Market wraps 4th September 2020
Morning Bell - Jessica Amir
It will be a day of red for the Aussie share market bracing for a fall of 1.95% at the open.
Just a day after the benchmark S&P500 and tech-heavy Nasdaq hit brand-new record highs, U.S. equities tumbled overnight, seeing their biggest drop in months as investors locked in profits. Despite the better than expected economic news with jobless claims falling more than expected, investors took the opportunity to cash in on the stocks that have been driving the market higher over the last five months.
What to watch today:
- Keep an eye on U.S. futures that have calmed down a bit, earlier they were indicating heavy selling would continue in the U.S. this evening.
- This evening in the U.S., monthly payroll data is out for August.
Local trading ideas:
- Life360 (ASX:360) was reiterated as a top Bell Potter buy overnight, increasing its target to $7, implying 64% share price growth from yesterday’s close.
- Toll road operator Transurban (ASX:TCL) was upgraded by UBS from a hold to a buy with a $15.50 target.
- ReadyTech (ASX:RDY) is showing a "Bullish flag" chart pattern according to Trading Central’s data, which tells us the stock may rally from yesterday close of $1.93 to $2.19 to $2.25, over 5 days according to standard principles of technical analysis.