Market Highlights: ASX to rise on Friday as Tesla soars 21pc and Newmont slumps 15pc

ASX set to open positively after mixed Wall Street overnight
Tesla shares surge 21pc on strong earnings report
Treasurer Chalmers optimistic about Australian economy

The ASX is set to to kick off Friday on a positive note following a mixed bag from Wall Street overnight.

The tech-heavy Nasdaq was up by 0.61%, driven by the big rally from Tesla. The S&P 500 rose by 0.21%, but the blue chips-focused Dow Jones index slumped by 0.33%, marking four days of losses in a row.

Tesla’s shares shot up by 21% following yesterday’s post-market earnings report.

As you may recall, Tesla posted adjusted earnings of 72 cents per share for Q3, surpassing expectations. Net income rose 17.3% year-over-year to US$2.17 billion, but revenue fell short at US$25.18 billion.

In the earnings call, CEO Elon Musk made some optimistic predictions, including that vehicle sales could increase “20 per cent to 30 per cent next year”.

Boeing shares dipped 1% after the company’s biggest union turned down a new labour contract, dragging out a six-week strike that’s really hit production hard.

United Parcel Service (UPS) shares jumped 5% after the company reported Q3 earnings of US$1.76 per share, beating analysts’ expectations of US$1.63.

IBM dropped 6% after reporting Q3 earnings of US$2.30 per share, beating expectations of US$2.22. However, its revenue came in at US$15 billion, just shy of the US$15.1 billion forecast, even though it was up 1% from last year.

Newmont plunged by 15% after the gold miner reported Q3 earnings of US 81 cents per share, below the expected US 86 cents. Its revenue came in at US$4.61 billion, falling short of the US$4.67 billion analysts were looking for.

Elsewhere, 10-year US Treasury yields dropped to 4.21%, but are still near three-month highs. This follows reports suggesting the Fed Reserve might take its time with rate cuts. Bond yields have spiked this week in both the US and Australia as investors reassess interest rate predictions.

Oil prices dropped by 1% amid fears that sluggish economic growth in Europe could hit energy demand, as well as concerns about the conflict in the Middle East.

Back home, WiseTech Global (ASX:WTC) will be in the spotlight once again today after CEO and founder Richard White announced he was stepping down after the bell on Thursday following allegations of inappropriate behaviour.

Also keep an eye on Qantas (ASX:QAN) as it will be releasing a trading update.

Chalmers says Australia is in a good spot

In an interview with Bloomberg last night, Treasurer Jim Chalmers said he was optimistic about the Australian economy, stating that the country is successfully reducing inflation.

He said “quite extraordinary progress” has been made in controlling price pressures, suggesting that the government’s efforts are yielding positive results.

“We’re getting that inflation rate down without ignoring the risks to growth, which are coming at us from an uncertain global environment and from some domestic sources as well,” Chalmers said.

However, he also pointed out that if disinflation efforts falter, there may be a need for fiscal restraint, referencing the back-to-back budget surpluses achieved by his Labor government.

Chalmers noted that despite Australia facing higher inflation than some other countries, it maintains a stronger economic position, with low unemployment and resilience compared to nations that struggle with higher joblessness or weaker growth.

He also acknowledged the complexities in Australia’s relationship with China, and the importance of ongoing diplomatic management despite differences.

In other markets …

All prices at 8.30am AEST.

Gold price rebounded by 0.5% to US$2,735.72 an ounce.

Oil prices fell by around 1%, with Brent crude now trading at US$74.50 a barrel.

The benchmark 10-year US Treasury yield retreated by 3 basis points (bond prices higher) to 4.21%.

The Aussie dollar was flat at US66.43 cents.

Bitcoin rose by a further 3% in the last 24 hours to US$68,480, while Ethereum climbed by 1.5% to US$2,541.

5 ASX small caps to watch today

Talga Resources (ASX:TLG)
Talga has been awarded a grant from the EU Innovation Fund for its Luleå Anode Refinery, part of its Vittangi Anode Project. The company applied for a EUR 70 million grant and was one of 85 projects selected from 337 applications, receiving part of a total of EUR 4.8 billion in funding. Talga will now move into the ‘grant preparation’ phase, with agreements expected to be signed in early 2025.

Adriatic Metals (ASX:ADT)
Adriatic has received all permits for Phase I of the Veovaca Tailings Storage Facility from Bosnia and Herzegovina’s government. Following a court decision that limited earlier plans, Adriatic found a new site at the former Veovaca open pit, about 2km from the Vares Processing Plant, without using state forestry land. The permits include environmental and construction approvals, with work already underway and the first tailings disposal set for December. The facility will operate for over ten years, with Phase I managing tailings for about 4-5 years at an estimated cost of US$5 million.

ioneer (ASX:INR)
ioneer has received final federal approval for its Rhyolite Ridge Lithium-Boron Project from the Bureau of Land Management. This project is set to quadruple US lithium output, supplying batteries for over 370,000 electric vehicles annually and creating around 500 construction jobs and 350 permanent high-paying jobs in rural Nevada. Construction is planned for 2025, with production expected to start in 2028. With this approval, Ioneer will provide updated reserve figures and project costs by December as it moves towards a Final Investment Decision.

Dreadnought Resources (ASX:DRE)
Dreadnought has been awarded a co-funded diamond drilling grant of up to $180,000 from the WA Government’s Exploration Incentive Scheme (EIS) for its Mangaroon Critical Metals Project. This is the third EIS grant Dreadnought has received this year. The grant will fund two deep diamond drill holes to test the Stinger Niobium Discovery, targeting both supergene oxide mineralisation and fresh bedrock mineralisation. The results will provide essential information for assessing the Gifford Creek Carbonatite.

Nagambie Resources (ASX:NAG)
Nagambie has entered into a Sale and Purchase Agreement with Southern Cross Gold to sell its remaining 30% interest in the Redcastle Exploration Licences. Southern Cross previously acquired a 70% interest by conducting $1,000,000 worth of exploration work. Under the agreement, Nagambie will receive $250,000 in cash and will be refunded its $10,000 bond on one of the licences. With this sale, Nagambie will have no interest in the Redcastle Exploration Licences. Nagambie has deemed its remaining interest in Redcastle a non-core asset, deciding to focus on its primary asset, the high-grade gold-antimony discovery at the Nagambie Mine.