ASX to gain after Wall Street hits another record; $A rises

6 hours ago 6

By ALEX VEIGA

July 11, 2025 — 7.09am

The Australian sharemarket is set to open higher on Friday, after Wall Street added to its recent milestones and closed an all-time high as investors shrugged off this week’s tariff threats from U.S. president Donald Trump.

The S&P 500 rose 0.3 per cent, inching past the record it set last week after a better-than-expected June jobs report. Sentiment received a boost from Delta Air Lines kicking off U.S. earnings season with a solid outlook for the rest of 2025, spurring an airline stock rally.

The ASX 200 is expected to climb again on Friday, building on Thursday’s gains.

The Nasdaq composite edged up 0.1 per cent, enough of a gain to notch a new high for the second day in a row. The Dow Jones Industrial Average finished 0.4 per cent higher.

Locally, futures are pointing to a 0.3 per cent rise in the S&P/ASX 200 at the open, after a 0.6 per cent rise on Thursday. The Australian dollar has risen to US65.90¢, up from US65.56¢ late yesterday.

Delta surged 12 per cent, bringing other airlines along with it, after beating Wall Street’s revenue and profit targets. The Atlanta airline also gave a more optimistic view for the remaining summer travel season than it had just a couple of months ago.

The airline and other major U.S. carriers had pulled or slashed their forecasts in the spring, citing macroeconomic uncertainty amid President Donald Trump’s tariff rollouts, which have consumers feeling uneasy about spending on travel.

“Companies are becoming more confident in the range of outcomes for tariffs,” said Michael Antonelli, market strategist at Baird. “Companies are starting to understand what the playing field looks like a little bit better, even though we continue to have these kind of tariff announcements that get bounced back and forth.”

Delta’s encouraging report boosted the entire airline sector. United jumped 14.3 per cent, American climbed 12.7 per cent, JetBlue gained 7.8 per cent and Southwest finished 8.1 per cent higher.

The market has been steadying following a downbeat start to the week as the Trump administration renewed its push to use threats of higher tariffs on goods imported into the U.S. in hopes of securing new trade agreements with countries around the globe.

Wednesday had been initially set as a deadline by Trump for countries to make deals with the U.S. or face heavy increases in tariffs. But with just two trade deals announced since April, one with the United Kingdom and one with Vietnam, the window for negotiations has now been extended to August 1. That’s given Wall Street a breather just in time for the start of corporate earnings season.

Wall Street analysts predict that companies in the S&P 500 will deliver 5 per cent growth in second-quarter earnings, according to FactSet. That would mark the lowest rate since the fourth quarter of 2023.

Conagra Brands fell 4.4 per cent Thursday after the maker of Slim Jim, Swiss Miss and other food products reported earnings and revenue that fell short of Wall Street’s estimates. The company also lowered its earnings outlook, saying it expects continued cost increases due to tariffs.

Helen of Troy, the company behind Hydro Flask water bottles and OXO kitchen tools, sank 22.7 per cent after its latest quarterly results came in below Wall Street’s forecasts. The company said it would not be providing a fiscal year 2026 outlook, citing uncertainty over tariff policy and the economy.

Earnings season shifts into high gear next week with JPMorgan Chase, Wells Fargo and Citigroup among the big banks due to report their results on Tuesday.

Beyond airlines, most of the sectors in the S&P 500 notched gains Thursday, led by banks and consumer-focused companies. JPMorgan and McDonald’s each rose 1.8 per cent.

Technology and communication services stocks were the only laggards. Autodesk fell 6.9 per cent and Netflix ended 2.9 per cent lower.

Shares of WK Kellogg vaulted 30.6 per cent after Italian candy maker Ferrero agreed to acquire the cereal company in a deal valued at roughly $US3.1 billion ($4.7 billion). The transaction includes the manufacturing, marketing and distribution of WK Kellogg Co.’s portfolio of breakfast cereals across the United States, Canada and the Caribbean.

Shares in mining company Freeport-McMoRan rose 3.6 per cent after Trump said a 50 per cent tariff on copper imports would take effect on August 1. The price of copper rose 1.9 per cent to $US5.59 per pound.

All told, the S&P 500 rose 17.20 points to 6,280.46. The Dow added 192.34 points to 44,650.64. The Nasdaq gained 19.33 points to 20,630.66.

In economic news, the Labor Department reported Thursday that applications for unemployment benefits, a proxy for layoffs, fell last week, remaining in the historically healthy range they’ve been in the past couple of years.

Bond yields mostly rose, although the yield on the 10-year Treasury held steady at 4.34%.

European stock indexes closed mixed Thursday following an uneven finish in Asian markets.

Tokyo’s Nikkei 225 fell 0.4 per cent, weighed down by selling of exporters’ shares amid the yen’s appreciation, which cuts profits from exports, and dampened sentiment because of the lack of progress in the Japan-U.S. trade talks.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.