ASX 200 down 0.1%: Xero hits record high, Telstra and Wesfarmers updates impress

Telstra Corporation Ltd (ASX:TLS) and Xero Limited (ASX:XRO) shares are making a splash on the ASX 200 on Thursday…

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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is fighting hard to maintain its winning run but has fallen just short. The benchmark index is currently down 0.1% to 6,443 points.

Here's what has been happening on the market today:

Worried young male investor watches financial charts on computer screen

Image source: Getty Images

Xero's strong growth continues.

The Xero Limited (ASX: XRO) share price raced to a record high this morning following the release of its half year results. For the six months ended 30 September, the cloud-based business and accounting software platform provider delivered a 21% increase in operating revenue to NZ$409.8 million. This was driven by a 19% increase in total subscribers to 2.45 million. On the bottom line, Xero's net profit after tax came in 26 times greater than the prior corresponding period at NZ$34.5 million.

Telstra update.

The Telstra Corporation Ltd (ASX: TLS) share price is charging higher today after it announced a potential restructuring of the company to create three separate legal entities. Telstra's CEO, Andrew Penn, believes the restructure would enable the company to take advantage of potential monetisation opportunities for its infrastructure assets which could create additional value for shareholders. In addition to this, Telstra has reconfirmed the FY 2021 guidance provided to the market with its full year results in August.

Wesfarmers update.

The Wesfarmers Ltd (ASX: WES) share price has been a positive performer following the release of a trading update. This morning the conglomerate revealed strong sales growth across the majority of its businesses. The star performer was arguably Bunnings. At the end of October, the hardware giant's year to date sales were up 25.2% over the prior corresponding period. Also growing strongly were its Officeworks and Catch businesses. Year to date, their sales are up 23.4% and 114.4%, respectively.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Thursday has been the Blackmores Limited (ASX: BKL) share price with a 5% gain. Investors may believe the health supplements company was a winner from record Chinese Single Day sales on Wednesday. The worst performer has been the Fortescue Metals Group Limited (ASX: FMG) share price with a 4% decline. This is despite analysts at Macquarie reiterating their outperform rating and $20.000 price target on the iron ore producer's shares this morning.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Telstra Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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