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US equity markets rallied, buoyed by a batch of strong earnings from the retail sector boosted market sentiment - Dow extended gains into a fifth consecutive session (its longest winning streak since 18 March), up +516-points or +1.61%. Boeing Co (up +4.65%) and Nike Inc (+4.38%) were among the leading performers. The broader S&P500 +1.99%, with Consumer Discretionary (up +4.78%) leading ten of the eleven primary sectors higher. All of Information Technology (+2.45%), Financials (+2.25%) and Communication Services (+2.078%) also climbed over >2%. Real Estate (down -0.10%) was the only primary sector to settle in the red. The Nasdaq rallied +2.68%. Apple Inc advanced +2.32% after a report said the iPhone maker plans to keep production of its flagship item flat this year due to industry challenges. Apple also said it would lift hourly pay for U.S. workers by +45% from 2018 to US$22 per hour to compete in a tight labour market and amid pushes by some employees to unionise. Nvidia Corp recovered from earlier losses to settle +5.16% higher The small capitalisation Russell 2000 rose +2.17%. In merger and acquisition (M&A) news, Broadcom Inc (up +3.58%) confirmed it had reached a deal to acquire cloud computing company VMWare Inc (+3.17% at US$124.36) in a cash and scrip deal worth ~US$61B following speculation earlier this week. Under the terms of the agreement, VMware shareholders will choose to receive either US$142.50 per share in cash or 0.2520 a common share of Broadcom for each VMware share.

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US equity markets advanced as technology stocks rebounded and as investors digested minutes of the Federal Reserve's policy meeting in early May - Dow rose +192-points or +0.6%, booking a fourth consecutive session of gains. The broader S&P500 gained +0.95%, with Consumer Discretionary (up +2.78%) and Energy (+1.96%) leading nine of the eleven primary sectors higher. Utilities (down -0.06%) and Health Care (-0.02%) were the only primary sectors to settle in the red. The Nasdaq rebounded +1.51% a day after logging its lowest close since 3 November, 2020. Twitter Inc gained over >6% in after hours trading (after a +3.91% rise in the regular session) after a filing with the Securities and Exchange Commission (SEC) showed Tesla Inc (+4.88%) Chief Executive Elon Musk increased the amount of cash he is committing to the acquisition of the social media company by US$6.25B, with the rest funded by debt financing. The filing also stated that Mr Musk continues to negotiate with Twitter shareholders, including cofounder Jack Dorsey, in an attempt to convince them to remain as investors instead of cashing out. The small capitalisation Russell 2000 rose +1.95%. Kohl’s Corp jumped +11.89% after Reuters reported that bidders continue to circle the retailer at lower prices than earlier this year, but still well above recent trading levels of the stock.

Michael Knox talks us through US stocks, Australian stocks, and what a full-employment economy will be like. Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAU

Technology stocks once again weighed on US equity markets - Dow added +48-points or +0.15%. McDonald’s Corp (up +2.74%), Verizon Communications Inc (+2.03%) and International Business Machines (IBM) Corp (+2.01%) all added more than 2%.The broader S&P500 lost -0.81%, with Communication Services (down -3.70%) and Consumer Discretionary (-2.58%) leading six of the eleven primary sectors lower. More defensive sectors outperformed overnight, with Utilities up +2.01%, Consumer Staples +1.66% and Real Estate +1.21%. The Nasdaq shed -2.28% to 11,264.45, logging its lowest close since 3 November, 2020 and extending its calendar year-to-date loss to -28%. The technology-centric index sits ~30% below its record 19 November, 2021 record closing high of 16,057.44. Snap Inc tumbled -43.08% after Chief Executive Officer (CEO) Evan Spiegel warned in a note to employees that emerged after the close of Monday’s (23 May) session that the company will miss its own targets for revenue and adjusted earnings in the current quarter, and will also slow hiring through the end of the year as it looks to manage expenses. Amazon.com Inc fell -3.21% to a fresh 52-week low (us$2,082.00), while Facebook Inc lost -7.62% and Google-parent Alphabet Inc -5.14%. Twitter Inc fell -5.55% to US$35.76, below the price at which Tesla Inc chief executive Elon Musk acquired his stake. According to a 13D filing with the Securities and Exchange Commission on 5 April, Mr Musk bought his 73.12M shares or 9.1% stake in the social media company at a weighted average price of US$36.157 per share. Twitter has fallen ~31.1% from its 25 April close of US$51.70, the day the company agreed to be acquired by Mr Musk for US$54.20 per share. The small capitalisation Russell 2000 lost -1.56%. Wendy's Co jumped 17% in after-hours trading after its largest shareholder, Trian Fund Management LP, said it is looking at potential transactions to acquire control of the fast-food restaurant chain. Trian Fund Management LP owns ~19.4% of the company, according to the filings.

US equity markets advanced - Dow rallied +618-points or +1.98%, logging its best single session gain since 4 May. JPMorgan Chase & Co gained +6.19% higher after the banking giant hosted an Investor Day and raised its net interest income outlook. In addition, JPMorgan forecast that it may hit its goal of a 17% return on tangible equity this year. Goldman Sachs Group Inc rose +3.2%. The broader S&P500 rose +1.86%, with Financials (up +3.23%) leading all eleven primary sectors higher. The Nasdaq gained +1.59%. It marked the best session for both the S&P500 and Nasdaq since 17 May. The small capitalisation Russell 2000 added +1.10%. VMware Inc soared +24.78% after The Wall Street Journal reported that Broadcom Inc (down -3.10%) was offering ~US$140 per share or ~US$60B in a cash-and-stock deal to acquire the enterprise cloud-computing software company. The report came on the heels of several other media reports over the weekend speculating a deal. Snap Inc slumped ~30% in after hours trading after Chief Executive Officer (CEO) Evan Spiegel warned in a note to employees that the company will miss its own targets for revenue and adjusted earnings in the current quarter. The social media company will also slow hiring through the end of the year as it looks to manage expenses, Mr Spiegel wrote. Part of the letter was filed with the Securities and Exchange Commission.

We discuss the key pre-election promises and what a Labor victory means for investors. Read more election coverage here: https://morgans.com.au/Blog/2022/May/Federal-Election-2022-Change-of-Government-first-impressions Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAU #equities #federalelection #asx

A rally in the final hour of trading left US equity markets little changed on Friday (20 May) - Dow inched +9-points or +0.03% higher at 31,261.90, erasing an earlier decline of as much as -617 points. A close below 29,439.72 would put the blue-chip gauge in official bear market territory. The broader S&P500 eked out a +0.01% gain to settle at 3,901.36 after trading in official bear market territory earlier in last Friday’s (20 May) session. The index traded as low as 3,810.32 (down ~2.3%) ~20.9% the S&P500’s 3 January record closing high. Consumer Discretionary (down -1.53%) and Industrials (-1.07%) both fell over >1% to lead five of the eleven primary sectors lower. The more defensive sectors of Health Care (up +1.26%) and Real Estate (+1.19%) were the leading primary sectors last Friday (20 May), gaining over >1%. The Nasdaq slipped -0.30%. Applied Materials Inc fell -3.86% The small capitalisation Russell 2000 slipped -0.17%.

US equity markets logged back-to-back declines - Dow down -237-points or -0.75% , unwinding an earlier rally of as much as +300-points. Cisco Systems Inc tumbled -13.73% after the technology bellwether reported third quarter revenue that fell short of consensus expectations and cut its full year forecasts after the close of the previous session. The broader S&P500 -0.58% to sit 18.6% below its record closing high set in early January and ~19% below its most recent intra-day peak. Consumer Staples (-1.98%) and Information Technology (-1.07%) both fell over >1% to lead eight of the eleven primary sectors lower. Materials sat atop the primary sector leaderboard with a +0.68% rise. The Nasdaq -0.26%. The small capitalisation Russell 2000 inched +0.08% higher. Harley-Davidson Inc tumbled 9.29% after the motorcycle maker said it would suspend all assembly and shipments for two weeks. The company said the suspension was for "an abundance of caution" following information provided by a third-party supplier regarding "a regulatory compliance matter relating to the supplier's component part." In merger and acquisition (M&A) news, Spirit Airlines Inc (%) said its board has unanimously determined that JetBlue Airways Corp.’s (%) US$30-per-share cash offer isn’t in the best interest of the airline and its shareholders, urging the latter to reject the tender launched by JetBlue earlier this week. Spirit had already reiterated earlier in May its support for the merger deal with Frontier Group Holdings Inc (%), that it had agreed before JetBlue made its offer.

Some soft earnings updates from major retailers raised concerns around companies’ ability pass on higher costs and dragged US equity markets sharply lower - Dow shed -1,165-points or -3.57% to 31,490.07, logging its lowest close since 4 March. The broader S&P500 dropped -4.04% to 3,923.68, marking its lowest settlement since 25 March and with just seven index constituents advancing. All eleven primary sectors closed in the red, with Consumer Discretionary (down -6.60%) and Consumer Staples (-6.38%) both falling over >6%. The S&P 500 and the Dow recorded their worst single session performance since 11 June, 2020. Tesla Inc fell -6.80% after the E&P ESG Index dropped the electric vehicle EV maker from its widely followed index with a focus on environmental, social and governance (ESG) practices. Tesla chief executive Elon Musk responded to the news on Twitter by noting that Exxon Mobil Corp (-1.59%) is rated in the top ten in the world for ESG by S&P 500 Dow Jones Indices, adding that “ESG is a scam. It has been weaponized by phony social justice warriors.” The Nasdaq tumbled -4.74%, settling with its worst single day decline since 5 May. The small capitalisation Russell 2000 shed -3.56%.

US GDP growth should slow but low US unemployment should bring rising living standards. Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAU

US equity markets extended their rebound following strong retail sales figures and comments from Federal Reserve Chair Jerome Powell sounding optimistic about a ‘soft’ economic landing - Dow gained +431-points or +1.34%. The broader S&P500 +2.02%, with all of Information Technology (up +2.91%), Materials (+2.86%), Financials (+2.69%), Consumer Discretionary (+2.68%) and Industrials (+2.28%) rallying over >2% to ten of the eleven primary sectors higher. Consumer Staples (down -1.15%) was the only primary sector to settle in the red. Citigroup Inc jumped +7.56% after a regulatory filing after the close of Monday’s (16 May) session recorded that Warren Buffett’s Berkshire Hathaway Inc took a nearly US$3B stake in the bank during the first quarter. The technology-centric Nasdaq gained +2.77%. The small capitalisation Russell 2000 jumped +3.19%.

US equity markets retreated after a choppy session to open the week, with growth stocks under pressure following some downbeat activity data in China - Dow inched +27-points or +0.08% higher . McDonald’s Corp lost -0.41% after announcing plans to exit Russia that would see the fast food giant book a charge of US$1.2B-US$1.4B. Consumer Discretionary (down -2.12%) led seven of the eleven primary sectors lower. The broader S&P500 eased 0.32%, with earlier gains evaporating in the final hour of trading. The Energy sector (up +2.62%) touched its highest intra-day level since 2014, with Occidental Petroleum Corp up +5.68% and Marathon Oil Corp +3.63%. Eli Lilly and Co rose +2.66% after its drug Mounjaro was approved by the Food and Drug Administration (FDA) to treat Type 2 diabetes. The drug is also being investigated for potential use in the treatment of obesity and overweight. United Airlines Holdings Inc rose over >2.5% in after hours trading after the carrier issued an update on its second-quarter outlook, noting in a securities filing that ”the demand environment has continued to improve, resulting in a higher unit revenue outlook for the second quarter 2022.” The Nasdaq lost -1.20% to 11,662.79 and sit ~27% below its record close of 16,057.44 touched on 19 November, 2021. Twitter Inc fell -8.18% after Bloomberg reported that Elon Musk said a deal to buy the social media company at a lower price than his previously agreed US$44B was "not out of the question." Tesla Inc lost -5.88%. The small capitalisation Russell 2000 lost -0.52%. In merger and acquisition (M&A) news, Spirit Airlines Inc soared 13.49% after JetBlue Airways Corp (down -6.06%) said it launched a "fully financed" tender offer to buy all Spirit outstanding shares for US$30 each, representing a 76.7% premium to last Friday's (13 May) closing price of $16.98.

US equity markets rallied to cap another volatile week that saw the S&P500 flirt with official bear market territory - Dow up +466-points or +1.47%, with Nike Inc (up +4.74%) and Salesforce Inc (+4.05%) among the leading index performers. American Express (+3.58%) and Boeing Co (+3.30%) both added more than >3% each. The broader S&P500 +2.39% (to 4,023.89) to reclaim the 4,000 level. Consumer Discretionary (up +4.10%), Information Technology (+3.44%) and Energy (+3.38%) all rallied over >3% to lead all eleven primary sectors higher. The technology-centric Nasdaq rebounded +3.82%, booking its biggest daily percentage gain since 4 November, 2020, according to Dow Jones Market Data. Meta Platforms Inc and Alphabet Inc gained +3.86% and +2.96%, respectively. Twitter Inc dropped -9.7% after Elon Musk tweeted that the deal to buy the social-media company was “temporarily on hold.” Mr Musk, the chief executive of electric vehicle maker Tesla Inc (up +%) said the hold on the deal is “pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.” In a subsequent tweet, Mr Musk said he was “Still committed to the acquisition.” The small capitalisation Russell 2000 jumped +3.06%.

US equity markets logged modest losses, recovering their worst levels of the session as Federal Reserve Chairman Jerome Powell was voted in by Congress to serve a second term of four years - Dow down -104-points or -0.33%, settling ~500-points off its session lows but extending losses into a sixth straight session. The broader S&P500 slipped -0.13% to 3,930.08, trading precariously close to official bear market territory at its session lows (3,858.87). Utilities (down -1.16%) and Information Technology (-1.14%) fell over >1% to lead five of the eleven primary sectors lower. More defensive sectors outperformed, with Healthcare up +0.92%, Consumer Discretionary +0.79% and Real Estate +0.74%. The index logged its lowest settlement since 25 March, 2021, and 18.1% below its record close from early January. A close below <3,837.25 would mark a 20% fall, meeting the widely used technical definition of a bear market. The S&P 500 entered correction territory - a fall of 10% from a recent peak - last month, its second such foray this year. Based on figures going back to 1929, the average bear market sees a peak to bear-market low decline of 33.5%, and a median fall of 33.2%, according to Dow Jones Market Data. On average, it has taken 80 trading days for the S&P 500 to hit its low after entering a bear market - and a median 52 trading days, the data showed. The Nasdaq inched +0.06% higher. Twitter Inc fell -2.19% after the company said two executives, general managers for revenue and consumer, are leaving the company ahead of Tesla Inc (%) Chief Executive Elon Musk’s takeover of the social-media giant. The small capitalisation Russell 2000 rebounded +1.24%.

US equity markets retreated as investors assessed the latest inflation report - Dow down -327-points or -1.02%, unwinding an earlier rally of ~423-points. Visa Inc (up +1.62%) and Merck & Co Inc (+1.57%). The index’s -6.5% decline over the past five trading session marks its biggest such decline since 15 June, 2020, according to Dow Jones Market Data. The broader S&P500 lost -1.65% to 3,935.18, touching an intra-session 52-week low (3,928.52) and is now down more than >18% from its 52-week high (and down over >17% calendar year-to-date). Consumer Discretionary (down -3.57%) and Information Technology (-3.30%) both declined over >3% to lead eight of the eleven primary sectors lower. The Energy (up +1.37%) sector helped to limit declines in the Dow and S&P500. The Nasdaq dropped -3.18%. Apple Inc shed -5.18% (dragging its market capitalisation down to ~US$2.37 trillion) and was usurped as the world’s largest company by capitalisation by oil giant Saudi Aramco (~US$2.43 trillion). Apple passed Saudi Aramco to become the world’s most valuable publicly traded company in 2020. Netflix Inc closed -6.4% lower in the wake of a New York Times report detailing plans by the streaming giant to launch an ad-supported pricing tier and crack down on password sharing. Meta Platforms Inc fell -4.51% and Microsoft Corp -3.32%. The small capitalisation Russell 2000 fell -2.48%. Coinbase Global Inc slumped -26.4% after the crypto exchange reported first-quarter revenue (US$1.17B) below expectations (US$1.48B) after the close of the previous session, impacted by lower crypto asset prices and market volatility.

Movements in the Australian cash rate have been following the “effective FED funds rate“. Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAU

US equity markets steadied ahead of the release of key inflation data tonight AEST and with technology stocks regaining some composure after steep declines - Dow eased -84-points or -0.26%, booking a fourth consecutive session of losses (to be down -5.67%, its largest four-day percentage decline since the stretch ending 29 October, 2020). The index traded in an ~850-point range overnight, climbing as much as 500-points and sliding as much as -350-points. International Business Machines (IBM) (down -3.95%), Home Depot Inc (-1.98%), 3M Co (-2.14%) and JPMorgan Chase & Co (-2.44%) were among notable drags on the 30-stock index. The broader S&P500 added +0.25% to 4,001.05 after sliding below <4,000 to its lowest level since March 2021 in the previous session. Information Technology rose +1.58% to lead four of the eleven primary sectors higher. Real Estate fell -2.28% to be the worst primary sector overnight. Pfizer Inc (up +1.75%) announced it has entered a definitive agreement to acquire Biohaven Pharmaceutical Holding Company Ltd (+68.39%) for US$11.6B in cash. Tesla Inc fell -%, with Reuters reporting that electric vehicle maker had suspended production at its Shanghai plant, this time due to supply problems. The Nasdaq gained +0.98%. The small capitalisation Russell 2000 dipped -0.02%.

Morgans Equity Strategist, Andrew Tang, explores the relationship between rising interest rates and equity market performance. Should investors fear the worse or is this a another buying opportunity? Check out more from Morgans: Visit the Morgans website: www.morgans.com.au Check out our blog: www.morgans.com.au/Blog On Facebook: www.facebook.com/MorgansAU On Instagram: www.instagram.com/Morgans.Australia On Twitter: twitter.com/MorgansAU

US equity markets extended their recent sell-off, with technology stocks under particular pressure once again - Dow dropped -654-points or -1.99%. Walt Disney Company fell -3% to be trading more than >3% below where it was trading 5-years ago. The broader S&P500 slumped -3.2%, sliding below <4,000 to its lowest level since March 2021. The Energy sector tumbled -8.3% to lead ten of the eleven primary sectors lower. Consumer Staples eked out a +0.05% rise to be the only primary sector to advance. Tesla Inc fell -% The Nasdaq tumbled -4.29%, with Meta Platforms Inc and Google parent Alphabet Inc down -3.71% and -2.23%. Amazon.com Inc fell -5.21% and joined a host of other names in the Nasdaq 100 that are now trading below pre-pandemic highs. The technology-centric index is down -25.71% year-to-date, comfortably its worst start to a year on record. The small capitalisation Russell 2000 shed -4.21%. Rivian Automotive Inc shed 20.88% ahead of its first quarter result on Wednesday night AEST (11 May) amid reports that, after the post-initial public offering (IPO) period has passed, Ford Motor Co (down -5.91%) and others will look to divest some of their holding in the electric vehicle maker.