AU Morning Wrap: ASX races to six-month top, Qantas flies higher on profit upgrade

Wall Street Summary
US stocks rose as upbeat earnings from $Best Buy(BBY.US)$, $American Eagle(AEO.US)$ and $Abercrombie & Fitch(ANF.US)$ helped offset a dour outlook from $Dollar Tree(DLTR.US)$. Resource stocks led as commodity prices rebounded from worries earlier in the week about rising Covid cases in China.

The $S&P 500 Index(.SPX.US)$ rallied 54 points or 1.36 per cent. The $Dow Jones Industrial Average(.DJI.US)$ gained 398 points or 1.18 per cent. The $Nasdaq Composite Index(.IXIC.US)$ added 150 points or 1.36 per cent.

AU Market Watch
$S&P/ASX 200(.XJO.AU)$ leapt 0.79 per cent to a six-month high in early trade on Wednesday, tracking a rally on Wall Street.

Stocks to Watch
$Coles Group Ltd(COL.AU)$: Supermarket chain Coles Group has shaved 30 minutes from its click and collect home delivery service and promises to get grocery orders ready for collection in under an hour as the battle for consumer convenience ramps up.

$CSL Ltd(CSL.AU)$: Wilsons values CSL's drug development pipeline at $62 per share and its core business at $265 per share, helping it to reach a $327 price target and justifying an overweight rating.

$Qantas Airways Ltd(QAN.AU)$: Qantas is lifting its pre-tax profit forecasts to up to $1.45 billion in the half year to December 31 as consumers put a "high priority on travel ahead of other spending categories" ahead of the first end-of-year holiday rush since the start of the pandemic.

$Mesoblast Ltd(MSB.AU)$: Mesoblast shrunk its quarterly losses to US$16.9 million, down from $US22.7 million in the three-month period to September 20.

$Chalice Mining Ltd(CHN.AU)$: Chalice Mining said drilling showed there was potential for "material resource growth" at its 100 per cent-owned Julimar Nickel-Copper-Platinum mine in Western Australia.

$Serko Ltd(SKO.AU)$: Serko widened its first half net losses after tax by 30 per cent to $NZ19.7 million ($18.2 million).

EBITDAF losses increased by 44 per cent to $NZ16.9 million in the six-months to September 30, while its total income more than doubled to $NZ19.4 million compared to a year ago.

$HMC Capital Ltd(HMC.AU)$: HMC Capital reaffirmed its dividend guidance of 12¢ for the 2023 financial year, in-line with last year, as it looks to re-invest retained earnings into “high ROE growth opportunities”.

The asset manager said its well-capitalised and diversified platform meant that it was well positioned to take advantage of investment opportunities.

Ex-dividend: $Embark Early Education Ltd(EVO.AU)$, $US Student Housing REIT(USQ.AU)$

Dividends Paid: $Brickworks Ltd(BKW.AU)$, $Janus Henderson Group PLC(JHG.AU)$

Commodities
• Iron ore futures fell 0.5% to US$91.75 a tonne.