Jarden Brief: Caesars forecloses, stocks plunge, but pharmaceuticals take big hit

Keep you informed of the latest market movements, in association with the investment company Jarden

International

WE

All major US indices were in the red at the time of writing. The sp
500 fell 0.6%, the Nasdaq fell 1.3%, while the Dow Jones Industrial Average fell 0.1%.

Sector performance was mixed, with Health Care and Energy leading the way, rising 0.7% and 0.5% respectively. Consumer discretionary and financials were the main laggards, falling 2.1% and 1.5% respectively.

Year-to-date, energy has led all other sectors, with the S&P 500 energy sector index rising 38.5%.

The second best performer came from utilities, up just 1.7% since the start of the year. In contrast, the communication services sector has been the most underperforming this year, down more than 36.0% year-to-date.

Pharmaceutical company Eli Lilly topped the S&P 500 with a 4.4% rise in its share price. The company received upgrades from brokers overnight.

Merck & Co was close behind, up 3.7% at the time of writing. This follows the company’s victory in a high-stakes patent case against pharmaceutical company Viatris.

Homebuilder Lennar Corp rounded out the top three performers, rising 2.6% to US$77.88 per share.

Caesars Entertainment experienced the largest decline, down 10.0%. Similarly, Factset Research Systems also underperformed, down 7.5%. Factset reported earnings per share of US$3.13 while market estimates were US$3.20.

Despite the outperformance of energy companies, energy technology company Enphase Energy was in the red, down 7.2% at the time of writing.

Rest of the world

Major Asian markets all suffered losses. The Shanghai Composite, Nikkei and Hang Seng fell 0.3, 0.6 and 1.6% respectively.

Following global trends, all European markets were in the red. The CAC was the hardest hit, down 1.9%. Next come the DAX and the FTSE, down 1.8 and 1.1% respectively.

For the second consecutive month, the Bank of England raised its key rate by 50 basis points to 2.25%.

Goods

WTI crude oil gained 0.4% to US$83.27 a barrel. Natural gas, on the other hand, fell 7.8% to US$7.17 per cubic foot, the lowest price in more than two months for this commodity.

Gold climbed US$2.40 to US$1,678.2 an ounce.

Bitcoin and Ethereum continued their downward trend, dropping 0.2% and 3.1% respectively. Even though Bitcoin has fallen over 70% from its all-time high, the cryptocurrency still has a market capitalization of around US$367.0 billion.

When compared to global companies, cryptocurrency would rank in the top fifteen companies by market capitalization, ahead of companies such as Walmart, JPMorgan Chase, and NVIDIA.

The 10-year US Treasury rate continued to rise with a further rise of 19 basis points. This brings the rate to 3.7%.

New Zealand

The NZX 50 rose 0.2% to close at 11,518.32 points yesterday.

Donor management company Pushpay Holdings was the best performer, up 2.7%.
Fisher & Paykel Healthcare rose 1.5%.

Dairy company a2 also posted a gain. The dairy company closed up 1.5 percent.
Among the underperformers, courier company Freightways was down 5.1% over the game.

Pacific Edge fell 4.0%. The cancer diagnostics company has released an update on its contract with Te Whatu Ora (Health New Zealand) – Southern for its Cxbladder genomic biomarker tests, which were unsigned at the time of the announcement.

Pacific Edge clarified that a business case for the deal is currently underway, with the deal then entering an approval cycle process.

Transportation technology firm Eroad fell 3.6%.

Consumer confidence data from Westpac McDermott Miller showed an increase of 8.9 points in September to 87.6 points. This result, while historically weak, represents an improvement over the poor markers posted earlier in 2022.

REINZ data indicates a further slowdown in rural real estate in New Zealand. Only 204 farms were sold in the three months to August, down 38% from the previous corresponding period. This was supported by a reduction in the price index for all farms of 8.3%.

Australia

The Australian market was closed on Thursday with a public holiday in recognition of the death of Queen Elizabeth II.

• For more information on the latest market movements, contact Jarden.

All market prices and announcements are from Refinitiv, NZX and ASX.

The Garden Brief is provided for general information purposes only. It reflects the opinions and research available at the time of publication, using external sources, systems and other data and information which we believe to be accurate, complete and reliable at the time of preparation. We make no representations or warranties as to the accuracy, correctness and completeness of this information, and will not be liable for any errors or omissions. The Jarden dossier should not be relied upon as a basis for making an investment decision. Please seek specific investment advice before making any investment decision. Jarden Securities Limited is an NZX company. A Financial Advice Provider Disclosure Statement is available free of charge at https://www.jarden.co.nz/our-services/wealth-management/financial-advice-provider-disclosure-statement/.
Full disclaimer available at: https://www.jarden.co.nz/wealth-sales-and-research-disclaimer