Between the Bells

The Aussie share market futures are suggesting the market will lift 0.8% following Wall Street’s gain, which was led by tech stocks bounding ahead. In afterhours trade – better than expected earnings results came through from FedEx and Adobe which lifted their shares by 9% and 2% respectively. However – the U.S. futures are flat as investors are awaiting comments from the US Federal Reserve.

Commodities:
- Oil gained 3% US$38.39
- Gold is US$4 less than it was yesterday, now at US$1,961.
- The Aussie dollar just nudged over 73 US cents, which is its highest level in three weeks, as the safe haven US dollar continues to come under pressure.

What to watch today?
- New home sales for August. The previous reading showed home sales fell almost 11% in July, but today’s read is not expected to be that stark. So keep an eye on building material construction firms like Brickworks (ASX:BKW) CSR (ASX:CSR) and Boral (ASX:BLD).
- Costa Group (ASX:CGC) and Supply Network (ASX:SNL) go ex-dividend today.

Trading ideas that may be worth a look:
- After Citadel’s (ASX:CGL) incredible 40% rally on Monday after receiving a takeover offer for $5.70 valuing the business at $449 million, Bell Potter downgraded the stock to a hold.
- Bell Potter had a look back at the August 2020 reporting results. Of its coverage, they upgraded MyState (ASX:MYS) but called Macquarie Group (ASX:MQG) as its top banking pick. ANZ is its preferred big four bank, while Suncorp Group (ASX:SUN) is their preferred regional/diversified play.  
- Gold Road Resources (ASX:GOR) and NRW Holdings (ASX:NWH) are giving off bullish signals according to Trading Central’s data. Take NRW for example, it’s indicated their shares may rise from yesterday’s close of $2.15 to $2.56 - $2.66 over the next 15 days, according to standard technical analysis.

COVID-19 vaccine hopes; electric car demand picking up in China; and the Tech tech-takeover- kicked Wall Street back into buying the dip and rebound mode. Sentiment got a boost when AstraZeneca resumed phase three trials following a halt due to safety reasons. This saw the Nasdaq rise 1.9%, the S&P500 gain 1.3% and the Dow lift 1.2%,

Commodities 

• Oil fell 0.2% - US$37.26 
• Gold, gained US$17.20 or 0.8% to US$1,965. 
• The Aussie dollar got a bit of a boost overnight, rising to 72.91 US, which is its highest level in almost three weeks, as the USD continues to come under pressure. 

What to watch today?

• The focus will be on the RBA meeting minutes - which is expected to pave out how much bond buying the central bank has conducted since August in a bid to stimulate the economy.
• The futures are suggesting the Aussie market will pull back 0.2% following the 0.7% gain yesterday. 
• News Corp (ASX:NWS), Ingham's Group (ASX:ING), Plato Income Maximiser (ASX:PL8), Pro-Pac Packaging (ASX:PPG), CML Group (ASX:CGR) & Data#3 (ASX:DTL) all go ex- dividend today transferring the dividend right to shareholders, so they could see some selling. 

Looking at Trading ideas that may be worth a look:

• Macquarie’s (ASX:MQG) yesterday lowered its expected NPAT to $950 million for the first half of this financial year. Overnight, Bell Potter maintained the bank as a buy with a $135.00 target, while UBS reiterated MQG as a hold.
• Aroa Biosurgery (ASX:ARX), the soft tissue regenerative company for hernia and reconstructive surgery, had its buy rating reiterated by Bell Potter with a $2.10 , implying 61% upside from yesterday’s close of $1.29.
• Saracen Mineral (ASX:SAR) may be worth a look, as Trading Central’s data tells us that SAR may rise to $6.40 - $6.70 following yesterday’s close of $5.24 in the next 29 days, according to standard technical analysis. 
• Sezzle (ASX:SZL) - its shares may end their downtrend going off Trading Central’s standard technical analysis. SZL also expects sales to hit $1 billion by the end of this year.

The Aussie share market is shaping up for a quiet start to the week with the futures eyeing a gain of 0.1% at the open. This comes after Wall Street wrapped up its session on Friday on a mixed note.

A very busy week is on the cards for markets with the RBA, the U.S. Fed, Bank of England and Japan to shed light on the state of each of their economies and potential further stimulus, as they release their central bank meeting minutes.

What to watch today:

• Macquarie (ASX:MQG) announced ambiguous guidance to the market for the first half of this financial year, saying its results will be down 35% compared to the same time last year and 25% less than the second half.  
• Breville (ASX:BRG), Chorus (ASX:CNU), Hub24 (ASX:HUB), Sandfire Resources (ASX:SFR) and Tassal (ASX:TGR) go ex-dividend today.

Local trading ideas:

• Aerial imaging company Nearmap (ASX:NEA), had its buy rating upgraded by Citi with a new $3.15 price target.
• AMA (ASX:AMA) had its buy rating upgraded by Bell Potter, increasing its price target by 13% to $0.85, implying a gain of 25% from Friday’s close of $0.63
• Oklo Resources (ASX:OKU), Adriatic Metals (ASX:ADT) and Champion Iron (ASX:CIA) may be worth a look, as Trading Central’s data tells us their shares are giving off a bullish signal, indicating their shares may rise from Friday’s close.

It's been an eventful week as the ASX reshuffles its deck. But not all eyes are on the domestic market, as key events unfold around the U.S. Presidential election and the booming tech sector loses a touch of its charge. 

In this week’s wrap, Jessica covers:

• (0:37) The Sectors report: Oil falls and Energy retreats
• (0:48) Rio Tinto (ASX:RIO) gains 5% as investors back copper
• (0:57) Two things to consider with the current pullback
• (1:48) Consumer & business sentiment rebounds
• (2:27) Three things to look out for next week
• (4:47) The S&P ASX20 reshuffle - Coles (ASX:COL) joins, Suncorp (ASX:SUN) ousted
• (5:34) Appen (ASX:APX) & Fisher & Paykel Healthcare (ASX:FPH) join the S&P ASX100
• (5:48) Five key stocks that joined the S&P ASX200

Aussie investors are expecting a negative session with the futures eyeing a 1.3% fall at the open. So far this week, the market is down 0.3% and is heading for its fourth weekly pull back.

Markets attempted to rally overnight but the U.S. tech pull back returned, as investors questioned how expensive U.S. stocks are based on the earnings they generate.

What to watch today:

• Cleanaway Waste(ASX:CWY) goes ex- dividend today, along with Argo Global Listed Infrastructure (ASX:ALI), The Environmental Group (ASX:EGL), Grange Resources (ASX:GRR), Prominence (ASX:PRM), Sequoia (ASX:SEQ) and VEEM (ASX:VEE). All transferring the dividend right to shareholders.

Local trading ideas:

• Fertilizer and explosive company, Incitec Pivot (ASX:IPL) was upgraded by UBS from a hold to a buy, with a $2.40 target.
• Medical software company Pro Medicus (ASX:PME) was downgraded from a buy to a hold by Bell Potter with a $26.50 price target, implying 2% upside from yesterday’s close at $25.98.
• Saracen Mineral (ASX:SAR), Musgrave Minerals (ASX:MGV) and Tesora (ASX:TSO) may be worth a look, as Trading Central’s data tells us their shares are giving off a bullish signal, indicating their shares may rise from yesterday’s close.

The Aussie share market is set to lift 1.3% at the open as investors look to buy back into the market, given it’s now back at late June prices.

What to watch today:

• CSL (ASX:CSL) goes ex-dividend today, transferring the dividend right to shareholders. So if you’ve been looking to buy CSL, today could be your day, as companies generally trade lower on days they go ex-div. Other companies going ex-div include: Independence Group (ASX:IGO) and South32 (ASX:S32).
• Sky TV (ASX:SKT) released its financial year results today, showing a 35% jump in revenue.

Local trading ideas:

• Bell Potter restamped internet service provider, Uniti Group (ASX:UWL), as a buy. Bell Potter reduced its price target by 20% to $1.75, however that still implies almost 36% share price growth in a year.
• Afterpay (ASX:APT) may be worth a look too, as Trading Central’s data tells us its shares are giving off a bullish signal, a ‘key reversal bar’ pattern, indicating its downward trend has likely broken and its shares may rise from yesterday’s close of $74.05. APT is a Bell Potter buy with a $99.10 target, Morgan Stanley backs APT with a $101 target.
• ArchTIS (ASX:AR9), a cybersecurity company, is also giving off a bullish signal according to Trading Central’s charting. AR9 shares have already rallied over 200% this year, with the company working with the Australian Government and the defence force.

The Nasdaq officially entered correction territory, collecting a 10% loss over the last three trading days. What was noteworthy was that Tesla shares fell 21% - their biggest drop on record - after Tesla was snubbed from being added to the S&P500. Other tech darlings that have pulled markets to all high, this year like Apple and Microsoft both took another hit, losing 6.7%. This explains why the indices retreated, as tech stocks are the largest part of the market. The Nasdaq fell, 4.1% while the benchmark S&P500 ended 2.9% lower.

Commodities:
- Gold gained a touch of shine, rising US$10 overnight to US$1,943
- Oil extended its drop, falling 7% to US$36.76

What else to watch:
- The Aussie share market put on 1.4% on Monday to Tuesday, but looks like it could turn south today – as the futures suggest a 1.6% or 98-point fall following Wall Street’s pull back.
- Companies going ex-dividend, i.e. transferring the dividend right to shareholders today, include: Adairs (ASX:ADH), Brambles (ASX:BXB), Nine Entertainment (ASX:NEC), Australian Finance Group (ASX:AFG), Accent Group (ASX:AX1).
- Yesterday, we saw business confidence levels improve more than expected in August – today we will learn how consumers are feeling.

Trading Ideas:
- JP Morgan upgraded Fortescue Metals (ASX:FMG) from a neutral (hold) to an overweight as iron ore prices has surged to a six-year high. JP Morgan projects 9% dividend yield over the next three years. 
- GrainCorp Ltd (ASX:GNC) was maintained as a Bell Potter hold stock with a $4.85 target, implying a 8% lift over the next year. 
- Newcrest Mining (ASX:NCM) may be worth a look, as Trading Central’s data identified its shares are giving off a bullish signal, indicating its price may move higher off yesterday’s close of $31.48, to $35.10 - $36.00.

U.S. and Canadian markets closed overnight for Labour Day, rendering a silent night. London’s market rose 2.4%, German and French markets followed off the back of economic cyclical stocks like autos leading the gains.

Commodities:
• Gold steady at US$1,935
• Oil fell further below US$40, losing over 5% in the last 2 sessions, now trading at US$39.07.
• Copper trades at US$3.05, its highest since June of 2018, driven by Chinese demand.

The Australian Dollar:
• The AUD tracks lower at 72.7 U.S. cents, holding a near two-year high.

What to watch today:
• The Aussie share market is expected to rise for the second day, with the futures suggesting a 0.4% gain, or a lift of 25 points. Yesterday, the market rose 0.3%. Not enough to recover from the market’s fall last week, marking it’s third fall in 3 weeks.
• The U.S. futures will be under scrutiny as they attempt to rebound from Thursday and Friday’s fall, in which the Nasdaq lost 5.3% - it’s biggest fall in 5 months.
• Many companies are going into ex-dividend from here on in. Today, Austal (ASX:ASB) BlueScope (ASX:BSL), Jumbo Interactive (ASX:JIN), and Northern Star (ASX:NST) all go ex-dividend.
• Business confidence numbers are out for the month of August, expected to remain very weak.

Trading ideas:
• QBE (ASX:QBE), Australia’s second largest insurer, was reiterated as a Bell Potter buy with a $11.90 target.
• Northern Star Resources (ASX:NST), Sandfire Resources (ASX:SFR), and Champion Iron (ASX:CIA) may be worth a look. Trading Central’s data identified all three of the stocks are showing bullish signals, indicating their prices may move higher off yesterday’s close, according to standard principles of technical analysis.

Looks like it could be a quiet day as U.S. and Canada’s markets are closed for public holidays this evening Aussie time. The local market will get to react to having Victoria’s lockdown extended, with the Aussie futures earlier suggesting a 0.6% fall at the open.

A ray of sunshine came over the U.S. with employment conditions improving in July. This was more than expected with the unemployment rate falling to 8.4% from 10.2% in July, as many returned to retail and hospitality jobs. But until the pandemic is over, employment is expected to remain weak.

The Australian dollar trades at 72.8 U.S. cents, holding a near two-year high.

What to watch today:

• Companies going ex-dividend: St Barbara (ASX:SBM), Sonic Health Care (ASX:SHL), ASX (ASX:ASX) and Bega Cheese (ASX:BGA).
• Myer (ASX:MYR) is due to release its full year results today.
• On Friday it was announced that MYR will be removed from the ASX100 on the 21st of September. Other companies removed include Regis Healthcare (ASX:REG) and SG Fleet Group (ASX:SGF), while companies that are thriving online were added the ASX100. This includes Appen (ASX:APX) and Temple & Webster (ASX:WEB).
• Coles (ASX:COL) and Fortescue Metals (ASX:FMG) were added to the top 20 ASX index, while  Scentre (ASX:SCG) and Suncorp (ASX:SUN) were ousted. Really reflecting of the fact that supermarkets and miners are doing well in the pandemic, while property and banking stocks are not.
• On the economic side of things, Services sector data is out today for August and ANZ jobs ads are out.

Local trading ideas:

• Sonic Healthcare (ASX:SHL) was upgraded by UBS from a sell to a neutral, while increasing SHL’s price target to $32.10.
• NOVONIX (ASX:NVX), Proteomics International (ASX:PIQ) and Kingsgate Consolidated (ASX:KCN) may be worth a look, as Trading Central identified all three of those stocks are showing bullish signals, indicating they may move higher according to standard principles of technical analysis.

The hustle and bustle of reporting season is over, but the Aussie share market continues to twist and turn as Australia officially entered its first recession in 30 years. Aussie tech stocks also came under pressure this week as investors feared increased competition following PayPal's entry into the buy now pay later market.

In this week’s wrap, Jessica covers:

• (0:40) The Aussie Tech sector and the U.S. downturn
• (1:15) Afterpay (ASX:APT) falling and Lendlease (ASX:LLC) rising
• (2:28) Key themes emerging in the market - the China-ore love story
• (4:15) The first Australian recession in 30 years
• (4:28) Changes in spending and saving habits
• (5:10) Sectors and stocks to watch: Consumer staples & Coles (ASX:COL), Healthcare & CSL (ASX:CSL), Tech & Life360 (ASX:360)