Between the Bells

The tech heavy was Nasdaq down around 1%, after tech stocks came under pressure following President Joe Biden proposing a minimum corporate tax rate of 15%, which would lift the overall tax rate to 28%. This saw Tesla shares fall 5.3%. 

Despite all three US benchmarks closing lower, the Aussie share market is set to open higher, with the futures suggesting the market will rise 0.03% to 7,265 points.

What to watch today:

• Prime Minister Scott Morrison has announced a Natural Disaster Payment scheme that will be applied to lockdowns that have lasted longer than 7 days. 
• Moving to commodities, the Oil price holds steady around US$69 a barrel, after two straight days of gains. The Gold price retreated around 2%. Silver and Platinum slipped around 4% each. While the Iron Ore price continues to trade higher, rising about 1.5% and is up about 33% YTD.
• The most traded stocks by Bell Direct clients yesterday were Australia and New Zealand Bank (ASX:ANZ), National Australia Bank (ASX:NAB) and VanEck Vectors Australian Property ETF (ASX:MVA). 

Trading ideas:

• Bell Potter have reiterated their BUY recommendation for Access Innovation (ASX:AIM), with an unchanged price target at $1.40. AIM announced a 3-year extension of their live captioning contract with Sky News and Bell Potter’s optimistic view on is based on its ability to monetise its industry leading platform.
• Bell Potter have downgraded their recommendation on Telecommunication Services business Uniti Group (ASX:UWL) from a BUY to a HOLD, with an increased price target to $3.20.  
• SmartPay Holdings (ASX:SMP), Lendlease Group (ASX:LLC) and Afterpay (ASX:APT) are all giving off bullish charting signals, according to Trading Central. 

Yesterday, the ASX200 closed at a new record high for the first time in history, at a 1.1% gain. 

Overnight, all three US indices moved up modestly by 0.1%. 

This morning the Aussie share market is set to reach a brand new record high, with the futures suggesting the market will rise 0.2%. 

What to watch today: 

• In economic news, Retail Trade Data is out today for April.  
• Balance of Trade data set to be released 11:30am AEST. 
• The Oil price moved over its two- year high to US$68.77 a barrel. 
• The Iron Ore price rose 3%, trading at $207.50 a tonne. 
• The Gold price rose modestly to US$1,911.

Trading Ideas: 

• Worley (ASX:WOR) is a Citi BUY with a $12.60 price target, and Macquarie has a BUY on the stock, with a $12.00 price target. 
• Superloop (ASX:SLC), Charter Hall Group (ASX:CHC), and FYI Resources (ASX:FYI) are all giving off bullish charting signals, according to Trading Central 

The Aussie share market is set to open higher, with the futures suggesting the market will rise 0.2%. 

What to watch today: 

• The 15 day moving average has just nudged above the 30 day moving average. This indicates a technical uptrend is forming. But, as the moving averages lines are virtually on top of each other, the market could go either way from here. 
• In economic news, GDP data will be released today. 
• The RBA forecasts GDP for the full year to be 4.75%. Banks expect unemployment to fall to 5% this year. Bond yields will likely rise. 
• Iron ore price rose 4.1%, heading back to its all time high. Watch Mineral Resources (ASX:MIN). 
• Most traded stocks by Bell Direct clients yesterday: Fortescue Metals (ASX:FMG) & Magnetite Mines (ASX:MGT).

Trading Ideas: 

• GenusPlus Group (ASX:GNP) had its price target upgraded by Bell Potter, with a new $1.25 target, following yesterday’s 6% jump.
• BUBs Australia (ASX:BUB), Ava Risk Group (ASX:AVA) Atomos (ASX:AMS) are all giving off bullish charting signals according to Trading Central. 

Aussie equities managed to extend their monthly run of gains to 8 months in May. That’s the longest stretch in 14 years, despite yesterday’s slight dip given Melbourne’s COVID-19 outbreak spread, as well as Nuix (ASX:NXL) shares tumbling 17.8%. 

The Aussie share market looks set to open 0.43% lower, amid a lack of direction from overseas, with both the US and UK markets closed for holidays.

Watch to watch today:

• The RBA holds its monthly interest rates decision meeting with rates expected to hold at 0.1%. 
• The Oil price rose on Monday, with the WTI crude trading around US$67 a barrel, boosted by prospects of strong fuel demand in Europe and China. Investors now anticipate the OPEC meeting this week for supply guidance. 
• The Gold price continues to hold firm above the key US$1,900-level. 
• The Iron Ore price bounced in line with Chinese steel prices. 
• The most traded stocks by Bell Direct clients yesterday: Computershare (ASX:CPU), PPK Group  (ASX:PPK) and Andromeda (ASX:ADN). And the most traded stocks by our advised clients were Healius (ASX:HLS), Betmakers Technology Group (ASX:BET) and Coles (ASX:COL).

Trading Ideas:

• Bell Potter have reiterated their BUY recommendation for the second largest private provider of death services in Australia and New Zealand, Propel Funeral Partners (ASX:PFP) with an increased price target of $4.15 (previously $3.50). Yesterday, PFP closed 8.5% higher to $3.70, which implies about 12% share price growth. 
• Bell Potter has also maintained their BUY recommendation for technology hardware and equipment business, EROAD (ASX:ERD), with an increased price target of $6.05 (previously $5.62).  
• Genex Power (ASX:GNX), Novatti Group (ASX:NOV) and Access Innovation Holdings (ASX:AIM) are all giving off bullish charting signals according to Trading Central.  

The Aussie share market hit a record high last Friday closing at 7,179 points, beating the record set back in February 2020. 

Today, the Aussie share market is set to follow Wall Street’s lead with the futures suggesting the market will lift 0.08% to 7,181. Melbourne’s virus outbreak could cast a shadow however. 

What to watch:

• Economic news out this week: RBA meeting tomorrow, economic growth for the quarter will be released on Wednesday and on Thursday the balance of trade, that’s Australian imports vs. exports data is out for April. 
• The most traded stocks by Bell Direct clients last Friday were: TechnologyOne (ASX:TNE), Imugene (ASX:IMU) and Rio Tinto (ASX:RIO).
• Oil prices fell slightly on Friday, but closed higher for the week following strong US economic data and expectations of a demand rebound.
• The Gold price rose 0.38%, popping above US$1,900 per ounce. This comes as US consumer prices surged in April and boosted its appeal as an inflation hedge.  

Trading ideas:

• Bell Potter have reiterated their BUY recommendation on funeral homes and cemetery operator InvoCare (ASX:IVC) with a reduced price target of $12.20 (previously $12.80). IVC closed about 3% higher on Friday to $10.55, which implies 16% share price growth. 
• Bell Potter has maintained their BUY recommendation on integrated poultry producer Ingham’s Group (ASX:ING), with a price target of $4.30. 
• Kina Securities (ASX:KSL), Premier Investments (ASX:PMV) and Brainchip (ASX:BRN) are all giving off bullish charting signals according to Trading Central.  

The Aussie share market defied the odds this month, rising 1% so far. Lithium stocks are back in full focus, as governments draw new environmental battle lines, and key car manufacturers like VW, GM, BMW and Tesla scale up electric vehicle (EV) operations.
 
 In this week’s wrap, Jessica covers:  

• (0:33) What we can expect for June based on historical trends
• (1:05) Investors buying the Tech stock dip
• (1:32) What's behind the rise of Pilbara Minerals (ASX:PLS) & Galaxy Resources (ASX:GXY)
• (3:36) Why governments are pushing EVs
• (4:29) A lithium battery ETF that's up 80% year on year
• (5:33) The huge economic news week ahead 

US equities advanced overnight following better than expected jobs data. 

Yesterday, the major miners pushed the Aussie share market higher, managing to close with a gain, amid Victoria going back into a snap 7-day lockdown. 

Today following the US overnight, the Aussie share market is set to open higher this morning, with the futures suggesting the market will rise 0.82% to 7,148 points. 

What to watch today:

• AGMs will be held today for Appen (ASX:APX), InvoCare (ASX:IVC), and Electro Optic Systems (ASX:EOS). 
• Select Harvest (ASX:SHV) are set to report their half year results today.
• Keep an eye on Qantas (ASX:QAN) as the company continues to back the vaccine rollout. They are considering offering frequent flyer points and travel vouchers as an incentive to get the COVID-19 vaccine. 
• Domino’s Pizza (ASX:DMP) major competitor Pizza Hut owner Yum! Brands, has made a deal to buy Dragontail Systems for $94 million. This could potentially end DMP’s relationship with the tech company, with Domino’s shares falling 4.9% yesterday.
• The Oil price is up 1.47%, so energy producers could end the week higher. Gold is up 0.02% and Copper is up 3.02%. The Iron Ore price has eased slightly from its record high this month, down 0.25%.

Trading ideas:

• Bell Potter have reiterated their BUY recommendation on Costa Group Holdings (ASX:CGC) with a $4.60 price target, previously at $5.10. 
• Bell Potter have also reiterated their BUY recommendation on Volpara Health Technology (ASX:VHT), with an unchanged price target of $1.80.  
• Intega Group (ASX:ITG), Mader Group (ASX:MAD) and Bionomics (ASX:BNO) are all giving off bullish charting signals according to Trading Central. 

All three US benchmarks rose slightly overnight following US shares linked to the economic reopening lifting. 

The Aussie share market is set to follow Wall Street’s lead with the futures suggesting the market will lift 0.04% to 7,093.  

What to watch:

• Private Capital Expenditure data will be released today at 11:30am. 
• Fisher & Paykel Healthcare (ASX:FPH) released its full year results this morning with net profit up 82%. 
• AGMs today include Spark Infrastructure (ASX:SKI), Costa Group Holdings (ASX:CGC), Coronado Global Resources (ASX:CRN). 
• The most traded stocks by Bell Direct clients yesterday were PPK Group (ASX:PPK), Kogan (ASX:KGN) and Imugene (ASX:IMU). 
• The Oil price lifted slightly, about 0.05% off the back of stronger demand outlook as US inventories fell, while the Gold price eased below US$1,900 following a rebounding dollar and US Treasury Yields dimming its appeal. And Silver is trading down 1%.

Trading ideas:

• Bell Potter have maintained their BUY recommendation on media company, IVE Group (ASX:IGL), with a price target of $1.70. 
• Bell Potter have also maintained their BUY recommendation on intellectual property company QANTM IP (ASX:QIP) with a price target of $1.55, implying about 44% share price growth. 
• Adairs (ASX:ADH), Hazer Group (ASX:HZR) and Noxopharm (ASX:NOX) are all giving off bullish charting signals according to Trading Central.  

The Aussie share market is set to open lower, with the futures suggesting a 0.5% fall. 

What to watch today: 

• The iron ore price fell from US$217 to US$200. Watch Fortescue Metals (ASX:FMG), Mineral Resources (ASX:MIN) and Magnetite Mines (ASX:MGT). 
• Whitefield Areas (ASX:WHF) goes ex- dividend today. 
• Aristocrat Leisure (ASX:ALL) and CSL Limited (ASX:CSL) set to go ex- dividend on Friday.
• BrainChip Inc (ASX:BRN) and Viva Energy Group (ASX:VEA) to hold their AGMs today.  
• The most traded stocks by Bell Direct clients yesterday: Link (ASX:LNK), Premier Investment (ASX:PMV) and Appen (ASX:APX). The most traded stocks by advised clients yesterday: Western Areas (ASX:WSA), Link (ASX:LNK) and Premier Investments Ltd (ASX:PMV).

Trading Ideas: 

• Bell Potter have reiterated their Speculative Buy recommendation on Aroa Biosurgery (ASX:ARX), with a $2.00 price target. 
• Super Retail Group (ASX:SUL), Bendigo and Adelaide Bank (ASX:BEN) and Deep Yellow (ASX:DYL) 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 rise of 0.3%. 

What to watch toady: 

• Tech stocks are expected to rise for the 4th day, continuing on an uptrend. Watch Afterpay (ASX:APT).
• Copper price rose 1%.
• Coal stocks are back in focus, as the coal price is at a 3 year high. 
• Amcor (ASX:AMC) to go ex- dividend. 
• Technology One (ASX:TNE) set to report company results today.
• Most traded stocks by Bell Direct clients yesterday: Fortescue Metals Group (ASX:FMG), Kogan (ASX:KGN), and Commonwealth Bank (ASX:CBA). And the most traded stocks by our advised clients: CLS Limited (ASX:CLS), Magellan Global Fund (ASX:MGF) and Betashares Legg Mason Australian Bond (ASX:BNDS).

Trading Ideas: 

• Synlait Milk (ASX:SM1) was reiterated as a Bell Potter Buy with a $3.85 price target. 
• Healthia (ASX:HLA), Nick Scali (ASX:NCK) and Eclipx Group (ASX:EXC) are all giving off bullish charting signals according to Trading Central.