Between the Bells

It was a silent night for markets, as Wall Street was closed for the Labor Day public holiday. 

European equities are approaching record levels. Tech stocks in Europe increased 1.6%, leading the major European indices higher, after the US jobs report revealed US jobs are growing at their slowest pace in 7 months. The US Central Bank may need to keep monetary policy as is, and not scale back on bond buying. This will keep bond yields and interest rates lower for longer. 

The Aussie share market is set to open higher, with the futures suggesting a lift of 0.2%. 

What to watch today: 

• All eyes will be on tech stocks today. Tech stocks rose 1.2% on the ASX yesterday. Appen (ASX:APX) rose 4.6%, Redbubble (ASX:RBL) rose 3.5% and Technology One (ASX:TNE) rose 2.2%. 
• The aluminium price hit a decade high overnight, amid political unrest in Guinea. Global stimulus and the push for climate change investment and tighter supply, has pushed aluminium up 40% this year. This is supporting stocks such as Alumina (ASX:AWC), which rose 3% yesterday and 19% last week. The 15 and 30 day moving averages and the MACD technical indicators, are both suggesting AWC could continue to rally. Also watch other aluminium stocks such as South32 (ASX:S32).  
• The iron ore price last traded 3% higher at US$144.83, while the copper price is steady. And the oil price fell below US$69, as it continues to lose momentum after the weaker than expected US jobs report. 
• Companies going ex-dividend today include Amcor (ASX:AMC), BlueScope (ASX:BSL), IOOF (ASX:IFL), IGO (ASX:IGO) and Origin Energy (ASX:ORG). 
• One of the most traded stocks by Bell Direct clients yesterday was Fortescue Metals (ASX:FMG), which fell 11% after it went ex-dividend. FMG shares are now 30% cheaper than they were in July this year. The technical indicators suggest FMG shares could continue to fall, while the MACD flagged a bullish signal, suggesting this could be the end of FMG’s downtrend. 
• In economic news, the RBA meets for the first time this month today at 2:30pm AEST. Rates are tipped to remain on hold at 0.1%. However, all eyes are on the Central Bank’s decision to change its timetable for buying government bonds, with $4 billion of bonds being bought by the RBA until at least the 11th November 2021. 

Trading Ideas: 

• Cobram Estate Olives (ASX:CBO) was rated for the first time by Bell Potter as a new BUY stock, with a price target of $2.30, implying 14% share price growth in a year. 
• Bullish charting signals have been identified in IOUPay (ASX:IOU), Polynovo (ASX:PNV) and Firefinch (ASX:FFX), according to Trading Central. 

The Aussie share market is set to open lower, with the futures suggesting a fall of 0.3%. 

What to watch today: 

• The iron ore price rose 3% to US$144.83, while copper rose 0.8%. The oil price fell 1% to US$69, as US jobs grew at their slowest pace in 7 months, due to a surge in COVID-19 infections. 
• Companies going ex-dividend today: Ramsay Health Care (ASX:RHC), Australian Finance Group (ASX:AFG), Altium (ASX:ALU), Australian Securities Exchange (ASX:ASX), Northern Star Resources (ASX: NST), Orora (ASX:ORA) and Sandfire Resources (ASX:SFR). 
• The most traded stocks by Bell Direct clients on Friday were Fortescue Metals (ASX:FMG) and BHP (ASX:BHP). 
• In economic news, ANZ job advertisements for August will be released today, the RBA will meet on Tuesday for the first time this month, and business confidence data will be released on Wednesday. 

Trading Ideas: 

• Visioneering (ASX:VTI) was rated for the first time by Bell Potter as a Speculative BUY, with a price target of $1.31, implying 33% share price growth in a year.  
• Pilbara Minerals (ASX:PLS), Hastings Technology Metals (ASX:HAS) and Volpara Health Technologies (ASX:VHT) are all giving off bullish charting signals, according to Trading Central. 

Following a mix of good and bad market news this week, the Aussie share market traded cautiously, closing flat (Mon-Thu). And with reporting season officially wrapping up, it was mostly good news for investors.

In this week’s wrap, Jessica covers:

• (0:17) Why volatility may increase in the short term
• (0:41) Good and bad market news this week
• (3:05) The Tech sector making a comeback, rising 2%
• (3:51) Five commodity stocks that saw big gains
• (5:09) A uranium stock that stole the show, lifting 33%
• (5:37) The reporting season finale: 78% of companies beat or met earnings estimates

Yesterday the ASX200 closed in the red, down 0.55%, as investors took profits from several companies trading ex-dividend.

In New York, all three major indices closed with gains. The S&P500 and the Dow Jones closed higher 0.3% and 0.4% respectively. While the Nasdaq advanced 0.1%.

Following US equities, the SPI futures are suggesting the ASX200 will open 0.2% higher. 

What to watch today:

• In economic news, yesterday Australia’s Balance of Trade data was released. In July, trade surplus rose by $1 billion, to a record high of $12.1 billion, after June’s reading was upwardly revised to $11.1b. The $12.1b reading was well above the market consensus of $10.2 billion. And today, the Markit Services PMI for August will be released at 9am AEST.  
• Companies going ex-dividend today include Ampol (ASX:ALD), Bendigo and Adelaide Bank (ASX:BEN), Cyclopharm (ASX:CYC), People Infrastructure (ASX:PPE) and Resimac Group (ASX:RMC). 
• One of the most traded stocks by Bell Direct clients yesterday was Fortescue Metals (ASX:FMG). Its share price was under pressure due to the weakening iron ore price, which fell to a 7-month low this week. Flight Centre (ASX:FLT) was also one of the most traded stocks yesterday, after announcing a joint venture with a travel management business in Japan. 
• The oil price is trading 2.4% higher at US$69 a barrel. 
• Gold is trading lower at US$1,809 an ounce, awaiting the US government employment report and the Fed’s decision. 
• And the iron ore price is trading 1.8% lower at US$140 as China looks to flatline its output of steel.

Trading ideas:

• Bell Potter have upgraded their rating on biotechnology company Imugene (ASX:IMU) from a HOLD to a Speculative BUY, and have increased their price target from $0.25 to $0.52. The upgrade comes after IMU announced 3 separate studies that have the potential to be attractive to future development partners. IMU closed at $0.30 yesterday, implying 30% share price growth in a year. 
• Bullish charting signals have been identified in Azure Minerals (ASX:AZS), HomeCo Daily Needs (ASX:HDN) and BARD1 Life Sciences (ASX:BD1), according to Trading Central. 

The ASX dropped about 1% yesterday at the open, however better than expected GDP data trimmed losses from lunchtime onwards. Consumer staples and discretionary sectors dragged the market, while energy stocks were strong despite oil prices dropping. 

In the US, the S&P500 closed flat for the first day of September. Tech stocks strengthened, which pushed the Nasdaq to close at a record high, and the Dow Jones closed 0.14% lower. 

The Aussie share market is set to open lower, with the SPI futures expecting a fall of 0.2% this morning. This follows the mixed session we saw on Wall Street.

What to watch today:

• Australia’s balance of trade data for July will be released today at 11:30am AEST. Expectations suggest that July’s reading will come in at $10.2 billion.
• Companies going ex-dividend today include CSL (ASX:CSL), Deterra Royalties (ASX:DRR), InvoCare (ASX:IVC), Jumbo Interactive (ASX:JIN), NIB Holdings (ASX:NHF) and Woolworths (ASX:WOW). 
• One of the most traded stocks yesterday by Bell Direct clients was Kuniko (ASX:KNI). Its share price lifted nearly 19% yesterday, amid the company appointing a new CEO. 
• The oil price remained steady following OPEC and its allies agreeing to remain consistent with their existing policy of gradual oil output increases. 
• The gold price traded within its range as investors focused on key labour data that could influence the Fed Reserve’s tapering plans.
• The iron ore price plunged over 10% amid production curbs in China. 

Trading ideas:

• Bell Potter has maintained its BUY recommendation on gold producer Regis Resources (ASX:RRL) and has increased its price target by 4% to $4.05 (previously $3.89). This is off the back of Regis Resources releasing its financial year 2021 results ahead of both Bell Potter’s and consensus’ expectations. Regis Resources lifted 0.4% yesterday to $2.48, which implies about 63% share price growth. 
• Bullish charting signals have been identified in Immutep (ASX:IMM), Janison Education Group (ASX:JAN) and Charter Hall Group (ASX:CHC) according to Trading Central.

US stocks soured on the last trading day of August, with the major indices closing slightly lower. House prices across 20 capital cities rose 19.1% year on year, the biggest jump since 1987. In addition, consumer inflation expectations grew higher. Investors are therefore adjusting their portfolios and looking for stocks in higher interest rate environments, as well as taking profit ahead of the Fed’s meeting. 

The Aussie share market will kick off September cautiously, with the futures down 0.4%, ahead of economic growth data being released. 

What to watch today: 

• GDP data for the second quarter will be released today at 11:30am AEST, expected to be 0.5%. Third quarter GPD will likely show a 3% fall. If the GDP data is weaker than expected, investors are likely to buy staples and utilities, or take profits in growth sectors such as financial, energy and industrials. However, if GDP is stronger than expected, the reverse may occur. 
• The iron ore price fell slightly, while the copper price fell 0.3%. Meanwhile, the oil price fell below US$69, falling from its one month high, amid Hurricane Ida forcing US refineries to shut. Oil has also fallen as Washington pushes OPEC to pump more oil. 
• Companies going ex-dividend today are Iress (ASX:IRE), Wesfarmers (ASX:WES) and Mount Gibson Iron (ASX:MGX). 
• One of the most traded stocks by Bell Direct clients yesterday was Shopping Centres Australasia (ASX:SCP). SCP shares rose 1.5% as more Australians get vaccinated. SCP’s chart flagged a technical bullish signal, with MACD indicating SCP shares could continue to rally over the short term. The chart’s moving averages also recently formed a golden cross, meaning upside could be ahead. 

Trading Ideas: 

• Carbon Revolution (ASX:CBR) was reiterated as a Speculative BUY by Bell Potter, with an increased price target of $1.80 (previously $1.78), implying 58% share price growth in a year. 
• FireFinch (ASX:FFX), Aussie Broadband (ASX:ABB) and Ava Risk Group (ASX:AVA) are all giving off bullish charting signals, according to Trading Central. 

US stocks surged to new records again overnight, as investors seek out higher growth assets ahead of the Fed scaling back stimulus. 

The Aussie share market will likely rally for the second day. The futures are suggesting a lift of 0.2%, with all eyes on tech stocks, reporting season and economic news.  What to watch today: 

• Building permits for July will be released today, with the market expecting a fall of 5%. Keep an eye on companies such as Brickworks (ASX:BKW), CSR (ASX:CSR), Boral (ASX:BLD) and other companies in the building material industry. 
• The iron ore price is steady at US$160. However, the short term indicators are flagging that the iron ore price should start to bounce back. 
• The copper price rose 1.1%, which supported New York listed BHP, rising 1.6%, and New York listed RIO followed. Watch Aussie listed BHP (ASX:BHP), Rio Tinto (ASX:RIO) and other iron ore and copper stocks. 
• The oil price steadied at US$69.17. 
• Company earnings today: 
  • Regis Resources (ASX:RRL) reported a 27% fall in profit to $146 million. The market expected profit of $156.5 million. 
  • Sandfire Resources (ASX:SFR) reported record profit. Net profit rose 132% to $170.1 million, falling slightly short of market expectations of $200.8 million profit. 
  • Regis Healthcare (ASX:REG) reported profit soared over 2000% to $19.9 million. 
• Companies going ex-dividend today: Appen (ASX:APX) and Link Administration (ASX:LNK)
• One of the most traded stocks by Bell Direct clients yesterday was Fortescue Metals (ASX:FMG). FMG shares rose 6.6%, trading above its 15-day average for the first time since July. The technical indicator MACD, looks like it will flag a bullish signal, suggesting FMG’s rally could continue in the short term. 

Trading Ideas: 

• Drilling company DDH1 (ASX:DDH) was reiterated as a Bell Potter BUY, with an increased price target of $1.48 (previously $1.45), implying 30% share price growth in a year. 
• Citi flagged Flight Centre (ASX:FLT) as a HOLD, following its results. Citi also increased FLT’s price target to $16.94. 
• Paladin (ASX:PDN), Red 5 (ASX:RED) and Perseus Mining (ASX:PRU) are all giving off bullish charting signals, according to Trading Central. 

US stocks rebounded on Friday to new record highs. Tech stockswere higher as the market prepares for the Federal Reserve Chair Jerome Powell to pull back on monetary stimulus. 

The oil price, the proxy for economic growth, formed a 6 day uptrend. The oil price posted its biggest weekly rally in a year, with oil bracing for restricted supply ahead of Hurricane Ida. 

This morning, the Aussie share market will likely follow US stocks higher. The futures are suggesting a lift of 0.2%, with all eyes on tech, iron ore, and company results. 

What to watch today: 

• The iron ore price is steady after falling below US$160 for the first time since February. 
• The copper price rose 1.7%, which supported New York listed BHP rising 2.7% and Rio Tinto rising 2.6%. Expect the Aussie listed BHP, RIO, and other iron ore and copper stocks to lift today. 
• The gold price is holding steady, after rising slightly above US$1800, lifting 0.1% ahead of the Fed unveiling its tapering timeline. 
• Company earnings today: 
  • Fortescue Metals (ASX:FMG) is set to report record profit of US$10.3 billion. However, future growth is expected to dim, as the iron ore price is down over 20% from its high and steel demand remains restricted in China. 
  • Orocobre (ASX:ORE) is also due to report today after merging with Galaxy Resources, to create the world’s 5th biggest lithium company. 
  • Bubs Australia (ASX:BUB), Healius (ASX:HLS) and Australia Finance Group (ASX:AFG) are also set to report today. 
• Oil Search (ASX:OSH) and Woodside Petroleum (ASX:WPL) go ex- dividend today. 
• The most traded stocks by Bell Direct clients last Friday: Brickworks (ASX:BKW)’s share fell 2.8% last week after construction work fell more than expected. And Fortescue Metals (ASX:FMG)’s shares continued to fall for the 6th week, as demand for steel contracts. FMG shares fell about 2% last week ahead of reporting results to the market today. 

Trading Ideas: 

• Eagers Automotive (ASX:APE) was reiterated as a Bell Potter BUY, with a price target of $18.75, implying 16% share price growth in a year. 
• Citi flagged Wesfarmers (ASX:WES) as a SELL, following its earnings results, and Citi expects WES shares to fall to $47.00 in 12 months. 
• Fertoz (ASX:FTZ), Clearview Technologies (ASX:CPV), and Stavely Minerals (ASX:SVY) are all giving off bullish charting signals, according to Trading Central. 

Aussie investor sentiment dampened as COVID-19 cases hit new highs and weaker than expected economic data was released. Meanwhile, global markets brace for big change, with the US Federal Reserve to potentially scale back support. 

In this week’s wrap, Jessica covers: 

• (0:50) The Aussie share market bracing for another pullback
• (2:02) Investors buying into growth sectors while selling defensive sectors
• (2:31) WiseTech (ASX:WTC) soaring over 30% on positive financial results and signing FedEx as a client
• (3:09) Travel stocks flying higher as Australia's borders are set to open in December
• (4:55) Two company reports to watch next week

Yesterday the Aussie share market closed in the red, closing 0.54% lower. 

In overseas markets, investors are cautions as they await the meeting of US Federal Reserve policymakers as well as new developments in Afghanistan also played a part for investors in the risk- off sentiment. 

Following US equities, the SPI futures are suggesting the ASX200 will open slightly lower.  

What to watch today:

• In economic news, retail sales data for July will be released at 11:30am AEST. In June, retail sales declined 1.8% month over month, impacted heavily by the nation-wide lockdowns. The market is expecting a 2.3% decline. 
• Travel stocks, Flight Centre (ASX:FLT) and Qantas (ASX:QAN), were among the most traded stocks by Bell Direct clients yesterday, after both companies reported their 2021 financial year results. FLT reported a 79% decline in revenue and a $507.1 million underlying loss, while QAN reported a 58% decline in revenue, heavily impacted by border closures and travel restrictions. 
• Companies reporting today include: Auswide (ASX:ABA), BWX (ASX:BWX), Next DC (ASX:NXT), Resolute Mining (ASX:RSG), Village Roadshow (ASX:VRL) and Wesfarmers (ASX:WES). 
• The oil price has fallen 0.9% and is trading at US$67.74 a barrel. 
• Gold fell for the 3rd consecutive session, amid a slightly stronger dollar. 
• And iron ore has fallen 1.8% and is trading at US$159 a tonne. 

Trading ideas:

• Bell Potter has maintained their BUY rating on The a2 Milk Company (ASX:A2M), however have decreased their price target from $8.50 to $7.70. This comes after A2M reported its 2021 financial year results yesterday. A2M closed yesterday at $6.05, implying 27.3% share price growth in a year. 
• Wisr (ASX:WSR), Tyro Payments (ASX:TYR), and Swoop Holdings (ASX:SWP), are all giving all bullish charting signals, according to Trading Central.