Finance

Microsoft rallies after market as US trading opens with a ‘flash crash’


A mini ‘flash crash’ greeted traders on the opening as trading in dozens of blue-chip stocks from ExxonMobil to McDonald’s and Mastercard was briefly halted on Tuesday after problems with the New York Stock Exchange’s opening auction caused sharp swings at the start of trading. More than 75 stocks were stopped for hitting volatility limits within 15 seconds of the open. The Securities and Exchange Commission said it was reviewing the problem.

Overnight the Dow Jones Industrial Average finished higher Tuesday as investors parsed through the latest batch of corporate earnings reports for insight into the state of the economy.

The Dow gained 104 points, or 0.3 per cent, while the S&P 500 traded flat. The Nasdaq Composite dipped 0.3 per cent.

The Nasdaq Composite has gained 8.6 percent so far this year. As investors have been buying tech stocks in the belief that inflation is easing enough for the Fed to begin slowing the pace of its interest rate increases.

Tech titans are among the best-performing stocks in 2023, with the FANG Index — which includes such tech giants as Amazon, Apple, Meta and Netflix — up 14.8 percent in 2023, on pace for its best month since August 2020.

After market Microsoft has just reported earnings after the bell, with its shares rising as much as 5 per cent in extended trading after the company reported fiscal second quarter earnings that topped analysts’ estimates. Sales growth is expected to come in at just 2.3 per cent year over year, which would be the weakest expansion for Microsoft in any period since 2016 

In further tech news the US Justice Department will reportedly sue Google over its digital ad dominance. Prosecutors may file a lawsuit as soon as this week, according to Bloomberg. It would be the department’s second antitrust suit against Google in recent years, and part of a broader crackdown on tech giant.

S&P 500 Sectors were mostly mixed on Tuesday, with Industrials and utilities leading the way, up 0.65 per cent and 0.49 per cent.

Earnings season continued Tuesday with mixed results. 3M dropped 6.2 per cent on disappointing guidance, while Union Pacific dipped 3.3 per cent after falling short of estimates.

Some of the best performing thematics include: gene editing, lithium stocks and outer space concept.

Futures

The SPI futures are pointing to a 0.1 per cent fall.

Currency

One Australian dollar at 8:10 AM has strengthened compared to the US dollar yesterday buying 70.45 US cents (Tue: 70.26 US cents).

Commodities

Gold added 0.5 per cent. Silver gained 0.9 per cent. Copper rose 0.1 per cent and oil fell 1.9 per cent.

Figures around the globe

Across the Atlantic, European markets closed mixed. London’s FTSE fell 0.4 per cent, Frankfurt lost 0.1 per cent while Paris closed 0.3 per cent higher.

In Asian markets, Tokyo’s Nikkei added 1.5 per cent, Hong Kong’s Hang Seng and China’s Shanghai Composite were closed.

Yesterday, the Australian sharemarket added 0.4 per cent to close at 7,490.

Ex-dividends

Alternative Investment Trust (ASX:AIQ) is paying 4.25 cents unfranked

Dividends payable

Premier Investments (ASX:PMV)
360 Capital Group (ASX:TGP)
360 Capital REIT (ASX:TOT)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

Disclaimer

The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.





Peter Milios


Peter Milios is a recent graduate from the University of Technology – majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.


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