Morning Bell 9 September

Jessica Amir
September 9, 2020

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.

Weekly Wrap 30 October

Jessica Amir
October 30, 2020

Morning Bell 30 October

Jessica Amir
October 30, 2020

Morning Bell 29 October

Jessica Amir
October 29, 2020

Morning Bell 28 October

Jessica Amir
October 28, 2020

Morning Bell 27 October

Jessica Amir
October 27, 2020

Morning Bell 26 October

Jessica Amir
October 26, 2020

Weekly Wrap 23 October

Jessica Amir
October 23, 2020

Morning Bell 23 October

Jessica Amir
October 23, 2020

Morning Bell 22 October

Jessica Amir
October 22, 2020

Morning Bell 21 October

Jessica Amir
October 21, 2020

Morning Bell 20 October

Jessica Amir
October 20, 2020