Foolish Preview: US markets up, good news for the ASX

A positive lead from Wall Street, reflected in the ASX futures, should be good news for the ASX

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

On US Markets overnight, all three indices rose with The Dow Jones Industrial Average climbing 0.7%, the S&P 500 Index up 0.9% and the Nasdaq Composite Index 0.7% higher. US crude oil recovered to above $80 per barrel and stronger than expected orders for US durable goods both had a positive impact on the markets.

The National Association of Realtors said signed contracts for home purchases increased 5.9% in May, the most in seven months – another indicator that the US housing market may be slowly recovering.

The Australian dollar was up slightly overnight, although still trading around parity with the US dollar.

In commodities news, gold was up 0.2% to US$1575.16 an ounce.

Google has moved into the tablet computer space, unveiling the "Nexus 7" tablet. The tablet will begin selling for around US$199 (AU$249 plus shipping) online from mid-July. Look out Microsoft, Samsung and Apple.

A good day ahead?

The ASX SPI futures closed up 28 points this morning, indicating the S&P / ASX 200 (Index: ^AXJO) (ASX: XJO) could show a second consecutive day of gains.

The Housing Industry Association will today release new home sales data for May, and the Australian Bureau of Statistics will release job vacancy data for the May quarter.

Metcash Limited (ASX: MTS) will announce its 2012 financial year results today. The company's share price has fallen 7% since announcing last week that it was moving to take full control of Mitre 10. All eyes will be on the company's outlook, given the current tough trading conditions. As I write this the company has requested a trading halt, pending a capital raising – looks like things are tougher than ever.

Oil stocks could be in focus as JP Morgan yesterday cut its forecasts for oil prices in the second half of 2012. As a result, the broker slashed profit forecasts for Woodside Petroleum Limited (ASX: WPL) by 22%, Santos Limited (ASX: STO) by 26%, Oil Search Limited (ASX: OSH) by 28%, AWE Limited (ASX: AWE) by 46% and Roc Oil Company Limited (ASX: ROC) by 45%.

Foolish takeaway

With the European Union Summit starting tonight (our time), investors could become distracted, but remember to keep your eye on the prize, and don't be distracted by the 'noise'. Fool on!

If you're in the market for some high yielding ASX shares, look no further than our "Secure Your Future with 3 Rock-Solid Dividend Stocks" report. In this free report, we've put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

More reading

Motley Fool contributor Mike King owns shares in Woodside. The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool'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). Authorised by Bruce Jackson.

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 »