• The ASX is set to open higher
  • Apple delivers supply warning
  • Medibank Private offers post-hack share price lessons

Morning all. Your usual AM host Eddy Sunarto is out breaking a major case, so the early worm on local shares – which are are set to open higher on Tuesday – is your less truly me.

The SPI 200 Futures contract was ahead 0.35% at 9am Batemans Bay time.

Batemans Bay time. Via Me

That’s after Wall St, overnight, rallied as traders pumped while they could ahead of some already Trump-flavoured midterm elections and coin-toss inflation data to be unveiled later in the week.

The Dow Jones Industrial Average showed opportunistic mettle, ending 1.3% ahead.

The broader S&P 500 gained 1% and the tech-fat Nasdaq Composite found 0.9%, largely ignoring an official supply warning from Apple, which probably read about key supplier Foxconn’s latest China zero-production policy.

As we speak, on the tech index, cacographic ride-sharing company Lyft is crashing in after hours trade after a mixed earnings result.

Lyft delivered adjusted EPS (earnings per share) of 10 cents, a beat on analyst expectations circa 7 cents, but on weaker revenue of $1.05 billion vs $1.06 billion (expected), which still seems pretty good to me.

Since no good deed goes unpunished in the States these days, the share price has driven itself off a cliff, down 14%.

Here’s what I’ve got at 9.05am on the Clyde River:

The Aussie dollar is slightly better at $0.648 USD. In Singers (SGX) the Iron Ore December Spot Price is down a smidge at US$86.20.
West Texas has lost about 1.2% at US$91.80.

In London gold’s lost over five bucks to US$1,675.90, copper (CME) is down as well but looking good at US$3.5990 and boring Bitcoin (BTC)
has lost almost 1.8% but is still comfy about US$20k.

We’re still looking at a busy week of US corporate earnings and with a likely swing to Republican control of one or both chambers of Congress, Wall Street is on the cusp of what is historically a season of plenty, remembering the Damoclean shadow of inflation data which hangs over us all on Wednesday.

5 ASX small caps to watch today


Talon Energy (ASX:TPD) and TMK Energy (ASX:TMK)

The JV partners are due to potentially exit a trading halt in style with the numbers to deliver a resource upgrade for the Gurvantes XXXV project.

Resource Mining Corporation (ASX:RMI)

We’re pining for the fjords this morning as RMI preps an announcement in relation to Finland nickel and lithium projects currently under exclusive option.

Alicanto Minerals (ASX:AQI)

We’re staying Nordic today – after drilling at Alicanto’s Greater Falun Project in Sweden has intersected visual zinc-copper-silver-lead mineralisation in the first diamond drill hole at the Skyttgruvan-Naverberg target.

And while visual intersections of sulphides should never be considered a proxy or a substitute for lab analysis, AQI says the hole intersected ‘multiple zones of massive sulphide and semi-massive to disseminated sulphides over a 43m interval within the prospective limestone unit associated with an extensive skarn alteration.’

If you’re keen to roll the dice, AQI has assay results penciled in before the end of the quarter.

Medibank Private (ASX:MPL)

I’m interested in the fate of MPL and how the market rewards a lapse in cybersecurity followed by a determination to not pay any ransom demand for the data theft last month.

“Based on the extensive advice we have received from cybercrime experts we believe there is only a limited chance paying a ransom would ensure the return of our customers’ data and prevent it from being published,” CEO David Koczkar said yesterday.

“In fact, paying could have the opposite effect and encourage the criminal to directly extort our customers, and there is a strong chance that paying puts more people in harm’s way by making Australia a bigger target.

“It is for these reasons we have decided we will not pay a ransom for this event.”

Nice sentiments, but investors don’t usually buy heavily on ‘the right thing to do’ especially after said company bled names, dates of birth, addresses, phone numbers and email addresses for around 9.7 million current and former customers. 

The hacker also got hold of health claims data for around 160,000 Medibank customers, around 300,000 ahm customers and around 20,000 international customers.

So. Good luck there.