##{"id":99392,"date":"2022-02-03T09:15:50","date_gmt":"2022-02-02T22:15:50","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=99392"},"modified":"2022-02-03T10:16:11","modified_gmt":"2022-02-02T23:16:11","slug":"the-overnight-report-faceplant-3","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2022\/02\/03\/the-overnight-report-faceplant-3\/","title":{"rendered":"The Overnight Report: Faceplant"},"content":{"rendered":"\n\n\n\n\n\n\n\n\n\n\n\n\n
World Overnight<\/strong><\/span><\/td>\n<\/tr>\n
SPI Overnight<\/strong><\/span><\/td>\n6989.00<\/strong><\/span><\/td>\n+ 7.00<\/strong><\/span><\/td>\n0.10%<\/strong><\/span><\/td>\n<\/tr>\n
S&P ASX 200<\/strong><\/span><\/td>\n7087.70<\/strong><\/span><\/td>\n+ 81.70<\/strong><\/span><\/td>\n1.17%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500<\/strong><\/span><\/td>\n4589.38<\/strong><\/span><\/td>\n+ 42.84<\/strong><\/span><\/td>\n0.94%<\/strong><\/span><\/td>\n<\/tr>\n
Nasdaq Comp<\/strong><\/span><\/td>\n14417.55<\/strong><\/span><\/td>\n+ 71.54<\/strong><\/span><\/td>\n0.50%<\/strong><\/span><\/td>\n<\/tr>\n
DJIA<\/strong><\/span><\/td>\n35629.33<\/strong><\/span><\/td>\n+ 224.09<\/strong><\/span><\/td>\n0.63%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500 VIX<\/strong><\/span><\/td>\n22.09<\/strong><\/span><\/td>\n+ 0.13<\/strong><\/span><\/td>\n0.59%<\/strong><\/span><\/td>\n<\/tr>\n
US 10-year yield<\/strong><\/span><\/td>\n1.77<\/strong><\/span><\/td>\n– 0.03<\/strong><\/span><\/td>\n– 1.89%<\/strong><\/span><\/td>\n<\/tr>\n
USD Index<\/strong><\/span><\/td>\n95.92<\/strong><\/span><\/td>\n– 0.38<\/strong><\/span><\/td>\n– 0.39%<\/strong><\/span><\/td>\n<\/tr>\n
FTSE100<\/strong><\/span><\/td>\n7583.00<\/strong><\/span><\/td>\n+ 47.22<\/strong><\/span><\/td>\n0.63%<\/strong><\/span><\/td>\n<\/tr>\n
DAX30<\/strong><\/span><\/td>\n15613.77<\/strong><\/span><\/td>\n– 5.62<\/strong><\/span><\/td>\n– 0.04%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

By Greg Peel<\/p>\n

Risk On<\/u><\/p>\n

It was a pretty quiet day on the ASX yesterday. The ASX200 opened up 60 points, was up 90 points by late morning, and stayed there.<\/p>\n

The 7000 level was left well and truly behind, with 7100 now looming. But it was not a Buy Everything affair following a bottoming phase. Sector moves were disparate.<\/p>\n

One way to beat inflation is to buy it, in the form of resource stocks. Energy led the index with a 2.8% gain yesterday, backed up by materials on 2.0%. It was the first day of trading in BHP Group ((BHP)) as a single entity, and the biggest stock on the market rose 1.6%. A chart-topping 6.2% gain for Champion Iron ((CIA)) was indicative of general iron ore miner buying, despite the iron ore price not moving while China is on a holiday.<\/p>\n

The banks made their contribution with 1.1%, in the wake of the RBA remaining “patient” before deciding on a rate hike. Consumer discretionary is the ultimate risk-on sector, and it rose 1.1%.<\/p>\n

Utilities did not tag along with energy (-0.4%). The defensives were generally less sought after, posting sub-1% gains. Technology stood out by closing flat, despite another 0.8% gain for the Nasdaq overnight. The culprit was Block ((SQ2)), down -5.6% as it followed its US listing.<\/p>\n

Credit Corp ((CCP)) topped the losers’ list with a -6.6% fall, having reported earnings on Tuesday. The result was a miss at the headline, but mostly due to a timing issue and brokers remain upbeat.<\/p>\n

Amcor ((AMC)) reported yesterday and fell -3.5%. Supply and inflation challenges.<\/p>\n

The earnings season continues today but we’ll also have a quarterly update from Westpac ((WBC)), which will set the scene for just how the banks are faring amidst omicron.<\/p>\n

That’s about it – as I said, it was a quiet day.<\/p>\n

Job Shock<\/u><\/p>\n

Stop Press: As I write, Meta Platforms (ie Facebook) has just posted an earnings miss and is down -20% in the aftermarket. Similarly, Spotify, from which artists such as Neil Young and Joni Mitchell have been withdrawing their song books, is down -17%.<\/p>\n

PayPal reported in Tuesday’s aftermarket, and fell -23% overnight.<\/p>\n

The results exemplify a stark contrast between US tech names this earnings season, and generally over the last several months. PayPal’s woes were not evident in solid results, and share price gains, for all of Visa, Mastercard and American Express earlier.<\/p>\n

Facebook has been creamed, but Google last night gained 7.6% after reporting in Tuesday’s aftermarket, proving a major underpinning to Nasdaq and S&P500 gains in the day-session. Google, which closed at US$2960 a share (market cap US$2trn), has announced a 20-1 stock split, which would thus make it eligible for the Dow in future.<\/p>\n

Earnings shocks abound, but the other shock last night was the US private sector jobs number for January. Economists were anticipating an omicron impact, but still forecast a net gain of 200,000 jobs. There were plenty of gasps when the result was a -300,000 net loss – the first loss since the initial covid impact in 2020.<\/p>\n

Economists are now rethinking their non-farm payroll forecasts for Friday, although there’s rarely much correlation between the two data points. The release did nevertheless cause Wall Street to stumble early in the session last night, and the ten-year bond yield to pull back -3 basis points to 1.77%.<\/p>\n

It is unlikely the Fed is going to rethink its policy regardless.<\/p>\n

Wall Street managed to shrug off the jobs number and push on anyway. There was no huge last half hour rally this time, just a more measured rise to the close.<\/p>\n

Commodities<\/u><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Spot Metals,Minerals & Energy Futures<\/strong><\/span><\/td>\n<\/tr>\n
Gold (oz)<\/strong><\/span><\/td>\n1806.20<\/strong><\/span><\/td>\n+ 6.40<\/strong><\/span><\/td>\n0.36%<\/strong><\/span><\/td>\n<\/tr>\n
Silver (oz)<\/strong><\/span><\/td>\n22.63<\/strong><\/span><\/td>\n+ 0.06<\/strong><\/span><\/td>\n0.27%<\/strong><\/span><\/td>\n<\/tr>\n
Copper (lb)<\/strong><\/span><\/td>\n4.47<\/strong><\/span><\/td>\n+ 0.03<\/strong><\/span><\/td>\n0.74%<\/strong><\/span><\/td>\n<\/tr>\n
Aluminium (lb)<\/strong><\/span><\/td>\n1.37<\/strong><\/span><\/td>\n– 0.02<\/strong><\/span><\/td>\n– 1.56%<\/strong><\/span><\/td>\n<\/tr>\n
Lead (lb)<\/strong><\/span><\/td>\n1.02<\/strong><\/span><\/td>\n– 0.01<\/strong><\/span><\/td>\n– 0.86%<\/strong><\/span><\/td>\n<\/tr>\n
Nickel (lb)<\/strong><\/span><\/td>\n10.58<\/strong><\/span><\/td>\n+ 0.05<\/strong><\/span><\/td>\n0.45%<\/strong><\/span><\/td>\n<\/tr>\n
Zinc (lb)<\/strong><\/span><\/td>\n1.65<\/strong><\/span><\/td>\n– 0.00<\/strong><\/span><\/td>\n– 0.15%<\/strong><\/span><\/td>\n<\/tr>\n
West Texas Crude <\/strong><\/span><\/td>\n88.33<\/strong><\/span><\/td>\n+ 0.17<\/strong><\/span><\/td>\n0.19%<\/strong><\/span><\/td>\n<\/tr>\n
Brent Crude<\/strong><\/span><\/td>\n89.56<\/strong><\/span><\/td>\n+ 0.41<\/strong><\/span><\/td>\n0.46%<\/strong><\/span><\/td>\n<\/tr>\n
Iron Ore (t)<\/strong><\/span><\/td>\n141.75<\/strong><\/span><\/td>\n0.00<\/strong><\/span><\/td>\n0.00%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Nothing much to see here.<\/p>\n

OPEC-Plus meets tonight but is not expected to shift from its previous plan of modestly increasing production from this month. It is not enough, analysts suggest, to cap the ongoing rise in oil prices, and some OPEC members will be unable to match the new quotas anyway given their own omicron problems.<\/p>\n

The US dollar continues to slide, so the Aussie’s up another 0.3% at US$0.7149.<\/p>\n

Today<\/u><\/p>\n

The SPI Overnight closed up 7 points.<\/p>\n

Locally we’ll see numbers for building approvals and trade today.<\/p>\n

Centuria Office REIT ((COF)), Janus Henderson ((JHG)) and Pinnacle Investments ((PNI)) report earnings.<\/p>\n

As noted Westpac provides an update.<\/p>\n

The Australian share market over the past thirty days…<\/strong><\/p>\n<\/p>\n

<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS<\/span><\/td>\n<\/tr>\n
ABB<\/td>\nAussie Broadband<\/td>\nUpgrade to Outperform from Neutral<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
ABC<\/td>\nAdBri<\/td>\nUpgrade to Neutral from Underperform<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
ALU<\/td>\nAltium<\/td>\nDowngrade to Neutral from Buy<\/td>\nCiti<\/td>\n<\/tr>\n
ANN<\/td>\nAnsell<\/td>\nUpgrade to Neutral from Underperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nDowngrade to Hold from Add<\/td>\nMorgans<\/td>\n<\/tr>\n
ARB<\/td>\nARB Corp<\/td>\nUpgrade to Buy from Hold<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
AWC<\/td>\nAlumina Ltd<\/td>\nUpgrade to Buy from Hold<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
BXB<\/td>\nBrambles<\/td>\nDowngrade to Underweight from Equal-weight<\/td>\nMorgan Stanley<\/td>\n<\/tr>\n
CAR<\/td>\nCarsales<\/td>\nUpgrade to Outperform from Neutral<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
CPU<\/td>\nComputershare<\/td>\nUpgrade to Buy from Neutral<\/td>\nUBS<\/td>\n<\/tr>\n
CSR<\/td>\nCSR<\/td>\nUpgrade to Outperform from Neutral<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
EHE<\/td>\nEstia Health<\/td>\nDowngrade to Hold from Accumulate<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
IDX<\/td>\nIntegral Diagnostics<\/td>\nUpgrade to Buy from Accumulate<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
LVT<\/td>\nLiveTiles<\/td>\nUpgrade to Buy from Neutral<\/td>\nCiti<\/td>\n<\/tr>\n
MPL<\/td>\nMedibank Private<\/td>\nDowngrade to Lighten from Hold<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
NHF<\/td>\nnib Holdings<\/td>\nDowngrade to Lighten from Hold<\/td>\nOrd Minnett<\/td>\n<\/tr>\n
PBH<\/td>\nPointsBet<\/td>\nDowngrade to Neutral from Outperform<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
PTM<\/td>\nPlatinum Asset Management<\/td>\nUpgrade to Equal-weight from Underweight<\/td>\nMorgan Stanley<\/td>\n<\/tr>\n
REA<\/td>\nREA Group<\/td>\nUpgrade to Buy from Neutral<\/td>\nCiti<\/td>\n<\/tr>\n
RMD<\/td>\nResMed<\/td>\nUpgrade to Buy from Neutral<\/td>\nCiti<\/td>\n<\/tr>\n
SWP<\/td>\nSwoop Holdings<\/td>\nUpgrade to Speculative Buy from Hold<\/td>\nMorgans<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

For more detail go to FNArena's Australian Broker Call Report<\/a>, which is updated each morning, Mon-Fri.<\/p>\n

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available on the FNArena website.  Click here<\/a>. (Subscribers can access prices on the website.)<\/em><\/p>\n

(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's – see disclaimer on the website)<\/strong><\/em><\/p>\n

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FNArena is proud about its track record and past achievements: Ten Years On<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Wall Street had another positive, albeit slightly less exuberant session last night, but Meta Platforms has tanked -20% after the bell on earnings. Dow up 224. (Available for non-subscribers after 10am)<\/p>\n","protected":false},"author":8,"featured_media":99397,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[84],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/99392"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=99392"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/99392\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media\/99397"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=99392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=99392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=99392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}