AU Morning Wrap: ASX Soars After US CPI Slows; Real Estate, Tech Stocks Rally

Moomoo News AU wrote a column · Nov 14, 2023 17:44

G'day, mooers! Check out the latest news on today's stock market!
• S&P 500 rallies to 2-month high as US inflation eases to 3.2%
• ASX soars; real estate, tech stocks rally
• Stocks to watch: Seek, Allkem, Life360
- Moomoo News AU

AU Morning Wrap: ASX Soars After US CPI Slows; Real Estate, Tech Stocks Rally

Wall Street Summary

An autumn stock-market rally accelerated Tuesday after fresh data showed that inflation cooled more than expected, powering big gains across stocks and government bonds.

Consumer prices were unchanged in October from the previous month and up 3.2% from a year ago, less than what economists surveyed by The Wall Street Journal had forecast. The figures helped reassure investors that the Federal Reserve is likely done raising rates and put a soft landing for the U.S. economy in view.

The $S&P 500 Index(.SPX.US)$ jumped 1.9%, bringing its November gains to 7.2%. The tech-heavy $Nasdaq Composite Index(.IXIC.US)$ added 2.4%, pushing its advance this month to almost 10%. A jump in shares of Home Depot and Goldman Sachs helped send the $Dow Jones Industrial Average(.DJI.US)$ up 490 points, or 1.4%, Tuesday, and 5.4% for the month. The S&P 500 and Nasdaq recorded their biggest one-day jumps since April.

AU Market Watch

Australian shares have jumped more than 100 points at the open of trading, tracking strong gains in New York trading, after the latest US inflation report bolstered speculation that interest rates might have peaked.

$S&P/ASX 200(.XJO.AU)$ is 113 points, or 1.6 per cent, higher at 7119.8. The All Ordinaries is also 1.6 per cent higher.

All 11 sectors are in the green, led by the interest rate sensitive real estate sector, which is up 3.3 per cent. Materials and tech stocks are also pushing the index higher.

Stocks to Watch

$Life360 Inc(360.AU)$: Family tracking platform Life360 is the best performing on the benchmark, up 9 per cent to $9.15. The company reported $78.6 million in revenue in its third quarter, up 38 per cent compared to last year’s same period.

$Seek Ltd(SEK.AU)$: Seek is up 5.9 per cent to $9.13 after holding firm on its fiscal 2024 outlook as the job listing website begins its annual general meeting today.

$Allkem Ltd(AKE.AU)$: Australia's foreign investment regulator has approved the proposed $16 billion merger between mining groups Allkem and Livent. Allkem is up 6 per cent to $9.14.

$Nufarm Ltd(NUF.AU)$: Farm chemicals and seeds group Nufarm has risen 6.7 per cent to $4.75 after posing better-than-expected profit and revenue figures in its full-year report.

$Aristocrat Leisure Ltd(ALL.AU)$: Poker machine giant Aristocrat Leisure has posted a net profit after tax of $1.2 billion as growth in North America offset challenging market conditions in Australia and New Zealand. Shares have slipped 0.6 per cent to $39.64.

$VGI Partners Ltd(VGI.AU)$: Meanwhile, founder Rob Luciano has resigned from the listed hedge fund VGI Partners, which was merged with Phil King's Regal Funds Management last year.