AU Morning Wrap: Qantas Increases Capacity, Xero Climbs on Broker Upgrades
G'day, mooers! Check out the latest news on today's stock market!
• Nasdaq rallies to 12-month high
• Xero climbs on broker upgrades
• Stocks to watch: Xero, AMP, Qantas
- Moomoo News AU
• Nasdaq rallies to 12-month high
• Xero climbs on broker upgrades
• Stocks to watch: Xero, AMP, Qantas
- Moomoo News AU
Wall Street Summary
Stocks advanced Thursday, turning green after House Speaker Kevin McCarthy told reporters that the House of Representatives could vote on a debt-ceiling deal as soon as next week.
The $S&P 500 Index(.SPX.US$ rose 0.9% to close at its highest level since Aug. 25. The $Nasdaq Composite Index(.IXIC.US$ added 1.5%, while the $Dow Jones Industrial Average(.DJI.US$ edged higher 0.3%.
Investors have been seeking confirmation that debt-ceiling talks are progressing, after President Biden helped boost sentiment on Wednesday by expressing confidence that a default would be avoided. Treasury Secretary Janet Yellen has warned that absent a deal to raise the borrowing cap, the government could become unable to pay its bills on time by June 1.
AU Market Watch
Enterprise software bellwether Xero rose again on Friday to help the broader tech sector add 2.1 per cent.
Xero shares are up 3.9 per cent in early trade after posting its full-year profit report on Thursday, with digital players REA Group and SEEK both adding more than 1.5 per cent.
The $S&P/ASX 200(.XJO.AU$ is up 0.5 per cent, with the financials sector up 1.1 per cent and consumer discretionary stocks lifting 0.5 per cent.
The materials sector is lower, with coal miner Whitehaven down 3.3 per cent and gold miner Newcrest off 2 per cent.
Stocks to Watch
$Qantas Airways Ltd(QAN.AU$: Qantas will return more aircraft to service and lift international capacity faster than initially expected.
The airline said it would bring two Airbus A330's on from Finland's Finnair, a partner of the group via its oneworld carrier alliance, as it adds a million more seats to its international network from late October.
This will include a big capacity jump to China – Qantas will restart daily Sydney-Shanghai flights for the first time in three years from October 29, and it will increase the number of flights from Sydney and Melbourne to Hong Kong from the same time.
$Xero Ltd(XRO.AU$: Citi analyst Siraj Ahmed is buy rated on Xero after its full-year results yesterday topped the market's expectations for free cashflow and UK subscriber growth.
"We see Xero's focus (under the new CEO) on efficient growth as a step in the right direction," Citi said.
The broker upgraded its price target by 14 per cent to $120 and said it sees upside risk to consensus forecasts if Xero can deliver on the "rule of 40", where free cashflow margin plus revenue growth exceeds 40 per cent.
$Dusk Group Ltd(DSK.AU$: Candle maker Dusk said it now expects pro forma EBIT to finish between $16 million and $17 million in financial 2023 on sales between $135 million and $137 million.
Chief executive Peter King blamed the expected fall in sales and profits on the prior year on tough trading conditions as cautious consumers navigate interest rate rises and cost of living pressures.
$Core Lithium Ltd(CXO.AU$: Core Lithium says its board has approved early works funding of between $45 million and $50 million for its BP33 mine at its Finiss tenement in the Northern Territory. It said initial work is expected to be completed by the end of the first quarter of 2024.
US-based shipbuilder Austal says it has won a contract worth up to $US3.2 billion ($4.8 billion) for detail design of the Auxiliary General Ocean Surveillance Ship T-AGOS 25 Class for the United States Navy.
$Austal Ltd(ASB.AU$: Austal said the contract includes options for detail design and construction of up to seven T-AGOS 25 class ships which, if exercised, would bring the cumulative value of the contract to US$3.2 billion.
$Flight Centre Travel Group Ltd(FLT.AU$: Flight Centre has lodged a change in substantial shareholding notice, showing the interests of the Gehar investment entity linked to some of the founding families has reduced its stake in the business from 20.2 per cent to 6.2 per cent.
$AMP Ltd(AMP.AU$: The Federal Court has slapped wealth giant AMP with a $24 million fine for charging thousands of dead clients for insurance and financial advice, despite knowing they had passed away.
In one of the largest scandals uncovered by the Hayne royal commission, AMP admitted in 2018 it had collected more than $600,000 in fees from these clients, as it had no policy or system in place to stop dead clients being charged.
The bulk of the charged clients were in AMP superannuation accounts, where they were charged for life insurance despite there no longer being any life to ensure.
Listing: None
Source: Dow Jones Newswires, AFR
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