AU Morning Wrap: ASX Falls; Corporate Travel Tumbles 20%, Woolworths Drops 5%

Moomoo News AU wrote a column · Feb 20 17:41

G'day, mooers! Check out the latest news on today's stock market!
• Nvidia drags down stock market ahead of its earnings report
• ASX falls; Woolworths drops over 5%
• Stocks to watch: Woolworths, WiseTech, Santos
- Moomoo News AU

AU Morning Wrap: ASX Falls; Corporate Travel Tumbles 20%, Woolworths Drops 5%

Wall Street Summary

Nvidia's highly anticipated earnings report hasn't even landed yet, but investors retreated from the stock Tuesday at the fastest clip in months. That dragged the stock market into the red as well.

Declines were deepest in indexes that include the graphics chip maker, with the S&P 500 retreating 0.6 per cent and the tech-heavy Nasdaq Composite veering 0.9 per cent lower. The Dow Jones Industrial Average, which isn't home to Nvidia, inched down 0.2 per cent, or 64 points.

AU Market Watch

$S&P/ASX 200(.XJO.AU)$ fell at the open in line with selling on Wall Street. All three US benchmarks were lower as pre-results trading knocked the wind out of Nvidia's stock price.

Consumer staples stocks were the worst performing, down 3.2 per cent. Supermarket giant Woolworths lost over 5 per cent after an announcement that chief executive Brad Banducci will retire following 13 years at the helm.

Stocks to Watch

$Woolworths Group Ltd(WOW.AU)$: Woolworths reported a large half-year loss, reflecting various one-time writedowns, and said that its longtime chief executive would retire. It said its net loss for the roughly six months through December was 781 million Australian dollars (US$511 million), reflecting a previously flagged writedown of its New Zealand business and a loss tied to its investment in drinks and hotel company Endeavour. The figure compares with a net profit of A$845 million a year ago.

$National Australia Bank Ltd(NAB.AU)$: National Australia Bank's rose 0.8 per cent even as cash earnings dived 16.9 per cent in the December quarter to $1.8 billion, with the lender warning of growing arrears in local home lending and a slowing economy.

$Domino's Pizza Enterprises Ltd(DMP.AU)$: Domino's Pizza Enterprises rallied 3.7 per cent despite cutting its first half dividend to 55.5¢ from 67.4¢ a year ago after net profit fell by 9.2 per cent to $58 million in the six months ended December 31.

$WiseTech Global Ltd(WTC.AU)$: Software provider WiseTech surged 8.7 per cent after posting a five per cent increase in statutory net profit to $118.2 million, allowing the company to lift interim dividend to 7.7¢, up 17 per cent. It also reconfirmed guidance for fiscal 2024.

$Scentre Group(SCG.AU)$: Westfield owner and operator Scentre rose 2.4 per cent has recorded a 41.8 per cent drop in its annual statutory profit to $174.9 million after booking an unrealised $1 billion writedown on the value of its shopping centre portfolio.

$Santos Ltd(STO.AU)$: Oil and gas giant Santos dropped 1.1 per cent when it posted a 42 per cent dip in underlying net profit to $US1.423 billion ($2.2 billion) for the year to December 31 thanks to weaker gas prices and sales, but rewarded shareholders with a 16 per cent increase in the final dividend of US17.5¢.

$Charter Hall Group(CHC.AU)$: Property fund manager Charter Hall edged lower 0.2 per cent after it swung to a $190 million loss in 2024 first half, after absorbing a $282.3 million writedown against its real estate.

$The Lottery Corp Ltd(TLC.AU)$: The Lottery Corporation advanced 3.2 per cent following a 26 per cent boost to profits at $217.4 million, despite weak economic conditions affecting the amount of money being spent on weekly lotteries and stratchies.

$Corporate Travel Management Ltd(CTD.AU)$: Corporate Travel Management's tumbled 19.8 per cent even as its revenue and other income jumped 25 per cent to $363.7 million in 1H24. The travel agency posted a 96 per cent boost to its underlying earnings before tax and amortisation at $100.7 million.