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Three small cap stocks that fundies tip are on the rise

Three small cap stocks that fundies tip are on the rise

As global equites flirt with record highs and investors shrug off the unpredictable nature of US President Donald Trump's trade policies, local fund managers are banking on interest rate cuts to push the smaller end of the sharemarket even higher.
The Reserve Bank of Australia has already cut the cash rate twice this year to 3.85 per cent, with at least two more tipped by Christmas. Hopes for further easing, along with a trade truce between the US and China, propelled the S&P/ASX 200 Index to a fresh high on Wednesday.
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Dow briefly hits record high on UnitedHealth's gains
Dow briefly hits record high on UnitedHealth's gains

Perth Now

time15 hours ago

  • Perth Now

Dow briefly hits record high on UnitedHealth's gains

The blue-chip Dow has briefly hit a record high, as UnitedHealth's shares jumped after Berkshire Hathaway raised its stake in the health insurer, while investors assessed mixed data to gauge the Federal Reserve's monetary policy path this year. UnitedHealth Group gained 11.6 per cent to hit a more than two-month high after Warren Buffett's company revealed a new investment in the health insurer, while Michael Burry's Scion Asset Management also turned more bullish on the company. Rising costs in the broader healthcare sector and an about 40 per cent slump in heavyweight UnitedHealth's shares this year have left the Dow lagging its Wall Street peers on the road to record highs. The price-weighted index last scaled an all-time high on December 4. This week, however, the healthcare sector is the top performer on the S&P 500 and is on track for its best weekly performance since October 2022. Other insurance stocks Centene and Molina gained 5.2 per cent each. A report showed retail sales in July rose as expected, but the University of Michigan's index tracking consumer confidence fell more than expected to 58 as inflation expectations rose. "As long as consumer spending holds up and companies are able to retain workers because of that robust spending, the flywheel can continue to spin, pushing corporate profits and stock prices higher," said Chris Zaccarelli, chief investment officer for Northlight Asset Management, speaking on the retail sales figures. In early trading on Friday, the Dow Jones Industrial Average rose 99.11 points, or 0.22 per cent, to 45,011.45, the S&P 500 lost 7.39 points, or 0.11 per cent, to 6,461.15 and the Nasdaq Composite lost 30.70 points, or 0.14 per cent, to 21,681.10. Wall Street's main US stock indexes are on track for their second week of gains, buoyed by expectations that the Fed could restart its monetary policy easing cycle with a 25-basis-point interest rate cut in September. The central bank last lowered borrowing costs in December and said US tariffs could add to price pressures. However, recent labour market weakness and signs that tariff-induced inflation was yet to reflect in headline consumer prices have made investors confident of a potential dovish move next month. Still, Chicago Fed President Austan Goolsbee said recent data reports showed a stagflationary impulse from tariffs on the economy. On the trade front, US President Donald Trump said he would unveil tariffs on steel and semiconductors next week. Applied Materials tumbled 11.3 per cent after the chip equipment maker issued weak fourth-quarter forecasts. Intel rose 3.0 per cent after a report said the Trump administration was in talks for the US government to potentially take a stake in the chipmaker. Attention was also on a meeting between Trump and Russian counterpart Vladimir Putin that markets hope could pave the way for a resolution to the Ukraine conflict. Declining issues outnumbered advancers by a 1.22-to-1 ratio on the NYSE and a 1.31-to-1 ratio on the Nasdaq. The S&P 500 posted 8 new 52-week highs and no new lows, while the Nasdaq Composite recorded 52 new highs and 45 new lows.

Fresh ASX record high approaches 9000 milestone; Ampol surges on $1.1b deal; Baby Bunting soars
Fresh ASX record high approaches 9000 milestone; Ampol surges on $1.1b deal; Baby Bunting soars

Sydney Morning Herald

time18 hours ago

  • Sydney Morning Herald

Fresh ASX record high approaches 9000 milestone; Ampol surges on $1.1b deal; Baby Bunting soars

Welcome to your five-minute recap of the trading day. The numbers The Australian sharemarket hit a fresh record high every day this week and is closing in on the 9000 milestone, with Friday's session carried by energy, banking, and mining giants. The S&P/ASX 200 gained 64.8 points, or 0.7 per cent, to close at 8938.6, with each day this week finishing higher than the last. Friday's gains came despite a middling session on Wall Street driven by a disappointing report that said US inflation at the wholesale level was worse last month than economists expected. The lifters Financials were one of the best-performing sectors of the day, climbing nearly 1.1 per cent. The big banks, which were mixed earlier in the day, all finished higher: Westpac gained 2.1 per cent, ANZ Bank rose 1.8 per cent, NAB added 0.8 per cent and even the Commonwealth Bank rose 0.6 per cent. Mining was another outperforming sector, finishing 1.1 per cent higher. Rio Tinto gained 1.4 per cent and Fortescue rose 1.3 per cent, while BHP lifted 1.1 per cent. Loading Energy stocks also rose (1.1 per cent). Santos added 1.8 per cent and Woodside added 0.2 per cent. Petrol and diesel supplier Ampol jumped 7.7 per cent after announcing a major expansion plan with the acquisition of British fuel giant EG Group's Australian petrol station network. If the $1.1 billion deal gains regulatory approval, Ampol, formerly known as Caltex Australia, would add EG's 500 fuel sites to its business, enabling it to fast-track the roll-out unstaffed, self-service petrol stations under its U-GO brand.

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