Overseas markets highlights

The US markets rallied overnight: Dow closed +1.35%, S&P500 +1.14%, and Nasdaq +0.99%.

The highlight came from US Federal Reserve Jerome Powell, who said that any inflation would be transitory, and that rising yields are a good sign of recovery.

That seemed to push investors to continue rotation into cyclical stocks, with tech stocks Apple and Amazon being sold. Tesla’s stock is up 6%, resembling a move in Bitcoin.

Bitcoin still above to US$48,000 level

Bitcoin climbed slightly and was trading at US$48,730 level at 8am AEDT.

Institutional investors are coming in droves to buy Bitcoin, with Jack Dorsey’s Square the latest high profile company to buy the coin. Square more than quadrupled its US$50 million BTC holding, adding another $US170 million purchase on Tuesday.

Earning seasons on the ASX

Afterpay (ASX:APT) is to report its earnings later today, but is currently on trading halt ahead of capital raising.

These are some ASX companies who reported their earnings before the bell.

Qantas (ASX:QAN)
The national carrier reported a net loss of $1.08 billion for the first half of 2021, in line with consensus.

NEXTDC reported its results after the bell last night – a 27% increase in revenue to a record $121.6 million.

Temple & Webster (ASX:TPW)
Retailer Temple & Webster reported first-half net profit after tax of $12.2 million, up from $2.9 million.

Regis Resources (ASX:RRL)
The gold producer posted $84.8 million profits for the first half compared to $93.4 million on pcp.

Liberty Financial (ASX:LFG)
First-half net profit rose 12 per cent to $83 million.

5 ASX small caps on watch today

Prospa (ASX:PGL)
Prospa has reduced its net loss to $52.2 million for the half compared to $71.4 million on pcp.

Nexion (ASX:NNG)
Data company Nexion has announced a deal with IBM for cloud services in WA.

The newly ASX-listed company SILK Laser today posted its maiden H1 results. Revenue up 78% to $30.6 million, network cash sales up 62% to $44.9 million, and FY21 Prospectus forecast upgraded.

Universal Store Holdings (ASX:UNI)
The youth retailer reported first half profit after income tax for the period is up 48% to $15.8 million.

The marketing and design company reported a 92% increase in net profits for the first half $23.7 million, even as revenues fell by 3% due to streamlining of cost base.