Between the Bells

The ASX200 is eyeing a fall of 0.3% at the open following the market rising to its highest level in almost 12 months.

US equities charged for the third straight day, driven by better than expected company news and earnings results.

What to watch today:

• Investors will be weighing up that Victoria’s plan for the return to work to be at 75% capacity on Monday has been paused.
• Companies reporting: Nick Scali (ASX:NCK), Centuria Office REIT (ASX:COF) and Janus Henderson Group (ASX:JHG).
• Balance of trade (import and export) numbers for December will be released today at 11:30am.

Local trading ideas:

• Tech-air traffic control company, Adacel Technologies (ASX:ADA) was reiterated as a buy by Bell Potter, with a $1.15 target noting that there is a reasonable chance that Adacel will upgrade its FY21 guidance when it reports on the 18th of February. 
• Fortescue Metals (ASX:FMG) was upgraded from a hold to a buy by Credit Suisse with a $23.50 target.
• Premier Investment (ASX:PMV), Chesser Resources (ASX:CHZ) and Whisper (ASX:WSP) are giving off bullish charting signals according to Trading Central.

The ASX200 is eyeing a 0.9% gain at the open following Wall Street’s gains and the RBA pledging to keep rates on hold until 2024.

What to watch today:

• Companies reporting: Amcor (ASX:AMC) and BWP Trust (ASX:BWP).
• The government pledged $10 million to reopen a tungsten mine, so keep an eye on King Island Scheelite (ASX:KIS).
• RBA Governor Philip Lowe will speak about the year ahead at 12:30pm.

Local trading ideas:

• GR Engineering (ASX:GNG) was upgraded by Bell Potter with a $1.45 target.
• Following Centuria Industrial REIT’s (ASX:CIP) results being released, UBS maintained CIP as a buy. The highlight of the result was CIP renewed leases with Woolworths in NSW.
• Ava Risk Group (ASX:AVA), Southern Cross Media (ASX:SXL) and Charter Hall Social Infrastructure REIT (ASX:CQE) are giving off bullish charting signals according to Trading Central.

The ASX200 is eyeing a lift of 0.8% at the open.

The S&P500 and NASDAQ gained 1.6% and 2.6% respectively.

GameStop shares fell 32% after it gained 400% last week.

What to watch today:
- Commbank (ASX:CBA) reported a 0.2% increase in its mandatory capital following the sale of its life insurance business.
- The oil price gained 2.8% with Saudi’s supply cuts kicking in. Demand is also likely to rise as one of the worst snowstorms hit the northwest US.
- The RBA will meet for the first time this year with rates expected to hold at 0.1%.

Local trading ideas:
- Mesoblast (ASX:MSB) was reiterated as a speculative buy by Bell Potter with a $5.10 target, implying 102% growth from yesterday’s close.
- Healius (ASX:HLS) was upgraded by UBS from a sell to a buy with a price target of $4.40.

The Aussie market futures are suggesting we’re in for a negative start, a fall of 0.5%.

Over in the US, there was a buying frenzy in silver stocks, as Reddit investors took vengeance on the likes of JP Morgan who betted the price of silver would go down. Secondly, GameStop shares jumped 68% after Robinhood re-allowed buying in the stock. 

What to watch today:

• Perth has entered a five day lockdown, while Queensland opened its border to Sydney. 
  • So expect Woolworths (ASX:WOW), Coles (ASX:COL) and IGA Owner Metcash (ASX:MTS) to do well following the frenzy buying
  • And expect Dreamworld owner Ardent Leisure (ASX:ALG) to get a kick. 
• The Gold price rose 0.5%. But the real show stopper -  will be Silver, after its price jumped 2.5%.  Keep an eye on Silver Mines (ASX:SVL) +10%, Manuka Resources (ASX:MKR) +8%, Investigator Resources (ASX:IVR) +5% and in the large caps, South32 (ASX:S32) is seeing some early buy orders. 

• Nickel-cobalt company GME Resources (ASX:GME) as its shares have been rallying as traders were mistaking its shares for GameStop which has the same ticker in the US. 
• The PM will give his first speech outlining the Government’s strategy for 2021, including spending $1.9 billion in vaccine efforts.
• Home loan data is out for December.

Trading ideas:

• Media company, Access Innovation (ASX:AIM) was reiterated as Bell Potter buy with a $1.35 target. 
• Origin Energy (ASX:ORG) was ear marked as a UBS buy on its sales volumes increasing. UBS has a $6.65 target for ORG. It last traded at $4.74. 
• ReadCloud (ASX:RCL), Evolve Education (ASX:EVO) and Enero Group (ASX:EGG) are all giving off bullish charting signals according to Trading Central. 

With reporting season upon us, we share what you need to watch ahead of a company releasing their financial results. We know the signs are there that the Aussie economy has been strengthening and company earnings have started to pick up, but what's key to driving share price growth now?

In our reporting season preview, Jessica covers:

• (1:00) The expected 20% growth in broad market earnings
• (1:12) The stocks exposed to consumer spending
• (1:46) Seven key mining stocks set to benefit
• (2:32) Two banking stocks worth keeping an eye on
• (2:59) Sectors set to gain and lose from the working from home shift
• (3:26) Why Cochlear (ASX:COH) and Fisher & Paykel (ASX:FPH) may miss expectations

The ASX200 is eyeing a lift of 1.1% at the open.

GameStop (NYSE:GME), the centre of a Reddit-user buying frenzy, saw its shares fall 44% after Robinhood and Interactive Brokers placed restrictions on trades.

What to watch today:

• The iron ore price fell 0.4% overnight and oil stocks could come under pressure as the oil price fell 1.2%.
• Fortescue Metals (ASX:FMG), Galaxy Resources (ASX:GXY) and IOOF (ASX:IFL) report quarterly production today.

Local trading ideas:

• Car dealership business, Eagers Automotive (ASX:APE) was upgraded to a buy by Bell Potter, with a $15.50 price target as its earnings are growing more than expected  and are likely to continue.
• Genetic Signatures (ASX:GSS) was reiterated as a Bell Potter speculative buy, with a slimmer $3.20 target.
• Yancoal Australia (ASX:YAL), Platinum Asset Management (ASX:PTM) and 5G Network (ASX:5GN) are giving off bullish charting signals according to Trading Central.

The Aussie share market is set to open 1.09% lower to 6,631 following a volatile trading session overnight on Wall Street. This volatile session saw the Volatility Index (VIX) surge more than 50% to top $34, its highest level since November.

Apple reported its first-quarter earnings report for fiscal 2021, crossing the symbolic $100 billion mark in a single quarter with sales up 21% year-on-year.

As expected, the US Fed Reserve made no changes to its monthly bond purchases, keeping the interest rates near zero.

What to watch today:

• The oil price jumped up 0.5% to US$52.85 per barrel. This comes as a massive drawdown in US crude inventories countered persistent concerns about the pandemic continuing to hurt fuel demand. 
• The gold price dropped to a 1-week low following concerns over the US stimulus bill and strength in the dollar after the Fed kept interest rates near zero.

Local trading Ideas:

• Bell Potter has a buy rating on Telecommunication Services company, Uniti Group (ASX:UWL) and has increased its price target by 10% to $2.20. 
• Healthcare equipment and services company, Doctor Care Anywhere (ASX:DOC) is also a Bell Potter buy. DOC closed yesterday at $1.38 and Bell Potter’s price target for the stock sits at $1.95. 
• People Infrastructure (ASX:PPE), Vita Group (ASX:VTG) and Platinum Asset Management (ASX:PTM) are all giving off bullish charting signals according to Trading Central.

The Aussie share market looks set to open in the red this morning, down about 0.32%. This comes following Wall Street’s struggle to find direction for three main reasons:

1) Key earnings, 2) the Federal Reserve’s policy meeting and 3) concerns about more US stimulus.

COVID-19 cases have topped more than 100 million cases worldwide in just about 13 months as mutations add to the spread.

What to watch today:

• NAB Business Confidence and Westpac leading index figures for December are both out at 11:30am.
• The oil price slid 0.3% to US$52.61 following COVID-19 cases continuing to rise globally, and amid reports of a blast in Saudi Arabia. Given this, keep an eye on energy producers like Beach Energy (ASX:BPT) and Santos (ASX:STO) today.
• The gold price softened on concerns over a fresh US COVID-19 aid package. The slightly weaker dollar limited losses. The gold price fell about 0.25% to US$1,850. So, keep an eye on Newcrest Mining (ASX:NCM) and Saracen Mineral (ASX:SAR).

Local trading ideas:

• Leading mining services company, Mineral Resources (ASX:MIN) has a buy rating by Bell Potter, with an increased price target of 57% to $44.40 (previously $28.50). This comes as the strength of the iron ore price currently shows no sign of abating.
• Gold producer, Gold Road Resources (ASX:GOR) also has a buy rating by Bell Potter, with an increased price target of about 3% to $2. Bell Potter believes the company is back on track with a better fourth quarter 2020 expected.
• Race Oncology (ASX:RAC), Azure Minerals (ASX:AZS) and GDI Property Group (ASX:GDI) are all giving off bullish charting signals according to Trading Central.

Positive sentiment stepped up a notch with the Aussie share market hitting a new 11-month high after rising 1.6% (Mon-Thu). And the good news isn't just local. With the electoral dust settling in the US, and China's economy continuing to grow, the Aussie market looks set to sprout new green shoots. 

In this week’s wrap, Jessica covers:
- (1:40) The unemployment rate falling after 50K jobs were added
- (2:32) Afterpay (ASX:APT) becoming the 12th biggest company in Oz
- (3:03) Zip (ASX:Z1P) shares up 31%; its biggest rise in over 20-weeks
- (3:35) The battle for Buy Now Pay Later supremacy
- (5:20) New home sales hitting 20-year highs: which stocks could benefit?

The ASX200 is eyeing a fall of 0.3% at the open.

A day under US President Biden’s leadership and he’s kicked the focus to renewable energy, by re-joining the Paris Climate agreement and re-engaging with the World Health Organisation.  

What to watch today:
- Energy stocks could see another pull back today after the oil price fell 0.5% with Biden planning to roll back oil and gas infrastructure projects. 
- The Federal and South Australian Government announced SA will receive a $45 million handout to expand its recycling infrastructure.
- Keep an eye on travel stocks like Flight Centre (ASX:FLT) and Webjet (ASX:WEB) as Emirates will resume flights on Monday to Sydney, Melbourne and Brisbane.
- Preliminary retail sales data is out today and is expected to show sales cooled in December after November sales grew 7.1%, which was the biggest jump in sales in six months.

Local trading ideas:
- Cluey (ASX:CLU) was given a speculative buy rating by Bell Potter.
- Coronado Global Resources (ASX:CRN) was upgraded by Bell Potter with a new $1.55 target.
- BetMakers Technology (ASX:BET), Bellevue Gold (ASX:BGL) & Trek Metals (ASX:TKM) are giving off bullish charting signals according to Trading Central.