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

The ASX is expected to rise as Wall Street gains, driven by upcoming tech earnings, and Altman’s nuclear startup soars.

Wall Street hypes up for Big Tech earnings. Picture via Getty Images

• 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 per cent.

Overnight, the Dow Jones climbed by 0.65 per cent, while both the S&P 500 and Nasdaq nudged up by 0.3 per cent 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 such as 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 per cent 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 5 as Trump Media & Technology Group surged by 22 per cent.

Ford shares fell 5per cent 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 $US10 to $US12 billion.

Oklo, the nuclear power company backed and chaired by OpenAI’s Sam Altman, jumped nearly 30 per cent, 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 per cent 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  $US4.2 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.

Source: Franklin Templeton

The survey also reveals that US interest rates are expected to gradually decrease, potentially landing around 3.6 per cent 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 5800 and 6000 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 per cent to $US2,742.10 an ounce.

Oil prices tumbled by around 5 per cent, with Brent crude now trading at $US72.02 a barrel.

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

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

Bitcoin rose by a further 2.6 per cent in the past 24 hours to  $US69,844, while Ethereum climbed by 1.4 per cent to $US2538.

5 ASX small caps to watch today

FireFly Metals (ASX:FFM)
FireFly announced a 42 per cent 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 per cent 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 5.5m 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 1008m.

Significant results from the Tapir Prospect include one drill hole that returned 5.5m at 1294 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 per cent.

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 $US3.45 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 per cent increase from the previous quarter, with a mill utilisation rate of 91 per cent and a lithium recovery rate of 67 per cent.

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 September 30, showing strong growth. Sales revenue reached $155 million, up 22 per cent from the pcp. Adjusted EBITDA improved to $2 million, up $1.6 million from the previous quarter.

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

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