The Sayona Mining Ltd (ASX: SYA) share price is struggling today amid the announcement of a new strategic acquisition by the emerging lithium producer.

Sayona shares are down 6.92% and are currently trading at 24.2 cents each. For perspective, the S&P/ASX 200 (ASX: XJO) is 0.37% in the red today.

Let’s take a look at what is going on with the Sayona Mining share price.

Lithium shares struggle

Sayona Mining is not falling as much as some of its ASX lithium share peers today. The Core Lithium Ltd (ASX: CXO) share price is sinking nearly 17%, while Allkem Ltd (ASX: AKE) shares are descending by 13%. The Pilbara Minerals Ltd (ASX: PLS) share price is down 11%.

Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) is 2.06% in the red today. This follows a similar trend in US markets overnight.

The Livent Corp (NYSE: LTHM) share price slipped 4.16% on Monday in the US, while Sociedad Quimica y Minera de Chile (NYSE: SQM) shares descended 5.3%. Albemarle Corporation (NYSE: ALB) shares fell 2.78%.

Investors in Australia also may be selling off some of their gains today after ASX lithium shares had a top run on Monday.

Today, Sayona Mining advised of a new strategic acquisition after the market closed on Monday. Sayona subsidiary North American Lithium (NAL) has entered an earn-in agreement with Jourdan Resources (TSXV: JOR) related to the Vallee Lithium Project in Quebec.

Under the deal, NAL will acquire 20 claims (out of a total of 48 spanning 1,997 hectares) with a right to earn a 51% stake in the remaining 28 claims of the project.

By spending C$4 million on exploration, NAL can gain a 25% stake in the project, while up to 51% interest can be attained by spending C$10 million in a two-year period.

Commenting on today’s news, Sayona Mining managing director Brett Lynch said:

Sayona continues to pursue opportunities for expansion and this is an excellent opportunity to swiftly expand NAL’s potential resource base, paving the way for an increase in NAL’s future mine production capacity.

Sayona Mining share price snapshot

The Sayona Mining share price has soared nearly 47% in the past year while it has surged 87% year to date.

For perspective, the ASX 200 has fallen 4.5% in the past year.

Sayona has a market capitalisation of more than $2 billion based on the current share price.

The post Sayona Mining share price slides 7% despite acquisition news appeared first on The Motley Fool Australia.

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• Why is the Sayona Mining share price rising today?
• Up 75% in 2022, is it time to cash in on Sayona Mining shares?

Motley Fool contributor Monica O’Shea 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.

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The AGL Energy Limited (ASX: AGL) share price popped then dropped on Tuesday amid news all four of Mike Cannon-Brookes’ nominees have been elected to the company’s board.

The win is in defiance of the majority of the board’s recommendations.

It also marks the activist shareholder and billionaire’s second major victory against the energy giant. Cannon-Brookes famously led a campaign against AGL’s ultimately scrapped demerger plan in May.

The AGL share price turned an earlier tumble into a gain this morning. The stock plunged 0.5% to $7.66 in early trade before leaping 0.65% to $7.75 shortly after today’s release.

However, at the time of writing, the AGL share price has slipped back into the red. It’s now trading at $7.675, 0.32% lower than its previous close.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 0.4%. The S&P/ASX 200 Utilities Index (ASX: XUJ) has also fallen 0.08%.

Let’s take a closer look at the win chalked up by newly instated AGL directors Mark Twidell, Dr Kerry Schott, Christine Holman, and John Pollaers.  

All 4 Cannon-Brookes nominees appointed to AGL board

Atlassian Corp (NASDAQ: TEAM) co-founder and co-CEO Cannon-Brookes has won another battle against the AGL board, the company’s chair Patricia McKenzie revealed at its annual general meeting (AGM) today.

All four nominees Cannon-Brookes’ investment vehicle Grok Ventures put forward to the company’s board were elected based on proxies lodged ahead of the meeting. Of the newly appointed directors, only Twidell was endorsed by the board.

McKenzie commented today:

The board welcomes these new directors … and will work constructively with them in the best of interests of shareholders.

She also revealed AGL will likely receive a ‘first strike’ on its remuneration report after “a couple of large shareholders voted against it”. McKenzie continued:

This is a disappointing result given that all major proxy advisors recommended that shareholders vote in favour of the report and no material concerns were identified.

However, we will take this outcome into account when we review our remuneration structure during FY23 to consider opportunities to further align the structure with company performance and long-term shareholder value.

A first strike occurs when more than 25% of shareholders vote against a remuneration report.

Looking more broadly, the AGL chair recognised what was “a difficult year for AGL”. 

However, the company’s board is said to be confident it can move forward with “the right strategy … to deliver reliability and affordability of the NEM, value to shareholders, and an accelerated decarbonisation pathway.”

AGL recently revealed a renewed strategy that would see it ditching coal by 2036 – a decade earlier than planned. The plan could see the company forking out $20 billion for new generation and firming capacity between now and then.

AGL share price snapshot

Despite today’s slump, the AGL share price has been performing well recently.

The stock has gained 22% since the start of this year. It’s also currently 46% higher than it was this time last year. Though, looking further back, the AGL share price has dumped 69% over the last five years.

Comparatively, the ASX 200 has fallen 6% year to date and 4% over the last 12 months. It’s 20% higher than it was in November 2017.

The post AGL share price slips amid Cannon-Brookes’ board victory appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
• Why did the AGL share price lag the ASX 200 on Monday?
• Here are the 3 most traded ASX 200 shares on Monday

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 positions in and has recommended Atlassian. 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.

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A little-known ASX gold share is setting the bar high today.

While the All Ordinaries Index (ASX: XAO) is down 0.2% heading into the lunch hour, this gold stock junior leapt 77.7% in early trade and is currently up 58.3% from yesterday’s close.

The big move higher doesn’t come after the ASX gold share struck a rich vein of the yellow metal, but rather a significant rare earth element (REE) announcement.

Any guesses on which explorer we’re talking about?

If you said Victory Goldfields Ltd (ASX: 1VG), give yourself a gold star.

What REE discovery did the ASX gold share report?

The Victory Goldfields share price is rocketing after the company announced promising initial results from its 118 hole air core (AC) drill campaign at its North Stanmore REE project, located in Western Australia.

The results revealed “significant” REE was confirmed up to 4 kilometres from the explorer’s initial discovery.

The ASX gold share said the assays returned Heavy Rare Earth Oxide (HREO) enriched with a HREO/TREO ratio of 34%. The company noted this could be up to 350% more valuable compared to Light Rare Earth Oxide (LREO) hard rock deposits.

Scandium – used to manufacture the alloys in fighter jets as well as in hydrogen fuel cells – in the latest assays exceeded global economic grades.

Commenting on the results sending the ASX gold share rocketing higher today, Victory Goldfields’ executive director Brendan Clark said:

Rare Earth Element grades and critical metal ratios at this level, potentially make the discovery one of the most valuable ionic clay hosted rare earth systems compared to our peers based on our high basket price…

The North Stanmore discovery also benefits from direct access to the Great Northern Highway and close proximity to Perth and the Geraldton Port, making the discovery a market leader for its logistical advantages.

The explorer intends to immediately kick off another 10,000 metres of AC drilling and has appointed RSC Mining & Mineral Exploration to commence a (JORC) Mineral Resource Estimate.

Victory Goldfields share price snapshot

The ASX gold share is a relative newcomer to the exchange, having listed on 22 July 2021.

With today’s big intraday lift factored in, the Victory Goldfields share price is up 43% in 2022. That compares to an 8% calendar year loss posted by the All Ordinaries.

The post Guess which ASX gold share just exploded 70% on a new rare earths find appeared first on The Motley Fool Australia.

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More reading

• The best US stocks to buy with $500 right now
• Guess which ASX tech share just rocketed 60% on takeover news
• Why is the Core Lithium share price falling 12% on Tuesday?
• Building a passive income for retirement? Check out these 3 ASX 200 dividend shares
• Why is the CBA share price charging higher today?

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.

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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 hasn’t been an ideal place for investors to park their money in 2022 as major indices such as the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite are all in the red this year thanks to factors including a hawkish Federal Reserve, high inflation, and macroeconomic headwinds. But investors shouldn’t forget that the stock market gives investors one of the best avenues to increase their wealth in the long run.

The average stock market return has been solid over the years and now may be a good time for investors to pick up some top stocks that have witnessed a brutal sell-off in 2022. If you have $500 to spare right now — you don’t need the money in the next few years, your high-interest debt is paid off, and you’ve got your emergency fund set — then it could make sense to buy shares of Shopify (NYSE: SHOP), Snowflake (NYSE: SNOW), and Nvidia (NASDAQ: NVDA).

1. Shopify

Shares of e-commerce platform provider Shopify have dropped 73% so far in 2022, but investors have seen some respite of late thanks to impressive third-quarter results that were released last month.

Shopify’s quarterly revenue jumped 22% year over year to $1.4 billion, driven by healthy demand for the company’s merchant solutions. The merchant solutions business brought in $990 million in revenue last quarter, a 26% year-over-year jump and nearly 71% of total revenue. It’s clear that online merchants are turning to Shopify’s payments and shipping solutions to build their e-commerce businesses.

Shopify is looking to bolster its merchant solutions segment with the $2.1 billion acquisition earlier this year of Deliverr, which will help Shopify enhance its fulfillment network and allow merchants to manage inventories across multiple e-commerce platforms. Shopify also aims to offer two-day and next-day delivery options to its merchants in the U.S. following the Deliverr acquisition.

Shopify has reportedly gained access to 80 Deliverr partner-operated warehouses, and that number is expected to double by 2024. The company’s move into e-commerce fulfillment could turn out to be a smart move in the long run. That’s because the e-commerce fulfillment market is expected to clock nearly $200 billion in annual revenue by the end of the decade.

The pursuit of such lucrative markets helps explain why analysts are expecting Shopify’s top line to increase substantially.

SHOP Revenue Estimates for Current Fiscal Year data by YCharts

With Shopify trading at 7.5 times sales right now, as compared to its 2021 price-to-sales multiple of 41, investors are getting a good deal on this e-commerce stock following its brutal sell-off.

2. Snowflake

Snowflake is another fast-growing company that has dropped big time in 2022, losing nearly 58% of its value so far this year. That’s not surprising as richly valued growth stocks have fallen out of favor among investors.

Snowflake stock was trading at a whopping 97 times sales last year. Its sharp drop this year has brought the stock’s price-to-sales ratio down to 27. While that’s still rich, investors shouldn’t forget that Snowflake is growing at a terrific pace to justify its rich valuation.

In the second quarter of fiscal 2023, which ended on July 31, 2022, Snowflake’s revenue shot up 83% year over year to $497 million. The company also reported an extremely impressive net revenue retention rate of 171%, which indicates that Snowflake customers have increased their spending on the company’s platform.

Another metric that points toward healthy demand for Snowflake’s offerings is the massive growth in the company’s remaining performance obligations (RPO), a metric that measures “the amount of contracted future revenue that has not yet been recognized.” Snowflake’s RPO shot up 78% year over year to $2.7 billion last quarter, which points toward a robust revenue pipeline.

It is not surprising that Snowflake’s business is enjoying such solid growth. Snowflake’s solutions allow customers to store data in a scalable manner across multiple cloud providers, keep the data secure, and generate actionable insights with the help of machine learning and artificial intelligence.

The company points out that its total addressable market could hit $248 billion by 2026, driven by growing demand for data warehousing, data science, and other applications. So, Snowflake is scratching the surface of a massive market, which explains why analysts are expecting its earnings to increase at an annual rate of nearly 296% over the next five years.

All this makes Snowflake look like an ideal bet for growth investors looking to buy a beaten-down company.

3. Nvidia

Graphics specialist Nvidia has fallen out of favor, down 46% over the past year. The chipmaker’s decline isn’t surprising given that it has fallen upon difficult times amid slowing personal computer (PC) demand.

Still, analysts are upbeat about Nvidia’s prospects. The company’s top and bottom lines are expected to start accelerating from the next fiscal year and it is expected to clock 23%-plus annual earnings growth for the next five years. A closer look at the markets that Nvidia serves will tell us why the chipmaker is expected to regain its mojo.

The first big opportunity for Nvidia lies in the data center accelerator market. Data centers require multiple accelerators such as graphics cards, server processors, and data processing units to operate in a fast and efficient manner. Nvidia is a key player in data center accelerators with its graphics cards powering the cloud offerings of top service providers.

The company has set its sights on the server processor market as well; its first data center central processing unit (CPU) is set to hit the market in 2023. Meanwhile, Nvidia is also finding traction in emerging applications such as the automotive market and “digital twins.”

Investors shouldn’t forget that the demand for graphics cards used in gaming PCs is expected to rebound in the long run, with Mordor Intelligence forecasting 14% annual growth in this space through 2026. So, savvy investors can consider capitalizing on Nvidia’s drop to buy the stock before it flies higher.

Shares of the chipmaker have been in rally mode in recent days, sending the stock’s earnings multiple up to 51, but that’s still lower than its five-year average of 58. A strong set of results when it reports on Nov. 16 could give this semiconductor stock a shot in the arm.  

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

The post The best US stocks to buy with $500 right now appeared first on The Motley Fool Australia.

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Harsh Chauhan 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 Nvidia, Shopify, and Snowflake Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. 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.

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

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The MSL Solutions Ltd (ASX: MSL) share price is having a day to remember.

At one stage today, the shares of the SaaS technology provider to the sports, leisure, and hospitality sectors were up 61% to 29 cents.

The MSL share price has pulled back a touch since then and is currently up 57% to 28.2 cents.

Why is the MSL share price is rocketing higher?

Investors have been scrambling to buy this tech share on Tuesday after it announced a takeover approach from an entity controlled by Pemba Capital Partners.

According to the release, the company has entered into a scheme implementation agreement that will see it acquired for 29.5 cents cash per share by way of a scheme of arrangement.

This implies an equity value of $119 million and represents a premium of 63.9% over the MSL share price at yesterday’s close. It is also an 80.7% premium to the one-month volume weighted average price.

MSL’s board of directors believes the scheme is in the best interests of shareholders. As a result, it unanimously recommends that MSL shareholders vote in favour of the scheme. The board intends to vote all MSL shares held or controlled in favour of the scheme.

Though, this is all in the absence of a superior proposal and subject to the independent expert concluding that the scheme is in the best interests of shareholders.

The scheme also remains subject to a number of conditions which must be satisfied or waived before it can be implemented.

MSL’s executive chairman, Tony Toohey, commented:

Our board of directors has undertaken lengthy negotiations with Pemba (a leading investor in small and mid-sized businesses in Australia and New Zealand) to secure an offer which delivers certainty of consideration to our shareholders at a significant premium to the recent historical MSL share prices.

The post Guess which ASX tech share just rocketed 60% on takeover news appeared first on The Motley Fool Australia.

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• Why is the Core Lithium share price falling 12% on Tuesday?
• Building a passive income for retirement? Check out these 3 ASX 200 dividend shares
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• Why is the Allkem share price crashing 10% today?

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The Core Lithium Ltd (ASX: CXO) share price is falling hard today, down 12.3% in late morning trade.

The ASX lithium stock closed yesterday trading for $1.87 per share and is currently swapping hands for $1.64 per share.

So, what’s going on?

Why the big fall in the Core Lithium share price?

It’s not just the Core Lithium share price that’s taking a big hit today.

While the S&P/ASX 200 Index (ASX: XJO) is down 0.2%, materials stocks are broadly underperforming, with the S&P/ASX 200 Materials Index (ASX: XMJ) down 1.4% at this same time.

Granted, that’s a lot less ground than Core Lithium is losing. Indeed, most of the big name lithium stocks are leading the charge lower today.

The bigger pullback in the lithium stocks looks to be driven by a combination of weakness in US markets overnight combined with an absolutely smashing performance yesterday, likely leading to some profit-taking today.

Yesterday saw the Core Lithium share price close up 11.7%, meaning it’s only down 1.8% from Friday’s close.

Monday’s surge came on the heels of news that China – the world’s number two economy and a voracious consumer of lithium – is moving to scale back some of its strict COVID-zero policies.

The rolling lockdowns have thrown up headwinds for China’s economic growth, and any easing should see an uptick in the Middle Kingdom’s demand for a range of resources, including lithium.

Atop the easing of pandemic restrictions, news also broke that China’s government will offer more support for property developers to spur some life back into its beleaguered real estate markets.

This looks to have helped send Core Lithium shares soaring yesterday, setting shares up for a big retrace today.

How has Core Lithium been tracking in 2022?

Despite the big fall today, the Core Lithium share price remains up 161% in 2022. That compares to a year to date loss of 6% posted by the ASX 200.

The post Why is the Core Lithium share price falling 12% on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Why did ASX lithium shares have a dream run on Monday?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most traded ASX 200 shares on Monday
• Why Accent, Block, Core Lithium, and Fortescue shares are pushing higher
• Why did Core Lithium shares just crack a new all-time high?

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.

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A reliable passive income has the potential to make all the difference in a person’s retirement, allowing them to enjoy their spare time with a regular income stream. Fortunately, S&P/ASX 200 Index (ASX: XJO) dividend shares can help to provide just that.  

Companies that call the index home are generally larger in size and more established than their smaller peers. Indeed, some ASX 200 shares are even blue-chip stocks – market leaders with a strong financial position and track record.

Why I would invest in ASX 200 dividend shares for retirement

ASX 200 shares might appeal to those looking for a long-term, stable investment. While they may be less likely than, say, growth shares to post massive returns, they normally have a well-carved market position and competitive advantages that can help them sail through negative tides.

Additionally, many ASX 200 stocks hand over a portion of their profits to investors in the form of dividends. That means a strategically built portfolio of dividend-paying shares could see a retiree receiving a regular income without lifting a finger.

On top of that, dividend stocks can hedge a retiree’s financial position against inflation. That’s because they’re capable of providing returns greater than the bite inflation takes out of a savings account.

Though, no investment is guaranteed to offer returns or passive income.

So, with all that in mind, here are three ASX 200 dividend shares that brokers rate as buys right now.

3 ASX 200 dividend shares brokers tip as buys

Wesfarmers Ltd (ASX: WES)

Wesfarmers shares could lift nearly 19% from their current price of $46.82 to trade at $55.60, according to broker Morgans.

The expert likes the company’s retail portfolio and management. It also expects the company to grow its dividends to $1.82 per share this fiscal year – up from $1.80 in financial year 2022.

Telstra Group Ltd (ASX: TLS)

Morgans also believes the current Telstra share price – $3.86 – undervalues the telecommunications giant.

The broker also thinks the ASX 200 favourite will pay out 16.5 cents per share this fiscal year and next. Meanwhile, its share price is tipped to rise to $4.60.

HomeCo Daily Needs REIT (ASX: HDN)

Finally, Goldman Sachs tips the HomeCo Daily Needs real estate investment trust (REIT) as a buy.

It slapped the ASX 200 share with a $1.57 price target. It also expects the stock to offer 8.3 cents of dividends per share this financial year and 8.4 cents per share next.

The REIT has paid out 8.3 cents over the last 12 months and currently trades at $1.28.

The post Building a passive income for retirement? Check out these 3 ASX 200 dividend shares appeared first on The Motley Fool Australia.

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More reading

• Up 20% in a month, here’s the bull and bear case for the Lynas share price
• Experts name the blue chip ASX 200 dividend shares to buy now
• Morgans names 2 of the best ASX 200 dividend shares to buy
• Why did the Telstra share price tumble 3% today?
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Telstra Corporation Limited and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher on Tuesday.

In morning trade, the banking giant’s shares are up over 1.5% to $106.86.

Why is the CBA share price pushing higher?

Investors have been bidding the CBA share price higher on Tuesday after responding positively to the bank’s first quarter update.

For the three months ended 30 September, CBA reported a 9% jump in operating income and a 2% increase in cash earnings over the second half average to $2.5 billion.

Australia’s largest bank reported net interest income growth of 16%, which was driven by higher deposit earnings, volume growth across core products, and the benefit of rising rates. This was offset by weaker non-interest income.

What has the reaction been?

Analysts at Goldman Sachs were pleased with the update. The broker highlights that CBA’s earnings are tracking ahead of its first half estimates. Goldman said:

Cash profit from continuing operations in 1Q23 of c.A$2.5 bn was up 13% vs 1Q22 and run-rating c.5% ahead of what is implied by our 1H23E forecasts.

The better-than-expected cash earnings result was due to a combination of lower-than-expected BDD charge and a better than expected NIM [net interest margin] performance, albeit not inconsistent with what we have seen from peers. Against this, non-interest income was weaker (trading, DVA and floods), and costs were a bit higher, such that PPOP was run-rating c.1% above our implied 1H23E forecasts.

And while Goldman notes that the bank didn’t reveal its NIM for the period, the 16% increase in net interest income paints a positive picture. This could be giving the CBA share price an added boost today. It said:

CBA did not provide a NIM for the quarter; however, we note that net interest income was very strong at +16% vs 2H22 average and was run rating 5.5% above our 1H23E forecasts. Based on current GSe balance sheet forecasts, and the fact liquids seem to have grown stronger than loans in the quarter, we estimate a 1Q23 NIM of between 2.05% to 2.10% (which is >10bp higher than our current 1H23E), with its trajectory into 2Q likely still higher.

As things stand, Goldman Sachs has a sell rating and $88.33 price target on CBA’s shares. Though, this recommendation and price target could change in the coming days once the broker has fully absorbed the update.

The post Why is the CBA share price charging higher today? appeared first on The Motley Fool Australia.

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More reading

• CBA share price on watch amid $2.5b Q1 cash profit
• 5 things to watch on the ASX 200 on Tuesday
• Looking to buy CBA shares? Here’s what to watch in Tuesday’s update
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• Don’t panic! Here are 7 reasons we can avoid a recession: AMP

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.

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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 built up some positive momentum last week, but it’s unclear whether the good times will last. At the market open on Monday morning, the Dow Jones Industrial Average (DJINDICES: ^DJI) had given back a tiny portion of its substantial recent gains, trading down about 0.25%.

Even though this earnings season is starting to wind down, some key components of the Dow Jones Industrials are set to report their latest results in the coming week. What Walmart (NYSE: WMT), Home Depot (NYSE: HD), and Cisco Systems (NASDAQ: CSCO) say about the conditions of their respective businesses will play a key role in determining whether last week’s rally continues through this one, or whether the bear will growl once again.

Getting ready for retail

Tuesday morning will bring two key reports from the retail sector. Department store giant Walmart is set to release its results at around 7 a.m. ET, while Home Depot has historically gotten a slightly earlier start, having published its press release last quarter at 6 a.m. ET.

Walmart’s numbers for its fiscal 2023 second quarter, which ended July 31, showed considerable strength amid a tough economic environment. Revenue rose 8.4% to $152.9 billion, and although operating income sagged 7% year over year due to higher costs, its net income of $5.15 billion was up 20% from year-earlier levels. However, the retailer warned at the time that conditions could continue to worsen for the rest of the fiscal year. Management projected that its fiscal 2023 sales would rise by about 4.5%, but forecast that adjusted earnings per share would fall by between 9% and 11%.

Home improvement specialist Home Depot also held up well in its fiscal 2022 second quarter, posting revenue of $43.8 billion for the period that ended July 31. That top-line figure was up 6.5% year over year. Earnings of $5.05 per share compared favorably to year-earlier profits of $4.53 per share, and Home Depot was able to confirm that it still sees its fiscal year sales climbing 3% on mid-single-digit percentage gains in earnings per share.

Investors will be watching closely to see if ongoing macroeconomic pressures start to have bigger impacts on these companies’ financials. Most analysts following Walmart’s stock expect the company to post a year-over-year decline in earnings, albeit with continuing revenue growth. Meanwhile, Home Depot is expected to keep boosting its bottom line. Any disappointments on those fronts could put the Dow stocks’ prices back on a downward slope, although investors will hope for better news to support the recent positive momentum.

Cisco looks to keep inching ahead

Meanwhile, Cisco Systems is set to announce its financial results after the closing bell on Thursday. Investors are hopeful that the networking giant will be able to keep bouncing back during what has been a tough year for tech stocks generally.

In Cisco’s fiscal fourth quarter, which ended July 30, showed the pressures hitting the company. Revenue was down 0.2% year over year to $13.1 billion, with declines in internet-related revenue offsetting gains in the security and application optimization areas. Adjusted earnings dropped by 1% to $0.83 per share. However, annualized recurring revenue rose 8% to $22.9 billion, and Cisco continued to make headway in its transition toward getting more of its overall sales from subscription-based sources.

Investors are hopeful that its fiscal 2023 first-quarter report will show modest strength. Those following the networking giant anticipate sales growth of around 3% and a similarly small rise in earnings.

It’s easy to overlook Cisco within the crowd of disruptive companies competing against it. However, the tech giant has a long legacy of success, and whatever it says Thursday has the  potential to ripple across the entire technology sector. 

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

The post These 3 Dow stocks will make or break the market this week appeared first on The Motley Fool Australia.

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More reading

• Which stocks are most likely to thrive in a recession? Here’s what history shows

Dan Caplinger 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 Cisco Systems, Home Depot, and Walmart Inc. 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.

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The Allkem Ltd (ASX: AKE) share price is falling heavily on Tuesday.

In morning trade, the lithium miner’s shares are down 10% to $14.64.

Why is the Allkem share price sinking 10%?

The Allkem share price is tumbling on Tuesday after broad weakness in the lithium industry offset the release of the company’s annual general meeting presentation and update on the Naraha operation.

Here’s how other ASX lithium shares are performing this morning:

• Core Lithium Ltd (ASX: CXO) shares are down 10% to $1.68
• Liontown Resources Ltd (AX: LTR) shares have fallen 8% to $2.03
• Pilbara Minerals Ltd (ASX: PLS) share have dropped 8% to $4.85

Why are lithium shares falling?

The weakness being exhibited by ASX lithium shares today follows a poor night of trade for their US listed peers on Wall Street overnight.

The likes of Albemarle, Livent, and SQM all dropped into the red despite there being no news out of them.

Though, it is worth noting that the market has been charging higher since the release of a softer than expected inflation reading in the US last week. That sparked hopes that the US Federal Reserve would go easy with its interest rate hikes.

However, comments from the Federal Reserve’s Chris Waller appear to have spooked investors. He warned that the market was overly optimistic and should brace for higher rates. This could have led to some investors reducing exposure to higher risk shares like lithium miners.

In addition, a surge in COVID cases in China dashed hopes of the reopening of the economy. Investors may believe this could impact demand for electric vehicles in the short term.

Allkem’s updates

As mentioned above, today is the day of Allkem’s annual general meeting and the company released a presentation ahead of the event.

That presentation contained no real surprises (positive or negative), with management reiterating its production growth targets and the expectation that demand for lithium will continue to grow materially.

In a separate announcement, Allkem and Toyota Tsusho Corporation (TTC) revealed that the Naraha Lithium Hydroxide plant in Japan has produced its first lithium hydroxide chemical product. Allkem has a 75% economic interest in Naraha.

Allkem CEO and Managing Director, Martin Perez de Solay said:

With our partner TTC, we have achieved a major milestone in successfully producing lithium hydroxide further delivering our vertical integration strategy and the diversification of our product offering. This facility is the first of its kind in the region and we have proven the technology of converting Olaroz technical grade lithium carbonate feedstock into lithium hydroxide. We have a first mover’s advantage and will ultimately be supplying the high-end battery and cathode market.

The post Why is the Allkem share price crashing 10% today? appeared first on The Motley Fool Australia.

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More reading

• ‘No stress’: Experts name 2 ASX shares to buy for strong long-term growth
• Why did ASX lithium shares have a dream run on Monday?
• 4 ASX 200 shares to play the global decarbonisation theme: fund manager
• Top brokers name 3 ASX shares to buy next week
• Top ASX dividend shares to buy in November 2022

Motley Fool contributor James Mickleboro has positions in Allkem Limited. 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.

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