Between the Bells

The ASX200 is eyeing a 0.2% fall at the open.

Wall Street was closed overnight as it’s thanksgiving in the U.S..

The European Central Bank (ECB) warned that European banks won’t see profits return to pre-COVID-19 levels until after 2022.

What to watch today:

• About 80 Australian coal carrying ships holding around $1.1 billion of coal are being held up at Chinese ports. So keep an eye on stocks like Whitehaven Coal (ASX:WHC), New Hope (ASX:NHC), Washington H Soul Patts (ASX:SOL) and Stanmore Coal (ASX:SMR).
• Australian Finance Group (ASX:AFG), Money3 Corporation (ASX:MNY) and Omni Bridgeway (ASX:OBL) hold their AGMs today. 

Local trading ideas:

• Bell Potter upgraded one of Australia’s largest scaffolding companies, Acrow Formwork & Construction Services (ASX:ACF), to a Buy with a new $0.40 price target, implying 10% upside in a year.
• Tissue regeneration company Aroa Biosurgery (ASX:ARX) was reiterated as a Speculative Buy by Bell Potter with a $2.00 target, implying 59% upside in a year.
• UBS upgraded Galaxy Resources (ASX:GXY) on the improving lithium market.
• Syrah Resources (ASX:SYR) was upgraded by UBS to a Buy on the graphite market reaching a turning point.
• Oz Minerals (ASX:OZL), Arena REIT (ASX:ARF) and Saracen Mineral Holdings (ASX:SAR) are all showing bullish charting signals according to Trading Central.

The ASX200 is eyeing a fall of 0.1% at the open following a mixed close on Wall Street overnight.

The U.S. central bank released minutes from its meeting highlighting how it can provide more support for the U.S. economy throughout the pandemic.

Commodities continued their rally as three vaccines are around the corner.

What to watch today:

• Yesterday the market turned positive for 2020 and was up 0.2% for the year, meaning the ASX200 erased most of the COVID-19 losses. If the ASX200 gains 7%, it will be back in record all-time high territory.
• Ainsworth Game Technology (ASX:AGI), Hansen Technologies (ASX:HSN), WiseTech (ASX:WTC), HUB24 (ASX:HUB), Monash IVF (ASX:MVF), NRW Holdings (ASX:NWH) and Qube (ASX:QUB) hold their AGMs. 

Local trading ideas:

• Bell Potter upgraded the Buy ratings and price targets for Pendal (ASX:PDL) with a new  $8.90 target, Perpetual (ASX:PPT) with a new $45.40 target and Challenger (ASX:CGF) with a new $6.60 target.
• Overnight, Citi reiterated Harvey Norman (ASX:HVN) as a Buy with a $5.20 target, implying 14% upside in a year. Citi expects Black Friday and Christmas sales to be strong and forecasts sales growth of 15% from now to the Boxing Day period.
• CSR (ASX:CSR), Ava Risk Group (ASX:AVA) and Emeco Holdings (ASX:EHL) are all showing bullish charting signals according to Trading Central.

The ASX200 is eyeing a lift of 0.6% at the open.

Oil gained 4% rising over US$45 for the first time since the pandemic hit in March.

What to watch today:

• Fisher & Paykel Healthcare (ASX:FPH) reports results today.
• Fletcher Building (ASX:FBU), Harvey Norman (ASX:HVN), IOOF (ASX:IFL), Kathmandu (ASX:KMD), Pro Medicus (ASX:PME), Shopping Centres Australia (ASX:SCP) and Synlait Milk (ASX:SML) hold their AGMs today.
• Construction numbers for the quarter are likely to remain negative with the market expecting a drop of 2%.

Local trading ideas:

• Financial software provider Praemium (ASX:PPS), was upgraded as a Bell Potter Buy with an increased target of $0.90, implying 36% upside in a year. 
• Online learning and exam platform, Janison Education (ASX:JAN), was upgraded by Bell Potter to a Buy from a hold with a $0.45 price target, implying 20% upside in a year. Bell Potter says the company is well placed to deliver strong growth over the next 6-12 months. 
• Nick Scali (ASX:NCK), Liontown Resources (ASX:LTR) and Challenger (ASX:CGF) are all showing bullish charting signals according to Trading Central.

The ASX200 is eyeing a rise of 0.6% at the open. If it does rise at the open, it is likely to set another 9-month high.

AstraZeneca and Oxford University’s COVID-19 vaccines was deemed 70% effective. This 70% rose to 90% when patients received a half dose followed by a full dose of the vaccine. CSL began producing 30 million doses of the vaccine a few weeks ago.

President-elect Joe Biden earmarked former Federal Reserve Chair Janet Yellen as Treasury secretary. When she led the Fed from 2014 to 2018, rates were low and the S&P500 gained 60%.

What to watch today:

• Keep an eye on Energy stocks today: UBS has Buy ratings on Origin Energy (ASX:ORG), Santos (ASX:STO), Woodside (ASX:WPL) and Worley Parsons (ASX:WOR).
• National Storage REIT (ASX:NSR) and TechnologyOne (ASX:TNE) report results today.
• Brickworks (ASX:BKW), Bravura Solutions (ASX:BVS), Mesoblast (ASX:MSB), Nanosonics (ASX:NAN) and Ramsay Health Care (ASX:RHC) hold their AGMs today.
• RBA Deputy Governor will speak on monetary policy, he is expected to unveil how much bond buying the bank has been doing. 

Local trading ideas:

• Emergency services construction company, Johns Lyng Group (ASX:JLG) was upgraded as a Bell Potter Buy with an increased target of $3.60, implying 15% upside in a year.
• Buy now pay later new entrant, Laybuy Group Holdings (ASX:LBY), was reiterated as a Bell Potter Buy with a $3.00 price target, implying 120% upside in a year. Bell Potter says LBY is a stock to watch as it continues to fly under the radar, despite increasing its merchant value by over 160% in a year, reducing its bad debts and increasing its transaction margin from -0.6% to 1.7%.
• Whisper (ASX:WSP), Enero Group (ASX:EGG) and Harris Technology (ASX:HT8) are all showing bullish charting signals according to Trading Central.

The ASX200 is set to gain 0.4% at the open.

The NSW and Victorian border is open after 138 days of being closed.

COVID-19 cases are continuing to rise in the U.S., up 24% last week. This saw JP Morgan downgrade the U.S. first quarter 2021 economic growth to be -1%.

In New York, BHP and Rio gained about 1% each so it’s likely to be a positive day for some locally listed commodity stocks.

What to watch today:

• Bubs Australia (ASX:BUB) holds its AGM today.
• Amcor (ASX:AMC) and Elders (ASX:ELD) go ex-dividend today.
• Economic news this week: Manufacturing data is out today, RBA Governor speaks tomorrow and construction numbers are out Wednesday. Around the globe this week, both U.S. and European banks will release their most recent meeting minutes. 

Local trading ideas:

• AMA Group (ASX:AMA) was reiterated as a Bell Potter Buy with an increased target of $1.00, implying 33% upside in a year.
• Footwear business that owns Athlete’s foot, Accent Group (ASX:AX1), was upgraded by Bell Potter, increasing its Buy rating and target to $2.15, implying 13% upside in a year.
• Tesserent (ASX:TNT), Centuria Capital (ASX:CNI) and Sealink Travel Group (ASX:SLK) are all showing bullish charting signals according to Trading Central.

The Aussie share market gained 2.2% this week (Mon-Thu) rising to a 9-month high. With a vaccine on the horizon, and approximately 75% of Aussie jobs lost to COVID-19 recovered, it would seem we've reached the light at the end of the tunnel. However, there are murmurs of unemployment rising.

The ASX200 is eyeing a gain of 0.4% at the open, on track for its fifth straight day of gains.

U.S. COVID-19 cases are continuing to rise, up 26% from last week.

What to watch today:

·       Sydney Airport (ASX:SYD) and Orica (ASX:ORI) report results today.

·       Autosports (ASX:ASG), Accent (ASX:AX1), Centuria (ASX:CNI), Kogan (ASX:KGN), Lendlease (ASX:LLS), Platinum (ASX:PTM) and ResMed (ASX:RMD) hold their AGMs today.

·       Preliminary retail sales will be released today and are expected to show a rise of 0.3%. If it’s higher than expected, you might expect consumer spending socks like JB Hi-Fi (ASX:JBH),

·       Harvey Norman (ASX:HVN), Kogan (ASX:KGN) Breville (ASX:BRG), Lovisa (ASX:LOV), Kathmandu (ASX:KMN) and Super Retail Group (ASX:SUL) to do well.

Local trading ideas:

·       Life360 (ASX:360) was reiterated as a Bell Potter Buy with a $7.70 target, implying 111% upside in a year. Google is now collaborating with Life360, which allows any Google assisted device like phones, smart speakers, Google watches or car devices to tap into the Life360’s technology.

·       Aus Agricultural Co (ASX:AAC) was upgraded by Bell Potter, increasing its Buy rating and target to $1.40, implying 19% upside in a year. AAC reported stronger than expected earnings which surprised many analysts and its stock jumped 5.7% yesterday. Its cashflow increased and debt reduced.

·       Redbubble (ASX:RBL), QuickFee (ASX:QFE) and Shriro Holdings (ASX:SHM) are all showing bullish charting signals according to Trading Central.

The ASX200 is eyeing a gain of 0.1% at the open.

Tesla will be welcomed to the S&P500 in December, its shares gained 8% on this news.

What to watch today:

·       Following the rally on Wall Street, you might expect buying today in tech, travel, tourism, gambling and bank stocks.

·       Aristocrat (ASX:ALL), ALS (ASX:ALQ) and United Malt Group (ASX:UMG) report results today.

·       Seven Group Holdings (ASX:SVW) and Cromwell Property Group (ASX:CMW) hold their AGMs today.

·       New home sales data and wage price growth is out today for October.

Local trading ideas:

·       Afterpay (ASX:APT) had its Buy rating upgraded by Bell Potter with a new $140 price target, implying 38% upside in a year from yesterday's close of $95.93. Afterpay held its AGM yesterday noting November is on track for a record month, without giving any details of what that looked like.

·       Adacel Technologies (ASX:ADA), which controls 21% of the world’s airspace traffic management through their technology, had its Buy rating and price target upgraded by Bell Potter to $1.05, implying 50% upside in a year from yesterday's close of $0.78.

·       Suncorp (ASX:SUN), Element 25 (ASX:E25) and Jumbo Interactive (ASX:JIN) are all showing bullish charting signals according to Trading Central.

Trading on the ASX is expected to resume today after it shut about 30 minutes into trade yesterday. While the ASX200 closed 1.2% up, today it’s eyeing a flat open with a gain of 0.1%.

Overnight, Moderna announced its COVID-19 vaccine was more than 94% effective in a late stage trial treating 30,000 people, this is the most effective vaccine to date. Interestingly, the flu shot has a 40% effective average and Pfizer’s COVID-19 vaccine is 90% effective. Moderna and Pfizer are both requesting emergency FDA approval for their respective vaccines.

For commodities, copper rose to a 29-month high, up 1.5%.

What to watch today:

• Afterpay (ASX:APT), Abacus Property (ASX:ABP), REA Group (ASX:REA), Pointsbet (ASX:PBH) and Investec (ASX:IAP) hold their AGMs today.
• The RBA meeting minutes will be released today. While the minutes are not likely to move markets, the employment data and retail sales released later in the week will likely impact markets as they are all about the consumer and their habits in COVID-19.

Local trading ideas:

• Bell Potter upgraded beauty business BWX's (ASX:BWX) Buy rating, increasing its price target to $5.20. This implies 24% upside in a year from yesterday’s close of $4.20.
• Bell Potter upgraded agriculture business Elders' (ASX:ELD) to a Buy, increasing its target to $13.30, implying 13% upside in a year from yesterday close of $11.80.
• Accent (ASX:AX1), Mount Gibson Iron (ASX:MGX) and Healius (ASX:HLS) are all showing bullish charting signals according to Trading Central.

The ASX200 is eyeing a gain of 0.8% at the open following global equities charging higher on Friday. Last week the Aussie share market gained 3.5%, hitting an 8-month high.

What to watch today:

• CSL (ASX:CSL) announced it’s building a new vaccine manufacturing plant near Melbourne airport in Victoria, which will be the biggest vaccine facility in the southern hemisphere. The government will sign a $1 billion agreement with CSL to supply Australia with products until 2036 and the plant will be ready in 2026. 
• Keep an eye on Hydrogen stocks like Hazer (ASX:HZR) and Woodside (ASX:WPL), given the government is pushing for hydrogen to play a major part in carbon-neutral transport, power generation and manufacturing.  
• GrainCorp (ASX:GNC) and Elders (ASX:ELD) report results today.
• BWX (ASX:BWX) holds its AGM today.
• U.S. housing sales, retail sales and industrial production will be released this week, Australian unemployment numbers will be released Thursday and retail sales are out on Friday. 

Local trading ideas:

• Bell Potter upgraded Lovisa’s (ASX:LOV) Buy rating, increasing its target to $13.50, implying 18% upside in a year from Friday’s close of $11.48. 
• Bell Potter upgraded media and marketing group IVE (ASX:IGL) to a Buy, with a new $1.38 target, implying 44% upside in a year from Friday’s close of $0.96. 
• Elders (ASX:ELD), BidEnergy (ASX:BID) and Fleetwood (ASX:FWD) are all showing bullish charting signals according to Trading Central.