Good Evening,

Welcome to Equity Espresso’s Daily Market Recap.

In early trade, markets looked on track for another positive session but faltered as the afternoon wore on. The leading ASX 200 index lost 23.9 pts. or 0.31% to finish at 7,737.10. The market was dragged down by the Energy (-1.62%) and Materials (-0.89%) sectors.

Energy producers felt the pinch after OPEC+ said it plans to phase out voluntary oil production cuts by October, earlier than markets anticipated. Crude Oil and Brent Crude both fell by over 1% on the news. Woodside Energy (-1.79%), Santos (-2.09%), and Viva Energy (-2.31%) all lost ground.

The Materials (-0.89%) sector fell, with heavyweights BHP Group (-1.18%), Fortescue (-1.86%) and Rio Tinto (-0.82%) all losing ground as Iron Ore future prices dropped on Monday.

Gold prices hovered around US$2,340/oz on Tuesday after trading higher on Monday, while Bitcoin edged higher to trade above US$68,000.

In company news:

• Life 360 (+1.85%) shares shot out of the black before ending the day only marginally higher after announcing plans for an initial public offering in the U.S.

• Graincorp (+4.85%) rose after data from the Australian Bureau of Agricultural forecasted east coast winter crop figures to climb to 27.1 million/t in FY25 - above historical averages of 20 million/t.

• Cooper Energy (-4.35%) reaffirmed its FY24 guidance at an Investor Briefing today but it wasn’t enough to stop shares from falling.

Wall Street

It was a mixed session on Wall Street, with the S&P 500 (+0.11%) and NASDAQ (+0.56%) finishing higher while the Dow Jones (-0.30%). A technical glitch on the New York Stock Exchange caused massive swings in the share price of Berkshire Hathaway and Barrick Gold.

Technology (+0.98%) stocks were the biggest movers during the session, while the Energy (-2.60%) sector slumped. Weaker manufacturing data than expected lifted traders’ expectations of a rate cut in September

Gamestop mania is back, with shares surging 21% after Keith Gill, aka Roaring Kitty, posted on Reddit what appeared to be his portfolio holdings of five million GameStop shares worth more than $100 million. He also owned a position of 120,000 GameStop call options. Fellow meme stock AMC (+11.09%) also rose. Paramount Global (+7.47%) lifted after reports that Skydance had agreed to terms of a merger that could be announced in the coming days.

S&P500 Sector Performance

Economic Data

• Australian Corporation profits fell 2.5% QoQ during Q1 of 2024, missing market estimates of a 0.9% decline following a 7.1% lift in Q4, 2023.

• U.K. Retail Sales rose 0.4% in May compared to a year ago, below expectations of a 1.2% increase following a 4.4% slump in April.

• U.S. ISM Manufacturing PMI fell to 48.7 in May from 49.2 in April, which was also below forecasts of 49.6

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🌎️ Around The Globe

• Boeing was forced to scrap a test flight of its Starliner spacecraft four minutes before takeoff when an automated computer system was slow to come online.

• Johnson & Johnson has been ordered to pay $260 million to an Oregon woman who claimed she developed mesothelioma, a deadly cancer associated with asbestos exposure, from using the company's talc powder.

• Live Nation is investigating a data breach that affected 560 million Ticketmaster customers. Hacking group ShinyHinters is reportedly selling the data for $500,000.

• Nvidia revealed its next-generation artificial intelligence chips only months after announcing its previous model. The new chips, dubbed “Rubin,” come only months after the announcement of its Blackwell model, which is expected to ship late in 2024.

• OPEC+ agreed to extend most of its deep oil output cuts well into 2025. The group aims to prop up prices amid slowing demand growth, high interest rates, and rising U.S. production.

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

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