The Nasdaq officially entered correction territory, collecting a 10% loss over the last three trading days. What was noteworthy was that Tesla shares fell 21% – their biggest drop on record – after Tesla was snubbed from being added to the S&P500. Other tech darlings that have pulled markets to all high, this year like Apple and Microsoft both took another hit, losing 6.7%. This explains why the indices retreated, as tech stocks are the largest part of the market. The Nasdaq fell, 4.1% while the benchmark S&P500 ended 2.9% lower.
- Gold gained a touch of shine, rising US$10 overnight to US$1,943
- Oil extended its drop, falling 7% to US$36.76
What else to watch:
- The Aussie share market put on 1.4% on Monday to Tuesday, but looks like it could turn south today – as the futures suggest a 1.6% or 98-point fall following Wall Street’s pull back.
- Companies going ex-dividend, i.e. transferring the dividend right to shareholders today, include: Adairs (ASX:ADH), Brambles (ASX:BXB), Nine Entertainment (ASX:NEC), Australian Finance Group (ASX:AFG), Accent Group (ASX:AX1).
- Yesterday, we saw business confidence levels improve more than expected in August – today we will learn how consumers are feeling.
- JP Morgan upgraded Fortescue Metals (ASX:FMG) from a neutral (hold) to an overweight as iron ore prices has surged to a six-year high. JP Morgan projects 9% dividend yield over the next three years.
- GrainCorp Ltd (ASX:GNC) was maintained as a Bell Potter hold stock with a $4.85 target, implying a 8% lift over the next year.
- Newcrest Mining (ASX:NCM) may be worth a look, as Trading Central’s data identified its shares are giving off a bullish signal, indicating its price may move higher off yesterday’s close of $31.48, to $35.10 – $36.00.