7 Heaven: Life360's Leap and REA's Roar

Good Evening,

Welcome to Equity Espresso’s Market Recap.

The Australian share market rallied on Friday after improved jobs data in the U.S. eased fears the world's largest economy is facing a recession in an up and down weak for markets. The ASX 200 index rose 1.25% or 95.7 pts. to finish an odd close of 7,777.77 (lucky 7 ey), with all 11 major sectors ending the day higher.

In an almost mirror image of earlier in the week, Technology (+3.08%), Real Estate (+2.52%) and Materials (+1.86%) were the best-performing sectors. Life 360 (+18.09%) was the best performer on the All Ordinaries, reaching an all-time high after upgrading its full-year revenue guidance. More on that later.

Wisetech Global (+2.66%), Xero (+2.61%) and Dicker Data (+3.28%) were some of the best performers in the technology sector, while Goodman Group (+3.22%) and Vicinity Centres (+3.43%) were the big movers of the REITS.

Iron Ore futures rose by almost 3% to US$102.25/t, which helped lift out the Materials sector. BHP Group (+1.62%), Fortescue (+2.16%) and Rio Tinto (+2.02%) all ended the session positively.

In company news:

• REA Group (+6.78%) flew past $200 after reporting a 24% lift in full-year Net Profit to $461 million. The company's revenue rose 23% to $1,453 million, with a big jump in Australian residential listings in Melbourne and Sydney.

• Life 360 (+18.09%) shares hit an all-time high after the company upgraded its full-year revenue guidance to $US370 million and $US378 million. The company's previous guidance was between $US365 million and $US370 million. The family tracking app added 4.3 million users last quarter and announced plans to expand its advertising business.

• NewsCorp. (+7.64%) jumped on the news, the company is looking for a buyer of its Foxtel assets. The company reported quarterly earnings, with revenue climbing 6% to $2.58 billion.

• Nick Scali (+0.13%) rose marginally despite a slump in Underlying NPAT to $82.1 million, an 18.8% fall, while revenue was down 7.8% to $468.2 million.

Wall Street

U.S. stocks rose during Thursday's session, with the NASDAQ (+2.9%) and S&P 500 (+2.3%) each making major moves after jobless claims fell more than expected in the latest week, easing concerns the labour market was weakening too fast.

Each of the 11 major sectors rose, led by Technology (+3.31%), Communication Services (+2.41%) and Industrials (+2.30%). Small-cap stocks also rallied, with the Russell 2000 index rising by 2.4%.

Eli Lilly (+9.48%) shares jumped after it smashed revenue and earning expectations, raising its full-year revenue outlook to $45.4 billion and $46.6 billion, an increase of $3 billion. The lift came thanks to strong sales from its diabetes drug Mounjaro and weight loss injection Zepbound. Warner Bros. Discovery (-8.95%) shares fell after the company wrote down a $9.1 billion non-cash impairment charge on its TV network business.

S&P500 Sector Performance

Economic Data

• China's Annual Inflation rose by 0.5% in July 2024 from 0.2% in June, beating market forecasts of 0.3% and hitting its highest figure since February.

• Frances's Unemployment rate fell to 7.3% in Q2 of 2024, better than market forecasts of 7.5%.

• U.S. Initial Jobless Claims fell by 17,000 to 230,000 during the period ending August 3, below market expectations of 240,000.

Sponsor

Take a demo, get a Blackstone Griddle

Financial operations heating up? BILL Spend & Expense can help you take control. Automate expense reports, set budgets across teams, and get real-time insights into company spend. Take a demo to learn how and we'll give you a 28" Blackstone Omnivore Griddle—so you can take control of your next barbecue, too.

Request a demo

Quick Singles

🌎️ Around The Globe

• According to data from Appfigures, ChaptGPTs app net revenue rose to $28 million during July, a 20% increase from June. The app grossed $39.9 million before paying in-app purchase fees.

• Facebook is giving creators a new way to avoid "Facebook jail" when they break the rules for the first time. Instead of getting a warning, they can now take a training course. Meta announced this change on Wednesday.

• Humane faces challenges with the AI Pin, with more returns than purchases between May and August. The current customer holdings of the product are just under 7,000 units.

• Lyft will pilot a new feature called Price Lock that will let a rider purchase a monthly subscription “that caps the price for a specific route at a specific time.”

• Madison Reed is teaming up with the University of Connecticut. The deal gives Madison Reed the right to name the basketball court and make deals with players on the UConn women’s basketball team to use their names and images.

Markets

ASX Company Movers

Commodity Prices

Bonds

Forex

Global Health Check

ETF Prices

🔍️ ETF Watch

Want to see how one of your ETFs compares to the rest?

Reply to this e-mail and tell us an ETF or two you want to be included in the tables below.

Australian Index

Australian Sectors

Global Indices & Sectors

Global Strategy

Property & Infrastructure

Fixed Income

Mixed Assets

*1-year, 3-year and 5-year returns are calculated as of 30 June 2024.

The Last Word

How are we doing?

We always love hearing from our readers and are constantly seeking feedback.

• How are we doing with Equity Espresso?

• Is there anything you’d like to see more of or less of?

• Which aspects of the newsletter do you enjoy the most?

Hit reply and say hello - or leave us feedback in the poll below:

If you enjoyed this newsletter, forward this e-mail to a friend.

If you’re that friend, subscribe here.

DISCLAIMER: Please note that the information provided in this newsletter is for educational purposes only and should not be considered financial advice. It is not intended to encourage you to buy/sell assets or make economic decisions. We strongly recommend conducting your research before making any investment.