Why BHP, Northern Star, REA, & ResMed shares are dropping

It hasn't been a great day for these ASX shares…

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. At the time of writing, the benchmark index is up slightly to 7,515.1 points.

Four ASX shares that are acting as a drag on the market today are listed below. Here's why they are tumbling:

white arrow dropping down representing the 10 most shorted shares on the ASX

Image source: Getty Images

BHP Group Ltd (ASX: BHP)

The BHP share price is down 2.5% to $51.84. This follows a pullback in iron ore prices overnight. According to CommSec, the spot iron ore price tumbled US$13.10 a tonne or 7.2% to US$170.05 a tonne. This was driven by concerns that Chinese regulators will increase production limits on steel producers.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 3% to $9.97. This appears to have been driven by a decline in the gold price overnight. Traders were selling the precious metal amid fears the US Fed will begin tapering its asset purchases later this year. Northern Star isn't the only gold miner falling today. At the time of writing, the S&P/ASX All Ordinaries Gold index is down 1.9%.

REA Group Limited (ASX: REA)

The REA share price is down 5% to $158.87. Investors have been selling the property listings company's shares following the release of its full year result. For the 12 months ended 30 June, REA posted a 13% increase in revenue to $928 million and an 18% jump in net profit to $318 million. While this was in line with the market's expectations, its outlook commentary may have spooked investors. Management revealed that listing volumes were down year on year in July due to lockdowns.

ResMed Inc (ASX: RMD)

The ResMed share price is down 1% to $36.78. This follows the release of the sleep treatment company's full year result this morning. According to the release, ResMed reported an 8% increase in full year revenue to US$3.2 billion and a 13% jump in non-GAAP net income to US$780.6 million. Once again, this was in line with the market's expectations. Investors may be slightly underwhelmed with management's guidance for steady growth in FY 2022.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended REA Group Limited and ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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