Market Update - 28 July 2021

Wall St closed lower after selling was seen across the major indexes. The market was down for its first day after posting 5-straight record highs as concerns about the strength of the economic recovery, the spreading of the delta-variant and heavy selling in Chinese stocks played on investor's minds, spilling over into technology names and even semi-conductors stocks as well.

Across the S&P 500, investors moved into defensive mode with Utilities adding 1.7 per cent followed by Real Estate, up 0.8 per cent while Consumer Discretionary, Communication Services and Technology all fell over 1 per cent.

American Airlines reported that they're struggling to keep up with demand on shortage in jet fuel. The fuel delays is due to the lack of truck drivers. Shares fell 2.9 per cent.

Alphabet, Google's parent company saw their YouTube revenue grow 83 per cent year-on-year, posting over US$7 billion. Comparing to Netflix, their quarterly revenue was US$7.34 billion so one section of Google is making close to the equivalent of Netflix's total quarterly earnings. Shares popped over 3 per cent after market close.

Yesterday, the Australian sharemarket closed 0.5 per cent at 7,431 posting another record-breaking day as investors bought into mining stocks ahead of earnings results. Materials added 1.6 per cent as mining giants played in record high territory. Energy shares was next best, up 1.3 per cent on higher oil prices while Technology lagged 1 per cent.

AMP group economists expect the headline consumer price index to rise by 0.8 per cent in the quarter reflecting a surge in petrol and higher electricity prices as well as a pick up in dwelling purchase prices and rents.

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