Between the Bells

On Friday the ASX200 edged 0.2% higher. Healthcare, Consumer Staples and Materials made the most gains, while the Industrials and Information Technology sectors declined the most. 

Casino group, Crown Resorts (ASX:CWN) rose more than 16% on Friday, off the back of news that US private equity group Blackstone, who currently own 10% of Crown, put forward a merger proposal, bidding $12.50 cash per share. The board are currently considering the offer. 

The most traded stocks by Bell Direct clients on Friday included the BetaShares Gold ETF (ASX:QAU) and Queensland Pacific Metals (ASX:QPM). 

In overseas markets, European markets closed lower as Austria re-enters a national lockdown. US equities also struggled on Friday; however tech share posted a winning week. Global markets were weighed down by heightened inflation and COVID-19 concerns. 

Today, following European & US markets, the SPI futures are suggesting the ASX200 will fall 0.6% at the open.

What to watch today

• The oil price is trading 3.7% lower, below US$76 a barrel, nearing levels not seen in 7-weeks.
• Gold is trading at its lowest level in 2-weeks. 
• The seaborne iron ore price has moved slightly higher, trading just above US$92 a tonne. 
• Elders (ASX:ELD) is set to go ex-dividend today. Last week the company announced a final dividend of 22cps franked to 20%. 

Trading ideas:

• Bell Potter has maintained their BUY rating on footwear retailer and distributer Accent Group (ASX:AX1) and have increased their price target from $2.90 to $3.05. AX1 recovered from early losses on Friday, closing at $2.68, which implies 13.8% share price growth in a year. 
• Bullish charting signals have been identified in Ardea Resources (ASX:ARL) and Breville Group (ASX:BRG) according to Trading Central. 

The Aussie share market declined 0.9% (Mon-Thu). Financials took a hit after the Commonwealth Bank (ASX:CBA) released a disappointing Q1 result, while wage growth saw its strongest annual rise since March 2020. 

In this week’s wrap, Sophia covers:

• (0:22) Key takeaways from the latest wage growth data 
• (2:17) Nickel Mines (ASX:NIC) gains 9% as production output is brought forward
• (3:27) Why CBA's report card saw its share price tumble 10%
• (4:20) What stocks Bell Direct clients were trading this week
• (5:12) An update on Chinese equities and the Evergrande situation
• (6:33) Four economic news items to watch out for

Watch the weekly wrap here.

Aussie shares came under pressure yesterday, with the ASX200 closing 0.7% lower. The Financials sector weighed down on the market following Commonwealth Bank of Australia (ASX:CBA) releasing a disappointing Q1 result, which came in below market expectations. The best performing sector was the Tech sector which lifted a modest 1.6%.

Telecommunications business, Uniti Group (ASX:UWL) lifted 8.3%, following an update on its share buyback and operational performance. While, Nufarm (ASX:NUF) fell 8.6% despite reporting a strong full-year result. 

All three US benchmarks closed lower despite strong retail earnings reports. This comes as inflation concerns continue to linger and some retailers revealing margin pressures. The Dow fell 0.5%, the S&P500 closed 0.2% lower, while the Nasdaq slipped 0.3%. 

After a negative session on Wall Street, the futures are suggesting the Aussie share market will open slightly lower this morning.

What to watch today:

• Evolution Mining (ASX:EVN) announced yesterday that it will grow its exposure to copper and silver, after agreeing to pay $1 billion for Glencore’s Ernest Henry mine in Queensland. As EVN’s copper production will increase, this will lower its all-in sustaining cost per ounce and help cement EVN as one of the lowest cost gold producers in the world. 
• Aristocrat Leisure (ASX:ALL) are set to release their full year results.  
• Goodman Group (ASX:GMG), Mineral Resources (ASX:MIN), Northern Star Resources (ASX:NST) and BlueScope Steel (ASX:BSL) are holding their AGMs today. 
• Cobram Estate Olives (ASX:CBO), James Hardie (ASX:JHX) and Vita Group (ASX:VTG) are going ex-dividend today.
• Oil prices fell amid oversupply warnings and as COVID-19 cases in Europe increased. The WTI crude oil price fell 3.5% and is currently trading at US$77.90 a barrel. While the gold price rose following inflation worries, boosting the appeal of the safe-haven metal. 

Trading ideas:

• Commonwealth Bank of Australia (ASX:CBA) released its Q1 results yesterday, and a few brokers have revised their views. Citi has a SELL rating on CBA with a price target of $94.50. Bell Potter maintain their BUY recommendation on the stock, however, have reduced their price target by 6%, from $118 to $111. Ord Minnett has a HOLD rating on CBA with a price target of $95. And Goldman Sachs has retained its SELL rating and cut its price target to $81.74. 
• Bullish charting signals have been identified in Uniti Group (ASX:UWL), NEXTDC (ASX:NXT) and Red River Resources (ASX:RVR) and that’s according to Trading Central. 

The ASX200 fell 0.7% yesterday following a sell-off in Mining stocks and weaker commodity prices, which saw Materials as the worst performer. BHP Group (ASX:BHP) and Rio Tinto (ASX:RIO) both fell more than 2%. Energy stocks also fell, including Santos (ASX:STO), Oil Search (ASX:OSH) and Woodside Petroleum (ASX:WPL). Most sectors were lower, except Information Technology. Chalice Mining (ASX:CHN) was back on top yesterday, rising 3.7%. Virgin Money (ASX:VUK) also advanced, following positive gains in its UK listed share on Monday night. Biotech company Mesoblast (ASX:MSB) lost ground, falling over 8%. 

In New York the markets had a positive run. The S&P 500 up 0.4%, the Dow up 0.2% and the Nasdaq up 0.8%. US stocks gained after October retail sales data came in better than expected. Sales jumped 1.7%, a good sign for the upcoming holiday season. 

The SPI futures are suggesting the ASX200 will rise 0.4% at the open this morning. 

What to watch today:

• In economic data, the wage price index will be released today at 10:30am AEDT. That shows the annual change in hourly rates of pay. Consensus expects a rise to 0.5% from 0.4% QoQ and a rise to 2.2% from 1.7% YoY. 
• This morning agricultural chemical company Nufarm (ASX:NUF) reported its full-year 2021 results, with strong operational performance and 51% growth in underlaying earnings and cash generation. And the company declared an unfranked dividend of 4 cents per share. 
• And AGMs will be held today for City Chic Collective (ASX:CCX) and Seven Holdings (ASX:SVW).  
• The most traded stocks by Bell Direct clients yesterday included BHP Group (ASX:BHP) and Mineral Resources (ASX:MIN) amid broad selling in materials, and South32 (ASX:S32) as its price declined amid increased pressure to take into consideration climate change risks. 
• The oil price is trading lower at US$80.60 as demand concerns were offset by prospects of tight inventories. Gold is also trading lower, easing earlier session gains. And the seaborne iron ore is trading down 0.4% at US$92 a tonne. 

Trading ideas:

• Bell Potter maintain their BUY rating on Technology One (ASX:TNE) and have increased their price target from $13.50 to $15. TNE closed at $13.09 yesterday, implying 14.6% share price growth in a year. 
• Goldman Sachs retain their BUY rating on Hipages Group (ASX:HPG), and have increased their price target from $4.90 to $4.95.

The Aussie share market managed to close 0.4% higher yesterday, with the market now up a modest 2% for November. Most sectors closed higher, except for the Energy, Materials and Utilities sectors. 

Mesoblast (ASX:MSB) blasted its way to the top of the leaderboard, closing nearly 12% higher after the release of an update on a phase three trial for the therapy’s use in treating chronic heart failure. While, Whitehaven Coal (ASX:WHC) was one of the worst performers, following an international agreement to reduce coal use.

In the US, stocks closed flat to start the new trading week ahead of quarterly results from big US retailers, which will give a further idea about the US economic recovery and inflation pressures. 

After a flat session on Wall Street, the futures are suggesting the Aussie share market will open 0.39% lower this morning. 

What to watch today:

• In economic news, the RBA meeting minutes will be released at 11:30am AEDT, which will go into more detail to explain the monetary policy decision made earlier this month. And at 1:30pm AEDT, we will hear from RBA Governor Phillip Lowe on recent trends in inflation.
• Property giant, Mirvac Group (ASX:MGR), lithium producer, Pilbara Minerals (ASX:PLS) and Lifestyle Communities (ASX:LIC) are holding their AGMs today. 
• Ausnet Services (ASX:AST) is set to go ex-dividend today. 
• The most traded stocks yesterday by Bell Direct clients, included Western Areas (ASX:WSA), Fortescue Metals (ASX:FMG) and Imugene (ASX:IMU).
• Oil prices came under pressure amid fears of a supply boost and weakening demand. The gold price pulled back after its 7-day rally, as US bond yields lifted, currently trading at US$1,862. While the seaborne iron ore price trades 1% lower at US$92.36 a tonne. 

Trading Ideas:

• Bell Potter has upgraded its rating on chemical manufacturing company, DGL Group (ASX:DGL) from a HOLD to a BUY with a price target of $3.05. DGL’s share price is up 143% since it listed on the ASX earlier this year, and at its current share price of $2.62, implies 16.4% share price growth in a year.
• Morgan Stanley and Bell Potter also reiterated their bullish ratings on Life360 (ASX:360). Morgan Stanley has an Overweight rating and price target of $14.20, while Bell Potter has a BUY rating with an increased price target to $14.75. 
• Bullish charting signals have been identified in Boss Energy (ASX:BOE), Paladin Energy (ASX:PDN) and Karoon Energy (ASX:KAR) and that’s according to Trading Central. 

On Friday, Aussie shares rebounded and ended the week higher after three days of losses. Mining stocks were the best performers, with Rio Tinto (ASX:RIO), BHP Group (ASX:BHP), Fortescue Metals (ASX:FMG), Champion Iron (ASX:CIA) and Mineral Resources (ASX:MIN) all making gains. 

In overseas markets, despite worrisome inflation figures in both the US and China, weighing down on global sentiment last week, European markets still ended the week higher. The S&P500 is up 0.7%, the Dow up 0.5% and the Nasdaq up 1%, with the mega-cap tech names supporting the broader market. 

The ASX200 is set to open 0.04% lower this morning, going by the SPI futures.

What to watch today:

• Telstra (ASX:TLS) is set to formally announce its joint venture with data and analytics company Quantium, which is a part of Woolworths Group. 
• Companies set to go ex-dividend today include National Australia Bank (ASX:NAB), Plato Income Maximiser (ASX:PL8) and QV Equities (ASX:QVE). 
• Elders (ASX:ELD) and Incitec Pivot (ASX:IPL) will both report full year results today.
• On Friday, the major mining stocks were the most traded stocks by Bell Direct clients, as the sector advanced. These included Fortescue Metals (ASX:FMG), Mineral Resources (ASX:MIN), and BHP Group (ASX:BHP). Another highly traded stock was AI and machine learning company BrainChip Holdings (ASX:BRN).
• The oil price has fallen 0.8%, amid concerns that the US could release oil from strategic emergency reserves to curb high oil prices. So watch stocks such as Santos (ASX:STO) and Woodside Petroleum (ASX:WPL).  
• Gold is trading higher, above US$1,850 an ounce, driven by inflation hedging amid surging US consumer prices. So stocks such as Newcrest Mining (ASX:NCM) and Northern Star Resources (ASX:NST) may rise higher. 
• The seaborne iron ore price is currently trading just above US$93 a tonne. 

Trading ideas:

• Bell Potter have a Speculative BUY rating on Liontown Resources (ASX:LTR) and have increased their price target from $1.33 to $2.15. 
• Trading Central has identified bullish charting signals in Credit Clear (ASX:CCR), Rex Minerals (ASX:RXM) and Sovereign Metals (ASX:SVM). 

The Aussie share market has come under pressure this week, down 1% (Mon-Thu). All sectors closed in the red, except for the Materials sector, off the back of positive announcements from a few Mining stocks.

In this week’s wrap, Sophia covers:

• (0:34) The rundown on the latest unemployment reading
• (2:12) Why Chalice Mining's (ASX:CHN) share price skyrocketed
• (3:12) Seven more Mining stocks that saw big gains
• (4:46) Three companies growing their ethical focus
• (6:13) What stocks Bell Direct clients were trading this week
• (6:49) Two economic news items to watch out for

Watch the weekly wrap here.

The Aussie share market fell for the third straight day yesterday, down 0.14%, off the back of a weakening iron ore price with big miners and blue chips leading the falls.  

For the second straight day, Chalice Mining (ASX:CHN) has topped the leader board, lifting another 5% following the company’s platinum discovery near Perth. The worst performing stocks were BlueScope Steel (ASX:BSL) and Nearmap (ASX:NEA) which saw declines of 5.8% and 4.9% respectively. 

In the US, stocks retreated following October’s consumer price reading coming in at its highest level in 30 years. After inflation data came in higher than estimated, the Dow shed over 200 points, the S&P500 dipped 0.82% and the Nasdaq declined over 1%. 

After a negative session on Wall Street, the futures are suggesting the Aussie share market will open 0.08% lower this morning. 

What to watch today:

• Today the unemployment rate will be released for October. Given there is uncertainty as to how the transition from lockdowns played out, economists have forecast that the unemployment rate will rise from 4.6% in September to 4.8% in October. 
• Keep an eye on cloud accounting platform Xero (ASX:XRO) today, as the company is set to release its half-year results. 
• There are a few companies holding theirs AGMs today, including BHP Group (ASX:BHP), Breville (ASX:BRG), Nine Entertainment (ASX:NEC), Nearmap (ASX:NEA), Cooper Energy (ASX:COE) and REA Group (ASX:REA).
• Australian Pharmaceutical Industries (ASX:API) is set to go ex-dividend today. 
• Oil prices came under pressure after US crude inventories rose by 1 million barrels, which was short of estimates. Keep an eye on energy shares like Woodside Petroleum (ASX:WPL) and Oil Search (ASX:OSH) which could come under pressure today. And the gold price rose as the US dollar firmed, trading nearly 1% higher at US$1,849 an ounce.

Trading Ideas:

• Bell Potter has maintained its BUY rating on software company Nitro Software (ASX:NTO) with a price target of $4.50. The company entered into a trading halt yesterday morning, last trading at $3.84 per share, which implies 19.4% share price growth. Separately, Morgan Stanley has an Overweight rating on the stock. 
• Bullish charting signals have been identified in Alpha HPA (ASX:A4N), Rumble Resources (ASX:RTR) and WiseTech Global (ASX:WTC), and that’s according to Trading Central. 

The ASX200 lost 0.2% yesterday. Financials were down – CBA, ANZ and Westpac declined, as did NAB after releasing positive full-year results. NAB reported profits rebounded, increasing 77% and declared a $0.67 final dividend, which is more than double what it paid this time last year. 

Chalice Mining (ASX:CHN) jumped an impressive 28.5% after they uncovered the world’s largest nickel sulphide discovery in the last 20 years. Ingham’s Group (ASX:ING) was the worst performer, falling 4.5% and currently a Bell Potter and Citi BUY. 

European and US markets closed lower, taking in US producer inflation data. The S&P500 fell for the first time in nine sessions, down 0.4%. The Dow Jones down 0.3% and the Nasdaq down 0.6%. 

Despite US equities falling from their records, the SPI futures are suggesting the ASX200 will open 0.27% higher. 

What to watch today:

• Medical equipment company ResMed (ASX:RMD) is set to go ex-dividend today. 
• AGMs will be held today for Amcor (ASX:AMC), Coles (ASX:COL), Sims (ASX:SGM), Vicinity Centres (ASX:VCX), Mount Gibson Iron (ASX:MGX) and Newcrest Mining (ASX:NCM). 
• The most traded stocks by Bell Direct clients yesterday were Northern Star Resources (ASX:NST) and the Crypto Innovators ETF (ASX:CRYP), which has surpassed $100 million in trading volume, its first three days floating on the exchange. 
• Keep watching those travel stocks, as yesterday NSW reached 90% fully vaccinated of those over 16 yrs. 
• The oil price is trading more than 3% higher, above US$84 a barrel. Gold reached a new 2-month high, amid rising inflation expectations. And, the price of coal is lower, as is seaborne iron ore, currently trading just under US$92 a tonne. 

Trading ideas:

• Bell Potter maintain their BUY rating on National Australia Bank (ASX:NAB), and have increased their price target to $32, after the bank reported impressive full year results, which were mostly in line with expectations. Yesterday NAB closed at $28.89, implying 10.8% share price growth in a year. 
• Additionally, bullish charting signals have been identified in Boss Energy (ASX:BOE), Lotus Resources (ASX:LOT) and De Grey Mining (ASX:DEG), according to Trading Central. 

Yesterday, the ASX200 broke its 3-day winning streak, dipping 0.06% or 4 points, as blue chips, tech and healthcare stocks weighed down on the market. 

Sector wise, the market was mixed. The energy sector was strong, up nearly 2%, while the tech sector was the worst performer, which fell 1.72%. Travel stocks performed well: Flight Centre (ASX:FLT), Webjet (ASX:WEB) and Qantas (ASX:QAN) all advanced between 4-6% as the nation’s border restrictions were set to ease, allowing vaccinated travellers to enter the United States for non-essential reasons. Sydney Airport (ASX:SYD) rose 2.8% yesterday after its board accepted the $23.6 billion takeover offer. The worst performers: tech shares Xero (ASX:XRO), EML Payments (ASX:EML) and Appen (ASX:APX) all came under pressure, however the worst performer was medical device company PolyNovo (ASX:PNV) which fell nearly 10% after its Managing Director Paul Brennan handed in his resignation. 

In the US, all three benchmarks lifted, with the Dow advancing over 100 points. This comes after Congress passed a more than $1 trillion infrastructure bill, now awaiting President Joe Biden’s signature. The package will help provide new funding for transportation, utilities and broadband. The S&P500 pushed forward 0.1% and the tech-heavy Nasdaq rose 0.2%. 

After a positive session on Wall Street, the futures are suggesting the Aussie share market will open 0.15% higher this morning. 

What to watch today:

• National Australia Bank (ASX:NAB) is set to release its full year results. Morgans expects NAB to report cash earnings from continuing operations broadly in line with consensus estimates and is estimating a fully franked final dividend of 64 cents per share. 
• In economic news, business confidence data for October will be released this morning. 
• AGMs today: Fortescue Metals (ASX:FMG), Bendigo & Adelaide Bank (ASX:BEN) and cloud communications software & services company MNF Group (ASX:MNF).
• The most traded stocks by Bell Direct clients yesterday included Sydney Airport (ASX:SYD), the Crypto Innovators ETF (ASX:CRYP) and Vulcan Energy Resources (ASX:VUL). 
• CSR (ASX:CSR) and Waterco (ASX:WAT) are set to go ex-dividend today. 
• Oil prices rose on Monday, following the passing of the US infrastructure bill. The WTI crude oil price was up 1.17% to US$82.22 a barrel. The gold price came close to hitting a two-month high, while the seaborne iron ore price trades at US$94.36 a tonne. 

Trading Ideas:

• Bell Potter has maintained its BUY rating on leading mining services company, Mineral Resources (ASX:MIN), however have decreased its price target to $50.45 (previously $54.25). Macquarie and Citi are positive on the stock, Ord Minnett have a HOLD rating, while Morgan Stanley is underweight. 
• Bullish charting signals have been identified in Red Dirt Metals (ASX:RDT), Coronado Global Resources (ASX:CRN) and Unibail-Rodamco-Westfield (ASX:URW), according to Trading Central.