The Australian share market is on a role early in Tuesday's session following a strong session for global equity markets. Overnight, the Dow Jones rose 1.5% while the NASDAQ and S&P 500 indices both gained 1.2%.
With the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) trading 1.4% higher at roughly 11:30am AEST, here are four blue chip stocks that are doing the heavy lifting.
BHP Billiton Limited (ASX: BHP) has jumped 3% to be trading at $31.00, more than reversing the damage inflicted on the stock during the market-wide sell-off on Monday. Although iron ore and oil prices both fell marginally overnight, the stock is likely jumping on reports that China is taking a number of steps to stimulate growth. That could be good news for future iron ore prices.
Woolworths Limited (ASX: WOW) has lifted 1.3% to be trading at $29.86. There has been a lot of negative press about the supermarket behemoth recently, particularly in regards to its ability to continue competing with Coles and Aldi as well as the lacklustre growth in its Masters Home Improvements chain. However, long-term investors may be taking the opportunity to stock up with its shares trading at an attractive price – especially given its 4.7% fully franked dividend yield.
Caltex Australia Limited (ASX: CTX) crashed more than 9% yesterday after US oil giant Chevron sold its 50% stake in the business. Today, the stock has managed to recover 1.5% with investors likely recognising value in the opportunity. Caltex's shares have risen strongly over the last 12 months and with management confirming that it is business as usual despite the record block trade, the good times could continue for Caltex shareholders going forward.
Westpac Banking Corp (ASX: WBC) has risen 1.3% to a near record-high with the market seemingly weighing in a higher likelihood of an official interest rate cut when the RBA meets next week. Australia's growth outlook remains weak, while commodity prices continue to plummet, putting additional pressure on the economy. As a result, it's likely that investors are moving towards the big four banks for their seemingly attractive fully franked dividends.
