Market Highlights: ASX to rise sharply as Walmart, retail data push Wall Street close to record levels

ASX expected to rise 1pc following strong gains on Wall Street
US retail sales jumped 1pc in July and jobless claims hit a one-month low
Walmart, Nike, and Dell saw stock price bumps

The ASX is set to rise sharply again when the market opens on Friday. At 8am AEST, the SPI ASX200 futures contract was pointing up by 1%.

Overnight, the S&P 500 continued to rise for a sixth consecutive day, up by 1.61% to within a whisker of its record levels. The blue chips Dow Jones lifted by 1.39%, while the tech heavy Nasdaq surged by 2.24%.

Better-than-expected US retail spending and jobless claims gave a boost to market confidence last night.

According to data, sales at US retailers unexpectedly jumped 1% in July, much higher than the 0.3% increase economists were expecting. This follows a small drop of 0.2% in June.

The number of Americans filing for unemployment benefits also dropped to a one-month low last week.

“We’re back to an environment where good news is good news and bad news is bad news,” said Bret Kenwell at eToro.

Aditya Bhave at Bank of America Corp added,” What hard landing? The July retail sales data were consistent with our soft-landing economic outlook.”

US Treasury yields surged (bond prices lower) after the release alleviated fears of a hard landing and prompted traders to move out of safe haven assets.

To stock news, giant retailer Walmart, a stock often used as a barometer for the US economy, jumped by 6.5% after beating revenue and profit forecasts and raising its full-year outlook.

Nike Inc jumped 5% after fund manager Pershing Square revealed it had acquired a new stake in the company.

Dell Technologies also surged 7% after being added to JPMorgan’s analyst focus list, which noted the stock price is at an “attractive entry point.”

Back home, earnings season continues with Amcor, Domain, and the ASX among the companies set to release their results.

What hard landing?

Sahil Mahtani, Head of Macro Research, says that last week’s market turbulence shouldn’t overshadow the expectation of a soft landing for the US economy.

In 2024, some winning trades have indeed quickly lost their gains, with Japanese equities and the Nasdaq falling sharply.

The ‘Magnificent 7’ tech stocks, while still boosted by Nvidia, have seen a significant drop. Meanwhile, the yen and Treasury yields have reverted to earlier levels.

Key factors driving this market shift include concerns about US economic growth, with slowing labour markets and weak corporate earnings raising recession fears.

Additionally, a major unwinding of positions, particularly in AI and Japanese yen trades, has added to market volatility.

“Despite the growth scare, we believe the US economy is not as weak as current fears imply – the data is mixed rather than dire,” said Mahtani.

In other markets …

Gold price rose by 0.25% to US$2,455.15 an ounce.

Oil prices jumped by over 1%, with Brent crude now trading at US$80.79 a barrel.

The benchmark 10-year US Treasury yield lifted by 7 basis points (bond prices lower) to 3.91%.

The Aussie dollar edged slightly higher by 0.2% to US66.10 cents.

Bitcoin meanwhile fell by 2% in the last 24 hours to US$57,685, and Ethereum also dropped 3.5% to US$2,576.

5 ASX small caps to watch today

Novo Resource (ASX:NVO)
Novo is expanding its exploration into the East Pilbara after signing an agreement with the Nyamal Aboriginal Corporation. This deal allows Novo to start exploring its Bamboo and Miralga projects, including drilling at Bamboo and mapping at Miralga. Early results from Miralga show promising gold, silver, copper, lead, and zinc levels.

Auric Mining (ASX:AWJ)
Auric’s Jeffreys Find Gold Mine has generated $6.3 million in gold sales this August, with 150,000 tonnes of ore currently being processed. The total cash generated from the latest campaign is $10.8 million, and the company expects to process 300,000 tonnes this year. Auric will receive $3 million soon, including $2 million in surplus and $1 million in working capital repayment. CEO Mark English said that gold prices are strong, and the mine is performing better than expected.

Gold Mountain (ASX:GMN)
GMN has received new stream sediment samples from its Poções Prospect in Brazil, showing high-grade rare earth elements and expanding known areas of mineralisation. The latest results confirm and extend previous high-grade findings, with some samples reaching up to 587 ppm of total rare earth oxides. The company is planning further exploration, including drilling and radiometric surveys, to identify high-grade deposits and refine their findings.

Miramar Resources (ASX:M2R)
Miramar has started its first drilling at the Bangemall Project in WA, targeting nickel, copper, cobalt, and platinum group metals. This drill campaign, funded in part by the WA government’s Exploration Incentive Scheme, will explore potential mineral deposits at Mount Vernon and Trouble Bore. The company is focusing on a unique type of mineralisation not previously explored in the region. Miramar says it is eager to test its targets after three years of research and development.

Move Logistics (ASX:MOV)
MOV has appointed Paul Millward as interim CEO starting September 4. Millward, known for his successful leadership at 2 Cheap Cars and his background in sales and finance, will help steer the company through a period of change. The current CEO, Craig Evans, will assist during the transition.

At Stockhead we tell it like it is. While Miramar Resources is a Stockhead advertiser, it did not sponsor this article.