AU Morning Wrap: New Hope leaps on surging profits; lithium stocks rally

Wall Street Summary
US stocks rallied ahead of a two-day Federal Reserve meeting that is expected to conclude with a rate increase of at least three-quarters of a percentage point. Dip-buyers took advantage of the cheapest stock prices since July.

The $S&P 500 Index(.SPX.US)$ overcame early pressure to advance 27 points or 0.69 per cent. The $Dow Jones Industrial Average(.DJI.US)$ flipped an opening loss of 263 points into a gain of 197 points or 0.64 per cent.

The $Nasdaq Composite Index(.IXIC.US)$ put on 87 points or 0.76 per cent. The tech index was down as much as 0.9 per cent at the open.

The market opened under pressure as treasury yields hit a decade high. The yield on the ten-year government treasury topped 3.51 per cent for the first time in 11 years.

AU Market Watch
Australian shares are set to lift at the open after U.S. stocks rose ahead of this week's Federal Reserve interest-rate decision. ASX futures are up by 0.8%, suggesting that the benchmark S&P/ASX 200 index will recover the prior session's 0.3% loss and then some.

Australian shares opened higher this morning. The $S&P/ASX 200(.XJO.AU)$ gained 1.1 per cent to 6794.1 as of 10:16 am.

Stocks to Watch
$Fortescue Ltd(FMG.AU)$: Billionaire Andrew Forrest's Fortescue Metals will spend $US6.2 billion ($9.2 billion) on renewable energy projects to save over $1 billion in costs per year and hit its 2030 net-zero emissions target.

$KMD Brands Ltd(KMD.AU)$: Outdoor clothing retailer KMD Brands Ltd. reported a 40% drop in annual profit, but said sales have picked up sharply in recent months as key markets relax pandemic restrictions and treat Covid-19 as endemic.

The company, which counts Kathmandu among its apparel brands, reported a net profit of 36.8 million New Zealand dollars (US$21.9 million) for the 12 months through July. Sales rose by 6.2% to a record NZ$979.8 million.

$IDP Education Ltd(IEL.AU)$: IDP Education has entered into a binding agreement to acquire student placement agency Intake Education for up to $83 million.

Intake has operations across Nigeria, Ghana, Kenya, Philippines, Thailand, Taiwan, India and the UK.

$New Hope Corp Ltd(NHC.AU)$: New Hope's net profit jumped over 1000 per cent to $983 million in the year to 31 July, up from $79.4 million the year prior, driven by an increase in thermal coal prices to $281.84/t in 2022 from $101.36/t in 2021.

$Tabcorp Holdings Ltd(TAH.AU)$: Former Tabcorp and Tatts Group executive Frank Makryllos is getting back into the gaming venue technology sector via the acquisition of Tabcorp's eBet.

It is understood Makryllos and his partners will pay $62 million for eBet, or about 10-times earnings, in a deal signed on Monday night.

Ex-dividend: $Briscoe Group Ltd(BGP.AU)$, $Euroz Hartleys Group Ltd(EZL.AU)$, $Hancock & Gore Ltd(HNG.AU)$, $Vanguard All-World ex-US Shares ETF(VEU.AU)$, $Vulcan Steel Ltd(VSL.AU)$

Dividends paid: $Beacon Lighting Group Ltd(BLX.AU)$, $Coronado Global Resources Inc(CRN.AU)$, $Dalrymple Bay Infrastructure Ltd(DBI.AU)$, $GR Engineering Services Ltd(GNG.AU)$, $McGrath Ltd(MEA.AU)$, $Shaver Shop Group Ltd(SSG.AU)$, $Yancoal Australia Ltd(YAL.AU)$

Commodities
• Iron ore futures fell 0.4% to US$98.65 a tonne on Monday.

• Oil prices inched higher, reversing a steep 3% decline in early trade.