AU Morning Wrap: ASX Rallies; Block Climbs 22% After Revenue Beat

Moomoo News AU wrote a column · Nov 2, 2023 18:36

G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 marks best day since April
• ASX rallies; Macquarie drops
• Stocks to watch: Block, Macquarie, Regal
- Moomoo News AU

AU Morning Wrap: ASX Rallies; Block Climbs 22% After Revenue Beat

Wall Street Summary

Stocks rose broadly Thursday, gaining for a second day after Federal Reserve Chair Jerome Powell signaled that the central bank may be done lifting interest rates for now.

The $S&P 500 Index(.SPX.US)$ rose 1.9% in its biggest gain since April. The $Dow Jones Industrial Average(.DJI.US)$ added more than 560 points, or 1.7%, while the $Nasdaq Composite Index(.IXIC.US)$ was 1.8% higher.

All 11 S&P 500 sectors closed higher, with energy, utilities and consumer-discretionary shares among the top advancers. The rate-sensitive real-estate sector led the way, rising 3.1%. Mortgage rates fell slightly this week, dropping for the first time in nearly two months.

Bond yields retreated. The yield on the benchmark 10-year Treasury note fell to 4.668% from 4.79% Wednesday. Yields fall as bond prices rise.

AU Market Watch

The Australian sharemarket rallied at the open, tracking strong gains on Wall Street, as hopes the Federal Reserve may finally be done with raising interest rates gathered momentum.

The benchmark $S&P/ASX 200(.XJO.AU)$ rose 1.1 per cent or 74.6 points to 6979, buoyed by 11 sectors in the green. US equities advanced a day after the central bank hinted it may be done with monetary tightening. Traders are now awaiting Friday’s key US Non-farm payrolls report.

Stocks to Watch

$Macquarie Group Ltd(MQG.AU)$: Macquarie Group dropped 1.8 per cent after it reported a 39 per cent drop in half-year net profit to $1.4 billion and declared an interim dividend of $2.55 a share. Revenue was booked at $7.9 billion.

$Lendlease Group(LLC.AU)$: Property developer Lendlease jumped 2.1 per cent following the news that the company and Google will end its agreement to help develop the internet giant’s four major districts in the San Francisco Bay Area.

$Block Inc(SQ2.AU)$: Afterpay parent Block climbed 22 per cent after the company boosted projections for adjusted profit. The company forecasts adjusted earnings before interest, taxes, depreciation and amortisation for 2023 to be in the $US1.66 billion ($2.58 billion) to $US1.68 billion range.

$Regal Partners Ltd(RPL.AU)$: Hedge fund Regal Partners acquired PM Capital, the 25-year-old Sydney-based investment firm, a move that will boost its assets under management to $10.8 billion.