ASX set to jump as Wall Street rallies; Retailer surges as Trump backs Sydney Sweeney ad
The S&P 500 jumped 1.3 per cent in afternoon trading to claw back more than two thirds of Friday's drop. The Dow Jones was up 493 points, or 1.1 per cent, in mid-afternoon trade, and the Nasdaq composite was 1.8 per cent higher. The Australian sharemarket is set to bounce higher, with futures pointing to a rise of 83 points, or 0.9 per cent, at the open. The ASX closed flat on Monday.
Idexx Laboratories helped lead the way on Wall Street and soared 26 per cent after the seller of veterinary instruments and other health care products reported a stronger profit for the spring than analysts expected. It also raised its forecast for profit over the full year.
Tyson Foods likewise delivered a bigger-than-expected profit for the latest quarter, and the company behind the Jimmy Dean and Hillshire Farms brands climbed 3.2 per cent.
They helped offset a 3.5 per cent drop for Berkshire Hathaway after Warren Buffett's company reported a drop in profit for its second quarter from a year earlier. The weakening was due in part to the falling value of its investment in Kraft Heinz.
The pressure is on US companies to deliver bigger profits after their stock prices shot to record after record recently. The jump in stock prices from a low point in April raised criticism that the broad market had become too expensive.
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Stocks just sank to their worst week since May not so much on that criticism but on worries that Trump's tariffs may be hitting the US economy following a longer wait than some economists had expected. Job growth slowed sharply last month, and the unemployment rate worsened to 4.2 per cent.
Trump reacted to the disappointing jobs numbers by firing the person in charge of compiling them. He also continued his criticism of the Federal Reserve, which could lower interest rates in order to shoot adrenaline into the economy. The Fed has instead been keeping rates on pause this year, in part because lower rates can send inflation higher, and Trump's tariffs may be set to increase prices for US households.
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News.com.au
13 minutes ago
- News.com.au
Lunch Wrap: ASX comes out swinging, rare earth stocks catch fire on price floor plan
ASX fires up as Wall Street sniffs rate cuts
 Rare earth stocks climb after Canberra hints floor price plan Telix tanks as ballooning costs spook investors The ASX 200 came out swinging on Tuesday, with the benchmark index jumping 1% by lunchtime in the east. Behind the rally was Wall Street, where jittery traders turned into bargain hunters as all three major indexes jumped over 1%. Back home, the good vibes got an extra kick from rising consumer confidence this morning. The ANZ-Roy Morgan index jumped to 90.6, its highest reading since the RBA started its rate-hiking crusade back in May 2022. That mood music flowed nicely into the market itself. All 11 sectors on the ASX were in the green by mid-morning, with tech, miners and consumer discretionary stocks leading the pack. Meanwhile, rare earth stocks such as Iluka Resources (ASX:ILU) and Lynas (ASX:LYC) rallied after reports the Aussie government might pull a Trump-style move and set a floor price for rare earths. The Trump administration has already announced it was pushing a price floor to boost US rare earths production and cut reliance on China. The idea of a government stepping in to backstop the price of critical minerals is enough to get investors clicking 'buy'. Among large cap news, debt collector Credit Corp Group (ASX:CCP) absolutely stole the spotlight, flying 16% after posting a 16% jump in full-year profit to $94.1 million. Shipbuilder Austal (ASX:ASB) lifted 6% as it locked in a sovereign defence shipbuilding role with the federal government, and upgraded earnings guidance to not less than $100 million. The move came hot on the heels of news that Japan has scored a $10 billion deal to build three stealth frigates for the Royal Australian Navy. Meanwhile, Telix Pharmaceuticals (ASX:TLX) took a savage 20% beating after revealing that operating expenses had ballooned in the first half of FY25. The company, which recently switched to reporting in US dollars, flagged that OPEX (excluding R&D) will hit about 36% of revenue … which spooked the market. ASX SMALL CAP WINNERS Here are the best performing ASX small cap stocks for August 5 : Security Description Last % Volume MktCap TKL Traka Resources 0.002 100% 63,225,692 $2,125,790 SRJ SRJ Technologies 0.006 50% 4,202,913 $2,778,987 HMD Heramed Limited 0.017 42% 16,673,347 $10,507,233 THB Thunderbird Resource 0.014 40% 7,657,666 $3,897,414 AUK Aumake Limited 0.004 33% 145,012 $9,070,076 EOS Electro Optic Sys. 3.930 33% 7,207,276 $569,208,692 M4M Macro Metals Limited 0.008 25% 17,774,500 $23,864,505 TRP Tissue Repair 0.350 25% 137,781 $16,930,156 SIS Simble Solutions 0.005 25% 1,000,000 $4,329,321 FAL Falconmetalsltd 0.598 22% 2,367,091 $87,003,080 MEG Megado Minerals Ltd 0.039 22% 243,144 $20,661,864 ALR Altairminerals 0.006 20% 41,540,415 $21,483,721 CUL Cullen Resources 0.006 20% 250,328 $3,467,009 FRX Flexiroam Limited 0.006 20% 81,250 $7,586,993 CCP Credit Corp Group 18.290 20% 786,540 $1,038,700,223 ZNC Zenith Minerals Ltd 0.037 19% 670,906 $16,413,120 WTM Waratah Minerals Ltd 0.470 19% 2,587,983 $92,237,345 TEM Tempest Minerals 0.007 17% 49,206 $6,610,770 TZL TZ Limited 0.055 15% 59,326 $13,469,477 RKN Reckon Limited 0.595 14% 531,134 $58,913,313 AZL Arizona Lithium Ltd 0.008 14% 2,118,093 $37,662,201 CTO Citigold Corp Ltd 0.004 14% 100,000 $10,500,000 RGL Riversgold 0.004 14% 150,440 $5,892,994 Software firm SRJ Technologies Group (ASX:SRJ) has locked in $1.38 million from institutional investors at $0.004 a pop, with strong backing from existing shareholders. The retail component set to raise a further $1.15 million when it opens on 8 August. Funds will help SRJ kick off a 50:50 joint venture in the Middle East worth over US$6 million. Electro Optic Systems (ASX:EOS) has landed a EUR 71.4 million (around $125 million) export order from a European NATO member for its new 100kW high-power laser weapon system, designed to take down drone swarms. It's the world's first export order for a laser of this class, with delivery set for 2025-2028. Macro Metals (ASX:M4M) has locked in $2 million from new and existing professional investors at 0.7 cents a share. Non-exec chair Tolga Kumova is chipping in $311k of that, pending shareholder approval in November. The funds will go towards exploration at the Turner iron ore project, technical services at the Extension iron project, and ramping up its mining services arm. Falcon Metals (ASX:FAL) has hit visible gold in multiple stacked veins at its Blue Moon prospect, just north of the 22Moz Bendigo Goldfield. The third wedge hole is drilling right down the fold hinge, and has struck quartz veining, sulphides, and what looks like a 7.6m saddle reef. Assays are pending. And, Boss Energy (ASX:BOE) is still licking its wounds after last week's brutal 44% crash, triggered by a cost and production downgrade at its Honeymoon uranium project. In a formal reply to the ASX today, Boss defended its disclosure timing, saying it only finalised the new guidance on July 27, one day before releasing it. Shares rose 5%. IN CASE YOU MISSED IT positive case report has highlighted the therapeutic potential of Argent BioPharma's (ASX:RGT) cannabinoid therapy CannEpil in treatment-resistant epilepsy. As Australia's digital economy rapidly expands, new research reveals critical digital skill gaps that could unlock $25 billion in productivity gains by 2035.
Sky News AU
34 minutes ago
- Sky News AU
Nyrstar secures $135m bailout from federal, South Australia, Tasmania govts as it struggles with Chinese market distortion
An embattled metals producer will receive a $135m bailout from the federal, South Australian and Tasmanian governments as it struggles with alleged market distortions by China. Lead and zinc refiner Nyrstar, a global company which is a subsidiary of Singapore-headquartered commodities company Trafigura, has loss making ventures in South Australia's Port Pirie and in Hobart. It pushed for government assistance earlier this year amid concerns of going under. Local boss Matthew Howell has claimed that China is 'distorting global markets' and 'eroding global operating margins' which has 'imperilled the commercial viability of domestic processing' across Western nations. Industry Minister Tim Ayres and South Australian Premier Peter Malinauskas addressed reporters on Tuesday to confirm it would back the company which directly employs 1400 workers and indirectly supports 6600 jobs, according to Nyrstar. Mr Ayres said the funds would enable Nyrstar to upgrade its facilities which Mr Howell had previously said needed refreshing to compete with China. 'The maintenance and engineering upgrades are going to require hundreds of additional workers as contractors here in Port Pirie and in Hobart,' he said on Tuesday. 'That's going to make a big difference in terms of the maintenance supply chains and the economic viability of this vital industrial community.' Mr Malinauskas said the South Australian government's contribution for the Port Pirie plant was crucial for setting the location up for a 'more prosperous future' as the industry faces domination by China. 'We know there is a journey in front of us to be able to tackle the challenges we see, particularly coming out of China,' the SA Premier said. 'We should be up-front and honest about them. When people contemplate - is this an appropriate investment on behalf of taxpayers? - one also has to think about the counterfactual. 'The counterfactual would be to allow the Western world to see China consolidate all of … the world's smelting capacity, which would mean that we don't get to participate in the critical mineral and critical metal supply chain of the future.' Mr Howell has claimed the Chinese government subsidises companies to purchase Australian materials at prices local smelters could not afford. China then subsidises the processing of these materials and enforces export controls on the finished metals. The practice was crippling Nyrstar's Australian operations, according to Mr Howell who in June warned its Port Pirie operation was losing tens of millions each month and needed urgent government help. Nyrstar's Global CEO Guido Janssen said the company was particularly appreciative of the help in 'the face of extremely challenging global market conditions'. 'This support demonstrates the strategic importance of the Australian operations for sovereign capability and delivering the products needed globally for modern economies,' Mr Janssen said. 'This announcement is a credit to the teamwork and excellence of our teams at Port Pirie and Hobart and is an important step forward as part of our global focus on increasing critical and strategic metals production.' The manufacturer will receive $57.5m from the federal government, $55m from South Australia and $22.5m from Tasmania. Nyrstar produces materials that are critical for batteries, flame retardants, semiconductors and solar panels amongst other items.
Sydney Morning Herald
39 minutes ago
- Sydney Morning Herald
Miners shine as ASX jumps after Wall Street rally
On Wall Street, Idexx Laboratories helped lead the way and soared 27.5 per cent after the seller of veterinary instruments and other healthcare products reported a stronger profit for the northern spring than analysts expected. It also raised its forecast for profit over the full year. Tyson Foods likewise delivered a bigger-than-expected profit for the latest quarter, and the company behind the Jimmy Dean and Hillshire Farm brands rose 2.4 per cent. They helped make up for a nearly 3 per cent loss for Berkshire Hathaway, after Warren Buffett's company reported a fall in profit for its latest quarter from a year earlier. The drop-off was due in part to the falling value of its investment in Kraft Heinz. The pressure is on US companies to deliver bigger profits after their stock prices shot to record after record recently. The jump in stock prices from a low point in April raised criticism that the broad market had become too expensive. Stocks are coming off their worst week since May not so much because of that criticism but because of worries that Trump's tariffs may be hitting the US economy following a longer wait than some economists had expected. Job growth slowed sharply last month, and the unemployment rate worsened to 4.2 per cent. Trump reacted to Friday's disappointing jobs numbers by firing the person in charge of compiling them. He also continued his criticism of the Federal Reserve, which could lower interest rates to pump adrenaline into the economy. The Fed has instead been keeping rates steady this year, in part because lower rates can send inflation higher, and Trump's tariffs may increase prices for US households. Friday's stunningly weak jobs report did raise expectations on Wall Street that the Fed would cut interest rates at its next meeting in September. That caused Treasury yields to slump in the bond market, and they eased a bit more on Monday. The yield on the 10-year Treasury slipped to 4.19 per cent from 4.23 per cent late Friday. 'In our view, if the Fed starts to cut rates at its September meeting, we believe this would be supportive for markets,' according to David Lefkowitz, head of US equities at UBS Global Wealth Management. Loading Such hopes, combined with profit reports from big US companies that have largely come in better than expected, could help steady a US stock market that may have been due for some turbulence. Before Friday, the S&P 500 had gone more than a month without a daily swing of 1 per cent, either up or down. This upcoming week may feature fewer fireworks following last week's jobs report and profit updates from some of Wall Street's most influential companies. This week's highlights will likely include earnings reports from Disney, McDonald's and Caterpillar, along with updates on US business activity. On Wall Street, American Eagle Outfitters jumped 23.6 per cent after Trump weighed in on the debate surrounding the retailer's advertisements, which highlight actor Sydney Sweeney's great jeans. Some critics thought the reference to the blonde-haired and blue-eyed actor's 'great genes' may be extolling a narrow set of beauty standards. 'Go get 'em Sydney!' Trump said on his social media network. Wayfair climbed 12.7 per cent after the retailer of furniture and home decor said accelerating growth helped it make more in profit and revenue during the northern spring than analysts expected.
