US stocks closed slightly higher on Tuesday as investors looked ahead to a crucial earnings report from Nvidia.
The broad-based S&P 500 gained 0.16 per cent to finish at 5,625.80, while the tech-heavy Nasdaq Composite rose 0.16 per cent to 17,754.82. The Dow Jones Industrial Average added 9.98 points, or 0.02 per cent, to close at a new record high of 41,250.50.
US sector performance was mixed. Technology stocks led the gains, followed by financials and real estate. Energy stocks, however, lagged behind.
Investors are eagerly anticipating Nvidia's earnings report, due after the market closes on Wednesday (US time). The company has become a barometer for the AI sector, and its results will provide insights into the health of the AI trade. Nvidia's shares rose about 1.5 per cent on Tuesday.
Stocks have been attempting to stabilise following a turbulent start to the month. Investor sentiment has improved after Federal Reserve Chair Jerome Powell hinted at a potential interest rate cut at the central bank's next meeting. Powell, however, did not provide specifics on the timing or magnitude of the rate reduction.
Market participants are overwhelmingly expecting a rate cut of at least 25 basis points at the Fed's September 17-18 meeting, according to data from the CME Group's FedWatch Tool.
The Australian Bureau of Statistics is set to release the July CPI indicator and second-quarter construction work done at 11:30 AM AEST. Major banks have released their forecasts for the CPI indicator. NAB expects a slightly lower inflation rate than the consensus, while ANZ forecasts a more significant decline due to falling prices in certain categories. Both banks acknowledge the potential for volatility in the data due to government subsidies and seasonal factors.
Several major Australian companies are set to report their earnings. Some big names include: Fortescue (ASX:FMG), Woolworths (ASX:WOW), Flight Centre (ASX:FLT), Nine (ASX:NEC) and Tabcorp (ASX:TAH).
Futures
The SPI futures are pointing to a 0.4 per cent fall.
Currency
One Australian dollar at 7.25am was buying 67.91 US cents.
Commodities
Gold lost 0.09 per cent. Silver fell 0.09 per cent. Copper added 0.53 per cent. Oil dropped 2.44 per cent.
Figures around the globe
European markets closed mixed. London’s FTSE added 0.21 per cent, Frankfurt gained 0.35 per cent, and Paris closed 0.32 per cent lower.
Turning to Asian markets, Tokyo’s Nikkei gained 0.47 per cent, Hong Kong’s Hang Seng added 0.43 per cent, while China’s Shanghai Composite closed 0.24 per cent lower.
Yesterday, the Australian share market closed 0.17 per cent lower at 8071.16.
Ex-dividends
Apiam Animal Health (ASX:AHX) is paying 1 cent fully franked
Bell Financial Group (ASX:BFG) is paying 4 cents fully franked
Fiducian Group Ltd (ASX:FID) is paying 21.1 cents fully franked
Mitchell Services (ASX:MSV) is paying 2 cents unfranked
Maxiparts Limited (ASX:MXI) is paying 2.57 cents fully franked
Ooh!Media Limited (ASX:OML) is paying 1.75 cents fully franked
The Lottery Corp (ASX:TLC) is paying 10.5 cents fully franked
Telstra Group (ASX:TLS) is paying 9 cents fully franked
Treasury Wine Estate (ASX:TWE) is paying 19 cents 70 per cent franked
Vgi Partners Global (ASX:VG1) is paying 5 cents fully franked
Wagners Hld Company (ASX:WGN) is paying 2.5 cents fully franked
Dividends payable
BWP Trust (ASX:BWP)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
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.
