Alphabet, Reddit, Bitcoin rally as Nasdaq peaks. Picture via Getty Images
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The ASX is expected to open modestly higher when the market resumes on Wednesday, buoyed by a rally in US tech stocks that propelled the Nasdaq to a record peak overnight.
At 8am AEST, ASX futures were pointing up by 3 points.
Overnight, the S&P 500 rose by 0.16%, the blue chips-focused Dow Jones fell by 0.36%, while the tech-heavy Nasdaq 100 surged by about 1% to reach an all-time high.
A standout performer was Alphabet, Google’s parent company, which saw its stock soar by 1.6% in regular trading, and another 6% after-hours after reporting earnings that exceeded Wall Street forecasts.
This was primarily driven by increased digital advertising revenue and increased demand for its cloud computing services.
PayPal dropped 4% despite beating Q3 adjusted earnings estimates. The company now projects adjusted earnings per share growth in the high teens for the fiscal year, up from a prior forecast of low to mid-teens growth.
Chipmaker Broadcom Inc jumped 4% following a Reuters report that OpenAI is collaborating with the company on a new AI chip.
Another chipmaker, Advanced Micro Devices (AMD), tumbled 7% after its revenue forecast came in below analysts’ expectations, suggesting that its AI sales are growing at a slower pace than anticipated.
Reddit Inc. skyrocketed by 22% after exceeding sales forecasts for Q3, and anticipates a robust holiday season, as the newly public company reaps the benefits of its investments in advertising technology.
VF Corp, owner of brands like Vans, North Face, and Timberland jumped 27% after reporting fiscal Q2 adjusted earnings of 60 cents per share, exceeding analysts’ expectations of 38 cents.
Chipotle Mexican Grill fell by 4% after posting Q3 sales that slightly missed Wall Street’s expectations.
Trump Media (DJT) rose another 9%, adding to its 22% yesterday. The company’s Truth Social platform has now surpassed Elon Musk’s X in value. DJT is market capped at US$10.3 billion, whereas the non-listed X is valued at US$9.4 billion, according to Fidelity’s latest valuation of its stake in the company.
Bitcoin is also rallying aggressively, trading now at above US$72,000. Its previous high was US$$73,737 achieved in March this year.
With Trump’s campaigning embracing digital assets, Bitcoin is becoming known as a “Trump trade”, especially with him leading in the polls against Kamala Harris.
On the data front, US job openings have dropped to their lowest level since early 2021. This trend runs counter to recent employment figures which indicated a resilient US labour market.
Back home, the ABS will release Australia’s CPI figure later today, with expectations that annual headline inflation will fall to 2.9%.
Nigel Green, CEO of deVere Group, predicts Bitcoin could reach new all-time highs if Donald Trump wins the upcoming US presidential election.
With the race heating up between Trump and Vice President Kamala Harris, Bitcoin is currently trading above US$72,000, just shy of its all-time high of US$73,737 from March 14, 2024.
“A Trump victory could be the catalyst that pushes the world’s first and largest cryptocurrency into uncharted territory,” said Green, citing Trump’s likely focus on deregulation, tax incentives and favourable economic policies for alternative investments like Bitcoin.
During his campaign, Trump has positioned himself as the pro-Bitcoin candidate, advocating for digital currencies and criticising centralised financial institutions.
“This outspoken support has earned him recognition within the crypto community, with many investors viewing his potential return to office as an important bullish signal for Bitcoin.”
“Should he return to office, Trump’s focus on deregulation might extend to cryptocurrency markets, providing a friendlier environment for digital assets like Bitcoin.”
Also, as uncertainty surrounds Trump’s economic stance, Green believes that this makes Bitcoin an attractive hedge against traditional market risks, potentially driving demand.
“If his policies lead to a weaker dollar, investors may flock to Bitcoin as a store of value, spurring further demand and pushing prices upward.”
All prices at 8.30am AEST.
Gold price rebounded by 1% to US$2,774.30 an ounce.
Oil prices traded flattish, with Brent crude now trading at US$71.39 a barrel.
The benchmark 10-year US Treasury yield fell 2 basis points (bond prices higher) to 4.26%.
The Aussie dollar was down by another 0.35% to US65.63 cents.
Bitcoin rose by a further 4% in the last 24 hours to US$72,293, while Ethereum climbed by 3% to US$2,618.
Wisr (ASX:WZR)
The fintech firm has reported a 54% increase in loan originations for the quarter ending 30 September, reaching $77.3 million, up from $50.1 million in the pcp. The company has also improved its 90-day arrears to 1.40%, down from 1.58%, and reduced net losses to 2.06%, compared to 2.75% previously. Wisr’s net interest margin expanded by 29 basis points to 5.64%, reflecting successful repricing initiatives and better funding margins. Its average credit score remained strong at 782. Wisr’s unrestricted cash increased by 17% to $23.7 million, and it has secured two warehouse facilities to support further loan originations.
Dalaroo Metals (ASX:DAL)
Dalaroo announced positive results from its diamond drilling program at Browns Prospect, part of the Lyons River Project. The drilling has confirmed the presence of Broken Hill Type mineralisation, with assay results showing lead-zinc-silver levels of up to 1.1% zinc. A total of four deep diamond core holes were drilled, covering an area of 6 square kilometres. The program was partly funded by the Exploration Incentive Scheme grant from the Government of Western Australia. Located about 1,100 km north of Perth, the Lyons River Project spans 838 square kilometres and is thought to be part of an emerging Broken Hill Type deposit setting.
AuMega Metals (ASX:AAM)
AuMEGA has completed its first reconnaissance till program at the Intersection Project, identifying several priority targets for follow-up. The program involved collecting 914 samples over an area of 15 kilometres by 7 kilometres, making it the largest surficial geochemistry effort the company has conducted since 2021. The results revealed four large areas with significant gold anomalies, particularly within the Windsor Point Group Sediments, which host the company’s Central Zone deposits. Highlights include a peak gold value of 173 ppb and a peak silver value of 5.82 g/t, alongside significant bismuth and copper anomalies. Gold levels were found to correlate with silver, copper, and bismuth, similar to results from the adjacent Bunker Hill Project.
Red Mountain Mining (ASX:RMX)
RMX has completed a detailed review of historical exploration at its Flicka Lake Project in Canada, identifying three parallel quartz veins containing gold. Previous work has found gold-bearing channel samples with values of 9.96 g/t and 12.96 g/t, along with grab samples showing 17.88 g/t, 7.38 g/t, and a peak of 20.07 g/t gold. These veins are hosted by gabbroic rocks and have varying widths, with the veins showing a tendency to pinch and swell. Results from the Flicka Lake Gold Sampling Program are expected soon.
Regener8 Resources (ASX:R8R)
R8R has received a co-funded drilling grant under the WA Government’s Exploration Incentive Scheme (EIS) for its East Ponton Project. The grant, amounting to up to $180,000, will support further exploration of the Hatlifter Ni-Co target over the next 12 months, starting on 1 December. The company is currently conducting its first drilling campaign at Hatlifter, and this funding will assist with follow-up drilling.
At Stockhead we tell it like it is. While Regener8 Resources is a Stockhead advertiser, it did not sponsor this article.
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