ASX set for steady open, Wall Street hits records
Stan Choe
Intel’s rally following its big earnings report led the US stock market to hit more records on Friday, while oil prices continued to await the next step in the Iran war.
The S&P 500 gained 0.8 percent, reaching an all-time high set on Wednesday. The Dow Jones fell 79 points, or 0.2 percent, and the Nasdaq composite rose 1.6 percent to its own record, thanks to a breakthrough in technology.
The Australian share market is poised for a flat open, with futures on Saturday pointing to a 3-point decline at the open. The Australian dollar was trading at US$71.36 at 5.15am (AEST).
Intel led the way and reached an all-time high, surpassing its 2000 peak during the dot-com boom. It rose 23.6 percent, its best day since 1987, after reporting much stronger results than analysts expected in the first three months of the year. CEO Lip-Bu Tan said the next wave of artificial intelligence technology is increasing the need for Intel’s chips and products, and the company’s spring profit forecast exceeded analysts’ forecasts.
Such strong profit reports helped Wall Street soar to records, with the S&P 500 jumping nearly 13 percent in less than a month. There was also hope in financial markets that the United States and Iran could find a way to prevent the worst-case scenario for the global economy due to their war.
There is a tenuous ceasefire between the two countries, but tensions between them still prevent oil tankers from passing through the Strait of Hormuz to carry crude oil from the Persian Gulf to customers around the world.
Oil prices have risen this week on concerns about the strait, but an encouraging signal came on Friday after Iran’s top diplomat said he would travel to Pakistan. That’s where officials are trying to bring the United States and Iran together for a second round of ceasefire talks.
White House press secretary Karoline Leavitt later said in an interview with Fox News Channel that President Donald Trump would send envoys Steve Witkoff and Jared Kushner to Pakistan to meet with Iran’s foreign minister.
The price of a barrel of Brent crude oil to be delivered in June remained stable for most of the day, increasing by 0.2 percent to $105.33. The barrel price of Brent oil, which was delivered in July, when more trading took place in the market, decreased by 0.2 percent to $99.13.
On Wall Street, Procter & Gamble rose 2.5 percent after reporting stronger profits than analysts expected in its latest quarter. CEO Shailesh Jejurikar said he is seeing broad-based growth across regions and products, including Bounty paper towels and Tide detergent.
That helped offset a 25.5 percent decline for Charter Communications, whose earnings in the last quarter came in weaker than analysts expected. It lost 120,000 internet customers during the three months, more than some analysts expected.
Hartford Insurance Group fell 3.7 percent after reporting that profit growth in the latest quarter fell short of analysts’ expectations.
Overall, the S&P 500 rose 56.68 points to 7,165.08. The Dow Jones Industrial Average fell 79.61 to 49,230.71, and the Nasdaq composite index rose 398.09 to 24,836.60.
In the bond market, Treasury bond yields fell as investors increased their bets on the possibility that the Fed may continue to cut interest rates later this year.
On Friday, after the US Department of Justice ended its investigation into the Fed’s current chairman, Jerome Powell, the path seemed to be cleared for Kevin Warsh, whom Trump nominated as Fed chairman.
Republican Sen. Thom Tillis of North Carolina said he would oppose Warsh until the investigation was resolved, effectively blocking her confirmation. Warsh is the choice of Trump, who has argued vociferously for lower interest rates that could help make mortgages and other types of loans cheaper.
Shots were fired as the armed suspect attempted to storm the ballroom at the White House Correspondents’ Association dinner in Washington on Sunday; As a result, Trump hurried off the stage and guests ducked for cover under their tables.
The yield on the 10-year Treasury note fell to 4.30 percent from 4.34 percent at the end of Thursday.
Confidence among US consumers remains poor, a report released this morning said. A survey by the University of Michigan found that sentiment weakened across political parties, income, age and education in April, but improved slightly after a ceasefire in the war with Iran was declared earlier in the month.
In foreign stock markets, indices across Europe and Asia were mixed. Japan’s Nikkei 225 index rose 1 percent and France’s CAC 40 index fell 0.8 percent due to the world’s two biggest moves.
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The Market Summary newsletter is a summary of the day’s transactions. Let’s each take ittoday afternoon.
