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S&P 500 nears all-time high with third week of gains, value stocks outpace growth, while low market volumes persist

Author

Maren Ishak
May 13, 2024

Good Morning,

Markets show mixed trends with S&P 500 nearing record highs, STOXX Europe 600 surging 3.01%, and Nikkei 225 facing marginal losses. Earnings spotlight includes Macquarie Group's 32% profit fall and Apple's $110 billion buyback. In upcoming events, Disney reports earnings, and ANZ announces a $2 billion buyback. Key news covers political donations in New Zealand and China’s Xi visit to Paris. Deal flow highlights BHP's $60 billion bid approval and SVB Financial Group's venture capital sale.

Let’s jump in!

Before The Bell

Markets

  • S&P 500 nears all-time high with third week of gains, value stocks outpace growth, while low market volumes persist (TRP)

  • STOXX Europe 600 rises 3.01% fueled by strong earnings and rate-cut optimism; DAX, CAC 40, FTSE MIB, and FTSE 100 also surge (TRP)

  • Nikkei 225 and TOPIX Index slightly down; BoJ hints at possible early rate hike amid yen weakness concerns, as U.S.-Japan interest rate differentials remain significant (TRP)

Earnings & Data

  • Macquarie Group has attributed a 32% fall in its full year profits (NBR)

  • Apple unveils record $110 billion buyback as results beat low expectations, sending its stock up 6% in extended trade. (RT)

  • Coinbase posts soaring profit on jump in crypto prices (RT)

  • Monster Beverage posts higher Q1 revenue on resilient demand, easing costs (RT)

  • Westpac: Group net profit up 20% to $562m, with decline in bank’s net interest margin and customer deposits. (NBR)

  • Spark cuts FY forecast on weak Govt & enterprise demand (NBR)

  • Tourism Holdings cuts profit guidance by 33% (NBR)

  • With 80% of the companies in the S&P 500 done reporting, the benchmark index is pacing for 5% growth in first quarter earnings per share, per FactSet. This is the biggest year-over-year increase since the second quarter of 2022. (Yahoo).

  • ANZ handed investors a A$2 billion buyback as first-half earnings missed estimates. The bank’s cash profit fell 7% to A$3.55 billion in the six months to March 31 from a year earlier, short of the A$3.63 billion average projection in a Bloomberg survey of analysts. (Bloomberg).

  • Disney (DIS) is set to report earnings Tuesday for its second quarter of fiscal 2024 before the opening bell, with investors likely to be watching for streaming subscriber growth as the company works toward profitability in its streaming business. (Investopedia).

  • European stocks rose to a fresh record as a clutch of solid company reports provided evidence that the earnings recovery is filtering through to a wider swathe of the economy. (BBG)

  • Warner Bros Discovery posts larger-than-expected loss on studio slump, weak ad market (RT)

  • Roblox cuts annual bookings forecast on muted player spending (RT)

  • Airbnb slumps as gloomy forecast fans slowdown fears (RT)

News Summary

Monday

  • The National Party raised $10.4m in donations in 2023 (RNZ)

  • Linda Jenkinson exits as chair of ASX-listed Pureprofile (NBR)

  • Huawei secretly backs US research, awarding millions in prizes (BBG)

Tuesday

  • Government unveils $1.5 billion Corrections spend (Stuff)

  • Qantas to repay customers $20 million over cancelled flights (9 News)

  • China’s Xi arrives in Paris with trade and Ukraine on agenda (Guardian)

Wednesday

  • Stuff can reveal the man police are looking for in relation to a fatal shooting on Ponsonby Road is Auckland local, Hone Kay-Selwyn. (Stuff).

  • The Ministry of Foreign Affairs and Trade says it is performing a “fundamental reset” of multi million dollar information technology project as a leaked report finds it has significant issues, including high staff turnover and relationship breakdowns. (Stuff).

  • Next few months will be ‘critical’ for economy says Westpac NZ CEO. (Herald).

Thursday

  • A power retailer and New Zealand’s electricity provider are at odds, after one claimed that there was a tightness of electricity supply - and the other said there was no such issue. (Stuff)

  • A new survey has found Australians' trust in Coles and Woolworths has plummeted after the supermarket giants suffered the worst reputational damage seen in seven years. (9 News)

  • TikTok and its Chinese parent, ByteDance, said on Tuesday (Wednesday AEST) that they had filed a lawsuit against the US government challenging a law that would force a sale or ban of the app. (AFR)

Friday

  • Kiwis asked to reduce electricity use on Friday morning, Transpower warns of power shortfall (Stuff)

  • Woolworths revokes almost 80,000 prizes awarded in error (Stuff)

  • Tesla Ramps Up Job Cuts in China as Sales Slowdown Bites (BBG)

Weekend

  • Is this NZ’s most bougie supermarket bakery? (Stuff)

  • Killara Golf Club’s greenkeeper house sells for $700,000 above reserve (AFR)

  • US set to impose 100pc tariffs on Chinese EVs (AFR)

Deal Flow

Investments / M&A

Australia & New Zealand

  • Australian Unity has called in Cushman & Wakefield’s alternative capital markets team to shop one of its biggest investor’s units in its healthcare trust, in hopes of closing the book on an ugly period for the manager. (AFR)

  • Street Talk understands home and motor insurance provider Royal Automobile Club of Queensland has called in its old friends at Bank of America to fire up a sale. (AFR)

  • BHP gets green light for improved Anglo bid of $60 billion AUD (AFR)

Key Global

  • U.S. regulators gave the go-ahead on Thursday to Exxon Mobil's $60 billion purchase of Pioneer Natural Resources, but barred Pioneer's former CEO from Exxon's board on allegations he attempted to collude with OPEC to raise oil prices. (RT)

  • The U.S. Department of Justice is seeking more details and documentary materials as part of an antitrust review of Nippon Steel's proposed $15 billion takeover of U.S. Steel, the American firm said on Thursday. (RT)

  • Sabadell's board meets to analyse BBVA bid proposal of 12 billion Euros (RT)

  • EQT to buy digital consultancy Perficient for about $3 billion (RT)

  • US utility Allete goes private in $6.2 billion deal. (Reuters)

  • Wood Group Rejects £1.4 Billion Takeover Offer From Sidara (BBG)

Other Global

  • U.S. lender SVB Financial Group says that an entity affiliated with Pinegrove Capital Partners will acquire its venture capital business, SVB Capital for an undisclosed amount. (RT)

  • KKR to buy India's Healthium Medtech at $839 mln valuation (RT)

  • Norway’s Statkraft, a renewable energy producer, shops for 1.7GW Aussie pipeline (AFR)

  • Quadrant dips into Fortitude’s $300m-plus commercial food biz (AFR)

  • Apple, opens new tab cofounder Steve Wozniak's space data startup, Privateer, has raised $56.5 million and also acquired the analytics firm Orbital Insight, a merger that will add mapping and intelligence services to Privateer's space data offerings. (RT)

  • Sony Group, others eyeing buyout of Infocom, Bloomberg News reports (RT)

  • Fincantieri to buy Leonardo's submarine business for 250-300 mln euros - sources (RT)

  • PSC takeover delivers $350m payday for insurance broker (AFR)

  • Investors are set to pile into Australia’s first green bond (AFR)

VC & Fundraising

  • Sydney AI customer bot start-up raises from Peak XV (AFR)

  • Steve Wozniak's space data start-up, Privateer, has raised $56.5 million and also acquired the analytics firm Orbital Insight, a merger that will add mapping and intelligence services to Privateer's space data offerings. (Reuters)

    Self-Driving Car Start-up Wayve Raises More Than $1 Billion From Investors Including SoftBank, Nvidia. (WSJ)

  • A California startup that’s making cocoa-free chocolate in a bid to sidestep the volatility of commodities markets has raised $52 million in a funding round. (BBG)

Equity Raises

Key Global

  • Billionaire Kumar Mangalam Birla’s Hindalco Industries Ltd. is considering seeking about $1.2 billion in a planned initial public offering of US aluminum products maker Novelis Inc., people familiar with the matter said, in what could be one of the year’s biggest share sales. (BBG)

Other Global

  • Metroglass to raise at least $15m to reduce debt, CEO resigns (NBR)

  • Financy in cash call for workplace equality SaaS platform (AFR)

  • Geoff Wilson buys 6pc of Australian Unity Office Fund; Bells on ticket (AFR)

Debt, Restructuring & Bankruptcy

  • EuroCity, a Napier car and boat dealer in liquidation owes close to $1.2 million to 148 creditors (Herald)

  • Cryptocurrency exchange FTX has amassed billions of dollars more than it needs to cover what customers lost in its November 2022 collapse, setting them up to receive full recoveries, plus interest, a rare outcome in US bankruptcy proceedings. (BBG)

The Daily Deck is sponsored by Industrial Equity, LLC

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