Morning Report 2 May 25: US stocks close higher, lifted by Microsoft and Meta earnings
CommSecTV
[{'start': '8.320', 'end': '14.000', 'text': "Good morning thanks for watching the ASX 200\xa0\nis set to start Friday's session in negative"}, {'start': '14.000', 'end': '21.200', 'text': 'territory the futures are pointing to a decline\xa0\nof 0.4 of a percent for the ASX 200 so the only'}, {'start': '21.200', 'end': '29.280', 'text': 'caveat to offer around that is that in after hours\xa0\ntrade we have seen earnings from Amazon and Apple'}, {'start': '29.280', 'end': '35.200', 'text': "that missed the mark and that is weighed on the\xa0\nfutures market and it's a question of to what"}, {'start': '35.200', 'end': '41.200', 'text': 'extent that impacts that 4 of a percent figure\xa0\nthat I mentioned potentially being a little bit'}, {'start': '41.200', 'end': '47.040', 'text': "more towards the downside so that's something\xa0\nto keep an eye on between now and the open of"}, {'start': '47.040', 'end': '53.520', 'text': 'the session terms of the floor session or the day\xa0\nsession on Wall Street it was a constructive day'}, {'start': '53.520', 'end': '57.520', 'text': 'uh adding to the improvements of the previous\xa0\nsession essentially over the course of the last'}, {'start': '57.520', 'end': '62.640', 'text': 'two days US markets have been rebounding from\xa0\nthat earlier selloff in the week where there was'}, {'start': '62.640', 'end': '69.920', 'text': 'that growth scare uh but this day the Dow finished\xa0\nwith an improvement of 2 of a percent the S&P 500'}, {'start': '69.920', 'end': '76.960', 'text': 'up 6 and the Nasdaq up by about 1 and a half% at\xa0\nthis time yesterday morning you might recall that'}, {'start': '76.960', 'end': '83.680', 'text': 'we were talking about the better than expected\xa0\nearnings from Microsoft and Meta so importantly'}, {'start': '83.680', 'end': '89.440', 'text': 'uh those outcomes after market yesterday sustained\xa0\nthe futures and after hours trade had an impact'}, {'start': '89.440', 'end': '96.640', 'text': 'on US and European or big pardon Asian and\xa0\nEuropean trade yesterday fed through into the'}, {'start': '96.640', 'end': '102.240', 'text': "start of the day and created the foundation for\xa0\nthe day's improvements it was another busy day"}, {'start': '102.240', 'end': '108.720', 'text': 'as far as company earnings were concerned it was\xa0\na little bit of a mixed batch uh on the one hand'}, {'start': '108.720', 'end': '116.480', 'text': "you for example you had McDonald's shares down\xa0\nby the most part of 2% so in an organi in a in"}, {'start': '116.480', 'end': '123.120', 'text': 'a setting where uh cost of living pressures are\xa0\ncoming to bear uh and you would expect that an'}, {'start': '123.120', 'end': '128.720', 'text': "organization like McDonald's would be weathering\xa0\nthe storm the comparable sales overall were down"}, {'start': '128.720', 'end': '134.400', 'text': 'by about a percent so that was worse than the half\xa0\na% improvement for the quarter that the market was'}, {'start': '134.400', 'end': '142.640', 'text': 'looking for in the US that was more acute with\xa0\nsales down by 3.6% compared to a decline of 1%'}, {'start': '142.640', 'end': '149.040', 'text': "uh earnings per share were uh below the\xa0\nmarket's expectations at $260 and revenue"}, {'start': '149.040', 'end': '155.440', 'text': 'uh came in uh well below what the market was\xa0\nlooking for at $5.96 billion so as I said that'}, {'start': '155.440', 'end': '162.880', 'text': 'organization down by about the better part of\xa0\n2% another clanger came in the form of Eli Liy'}, {'start': '162.880', 'end': '169.280', 'text': 'the most valuable pharmaceutical organization\xa0\nin the world and where investors found blemish'}, {'start': '169.280', 'end': '176.000', 'text': 'with its numbers turned around the weight loss\xa0\ndrug Zepbound so there are a couple of things'}, {'start': '176.000', 'end': '182.240', 'text': "that stood out here not least of which was that\xa0\nCVS care they're an important inter intermediary"}, {'start': '182.240', 'end': '190.480', 'text': 'in the US pharmaceutical landscape they act as a\xa0\nnegotiator or a bargaining intermediary between'}, {'start': '190.480', 'end': '197.200', 'text': 'buyers and sellers they negotiate prices for uh\xa0\nvarious things including pharmaceuticals and this'}, {'start': '197.200', 'end': '204.320', 'text': 'uh organization dropped Zepbound off their\xa0\npreferred weight loss uh drug list uh and that'}, {'start': '204.320', 'end': '211.440', 'text': 'means that effectively Eli Lily have to explore\xa0\ndifferent uh sales channels for that drug and'}, {'start': '211.440', 'end': '217.680', 'text': "uh and even uh in addition to that the sales for\xa0\nthe quarter were below the market's expectations"}, {'start': '217.680', 'end': '224.480', 'text': 'for Zepbound so all of that contributed to the 8%\xa0\ndecline that you saw for Eli Liy shares over the'}, {'start': '224.480', 'end': '231.680', 'text': 'course of the day importantly after the market\xa0\nclosed we have seen uh earnings from Amazon and'}, {'start': '231.680', 'end': '239.120', 'text': 'Apple and both of those numbers have been um uh\xa0\nhave created issues for analysts and you have'}, {'start': '239.120', 'end': '247.200', 'text': 'got Amazon shares down by about 4% in after hours\xa0\ntrade having risen by 3% in the day session so the'}, {'start': '247.200', 'end': '252.000', 'text': "uh performance of the previous quarter was in line\xa0\nwith the market's expectations but the outlook"}, {'start': '252.000', 'end': '257.360', 'text': "for the current quarter uh came in below what the\xa0\nmarket was looking for and that's why you've got"}, {'start': '257.360', 'end': '263.760', 'text': 'the shares down to the extent that they are apple\xa0\nshares having risen by4 of a percent during the'}, {'start': '263.760', 'end': '271.760', 'text': 'session uh down by 4% in after hours trade so\xa0\nthere have been a couple of important outcomes'}, {'start': '271.760', 'end': '275.280', 'text': 'beneath the surface cuz you look at earnings\xa0\nper share that was better than expected at'}, {'start': '275.280', 'end': '283.760', 'text': '$165 the market was looking for $162 revenue at\xa0\n95.36 billion for the quarter was ahead of the'}, {'start': '283.760', 'end': '291.600', 'text': "94.6 billion figure that the market was looking\xa0\nfor but Chinese sales were well below the market's"}, {'start': '291.600', 'end': '297.680', 'text': 'expectations so coming in at 16 billion the\xa0\nmarket was looking for something closer to 16.8'}, {'start': '297.680', 'end': '304.480', 'text': 'eight so a sizable miss on that front in addition\xa0\nto that uh Apple have said that there um that'}, {'start': '304.480', 'end': '312.320', 'text': 'tariffs could add potentially $900 million\xa0\nworth of costs uh in the coming quarter so you'}, {'start': '312.320', 'end': '319.040', 'text': 'can imagine how that has gone over and as I said\xa0\nthe shares down by about 4% in after hours trade'}, {'start': '319.040', 'end': '325.840', 'text': 'which is weighed on the futures obviously in after\xa0\nhours trade so uh as I said at the beginning worth'}, {'start': '325.840', 'end': '331.440', 'text': 'keeping an eye on European markets oh actually\xa0\nI should just quickly mention the economic news'}, {'start': '331.440', 'end': '338.560', 'text': 'of the day uh saw the measure of activity in the\xa0\nmanufacturing sector according to the institute'}, {'start': '338.560', 'end': '347.840', 'text': 'of supply management uh fall to a fivemon low\xa0\nat uh 48.7 from 49 so continuing to move into'}, {'start': '347.840', 'end': '353.360', 'text': "contractionary territory but interestingly\xa0\neven within that uh the that wasn't as bad"}, {'start': '353.360', 'end': '358.480', 'text': 'as what the market had feared market was on\xa0\ntent hooks given the weaker quarterly growth'}, {'start': '358.480', 'end': '362.960', 'text': "numbers that we'd seen earlier in the week so\xa0\nthe impact of that was that because it wasn't"}, {'start': '362.960', 'end': '368.240', 'text': 'as bad you saw a little bit of a bump higher\xa0\nin 10-year bond yields which had been falling'}, {'start': '368.240', 'end': '374.800', 'text': 'uh earlier in the week so a 10-year Treasury note\xa0\nup four basis points to 4 and a4% so European'}, {'start': '374.800', 'end': '380.800', 'text': 'markets were generally firmer uh the broader stock\xa0\n600 index in Europe was just in positive territory'}, {'start': '380.800', 'end': '386.960', 'text': 'the German DAX up by a third of a percent the\xa0\nFrench market up by a half and the UK market up by'}, {'start': '386.960', 'end': '392.400', 'text': 'uh just a a small positive for them sectors\xa0\nthat outperformed in European trade real estate'}, {'start': '392.400', 'end': '398.640', 'text': 'materials and industrials uh consumer staples\xa0\nand financials uh having seen reasonable gains'}, {'start': '398.640', 'end': '404.960', 'text': 'earlier in the week gave back some ground so that\xa0\nsets us up in mixed terms as I said for the local'}, {'start': '404.960', 'end': '410.080', 'text': 'share market today but what we have tended to see\xa0\nis a little bit of a recovery as far as some but'}, {'start': '410.080', 'end': '416.560', 'text': 'not all commodity prices are concerned so you did\xa0\nhave an improvement in the US dollar last night'}, {'start': '416.560', 'end': '422.960', 'text': 'uh helped by those bond yields copper prices were\xa0\nup by a half of 1% last night you had aluminium'}, {'start': '422.960', 'end': '431.040', 'text': 'fairly flat gold prices continue to edge lower as\xa0\nthat risk uh environment seems to be moderating'}, {'start': '431.040', 'end': '437.920', 'text': 'for the moment at least so gold down by around\xa0\n3% and helping that outcome was the suggestion uh'}, {'start': '437.920', 'end': '443.040', 'text': 'from the white house that you know further talks\xa0\nare yielding results as far as trade is concerned'}, {'start': '443.040', 'end': '449.520', 'text': 'but that is perhaps you know uh at the margins\xa0\nin terms of its influence go oil rather had a'}, {'start': '449.520', 'end': '456.080', 'text': 'big bounce last night so it recovered from a 3-w\xa0\nweekek low up by around 2% so in line with that'}, {'start': '456.080', 'end': '462.560', 'text': "recovery that I spoken about for the US dollar\xa0\nlast night we've got the Aussie dollar moving back"}, {'start': '462.560', 'end': '468.320', 'text': "below that 64 US cent mark where it's been finding\xa0\nsome comfort over the course of the last couple of"}, {'start': '468.320', 'end': '477.120', 'text': "days so we're trading closer to 63.8 US cents have\xa0\na great weekend i'll talk to you again on Monday"}, {'start': '477.120', 'end': '477.588', 'text': '[Music]'}]