Market wraps 5th August 2020
Morning Bell - Geoff Beeston
The Aussie share market is eyeing a fall of 0.6% at the open, as traders bid up stocks in global markets on the hope of a second Federal Reserve stimulus package.
The major exchanges in the U.S. all pushed higher overnight with the S&P500 up 0.36%, it is now less than 3% off its pre-pandemic record highs in February this year.
Companies reporting today:
- ALE Property Group (ASX:LEP) reports its full year results today.
Local trading ideas:
- The Funeral Services Provider Invocare (ASX:IVC) is rated by Bell Potter as a buy. As a market leader in the sector, Invocare has faced significant headwinds from COVID-19 related gathering restrictions. IVC reports its H1 2020 results on the 19th of August. Its major competitor, Propel Funeral Partners (ASX:PFP) provided the market with a trading update back in May, which showed an increase in their average revenue of 8%. Invocare has been sold off heavily since stage 4 COVID-19 restrictions have come into place in Victoria and is now trading at a near 7 year low.
- Life360 (ASX:360) is a mobile app in the U.S. and is available internationally. The midcap is rated as a buy by Bell Potter. Like Afterpay (ASX:APT), 360 has strong network effect characteristics, which is why Bell Potter expects the next catalyst for the stock will be when Life360 reports on August 20.