Latest stock market news videos & Morning Bell

Good morning, thanks for your company this Tuesday the 18th of August.

I’m Jessica Amir, a market analyst with Bell Direct.

Well overnight we saw U.S. stocks end mostly higher with the NASDAQ hitting another new all-time high after rising 1%, while the broader S&P500 huffed and puffed but wasn’t able to meet the same destiny, rising 0.3%.

While stocks tied to the economic recovery like Boeing and large banks closed lower, pulling down the Dow Jones 0.3%.

However, broad sentiment was high as we saw U.S. home builder levels climbed to their highest level in 21 years, supported by record low interest rates which is boosting home building demand.

It was a positive night for commodities as well, the gold price bounced up 2% and helped gold stocks rally after Warren Buffett’s company Berkshire Hathaway disclosed that it’s snapped up a stake in Barrick Gold.

We also saw the oil price lift 2% to US$42.89 after China said it would buy more U.S. oil as part of honoring phase two of the U.S. trade deal.

The Aussie dollar hit a two-week high after the U.S. dollar fell as people invested into Gold, selling out of the USD.

Taking everything into the equation, today the Aussie share market looks like it’ll attempt to erase some of yesterday’s 0.8% fall, with the future suggesting a lift of 0.5% but traders will have a lot to go through today.

On the economic side of things, the RBA meeting minutes will be released from their meeting earlier this month.

And as for earnings results, BHP (ASX:BHP), Coles (ASX:COL) and Cochlear (ASX:COH) report as well as Westpac’s (ASX:WBC) third quarter results.

Looking at a first look at BHP, they’ve reported underlying attributable profit of US$9.06 billion, that’s down 1% on the same time last year.

At first glance it looks like that’s in line with Citi’s expectations, but weaker than what the market was looking for.

Total dividends for the year came in at US$1.20, slightly less than the US$1.23 expected and that includes a final dividend of US$0.55.

Coles also reported a full-year result with profit looking like it came in slightly better than expected with profit from continuing operations up 7% to $951 million.

Westpac has canceled their half-year dividend and reported a quarterly cash profit of $1.3 billion.

Now for three trading ideas, well firstly JB Hi-Fi (ASX:JBH) announced a very strong result yesterday, but the stock was downgraded by Bell Potter from a hold to a sell with a $44 target.

Despite JB Hi-Fi and The Good Guys delivering double-digit sales growth with sales surging on the back of COVID-19 restrictions.

The stock is now looking like it’s quite expensive at 20 times earnings, now that’s why the stock was downgraded to a sell.

Yesterday JBH shares rocketed up almost 5% to $49.60.

Secondly Altium (ASX:ALU) reported better than expected results as well yesterday, however did allude to slowing growth for the next five years, which is why Bell Potter reiterated ALU as a sell with a $31.25 target.

Yesterday ALU closed up 1.3% to $33.92.

Thirdly, Imdex (ASX:IMD), their earnings were in line with expectations but net profit was slightly below the mark, due to higher depreciation costs.

Bell Potter reiterated IMD as a hold but increased IMD’s price target to $1.38.

Yesterday it gained 2.9% to $1.42.

I’m Jessica Amir with Bell Direct.

Happy trading and please stay safe.