Morning Trading July 19, page-67

Australian:
ASX falls; Wall St all red as investor rotation continues; Lifestyle withdraws guidance; APRA trims Westpac risk capital add-onDavid Rogers and Joseph Carbone

Accent Group raised to Overweight: Jarden Securities

Accent Group raised to Overweight; $2.50 target: Wilsons

Auckland Airport cut to Neutral; $8.13 target: Jarden Securities

Domino's Pizza target price cut 18pc to $37: Morgans Financial

Duratec started at Buy; $1.52 target: Bell Potter

Evolution cut to Neutral; $3.75 target: JPM

Flight Centre raised to Buy; target price raised 31pc to $27.80: UBS

Fortescue target price raised 16pc to $14.50: Macquarie

Genesis Minerals cut to Neutral; target cut 9pc to $2.15: UBS

Jumbo Interactive started at Underweight; $14.50 target: JPM

Sandfire raised to Overweight; $9 target: Jarden Securities

Australia's share market is having its worst day in over five-weeks.The S&P/ASX 200 index is down 1.2 per cent at 7938 after diving to a five-day low of 7923.6 on broad-based falls at the open after the US selloff broadened out.The charts would suggest the market is a buy near 7900 targeting 8300.The materials sector is weakest with BHP down 2.1 per cent to a 13-month low of $41.75, Rio Tinto down 2 per cent and Fortescue down 1.9 per cent.Evolution Mining dives 5 per cent as gold miners retreat.James Hardie falls 2 per cent after diving last week.Property also underperforms with Goodman down 1.8 per cent.Major banks fall 1.1-1.4 per cent with ANZ weakest.In health care, Cochlear dives 2.7 per cent.Lifestyle Communities dives 17 per cent after pulling its earnings FY25 guidance.3h agoJuly 19, 2024

Are investors rotating or just selling?

Technology stocks sold off again on Thursday. This time though it wasn’t clear what investors might be rotating into, except perhaps cash.

The Nasdaq fell 0.7 per cent as most mega-cap tech names finished in the red, with the notable exceptions of Nvidia and Meta Platforms, which rose 2.8 per cent and 3 per cent respectively.

The chip sector more broadly staged a minor bounceback after Wednesday’s rout as the PHLX Semiconductor Index ended the day up 0.5 per cent.

Yet, it remains down 8 per cent from its peak earlier this month, and as Heard’s Dan Gallagher writes, the issues raised Wednesday, including US-China tensions and the potential lack of security guarantees for industry hub Taiwan, won’t be going away anytime soon.

But, other sections of the market were down as well, including those which have recently benefited from migration of investor interest out of tech. The small-cap Russell 2000 index fell 1.8 per cent, and the Nasdaq Regional Banking Index slid 1.5 per cent. Big banks did no better, with Dow components Goldman Sachs and JPMorgan both falling 3.2 per cent.

– The Wall Street Journal