• The ASX will slip lower on Thursday after losses in New York
  • Tech and retail stocks paced Wall St lower
  • Aussie unemployment rate data scheduled for release today

The ASX is set to open marginally lower on Thursday after losses in New York. At 8.30am AEDT, the ASX 200 Dec futures contract was pointing down by 5 points.

Overnight, energy and tech stocks paced Wall Street lower as all three major indices fell – the S&P 500 by 0.74%, the Dow Jones by 0.02% and Nasdaq by 1.47%.

Disappointing earnings from Micron dragged the semiconductor space down, and Target shares got punished 13% after the retailer cut its Q4 outlook.

This is despite US retail sales increasing more than expected in October, by 1.3%, as households stepped up purchases of goods.

“The impressive retail sales data release prompted fears that the economy might be a little bit too resilient and prone to more Fed rate hikes,” said OANDA analyst Edward Moya.

San Francisco Fed Reserve President Mary Daly meanwhile noted that 4.75% to 5.25% is a reasonable range for the Fed to raise interest rates, higher than what futures traders are pricing in.

St Louis Fed governor Chris Waller was more dovish, saying: “The data of the past few weeks have made me more comfortable considering stepping down to a 50-basis-point hike.”

The benchmark 10-year US Treasury yield fell 9bp (price higher) on the speeches, while Brent crude temporarily fell below US$92 before rebounding to US$92.45 a barrel.

“Oil pared losses after the White House noted that ultimately, Russia is responsible for the tragic incident in Poland,” said Moya.

“Russia might not have sent the missile that killed two in Poland, but the rest of the world is on high alert that the war in Ukraine could easily escalate into a massive conflict with NATO.”

To cryptos, where the FTX contagion remains the primary focus.

Bitcoin and Etherum fell 1.5% and 3.5% respectively in the last 24 hours as contagion fears remain elevated.

Crypto investment bank Genesis Global Trading is the latest crypto firm to announce restrictions on redemptions. Genesis’ decision follows a reportedly potential bankruptcy filing for crypto lender BlockFi.

Looking ahead to today’s session, the crucial Australian unemployment data will be released by the ABS.

5 ASX small caps to watch today

Adore Beauty (ASX:ABY)
Adore has appointed a highly experienced retail executive Tamalin Morton to lead the business as CEO, effective 9 January 2023. Morton brings more than two decades’ retail leadership including CEO, general manager and chief operating officer roles at Best Friends Pets and My Pet Warehouse, Australian Pharmaceutical Industries’ Priceline (API), Kathmandu (ASX:KMD), and Spotlight Retail Group. She replaces departing CEO Tennealle O’Shannessy.

archTIS (ASX:AR9)
archTIS says it has resized its business and reduced its overall cost structure, with operating expenditure expected to be reduced by $2.25 million per annum from December onward. The company also confirmed its previously communicated guidance of 60% year-over-year revenue growth outlook and $9.5m of cash receipts for FY23.

Lithium Power (ASX:LPI)
Lithium carbonate with a 99.92% purity was produced from the original, concentrated brine from LPI’s test evaporations ponds at Maricunga. This significantly exceeds the industry standard specifications for battery grade lithium carbonate of 99.5%. Samples will now be sent to potential lithium buyers for analysis as part of LPI’s financing plans for mine construction at Maricunga.

Cettire (ASX:CTT)
Key metrics (unaudited) and milestones in October include sales revenue growth exceeding 80% versus pcp. The company also reported adjusted EBITDA of at least $3 million on a margin of 20%. Net cash balance was over $40 million at 31 October.

Nuheara (ASX:NUH)
Nuheara has been certified to the international standard for medical device quality ISO 13485:2016. This certification is in addition to the ISO 9001:2015 the company achieved for non-regulated devices. It’s another major milestone for Nuheara on the path of rolling out its US market medical device growth strategy.