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  • U.S. Futures Slide, Dollar Up Amid China Outbreak: Markets Wrap

    U.S. Futures Slide, Dollar Up Amid China Outbreak: Markets Wrap(Bloomberg) — U.S. and Japanese equity futures retreated and the dollar climbed against major peers after a coronavirus outbreak in China added to concerns of a resurgence in the pandemic.S&P 500 futures opened about 1% lower. Beijing closed the city’s largest fruit and vegetable supply center and locked down nearby housing districts after dozens of people associated with the wholesale market tested positive for the coronavirus. That’s after second-wave concerns intensified in some U.S. locations last week. Crude oil retreated.The prospect of another wave of Covid-19 just as economies continue to reopen is keeping traders on edge and pushed global equities and Treasury yields lower last week. In the U.S., there are rising infections in 22 states. France, meantime, moved to open restaurants to indoor diners as soon as Monday.These are some key events coming up:Policy decisions from the Bank of Japan, Bank of England and the Swiss National Bank are due this week.China on Monday releases industrial production and retail sales data for May.CBOE plans to open its trading floor, which has been electronic only since March 16.Federal Reserve Chairman Jerome Powell delivers his semi-annual policy report to Congress.These are some of the main moves in markets:StocksS&P 500 futures fell 1% as of 7:01 a.m. in Tokyo. The S&P 500 advanced 1.3% on Friday.Futures on Japan’s Nikkei 225 slid 0.8%.Hang Seng futures fell 0.5% on Friday, when contracts on Australia’s S&P/ASX 200 Index added 0.4%.CurrenciesThe euro fell 0.1% to $1.1241.The yen rose 0.1% to 107.49 per dollar.The offshore yuan slid 0.1% to 7.0826 per dollar.The Aussie dropped 0.5% to 68.33 U.S. cents.BondsThe yield on 10-year Treasuries gained about three basis points to 0.70% on Friday.CommoditiesWest Texas Intermediate crude dipped 1.2% to $35.83 a barrel.Gold was at $1,729.19 ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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  • Opinion: Hits and Misses of the Week

    Opinion: Hits and Misses of the WeekJournal Editorial Report: The week’s best and worst from Kim Strassel, Mary O’Grady and Dan Henninger. Image: Everett Collection

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  • Why I would buy Telstra and this ASX dividend share today

    Telstra shares

    The good news for income investors in this low interest environment is that the Australian share market is home to a large number of dividend-paying companies.

    Two ASX dividend shares which I think are in the buy zone right now are listed below. Here’s why I like them:

    Dicker Data Ltd (ASX: DDR)

    The first dividend share to consider buying is Dicker Data. It is a wholesale distributor of computer hardware and software. Due to an increasing number of vendor relationships and robust demand for information technology products, Dicker Data has been growing its earnings and dividends at a strong rate over the last five years.

    Pleasingly, this has continued this year despite the pandemic. At the end of April the company revealed that it had experienced a surge in demand for remote working products because of the work from home initiative. So much so, its first quarter profit before tax jumped 36.3% to $18.4 million. Management appears confident this strong form will continue and is planning to increase its FY 2020 dividend to 35.5 cents per share fully franked. This will be a 31% increase on last year’s dividend, which also included a 5 cents per share special dividend. This equates to an attractive 4.9% dividend yield.

    Telstra Corporation Ltd (ASX: TLS)

    A second dividend share that I believe is in the buy zone is Telstra. With its medium term outlook arguably looking the brightest it has been in a long time, I think now is a great time to invest in this telco giant. This improving outlook is due to its T22 strategy, rational competition, and the easing of the NBN headwind.

    While the NBN headwind is still here, peak pain from it is on the horizon. This should make a return to growth possible in the not so distant future. In fact, Telstra would have returned to growth in the first half were it not for this headwind. Underlying operating earnings excluding the in-year NBN headwind grew by approximately $90 million. In the meantime, I’m confident its free cash flows are sufficient to maintain its 16 cents per share fully franked dividend. This represents a very attractive 5.1% dividend yield.

    5 ASX stocks under $5

    One trick to potentially generating life-changing wealth from the stock market is to buy early-stage growth companies when their share prices still look dirt cheap.

    Motley Fool’s resident tech stock expert Dr. Anirban Mahanti has identified 5 stocks he thinks are screaming buys. And you can buy them now for less than $5 a share!

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited and Telstra 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.

    The post Why I would buy Telstra and this ASX dividend share today appeared first on Motley Fool Australia.

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