Morning Bell 24 July

Paulina Peters
July 24, 2020

The Aussie share market is eyeing a 0.9% fall at the open, following a volatile session overnight in the U.S. after the release of disappointing unemployment data.

U.S. weekly jobless claims came in at 1.4 million for last week, which marks the 18th straight week that initial claims totalled more than 1 million.

The Oil price fell 2.1% to US$41.03 a barrel. Given this, we can expect Energy producers like Oil Search (ASX:OSH) and Woodside Petroleum (ASX:WPL) to come under pressure today. Traders were selling oil amid concerns that further spikes in COVID-19 cases could hurt demand.

What to watch today:

  • With the tech-heavy Nasdaq index tumbling overnight, keep an eye on Australian tech shares, such as Altium (ASX:ALU) and Appen (ASX:APX), as Australia’s leading tech shares have a tendency to follow the lead of their U.S. counterparts.
  • Gold miners including Evolution Mining (ASX:EVN) and Newcrest Mining (ASX:NCM) could be on the rise again today after the gold price surged higher on the back of stimulus hopes.
  • Mining services company, Mineral Resources (ASX:MIN) is due to report production numbers for the fourth quarter. Mineral Resources closed yesterday 1.1% lower to $24.52, so keep an eye on that stock today.
  • Gold mining company, OceanaGold (ASX:OGC) is due to report production numbers for the second quarter.

Local trading ideas:

  • Consumer goods retailer, JB Hi-Fi (ASX:JBH) is showing a bullish signal according to Trading Central’s charting. Yesterday JB Hi-Fi closed 2.5% higher at $44.27, but Trading Central says it could hit between $49.25 to $50.50 in 30 days according to standard technical analysis.
  • Goldman Sachs believes the recent weakness in CSL’s (ASX:CSL) share price could be a buying opportunity for the stock. Goldman Sachs retains its buy rating for the stock and has a price target of $326. After doing a deep-dive on plasma collections, it doesn’t believe there is anything to worry about for the biotherapeutics company.
Read Transcript

Good morning this Friday the 24th of July.

I’m Paulina Peters a market analyst with Bell Direct, covering for Jess today as she takes a well-earned break.

Aussie equities are eyeing a 0.9% fall at the open if you go by the futures.

This follows a volatile session overnight in the U.S. after the release of disappointing unemployment data. U.S. weekly jobless claims came in at 1.4 million for last week, which marks the 18th straight week that initial claims totalled more than 1 million.

Microsoft shares slipped 4.3% despite reporting better than expected earnings for the previous quarter.

With the sell-off in major tech companies deepening, we also saw Apple, Amazon and Netflix shares fall.

The U.S. market ended with the Dow falling 350 points, the S&P 500 snapping its 4-day winning streak and the Nasdaq closing 2.2% lower.

Looking at commodities, the Oil price fell 2.1% to US$41.03 a barrel.

Given this, we can expect Energy producers like Oil Search (ASX:OSH) and Woodside Petroleum (ASX:WPL) to come under pressure today.

Traders were selling oil amid concerns that further spikes in COVID-19 cases could hurt demand.

The iron ore price was steady at US$108.04, continuing to remain in year high territory.

What to watch today, with the tech-heavy Nasdaq index tumbling overnight, keep an eye on Australian tech shares, such as Altium (ASX:ALU) and Appen (ASX:APX), as Australia’s leading tech shares have a tendency to follow the lead of their U.S. counterparts.

Gold miners including Evolution Mining (ASX:EVN) and Newcrest Mining (ASX:NCM) could be on the rise again today after the gold price surged higher on the back of stimulus hopes.

Mining services company, Mineral Resources (ASX:MIN) is due to report production numbers for the fourth quarter.

Mineral Resources closed yesterday 1.1% lower to 24.52, so keep an eye on that stock today.

Gold mining company, OceanaGold (ASX:OGC) is due to report production numbers for the second quarter.

Now to finish on two trading ideas, consumer goods retailer, JB Hi-Fi (ASX:JBH) is showing a bullish signal according to Trading Central’s charting.

Yesterday JB Hi-Fi closed 2.5% higher at $44.27, but Trading Central says it could hit between $49.25 to $50.50 in 30 days according to standard technical analysis.

And finally, CSL (ASX:CSL).

Goldman Sachs believes the recent weakness in CSL’s share price could be a buying opportunity for the stock.

Goldman Sachs retains its buy rating for the stock and has a price target of $326.

After doing a deep-dive on plasma collections, it doesn’t believe there is anything to worry about for the biotherapeutics company.

I’m Paulina Peters, with Bell Direct, happy trading and stay safe.

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