Morning market movers: 6 stocks to watch

We are set to enjoy our first decent market rally in eight days on strong offshore leads, but it isn't all good news for BHP Billiton Limited (ASX:BHP) and Rio Tinto Limited (ASX:RIO).

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

We are finally set for a decent rally today on the back of 1% plus gains by US and European equities and higher commodity prices.

Traders are tipping a 0.8% jump-start for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) although how we finish up will depend largely on the Australian jobs data to be released at 11.30am.

It may sound a little crazy, but we could be at a point where economic data either needs to be really good or bad to illicit a positive response from the market. Robust data will show our economy will avoid a recession and bad data will force the Reserve Bank of Australia to cut interest rates again soon – and we all know how the market is addicted to rate cuts.

But middle-of-the-road data really won't mean anything.

We won't need to worry about downside risks in early trade though and it's the resource stocks that are likely to lead the charge at the market open with iron ore snapping a three-day losing streak to jump 1.7% to $US65.39 a tonne, while the West Texas Intermediate (WTI) rallied 2.1% to $US61.43 a barrel and copper advanced 1.2% to $US2.75 a pound.

But optimism towards BHP Billiton Limited (ASX: BHP) and Rio Tinto Limited (ASX: RIO) could be tempered by credit rating agency Fitch's move to revise the outlooks for both to "negative". This implies a likely credit downgrade in the near term.

Elsewhere, grocery and auto parts distributor Metcash Limited (ASX: MTS) could enjoy its first day of gains in five days after The Australian reported that the group is considering moving forward plans to spin-off its auto division.

Property investment company Goodman Group (ASX: GMG) will also be in the spotlight as it holds its investor day, while advertising and marketing group STW Communications Group Ltd. (ASX: SGN) was upgraded to a "buy" from "hold" by Credit Suisse following its investor update yesterday.

Finally, listed fund manager Platinum Asset Management Limited (ASX: PTM) is also exciting investors after it announced it is planning on launching another listed fund that will focus on Asian equities.

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Rio Tinto Ltd., and STW Communications Group Ltd.. Follow me on Twitter - https://twitter.com/brenlau The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »