Between the Bells

On Monday the Aussie share market rose 1.3%, supported by gains in Afterpay (ASX:APT) and Pilbara Minerals (ASX:PLS). 

This morning, the futures are suggesting the market will fall 0.3%, peeling back from yesterday’s record high. 

What to watch today: 

• The iron ore spot price fell 3% and the iron ore seaborn price fell 14%, to its lowest level since April. This is due to China’s unexpected commitment to cutting steel production. 
• The copper price fell 1%, while the oil price rose 0.3% to US$71.50. 
• The RBA meet today, expected to hold rates at 0.1%. The focus will be on increasing the amount of bonds the RBA buys. Currently, the RBA is buying $100 billion bonds, with this program ending in September. After September, the RBA planned to decrease the amount of bonds bought each week from $5 billion to $4 billion. This may change given the current restrictions. 
• Credit Corp Group (ASX:CCP) are set to release their earnings today. 

Trading Ideas: 

• Copper and gold producer, Aeris Resources (ASX:AIS) is a Bell Potter Speculative BUY stock, with a new price target of $25.50, implying 15% share price growth in a year. 
• Zip (ASX:Z1P), Seven West Media (ASX:SWM), and Westgold Resources (ASX:WGX) are all giving off bullish charting signals, according to Trading Central. 

The Aussie share market is set to open higher, with the futures suggesting a 0.5% rise for the first day of trade in August.

What to watch today:

• US payment giant Square, will take over Afterpay (ASX:APT) for AU $39 billion. This values APT shares at $126.21, which is a 31% premium to Friday’s close at $96.66. The transaction is expected to be completed by Q1 2022.
• GUD Holdings (ASX:GUD) are set to report their earnings today.
• In economic news, the RBA meets tomorrow. Rates are expected to hold at 0.1%. The focus however, will be on bond buying.
• The iron ore price fell 0.7%, the copper price fell 1%, while the oil price fell slightly by 0.1%.

Trading Ideas:

• Kingfish grower and seller Clean Seas Seafood (ASX:CSS) was reiterated as a Bell Potter Speculative BUY, with a price target of $0.80, implying 46% share price growth in a year.
• ARB (ASX:ARB), EROAD (ASX:ERD) and Cararvon Petroleum (ASX:CVN) are all giving off bullish charting signals, according to Trading Central. 

The Aussie share market rose 0.3% this week (Mon-Thu) remaining in record high territory as the Mining sector charged ahead with better than expected company results and commodity price increases. 

In this week’s wrap, Jessica covers: 

• (0:23) How the Mining sector dug itself into a record high, rising 3%
• (1:44) Three Mining companies in the spotlight, up > 11% each
• (2:44) Three key themes to watch this reporting season
• (5:31) Bank stocks set to report a huge turnaround in earnings
• (6:20) Key reporting results & economic news to watch out for next week

There were mostly gains across the board yesterday. The market rose 0.5%, as three of Australia’s largest iron ore producers hit record prices. 

Overnight US equities rose off the back of strong corporate earnings. All three major indices closed with gains. Robinhood debuted on the Nasdaq starting trade at $38 and closed its debut session at $34.82, 8.4% below the IPO price. 

The Aussie share market is set to open higher, with the futures suggesting a 0.1% lift. 

What to watch today:

• In economic news, the Producer Price Index (PPI) for the second quarter and Private Sector Credit for June will be released at 11:30am AEST. 
• In local COVID-19 news, yesterday NSW recorded its worst day with 239 new cases. Further restrictions have been introduced for NSW local government areas of concern, including mandatory masks outside of the house and staying within a 5km radius. 
• Watch Janus Henderson (ASX:JHG) after the company released positive second quarter results yesterday after the market close. JHG reported a 95% increase in operating income, and overnight its share price rose 6% in the US. 
• In company news, Origin Energy (ASX:ORG) will report second quarter sales today and Mineral Resources (ASX:MIN) will release their quarterly result. 
• The oil price jumped again, trading 1.4% higher at US%73 a barrel. 
• Gold is also trading 1.1% higher, while iron ore is trading lower at US$213 per tonne. 

Trading Ideas:

• Bell Potter maintain their BUY recommendation on Mader Group (ASX:MAD) after they released a strong 4th quarter update. MAS closed yesterday at $0.97, implying 40.6% share price growth in a year.  
• Eagers Automotive (ASX:APE) is a Bell Potter BUY stock and Bell Potter have increased their price target to $18.75 (previously $17.50). The stock closed 2.7% higher yesterday, implying just over 14% share price growth in a year. 
• Bell Potter also maintain their BUY recommendation on Gold Road Resources (ASX:GOR), after the company released their June quarter results. They closed yesterday at $1.30, implying just over 34% share price growth in a year. 
• Bullish charting signals have been identified in Perseus Mining (ASX:PRU), De Grey Mining (ASX:DEG) and Ioneer (ASX:INR), according to Trading Central.

Overnight the S&P500 closed flat after the Fed kept its easy-money policies. The Dow Jones closed about 0.36% lower, while the Nasdaq closed up 0.7%. 

Following the mixed session on Wall Street, the Aussie share market is set to bounce back after yesterday’s fall of 0.7%, to open 0.3% higher to 7,301 points.

Stay tuned, later today we will be releasing a full report on Rio Tinto (ASX:RIO)’s results.

What to watch today:

• On the COVID-19 front, NSW Premier Gladys Berejiklian extended the stay-at-home orders for another four weeks until August 28. Amid the lockdown extension news, Webjet (ASX:WEB), Qantas (ASX:QAN), Sydney Airport (ASX:SYD) and Flight Centre (ASX:FLT) all closed lower yesterday. However, keep in mind, travel companies are likely to go into recovery once restrictions ease.
• Today, Q2 import and export prices are set to be released at 11:30am AEST.
• Companies reporting today: Janus Henderson Group (ASX:JHG) is set to report its second quarter 2021 earnings and Fortescue Metals (FMG) will report its fourth quarter financial year production. 
• Unibail-Rodamco-Westfield (ASX:URW) reported its half year results, which saw its net rental income dropped 26.2% compared with first half 2020 results. 
• The oil price lifted about 1% toward the US$73 a barrel mark, after US inventories declined. 
• The gold price lifted about 0.48%, shaking off initial declines following Powell flagging lingering risks to the US economy from the delta variant. 
• Silver is trading 1.17% higher, while copper was down 1.47%, and the iron ore price traded down about 0.3% to US$214. 

Trading ideas:

• After reporting a better-than-expected second quarter, Bell Potter has once again maintained its BUY recommendation on location-based technology company Life360 (ASX:360) and increased its price target to $9.50 (previously $9.25). Life360 closed 1% higher yesterday to $8.00, which implies about 19% share price growth. 
• Bell Potter also maintained its BUY recommendation on software company Nitro Software (ASX:NTO) with an increased price target of $4.00 (previously $3.75). Nitro closed about 5% lower yesterday to $3.27, which implies about 22% share price growth.
• Bullish charting signals have been identified in Raiz Invest (ASX:RZI), Tinybeans Group (ASX:TNY) and Sunrise Energy Metals (ASX:SRL) according to Trading Central.

The Aussie share market will likely open lower, with the futures suggesting a fall of 0.3%. 

What to watch today: 

• Inflation data will be released at 11:30am. The market expects consumer prices to grow 3.8% year on year. If inflation is higher than expected, further selling in the market may be seen today. 
• At the NSW press conference at 11am this morning, the Premier will likely announce an extension to Sydney’s lockdown. Stocks that will be impacted include Shopping Centres Australasia (ASX:SCP) and Vicinity Centres (ASX:VCX). Further selling is also expected in travel businesses, including Flight Centre (ASX:FLT) and Ingenia (ASX:INA). 
• Life360 (ASX:360) reported better than expected earnings results. 
• IGO (ASX:IGO) reported quarterly results with NPAT up 981% and free cashflow up 122%. 
• Rio Tinto (ASX:RIO) is due to report today after the market close. 
• The oil price holds around US$72 a barrel. The copper price continues to rise 0.4%, while the iron ore price fell slightly. 

Trading Ideas: 

• Ai-Media Technologies (ASX:AIM) is a Bell Potter BUY stock. It was upgraded with a new price target of $1.50, implying 63% share price growth in a year. 
• QBE Insurance (ASX:QBE), Ampol (ASX:ALD) and Chimeric Therapeutics (ASX:CHM) are all giving of bullish charting signals according to Trading Central. 

Yesterday, the Aussie share market reached its highest level of 7,418 points. 

Today the futures are suggesting the Aussie share market will lift 0.3% or 19 points. 

What to watch today: 

• Australia awaits news on Victoria, South Australia and NSW lockdown restrictions. 
• Virgin Money (ASX:VUK) are set to report their results today. 
• Temple and Webster (ASX:TPW) reported earnings results this morning. TPW’s full year revenue is up 85% and their earnings (EBITDA) are up 141% in the year.  
• Oil Search (ASX:OSH) have reported their quarterly results, with a 22% up in revenue. 
• Oz Minerals (ASX:OZL) have also reported quarterly results, with upgraded full year production. 
• The copper price surged over 4% to its highest level since June. The price was boosted by the news that China sold less reserves than expected. 
• The iron ore price fell 0.4%, while the oil price rose 0.4% to US$72.18. 

Trading Ideas: 

• Fresh milk company Synlait Milk (ASX:SM1) was reiterated as a Bell Potter BUY, with an increased price target of $4.40, implying 29% share price growth in a year. 
• Paladin (ASX:PDN), Neometals (ASX:NMT) and Redbubble (ASX:RBL) are all giving off bullish charting signals according to Trading Central. 

The Aussie share market is set to open higher, with the futures suggesting a 0.3% lift, taking the market to another record all time high. 

What to watch today: 

• In economic news, inflation data will be released on Wednesday. It is expected to show a 3.8% rise in inflation over the year in the last quarter. 
• The oil price lifted slightly to US$72, continuing to bounce back from last Monday’s fall. 
• The copper price rose 2.7%, while iron ore rose over 1%. Following these gains, BHP in New York lifted 1.1%, so it is expected that Australian listed commodity stocks will also do well today. 
• Mining and energy stocks given oil and iron ore rebounds. 

Trading Ideas: 

• Health club business Viva Leisure (ASX:VVA) was reiterated as a Citi BUY stock, with a slimmer $2.50 price target, implying 38% share price growth in a year. 
• BrainChip (ASX:BRN), Damstra (ASX:DTC) and FireFinch (ASX:FFX) are all giving off bullish charting signals according to Trading Central. 

The Aussie share market soared to a brand new record high this week (closing at 7,386 points on Thursday), before setting another record high on Friday. While Australia braces for further lockdowns, the US population continues to move more freely, and this has created two very different types of opportunities for investors.

In this week’s wrap, Jessica covers:

• (0:22) Lockdowns spelling good news for Healthcare & Consumer Staples
• (1:26) Why investors are picking Woolworths (ASX:WOW)
• (2:17) CIMIC (ASX:CIM) rising 10% as new work orders are above pre-pandemic levels
• (3:23) Medibank (ASX:MPL) benefitting as pay-outs drop while earnings rise
• (5:12) CSL (ASX:CSL) shares giving the market a shot in the arm
• (6:39) Next week's economic news that could shake up the market

Yesterday the Aussie share market closed at record high of 7,386 points after the market rose 1.1%. 

This morning, the futures are suggesting the market will fall 0.2%. 

What to watch today, 

• The iron ore price is down 2%, pulling back for the second session. Stocks such as BHP (ASX:BHP) and Fortescue Metals (ASX:FMG) are expected to pull back. 
• The oil price jumped 2% to US$71, helping energy stocks rebound from Monday’s sell off. 
• Copper is up 1.5%, while coal prices dipped for the second day, peeling back off its decade high. 
• The Services PMI Flash for July will be released today. The services sector was in growth territory prior to the lockdowns. 

Trading Ideas: 

• Zip (ASX:Z1P) is a Citi BUY with a $10.25 price target, implying 35% share price growth in a year. 
• Bell Potter has reiterated Cluey (ASX:CLU) as a Speculative BUY stock, with a $1.70 price target, implying 50% share price growth in a year. 
• Uniti Group (ASX:UWL) Adriatic Metals (ASX:ADT) and Alcidion (ASX:ALC) are all giving off bullish charting signals according to Trading Central.