Category: Stock Market

In a sea of red, these ASX All Ords shares are leaping higher on Monday
The benchmark All Ordinaries Index (ASX: XAO) is struggling on Monday, but not all shares housed on the index are in the red.

The Aussie bourse’s suffering follows a rough Friday on Wall Street. The US market was weighed down by strong employment data, likely heralding further rate hikes.

The Dow Jones Industrial Average Index (DJX: .DJI) plunged 2.1% on Friday, while the S&P 500 Index (SP: .INX) dumped 2.8%, and the Nasdaq Composite Index (NASDAQ: .IXIC) plummeted 3.8%.

Seemingly in response, the All Ords is down 1.39% right now, but some shares are floating above the sea of red. Indeed, some are posting gains of as much as 6%.

Keep reading to find out which stocks are outperforming and what’s driving them higher.

3 ASX All Ords shares posting gains on Monday

Plenty of ASX All Ords shares are outperforming the market on Monday.

One such gainer is Archer Materials Ltd (ASX: AXE). Stock in the tech company is currently up 6.49%, trading at 82 cents apiece.

Its surge follows news of a major advance in the company’s development of its 12CQ chip. It has used complementary metal-oxide-semiconductor chip technology to detect quantum information in its 12CQ qubit material at room temperature for the first time.

Archer CEO Dr Mohammad Choucair said the achievement “cannot be understated”.

At the same time, the share price of ASX All Ords airline and Qantas Airways Limited (ASX: QAN) takeover target, Alliance Aviation Services Ltd (ASX: AQZ), is also outperforming.

It has gained 1.25% at the time of writing to trade at $3.24. The latest news of the takeover came in August when the competition watchdog expressed concerns over the proposition.

Finally, All Ords healthcare share 4DMedical Ltd (ASX: 4DX) is also in the green today, with its share price gaining 6.25% to trade at 68 cents at the time of writing.

It’s been nearly six weeks since the market heard price-sensitive news from the medical technology developer. However, the stock has now lifted 17% since the end of September.

The post In a sea of red, these ASX All Ords shares are leaping higher on Monday appeared first on The Motley Fool Australia.

.

More reading
Motley Fool contributor Brooke Cooper 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 recommended Alliance Aviation Services Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/5rbsOBX
10 October 2022
ASX 200 tech shares are deep in the red on Monday. Here’s why
S&P/ASX 200 Index (ASX: XJO) tech shares are taking a beating today.

Following a strong run for much of last week, here’s how some of the leading large-cap tech companies are performing on Monday:
- Shares in buy now, pay later (BNPL) company Block Inc (ASX: SQ2) are down 6.7%
- Shares in accounting software provider Xero Ltd (ASX: XRO) are down 3.5%
- Shares in cloud-based software solutions provider WiseTech Global Ltd (ASX: WTC) are down 3.2%
After a few big up days last week, the S&P/ASX All Technology Index (ASX: XTX) – which also contains some smaller tech shares outside of the ASX 200 – is down 2.8% today.

The ASX 200 is also falling, though not as steeply, down 1.4% at this same time.

So, what’s spooking investors today?

Why are ASX 200 tech shares selling off on Monday?

The big tech selloff today follows similar action in US markets on Friday, which saw the NASDAQ close down 3.8%. Dual-listed ASX 200 tech share Block fell 7.3% on NYSE on the day.

The reason for the selloff is the polar opposite of the reason for last week’s rally. Namely, market expectations of future interest rate hikes from the US Federal Reserve, the world’s most watched central bank.

Last week, investors were hopeful that the Fed might scale back its hawkish tightening stance.

Those hopes were dashed on Friday following the release of September’s jobs data. That showed the US economy added more jobs than consensus expectations. The US unemployment rate dipped lower to 3.5%, the lowest in more than 50 years. Wages also continued to climb in September and are now up 5% over the full year.

ASX 200 tech shares are feeling the pressure, as the US Fed is now expected to continue with several outsized rate hikes. Tech shares, often priced with future earnings growth in mind, are particularly vulnerable to higher rates, which raise the present cost of investing in those distant earnings.

What are the experts saying?

Investors hoping ASX 200 tech shares may get a boost from a more dovish Fed will be disappointed by the medium-term outlook of two of its influential members.

“We look to be, according to our reports, headed for 4.5% to 4.75% by sometime next year,” Chicago Federal Reserve Bank President Charles Evans said (quoted by Bloomberg).

Fed Governor Christopher Waller added, “Until we see any signs of inflation beginning to moderate, I don’t know how we pause.”

Oxford Economics US economist Nancy Vanden Houten believes investors should prepare for the Fed to hike rates by another 1.25% in 2022.

According to Vanden Houten (courtesy of The Australian Financial Review):

There is evidence of a slight easing in tight labour market conditions. However, it’s not enough to knock the Fed off a track to raise the target range for the federal funds rate by another 125 basis points this year.

We assume that job growth, job openings, and importantly the inflation rate will continue to moderate through year-end, allowing the Fed to reduce the amount of rate increase to 50 basis points in December.

Looking a few quarters ahead, there is light at the end of the tunnel for ASX 200 tech shares, hammered by fast-rising rates.

“Everything hinges on inflation at this point. We do think it’s going to moderate over the next few quarters,” Peter Essele, head of portfolio management for Commonwealth Financial Network, said.

If last week was any indication, when inflation does moderate, the tech sector could enjoy a sizeable rebound.

The post ASX 200 tech shares are deep in the red on Monday. Here’s why appeared first on The Motley Fool Australia.

.

More reading
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 positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/WJtBqyv
10 October 2022
Is it smart to invest in the stock market right now? Take advice from Warren Buffett and Peter Lynch
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The stock market has been rocked by high inflation and rising interest rates this year. The broad-based S&P 500 and the tech-heavy Nasdaq Composite have fallen for three consecutive quarters, marking their longest losing streak since the tail end of the Great Recession in 2009. Both indexes have dropped into a bear market with the S&P 500 currently 22% off its high and the Nasdaq Composite down 31%.

Losses of that magnitude can leave investors feeling uncertain or even fearful. Those emotions often lead to poor judgment, and that can result in lasting damage to your portfolio. Fortunately, Warren Buffett and Peter Lynch have imparted some relevant wisdom over the years, and investors would do well to consider their advice.

Advice from Warren Buffett

Warren Buffett is often called the “Oracle of Omaha,” a reference to his uncanny stock-picking abilities and his residence in Nebraska. Buffett built that reputation over several decades, using Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) to fund his investing activities. Berkshire stock is up more than 3,600,000% since he took the helm in 1964, and the company has grown into a $600 billion behemoth. Not surprisingly, Buffett has become a sort of North Star for many investors.

During the Great Recession, Buffett wrote an opinion piece for The New York Times, and one quote, in particular, has become part of investing lore. He first mentioned the abysmal state of the stock market, then went on to say, “A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.” Those words have been repeated countless times since then, but they are especially relevant in the current bear market.

Fear is everywhere right now. Inflation hit a 40-year high earlier this summer, interest rates are rising at a pace not seen since the 1980s, and several other scary things — geopolitical conflict, supply chain disruptions, and pandemic lockdowns — have left the financial world in a state of alarm. But historical data suggests bear markets are the best time to buy stocks, and Buffett’s words echo that sentiment.

To be clear, the stock market downturn may drag on for months or even years, but Buffett has consistently advocated for a long-term mentality. In his op-ed piece, he noted investors were right to be worried about businesses in weak competitive positions, but “fears regarding the long-term prosperity of the nation’s many sound companies make no sense.” And there are plenty of sound companies around today.

Advice from Peter Lynch

Peter Lynch became an investing legend while managing the Magellan Fund at Fidelity. Under his stewardship, the fund earned an annualized return of 29.2%, growing more than twice as fast as the S&P 500. That took place between 1977 and 1990, a period in history defined by global oil shocks, rampant inflation, and high interest rates. Sound familiar?

Lynch led the Magellan Fund for just 13 years, but he battled two bear markets and six market corrections during that time. That makes his outperformance even more impressive, and it makes his opinions all the more credible. With that in mind, Lynch once said, “The real key to making money in stocks is not to get scared out of them.”

The stock market is currently in a state of disarray, and many investors may be tempted to cut their losses by cashing out. But I think Lynch would recommend the opposite. He once said, “A correction is a wonderful opportunity to buy your favorite companies at a bargain price.”

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is it smart to invest in the stock market right now? Take advice from Warren Buffett and Peter Lynch appeared first on The Motley Fool Australia.

.

More reading
Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/CGtcS7x
10 October 2022
What’s the outlook for the Lake Resources share price in the second quarter?
The Lake Resources NL (ASX: LKE) share price is currently down more than 2% in Monday morning trading at 99 cents.

As the market deals with a number of macroeconomic headwinds, Lake shares have largely traded sideways for the past three months.

After a bumpy ride since trading resumed in January, the Lake share price is relatively flat this year to date, as seen below.

Notice the close alignment with movement in the benchmark S&P/ASX 200 Index (ASX: XJO), particularly since March.

What’s in store for Lake?

Coming into the second quarter of 2023, the outlook for the ASX lithium share hinges on a number of factors.

Perhaps the most important is the price of lithium and its outlook into the future.

After retreating in the April-May period, the battery metal has reclaimed its growth pattern with lithium carbonate recently nudging past all-time highs in September. It has held this level since.

Lake also announced it had secured a strategic investment and offtake agreement with WMC Energy at its Kachi Project in Argentina.

The deal sees WMC agree to take 50% of the battery-grade lithium produced at the project, up to 250,000 metric tonnes per annum over a 10-year term.

What do the experts say?

Meanwhile, brokers are bullish on Lake Resources shares. According to Refinitiv Eikon data, 100% of analysts covering the share rate it a buy right now.

The consensus share price target is $2.42. That implies significant upside potential of around 144% at the time of writing should it be accurate.

Noteworthy is that Lake Resources had $175.4 million in cash and equivalents on its balance sheet in FY22, up from $25 million the year prior.

Shareholder equity also increased to $218 million, however, the company is yet to commence full operations with turnover or operating profit.

It is also reinvesting heavily back into its business with its available cash. Cash flow after capital expenditures (CapEx) was a negative $32 million, up from the $7 million loss in FY21.

Lake Resources share price snapshot

Certainly, the outlook for Lake Resources looks to be centred around movements on its Kachi Project, the price trajectory of lithium, and the market’s reaction to ongoing systematic risks.

Despite its recent stagnation, the company’s share price has gained 82% in the past 12 months.

The post What’s the outlook for the Lake Resources share price in the second quarter? appeared first on The Motley Fool Australia.

.

More reading
Motley Fool contributor Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/pVcHmbl
10 October 2022
Morgans names the ASX 200 mining shares to buy and sell
If you’re wanting to invest in the mining sector, then the team at Morgans has got you covered.

This morning the broker released a note that reveals which ASX 200 mining shares it believes investors should buy and which they should sell.

Which ASX 200 mining shares are buys?

According to the note, the broker believes investors should be focused on cash flow right now.

With that in mind, Morgans believes BHP Group Ltd (ASX: BHP) and South32 Ltd (ASX: S32) are the best mining shares to buy.

It currently has an add rating and $47.40 price target on BHP’s shares. Morgans said:

Attractive on its FCF & risk profile. Strong numbers and less ‘can go wrong’ relative to its div miner peers, mainly driven by its opex performance and capex profile.

As for South32, its top pick, its analysts have an add rating and $5.40 price target on its shares. The broker explained:

Lower margin than its Aussie iron ore peers but the strongest FCF yield on offer, with free cash flow on sale in a business that continues to make smart asset decisions as it shifts its portfolio.

The broker also rates Rio Tinto Limited (ASX: RIO) shares as a buy. It has an add rating and $108.00 price target on them.

Which are the shares to sell?

This morning, Morgans has become the latest broker to slap a sell rating on Fortescue Metals Group Limited (ASX: FMG) shares.

The note reveals that the broker has put a reduce rating on its shares and cut its price target down to $14.50. Morgans has warned that Fortescue’s free cash flow could be heading to zero in the future. The broker said:

FMG looks in the most difficult position from an FCF perspective. While investing in decarbonising and green/renewable projects has real positives attached, there is no disputing the capital-intensive nature of such spending and decade+ payback profile (we estimate c2034 in FMG’s case). While FMG is doing meaningful things that do add to its ESG profile, that helps our investment view, it also puts it at a distinct FCF disadvantage on our estimates to its local peer group for the next decade.

Consensus is bearish but still has not factored in all the capex coming from decarb (now guided) and mine/hub replacement. FCF could be heading to zero for 7-8 years.

The post Morgans names the ASX 200 mining shares to buy and sell appeared first on The Motley Fool Australia.

.

More reading
Motley Fool contributor James Mickleboro 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.

from The Motley Fool Australia https://ift.tt/ouTUXfm
10 October 2022
Guess which ASX All Ords director just bought $1.6m of their company’s shares
Insider buying is often heralded as a signal that those at a company’s helm are confident of its potential growth. And this All Ordinaries Index (ASX: XAO) share has been subject to yet more insider buying.

Humm Group Ltd (ASX: HUM)’s largest shareholder Andrew Abercrombie – who also happens to be its founder and chair – has upped his stake in the diversified financial provider once more.

He now holds approximately 23.6% of the ASX All Ords company’s outstanding shares, according to ASX data. The Humm share price is currently trading at 47 cents, leaving his parcel valued at around $55 million.

Let’s take a closer look at the latest round of insider buying of the company’s shares.

ASX All Ords share sees more insider buying

Abercrombie has been at it again, indirectly forking out $1.6 million on Humm shares.

His buying comes just months after he was reinstated as the company’s chair after the entirety of its board, aside from Abercrombie, walked out.

Their exit came in the wake of an Abercrombie-led campaign against a $335 million acquisition offer for the company’s consumer finance leg – containing its BNPL business.

The part-cash, part-scrip bid came from Latitude Group Holdings Ltd (ASX: LFS). Both an independent expert and the majority of the company’s board concluded the offer was in shareholders’ best interests in May.

Abercrombie was the only director to disagree. He soon upped his stake in a vocal effort to halt the transition.

A release to the ASX following the acquisition’s failure, authorised by the majority of the company’s directors, read:

The events leading to the termination of the proposed sale … have caused the majority directors of [Humm] to conclude that they cannot remain on the board … with Andrew Abercrombie.

The now-chair snapped up around 3.3 million additional shares in the ASX All Ords company last week.

Of those, around 2.1 million of the All Ords company’s shares were snapped up by Abercrombie’s trust. Another parcel of approximately 1.2 million shares was bought by the Abercrombie Superannuation Fund.

That leaves the director holding 118 million Humm shares. The company currently has 500 million shares outstanding, according to the ASX.

The post Guess which ASX All Ords director just bought $1.6m of their company’s shares appeared first on The Motley Fool Australia.

.

More reading
Motley Fool contributor Brooke Cooper 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 recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/w5bh2dW
10 October 2022
How bad was the first quarter for the Woodside share price?
The Woodside Energy Group Ltd (ASX: WDS) share price has seen considerable volatility in 2022. The last few months have seen the rollercoaster ride continue.

While Woodside shares have gone up 58% in 2022 so far, the oil and gas ASX share fell by 0.6% between 30 June 2022 to 30 September 2022. That compares to a 1.4% decline for the S&P/ASX 200 Index (ASX: XJO).

Interestingly, since the end of the last quarter, the Woodside share price has gone up 10%. That compares to a gain of ‘only’ 4.5% for the ASX 200.

What’s the latest for the Woodside share price?

From the start of the year, energy prices have increased significantly. Woodside has benefited from this because it’s selling its production at a materially higher price than it was last year.

The big news over the last few months from the business was its half-year report for the period ending 30 June 2022. It said that in HY22 operating revenue went up by 132% to US$5.81 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) increased to 165% to US$3.97 billion, and underlying net profit after tax (NPAT) increased 414% to US$1.82 billion.

Free cash flow surged 688% to US$2.57 billion and the interim dividend jumped 263% to US$1.09 per share. Keep in mind that the returns I quoted earlier don’t include the payments of the dividend either.

Woodside Energy CEO Meg O’Neill said:

Our first results since the completion of the merger with BHP’s petroleum business highlight the increased financial and operational strength delivered by our larger, geographically diverse portfolio of high-quality operating assets.

Production for the half year was 19% higher at 54.9 million barrels of oil equivalent, benefiting from the contribution in the month of June of the former BHP assets and improved reliability at our LNG facilities.

Shareholders benefited from the rise in energy prices and the Woodside share price has already risen to reflect that. Investors are now benefiting from the strong dividend payments.

But, the oil price has been going backwards in the last few months, likely because investors are worried about what a global recession may mean for oil demand.

What could happen next?

Woodside’s boss pointed to positives in both the short term and long term for the business:

The upheavals in global and Australian energy markets witnessed over the course of the past six months have shone a spotlight on the importance of gas in the world’s energy mix and underscores our confidence in the longer-term demand outlook for gas, which makes up 70% of Woodside’s portfolio.

Safe and reliable supplies of gas are not only critical to global energy security but will play a key role as our customers seek to decarbonise, alongside new energy sources such as hydrogen and ammonia that Woodside is investing in.

Our strategy to thrive through the energy transition as a low-cost, lower-carbon energy provider continues to progress through recently announced initiatives across hydrogen refuelling, carbon capture and storage and carbon to products technologies.

Some brokers have a view on the business. Morgan Stanley has an overweight rating and a price target of $37 on the business. That implies a mid-single-digit rise over the next year.

Citi rates it as a buy, with a price target of $36.50. That’s a potential rise of around 5% over the next 12 months.

The post How bad was the first quarter for the Woodside share price? appeared first on The Motley Fool Australia.

.

More reading
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison 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.

from The Motley Fool Australia https://ift.tt/sd2GVIb
10 October 2022
3 ASX dividend shares proving they can handle inflation
Inflation is having a rough impact on different parts of the economy. Some valuations have plummeted and many companies are warning that inflation will affect their cost of doing business. However, there are some ASX dividend shares that are managing to handle it well.

Some businesses have revenue linked to inflation, so these names could be ones to consider.

Despite recent share price movements, the following companies could be opportunities.

APA Group (ASX: APA)

APA is one of the largest infrastructure businesses in Australia. It owns a network of gas pipelines around the country, transporting half of the nation’s natural gas usage. APA also owns various gas-related assets (such as energy generation and storage), as well as renewable energy assets.

Interestingly, it is working on a way for hydrogen to be transported in its pipelines. This could be an effective way to future-proof the ASX dividend share and extend the life of its assets.

So how does inflation come into the picture? A “significant portion” of its revenue is linked to inflation – a large majority of it. The company benefits because its contracts have built-in revenue growth in line with inflation. As an example, the Wallumbilla Gas Pipeline in Queensland saw a 7.5% increase in contracted revenue with its annual reset in January 2022.

In FY23, the distribution per security is expected to grow by 4% to 55 cents. This translates into a forward grossed-up dividend yield of 5.6%.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a globally-growing ASX retail share that sells affordable jewellery focused on younger shoppers.

FY22 saw strong performance. On a comparable 52-week basis, revenue went up 55.6% and net profit after tax (NPAT) grew 110.3%. Lovisa also added 85 net new stores to end the financial year with 629 shopfronts.

The company said that in the third quarter of FY22, it implemented price increases that helped deliver sales growth with “minimal impact” experienced in volumes.

In FY23, the first seven weeks saw total sales growth of 66.1% on the same period in FY22. The ASX dividend share had opened another 22 stores in the new financial year to date.

In FY22, Lovisa paid a dividend per share of 74 cents. That means it has a trailing grossed-up dividend yield of 3.5%.

The Lovisa share price is almost 20% higher than when it started 2022.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is one of the largest funeral providers in Australia and New Zealand.

The business saw a recovery from COVID-19 impacts in FY22. Excluding one-off items, Propel said that its FY22 revenue increased 20.6% to $145.2 million and operating earnings per share (EPS) increased by 31.1% to 15 cents.

In the first six weeks of FY23, total and comparable funeral volumes were “materially higher” than the prior corresponding period. In the month of July 2022, the average revenue per funeral was around 6% higher than FY22.

Over the long term, it’s expecting volume growth because of “favourable demographics” in Australia and New Zealand.

Commsec estimates suggest that the ASX dividend share is going to pay an annual dividend of 12.4 cents per share in FY23. That would be a grossed-up dividend yield of 3.6%.

The Propel share price has gone up 10% in 2022, showing its resilience.

The post 3 ASX dividend shares proving they can handle inflation appeared first on The Motley Fool Australia.

.

More reading
Motley Fool contributor Tristan Harrison 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 APA Group. The Motley Fool Australia has recommended Lovisa Holdings Ltd and Propel Funeral Partners Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/KBMrEgI
10 October 2022
Why is the Block share price in free fall today?
The Block Inc (ASX: SQ2) share price is falling hard on Monday, down 6.2% in morning trade.

Block shares closed on Friday trading for $94.94 and are currently trading for $89.07 apiece.

So, what’s driving today’s sell-off of the global buy now, pay later (BNPL) stock?

Why the big sell-off?

There are two primary drivers pushing the Block share price lower today.

And both stem from the United States.

First, Block is dual-listed, on the ASX and the NYSE. The global payments company started trading on the ASX on 20 January this year after acquiring Afterpay.

As you’d expect, shares on the ASX trade in close correlation with those on the NYSE. And on Friday the Block share price tumbled 7.3% in the US markets.

Which brings us to the second factor putting the company under renewed pressure today. The same reason Block tumbled on the NYSE.

Namely, a surprisingly strong labour market in the US.

The September jobs report saw the world’s largest economy add more jobs than consensus expectations, driving the unemployment rate down to 3.5%. That’s the lowest unemployment rate recorded in the US in half a century. Alongside the tight labour market, wages are marching higher, up some 5% year on year.

You might think a strong US labour market and rising wages would be something to celebrate, particularly for investors in a BNPL stock. But that’s not the case in markets that rise and fall in lockstep with the Federal Reserve’s interest rate intentions.

Rising wages and low unemployment have again upped the odds that the Fed will continue to tighten aggressively. Which, alongside the tumbling Block share price, saw the tech heavy NASDAQ fall a precipitous 3.8% on Friday.

Block share price snapshot

With today’s intraday falls factored in, the Block share price is down 50.7% since listing on the ASX on 20 January.

For some context, the S&P/ASX 200 Index (ASX: XJO) is down 12.1% over that same period.

The post Why is the Block share price in free fall today? appeared first on The Motley Fool Australia.

.

More reading
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 positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/9IgCxzN
10 October 2022
Core Lithium share price lower despite big news
The Core Lithium Ltd (ASX: CXO) share price is falling on Monday despite the release of a positive announcement.

In early trade, the lithium miner’s shares are down slightly to $1.14.

What’s going on with the Core Lithium share price?

The Core Lithium share price has dropped today after broad market weakness offset the release of an announcement on the Finniss Lithium Project near Darwin.

According to the release, Core Lithium has awarded a five-year operations and maintenance (O&M) contract for the Dense Media Separation (DMS) plant at the Finniss Lithium Project.

This contract has been awarded to Primero, which is a wholly owned subsidiary of NRW Holdings Limited (ASX: NWH).

The release notes that the scope of the O&M contract not only includes the DMS processing facilities, but also related Tailing Storage Facilities (TSF) infrastructure at the project. Management estimates that the contract has a value of $60 million over the five years.

What’s next for Core Lithium?

This is a key contract award and brings the commencement of production a huge step forward.

And the good news is that Primero has the majority of key personnel on hand for deployment into the contract commencing from this month. It expects to complete all remaining recruitment and operational readiness activities by December, ready for first spodumene concentrate production in the new year.

Core Lithium’s CEO, Gareth Manderson, was pleased with this latest development. He said:

The O & M contract award to Primero extends the relationship Core has with Primero from beyond the Engineering, Procurement & Construction (EPC) contract. Significantly Primero are not only building the projects DMS facility, they now back their workmanship through the O & M.

The post Core Lithium share price lower despite big news appeared first on The Motley Fool Australia.

.

More reading
Motley Fool contributor James Mickleboro 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.

from The Motley Fool Australia https://ift.tt/SoVlq9c
10 October 2022