Market Highlights: Wall Street hypes up for Big Tech earnings; Altman’s nuclear startup Oklo jumps 30pc

ASX set to rise as Wall Street gains momentum
Big Tech earnings reports later this week spark investor interest
Oil prices drop over 5pc amid Middle East tensions

The ASX is poised to lift when trading resumes on Tuesday following an uptick on Wall Street where investors are excited about upcoming earnings from major tech players. At 8am AEST, ASX futures were up about 0.4%.

Overnight, the Dow Jones climbed by 0.65%, while both the S&P 500 and Nasdaq nudged up by 0.3% each.

There are a heap of companies (about 170 in the S&P 500 index) set to report their earnings this week, including big names like Alphabet, Meta, and Apple. The main question for investors is whether Big Tech’s investments in AI are translating into profits.

US investors are also getting ready for a wave of economic data this week that might challenge hopes for a “soft landing”. These include the latest CPI numbers that the Federal Reserve watches closely, and the October jobs report.

Oil prices plunged over 5% overnight as Wall Street traders returned from the weekend, feeling relieved that Israel’s retaliatory strikes on Iran were confined to military targets, avoiding concerns over oil and nuclear facilities.

To stocks, investors seem to be pricing in a Trump election win on November 5th as Trump Media & Technology Group surged by 22%.

Ford shares fell 5% in after-hours trading after the automaker revised its guidance downward. The company now anticipates a full-year adjusted EBIT of US$10 billion, a drop from its previous forecast of US$10 to $12 billion.

Oklo, the nuclear power company backed and chaired by OpenAI’s Sam Altman, jumped nearly 30%, hitting almost three times its price just a month ago. The stock’s rise reflects growing investor interest in nuclear energy as a promising opportunity in the AI sector.

Meanwhile, Tesla‘s 25% stock surge after its earnings report has resulted in significant losses for short sellers. In the two days after the EV maker announced its third-quarter earnings last Wednesday, short sellers incurred losses of US$4.2 billion, according to data from S3 Partners.

Prediction for 2025

As we look towards 2025, the financial landscape is painted with a clear call to prioritise quality across all asset classes.

Franklin Templeton’s latest CIO pulse survey in the US offers a snapshot of insights from chief investment officers across various sectors.

The survey also reveals that US interest rates are expected to gradually decrease, potentially landing around 3.6% by the end of 2025. This forecast anticipates at least five rate cuts during this period.

Inflation, while still a concern, is projected to moderate; while the US labour market is expected to remain resilient.

In terms of market dynamics, the CIOs have spotlighted key sectors to watch: Technology, Healthcare, and Financials stand out as focal points for investment.

Looking specifically at the S&P 500 Index, there’s a positive outlook, with projections suggesting it could reach between 5,800 and 6,000 by the end of 2025.

However, it’s not all smooth sailing.

The survey highlights several risks that could impact these optimistic projections: Earnings that fall below expectations, the looming threat of recession, and geopolitical tensions.

In other markets …

All prices at 8.30am AEST.

Gold price fell by 0.2% to US$2,742.10 an ounce.

Oil prices tumbled by around 5%, with Brent crude now trading at US$72.02 a barrel.

The benchmark 10-year US Treasury yield climbed another 4 basis points (bond prices lower) to 4.28%.

The Aussie dollar was down by another 0.3% to US65.88 cents.

Bitcoin rose by a further 2.6% in the last 24 hours to US$69,844, while Ethereum climbed by 1.4% to US$2,538.

5 ASX small caps to watch today

FireFly Metals (ASX:FFM)
FireFly announced a 42% increase in the Mineral Resource Estimate at its Green Bay copper-gold project in Newfoundland, Canada. The total resource now stands at 59 million tonnes at 2% copper-equivalent, equating to 1.2 million tonnes of contained metal. This includes 1 million tonnes of copper, 550,000 ounces of gold, and 5.4 million ounces of silver.

The resource increase is attributed to a successful underground drilling campaign, which has confirmed high-grade mineralisation. Significant drilling results include 5.5 metres at 1,294 ppm Total Rare Earth Oxides. The project has low discovery costs of approximately $79 per tonne of copper equivalent.

Alvo Minerals (ASX:ALV)
Alvo has confirmed the presence of ionic adsorption clay-style mineralisation at its Ipora Rare Earth Elements (REE) Project in Brazil. Recent auger drilling has intercepted high-grade REEs, with a total of 125 holes drilled across three prospect areas, amounting to 1,008 metres.

Significant results from the Tapir Prospect include one drill hole that returned 5.5 metres at 1,294 ppm Total Rare Earth Oxides (TREO). Metallurgical testing has confirmed that the REEs are hosted as ionic clays, achieving extraction rates of up to 90%.

Centrex Metals (ASX:CXM)
Exploration company Centrex has received a non-binding Letter of Indication from Export Finance Australia for a loan facility of up to US$3.45 million. This funding aims to support Agriflex Pty Ltd, Centrex’s wholly owned subsidiary, in enhancing its export capabilities at the Ardmore Rock Phosphate Mine.

Approval for the loan will depend on completing due diligence, signing legal documents, and receiving approval from Export Finance Australia’s Board. Agriflex has successfully worked with Export Finance Australia before, having established and repaid a similar facility in the past.

Piedmont Lithium (ASX:PLL)
Piedmont reported that it shipped about 31,500 dry metric tons (dmt) of spodumene concentrate in Q3’24, with a target of 55,000 dmt for Q4. The North American Lithium (NAL) operation achieved record production of 52,141 dmt, a 5% increase from the previous quarter, with a mill utilisation rate of 91% and a lithium recovery rate of 67%.

In September, NAL recorded an incident-free month. The company plans to shift a cargo from Q4’24 to early Q1’25, expecting total shipments for 2024 to be around 116,000 dmt, slightly lower than previously guided.

Cettire (ASX:CTT)
Fashion house Cettire announced its trading performance for the quarter ending 30 September, showing strong growth. Sales revenue reached $155.0 million, up 22% from the pcp. Adjusted EBITDA improved to $2.0 million, up $1.6 million from the previous quarter.

Profitability continued to rise throughout the quarter, with an adjusted EBITDA margin over 5% in September, helped by reduced marketing costs relative to sales. Active customers grew by 43%, and revenue from repeat customers and average order value also improved year on year.