Global Factors influencing ASX stocks on 17 November 2023

On 17 November 2023, at AEDT 12:35 PM, the benchmark index S&P/ASX 200 is trading lower today, declining 3.00 points or 0.04%, and is currently trading at 7,055.40 levels. Out of 11 sectors, 6 are trading lower along with the S&P/ASX 200. The Energy and A-REIT sectors were the top 2 declining sectors, down by 1.49% and 0.83% in their index values.

Also read: Mid-Market: S&P/ASX 200 Trading Lower By 0.11%; Dragged Down By Energy Sector

On that note, let us look at a few global reasons impacting the stock market today:

1. Some of the key U.S. indices ended mixed in their previous session. NASDAQ Composite, NASDAQ-100, S&P 500 ended higher by 0.07%, 0.10%, 0.12% while Dow jones ended lower by 0.13% respectively.

2. On Thursday, the Dow recorded a decline, primarily influenced by Walmart's downturn and economic concerns amid weaker-than-anticipated data. Walmart, the largest U.S. retailer, raised annual guidance but projected adjusted EPS of US$6.40 to US$6.48, falling short of the estimated US$6.50 EPS. Despite beating quarterly expectations, Walmart's shares plummeted by over 8%. Additionally, Cisco Systems experienced a nearly 10% stock drop after cutting its full-year revenue and profit forecasts, signaling a slowdown in demand for its networking equipment.

3. Applied Materials disclosed fiscal fourth-quarter results on Thursday, surpassing analyst expectations. However, in after-hours trading, the stock faced downward pressure due to revelations that the semiconductor equipment maker is currently under investigation by the U.S. for potentially bypassing export restrictions to China. Applied Materials Inc experienced a decline of over 6% in after-hours trading.

4. Gap released third-quarter results on Thursday, surpassing Wall Street estimates as improved margins persisted amidst reduced promotional activity. However, the apparel retailer provided conservative guidance for the crucial holiday quarter. Despite this, Gap Inc experienced a 10% surge in after-hours trading. The company anticipates fourth-quarter net sales to remain flat to slightly negative compared to last year's US$4.2 billion. Looking ahead to 2023, Gap reiterated its guidance, projecting net sales to decline in the mid-single-digit range compared to the previous year's US$15.6 billion in net sales.

5. The Hang Seng and FTSE 100 is down by 1.36% and 1.01%.

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