Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

David Jones reports full-year earnings today

Four key markets in focus today.

David Jones (DJS)

DJS has had a strong year so far rising 20.76%, although it seems to have found somewhat of a fair value range. The stock has traded in a narrow range of $2.80 to $2.93 in September and seems to be lacking a catalyst. Perhaps that will come today with the retailor reporting full-year earnings. The market expects a slight decline in NPAT to $98 million (down 3% on the year), while announcing a 6.5 cent dividend. Expectations are for costs to rise, however this should be offset by a nice spike in gross margins.

Facebook (FB)

Many have had to swallow their pride and admit they have been wrong on this stock, with the social media giant hitting a new all-time high of $49.66. Is the stock expensive? According to Citigroup (who upgraded it to a buy rating), it sees the company as a $55 stock on its future earnings forecasts. FB did pull back throughout trade and this could be telling as some indecision has been seen on the daily chart; while we’d never look to short a stock in such a strong uptrend, we are starting to see signs of divergence on the RSIs. Since June the company has rallied nearly 120%, however given the trend we favour buying pullbacks here.

AUD/JPY

The JPY was the sought after currency overnight, having rallied strongly against the NZD and NOK. AUD/JPY has pulled back in recent days from a high of 94.44 to sit at 92.75 (at the time writing) and has retraced over 23.6% of the recent rally from 86.46 to 94.44. Given momentum indicators are still very strong we feel pullbacks could be contained, with key support coming in at the 38.2% retracement of the mentioned move ahead of the September 13 low of 91.39. We are watching the AUD very closely at present for signs that the currency might start attracting heavier selling in the coming weeks.

US 500 cash (S&P 500)

In US trade we get the August read on durable goods and the market expects a 0.2% fall on the month after August’s shocking 7.3% fall. We also get new homes sales figures (expected to increase 420,000), while New York Fed President Bill Dudley delivers yet another speech. Key support comes in between 1687 and 1690 and a break here could signal that traders are prepared to increase bearish strategies.

Follow these markets on our trading platform

Our Trader Radar watchlist will be updated each morning to give you quick access to important markets. To find the watchlist:

  1. Log in to the trading platform.
  2. In the Watchlist panel, select Trader Radar from the drop-down menu. If this panel is not visible, click the Watchlist button (at the top).
  3. Alternatively, select Trader Radar from the Watchlist section (near the bottom left hand corner) in the Finder panel.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.