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Morning Bell 3 July

Bell Direct
July 3, 2020

The Aussie share market is tipped to rise 0.6% at the open. So far the ASX200 is on track to close off its best week in five weeks, after rising 2.2% Monday to Thursday.U.S. equities charged following a record rise in U.S. employment with 4.8 million jobs being added in June and the U.S. unemployment rate dropping to 11.1%, both significantly better numbers than expected.

What to watch today:

  • U.S. markets will be shut on Friday for the 4th of July Holiday.
  • Retail sales data is out for May with the market pricing in a 16.3% recovery following the 17.7% landslide in April.

Local Trading ideas:

  • Bell Potter increased its price target for fund manager Janus Henderson (ASX:JHG) to $41.25, noting it’s set to benefit from material mark-to-markets during the June quarter and from the ongoing share buyback the company has underway. Janus Henderson also has an attractive dividend with a 6.9% yield and is a buy for Bell Potter.
  • Netwealth’s (ASX:NWL) shares are already up 19% this year and given the market rallied over 16% in the June quarter, Netwealth’s revenue and earnings are expected to be at the top of their guidance level as their assets would have increased. Bell Potter also upped Netwealth’s buy rating and price target to $9.10.
  • Webjet (ASX:WEB) was reiterated as a UBS buy following select destinations being open for leisure travel. UBS increased Webjet’s price target to $5.35.

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