Note: Figures recorded at 7:30am AEDT. Updated figures and a video recording will be available at 9am AEDT.
The S&P 500 rose Monday and headed for a fresh record high as Wall Street looked toward several mega-cap tech earnings reports and the Federal Reserve’s rate policy decision.
The benchmark climbed 0.7 per cent, rising above its highest ever close of 4,894.16 reached Jan. 25. The Dow Jones Industrial Average added 203 points, or 0.5 per cent, while the Nasdaq Composite gained 1 per cent.
This week marks the busiest slate of the earnings season, with 19 per cent of the S&P 500 reporting earnings. Mega-cap tech names Microsoft, Apple, Meta, Amazon and Alphabet — part of the core group of big tech companies that have led this year’s rally — will be posting their results.
Investors will also keep an eye on several Dow components reporting their quarterly earnings, including Boeing and Merck.
Meanwhile, the Federal Open Market Committee will begin its two-day policy meeting on Tuesday. Investors are nearly certain the central bank will keep rates steady. Traders in the fed funds futures market assigned an almost 97 per cent probability the Fed will not cut rates at the upcoming meeting, according to the CME Group.
Shares of iRobot plummeted more than 9 per cent following news that Amazonwould know longer pursue a deal to acquire the company.
In commodity-related news, Brent and US oil futures dipped in anticipation of US action following an attack on an American base in Jordan by Iran proxy fighters. US Defense Secretary Lloyd Austin pledged to protect troops amid a series of attacks on US forces in the region. While West Texas Intermediate had a significant increase last week due to short covering, the lack of substantial long positions indicates scepticism regarding the recent rally, according to traders.
The liquidation of Evergrande, once China's largest property developer, contributed to traders fearing a reduction in oil demand this year. Although oil briefly surged over 1 per cent following a drone strike on a US base in Jordan that killed three soldiers, concerns about the Biden administration's response to the attack added uncertainty to the market.
Futures
The SPI futures are pointing to a 0.32 per cent rise.
Currency
One Australian dollar at 7.25am was buying 66.14 US cents.
Commodities
Gold has gained 0.64 per cent. Silver has gained 1.83 per cent. Copper has gained 0.9 per cent. Oil has fallen 1.41 per cent.
Figures around the globe
European markets closed mixed. London’s FTSE lost 0.03 per cent, Frankfurt fell 0.12 per cent, and Paris closed 0.09 per cent higher.
Turning to Asian markets, Tokyo’s Nikkei gained 0.77 per cent, Hong Kong’s Hang Seng gained 0.78 per cent and China’s Shanghai Composite closed 0.92 per cent lower.
Yesterday, the Australian share market closed 0.31 per cent higher at 7,578.45.
Ex-dividends
Djerriwarrh Investments (ASX:DJW) is paying 7.25 cents fully franked.
Diverger (ASX:DVR) is paying 2 cents fully franked.
Gryphon Capital Income Trust (ASX:GCI) is paying 1.5 cents unfranked.
KKR Credit Income Fund (ASX:KKC) is paying 1.67 cents unfranked.
Perpetual Credit Income Trust (ASX:PCI) is paying 0.6824 cents unfranked.
360 Capital Mortgage REIT is paying 3.5 cents unfranked.
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
