##{"id":95330,"date":"2021-07-23T09:10:46","date_gmt":"2021-07-22T23:10:46","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=95330"},"modified":"2021-07-23T10:17:04","modified_gmt":"2021-07-23T00:17:04","slug":"the-overnight-report-closing-in","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2021\/07\/23\/the-overnight-report-closing-in\/","title":{"rendered":"The Overnight Report: Closing In"},"content":{"rendered":"\n\n\n\n\n\n\n\n\n\n\n\n\n
World Overnight<\/strong><\/span><\/td>\n<\/tr>\n
SPI Overnight (Jun)<\/strong><\/span><\/td>\n7280.00<\/strong><\/span><\/td>\n– 15.00<\/strong><\/span><\/td>\n– 0.21%<\/strong><\/span><\/td>\n<\/tr>\n
S&P ASX 200<\/strong><\/span><\/td>\n7386.40<\/strong><\/span><\/td>\n+ 77.70<\/strong><\/span><\/td>\n1.06%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500<\/strong><\/span><\/td>\n4367.48<\/strong><\/span><\/td>\n+ 8.79<\/strong><\/span><\/td>\n0.20%<\/strong><\/span><\/td>\n<\/tr>\n
Nasdaq Comp<\/strong><\/span><\/td>\n14684.60<\/strong><\/span><\/td>\n+ 52.64<\/strong><\/span><\/td>\n0.36%<\/strong><\/span><\/td>\n<\/tr>\n
DJIA<\/strong><\/span><\/td>\n34823.35<\/strong><\/span><\/td>\n+ 25.35<\/strong><\/span><\/td>\n0.07%<\/strong><\/span><\/td>\n<\/tr>\n
S&P500 VIX<\/strong><\/span><\/td>\n17.69<\/strong><\/span><\/td>\n– 0.22<\/strong><\/span><\/td>\n– 1.23%<\/strong><\/span><\/td>\n<\/tr>\n
US 10-year yield<\/strong><\/span><\/td>\n1.27<\/strong><\/span><\/td>\n– 0.02<\/strong><\/span><\/td>\n– 1.17%<\/strong><\/span><\/td>\n<\/tr>\n
USD Index<\/strong><\/span><\/td>\n92.86<\/strong><\/span><\/td>\n+ 0.07<\/strong><\/span><\/td>\n0.08%<\/strong><\/span><\/td>\n<\/tr>\n
FTSE100<\/strong><\/span><\/td>\n6968.30<\/strong><\/span><\/td>\n– 29.98<\/strong><\/span><\/td>\n– 0.43%<\/strong><\/span><\/td>\n<\/tr>\n
DAX30<\/strong><\/span><\/td>\n15514.54<\/strong><\/span><\/td>\n+ 92.04<\/strong><\/span><\/td>\n0.60%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

By Greg Peel<\/p>\n

Full Steam Ahead<\/u><\/p>\n

Wall Street decided on Wednesday night that yet another swiftly halted pullback left the way clear to confidently buy again, and our market followed suit yesterday, having not really had much of a pullback at all.<\/p>\n

Despite another big jump in Sydney covid cases.<\/p>\n

While all bar one sector closed in the green yesterday – healthcare was trimmed -0.2% as the Aussie rebounded – the resource sectors were the major drivers.<\/p>\n

On a rebounding oil price, energy rose 2.5%. Last night oil prices rose again to fully wipe out Monday night’s plunge on increased OPEC production.<\/p>\n

Materials rose 2.2%, despite a -5.7% fall in the iron ore price. Forget iron ore, yesterday was all about batteries.<\/p>\n

BHP Group ((BHP)) has signed a deal (terms unknown) with Tesla to provide the car maker with nickel from its Nickel West plant in WA. The clue in why Elon chose the Big Australian lies in Nickel West being one of the most sustainable and lowest carbon emission nickel producers in the world.<\/p>\n

BHP and Tesla will also work together to find renewable and battery storage solutions to reduce the miner’s carbon footprint. Going for those ESG brownie points. BHP rose 3.1% on the news.<\/p>\n

Lithium miners have had a volatile couple of years but yesterday fiances Galaxy Resources ((GXY)) and Orocobre ((ORE)) posted production reports that put a rocket under all things lithium. Galaxy rose 9.5% and Orocobre 9.9%, firing up Pilbara Minerals ((PLS)) by 10.1% to top the index.<\/p>\n

But wait, there’s more.<\/p>\n

Lynas Rare Earths ((LYC)) has received a $14.8m government grant, which had that stock up 9.0%, and rare earths hopeful Iluka Resources, better known for its mineral sands, up 7.2%.<\/p>\n

The top four index winners yesterday were aforementioned miners while Cimic Group ((CIM)) rounded out the top five in rising 6.3% on top of the prior day’s gain after Credit Suisse upgraded to Outperform post-result.<\/p>\n

More trouble in BNPL Land, with Zip Co ((Z1P)) dropping -7.8% to be the biggest loser following a disappointing quarterly update. Last week Zip leapt up the most shorted table to second position at 10.5% shorted.<\/p>\n

The technology sector still managed a 0.6% gain while the banks chimed in to add to index strength with 1.1%, supported by telcos with 1.0%.<\/p>\n

Once again you had to be quick, as almost all of the 77 index points yesterday were booked from the open.<\/p>\n

That jump puts the ASX200 within 20 points of its all-time high. Although the futures are down -15 points this morning, likely just needing a cool-off.<\/p>\n

Buy the Fact<\/u><\/p>\n

New weekly US jobless claims jumped up 51,000 to 419,000 last week when economists had forecast 350,000. But Wall Street did not seem too concerned.<\/p>\n

Tuesday night’s snap-back rally following Monday night’s big washout has reinforced confidence in the US bull market. But what it has also achieved, it would seem, is to wipe out the Nervous Nellies that may otherwise have led a sell-the-fact trend this earnings season akin to last earnings season.<\/p>\n

The first week saw sell-the-fact responses to strong Big Bank earnings, but this week solid beats are being rewarded.<\/p>\n

I give you Domino’s Pizza (US). It jumped almost 15% on its result, which highlighted the success of two new pizza toppings – chicken taco and cheese burger.<\/p>\n

After the bell, Twitter’s result was worth 5% and Snap’s a full 16%. The railroads reported strong numbers and were handsomely rewarded, while the airlines disappointed. And there were a few train crashes in the mix. Texas Instruments (Dow) fell -5%, blaming the chip shortage.<\/p>\n

But McDonalds (Dow) hit a new all-time high, as did Microsoft (Dow) and Google. Indeed, FAAMG was back driving most of the S&P500 gains, and outperformance for the Nasdaq.<\/p>\n

Stocks reporting to date have led a net 16% gain in earnings year on year. In the March quarter it was 21%.<\/p>\n

The mega-cap tech names will be reporting next week, which is the biggest week of every season by number of reporting stocks.<\/p>\n

In other news, the ECB president Christiane Lagarde last night vowed to maintain a “persistently accommodative” stance of monetary policy. The US ten-year yield dropped -2 basis points to 1.26% in response. The German equivalent fell -4 basis points, to -0.39%.<\/p>\n

Commodities<\/u><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Spot Metals,Minerals & Energy Futures<\/strong><\/span><\/td>\n<\/tr>\n
Gold (oz)<\/strong><\/span><\/td>\n1806.90<\/strong><\/span><\/td>\n+ 3.60<\/strong><\/span><\/td>\n0.20%<\/strong><\/span><\/td>\n<\/tr>\n
Silver (oz)<\/strong><\/span><\/td>\n24.45<\/strong><\/span><\/td>\n– 0.78<\/strong><\/span><\/td>\n– 3.09%<\/strong><\/span><\/td>\n<\/tr>\n
Copper (lb)<\/strong><\/span><\/td>\n4.23<\/strong><\/span><\/td>\n+ 0.02<\/strong><\/span><\/td>\n0.59%<\/strong><\/span><\/td>\n<\/tr>\n
Aluminium (lb)<\/strong><\/span><\/td>\n1.11<\/strong><\/span><\/td>\n+ 0.00<\/strong><\/span><\/td>\n0.29%<\/strong><\/span><\/td>\n<\/tr>\n
Lead (lb)<\/strong><\/span><\/td>\n1.08<\/strong><\/span><\/td>\n+ 0.02<\/strong><\/span><\/td>\n1.97%<\/strong><\/span><\/td>\n<\/tr>\n
Nickel (lb)<\/strong><\/span><\/td>\n8.52<\/strong><\/span><\/td>\n+ 0.16<\/strong><\/span><\/td>\n1.89%<\/strong><\/span><\/td>\n<\/tr>\n
Zinc (lb)<\/strong><\/span><\/td>\n1.32<\/strong><\/span><\/td>\n– 0.00<\/strong><\/span><\/td>\n– 0.02%<\/strong><\/span><\/td>\n<\/tr>\n
West Texas Crude <\/strong><\/span><\/td>\n71.91<\/strong><\/span><\/td>\n+ 1.61<\/strong><\/span><\/td>\n2.29%<\/strong><\/span><\/td>\n<\/tr>\n
Brent Crude<\/strong><\/span><\/td>\n73.63<\/strong><\/span><\/td>\n+ 1.47<\/strong><\/span><\/td>\n2.04%<\/strong><\/span><\/td>\n<\/tr>\n
Iron Ore (t)<\/strong><\/span><\/td>\n201.50<\/strong><\/span><\/td>\n– 12.10<\/strong><\/span><\/td>\n– 5.66%<\/strong><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The Tesla-BHP deal was not lost on the nickel market.<\/p>\n

Beijing has told steel producers in Jiangsu, Fujian and Yunnan provinces to cut production as the country aims to keep its annual steel output no higher than it was in 2020. Hence iron ore has broken down from its recent range around the US$220\/t mark.<\/p>\n

I had noted on Tuesday that while oil prices plunged on increased OPEC-Plus production quotas, oil analysts suggested the news was actually positive given what could have been the case if OPEC splintered and it became every man for himself. As of last night, the oils have recovered all of Monday night’s losses.<\/p>\n

The Aussie is back up another 0.3% at US$0.7381.<\/p>\n

Today<\/u><\/p>\n

The SPI Overnight closed down -15 points or -0.2%.<\/p>\n

Flash estimates of July PMIs will be provided across the globe today.<\/p>\n

Japan is again closed.<\/p>\n

The Australian share market over the past thirty days…<\/strong><\/p>\n

<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
BROKER RECOMMENDATION CHANGES PAST THREE TRADING DAYS<\/span><\/td>\n<\/tr>\n
CCP<\/td>\nCredit Corp<\/td>\nUpgrade to Add from Hold<\/td>\nMorgans<\/td>\n<\/tr>\n
CIM<\/td>\nCimic Group<\/td>\nUpgrade to Outperform from Neutral<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
COH<\/td>\nCochlear<\/td>\nDowngrade to Equal-weight from Overweight<\/td>\nMorgan Stanley<\/td>\n<\/tr>\n
CPU<\/td>\nComputershare<\/td>\nUpgrade to Outperform from Neutral<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
DMP<\/td>\nDomino's Pizza Enterprises<\/td>\nDowngrade to Underperform from Neutral<\/td>\nMacquarie<\/td>\n<\/tr>\n
HUB<\/td>\nHUB24<\/td>\nDowngrade to Neutral from Outperform<\/td>\nMacquarie<\/td>\n<\/tr>\n
<\/td>\n<\/td>\nDowngrade to Hold from Add<\/td>\nMorgans<\/td>\n<\/tr>\n
OSH<\/td>\nOil Search<\/td>\nUpgrade to Neutral from Underperform<\/td>\nCredit Suisse<\/td>\n<\/tr>\n
RHC<\/td>\nRamsay Health Care<\/td>\nUpgrade to Buy from Accumulate<\/td>\nOrd Minnett<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

For more detail go to FNArena's Australian Broker Call Report<\/a>, which is updated each morning, Mon-Fri.<\/p>\n

All overnight and intraday prices, average prices, currency conversions and charts for stock indices, currencies, commodities, bonds, VIX and more available on the FNArena website.  Click here<\/a>. (Subscribers can access prices on the website.)<\/em><\/p>\n

(Readers should note that all commentary, observations, names and calculations are provided for informative and educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions. All views expressed are the author's and not by association FNArena's – see disclaimer on the website)<\/strong><\/em><\/p>\n

All paying members at FNArena are being reminded they can set an email alert specifically for The Overnight Report. Go to Portfolio and Alerts on the website and tick the box in front of The Overnight Report. You will receive an email alert every time a new Overnight Report has been published on the website.<\/em><\/p>\n

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided. www.fnarena.com<\/em><\/p>\n

FNArena is proud about its track record and past achievements: Ten Years On<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Last night’s more modest rally on Wall Street had the S&P500 almost back to its all-time high. Dow up 25. (Available for non-subscribers after 10am)<\/p>\n","protected":false},"author":8,"featured_media":95335,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[84],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/95330"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=95330"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/95330\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media\/95335"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=95330"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=95330"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=95330"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}