Tesla shares surge 8pc on strong earnings. Picture via Getty Images
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The ASX is expected to drop when the market resumes on Thursday after another big sell-off on Wall Street.
At 8am AEST, the SPI ASX200 futures contract was pointing down by 0.2%.
Overnight, the tech-heavy Nasdaq led US stocks lower after plunging by 1.6%. The S&P 500 was also down by 0.6%, and the blue chips-focused Dow Jones fell by 0.96%.
Things looked better after the bell as Tesla posted adjusted earnings of 72 cents per share for the quarter, beating analysts’ predictions.
Tesla’s Q3 net income rose 17.3% year-over-year to US$2.17 billion, driven by a 6.4% increase in vehicle sales despite price cuts and low-interest financing. While revenue fell short of analyst expectations at US$25.18 billion, the company said it expects slight growth in vehicle deliveries for the full year as it prepares to launch new, more affordable models next year.
Tesla’s shares jumped by 8% post-market.
IBM fell 2.75% after reporting disappointing revenue for Q3, affected by a slowdown in consulting demand.
T-Mobile US, however, jumped 3% after exceeding analysts’ expectations with more new mobile phone and broadband subscribers.
Hilton Hotels fell 2% after cutting its profit outlook on slowdown in travel demand.
Coca-Cola slipped 2% as investors questioned how much longer the company can increase prices without losing customer demand for its beverages.
The best gainer overnight was Nasdaq-listed, US$17m-capped, Mobile-Health Network, which rose 70% after reporting a 77% increase in revenue for fiscal 2024, driven by a significant rise in telemedicine sales. The company is a telehealth provider in the Asia-Pacific region.
Meanwhile, US Treasuries continued their slide (bond yields higher) for a third day as investors adjusted their expectations for interest rate cuts from the Fed Reserve.
The US 10-year yield has now hit its highest level since July at 4.24%, with speculation that a potential Trump victory could further fuel inflation.
In commodities, iron ore stocks on the ASX could be under pressure today after iron ore futures slipped almost 2% to $US98.80 a tonne.
Research firm Morningstar sees blue-chip stocks on the ASX as overvalued, with the largest companies trading at nearly a 12% premium to their fair value estimates.
This includes the financial sector, where major banks, particularly Commonwealth Bank (ASX:CBA), are significantly overvalued – CBA is at 40% above fair value, says Morningstar.
While financials rallied recently, the overall market remains modestly overvalued, trading at a 6% premium compared to a 10-year average of 1.04.
On the flip side, small-cap stocks present more opportunities, said Morningstar, as about 40% of them are rated as 4- or 5-star investments by the firm, indicating they are undervalued.
Many smaller companies were sold off during the recession fears of 2022 and have yet to recover, making them attractive for investors.
If the Reserve Bank of Australia can manage economic risks effectively, small caps are positioned to perform well, the research firm concluded.
All prices at 8.30am AEST.
Gold price fell by 1% to US$2,715.15 an ounce.
Oil prices also fell by around 1%, with Brent crude now trading at US$75.22 a barrel.
The benchmark 10-year US Treasury yield climbed by 3 basis points (bond prices lower) to 4.24%.
The Aussie dollar tumbled by 0.70% to US66.37 cents.
Bitcoin slipped by a further 1.5% in the last 24 hours to US$66,479, while Ethereum plunged by 5% to US$2,502.
Iron ore, meanwhile, slipped by 1.8% to$US98.80 a tonne.
NGX (ASX:NGX)
NGX has achieved impressive results with its flowsheet optimisation testwork, producing graphite concentrate with over 98% total graphite content (TGC), ideal for lithium-ion battery anodes. The average graphite grade has increased from 94% to 98% without any loss in recovery, offering advantages in downstream processing, such as lower reagent consumption and environmental benefits. This upgraded concentrate has been sent to a Tier-1 customer for assessment, and will also be used in further testing as part of NGX’s qualification programme. The optimisation process effectively utilises Malingunde’s easily mined weathered saprolite ore to create a high-purity concentrate.
Strata Minerals (ASX:SMX)
Strata has confirmed the presence of uranium and rare earth elements at its Elliot Lake Uranium Project in Ontario, following its first field exploration programme. The reconnaissance work revealed targeted conglomerates and sandstones, with highlights including samples of 175.7 ppm U3O8 and 706.4 ppm TREO. A significant radiometric anomaly, approximately 2.2 km long, was also identified. The company is now reviewing the data to plan the next phase of exploration at the project.
Antipa Minerals (ASX:AZY)
Antipa has released an updated scoping study for its 100%-owned Minyari Dome Gold Project in WA, confirming its development potential. The study indicates a viable standalone mining and processing operation, with an initial schedule of 30.2 million tonnes at 1.5 g/t gold, yielding 1.5 million ounces of gold over a 10-year period. The project has a simple processing setup, expected to achieve a gold recovery of 90%, and forecasts an average all-in sustaining cost of $1,721 per ounce. With a total pre-production capital cost of $306 million, the project shows a strong pre-tax NPV of $834 million and an IRR of 52% at a gold price of US$2,100 per ounce. The company is now initiating a Phase 2 drilling programme.
Westar Resources (ASX:WSR)
Westar has reported impressive rock chip assays from its Mindoolah Mining Centre, with results of up to 40.2 g/t gold and 280 g/t silver. Additional high-grade findings include 31.7 g/t, 26.8 g/t, and 24.7 g/t of gold, which have helped define new exploration targets in previously un-assessed areas. The systematic field mapping has enhanced geological understanding, allowing the company to progress its drill programme approvals.
iTech Minerals (ASX:ITM)
iTech Minerals has reported significant gold, silver, and antimony results from rock chip sampling at its Reynolds Range Project, with assays including 11.4 g/t gold and 130 g/t silver. Ongoing field work has expanded mineralisation across the Sabre, Falchion, and Lander 1 prospects, covering a combined strike of over 2.6 km. Historical soil sampling has revealed a broader zone of antimony anomalies extending 6.3 km. With the critical controls on mineralisation established, the company plans to shift focus to geophysical surveying and drill target generation, including the high-priority Scimitar Cu-Au Prospect once approvals are in place.
At Stockhead we tell it like it is. While Strata Minerals and Antipa Minerals are Stockhead advertisers, they did not sponsor this article.
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