Good Evening,

Welcome to Equity Espresso’s Daily Market Recap.

The Australian share market lost ground on Tuesday ahead of key inflation data out of the U.S. this week that could reshape interest rate cut expectations. The ASX 200 index finished 23.2 pts. or 0.30% lower, with eight sectors finishing lower, led by the Industrials (-0.88%) and Real Estate (-0.85%) sectors.

The Discretionary (+0.73%) sector was the best performer, led by gains from Aristocrat Leisure (+1.24%), Flight Centre (+3.78%) and Premier Investments (+1.45%).

Anglo American, the British multinational mining company, will sell its Queensland coking coal assets and exit the diamond, platinum, and nickel industries. This comes after it rejected BHP Group’s $64.4 billion takeover offer on Monday, a 15% improvement from BHP’s original offer proposed in April. Under the radical plan, America plans to produce only copper, iron ore, and crop nutrients. BHP Group shares barely budged today, while Anglo-American shares were unmoved in the early parts of Tuesday’s London session.

In company news:

• G.U.D Holdings (+12.18%) enjoyed a nice rise after stating it was on track to achieve its full-year earnings guidance of $193.5 million despite a weaker automotive market.

• Race Oncology (+6.45%) shares jumped after the company reported preclinical studies of its bisantrene and decitabine drugs. The results showed that the drugs significantly enhanced cancer cell killing across many types of cancer, including solid tumours like lung, prostate, and breast cancer.

• Healius (+4.69%) rose after refinancing its Debt Facilities to March 2027.

• Pantoro (-6.98%) dropped to $0.08 per share after finalising a $100 million capital raise at $0.08 per share.

Wall Street

The S&P 500 (-0.04%) closed slightly lower on Monday as investors took a breather after three weeks of positive gains with key inflation readings and earnings reports due this week. The NASDAQ (+0.27%) gained while the Dow Jones (-0.15%).

This week's most important economic event is the release of April’s Consumer Price Index (CPI) data, due on Wednesday. Analysts are expecting YoY CPI to increase by 3.4%. Other key data points to watch are the producer price index, retail sales and weekly jobless claims. From a company standpoint, Walmart and Home Depot will release earnings this week, which are usually a good guide for assessing the economy's strength.

Only two of the 11 S&P sectors finished in the green, with Technology (+0.48%) being the best performer, followed by Real Estate (+0.29%). Industrials (-0.45%) and Financials (-0.41%) were the biggest laggards.

Walgreens Boots Alliance (+5.4%) stock rose after Bloomberg reported that it is looking for potential buyers for its $8.8 billion U.K. Boots drugstore business. Are meme stocks back? GameStop (+74.4%) shares rocketed to an 18-month high after “Roaring Kitty”, the man behind the 2021 buying mania, awoke from his Reddit hiatus, posting for the first time in around three years. GameStop closed at $30.45 per share, still well done from the $81.25 it reached at the height of the frenzy in January 2021.

S&P500 Sector Performance

Economic Data

• Germany’s CPI was 2.2% in April, unchanged from the previous month, as it nears the European Central Bank target of 2.0%

• Japan’s Producer Prices increased by 0.9% YoY in April, inline with estimates and holding steady from March.

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Quick Singles

🌎️ Around The Globe

• Target has said it will only sell its Pride Month collection in select stores after suffering backlash and boycotts last year during the 2023 Pride season.

• Apple employees from a store in Maryland have voted in favour of authorising a strike, which would be the first work stoppage at an Apple store in the U.S.

• Huy Fung Foods, maker of the popular sriracha hot sauce, said it will stop producing the condiment until September because the red jalapeño chilli peppers used to make it are "too green."

• Uber and Lyft have started their court trial against the Massachusetts Attorney General, who has alleged that the ride-sharing companies misclassified their drivers as independent contractors to avoid providing fair pay and benefits.

• Microsoft has launched a new AI-powered app called Microsoft Places, designed to facilitate better in-office coordination for hybrid and flexible work setups by integrating with Microsoft 365.

Markets

ASX Company Movers

Commodity Prices

Bonds

Forex

Global Health Check

What The?

ETF Prices

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Australian Index

Australian Sectors

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Fixed Income

Mixed Assets

*1-year, 3-year and 5-year returns are calculated as of the end of April 2024.

Newsletter Recommendation

A Little Extra

📉 Going Down?

Top-10 shorted stocks on the ASX - as of May 8

📂 Broker Reports

1. ALS Ltd. (ALQ) - Upgrade to Add from Hold (Morgans)

2. Credit Corp (CCP) - Upgrade to Outperform from Neutral (Macquarie)

3. FleetPartners Group (FPR) - Downgrade to Neutral from Outperform (Macquarie)

4. IDP Education (IEL) - Downgrade to Neutral from Buy (UBS)

👨‍💼 Director Transactions

What are the insiders doing? (On-market trade only)

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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 decisions.