Between the Bells

The ASX200 is eyeing a fall of 0.2% at the open following last week’s 0.5% gain.

With economic growth data in the spotlight in the US, UK and in Australia, we will learn how we splurged on retail sales in November.

Today all eyes will be on the increased restrictions in NSW, with some thinking restrictions will tighten again before Christmas. Investors will also be weighing up that a US stimulus deal has not yet been agreed upon and that the US could soon have another vaccine in circulation, as the FDA approved Moderna’s vaccine as being ‘safe and effective’.

What to watch today:

• Potential selling in travel and tourism stocks. All eyes will be on Webjet (ASX:WEB), Qantas (ASX:QAN) and Sydney Airport (ASX:SYD).
• As people spend more time at home and stock up for Christmas, keep an eye on Woolworths (ASX:WOW) and Coles (ASX:COL).
• All eyes will be on healthcare stocks as COVID-19 resurges in NSW like Blackmores (ASX:BKL), Fisher & Paykel (ASX:FPH) and Ansell (ASX:ANN).

Local trading ideas:

• Respiratory mask company CleanSpace (ASX:CSX) is a Bell Potter buy and was given a new $7.65 target. That implies 18% upside in a year as CleanSpace upgraded its earnings guidance for the second time this year.
• UBS called Mineral Resources (ASX:MIN) a buy for the first time, giving the mining services business a $41.90 price target.
• Citi increased Bapcor’s (ASX:BAP) price target to $8.85 and reiterated its buy rating.
• Tabcorp (ASX:TAH), Vita Life Sciences (ASX:VLS) and Elders (ASX:ELD) are all showing bullish charting signals according to Trading Central.

The market has gained 1% this year... not a bad result considering it experienced its quickest fall into a bear market in history. With the recovery now in full swing, and earnings upgrades coming through, there's plenty riding on a strong 2021 for the economy and share market.

In this week’s wrap, Jessica covers: 
- (0:17) A resilient Aussie share market
- (0:42) How the Tech sector blew the market out of the water
- (1:37) Three key trends among 2020's standout stocks
- (3:29) How to approach buying oil stocks
- (3:58) Where the market could go from here
- (5:47) Bell Potter's top 14 stocks to watch

The ASX200 is eyeing a flat open.

U.S. investors looked past weaker than expected economic news overnight with unemployment claims rising more than expected, and instead focused on a potential rescue package being agreed on before the end of the year.

Congressional leaders have said they’re close to agreeing on a $900 billion stimulus deal that includes direct payments to individuals.

Copper rose 1.2% to its highest level since February 2013. What’s key is that iron ore, nickel and copper are likely to move higher given rising Chinese demand and fiscal stimulus in China.

What to watch today:

• Sydney Airport (ASX:SYD) reports traffic numbers. Auckland International Airport (ASX:AIA) reported domestic travel in NZ is now at 90% of pre-COVID-19 levels. 
• NAB (ASX:NAB), Incitec Pivot (ASX:IPL) and Nufarm (ASX:NUF) hold their AGMs today.

Local trading ideas:

• Bapcor (ASX:BAP) was upgraded by Citi following its market update yesterday. BAP was maintained as a buy with an increased target of $8.85. Citi expects FY21 profits to be $115 million, which would be 4.5% growth from last year. 
• Doctor Care Anywhere (ASX:DOC) was initiated as a Bell Potter buy with a $1.95 price target. 
• Codan (ASX:CDA), Nick Scali (ASX:NCK) and Netwealth (ASX:NWL) are all showing bullish charting signals according to Trading Central.

The ASX200 is eyeing a lift of 0.5% at the open.

U.S. stocks rose to new record highs overnight after the U.S. central bank upgraded its outlook for the American economy next year. The Federal Reserve now expects growth of 4.2% next year and for the unemployment rate to drop to 5%. The Fed also committed to buying $120 billion in bonds each month until full employment is reached.

What to watch today:

• Elders (ASX:ELD) holds its AGM today. 
• The mid-year economic and fiscal outlook is set to be released today.

Local trading ideas:

• Pacific Smiles (ASX:PSQ) was reiterated as a Bell Potter hold with a $2.65 price target, while Morgan Stanley upgraded PSQ to a buy with a $3.00 price target.
• Perseus Mining (ASX:PRU), Centuria Capital (ASX:CNI) and MoneyMe (ASX:MME) are all showing bullish charting signals according to Trading Central.

The ASX200 is eyeing a lift of 0.7% at the open following Wall Street’s lead overnight.

The FDA announced Moderna’s COVID-19 vaccine met expectations for emergency use, which is a crucial step before full approval. If the FDA approves the vaccine, it will be the second vaccine approved for use in the U.S..

What to watch today:

• Afterpay (ASX:APT) and Xero (ASX:XRO) could likely see an increase in buying from December 21 as they will be added to the ASX50.
• Kogan.com (ASX:KGN) will be added to the ASX200 on December 21.
• Auckland International Airport (ASX:AIA) is set to report traffic numbers today.
• ANZ (ASX:ANZ) holds its AGM today.

Local trading ideas:

• ANZ (ASX:ANZ) was reiterated as a Citi buy with a $23.75 price target. 
• Downer EDI (ASX:DOW) was reiterated as a UBS buy with a $6.30 price target. Downer is selling its WA Open Cut Mining business for $205m. 
• RTG Mining (ASX:RTG), Colins Foods (ASX:CKF) and Netwealth (ASX:NWL) are all showing bullish charting signals according to Trading Central.

The ASX200 is eyeing a fall of 0.2% at the open following Wall Street’s fall overnight.

Tougher social distancing measures have been introduced in some parts of the U.S. with New York on the verge of a ‘full shutdown’.

Oil rose to a 9-month high to US$47, while Iron, Copper and Gold all fell overnight.

What to watch today:

• Chinese state media confirmed Beijing has blocked Australian coal imports, so keep an eye on coal mining companies like Whitehaven Coal (ASX:WHC), Stanmore Coal (ASX:SMR) and TerraCom (ASX:TER).

Local trading ideas:

• Access Innovation (ASX:AIM) was upgraded as a Bell Potter buy with a new $1.35 price target, implying 33% upside in a year from yesterday’s close.
• GR Engineering (ASX:GNG) was initiated as a Bell Potter buy with a $1.30 price target, implying 18% upside in a year from yesterday’s close. GR Engineering is leveraged to increase mining activity and Bell Potter forecasts it could make $299m in revenue, which would be a record result.
• BCI Minerals (ASX:BCI) was upgraded as a Bell Potter buy with a new $0.43 price target, implying 54% upside in a year from yesterday’s close. The Commonwealth Government’s Infrastructure Facility (NAIF) Board provided a $450m 15-year loan facility for its Salt & Potash Project in the Pilbara. What’s interesting is the existing salt solar evaporation projects owned by Rio Tinto nearby have been operating successfully there for almost fifty years, producing high quality salt for chemical and other industries.
• Vita Group (ASX:VTG), Mastermyne Group (ASX:MYE) and Gascoyne Resources (ASX:GCY) are all showing bullish charting signals according to Trading Central.

The ASX200 is eyeing a flat open to start the week.

Restrictions are easing in South Australia and Queensland has opened its borders.

What to watch today:

• The market could see a rise for the seventh week, with consumer spending, local tourism, food and beverage stocks to see a jump in sales as we get closer to Christmas.
• All eyes on Flight Centre (ASX:FLT) as a court trial kicks off today. Flight Centre is being accused of underpaying a handful of workers for over 13 years. FLT is a Morgan Stanley, UBS and Bell Potter buy.

What to watch this week:

• The Mid-Year Economic and Fiscal Outlook (MYEFO) is set to be released later this week. It is expected to show a stronger bottom line than October’s budget thanks to the rally of the iron ore price, while spending is expected to drop due to the JobKeeper payments.

Local trading ideas:

• Austal (ASX:ASB) was reiterated as a Citi buy with a $4.30 price target. Given the U.S., Australia, the Philippines and governments may look to stimulate economies through ship building programs, ASB’s revenues could rise.
• Asaleo (ASX:AHY) was reiterated as a Citi buy after it received a takeover offer.
• McPherson’s (ASX:MCP), Ava Risk Group (ASX:AVA) and Audio Pixels Holdings (ASX:AKP) are all showing bullish charting signals according to Trading Central.

The bull market stepped up a notch this week and hit a ten-month high on Wednesday after rising for seven straight days. The U.S. and Canada approved the Pfizer/BioNTech COVID-19 vaccine for use, and it appears the world economic shocks of the pandemic could soon be left in the dust...

In this week’s wrap, Jessica covers:

• (0:23) The event on everyone's mind: the end of COVID-19
• (1:10) The three standout stocks this week
• (3:06) Themes to watch and consumer confidence
• (3:46) Why you should keep an eye on Sydney Airport (ASX:SYD)
• (5:07) The positive RBA changes to the Buy Now Pay Later market 

The ASX200 is eyeing a fall of 0.5% at the open.

CSL and the University of Queensland have abandoned their COVID-19 vaccine trial, as the risk of failure was too high.

House Speaker Nancy Pelosi said bipartisan negotiations were leading to “great progress”, but both sides were still debating over a liability waiver for businesses, leading to no progress on new U.S. stimulus.

U.S. unemployment claims rose more than expected last week, with jobless claims jumping to 800,000, the highest level since October.

The Iron price jumped to US$151 per tonne after rising 3%, collectively gaining 63% this year.

What to watch today:

• Expect CSL (ASX:CSL) to see a pull back today and to fall under $300. Keep in mind the potential COVID-19 vaccine was not a revenue stream for the business as they are the biggest blood therapy business in the world, and number two in flu shots. Once restrictions ease, blood plasma collections are expected to pick up again, hence why UBS has a $346 price target for CSL and Credit Suisse targets $325.
• Pendal (ASX:PDL) and Westpac (ASX:WBC) will hold their AGMs today.

Local trading ideas:

• Baby Bunting (ASX:BBN) was reiterated as a Citi buy with a $5.48 price target.
• Beach Energy (ASX:BPT) was initiated as a Bell Potter buy with a $2.29 target, implying 24% upside in a year from yesterday’s close.
• NEXTDC (ASX:NXT), Breville (ASX:BRG) and Enero Group (ASX:EGG) are all showing bullish charting signals according to Trading Central.

The ASX200 is eyeing a fall of 0.4% at the open after rising for 7-straight days.

Pfizer and BioNTech’s vaccine continues to gain traction as Canada becomes the second country to approve the vaccine and will begin its rollout next week.

The iron ore price is up 60% the year after gaining 0.9% overnight.

Trading ideas:

• Tech-air traffic control company Adacel Technologies (ASX:ADA) was upgraded by Bell Potter, reiterating ADA as a buy with an increased $1.15 price target.
• Bell Potter upgraded JB Hi-Fi (ASX:JBH) from a sell to a hold with an increased $43.65 price target.
• Cann Group (ASX:CAN), RTG Mining (ASX:RTG) and Kogan.com (ASX:KGN) are all showing short-term bullish charting signals according to Trading Central.