MENU

5 things to watch on the ASX on Tuesday

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) had a disappointing start to the week and finished the day down by 0.9% at 6,227.6 points on Monday.

Will the market be able to rebound on Tuesday? Here are five things to watch:

ASX futures pointing higher.

According to the latest SPI futures, the Australian share market is expected to open the day higher. At present futures are pointing to the market lifting 0.3% or 17 points at the open following a reasonably positive night of trade on Wall Street. The Dow Jones edged slightly lower, but the S&P 500 was 0.2% higher and the Nasdaq rose 0.3%.

Alphabet smashes expectations.

Google’s parent company released its second-quarter results overnight, revealing revenue of US$32.66 billion versus $32.17 billion expected by a Thomson Reuters consensus estimate. This was a 25.6% increase from the prior corresponding period and was driven by its Search business. Though, its Cloud business also performed strongly.

Oil prices slide.

After a strong start to the trading day, oil prices gave back their gains and dropped lower on Monday. This could put pressure on energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) today. According to Bloomberg, the WTI crude oil price fell 0.7% to US$67.80 a barrel and the Brent crude oil price edged 0.15% lower to US$72.96 a barrel.

CSL shares have become expensive.

While many in the broker community are positive on CSL Limited (ASX: CSL) even after its impressive share price gain over the last 12 months, not everyone is. According to Australian equities manager T Rowe Price, courtesy of the AFR, CSL is expensive at these levels and the broker has given its shares an underweight rating.

Wesfarmers will be on watch.

On Monday Wesfarmers Ltd (ASX: WES) announced that its planned demerger of the Coles supermarket business will happen in November. Brokers will no doubt be busy updating their recommendations today to reflect these plans. One broker that has been quick to respond is Goldman Sachs, which has retained its buy rating and $50.20 price target.

BONUS: Keep an eye on these top shares.

These top shares have been tipped as market beaters in FY 2019. Do you have them in your portfolio yet?

4 Stocks for Building Wealth After 50

Renowned investor Scott Phillips just released a brand-new report detailing his 4 favourite stocks to buy right now.

And I don’t know about you, but I always pay attention when some of the best investors in the world give me a stock tip.

This is your chance to get in at the very beginning of what could prove to be very special investments.

Click here to get started today!

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (C shares). The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.