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Market wraps 11th August 2021

Morning Bell - Jessica Amir

US stocks reached record highs after the US Senate passed a $1 trillion infrastructure bill. Funds will go towards building transportation, an electric vehicle grid, charging stations, and cybersecurity.

Overnight, investors bought stocks in energy, mining and industrials as the oil price rose back to US$68. Tech stocks succumb to profit taking, including Moderna, which fell 5%, after jumping 17% the session prior.

This morning the futures are suggesting the Aussie share market will rally up 0.3%.

Stay tuned, later today we will be releasing a full report on Commonwealth Bank (ASX:CBA)’s results.

What to watch today:

  • CommBank (ASX:CBA) will boost sentiment today, after releasing their earnings results this morning. Headline profit surged 19% to $8.8 billion, beating the $8.6 billion expected, supported by a surging business and household lending. CBA increased its full year dividend by 17% to $3.50 and announced a $6.2 billion share buyback to return money to shareholders. This is over $1 billion more than expected.
  • More company reports today: IAG (ASX:IAG) reported a profit loss of $427 million. Computershare (ASX:CPU) reported profit of US$188 million, missing market expectations of US$284.9 million.
  • The oil price is up 0.3% to US$68.42 a barrel.
  • The gold price fell 0.1% to US$1,729, to another 4 month low, while the iron ore price fell 2.8%.
  • Consumer confidence data will be released today.

Trading Ideas:

  • Telix Pharmaceuticals (ASX:TLX) was initiated as a Bell Potter Speculative BUY, with an $8.00 price target, implying over 44% share price growth in a year.
  • oOh!media (ASX:OML), Bentley Capital (ASX:BEL) and Australian Vintage (ASX:AVG) are all giving off bullish charting signals, according to Trading Central.