Good Evening,

Welcome to Equity Espresso’s Daily Recap. 

The Australian market fell again Tuesday, with another sell-off in the Materials (-1.1%) and Technology (-1.80%) sectors sending the ASX 200 index 44.3pts. or 0.58% lower to 7,581.60.

Energy (+0.44%) stocks were the only sector to finish in the green as WTI crude oil futures rose to around US$73/bbl on Tuesday. Woodside Energy (+0.78%), Santos (+0.38%) and Ampol (+0.49%) all led the sector higher.

The Reserve Bank of Australia (RBA) has decided to keep the cash rate unchanged at 4.35%. However, the bank mentioned that the possibility of tightening monetary policy further could not be ruled out due to the persistently high inflation. Michele Bullock, the governor of RBA, stated that the central bank needs more convincing before considering easing monetary policy.

One of the Aussie retailers in the news was Nick Scali, whose shares jumped 16.6% to $14 after the furniture retailer beat its profit forecasts, reporting a 29% fall to $43 million in the six months ending December. Myer surged 14.3% to $0.76 after reporting better-than-expected sales, saying it expects first-half net profit for the 26 weeks ended January 27 to be between $49 million and $53 million.

West African Resources was one of the biggest fallers today, with the gold producer plunging 10.6% to $0.84 after it said it expected higher all-in sustaining costs for this year at $US1,300 per ounce. The miner also cut its production guidance to between 190,000 to 210,000 ounces.

Wall Street

U.S. stocks fell sharply on Monday after Federal Reserve chairman Jerome Powell said the central bank likely won’t cut rates in March. The S&P 500 fell 1.61%, while the NASDAQ (-2.23%) saw a heavier drop. Nvidia continued to march upwards despite the broader market sell-off, rising by 4.8% to $693.22 after Goldman Sachs raised its price target of the chipmaker to $800.00.

Drug Manufacturer Catalent rose 9.7% to $59.82 after it agreed to be taken over by Danish giant Novo Nordisk in an all-cash deal at $63.50. Novo Nordisk shares rose by more than 4% on the announcement.

Mcdonald's shares slipped 3.7% after missing analysts' revenue expectations for December. McDonald’s posted adjusted earnings of $2.95 per share on $6.41 billion in revenue. Analysts had expected earnings of $2.82 per share and $6.45 billion in revenue.

Economic Data

• Australian Retail Sales fell by 2.7% in December compared to the prior month after growing by 1.6% in November. It was the steepest drop in retail trade since August 2020, missing market estimates of a 0.1% rise.

• United Kingdom Retail Sales rose 1.4% during January from the prior year, slowing for the second straight month following a 1.9% rise during December.

• Japanese Household Spending declined by 2.5% YoY during December, worse than market consensus, which estimated a 2.1% fall. This followed a 2.9% drop in November, marking the 10th consecutive month of decreases.

Sponsor

Leadership News That is Smart & Fun

Get the latest leadership news and trends with a free newsletter every Mon & Fri! Designed for time-strapped managers, we keep things informative, enjoyable and brief.

Join the Boss Brief Program (one-click subscribe) ⬇️ 

Quick Singles

🌎️ Around The Globe

• Alphabet is seeking external investment for GFiber, its Wi-Fi and internet connectivity business in parts of the United States. GFiber competes with larger U.S.-based internet service providers, including Comcast, Verizon Communications, and AT&T.

• Toyota Motors raised its full-year operation profit forecast by nearly 9% after its third-quarter earnings beat analysts' estimates, thanks to stronger sales from high-margin cars and hybrid vehicles.

• Snap will cut 10% of its workforce, affecting around 528 employees, ahead of its quarterly earnings on Thursday, continuing the trend of tech layoffs.

• The Canadian government announced that it is extending its ban on foreign individuals and companies from buying residential property in Canada. The rule was initially introduced in 2022 and will now remain in effect until the start of 2027. The rule bans foreign nationals and commercial entities are prohibited from purchasing residential property in Canada.

• Spotify has inked a new deal with podcaster and comedian Joe Rogan, which is estimated to be worth about $250 million. However, the podcast will not be exclusive to Spotify as it was under the original deal signed in 2020.

• Boeing said that some of the 50 undelivered 737 MAX jets need more work after its supplier, Spirit AeroSystems, identified misdrilled holes on some fuselages,

Markets

ASX Company Movers

Commodity Prices

Bond Prices

A Little Extra

📉 Going Down?

Top-10 shorted stocks on the ASX - as of January 30

👨‍💼 Director Transactions

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

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.