the iPhone 15.
In commodity-related news, US crude oil stockpiles have hit their lowest level since December, coinciding with extended production cuts by Saudi Arabia and Russia, while in the aluminium market, discussions about Russian metal sales dominate negotiations as some traders avoid Russian supplies for ethical, logistical, or financing reasons, leading to a buildup of Russian aluminium in London Metal Exchange stockpiles that rivals say could distort global prices, with aluminium futures on the LME falling 7.4 per cent this year due to declining demand and rebounding supply in China.
Overall, all US sectors except for Health and Industrials closed higher overnight. Consumer Discretionary was the best performer.
Futures
The SPI futures are pointing to a 0.1 per cent gain.
Currency
One Australian dollar at 7:25 AM was buying 64.30 US cents.
Commodities
Gold added 0.23 per cent. Silver gained 0.90 per cent. Copper jumped 2.44 per cent. Oil fell 0.25 per cent.
Figures around the globe
European markets closed higher. London’s FTSE gained 0.25 per cent, Frankfurt added 0.36 per cent, and Paris closed 0.52 per cent higher.
Turning to Asian markets, Tokyo’s Nikkei fell 0.43 per cent, Hong Kong’s Hang Seng fell 0.58 per cent while China’s Shanghai Composite closed 0.84 per cent higher.
The Australian sharemarket closed 0.50 per cent higher at 7,192.
Ex-dividends
BlueScope Steel Ltd (ASX:BSL) is paying 25 cents fully franked
Diverger Limited (ASX:DVR) is paying 3.5 cents fully franked
Lovisa Holdings Ltd (ASX:LOV) is paying 31 cents 70 per cent franked
News Corp (ASX:NWS) is paying 10.6952 cents unfranked
Perseus Mining Ltd (ASX:PRU) is paying 2.48 cents unfranked
Psc Insurance Ltd (ASX:PSI) is paying 8.3 cents 60 per cent franked
Regis Healthcare Ltd (ASX:REG) is paying 7.48 cents 50 per cent franked
Sequoia Fin Grp Ltd (ASX:SEQ) is paying 4 cents fully franked
TPG Telecom Limited (ASX:TPG) is paying 9 cents fully franked
Dividends payable
Bell Financial Group Ltd (ASX:BFG)
Domain Holdings Australia Ltd (ASX:DHG)
SSR Mining Inc (ASX:SSR)
Winton Land Ltd (ASX:WTN)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
Disclaimer
The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.
