Afternoon Report / Unemployment data drags market

By Market Matters 18 April 19

Unemployment data drags market

Market Matters Afternoon Report April 18th 2019

**There will be no Weekend Report on Easter Sunday, reports resuming Tuesday Morning**

WHAT MATTERED TODAY

The futures market exploded out of the gate this morning, quickly rallying to over 6300 before a share was even traded – by the time the equity market opened futures were trading closer to ~0.5% higher. At 11.30AM strong unemployment data put the brakes firmly on the market which quickly traded back to around par for the day and drifted for the rest of the afternoon. The data showed unemployment rise slightly to 5%, purely driven by more people looking for worth with the participation rate also climbing – the market reading this as a lowering the chances of a rate cut from the RBA.

Energy and communication led the way today – comms heavy weight Telstra closed up 1.49% to finish the day higher than $3.40 for its highest close in over 12 months. Healthcare took a hit following the selloff in US health stocks overnight. For the week, the market climbed just 8 points in the shortened trading week.

Overall today, the ASX 200 rose +3pts or +0.05% to 6259. Dow Futures are trading down +64 points / -0.24%.

ASX 200 Chart

ASX 200 Chart

CATCHING OUR EYE;

Sectors this week;

Stocks this week;

Broker Moves;

·         DuluxGroup Upgraded to Neutral at UBS; PT A$9.80

·         DuluxGroup Upgraded to Hold at Deutsche Bank; PT Set to A$9.80

·         DuluxGroup Upgraded to Buy at Morningstar

·         DuluxGroup Downgraded to Hold at Morgans Financial; PT A$9.80

·         Restaurant Brands NZ Cut to Underperform at Forsyth Barr

·         Pushpay Rated New Outperform at Macquarie; PT NZ$4.43

·         Orocobre Downgraded to Underperform at Macquarie; PT A$3.30

·         Evolution Raised to Outperform at Macquarie; Price Target A$3.90

·         Saracen Mineral Upgraded to Hold at Canaccord; PT A$2.40

·         Clinuvel Pharma Rated New Hold at Moelis & Company; PT A$26.43

·         NAB Upgraded to Buy at Bell Potter; PT A$27

·         Aristocrat Reinstated at Goldman With Neutral; PT A$29.05

·         Tabcorp Reinstated at Goldman With Sell; PT A$4.50

·         Tabcorp Rated New Hold at Morgans Financial; PT A$5.10

·         SkyCity Entertainment Reinstated Neutral at Goldman; PT NZ$4.30

·         Crown Resorts Reinstated at Goldman With Neutral; PT A$12.75

·         Westpac Downgraded to Hold at Bell Potter; Price Target A$28

·         Rio Tinto Downgraded to Hold at Investec; PT 48.01 Pounds

OUR CALLS

No changes today

There will be no Weekend Report on Easter Sunday, reports resuming Tuesday Morning 

Have a great long weekend,

Harry & the Market Matters Team

Disclosure

Market Matters may hold stocks mentioned in this report. Subscribers can view a full list of holdings on the website by clicking here. Positions are updated each Friday, or after the session when positions are traded.

Disclaimer

All figures contained from sources believed to be accurate.  Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy.  Prices as at 18/04/2019

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