Latest stock market news videos & Morning Bell

Good morning thanks for your company this Tuesday the 25th of August, I’m Jessica Amir, a market analyst with Bell Direct.

Well another positive day is on the cards for Aussie equities.

The futures are eyeing a lift of 0.6% which will be a nice addition if it comes to fruition, a nice addition to yesterday’s lift of 0.3%.

It comes as we saw bullish sentiment continue overnight in the U.S. as the S&P500 – the main benchmark there, and the tech heavy Nasdaq both reached brand new closing highs on Monday, after the Food and Drug Administration approved the use of patient plasma as a treatment for COVID-19 patients.

Trump as well mentioned yesterday that he is also working on fast tracking the vaccine from AstraZeneca and Oxford University.

So that positivity also helped the S&P500 end over 1% higher, rising above 3,400 points for the first time, thanks to travel companies like American Airlines, Carnival, United Airlines and Delta Air, all rising about 10% each.

We also saw the Dow Transports Index – often considered a barometer for U.S. economic health – outperforming the market lifting 1.4%.

We also saw all of the 11 major sectors that make up the S&P500, all but health care, hit highs with energy and financials up the most.

Moving to commodities, gold gave up earlier gains as traders were really returning to the risk on sentiment, pouring money back into global equities which is why the gold price pretty much trades where it was yesterday at US$1937 an ounce.

Moving to the oil price, you’d expect the oil price to rally on the back of a potential coronavirus vaccine but now a new threat – a dual potential storm is threatening the Gulf Coast, and has forced the shutdown of operations there.

Now that saw the oil price fall about 0.5%.

Now what to watch today, lots of companies are continuing to report.

Ansell (ASX:ANN) which has been front and center for supplying PPE, Blackmore’s (ASX:BKL) vitamin maker report results.

As well, the plus women size clothing that’s operating online and in the U.S. City Chic Collective (ASX:CCX) that reports, as well as a Nanosonic (ASX:NAN), the infection prevention company.

Oil companies like Oil Search (ASX:OSH) and Ampol (ASX:ALD) report today, along with the logistics and port giant QUBE Holdings (ASX:QUB), and funeral business Propel Funeral Partners (ASX:PFP).

Now for three trading ideas to think about, well Virgin Money (ASX:VUK) is showing a bullish hammer signal using standard technical analysis principles from Trading Central.

The chart pattern formed tells us that VUK may rise from the close of $1.63 yesterday following its sharp decline over the last eight trading sessions.

Virgin Money one of the UK’s biggest banks, was recently upgraded by Bell Potter to a buy, with a $2.00 target, the key being, that Virgin reported a strong turnaround in its underlying profit in the third quarter.

Secondly CBA (ASX:CBA) is showing what’s known as a megaphone top chart pattern according to standard principles also from Trading Central.

Now this chart pattern form tells us that CBA (ASX:CBA) may fall from yesterday’s close of $68.95 falling down to a range of about $60.75 – $60.25 over the next 34 trading days.

That’s also using standard technical analysis principles.

Also keep in mind that CBA’s (ASX:CBA) shares have fallen from their five-month high over the past nine trading sessions, after the hype of their stronger than expected results has faded, with the focus now on lower income for this financial year.

Probably why Bell Potter downgraded CBA (ASX:CBA) from a buy, to a hold, with a $78 target.

UBS targeting less than that, at $74.70.

Lastly Afterpay (ASX:APT).

They had their buy rating upgraded by Bell Potter yesterday, following the announcement that it’ll buy a Spanish-based European buy-now-pay-later company called Pagantis.

Pagantis, which will give access to over 150,000 active customers and 1,400 merchants.

As a result Bell Potter increased Afterpay’s (ASX:APT) price target to $96.70.

I’m Jessica Amir, stay safe happy trading. Close Transcript