ASX 200 afternoon report: 29 August 2024

The ASX 200 trades 25 points (-0.43%) lower at 8045 at 2.15pm AEST.

ASX 200 takes a dip

The ASX 200 has weakened in today’s session, after earnings reports at home and in the US missed the mark. However, in a repeat of yesterday's price action, earlier heavier losses have been trimmed after dip buyers emerged around lunchtime.

Nvidia's earnings disappoint

Earlier this morning, AI juggernaut Nvidia’s much-hyped earnings report failed to meet investors' sky-high expectations. Even though Nvidia announced revenues of $30 billion in Q2 2024, beating the expected $28.7 billion, and an earnings per share (EPS) of $0.68 versus the anticipated $0.64, its shares plummeted 6.89% in after-hours trading to settle at $116.95.

The disappointment was primarily due to the chip maker's forward guidance, which fell short of what investors had hoped for. Nvidia projected Q3 revenues to be around $32.5 billion, notably below the $37.9 billion some of the more bullish on Wall Street had pencilled.

Additionally, Nvidia is still grappling with production challenges on its next-gen Blackwell chip. Despite these hurdles, they anticipate the Blackwell chip to generate “several billion dollars” in revenue in Q4.

Domestic earnings report mixed results

• Webjet: shares tumbled 7.3% to $7.666 after a mixed FY 2025 update. A 10% decline in total transaction value (TTV) for Webjet OTA contrasted with a 25% rise for WebBeds. The company noted that the Paris Olympics and the Euro 2024 had weighed on travel demand as customers elected to stay home and watch the spectacles from the comfort of their lounge rooms

• Mineral Resources: plunged over 12% to $38.82 before paring losses to be trading 6.90% lower at $41.09 after reporting a 79% slump in net profit to $158 million, leading to no final dividend being declared

• Cettire: fell 17.86% to $1.09 after it reported revenue up 81% but net profit down 34%, amid rising customer acquisition costs

• Wesfarmers: slipped 4.05% to $74.07, with investors weighing its tepid revenue and profit increases against a 30% plus gain for the share price this year.

ASX 200 stocks

Financial sector

Away from the earnings action, the big banks have gained as the ASX 200 financial sector (trading at 8170) edges closer to its 8176-record high after an 8% dip earlier this month.

• NAB added 0.74% to $37.99
• Westpac gained 0.50% to $30.98
• Commonwealth Bank of Australia (CBA) added 0.44% to $139.18
• ANZ edged 0.33% higher to $30.02

ASX 200 technical analysis

The ASX 200's rebound from the 7600/7500 support level, which includes the 200-day moving average, has reinforced its importance as the downside level to watch going forward. While the market's current focus is on breaking the all-time high of 8148, a retest of the 7600/7500 level before year-end remains a possibility.

ASX 200 daily chart

• _{Source: TradingView. The figures stated are as of 29 August 2024. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}