The Motley Fool

5 things to watch on the ASX on Wednesday

On Tuesday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) had a disappointing day of trade and finished the day with a decline of 0.6% to 6,097.8 points.

Will the benchmark index be able to bounce back with a gain today? Here are five things that could impact trade on Wednesday.

ASX futures are pointing lower.

According to the latest SPI futures, the Australian share market is expected to open the day lower by 7 points or 0.1% following sizeable declines on Wall Street overnight. The Dow Jones fell 0.8%, the S&P 500 dropped 0.7%, and the Nasdaq ended the day 0.8% lower.

U.S. treasury yields widen.

One driver of the decline on Wall Street was a positive U.S. retail sales data release which has led to the market predicting that the Federal Reserve will raise rates three more times this year. This took 10-year Treasury Yields to 3.08% and the U.S. dollar index to its highest level in 2018. Bond proxies such as Transurban Group (ASX: TCL) could potentially come under pressure today.

The gold price is falling.

The rising U.S. dollar and widening bond yields also hit the gold price. The spot gold price is currently down almost 1.8% to US$1,290 an ounce. This could put the shares of gold miners including Newcrest Mining Limited (ASX: NCM) and Resolute Mining Limited (ASX: RSG) under pressure on Wednesday.

Myer releases its quarterly sales update.

Embattled department store Myer Holdings Ltd (ASX: MYR) is expected to release its sales update for the March quarter this morning. A broker note out of Citi yesterday reveals that its analysts expect Myer to report a 4.9% drop in quarterly sales. The broker was concerned that the warm start to winter could be an issue for the retailer, putting it on a path towards breaching its debt covenants.

Telstra will be on watch again.

The Telstra Corporation Ltd (ASX: TLS) share price will be on watch again on Wednesday. The telco giant’s shares have now shed over 10% of their value this week following the release of a trading update. The market appears to be unconvinced that Telstra’s 22 cents per share dividend is sustainable. Citi put a sell rating and $2.70 price target on Telstra’s shares yesterday.

Here's one dividend that the market expects to grow at an explosive rate over the coming years.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited and Transurban Group. 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 Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now