Stake

Commentary attributed to Kylie Purcell, Senior Markets Analyst at Stake. Not financial advice.

The conflict in the Middle East doesn’t appear to have impacted sales numbers yet, but it’s starting to show up in cost pressures on suppliers, fuel costs and freight. The next few months will give a better picture of whether Woolworths is forced to absorb more of those costs. The timing of today’s price freeze on 300 staples is telling, but is unlikely to completely ease public annoyance.

Woolworths’ Q3 results highlight a shift in how growth is being generated in the supermarket sector. Woolworths is still seeing sales growth, with total and food sales higher than this time last year - group sales rose 4.5% to $18.1 billion, with Australian Food, the core of the business, up 5.9%. This tells us grocery demand is still resilient even as households come under inflationary pressure. Against a backdrop of higher food prices and the ACCC’s scrutiny of supermarket discounting, what’s interesting is that this growth is being driven by volume not price.

Not financial advice. As always, please do your own research.

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The S&P 500 closed at fresh records on Friday and Monday, bringing its 12-month tally of new highs to 40.

Closing bell. Wall Street pulled back, with the Nasdaq leading losses, down 0.9%. The S&P 500 slipped 0.49%, easing off record levels, while the Dow Jones Industrial Average edged 0.05% lower. Volatility remained contained, with the VIX ticking slightly lower. Elsewhere, oil dipped and gold was marginally lower, while the U.S. 10-year yield edged down to 4.348%.