AU Morning Wrap: ASX Falls After Fed's Comments; Utilities Stocks Lead Decline

Moomoo News AU joined discussion · Nov 9, 2023 18:04

G'day, mooers! Check out the latest news on today's stock market!
• Utilities stocks lead decline
• ASX falls; News Corp dips 0.3%
• Stocks to watch: News Corp, REA Group
- Moomoo News AU

AU Morning Wrap: ASX Falls After Fed's Comments; Utilities Stocks Lead Decline

Wall Street Summary

The S&P 500's shot at its longest winning streak since 2004 appeared within grasp for much of Thursday's trading session. Then Federal Reserve Chair Jerome Powell and the Treasury market crashed the party.

Major indexes fluttered between small gains and losses in quiet trading through the early afternoon. They turned firmly into the red after an auction of government debt showed lower-than-expected demand and propelled Treasury yields higher.

The $S&P 500 Index(.SPX.US)$ finished 0.8% lower, thwarting what would have been just its 32nd nine-day winning streak since 1928, according to Dow Jones Market Data.

A 0.9% slip by the tech-heavy $Nasdaq Composite Index(.IXIC.US)$ ended a nine-day winning streak of its own. The $Dow Jones Industrial Average(.DJI.US)$ fell 0.6%, or about 220 points.

AU Market Watch

Australian shares are tilting slightly lower after Federal Reserve boss Jerome Powell pushed back on rate cut bets, rattling US markets overnight.

The $S&P/ASX 200(.XJO.AU)$ is 18 points, or 0.3 per cent lower at 6996. The All Ordinaries is also 0.3 per cent lower.

However, the benchmark remains on track to close the week out in the green after gaining in three out of the last four sessions. That would mark the index's second weekly gain in November.

Early in trade, utilities are the only of the ASX's 11 sectors to have moved more than 1 per cent in either direction. The sector is down 1.2 per cent, with sector heavyweights $Origin Energy Ltd(ORG.AU)$, $AGL Energy Ltd(AGL.AU)$ and $APA Group(APA.AU)$ all down 1 per cent or more. Banks are also falling; the financial sector is down 0.8 per cent.

Stocks to Watch

$News Corp(NWS.AU)$ has dipped 0.3 per cent to $34.58. The media conglomerate recorded declining net income in its September quarter to $US58 million from $US66 million a year earlier, while earnings per share fell to US5¢ from US7¢. The conglomerate said that three years of strong earnings and profits weren’t reflected in the share price.

$REA Group Ltd(REA.AU)$ gained has slipped 2.9 per cent to $155. The property listing site generated revenue to $341 million for the September quarter, while adjusted earnings came in at $198 million, up 13 per cent.

$Southern Cross Media Group Ltd(SXL.AU)$ has confirmed that Antony Catalano's Australian Community Medi has made an approach to merge the companies. The move comes as Southern Cross executives have been trying to drum up wider interest in the business to counter an offer from ARN Media. Shares are unmoved at 95c.