Foolish Preview: A positive night in the US, ASX poised to rise

A strong overnight lead, and more trouble for another retailer

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

After a slow start, the US stock market extended yesterday's big gains with an impressive follow-through jump today.

In some ways, investors seem to want news to be good but not too good, as the prospect of some form of government stimulus has acted as a backstop against major market declines ever since the financial crisis. The Dow Jones ended up with a gain of more than 110 points, or 0.9% as the broader U.S. market outperformed most of the rest of the world. The broader S&P 500 rose 0.7% overnight with a similar gain for the Nasdaq.

The US market was closed by the time Standard & Poor's released their downgrade of Spain's credit rating by two notches to BBB+.

The ASX SPI futures index is pointing to good gains on our market this morning, with a gain of 18 points this morning, to close up 0.4% to 4,399.

In some coincidental timing, Amazon.com (Nasdaq: AMZN) overnight announced earnings that topped expectations, with shares up 8% in after-hours trading, while JB Hi-Fi (ASX: JBH) has this morning announced that while it will achieve its sales target for FY12, it now expects earnings to be lower than initially forecast.

While Amazon clearly operate in many more countries and categories than JB Hi-Fi, it's hard to escape the comparison.

In other news this morning, the Federal Court upheld an appeal from Telstra (ASX: TLS), the NRL and AFL against Singapore Telecom's (ASX: SPT) Optus and their attempt to rebroadcast live sport with just a very short delay.

Other earnings have been announced by Resmed (ASX: RMD) announced yet another quarter of strong sales and profit growth, with the latter rising 21% on an 11% revenue increase, while Macquarie Group (ASX: MQG) has reported a profit that has dropped by almost one quarter on last year.

Overall, despite a couple of soft profit announcements, the market is likely to move higher today, on the back of the US lead (the Spanish debt situation notwithstanding).

As always, the investment race is much longer than just one day – by all means take advantage of opportunities that present themselves, but don't get caught up in short-termism – it can be damaging to your financial health.

he ASX is already on the move in 2012, and Goldman Sachs experts recently said they reckon S&P/ASX 200 could top 5,000 next year. Read This Before The Coming Market Rally is a must-read for investors who don't want to miss out on the party. Click here now to request your free copy, before it's too late.

More reading

Scott Phillips is an investment analyst with The Motley Fool. Scott owns shares in Telstra and Amazon.com. You can follow him on Twitter @TMFGillaTake Stock is The Motley Fool Australia's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available. This article contains general investment advice only (under AFSL 400691).

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

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 »