Market wraps 18th August 2021

Morning Bell - Jessica Amir

US stocks headed south overnight, after disappointing retail sales data. US retail sales fell 1.1% in July, when market expectations were a fall of just 0.3%.

In addition, the Taliban has taken control of Afghanistan’s capital city, and China’s COVID-19 cases surged to an 8 month high.

Following the US, the Aussie share market is set to open lower.

Stay tuned, later today we will be releasing a full report on Coles (ASX:COL) and CSL (ASX:CSL)’s results.

What to watch today:

  • BHP have announced its petroleum business will merge with Woodside Petroleum (ASX:WPL), in the aim of reducing petroleum assets. WPL investors will hold the majority stake of the merged company. BHP also announced a $7.8 billion potash project, as well as the end of its dual-listed company structure.
  • BHP also reported its FY21 results, delivering record dividends to shareholders, with a US$2.00 final dividend. Profit grew 88% to US$17 billion, while earnings grew 69% to US$37.4 billion.
  • Dominos (ASX:DMP) reported underlying annual NPAT grew 29% to $188.2 million, slightly above market expectations of $187.7 million.
  • Coles (ASX:COL) reported annual profits grew 3%, and CSL (ASX:CSL) reported its annual profit rose 13%. Stay tuned to Bell Direct Reporting Season Coverage, with everything you need to know
  • The oil price has fallen for the 4th session, which is the longest loosing streak since March. Oil is trading at US$66.63 a barrel, as global COVID-19 cases are trending higher.
  • The gold price is steady, trading at US$1,787, while the iron ore price rose 0.2%.
  • Cotton hit a 7 year high overnight, while the price of sugar rose to another 4 year high.

Trading Ideas:

  • Mesoblast (ASX:MSB) was reiterated as a Bell Potter Speculative BUY, with a price target of $3.60, implying 89% share price growth in a year.
  • Limeade (ASX:LME), Red 5 (ASX:RED) and Ava Risk Group (ASX:AVA) are all giving off bullish charting signals, according to Trading Central.