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Morning Bell 20 November

Grady Wulff
November 20, 2023

Wall Street closed higher on Friday, extending on the November rally among equities in the US with each of the key indices posting a gain for a third straight week. The rally on Friday extended from the prior sessions on the back of softer-than-expected inflation data being released, boosting investor hopes that further rate hikes will be off the table. The Dow Jones added 0.01% on Friday while the S&P500 rose 0.13% and the tech-heavy Nasdaq added 0.08%.

Shares in clothing retailer Gap soared 30% on Friday, a day after the company posted better-than-expected results for the third quarter. While on the other end of the market, EV charging network ChargePoint tanked 35% after the company announced a change up to its product suite and cut forecast for third-quarter revenue.

Over in Europe, markets closed higher on Friday following the release of eurozone inflation data indicating a sharp slowdown, with October’s YoY inflation reading coming in at 2.9% compared to 4.3% in September. The STOXX600 rose 1%, Germany’s DAX added 0.84%, the French CAC added 0.91%, and, in the UK, the FTSE100 rose 1.26% boosted by a 0.3% decline in retail sales figures to the lowest level since early 2021.

Locally on Friday, the ASX200 fell 0.13% as a sharp decline in the price of oil sparked a sell-off in energy stocks, with the sector ending the day down 1.6%. Industrials and tech stocks offset some of the session’s heavy losses with 0.45% and 0.43% gains respectively.

Gold miners rallied on Friday on a rise in the price of the precious commodity, with Northern Star Resources, Evolution Mining and Bellevue Gold each rising over 3%.

Telix Pharmaceuticals and NextGen Energy were two beneficiaries of the Sohn Hearts & Minds Conference last week after industry experts said the healthcare stock and uranium stock were undervalued and the top stock pick, respectively at the conference.

What to watch today:

  • Ahead of the local trading session here in Australia the SPI futures are expecting the local market to open the new trading week 0.4% higher.
  • On the commodities front this morning, oil has rebounded to trade 4.1% higher at US$75.89/barrel, gold is down 0.04% at US$1980.01/ounce and iron ore is down 0.38% at US$132.50/tonne.
  • AU$1.00 is buying US$0.65, 97.40 Japanese Yen, 52 British Pence and NZ$1.09.
  • Stocks trading ex-dividend today include Silk Laser Australia and Tamawood. If you’ve been thinking about these stocks, it might be worth considering buying in today as stocks trading ex-dividend generally trade lower on the ex-dividend date.

Trading Ideas:

  • Bell Potter has increased the 12-month price target on GrainCorp (ASX:GNC) from $9.45 to $9.55 and maintain a buy rating on the leading Australian grain facilitation company following the release of the company’s FY23 results including underlying NPAT slightly above Bell Potter expectations at $268.9m, revenue up 5% to $8.23bn which topped Bell Potter expectations and lease adjusted operating cash inflow of $534.6m, which is above the inflow of $407.1m in FY22.
  • And Trading Central has identified a bullish signal on ClearView Wealth (ASX:CVW) following the formation of a pattern over a period of 278 days which is roughly the same amount of time the share price may rise from the close of $0.58 to the range of $0.69 to $0.71 according to standard principles of technical analysis.

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