ASX 200 midday update: CBA’s Q3 update impresses, Xero and Block crash

The ASX 200 is having a tough day on Thursday…

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and tumbled lower. The benchmark index is currently down 0.75% to 7,010.7 points.

Here’s what is happening on the ASX 200 today:

CBA Q3 update impresses

The Commonwealth Bank of Australia (ASX: CBA) share price is pushing higher today. This follows the release of a third-quarter update that came in ahead of expectations. For the three months ended 31 March, compared to the quarterly average during the first half, CBA reported a 1% decline in operating income to $6,103 million and flat cash earnings of $2,400 million. The latter was 6% ahead of the Citi’s expectations and 9% ahead of the analyst consensus estimate.

Xero full-year results disappoint

The Xero Limited (ASX: XRO) share price has crashed to a new 52-week low on Thursday after the cloud accounting platform provider’s full-year results disappointed. Xero reported a 29% increase in revenue to NZ$1.1 billion and an 11% lift in earnings before interest, tax, depreciation and amortisation (EBITDA) to NZ$212.7 million. This was underpinned by a 19% increase in total subscribers to 3.3 million. However, according to Goldman Sachs, Xero’s missed on revenue, EBITDA, and subs growth.

Tech shares pummelled

The main drag on the ASX 200 on Thursday has been the tech sector. A selloff on the tech-focused Nasdaq index on Wednesday night has led to the S&P/ASX All Technology Index falling 5.2% today. Among the worst performers are Xero and Block Inc (ASX: SQ2). The latter is down 15% following a similar sharp decline by its NYSE listed shares on Wall Street overnight.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Orica Ltd (ASX: ORI) share price with a 7% gain. This follows the release of the commercial explosives company’s half-year results. Going the other way, the Block share price is the worst performer with a 15% decline.

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 positions in and has recommended Block, Inc. and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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