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Welcome to Equity Espresso’s Daily Recap. 

The Aussie market fell again on Wednesday after disappointing economic data from China, and a fall on Wall Street overnight sent the ASX 200 index 0.3% or 21.7 pts. lower to 7,393.10. Five of the 11 major sectors on the ASX fell, with Energy (-1.20%) dropping the most, followed by Materials (-0.77%) and Real Estate (-0.75%). WTI Crude Oil prices fell below US$72/bbl on Wednesday as pressure from a stronger U.S. dollar overshadowed concerns about escalating tensions in the Middle East. Woodside Energy (-1.4%), Santos (-0.8%) and Karoon Energy (-2.1%) were some of the companies to lose ground today.

On the positive side of the ledger, Utilities (+0.95%) and Technology (+0.60%) were some of the sectors to finish positively. Origin Energy (+1.12%) and APA Group (+0.97%) both rose, while in the Technology space, Wisetech (+0.13%), Xero (+0.53%) and NextDC (+0.44%) all saw green.

In company news, Evolution Mining (EVN) shares sunk by 17.3% to $3.10 after it said it produced 161,073 ounces of gold in October-December at an all-in sustaining cost (AISC) of $1,618/oz while revising down its production guidance at its Red Lake mine in Canada. Lottery Corporation (TLC) shares rose 0.4% after the company appointed ex-QIC chief executive Doug McTaggart as chairman. Bapcor (BAP) shares fell by 6.2% after its Chief Financial Officer (CFO) Stefan Camphausen resigned to take a role at an unnamed company.

Wall Street

U.S. stocks ended lower on Tuesday after mixed earnings from Morgan Stanley and Goldman Sachs pressured the bank sector banks amid further sell-offs from Boeing and Apple, which weighed on the S&P 500. The S&P 500 fell by 0.37%, while the bank sector dropped 1.2% after the major U.S. banks reported lower profits on Friday.

Morgan Stanley fell 4.2% to a one-month low after it posted a lower quarterly profit, while Goldman Sachs stock rose 0.7% higher after it reported a 51% rise in profit.

Apple (-1.2%) was another heavyweight company to fall on Tuesday after it started to offer discounts on its iPhones in China in response to competition. Apple is temporarily discounting iPhones by $70 and some MacBook Air models by $112 to tempt Chinese consumers who’ve increasingly turned to domestic brands like Huawei.

Economic Data

• The Chinese economy expanded by 5.2% YoY during Q4, faster than the 4.9% increase in the previous quarter but slightly below estimates of a 5.3% increase.

• China Retail Sales increased by 7.4% during December, below market estimates of an 8.0% rise following a 10.1% jump in November.

• U.K. inflation rose to 4% during December from a near two-year low of 3.9% in November and above market estimates of 3.8%.

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Quick Singles

🪃 Local News

• The National Australia Bank has appointed receivers at two companies central to Westpac's claim of being a victim of fraudulent activity. According to Westpac's allegation, the Fresh Xpress mango and mandarin stall in Sydney's Flemington Markets falsified revenues, profits, and invoices up to $15 million between 2011 and 2020. The stall allegedly created fake invoices to obtain financing, which was transferred to farming and property interests controlled by the owner.

🌎️ Around The Globe

• Uber will shut down its alcohol delivery service Drizly, which it bought three years ago for $1.1 billion.

• Boeing says there will be more quality inspections for its 737 Max aircraft after an unused door blew off an Alaska Airlines plane mid-flight.

• Kroger’s proposed acquisition of rival Albertsons is expected to close in the first half of FY24 instead of early this year, with ongoing discussions delaying the deal’s close.

• Elon Musk posted a video on X showing Tesla's humanoid robot Optimus folding a shirt. Tesla intends to eventually deploy the robot to perform various tasks in people's homes. Still, the company plans to use it in its manufacturing operations for repetitive and dangerous tasks.

• Shell will sell its Nigerian onshore oil and gas subsidiary in Nigeria to a consortium of five local companies for up to $2.4 billion.

• China's largest private property developer, Country Garden, expects the property market to remain “weak” in 2024.

• A U.S. federal judge blocked JetBlue from taking over Spirit Airlines in what would have been a $3.8 billion deal.

   

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A Little Extra

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DISCLAIMER: None of the information provided in this newsletter should be constituted as financial advice. This newsletter is strictly for educational purposes only. It should not be taken as investment advice or a solicitation to buy or sell assets or make financial decisions. Please do your research.