Market scorecard
US markets were mixed yesterday and the S&P 500 ended flat. Five of the "magnificent seven" stocks managed to close in positive territory but market darling Nvidia fell 6.4% in the aftermath of its superlative second quarter-numbers.
In company news, Dell Technologies rose 3.3% after-hours thanks to strong sales of servers that run artificial intelligence workloads. Elsewhere, Lululemon climbed 4.3% as the athleisure leader's results surpassed Wall Street's tempered expectations. Finally, Autodesk gained 5% in late trading after the company raised its outlook for design software sales.
In summary, the JSE All-share closed up 0.26%, the S&P 500 was unchanged, and the Nasdaq was 0.23% lower.
Our 10c worth
One thing, from Paul
Here's some life advice for a Friday - become a volunteer. You could get involved in a neighbourhood committee, visit lonely people in a retirement home, plant trees, start a walking group, or even initiate an NGO.
A 2020 Harvard study of 13 000 people over 50 years old tracked health outcomes based on the level of volunteering engagement, ranging from none to more than 100 hours per year.
Their findings were astounding: the active volunteers had a 44 percent lower mortality risk, a 17 percent lower risk of "physical functioning limitations," and much higher self-rated health. They had "higher positive affect, optimism, and purpose in life, as well as lower depressive symptoms and hopelessness."
Of course, more volunteers are also good for society. Read this great essay by Brian Klaas for some practical ideas: The Power of Supercitizens.
Bright's banter
ASML, based in Veldhoven in the southern Netherlands, plays a pivotal role in the current surge of artificial intelligence, enabling technologies like ChatGPT, Claude, and Gemini. The company is also essential to Nvidia's production of powerful graphics processors.
ASML specialises in photolithography, particularly extreme ultraviolet (EUV) lithography, which are used to manufacture advanced chips. The company's photolithography machines use light to etch circuit patterns onto silicon wafers.
Companies such as AMD, Intel, and Nvidia depend on ASML's equipment to produce the chips that they design. The machines are capable of etching designs as thin as 8 nanometers. The complexity and sophistication of these machines come at a high cost, with the latest models priced at $380 million each.
With no competitors in the EUV lithography space, ASML is a critical supplier in the global semiconductor industry. However, its significant role also places it amid geopolitical tensions, particularly between the US and China.
Due to concerns over potential military uses of advanced chip-making technology, the US has imposed strict export controls to limit China's access to such equipment. Consequently, ASML has been barred from selling its most advanced EUV machines to China since 2019.
Despite these restrictions, China remains a crucial market for ASML, accounting for 29% of its net sales in 2023, primarily through the sale of midrange machines. However, anticipated additional restrictions from the US and Dutch authorities could reduce these sales by 10 to 15% this year.
ASML is a great company, but we suggest that investors rather own Nvidia.
Linkfest, lap it up
Innovation in agriculture is ongoing. Recent advances include aquaponics, precision agriculture, robotics, automated weeding and Rolls Royce tractors - Re-evaluating vertical farms.
Red tape in the EU is scaring off tech companies. Burdensome regulations annoy tech giants - The gumshoes in Brussels are a pain in the ass.
Signing off
Asian markets are on track for a fourth consecutive month of gains, with the MSCI Asia Pacific Index showing strong performance. Chinese markets rose on news that Beijing is considering allowing the refinancing of $5.4 trillion in domestic mortgages.
In local company news, Santam reported a 35% increase in half-year earnings, thanks to strong premium growth across its main conventional insurance segments. They just have to make it through the latest bout of droughts and hail storms.
US equity futures are slightly in the green. The Rand is trading at around R17.75 to the US Dollar.
Ah, Friday at last. Have a nice weekend.