AU Morning Wrap: ASX Drops; Treasury Wine Shares Tumble

Moomoo News AU wrote a column · May 24, 2023 19:28

G'day, mooers! Check out the latest news on today's stock market!
• Debt Ceiling Drives Dow to Fourth Session of Losses
• ASX drops; Treasury Wine shares tumble
• Stocks to watch: Treasury Wine Estate, BHP, Fortescue Metals
- Moomoo News AU

AU Morning Wrap: ASX Drops; Treasury Wine Shares Tumble

Wall Street Summary

U.S. stocks extended declines Wednesday, reflecting rising anxieties about the debt ceiling as lawmakers continued negotiations to raise the borrowing limit.

The Dow Jones Industrial Average had a fourth-straight session of losses. The $Dow Jones Industrial Average(.DJI.US)$ fell 0.8%, or 255.59 points, while the $S&P 500 Index(.SPX.US)$ dropped 0.7% and the Nasdaq Composite slid 0.6%.

AU Market Watch

The $S&P/ASX 200(.XJO.AU)$ fell 0.6 per cent, or 43.3 points to 7161.9 at open after markets across Europe and the US sold off sharply.

The materials sector was the worst performing sector as miners continue to record losses amid weakened iron ore prices. $BHP Group Ltd(BHP.AU)$ shares fell 1.1 per cent. $Fortescue Ltd(FMG.AU)$ shed 2.4 per cent. $Rio Tinto Ltd(RIO.AU)$ dropped 0.9 per cent.

Treasury Wine Estate was the worst performing stock, its shares tumbled 5.3 per cent after chief executive Tim Ford said sales will be down overall across the group by 2 to 3 per cent.

Stocks to Watch

$Woodside Energy Group Ltd(WDS.AU)$: Woodside Energy is eyeing a share of the spoils on offer from a US move to back natural gas projects in the Indo-Pacific that boost energy security.

While the spotlight has been on opportunities for the critical mineral sector as part of a Biden administration cash splash on decarbonisation, it is also moving to fund gas projects that supply "Japan, India, and other like-minded countries in the Indo-Pacific region".

$Fonterra Shareholders Fund(FSF.AU)$: Dairy company Fonterra has reported a boost to its profit after tax of $NZ1.33 billion ($1.28 billion) in its latest quarterly update.

The New Zealand-based company said it was up $NZ854 million on the previous corresponding period, and includes the gain on sale from Soprole of $260 million.

$Treasury Wine Estates Ltd(TWE.AU)$: Treasury Wine Estates says it's expecting the company's earnings before interest and tax and SGARA to grow from a range of 11 to 13 per cent to $580 to $590 million in FY23.

The winemaker in its latest outlook said that the EBITS margin was approximately 23.5 per cent, up from the prior financial year's 21.1 per cent.