ASX 200 to edge lower, James Hardie reports record earnings, Telstra reaffirms FY24 guidance

May 21, 2024 09:02

Livewire Markets

ASX 200 futures are down 9 points top 7,879, as of 8:40am AEST.

At the end of last year, we compiled a piece on the rush (and indeed, the uselessness) of S&P 500 year-end targets. Well, we're five months into 2024, and research houses that have not already changed their targets at least once are now springing into action. The NASDAQ closed at another record high while the S&P 500 rally is estimated to have added US$12 trillion in wealth since the surge began last October.

That rally could go under one almighty test given NVIDIA (NASDAQ: NVDA) reports tonight.

Will today be the day the ASX 200 notches its record high? Locally, we're already seeing a few interesting corporate catalysts - not least the fact that James Hardie has notched up another record earnings year in spite of what's meant to be a tough homebuilding and construction market.

Let's dive in.

S&P 500 SESSION CHART

A buying flurry at the close was just enough to get the S&P 500 home with a minute gain. (Source: TradingView)

OVERNIGHT MARKETS

Nasdaq scores record close as Dow sheds 200 points
Global stocks hit record highs as more countries join in the rally
Wall Street strategists rush to revise S&P 500 targets as stocks hit fresh records
European markets close slightly higher; luxury giant Richemont up 5.3%
Treasury yields inch higher as investors look to data, Fed speaker comments
Oil prices fall as traders monitor developments in Iran after president's death
'Perfect storm' steers gold to another record high; silver jumps

INTERNATIONAL STOCKS

Microsoft announces new PCs with AI chips from Qualcomm
JPMorgan CEO Jamie Dimon signals retirement is closer than ever
Nvidia beating earnings per share expectations are worst-kept secret on Wall Street, says Evercore
Apple launches aggressive iPhone price discounts in China amid fierce Huawei competition
US regulators moving toward a new plan to significantly reduce the nearly 20% mandated increase in capital for large banks
BHP said to be mulling an improved proposal for Anglo American as time runs out in takeover saga
Tesla doing damage control to appease European leasing by offering discounts for fleet buyers

MORE ON THE MARKETS

An earnings surge could lift Dow to 60,000 and S&P 500 to 8,000, says top Wall Street strategist
UK stocks are outperforming the U.S. and one CIO says they look ‘very cheap’
Global bond rally sparked by euphoria over slower US inflation faces UK CPI reality check this week
Copper surges to its highest-ever level amid ongoing bets of looming shortages
Financials, Healthcare the stars of Europe's Q1 earnings season

ECONOMY

Debate picks up over potential for BoJ rate hike amid hawkish signals, weak yen
ECB's Kazaks warns over hasty rate cuts after June; places focus on upcoming data
BoE's Broadbent says rate cuts may come soon (Bloomberg); inflation could hit BoE's 2% target this week

ASX TODAY

James Hardie (ASX: JHX) has reported a 17% rise in full-year net income to a record $707 million. Sales and earnings also hit all-time highs for the full year. ALS (ASX: ALQ) and Technology One (ASX: TNE) also release earnings results.
Telstra (ASX: TLS) has already reiterated its FY24 guidance and provided FY25 earnings guidance (but not before it announced it was cutting 9% of its workforce).
BrainChip (ASX: BRN) and Viva Energy (ASX: VEA) host AGMs.

Key Events

Trading ex-dividend this week:

Amcor (AMC) - 21 May - $0.193
Aneka Tambang (ATM) - 21 May -$0.048
Orica Ltd (ORI) - 23 May - $0.19
Aristocrat (ALL) - 23 May - $0.36
Whitefield (WHF) - 24 May -$0.102

Economic releases:

10:30am – AUD – Westpac Consumer Sentiment
11:30am – AUD- Monetary policy meeting minutes
4:00pm – EUR – German PPI
10:30pm – CAD – CPI
Tonight – USD – FOMC members Waller, Barkin, Williams, Bostic, Barr all speaking

This Morning Wrap was written by Hans Lee and Chris Conway.

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