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Key inflation data lifts the broad market index

The Nasdaq Composite advanced Thursday, rising to its first closing record since November 2021.

The tech-heavy Nasdaq jumped 0.9 per cent to close at an all-time high at 16,091.92, as tech stocks and chips rallied into the close. The S&P 500 also popped to a record close, rising 0.52 per cent at 5,096.27. The Dow Jones Industrial Average ticked higher by 0.12 per cent at 38.996.39.

Thursday’s session points to a positive finish for the month for Wall Street, despite a string of declines raising questions around the sustainability of the AI-driven rally. The Nasdaq is leading the pack with a 5.2 per cent gain. The S&P 500 has jumped 4.6 per cent, while the Dow has added 1.8 per cent. This would mark the Dow’s first four-month winning streak since May 2021.

Data showed the Federal Reserve’s preferred measure of inflation was stubbornly above the central bank’s target in January, but at least didn’t exceed Wall Street forecasts.

The core personal consumption expenditures price index increased by 0.4 per cent for the month and 2.8 per cent from a year ago. That matches Dow Jones estimates. Headline PCE, which includes food and energy categories, increased 0.3 per cent monthly and 2.4 per cent on a 12-month basis, compared to respective estimates for 0.3 per cent and 2.4 per cent.

Personal income rose 1 per cent month-over-month in January, well above the forecast for 0.3 per cent.

In other economic data today, pending home sales posted a surprise drop in January amid swings in mortgage rates. Pending sales declined 4.9 per cent for the month, much worse than the 2 per cent projected increase from the Dow Jones consensus.

Snowflake shed 18.4 per cent after announcing the retirement of its CEO and sharing disappointing product revenue guidance. Meanwhile, Okta popped nearly 23 per cent on strong results.
Weight loss drugmaker Viking Therapeutics announced its intention to raise cash in a $550 million offering. The Company is hoping to take advantage of the intense interest that has followed the release of phase 2 clinical trial results on Tuesday. Viking is developing a GLP-1/GIP receptor that is showing strong early results in helping patients with obesity.

Viking Therapeutics shares are down about 15 per cent in trading Thursday. That’s about 19 per cent off this week’s high, but the stock’s price is still more than double where it began the week.

Turning to US sectors, all closed higher overnight except for Health and Consumer Staples. Tech was the best performer.

In local news, NZ February ANZ consumer confidence will be released at 8am and January building permits will be released at 8.45am.
 
Futures

The SPI futures are pointing to a 0.3 per cent gain.

Currency

One Australian dollar at 8.25am was buying 64.98 US cents.

Commodities

Gold added 0.46 per cent. Silver gained 1.03 per cent. Copper added 0.10 per cent. Oil fell 0.32 per cent.

Figures around the globe

European markets closed mixed. London’s FTSE added 0.07 per cent, Frankfurt gained 0.44 per cent, and Paris closed 0.34 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei fell 0.11 per cent, Hong Kong’s Hang Seng lost 0.15 per cent and China’s Shanghai Composite gained 1.94 per cent..

Yesterday, the Australian share market closed 0.50 per cent higher at 7,698.70.

Ex-dividends
Ampol Limited (ASX:ALD) is paying 180 100
Argo Global Ltd (ASX:ALI) is paying 4 100
AMP Limited (ASX:AMP) is paying 2 20
ASX Limited (ASX:ASX) is paying 101.2 100
Centrepoint Alliance (ASX:CAF) is paying 1 100
Cleanaway Waste Ltd (ASX:CWY) is paying 2.45 0
Eumundi Group Ltd (ASX:EBG) is paying 3.5 100
Johns Lyng Group (ASX:JLG) is paying 4.7 100
Mineral Resources. (ASX:MIN) is paying 20 100
NB Global Corporate Income Trust (ASX:NBI) is paying 1.2179 0
Prestal Holdings Ltd (ASX:PTL) is paying 6 100
Redox Limited (ASX:RDX) is paying 6 100
Sonic Healthcare (ASX:SHL) is paying 43 0
Silk Logistics (ASX:SLH) is paying 2.82 100
Stanmore Resources (ASX:SMR) is paying 12.7815 100
Teaminvest Private (ASX:TIP) is paying 1.5 100
TPC Consolidated Ltd (ASX:TPC) is paying 20 100

Dividends payable
Diverger Ltd (ASX:DVR)
Dicker Data Ltd (ASX:DDR)
Hotel Property Investments (ASX:HPI)
National Storage REIT (ASX:NSR)

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.