1. Good consumer news
The weekly ANZ-Roy Morgan consumer confidence rating rose by 3.2 per cent - the most in 11 weeks - to a fresh 8-month high of 103.1 (long-run average since 1990 is 112.6). Sentiment is up by 57.9 per cent since hitting record lows of 65.3 on March 29 (lowest since 1973). Consumer views on whether it is a good ‘time to buy a major household item’ surged 10 per cent to an 8-month high of 13.3. An open Victoria has been a big boost to consumers because they now can actually go out to spend!
2. Great business confidence news
The NAB business confidence index rose from -3.8 points to a 17-month high of +4.7 points in October (The long-term average is +5 points). The business conditions index lifted from -0.2 points to 10-month highs of +1.5 points. (The long-term average is +5.2 points). The big story here is that the business confidence level has not only gone positive but it is actually higher than it was before the Coronavirus. Go stimulus!
3. Rotation explains Afterpay’s fall from grace.
Afterpay’s share price fell by 10% yesterday as tech stocks from the USA to here were given a belting. On the other hand Webjet’s share price spiked 13.5% because it will benefit from the vaccine that Pfizer says is not too far away. The market experts call this a rotation out of “stay at home stocks” — those businesses that benefitted from the restrictions of the virus, into reopening trade stocks — businesses that will win from us getting back to normal. Also big fund managers would be taking profits from the money made on Afterpay and would be throwing it at the likes of Webjet, Qantas and so on.
4. Commonwealth Bank's quarterly cash profit down 16%
CBA's cash net profit has fallen 16% to $1.8 billion during the first quarter of the financial year compared to one year ago. "Commonwealth Bank is well placed to continue its extensive support for customers during the COVID-19 pandemic thanks to its balance sheet strength, a focus on operational excellence and the dedication of its staff to helping the broader Australian community," the bank said in a statement.
5. The Dow continues to climb as the Nasdaq falls again
The Dow Jones has followed up yesterday's gains with another positive session, closing 262.95 points or 0.90% higher to 29,420.92. After a fall yesterday, the Nasdaq was down again today and closed 159.93 points or 1.37% lower to 11,553.86. The S&P 500 saw a small drop of 4.97 points or 0.14% to 3,545.53.
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