Market Highlights: Dow Jones hits record, iron ore rebounds, and 5 ASX small caps to watch today

ASX set to open higher after Dow hits record
Oil prices rise and iron ore climbs 4pc to US$100
Nvidia’s earnings are highly anticipated; Apple announces new product launch

The ASX is expected to open slightly higher on Tuesday after the Dow Jones index hit a record high. At 8am AEST, the SPI ASX200 futures contract was pointing up by 0.1%.

Overnight, the blue chips Dow Jones lifted by 0.16% to its all-time high, the S&P 500 slipped by 0.32%, and the tech-heavy Nasdaq tumbled by 0.85%.

Mega tech stocks led the declines to start Wall Street’s week, with the gauge of the “Magnificent Seven” stocks sliding by 1.2%.

Traders, meanwhile, remain focused on US policymakers, with Fed Bank of San Francisco president Mary Daly saying “the time is upon us” to cut interest rates, likely beginning with a 0.25% cut.

Her Richmond counterpart, Thomas Barkin, reckons inflation might still rise, but he also supports lowering rates because the job market is slowing down.

Elsewhere, oil prices climbed, with benchmark crude exceeding US$81 a barrel, as Libya’s government announced a halt to exports. The move adds to Middle East tensions following Israeli strikes on Hezbollah targets in southern Lebanon.

Iron ore stocks could be ones to watch today after iron ore prices surged over 4% to rise above US$100 per tonne.

Meanwhile, anticipations are high for Nvidia Corp’s earnings report on Wednesday, with analysts expecting a strong performance that might lead to an increase in profit guidance.

Options trading indicates a potential 9% price swing in Nvidia’s stock price in either direction following the report. Nvidia’s stock price fell more than 2% last night.

“Move over, Powell. It’s Jensen Huang’s turn to move markets,” said Anthony Saglimbene at Ameriprise.

Apple Inc rose slightly after announcing a product launch event at its headquarters on September 9, where it will reveal details about the iPhone 16 and other new devices.

And, Applied Materials Inc, a semiconductor supplier, dropped 3% after revealing that the US Department of Justice has requested details about its federal grant applications, adding to the ongoing government scrutiny of its operations.

Back home, earnings season continues with BHP, Coles and Woodside Energy among the companies set to release their results today.

What’s happening with iron ore recently?

Iron ore prices continue to rise as China’s large inventory of the steelmaking material declines, suggesting that the oversupply issue may be easing.

Iron ore futures in Singapore rose by 4.2% to US$100.20 a tonne yesterday, following a 4.5% rise last week.

According to Bloomberg data, Chinese port stockpiles have dropped for four consecutive weeks after peaking above 150 million tonnes in late July.

Despite this, iron ore is still down nearly 30% for the year.

The overall outlook for China’s steel industry also remains uncertain due to struggles in the property sector.

Traders are watching for a rebound in steel production, which typically slows in July and August.

In other markets …

Gold price rose by 0.3% to US$2,517 an ounce.

Oil prices rose by 3%, with Brent crude now trading at US$81.23 a barrel.

The benchmark 10-year US Treasury yield climbed by 1 basis point (bond prices lower) to 3.81%.

The Aussie dollar slipped by 0.3% to US67.74 cents.

Bitcoin meanwhile dropped by 2% in the past 24 hours to US$63,101, and Ethereum tumbled by 3% to US$2,688.

5 ASX small caps to watch today

QuickFee (ASX:QFE)
Quickfee saw a 37% rise in revenue to $20.3 million in FY24, driven by increased transaction volumes and higher yields. Australian revenue grew by 49% to $9.1 million, while US revenue was up 29% to $11.2 million. The company achieved positive EBITDA in Q4, with a full-year loss of $3.2 million, an improvement from $6.5 million the previous year. Quickfee is expanding its US presence, adding 103 new customers and forming new partnerships. The company expects FY25 EBITDA to range from $1.5 to $2.5 million, with stronger performance in the second half of the year.

Sayona Mining (ASX:SYA)
Sayona has significantly increased the resource at its Moblan Lithium Project to 93.1 million tonnes at 1.21% Li2O, up from 51.4 million tonnes. The higher-confidence Measured and Indicated resources now total 65.1 million tonnes at 1.25% Li2O, making up 70% of the total. Sayona plans 70,000 meters of drilling in 2024 to expand the resource further.

Turaco Gold (ASX:TCG)
Turaco has reported a maiden JORC resource of 2.52 million ounces of gold at the Afema Project in Côte d’Ivoire. This initial estimate includes three deposits but excludes others pending further drilling. With 60% of the resource classified as ‘Indicated,’ Turaco anticipates growth as drilling and exploration continue.

Anax Metals (ASX:ANX)
Anax Metals has confirmed high-grade copper-zinc intersections at the Evelyn deposit through preliminary XRF scanning. Diamond drilling has revealed visible sulphide mineralisation in all holes, with laboratory results expected in September. Regional exploration for similar VMS base metal deposits is underway, with auger sampling and geophysics planned before RC drilling of key targets.

West African Resources (ASX:WAF)
WAF reported a strong first half, with a net profit after tax of $92 million. The company produced 107,644 ounces of gold at an all-in sustaining cost of US$1,223 per ounce and sold 101,954 ounces at an average price of US$2,199 per ounce. WAF generated $116 million in cash flow from operations and recorded revenue of $344 million. At the end of the period, the company had $425 million in cash and $39 million in unsold gold bullion. WAF’s mineral resources total 12.8 million ounces, with ore reserves of 6.4 million ounces. The 2024 production guidance remains at 190,000 – 210,000 ounces of gold, with an all-in sustaining cost of under US$1,300 per ounce.