ASX to fall, and 5 small caps to watch today. Picture Getty
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The ASX is poised to open lower on Wednesday after last hour selloff in New York. At 8am AEDT, the ASX 200 March futures contract was pointing down by 0.15%.
Overnight, the S&P 500 fell 0.3%, the Dow finished 0.7% lower, while Nasdaq slipped 0.1%.
American consumers felt worse about the economy in February according to a monthly survey, with the index slumping from 106 in January to 102.9.
US retail inventories, excluding auto, rose 0.3% for the month while home prices fell 0.5%.
“The drop in consumer confidence in February aligns with weaker business confidence readings as the Fed’s sharp increase in interest rates start to bite,” said Ben Ayers, nationwide senior economist.
Despite the weak data, bond prices are climbing again and 10-year US yield rose 1bp to 3.94%.
In stock news, Target lifted 1% as earnings topped expectations. Zoom was also up 1% after a better than expected Q4.
Tesla tumbled 1% as Mexico’s president Andrés Manuel López Obrador confirmed the EV maker will soon build a new plant in Monterrey, Mexico.
Disney shares fell 1% as Florida Governor Ron DeSantis signed a bill granting him power over the ‘special district’ on which Disney World is located and has controlled since the 1960s.
“Today the corporate kingdom finally comes to an end,” said DeSantis, who is expected to run for president in 2024.
50-year old California man Jeff Reitz meanwhile has set the world record for making 2,995 visits in as many days to the Disney theme park.
Reitz said he “was actually shocked” when Guinness called him and informed him of the record.
In other markets, oil and iron prices climbed over 1%, while spot gold lifted 0.5%.
Oil prices remain very choppy with gains last night largely offsetting losses at the start of the week.
“Another month of hot data could necessitate much higher rates and threaten a soft landing, weighing on demand prospects. In the interim, choppy trading in oil looks likely to persist,” said Oanda analyst, Craig Erlam.
Bitcoin meanwhile traded lower by 0.65% in the last 24 hours to US$23,207.
“There remains considerable resistance around US$24,500-US$25,500, a break of which could be a very bullish signal,” said Erlam.
Looking ahead to the ASX today, the CoreLogic national housing prices, and the Monthly CPI Indicator for January are due for release.
Titomic (ASX:TTT)
Titomic has received a purchase order from Boeing Space, Intelligence, and Weapons Systems (Boeing) for $132k for the continuation of flight qualifications of Titomic Kinetic Fusion manufactured components. The purchase order is a result of an agreement made between Titomic and Boeing in May 2019, which was centered around the production of additively manufactured test parts.
Vista Group (ASX:VGL)
The industry software company reported continued ARR (annual recurring revenue) growth as its SaaS platform gains momentum. Total revenue for the full year of FY22 was $135.1m, and ARR was $112.3m, both up 38% on FY21. Bottom line EBITDA was $10.6m, up 63% on FY21.
Activeport (ASX:ATV)
For the half, the networking software company’s revenue grew by 96.9% to $9.2m compared to the same period last year. Gross profit jumped by 166.8% to $3.8m compared to the pcp. Activeport says it will continue to deliver on its strategy to increase revenue by investing in R&D.
Oceana Lithium (ASX:OCN)
High-grade surface lithium mineralisation, including spodumene, has been confirmed at Solonópole Lithium Project in Brazil. Samples taken from exposed pit walls at the western and eastern extremities and pit floor of Mina Bom Jesus de Baixo pegmatite have returned high-grade assays of up to 3.61% Li2O.
Valor Resources (ASX:VAL)
The Peruvian Ministry of Energy and Mines has approved the Environmental Impact Statement, allowing for up to 120 holes to be drilled across multiple targets for Valor’s Picha Copper Project. Valor’s maiden proposed drilling program, comprising 5,000m of diamond drilling, has been planned to initially test four key targets – Cobremani, Cumbre Coya, Maricate and Fundicion.
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