.svg "close (3)"){kind=small}
Image Source: Adobe Stock
Morning Research Notes - 16.08.24
On Thursday, the S&P 500 continued its upward trend for the sixth consecutive session, driven by robust labour market and retail sales data, with major stocks like Walmart, Home Depot, and Cisco contributing to the rally. Spot gold increased by 0.4% to $US2456.39 per ounce. Brent crude rose by 1.4% to $US81.89 per barrel, while iron ore prices fell by 2.2% to $US93.55 per tonne.
Yesterday, the S&P 500 extended its winning streak for the sixth consecutive session, buoyed by stronger-than-expected labour market and retail sales data. Retail sales in the U.S. rose by 1% in July, indicating consumer resilience and easing recession fears. Additionally, the number of Americans filing for unemployment benefits fell, suggesting a gradual softening of the labour market. Major stocks like Walmart, Home Depot, and Cisco saw significant gains, contributing to the overall market rally.
The Australian market continued its steady climb, with the ASX 200 closing 0.19% higher. Financials and Info Tech sectors remained bullish, continuing their upward trend and closing 0.81% and 0.78% higher, respectively, on Thursday. Conversely, Materials, Healthcare, and Utilities sectors fell by 1.20%, 0.15%, and 4.06%, respectively. The commodity markets also remained bullish following a strong rebound on Tuesday, with Aluminum, Copper, Zinc, and Nickel seeing price gains of 0.09%, 1.16%, 1.19%, and 0.90%, respectively.
In other news, Gold miner’s profits nearly triple, Pro Medicus posts $82.8m net profit, and Amotiv profit rises, ups dividend. (Source: AFR)
Chart of the day
In the current financial landscape, bonds present an interesting investment opportunity, offering a healthy yield premium, that comes with a greater degree of risk when compared to term deposits. While term deposits are known for their safety and security, they come with significant limitations, including a lack of flexibility and potential penalties for early withdrawal.
Conversely, bonds provide greater flexibility and potentially higher returns. At present, some BBB-rated bonds, are yielding around 6% to 6.5%. This makes bonds particularly attractive at the peak of the interest rate cycle, as they allow investors to potentially lock in these favourable returns. Additionally, as interest rates are anticipated to decline in the future, bonds purchased now could benefit from capital uplift, further enhancing their appeal.
Source: Livewiremarkets
If you want to receive our top 3 income stocks click on the button below:
Invest Well,
Australian Stock Report
