The bleeding on the market won’t stop as ongoing jitters about a global growth slowdown triggered the worst sell-off this year on Wall Street and sent the UK’s FTSE 100 tumbling into a technical correction.
The futures market is pricing in a 1.4% crash for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) this morning after the index shed 1.7% yesterday as investors brace for the next wave of profit announcements.
Resource stocks may actually be spared the worse of the sell-off today as the copper price bounced 1.8% to $US2.3175 a pound and gold jumped 2.2% to $US1,153.26 an ounce.
The West Texas Intermediate oil price also staged a 0.8% rally to $US41.14 a barrel and that will hopefully help put Santos Ltd (ASX: STO) in a positive frame as it reports its first half profit results today.
The stock has crashed to a more than 12-year low of $5.61 yesterday on speculation it will have to raise capital due to the oil price rout.
Santos won’t be the only one keenly watched for its results. Beverage giant Coca-Cola Amatil Ltd (ASX: CCL) and health insurer Medibank Private Ltd (ASX: MPL) will be under the microscope ahead of their profit announcements as their share prices have been under intense pressure lately.
But fund manager Platinum Asset Management Limited (ASX: PTM) has given investors something to cheer about. Management posted a better-than-expected 12.4% increase in full year net profit to $213.5 million as revenue climbed 12.7% to $360.4 million.
The same can’t be said for general insurer Insurance Australia Group Ltd (ASX: IAG) as its 2014-15 net profit of $728 million was more than $100 million below consensus on Bloomberg and management said that current year’s profit will be flat.
Auto and camping gear retailer Super Retail Group Ltd (ASX: SUL) posted a 25.2% drop in net profit to $81.1 million even as revenue increased 7.1% to $2.24 billion for 2014-15.
Other companies that are expected to post results today include commercial property investor Abacus Property Group (ASX: ABP), transport solutions group Cabcharge Australia Limited (ASX: CAB), travel insurer Cover-More Group Ltd (ASX: CVO), almond grower Select Harvests Limited (ASX: SHV), scrap metal recycler Sims Metal Management Ltd (ASX: SGM) and waste and industrial services group Transpacific Industries Group Ltd. (ASX: TPI) – just to name a few.
In other news, fund manager BT Investment Management Ltd (ASX: BTT) might find support on news that it will replace takeover target iiNet Limited (ASX: IIN) in the S&P/ASX 200 index after August 24, while outdoor advertising group APN News and Media Limited (ASX: APN) could rebound from yesterday’s 12.9% tumble on its result after at least three brokers upgraded the stock to a “buy” equivalent rating.
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Motley Fool contributor Brendon Lau owns shares of BT Investment Management Limited and Medibank Private 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.