ASX set to fall despite a modest rally on Wall Street
\nMicrochip stocks fell as Microsoft unveiled its new custom AI chip
\nJanus Henderson says investing in dividend stocks won\u2019t always be a sure thing<\/p>\n
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Aussie shares are poised to open lower on Thursday despite Wall Street extending its gains overnight. At 8am AEDT, the ASX 200 index futures was pointing down by -0.2%.<\/p>\n
In New York, the S&P 500 rose by +0.18%, the blue chips Dow Jones index was up by +0.47%, and the tech-heavy Nasdaq climbed by +0.07%.<\/p>\n
US traders combed through a bunch of economics data including retail sales<\/strong>, which beat estimates for October but still couldn\u2019t avoid a drop from September.<\/p>\n Treasuries<\/strong> fell (bond yields higher by 10bp) as traders took profits on yesterday\u2019s big gains.<\/p>\n To stocks, big box retailer Target Corp<\/strong> surged 18% after its Q3 earnings smashed estimates.<\/p>\n Semiconductor stocks like Nvidia<\/strong>, AMD<\/strong> and TSM<\/strong> all fell after Microsoft<\/strong> launched its first custom AI powered chip, the Maia 100<\/strong>. Microsoft shares closed flat, but the company is now on par with its peers Google and Amazon which have also developed their own custom chips for their cloud platforms.<\/p>\n Media stock Sirius XM<\/strong> jumped as much as 12% after Warren Buffett\u2019s Berkshire Hathaway<\/strong> said it has purchased a new stake in the company.<\/p>\n Also trending higher were Chinese stocks Alibaba<\/strong> and JD.com<\/strong>, after JD reported a Q3 earnings beat.<\/p>\n Meanwhile China\u2019s President Xi has met with Joe Biden last night, and said,\u201d For two large countries like China and the United States, turning back on each other is not an option.\u201d<\/p>\n \u00a0<\/p>\n The latest Global\u00a0Dividend\u00a0Index by Janus Henderson<\/strong> Investors<\/strong> reveals a 0.9% dip in global\u00a0dividends, or a decline of around US$421.9 billion in Q3 2023.<\/p>\n Australia\u2019s mining sector, whose\u00a0dividends\u00a0vary with the commodity cycle, contributed heavily to the reduction, although, beneath the surface, there is a growth story.<\/p>\n BHP,<\/strong> the world\u2019s largest\u00a0dividend\u00a0payer in 2021 and 2022, saw its final 2023\u00a0dividend\u00a0cut by more than half year-on-year. Cuts at Fortescue Metals<\/strong> and Rio Tinto<\/strong> also weighed on the global reduction in\u00a0dividends\u00a0over the quarter.<\/p>\n One-fifth of Australian companies in the index made a cut year-on-year, leading to a one-sixth decline in Australian dividends (-17.5%).<\/p>\n Australian banks, meanwhile, each increased their\u00a0dividends\u00a0by around 14% year-on-year, and a strong contribution from the oil sector (+19% YoY) also eased some of the decline.<\/p>\n Matt Gaden, head of Australia at Janus Henderson Investors,<\/strong> said the tougher market conditions for Australian and global miners masked an otherwise positive third quarter with almost every other sector seeing\u00a0dividend\u00a0growth.<\/p>\n \u201cInvestors often seek refuge in high\u00a0dividend-yielding companies, or sectors such as mining and banks, but it\u2019s not always a sure thing,\u201d Gaden said.<\/p>\n \u201cThe findings of our\u00a0dividend\u00a0index reinforce why global diversification is critical for Australian investors that are often dependent on\u00a0dividends\u00a0for income generation.<\/p>\n \u201cThis has become ever more important as the cost of food, fuel, housing and energy soars.<\/p>\n \u201cInvestors must grasp the nuances of\u00a0dividends, their advantages and the potential risks tied to high\u00a0dividend-paying shares for a successful investment strategy,\u201d he concluded.<\/p>\n \u00a0<\/p>\n Gold price<\/strong> fell -0.2% to US$1,959.55 an ounce.<\/p>\n The benchmark US 10-year treasury yield fell 10bp to 4.53%.<\/p>\n Oil prices<\/strong> were down -2%, with Brent trading at US$80.97 a barrel.<\/p>\n Iron ore futures<\/strong> was up 0.4% to US$129.25 a tonne.<\/p>\n The Aussie dollar<\/strong> was flat at US65.08c.<\/p>\n Meanwhile, Bitcoin<\/strong> roared back by +6.5%% in the last 24 hours to US$37,642.<\/p>\n \u201cBitcoin is going mainstream, and the bear is behind us,\u201d Charlie Morris, founder of investment advisory firm ByteTree, said.<\/p>\n \u201cThe good times are here.\u201d<\/p>\n \u00a0<\/p>\n Xanadu Mines (ASX:XAM)<\/a><\/strong> Tyranna Resources (ASX:TYX)<\/a><\/strong> Noxopharm (ASX:NOX)<\/a><\/strong> INOVIQ (ASX:IIQ)<\/a><\/strong> Summit Minerals (ASX:SUM)<\/a><\/strong> \u00a0<\/p>\n At Stockhead we tell it like it is. While Summit Minerals is a Stockhead advertiser, it did not sponsor this article.<\/em><\/p>\n <\/span><\/p>\n The post Market Highlights: Microsoft\u2019s new AI chip, why divvy stocks aren\u2019t a sure thing, and 5 small caps to watch<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"Why dividend stocks are \u2018not always a sure thing\u2019<\/h2>\n
In other markets \u2026<\/h2>\n
5 ASX small caps to watch today<\/h2>\n
\nXanadu provided an update on its\u00a0 exploration drilling currently underway at the Kharmagtai Project in Mongolia. New discovery drilling has intersected mineralisation across multiple largely unexplored porphyry clusters, including high-density stockwork, breccia and gold only mineralisation. Best results include: 1080m at 0.21% eCu from 491m. Multiple new broad zones of gold-rich tourmaline breccia mineralisation meanwhile were delivered over a 2km strike.<\/p>\n
\nDrilling at Muvero continues, with numerous intersections of spodumene-bearing pegmatite. Drill-holes MRC01 to MRC10 were completed, for a total of 1,650m to date. The amount of drilling at Muvero will be increased from 6,000m to 8,000m or more and continue through to 2024, in addition to drilling at other prospects.<\/p>\n
\nNoxopharm has received a $6.052 million rebate under the Australian Government\u2019s Research and Development Tax Incentive scheme, for expenditure during FY 2023. Noxopharm CEO Dr Gisela Mautner said: \u201cWe are rapidly advancing our Chroma and Sofra pipeline, and have made significant progress on both fronts over the past 12 months as we continue to transform the company. We welcome the Federal R&D rebate as it helps companies like us grow our assets, develop intellectual property, and contribute to Australia\u2019s economy.\u201d<\/p>\n
\nINOVIQ presented at the Bell Porter Healthcare Conference this morning. The biotech reiterated its deep pipeline for detection of common and deadly cancers. The company said it\u2019s focused on the next-generation diagnostic and exosome solutions, and has cash of $6.3m as at 30 Sep to fund operations and pipeline development.<\/p>\n
\nGeochemical soil survey will commence next week at the Phillips River Lithium Project in WA. The program aims to define potential pegmatite-hosted lithium mineralisation. The survey will cover several intrusive bodies interpreted from the company\u2019s high-resolution magnetic survey. The initial soil sampling programs will enable high-priority targets to be identified and enable a potential drilling campaign in 2024.<\/p>\n