Category: Stock Market

US company Micron Technology Inc (NASDAQ: MU) is the latest to hit the US$1 trillion valuation benchmark after a bullish broker report on the company’s shares sent them almost 20% higher in US trade.

Micron shares closed 19.3% higher at US$895.88 after UBS issued a research note on the company, tripling its price target from US$535 to US$1625 per share.

Micron shares had already more than doubled since the start of this year when they were changing hands for $US315.42.

The company is benefiting from the artificial intelligence boom, which is driving strong demand in the chip manufacturing sector, the most prominent of which is Nvidia Corp (NASDAQ: NVDA), now worth about US$5.22 trillion.

Surging revenue growth

Micron on March 18 announced its second-quarter results, saying revenue grew to US$23.86 billion, up from US$13.64 billion in the prior quarter and US$8.05 billion in the same period last year.

Net income came in at US$13.79 billion, while operating cash flow was US$11.90 billion, up from US$8.41 billion in the prior quarter and US$3.94 billion in the same period last year.

Chief Executive Officer Sanjay Mehrotra said of the results:

Micron set new records across revenue, gross margin, EPS, and free cash flow in fiscal Q2, driven by a strong demand environment, tight industry supply, and our strong execution, and we expect significant records again in fiscal Q3. In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand. Reflecting confidence in the sustained strength of our business, our board has approved a 30% increase in our quarterly dividend.

Third quarter to smash records again

The company is forecasting revenue of US$33.5 billion in the third quarter, which Mr Mehrotra said, “exceeds the full year revenue for every year in our company’s history through fiscal 2024”.

He added:

The step-up in our results and outlook are the outcome of an increase in memory demand driven by AI, structural supply constraints and Micron’s strong execution across the board. Our memory and storage solutions are at the heart of this AI revolution. Memory makes AI smarter and more capable, enabling longer context windows, deeper reasoning chains and multi-agent orchestration. As AI evolves, we expect compute architectures to become more memory-intensive. This is why we strongly believe that Micron is one of the biggest beneficiaries and enablers of AI. AI hasn’t just increased demand for memory — it has fundamentally recast memory as a defining strategic asset in the AI era.

The post Why is everyone talking about the Micron share price? Is it the next Nvidia? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Micron Technology and Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Metcash Ltd (ASX: MTS) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) wholesale food, liquor and hardware distributor closed yesterday trading for $3.05. In early afternoon trade on Wednesday, shares are swapping hands for $3.09 apiece, up 1.2%.

For some context, the ASX 200 is up 0.1% at this same time.

Taking a step back, Metcash shares remain down 8.3% since this time last year, trailing the 3.1% 12-month gains posted by the benchmark index.

Although that’s not including the 18 cents a share in fully franked dividends the company has paid out to eligible stockholders over this time.

At the current share price, Metcash stock trades on a fully franked 5.8% trailing dividend yield. Taking those franking credits into account, that equates to a grossed-up yield of 8.3%.

So, is the ASX 200 stock a good buy for passive income today?

Metcash shares: Buy, hold or sell?

Shaw and Partners’ Jed Richards recently analysed the outlook for this ASX 200 dividend stock (courtesy of The Bull).

“Metcash remains a quality defensive business with diverse earnings across food, liquor and hardware,” Richards said.

“Its strong customer network provides consistent cash flow and resilience during economic uncertainty,” he added.

Indeed, with inflation remaining well above the RBA’s target range, and future interest rate rises still on the cards, there’s more than enough economic uncertainty to go around.

As for the passive income on offer from Metcash shares, Richards said, “Recent updates show stable margins despite increasing cost pressures, and the company continues to generate an attractive dividend yield.”

Connecting the dots, Richards issued a hold recommendation on the ASX 200 dividend stock.

He concluded:

While growth is modest, its defensive characteristics and reliable income stream support a hold position. It remains well positioned to benefit from steady consumer demand.

What’s the latest from the ASX 200 dividend stock?

Metcash reported its unaudited full year FY 2026 results, covering the 12 months to 30 April, on 11 May.

Highlights included expected FY 2026 revenue growth of 0.7%. And on the bottom line, the company expects to achieve underlying net profit after tax (NPAT) between $268 million and $270 million.

The company reported improved sales momentum in its Hardware and Tools business, along with a range of ongoing cost cutting initiatives, forecasting at least $25 million in annualised savings in FY 2027.

“We have delivered a solid result supported by the resilience of our Food and Liquor businesses, our diversified portfolio and disciplined execution,” Metcash CEO Doug Jones said.

Metcash shares closed up 6.6% on the day of the results release.

The post With a 6% dividend yield, should I buy Metcash shares today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares have fallen further into the red in Wednesday afternoon trade. At the time of writing, the telco stock is down around 1% to $5.24 a piece. 

The latest slump means the shares have now tumbled nearly 6% from a multi-year high recorded last week.

Why are the shares now cooling? Have Telstra shares now reached a ceiling, or is there potential for more upside ahead?

What happened to Telstra shares this week?

It looks like the downturn started when investors began taking their gains off the table after the share price spiked on Tuesday last week. 

This was accelerated when a flurry of brokers downgraded their outlooks on the stock. There have also been headwinds from broad softening in defensive shares, including telcos, and valuation concerns after Telstra’s strong price rally.

Another headline which has weighed on sentiment this week is Telstra’s latest job cuts announcement. The company announced on Tuesday that it is planning to cut around 11 jobs as part of a technology division restructure under new CEO Vicki Brady. 

The restructure collapses several of Telstra’s internal technology and infrastructure teams into two new divisions.

The latest headcount cut follows the telco’s announcement earlier this year that it would axe up to 650 roles as part of a restructuring and AI-driven efficiency programs.

Are the shares a buy, sell or hold?

Market Index data shows brokers still rate the telco’s shares as a buy, and they tip an average 1% upside to $5.32 over the next 12 months, at the time of writing. 

Sentiment looks a little different over on TradingView. Of 15 ratings, only 3 have a strong buy stance, and another 12 have a hold rating on Telstra shares. The average $5.26 target price is just two cents above the current trading level.

Jed Richards from Shaw and Partners gives Telstra shares a sell rating. He thinks that the stock is currently trading at elevated levels with its defensive appeal pushing the share price higher. 

He warns that underlying growth is limited and the dividend yield is becoming less attractive as the share price rises.

Elsewhere, analysts at Catapult Wealth also recently highlighted that while mobile price rises are expected to support Telstra’s revenue growth this year, there is uncertainty around spectrum license fees, which could remain a medium-term headwind for the company.

The post Telstra shares fall 6% from a multi-year high: What happened, and is it time to sell up? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I think June could be a good time to look for quality ASX 200 growth shares.

The five shares in this article all have strong long-term growth potential in my view. 

They are not risk-free, and some trade on high expectations, but I think each could be worth buying next month. Here’s why I like them.

Megaport Ltd (ASX: MP1)

Megaport is one ASX 200 growth share I would buy for exposure to digital infrastructure.

The company has long provided network-as-a-service technology, helping businesses connect more flexibly to cloud providers, data centres, and digital services.

But the story has become more interesting since its acquisition of Latitude.sh, which added compute and storage capabilities.

Since completion, Megaport has announced several large contracts through Latitude.sh across GPU, CPU, network, and storage services. That is one reason investors have become more bullish.

There is still execution risk, and the business needs to keep proving the opportunity. But if demand for AI, cloud, and data-heavy workloads keeps growing, I think Megaport could become a much more valuable platform.

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat Leisure is another ASX 200 growth share I rate highly.

The company is best known for gaming machines, but it has also built a meaningful digital gaming business. That gives it exposure to both land-based gaming and mobile entertainment.

What I like about Aristocrat is its product development strength. In gaming, great content can travel across markets and keep generating revenue for a long time.

The company also has financial strength, which gives it room to invest, acquire, and return capital when appropriate.

There are regulatory and consumer risks with this business, so it will not suit every investor. But as a global gaming technology company, I think Aristocrat remains one of the higher-quality growth options on the ASX.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is the kind of growth share that doesn’t get the headlines it deserves.

The company provides enterprise software to governments, universities, councils, and large organisations. These customers need reliable systems for finance, payroll, asset management, student administration, and other important operations.

That makes the software sticky.

I like the recurring revenue, the long customer relationships, and the company’s record of steady execution. The UK opportunity also gives TechnologyOne another growth lever if it can keep building momentum there.

The valuation can be demanding, but quality software businesses often are.

REA Group Ltd (ASX: REA)

REA Group is one of the strongest platform businesses on the ASX.

Its realestate.com.au platform benefits from a powerful network effect. Buyers and renters search where the listings are, while agents and sellers want to advertise where the audience is.

That loop gives the business a strong position in Australian property.

I also think REA has plenty of ways to grow beyond basic listings. Premium products, data, agent tools, property insights, and finance leads can all add value over time.

The housing market can be uneven, but I think REA’s competitive position remains very hard to replicate.

Sigma Healthcare Ltd (ASX: SIG)

A final ASX 200 growth share I would buy next month is Sigma Healthcare.

I think it has become a much more attractive investment opportunity since merging with Chemist Warehouse.

The combined business has exposure to pharmacy retail, healthcare distribution, wellness products, and repeat-purchase consumer health needs.

I like that mix. Healthcare retail can be more resilient than many discretionary categories, while Chemist Warehouse gives the group a powerful brand and a large store network.

If management can execute well, I think Sigma could become a much larger and more valuable healthcare retail business over time.

Foolish takeaway

I think these five ASX 200 growth shares offer a lot for investors to like heading into June.

They are exposed to different areas of the market, from digital infrastructure and software to property, gaming, and healthcare retail. That gives the list a broader feel than simply backing one growth theme.

What stands out to me is the quality of the opportunities. Each business has a clear path to becoming more valuable over time if management keeps executing well. For patient investors, I think that makes them worth considering next month and well beyond it.

The post 5 ASX 200 growth shares to buy next month appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport and Technology One. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations. This has led to a number of broker notes being released this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

Goodman Group (ASX: GMG)

According to a note out of Morgans, its analysts have retained their buy rating on this industrial property company’s shares with an improved price target of $36.00. The broker was pleased with the company’s third-quarter update, highlighting that its work in progress is expected to be ahead of consensus forecasts at the end of June. Morgans believes one important takeaway was management’s view that industry data centre capex requirements likely exceed global capital market funding capacity. This has created a backdrop that favours those with secured power, sites, and locked-in capital partners like Goodman. In light of this, the broker has boosted its valuation to reflect growing conviction in the capital-scarcity moat and peer pre-commit validation. The Goodman share price is trading at $30.19 on Wednesday.

Life360 Inc. (ASX: 360)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this family safety and location technology company’s shares with an improved price target of $33.00. The broker has been busy reviewing Life360’s quarterly update and thinks the market was focusing on the wrong thing. Instead of negatively reacting to softer monthly active user (MAU) growth, which was explainable, Bell Potter thinks investors should have responded positively to its strong growth in paying circles (paid subscribers). It believes the latter has been driven by better quality MAUs and the company now using artificial intelligence in A/B testing to help optimise marketing and subscription plans. The Life360 share price is fetching $18.91 at the time of writing.

Santos Ltd (ASX: STO)

Analysts at Macquarie have retained their outperform rating and $9.15 price target on this energy producer’s shares. According to the note, the broker was pleased with Santos’ investor day update. It highlights that the company’s portfolio is now de-risked and higher quality. In addition, with Santos now passing its peak capital expenditure phase, the company’s cash flow generation outlook appears very positive. Further, Macquarie points out that Santos has a number of high-quality opportunities to pursue to create value for shareholders. The Santos share price is trading at $7.89 on Wednesday.

The post Top brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Goodman Group and Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group, Life360, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Life360 and Macquarie Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors are giving Dicker Data Ltd (ASX: DDR) a closer look on Wednesday after a busy AGM update.

The ASX tech distributor is up a sizeable 8.19% to $9.64 at the time of writing.

Today’s buying follows fresh commentary on FY25 earnings, dividends, and the company’s early FY26 trading.

Nonetheless, it has still been an uneven year for the stock.

Dicker Data shares are down around 6% in 2026, even after today’s rally. But zoom out a little further, and the shares are up about 16% over the past 12 months.

The company sits in the middle of the technology supply chain, distributing hardware, software, cloud, access control, surveillance, and emerging technology products.

It also works with more than 10,000 reseller partners across Australia and New Zealand.

So, what has investors buying today?

FY25 numbers beat guidance

The company told shareholders that FY25 was a strong year, with results exceeding its guidance range.

Gross revenue rose 14.9% to $3.9 billion, helped by growth in software, endpoint solutions, PC refresh, and infrastructure.

Recurring gross sales increased 22.4% to $1.1 billion.

EBITDA lifted 6.1% to $159.4 million, while net profit before tax surged 8.8% to $124.7 million.

Earnings per share (EPS) came in at 47.4 cents, up 8.6% on the previous corresponding period.

It is worth noting that the Australia business did most of the heavy lifting.

Australian gross revenue rose 17.2% to $3.28 billion, while New Zealand gross revenue increased 3.6% to $581.2 million.

Dicker Data also pointed to a healthier balance sheet, with net debt falling by $12.8 million to $93 million.

Dividends stay in focus

Income investors also had something to cheer about in today’s update.

Dicker Data said its final FY25 dividend of 11.5 cents per share was paid in March.

That took total dividends in respect of FY25 to 44.5 cents per share.

The company has also revised its dividend policy to a payout range of 80% to 100% of net profit after tax.

The first interim FY26 dividend of 11.5 cents per share was declared on 12 May and is due to be paid on 2 June.

Why investors are getting excited

The strongest part of today’s update was the FY26 trading commentary.

Dicker Data said unaudited gross revenue for the first 4 months of FY26 rose 13.4% to $1.27 billion.

The company said the result was driven by elevated endpoint, software, and data centre refresh demand.

Net profit before tax jumped 45.5% to $47.3 million.

Management said this reflected margin improvement and the sale of existing inventory during the period.

The company also expects FY26 results to reflect strong year-to-date momentum, with growth across key areas.

The post This ASX tech share is rocketing 8% after a big AGM update appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors are still backing BlueScope Steel Ltd (ASX: BSL), even after the company was reportedly ruled out of a major Australian steelworks deal.

The BlueScope share price is up 1.21% to $30.97 on Wednesday after fresh reporting on the future of the Whyalla Steelworks in South Australia.

It has been a strong period for the ASX 200 stock. BlueScope shares are now up around 28% in 2026 and about 36% over the past 12 months.

Let’s take a look at the latest news surrounding the company.

Whyalla race narrows

According to The Australian, BlueScope and its international consortium partners are no longer in the bidding race for the Whyalla Steelworks.

South Australian Premier Peter Malinauskas said Queensland coal entrepreneur Matt Latimore’s private company M Resources and India’s Jindal Steel are the only shortlisted bidders.

A buyer is expected to be named over the next few months.

The state government placed the steelworks into administration in February last year. The business had been operated by Sanjeev Gupta’s GFG Alliance.

BlueScope had previously been considered as a serious contender.

The company owns and operates the Port Kembla steelworks in New South Wales. It had joined forces with Nippon Steel, JSW Steel, and POSCO in a heavyweight international consortium.

At the time, BlueScope said it hoped to use its domestic operating experience and familiarity with Whyalla as it led the group through due diligence.

Why investors are holding steady

Investors don’t seem too concerned about BlueScope missing out on Whyalla.

Buying the steelworks would have given the company a larger role in Australian steelmaking. But it also would have brought a complicated asset that may need serious money spent over many years.

Whyalla has attracted attention because of its role as a major regional employer and strategic industrial site. It has even been discussed as a possible hub for lower-emissions iron and steel production.

While those ideas sound appealing, turning them into reality would likely take a lot of capital, government support, and time.

And BlueScope already has plenty on its plate.

The company owns the Port Kembla steelworks and has major operations in North America, where its North Star business in Ohio has been a major contributor in recent years.

Why the stock keeps climbing

BlueScope’s latest run has been hard to miss.

The stock is trading near the top of its 52-week range after a strong start to 2026.

The company is also one of the larger names on the ASX, with a market capitalisation of about $13.6 billion.

Even though today’s gain is modest, it still stands out against the Whyalla headlines.

A missed acquisition opportunity can sometimes weigh on a stock, especially when investors had expected a company to stay in the race.

But in BlueScope’s case, the market appears to be taking a different view.

The post This ASX 200 stock is rising after a major bidding shake-up appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Oil and gas producers and distributors such as Beach Energy Ltd (ASX: BPT), Woodside Energy Group Ltd (ASX: WDS) and Ampol Ltd (ASX: ALD) shares have been in focus this year as geopolitical tensions, volatility and oil price and supply fears put pressure on the ASX energy sector.

Here’s the latest update from each energy stock, and what brokers expect next.

Buy Ampol shares

Ampol shares are trading in the red on Wednesday afternoon. At the time of writing, the petroleum distribution and retailer’s shares are down around 0.4% to $33.57. The shares have now slumped nearly 5% since the ASX opened on Monday morning. 

For the year-to-date, however, Ampol shares are up over 4%, and they’re 30% higher than this time last year.

The company’s shares climbed higher on the back of conflict in the Middle East and concerns about global oil supply earlier this year. 

Ampol has also posted a few recent updates that have gathered investor attention. In April, the Aussie fuel supplier said it had submitted a formal remedy offer to the Australian Competition and Consumer Commission (ACCC) about a proposed acquisition of fuel and convenience store operator EG Australia. 

The company also confirmed a 10% increase in refinery production, higher refiner margins, and increased production in its Q1 FY26 trading update. 

Ampol has locked in diesel and jet fuel supply through to the end of May, and gasoline supplies to the end of June, despite rising landed crude costs. 

Brokers rate the stock as a strong buy, and the $35.80 average target price implies a potential 7% upside from here.

Hold Woodside shares

Woodside shares have also slumped slightly on Wednesday, down around 0.5% to $30.58 at the time of writing.

The shares have been resilient this year, however, climbing over 29% for the year-to-date and 43% over the past 12 months.

Unsurprisingly, the oil and gas giant’s share price rally accelerated in early March, as conflict between the US and Iran intensified.

Woodside shares have rallied off the volatility around oil supply concerns, and even though conflict in the Middle East has cooled, the area is still highly volatile, and the movement of oil in the region is still uncertain.

It’s not just market demand driving the company’s shares higher, either. Woodside grabbed headlines in April when it posted a 7% quarter-on-quarter increase in operating revenue and a 8% hike in revenue for the first quarter of FY26. 

But it looks like analysts are concerned that the share price could be at, or approaching, its peak. If the US and Iran strike a deal to resume oil movement in the Middle East, it could have a headwind effect on Woodside shares.

They rate the stock as a hold with an average 10% upside to $33.34, at the time of writing. 

Sell Beach Energy shares

Beach Energy shares are also in the red at the time of writing, down around 1% to $1.08 a piece. While the oil and gas explorer and producer’s shares flew higher off the back of geopolitical tensions in March, they tumbled just as quickly.

The shares are now down over 7% year-to-date and around 18% lower than this time last year.

Beach Energy posted its third-quarter update in April, which revealed softer sales, a guidance downgrade, and ongoing operational disruptions. The update spooked investors, and now many are worried about whether the company can consistently grow earnings from here.

Even news this week that it has agreed to sell its 60% operated interest in licence VIC/P35, which includes the Artisan gas discovery, hasn’t slowed the selloff. 

Brokers aren’t thrilled either. 

They rate the stock a sell, with an average target price of $1.12. That implies around a 2% downside at the time of writing.

The post Beach Energy, Ampol and Woodside shares: 1 to buy, 1 to hold and 1 to sell appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Buying ASX shares and wondering what the latest inflation data means for interest rates and the broader stock market investment outlook?

You’re not alone!

Earlier today, the Australian Bureau of Statistics (ABS) reported that Consumer Price Index (CPI) rose 4.2% in the 12 months to April, down from the 4.6% increase reported in March.

Of some concern however, trimmed mean inflation increased to 3.4% for the 12 months to April, up from 3.3% last month.

That’s important because trimmed mean inflation, which takes out certain volatile items, is the Reserve Bank of Australia’s preferred gauge when it comes to making its interest rate decisions.

As you’re likely aware, the RBA has hiked interest rates at all three of its meetings in 2026. That sees the official cash rate back at 14-plus-year highs of 4.35%.

And the combination of higher rates and resurgent inflation has pressured many ASX shares, as witnessed by the 1.6% year to date decline in the All Ordinaries Index (ASX: XAO).

So, what does the latest inflation print really mean?

Will ASX shares get some interest rate relief?

I won’t shine you on.

It’s highly unlikely that we’ll see the RBA lower interest rates at its next meeting on 16 June.

But we may well see the central bank keep rates on hold at that meeting, which after three consecutive rate increases should offer some relief to ASX share investors.

Commenting on the RBA’s inflation conundrum, Josh Gilbert, lead analyst for APAC at eToro, said:

Ultimately, that trimmed inflation number has been stubbornly above the top of the 2% to 3% target band for longer than anyone is comfortable with, and until that breaks decisively lower, the RBA can’t claim the job is done.

Deloitte Access Economics partner Stephen Smith said (quoted by The Australian Financial Review):

Underlying inflation rose to 3.4% over the year. That remains well above the Reserve Bank’s target band and points to a more persistent inflation problem than headline CPI alone suggests.

Even if the Strait of Hormuz reopens soon, global energy markets will take time to stabilise. The immediate shock may fade, but the pass-through to freight, production costs and consumer prices will take longer.

Deloitte expects ASX share investors will see the RBA pause at its June meeting and then likely hike rates by another 0.25% in August.

Commenting on the uptick in trimmed mean inflation, BDO chief economist Anders Magnusson added:

This will be uncomfortable for the RBA and limits its scope to ‘look through’ the energy shock as a temporary disruption that will just roll by. The recent lift in unemployment suggests that higher interest rates may be starting to slow demand, but that is less meaningful if inflation remains high.

The post Buying ASX shares? Here’s what the experts are saying about Australia’s latest inflation print appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a positive session on Wednesday. In afternoon trade, the benchmark index is up 0.15% to 8,670.3 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

ASX Ltd (ASX: ASX)

The ASX share price is down a further 7.5% to $47.16. Investors have been selling the stock exchange operator’s shares this week following the release of guidance for FY 2027. Management revealed that FY 2027 total expense growth is expected to be between 18% and 21%. It advised: “This is primarily driven by technology modernisation, the expanded Accelerate Program as part of our response to the ASIC Inquiry and investments to support customer-driven growth.” ASX has also increased its capex guidance for FY 2027. It now expects capex of $180 million to $200 million (from $160 million to $180 million). It then expects further capex of $170 million to $190 million in FY 2028.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is down 1% to $162.70. This is despite there being no news out of Australia’s largest bank on Wednesday. However, it is worth noting that all of the big four banks are trading lower today. It is possible that some large investors are rotating funds out of the banks and into other areas of the market.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is down 4% to $2.95. This follows the release of the drinks giant’s strategy update this morning. Although the Dan Murphy’s and BWS owner has a bold new strategy in place, which includes cost savings of $300 million, it has announced a reduction in its dividend payout ratio to conserve cash.

Tuas Ltd (ASX: TUA)

The Tuas share price is down a further 2% to $2.12. This Singapore-based telco’s shares have been under significant pressure since it terminated its proposed acquisition of M1 Limited. The company made the move after authorities suspended the review of the deal in response to news that Tuas’ Simba business may have used spectrum it did not own. It said: “Simba continues to co-operate with the investigation being undertaken by the Infocomm Media Development Authority into potential breaches of the Telecommunications Act and the conditions of Simba’s Facilities-Based Operator Licence. Tuas will keep shareholders updated in relation to that investigation.”

The post Why ASX, CBA, Endeavour, and Tuas shares are falling today appeared first on The Motley Fool Australia.

More reading

• Down more than 30% over a year, are ASX shares now looking cheap?
• Which ASX 200 share is sinking to a 52-week low after cutting its dividend payouts?
• Endeavour Group unveils strategy update and $300m cost savings drive
• How do ASX dividend shares compare to savings deposit rates today?
• CBA shares rebound 7%: Is the banking giant a buy, sell or hold?

Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.