The S&P/ASX 200 (ASX: XJO) finished 0.1% lower on Tuesday as consumer confidence dropped over 7% to the lowest point since the vaccination announcement in November 2020.
The market remains mixed with cyclical sectors including energy and materials up 0.2% and 0.6%, respectively, whilst the more defensive healthcare sector underperformed, falling 1.2%.
JB Hi-Fi share price shines on down day
All eyes were on the retail sector, however, with JB Hi-Fi Limited (ASX: JBH) jumping 6.9% and overcoming a fall in profit. Management confirmed the group continues to see strong sales growth, even though revenue only increased 1.9% in the second quarter compared to 2020. Importantly, this was still 23% higher than two years earlier.
Online sales continue to drive the business, hitting $1.1 billion, nearing 23% of total sales and over 60% higher than the previous year. Earnings also contracted, down 9.1%, as 2020’s surge in sales and run down in inventory make comparables more difficult.
Redbubble share price tanks again
One of 2020’s darling stocks continued its fall back to earth, with shares in online retailer Redbubble Ltd (ASX: RBL) sinking another 22%, taking the 12-month loss to over 60%.
The sell-off was due to another missed earnings result. Despite an environment ripe for online sales, gross profit fell to $108 million, with earnings down more than 80% to just $8 million. The company blamed strong mask sales in 2020 for the decline, along with increased shipping costs and Apple’s IDFA changes.
Ampol profit jumps
Oil refiner Ampol Ltd (ASX: ALD) gained another 2.4%, benefitting from a surge in the price of oil around the world. Management confirmed that its refining margin, representing the difference between input and output prices, nearly doubled from US$6.76 to US$11.24 in the December quarter. Such was the strength that the company doesn’t expect to receive any government subsidies this quarter.
Meanwhile, Rio Tinto Limited (ASX: RIO) underperformed, down 0.3%, after the company reported a 3% fall in iron ore product, blaming the performance on rainfall, cultural heritage management and delays in mine replacements.
ASX 200 today
Looking ahead, the ASX 200 is set to open in the red this morning after all three US benchmarks tumbled overnight. The Nasdaq index was the hardest hit, suffering another 2.6% fall. To find out more, check out my US stock market report.