- The market showed positive movement Dow +34bps, S&P +94bps) with the tech sector outperforming.
- Rising yields didn’t significantly impact the market.
- Defensive sectors like real estate, staples, and utilities received funding.
Global:
- Alibaba faced challenges in domestic eCommerce and cloud business.
- Ross Stores was impacted by higher inflation, affecting consumer spending.
- Walmart (+10bps) reported solid numbers but noted a sequential slowdown.
- Farfetch (+18% after hours) saw improved performance in China, while Burberry faced a slowdown in the US.
- Grab Holdings (-15%) showed disappointing growth in food delivery and ride-hailing.
- Hang Seng underperformed due to Alibaba’s results
Local:
- Netcare’s operational performance slowed
- Investec had decent results
- Sanlam’s outlook was cautious, Dis-Chem’s earnings in line but with potential downside risks
- South African businesses are struggling with declining stock prices and rising leverage
