It was a very uneventful night, the SP500 and Dow closed slightly lower, the tech-heavy Nasdaq closed slightly higher. There is no surprise that the markets are taking a breather after such a strong move.
We saw Metals, Iron Ore and Crude all hold strength overnight. We still feel that Materials stocks locally are still lagging recent moves in their underlying commodities. So, keep an eye on names like BHP, RIO and FMG that all report next week.
Our market is set to rise today, we sold off a bit heavier compared to most other markets yesterday. It seemed many were keen to take some profit off the table coming into reporting. Today we saw
CBA report solid results considering we are in a pandemic, This is a positive sign that the recovery is in fact well on its way and that stimulus thus far has worked.
– Interim dividend of $1.50 down from $2.00 this time last year Revenue 1 per cent lower in the first half to $11.9 billion
– Net profit slid 21 per cent to $4.9 billion.
– Cash net profit after tax from continuing operations fell 10.8 per cent to $3.89 billion.
– The bank said excluding the impact of COVID-19 and remediation costs, cash net profit would have been broadly flat.
– The hit to the bottom line was mainly due to loan deferrals, but the good news is that they have cleaned most of this up-
– At January 31, there were 25,000 home loans in deferral worth $9 billion. This is down from 145,000 loans worth ($51 billion) at June 30.
– There were 2000 small and medium-sized loans worth around $300 million on repayment deferral at the end of January. This is down from 67,000 loans worth $15.7 billion at June 30.
The XJO is expected to edge higher on open this morning following flat leads from the U.S overnight. U.S futures sit slightly in the green, and if they remain so during our session, it is likely we hold the gains – especially considering the pullback yesterday it is fair to say we have catch up to play.
We are knee deep in reporting which is likely to continue to disconnect us from the U.S slightly. CBA reported this morning which may set the tone for the other banks.
Broadly sentiment remains the same, but after such a strong run overseas it is likely they take a breather. We may also do the same as we sort out reporting season and the strength in the AUD.
US shares closed pretty much flat overnight, with small gains and losses seen across the different indices. It was a rather uneventful session, with the S&P 500 drifting slightly lower and the tech heavy NASDAQ index slightly higher. Economic data showed a further drawdown in US oil inventories and more jobs created than expected. Despite this, oil stocks drifted lower after several days of strong gains, while basic materials stocks also fell. Most other sectors were roughly flat.