News archive

US stocks edged higher yesterday, as a Donald Trump presidency is seen as a good thing for markets. The assassination attempt on Trump has boosted his chances of winning the White House, with betting markets saying his odds are now over 70%.

The S&P 500 hovered near its all-time highs, while the Russell 2000, representing smaller companies, added 2% yesterday. Trump Media surged 31%, and conservative video network Rumble rose 21%. Trump's improved odds boosted oil producers, gun makers, and private prisons. We could be witnessing the return of the Trump trade. He might be good for markets, but his brand of politics is bad for global cohesion.

In other company news, Apple reached a new high after being named a top pick at Morgan Stanley, while Nvidia fell. Goldman Sachs Group gained 2.6% as it reported a profit surge, but plans to slow down buybacks. Lastly, BlackRock saw $51 billion in client inflows to its long-term investment funds in the second quarter, bringing the firm's total assets under management to a record $10.6 trillion, solidifying its position as the world's largest money manager.

Yesterday, the JSE All-share closed up 0.57%, the S&P 500 rose 0.28%, and the Nasdaq was 0.40% higher.

The US stock market continued its upward trend last week, while treasuries recovered their losses for the year after new economic data bolstered expectations that the Federal Reserve will cut rates in September. On Friday, around 80% of the stocks in the S&P 500 rose, pushing the index back above the 5 600 mark, following a dip in the previous session. Smaller companies outperformed the larger megacap stocks, which resulted in their best week of 2024 so far.

Wells Fargo dropped 6% due to higher-than-expected costs impacting its results. JPMorgan Chase saw a 1.2% decline in its shares after reporting lower income. Citigroup's profit increased, but the bank set aside more provisions for potential losses in its credit card business, causing its shares to fall by 1.8%.

In other company news, Alphabet is in talks to acquire cybersecurity startup Wiz in a $23 billion deal, its largest purchase on record. Elsewhere, Ericsson reported strong second-quarter results, with sales and profitability exceeding expectations. The boost came from increased licensing revenue and successful cost-cutting measures.

On Friday, the JSE All-share closed up 0.73%, the S&P 500 rose 0.55%, and the Nasdaq was 0.63% higher.

US markets got punched in the face on Thursday, for reasons that are not entirely clear. Muted inflation numbers were released, and the initial reaction was positive, but stocks fell as traders rotated out of large cap stocks to smaller players in the S&P 500. The small-cap Russell 2000 index surged 3.6%, its best day in 2024.

The "Magnificent Seven" fell by the most since July 2023, with Nvidia down 5.6% and Meta dropping 4.1%. However, the S&P 500 and Nasdaq are still up 17% and 22% for the year, and we have to take the rough with the smooth.

US inflation cooled significantly in June, marking the slowest pace since 2021. This was largely due to a long-awaited slowdown in housing costs, providing a strong indication that the Federal Reserve might cut rates soon. Sticky inflation is coming unglued.

In company news, Tesla sank 8%, snapping an 11-session winning streak on news that its robotaxi unveiling will be delayed to October. Elsewhere, Delta Air Lines fell 4% after the company reported a surprising drop in profit for the second quarter, despite record levels of air travel.

In summary, the JSE All-share closed up 0.81%, but the S&P 500 flopped by 0.88%, and the Nasdaq got thrashed, ending 1.95% lower.

US markets hit fresh all-time highs on Wednesday, driven by investor confidence that interest-rate cuts are imminent. The S&P 500 and Nasdaq each rose by more than 1%, and the MSCI World index reached record levels. The gains were spread evenly across all eleven sectors of the market, amongst the big caps, AMD (+3.9%), Nvidia (+2.7%) and Apple (+1.9%) were the standouts.

In company news, Alphabet (better known in our office as Google) has decided to halt its plans to acquire HubSpot. Shares of HubSpot, a customer relationship management company, dropped by 19%. Shame man, that's rough. In other news, Apple announced plans to increase shipments of its new devices by 10% following a challenging year in 2023. Things are going from bad to worse for Boeing. Its faulty spacecraft has left astronauts stranded on the ISS.

Here's the lowdown, the JSE All-share closed down 0.22%, but the S&P 500 rose by a splendid 1.02%, and the Nasdaq soared 1.18% higher.

US markets inched forward last night, closing at another all-time high, with financial shares leading the gains. Jerome Powell's remarks to Congress confirmed that the Federal Reserve will cut interest rates this year. All 24 stocks in the KBW Bank Index gained, with JPMorgan, Citigroup, and Wells Fargo each rising by at least 1.5%. Among megacaps, Tesla (+3.7%) and Nvidia (+2.5%) shone.

In company news, Danish brewer Carlsberg has agreed to acquire London-listed soft drinks maker Britvic for GBP3.3 billion (approximately $4.23 billion). This move is part of Carlsberg's strategy to expand its presence in the non-alcoholic beverage market and reduce its dependence on beer sales. Elsewhere, BP Plc cautioned that "significantly lower" refining margins and a writedown on the value of a plant in Germany would dent future profits.

In summary, the JSE All-share closed down 0.20%, the S&P 500 rose just 0.07%, but still up for the sixth consecutive session, and the Nasdaq was 0.14% higher.

US markets squeezed into the green again yesterday, and the S&P 500 reached its 35th all-time high for the year. The index has remained remarkably stable, not dropping by more than 1% in a day since April. The Nasdaq also performed well, with Super Micro Computer, Intel, and AMD all up by over 4%.

In company news, Eli Lilly agreed to buy speciality drug company Morphic Holding for $3.2 billion. Morphic has promising drugs to treat bowel inflammation, and its stock rose 75% after the announcement. In other news, over 2 600 Boeing 737 jets registered in the US will need their oxygen generators inspected. Corning shares jumped by 12% after the company, known for making glass for TV screens and smartphones, increased its sales guidance.

At the close, the JSE All-share was down a tiny 0.02%, the S&P 500 eked out a 0.10% gain, and the Nasdaq was a more respectable 0.28% higher.

US markets rose on Friday to end the week at new highs, boosted by labour market data that reinforced expectations of upcoming rate cuts by the Federal Reserve. The S&P 500 gained 2% for the week, while the tech-heavy Nasdaq added 3.5% in the same period. This has been a purple patch for long-term equity investors.

Jobs data revealed that the US added 206 000 paid positions last month, maintaining a strong hiring trend. The unemployment rate rose to 4.1%, indicating that the job market is cooling slowly. In other words, a Goldilocks update.

In company news, Tesla rose 27% for the week, its best run since January 2023, extending a rally that has erased its losses for the year. Elsewhere, a study has found that using GLP-1 drugs (like Ozempic and Mounjaro) and metformin is associated with a reduced risk of developing certain obesity-related cancers in patients with Type 2 diabetes. Lastly, Boeing has agreed to plead guilty to criminal conspiracy charges after a Justice Department probe found the company didn't stick to an earlier settlement linked to two deadly 737 Max crashes. Under the deal, Boeing could be fined up to $487.2 million, the legal maximum.

On Friday, the JSE All-share closed down 0.44%, but the S&P 500 rose 0.54%, and the Nasdaq strode 0.90% higher.

US markets were closed yesterday for Independence Day so there was minimal activity in financial markets. Traders are now focusing on today's jobs report, which will provide an update on the state of the US labour market. Economists predict that 200 000 jobs were created in June, with the unemployment rate remaining steady at 4%. A weaker report would be market-positive, as it will encourage the Fed to drop rates sooner.

In company news, Samsung shares rose 2.3% after reporting a 15-fold increase in operating profit for the June quarter, driven by a strong recovery in memory chip demand. Meanwhile, the EU has confirmed plans to impose additional tariffs on EVs made in China starting today and lasting for at least four months. Oddly enough, European carmakers mostly oppose the tariffs, fearing they could trigger a two-way trade war with China.

Izolo, the JSE All-share closed up 0.48%.

US markets closed in the green yesterday in a shortened session ahead of today's 4th of July holiday. Labour market data showed that the services sector contracted at the fastest pace in four years. This reignited hopes for potential rate cuts as early as September. As a result, both the S&P 500 and the Nasdaq Composite hit new record highs.

In company news, Paramount Global surged 6.9% after news broke that the deal with Shari Redstone's National Amusements and Skydance, was back on. Meanwhile, Meta's Twitter clone, Threads, hit 175 million active users, and Mark Zuckerberg hinted at the possibility of introducing ads on the platform. Over at BMO, analysts believe Eli Lilly's newly approved Alzheimer's drug could bring in sales of up to $7.1 billion.

Here's the lowdown, the JSE All-share closed up 1.68%, the S&P 500 rose 0.51%, and the Nasdaq was 0.88% higher. Love it!

US markets climbed yesterday on optimism about potential rate cuts. Have you heard that one before? Fed Chair Jerome Powell mentioned that inflation is trending downward so the S&P 500 hit its 32nd record high this year, closing above 5 500 for the first time ever. Gains in megacap stocks propelled the Nasdaq 100 to its 22nd record in 2024, closing above 20 000 points.

In company news, Eli Lilly got FDA approval for its early-onset Alzheimer's drug, Donanemab. Elsewhere, Moderna rose 1% after the US government awarded the company $176 million to develop a bird flu (H5N1 avian influenza) vaccine. Finally, Chewy fell yet another 2.2% as fallout from Roaring Kitty's stake in the company continues to rattle investors. If you know what that last sentence means, you are spending too much time online.

In short, the JSE All-share closed down 0.52%, but the S&P 500 rose 0.62%, and the Nasdaq kept going up, rising another 0.84%.

US markets kicked off the second half of the year with gains. Yay, let's keep it that way! The tech-heavy Nasdaq reached a new high, marking its 21st record close of 2024. Large tech companies led the way, with Tesla (+6.1%), Apple (+2.9%), Microsoft (+2.2%), Broadcom (+2.2%), and Amazon (+2.0%) all sparkling.

In company news, L'Oreal CEO Nicola Hieronimus said the global beauty market would grow by a bit less than 5% this year due to waning demand from Southeast Asia, particularly China. Meanwhile, Renault has committed to cutting electric vehicle battery costs by 20% by improving cell chemistry and fine-tuning production processes. Have you driven an EV? You should give it a try.

At the close, the JSE All-share was up 0.18%, the S&P 500 rose 0.27%, and the Nasdaq marched 0.83% higher.

US markets closed slightly down on Friday after initially gaining almost 1%. Despite this dip, the S&P 500 remained close to its record high, buoyed by a near $6 trillion increase in market capitalisation among its constituents in 2024 - the largest first-half gain on record. With half of 2024 behind us, the S&P 500 has risen 14%, matching last year's standout start, driven largely by the continued surge in AI stocks. Notably, Nvidia has contributed 30% of the S&P 500's total return.

Positive inflation data was the reason for the strong open earlier in the day. The personal-consumption expenditures (PCE) price index increased by just 2.6% in May compared to the same month last year, matching economists' expectations.

In company news, Nike closed down sharply in its largest one-day fall on record after reporting a rather pedestrian revenue outlook for the current financial year. Meanwhile, the biggest US banks have been announcing higher payouts to investors after comfortably passing the Federal Reserve's annual stress test earlier this week.

On Friday, the JSE All-share closed up 0.93%, but the S&P 500 fell 0.41%, and the Nasdaq sagged by 0.71%.

US markets moved slightly higher yesterday, driven by gains in technology companies. Palo Alto Networks (+4.8%), Salesforce (+4.0%), Adobe (+3.4%), Amazon (+2.2%), and Meta (+1.3%) were the standout performers. The tech-heavy Nasdaq was the only index that ended meaningfully higher for the day.

In company news, Nike sank 12.4% in late-trade after the apparel giant missed sales estimates, but beat on profit numbers. Oh dear, not good. Elsewhere, Walgreens Boots Alliance tumbled 22% after slashing its guidance. Spice maker McCormick & Co rose 4.3% after the company posted salty earnings results, absolutely crushing estimates.

In summary, the JSE All-share closed down 0.41%, the S&P 500 rose just 0.09%, and the Nasdaq was a solid 0.30% higher.

US markets closed higher again yesterday, despite some mid-day fluctuations. A rise in big tech pushed the Nasdaq Composite up by half a percent with Tesla (+4.8%), Amazon (+3.9%), and Apple (+2%) flexing their muscles. The S&P 500 hasn't declined by 2% or more in the last 338 days, marking the longest such streak since 2018.

In company news, Micron Technology took an 8% hit in late trading after its 2024 revenue outlook fell short of expectations. Elsewhere, Amazon's surge pushed its market capitalisation past $2 trillion for the first time, making it the fifth US company to hit that milestone. Meanwhile, FedEx delivered a 15% jump to its shareholders after reporting stronger-than-expected sales.

In summary, the JSE All-share closed down 0.41%, but the S&P 500 rose 0.18%, and the Nasdaq was 0.49% higher. Nice work!

US markets closed higher yesterday as tech shares bounced back from a slump earlier in the week. The Nasdaq Composite pushed higher thanks to gains in Nvidia (+6.8%), Alphabet (+2.7%), Tesla (+2.6%), and Meta (+2.3%).

Do you still follow the movements of the old-fashioned Dow Jones Industrial Average (DJIA)? The Nasdaq and Dow have moved in opposite directions in eight out of the last ten trading days, a pattern not seen since a 10-day stretch ending in April 1995.

In company news, Airbus shares dropped 9.4% after it revealed that production challenges will prevent it from meeting its sales and profit targets. Elsewhere, cruise company Carnival surprised analysts with positive quarterly numbers, pushing the stock up by 8.7%.

At the close, the JSE All-share was down 0.85%, but the S&P 500 gained 0.39%, and the Nasdaq bounced 1.26% higher.