This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Several of the largest cryptocurrencies have jumped higher today as investors digest monetary policy and also monitor the foreign exchange markets, which have been active lately.

Over the last 24 hours, the price of the world’s largest cryptocurrency, Bitcoin (CRYPTO: BTC), has traded roughly 5% higher as of 10:27 a.m ET. The price of the world’s second-largest cryptocurrency, Ethereum (CRYPTO: ETH), traded roughly 4.1% higher, and the price of Solana (CRYPTO: SOL) was up 5%.

So what

Cryptocurrencies have struggled as the Federal Reserve has raised its benchmark overnight lending rate, the federal funds rate, aggressively this year, making riskier assets like cryptocurrencies less appealing. The Fed did a 0.75% rate hike at each of its June, July, and September meetings, and the Fed’s median forecast shows that another jumbo 0.75% hike could happen before the year is over.

But recently, the price of Bitcoin has split off from those of other cryptocurrencies and tech stocks. For much of the year, the two have traded similarly. However, over the last five days, the price of Bitcoin, which is back above $20,200, has risen about 5%, and the Nasdaq Composite has fallen about 4.6%.

Analysts seem to think that crypto investors are now turning their attention to the foreign exchange markets, which have been dominated by an incredibly strong U.S. dollar, which not too long ago overtook the euro. The U.S. dollar has also overtaken the British pound sterling, which has hit a record low.

A strong dollar has contributed to Bitcoin’s struggles this year because cryptocurrency is an alternative to traditional currencies and therefore moves inversely to the dollar. Vijay Ayyar of the international crypto exchange Luno said he thinks the dollar index, which measures the U.S. dollar against other currencies and has risen 18% this year, could be nearing its peak.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Bitcoin, Ethereum, and Solana moved higher on Tuesday appeared first on The Motley Fool Australia.

More reading

• Bitcoin price rallies 6% to leap back over US$20,000
• Bitcoin isn’t as ‘smart’ as Ethereum… and that’s why I hold it
• Check out this US stock if you’re worried about crypto and chip shortages
• Soy boy and bitshaming: Here’s your guide to crypto slang
• How will the Ethereum merge impact the Bitcoin price?

Bram Berkowitz has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Ethereum, and Solana. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Kogan.com Ltd (ASX: KGN) share price has suffered a strong sell-off over the last couple of weeks. At the time of writing it’s down by 18%. Uncertainty has risen in the global and local economies.

Inflation has risen because of a variety of impacts such as higher energy costs and difficulties in the supply chain.

Central banks are doing what they can to manage and bring down inflation. Low inflation, in the 2% to 3% range, is seen as a good benchmark for stability.

ASX retail shares suffer

Higher interest rates are meant to hurt the valuation of most assets, in theory. That’s because the ‘safe’ return that people can get from cash has risen, so the potential return from ‘risk’ assets like ASX shares isn’t as attractive.

Investors are generally paying a lower multiple for a company’s earnings. This can be measured with the price/earnings (P/E) ratio.

But, some companies’ earnings are also expected to reduce in this environment. Even in a downturn, households are going to keep buying food from the supermarket and paying their telco bill. But not every sector may be essential to a household’s spending.

People may not spend as much at some retailers in this new environment. That’s probably why a number of ASX retail shares have been hurt.

In 2022, the Wesfarmers Ltd (ASX: WES) share price has fallen 26%, the JB Hi-Fi Limited (ASX: JBH) share price has dropped 20%, the Harvey Norman Holdings Limited (ASX: HVN) share price has declined 18%, the Reject Shop Ltd (ASX: TRS) share price is down 42%, the City Chic Collective Ltd (ASX: CCX) share price is down 75% and so on.

This year, the Kogan share price has fallen 64%.

Let’s recap what was said in the latest report.

FY22 report

The FY22 result did show difficulty for the business, so it’s not surprising that investors haven’t been positive on the business recently.

Kogan’s FY22 gross sales grew by 0.1% to $1.18 billion.

Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was $18.9 million, which Kogan said fell largely as a result of elevated operating costs from excess inventory after fluctuating demand for online shopping during COVID-19.

Adjusted net profit after tax (NPAT) was a loss of $2.9 million, with a statutory net loss of $35.5 million – this was impacted by “unrealised losses on financial instruments, non-cash equity-based compensation” and other factors.

Is the Kogan share price an opportunity?

There were already positive green shoots that Kogan talked about.

It said that it’s looking forward to returning to positive operating leverage, having commenced the process of “driving efficiencies in operating costs and product ranges” which led to a return to adjusted EBITDA profitability in the fourth quarter of FY22.

Kogan First, which is its membership program, is aiming to reach 1,000,000 subscribers in the medium-term. It grew to 372,000 at 30 June 2022.

Fellow Motley Fool writer Sebastian Bowen is still planning to be a long-term shareholder in Kogan shares. In my opinion, there are a few key reasons to be interested in the business.

I think the adoption of online shopping is going to grow over time, which should be a useful tailwind for Kogan. Growing scale should help Kogan’s margins, but it could take a while for it to return to pre-COVID profitability levels as it works through its inventory and supply chain challenges, while also traversing the current economic climate.

At this low level, I think the Kogan share price is probably a bargain when thinking about how much profit it could make in FY25. But, investors are likely to see quite a bit more volatility over the next three years, so a long-term mindset could be required.

The post The Kogan share price has tumbled 18% in 2 weeks. Time to pounce? appeared first on The Motley Fool Australia.

More reading

• 2022 hasn’t been kind to Kogan shares. Here’s why I’m holding tight
• Why did the Kogan share price leap 5% on Friday?
• ASX better buy: Temple & Webster or Kogan shares?
• About to go shopping? Kogan share price slides 5% amid acquisition rumours
• Why is the Kogan share price smashing the ASX 200 on Friday?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Harvey Norman Holdings Ltd. and Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Harvey Norman Holdings Ltd., Kogan.com ltd, and Wesfarmers Limited. The Motley Fool Australia has recommended JB Hi-Fi Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Australian share market is home to a good number of shares that are growing at a quicker than average rate.

Two that have been tipped to continue doing so in FY 2023 are listed below. Here’s why analysts think they are top options for growth investors:

Allkem Ltd (ASX: AKE)

There’s no doubt that the lithium industry is running hot at the moment.

And while the valuations of some explorers and developers are questionable, the Allkem share price is seen as very attractive by analysts at Macquarie.

This is because Allkem is already producing significant quantities of the battery making ingredient and benefiting from the insatiable demand and high prices. Whereas the many explorers popping up on the ASX boards have no idea what the price will be when they commence production.

It is also worth noting that management is aiming to grow Allkem’s production 3x by 2026. This should ensure that it is well-placed to take advantage of the high lithium prices before they normalise again when supply improves.

In light of this, Macquarie has put an outperform rating and $21.00 price target on its shares. This compares to the latest Allkem share price of $14.36.

Readytech Holdings Ltd (ASX: RDY)

Another ASX share that has been tipped to continue its strong growth is Readytech. 

It is an enterprise software provider to several market verticals such as higher education and local government. 

Goldman Sachs highlights that the company operates in market niches that are under-served by both large and small enterprise software competitors. 

And combined with its high levels of recurring revenue and ultra low churn levels, Goldman expects Readytech to “continue to grow mid-teens organically while making accretive acquisitions.” 

As a result of this positive outlook, the broker currently has a buy rating and $4.60 price target on its shares. This compares favourably to the latest Readytech share price of $2.80.

The post Why brokers say these ASX growth shares are buys appeared first on The Motley Fool Australia.

More reading

• Why is the Allkem share price dumping 5% today?
• Our 4 favourite lithium ASX shares right now: Wilsons
• 2 stellar ASX growth shares that experts say are buys
• Allkem share price sinks 5% amid Mexico lithium deposit speculation
• Here’s which ASX lithium shares investors have been loading up on this month

Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX shares with pricing power may be in high demand this year. The tricky thing for investors and businesses to deal with is that inflation is widespread.

It’s not just energy prices that have gone up, but costs like wages, rent, the supply chain and so on, have risen.

Some businesses are not able to pass on price rises for higher costs to customers. They simply have to take it on the chin.

Some commodity businesses are good examples of this. Resource businesses have to sell their materials for the price they can get on the market. This sort of situation for a business is called being a ‘price taker’. In other words, that business has to take the price it can get rather than deciding on the price itself.

But, there are quite a few ASX shares that have “pricing power”.

What is pricing power?

Pricing power means that businesses have the ability to increase prices and pass on higher costs to customers. They can act as an inflation hedge.

For example, think of a business that sells wood furniture. If the price of timber and their supply chain costs go up, can the business charge a higher price for the furniture with little (or no) negative impact on its demand and financials?

Lots of ASX shares and industries are facing this question – can they pass on the higher costs to customers?

Can dairy businesses like cheesemakers and infant formula producers pass on the higher cost of milk?

Are banks able to pass on the full Reserve Bank of Australia (RBA) interest rate hikes without losing borrowers?

It’s these types of businesses that may be able to protect their profit during these difficult times.

Which ASX shares can pass on costs?

There are a number of examples of businesses worth pointing out.

Cloud accounting software business Xero Limited (ASX: XRO) has announced price increases for its markets of the United Kingdom, New Zealand and Australia.

Australian telco giant Telstra Corporation Ltd (ASX: TLS) announced that it was going to increase its prices for many customers in line with CPI inflation and would be reviewing a potential increase annually.

Gas pipeline owner APA Group (ASX: APA) is benefitting from inflation because its revenue is contracted to rise with inflation.

Transurban Group (ASX: TCL), which owns toll roads in Australia and North America, can increase prices in line with inflation.

Some ASX shares may have the capability to pass on costs to customers, but they may choose not to, to give their customers the best value and perhaps gain market share. Wesfarmers Ltd (ASX: WES) is an example of a business doing this.

Time will tell how long it takes for inflation to calm down in Australia and overseas.

The post Why is everyone talking about pricing power and which ASX shares have it? appeared first on The Motley Fool Australia.

More reading

• Market volatility getting you down? Analysts name 2 defensive ASX 200 shares to buy
• Down 7% in a month, is the Telstra share price in the buy zone?
• Down 46% in 2022, why ASX 200 tech share Xero is still my hero
• 2 ASX 200 growth shares analysts rate as buys
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended APA Group, Telstra Corporation Limited, Wesfarmers Limited, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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When it comes to dividend shares, the Australian share market isn’t short of options. But with so much choice, it can be hard to decide which ones to buy over others.

The good news is that the team at Morgans has done the hard work for investors and picked out some of the best dividend shares to buy now. 

Here’s why these dividend shares make Morgans’ best ideas list: 

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that has been given the thumbs up from Morgans is Dexus Industria.

It is the owner of a high quality portfolio of industrial properties. These properties are in-demand with end users, which is supporting strong earnings and attractive dividend payments. 

The broker currently has a buy rating and $3.25 price target on its shares. It commented:

DXI’s portfolio is valued at $1.76bn and is weighted 79% towards industrial and logistics assets. The weighted average cap rate is 5.1%; WALE 5.9 years; and occupancy 97%. DXI is trading at a discount to NTA, offers an attractive yield with solid underlying portfolio metrics and has near/medium-term growth opportunities via the development pipeline.

Morgans is forecasting dividends per share of 16.4 cents in FY 2023 and 16.9 cents in FY 2024. Based on the latest Dexus Industria share price of $2.40, this will mean yields of 6.8% and 7%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that Morgans has put on its best ideas list is HomeCo Daily Needs.

As its name implies, this property company has a focus on daily needs. These include neighbourhood retail properties, retail parks, and healthcare properties.

Morgans currently has an add rating and $1.56 price target on its shares. It explained:

HDN offers investors an attractive distribution yield which is underpinned by contracted rental income. Sites are also in strategic locations with strong population growth. The portfolio has exposure to ‘last mile’ logistics, as well as a significant land bank with future development potential (38% site coverage with a ~$500m development pipeline). 

In respect to dividends, the broker expects dividends per share of 8.3 cents in FY 2023 and 8.7 cents in FY 2024. Based on the latest HomeCo Daily Needs share price of $1.14, this will mean yields of 7.2% and 7.6%, respectively.

The post Broker names 2 ASX dividend shares to buy with ~7% yields appeared first on The Motley Fool Australia.

More reading

• Market volatility getting you down? Analysts name 2 defensive ASX 200 shares to buy
• Is the Coles share price a defensive ASX 200 buy right now?
• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy today
• Goldman Sachs gives its verdict on the Coles share price

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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With market volatility at high levels at the moment, investors may be interested in adding some defensive shares to their portfolio.

If you are, the two ASX 200 shares listed below could be worth considering. Here’s why analysts are bullish on them:

Coles Group Ltd (ASX: COL)

The first defensive ASX 200 share that could be a good option for investors is Coles.

It is of course the retail giant behind the Coles supermarket brand and a range of liquor retail brands such as Liquorland and Vintage Cellars.

Coles could be a good option for investors in the current environment due to the fact that it sells consumer staples. These are products that generally remain in demand with consumers whatever is happening in the economy. It also has positive exposure to inflation, unlike many other retailers.  

Analysts at Morgans are very positive on the company. They currently have an add rating and $20.00 price target on its shares.

In addition, the broker is expecting some attractive dividend yields in the coming years. Morgans expects fully franked dividends of 65 cents per share in FY 2023 and then 66 cents per share in FY 2024. Based on the latest Coles share price of $16.68, this will mean yields of 3.9% and 4%, respectively, over the next two years.

Telstra Corporation Ltd (ASX: TLS)

Another defensive ASX 200 share for investors to consider is Telstra.

Much like Coles and the products it sells, Telstra provides essential services to millions of Australians. Another positive is the recent introduction of inflation-linked pricing, which is likely to be good news in the current environment where inflation is rising strongly.

The team at Morgans are also positive on the telco giant. Its analysts currently have an add rating and $4.60 price target on the company’s shares.

And just like Coles, the broker is expecting attractive dividend yields for investors. It is forecasting another 16.5 cents per share dividend in FY 2023. Based on the current Telstra share price of $3.72, this equates to a 4.4% dividend yield.

The post Market volatility getting you down? Analysts name 2 defensive ASX 200 shares to buy appeared first on The Motley Fool Australia.

More reading

• Down 7% in a month, is the Telstra share price in the buy zone?
• Is the Coles share price a defensive ASX 200 buy right now?
• Top brokers name 3 ASX shares to buy next week
• Some investors think Telstra shares are boring. I beg to differ
• Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Apple Inc. (NASDAQ: AAPL) started Tuesday’s trading session up 2.6% before giving back some of those gains later in the morning. By market close, the Apple share price was sitting 0.66% higher. Worries over higher interest rates and the economy have sent Apple shares down by around 17% year to date.

There were reports out of China that demand for iPhone 14 Pro was strong and that there was lower demand for lower-priced models. Here’s what that might mean for Apple’s business.

So what

Reports surfaced Monday evening that Foxconn Technology Group, the manufacturer of iPhones in China, was shifting production to Pro models instead of the lower-priced standard iPhone 14. Investors should always take supply chain reports with a grain of salt, but this news could be legit, since it echoes similar reports of consumer demand trends in the U.S. for the new iPhones.

When the iPhone 14 first launched over a week ago, Apple’s website showed longer wait times for the high-end Pro models than for the standard models. Many stores sold out of their initial inventory of the Pro version, while some stores had plenty of lower-priced models.

Now what

Higher demand for the pricier Pro models could benefit Apple’s margins, but sales of iPhone 14 might be down overall. Specifically, Jefferies analyst Edison Lee noted that iPhone 14 sales in China are down 10.5% from the iPhone 13, based on new data.

Apple’s iPhone and services posted record revenue in the fiscal third quarter, which ended in June, with the active installed base of devices hitting new highs across all product categories. At least through the recent quarter, inflation didn’t seem to be affecting Apple customers’ ability to buy new iPhones, but management cited weakness in digital advertising with the services business and across its products.

While it’s still too early to know whether the iPhone 14 is a hit with customers, Apple doesn’t necessarily have to grow iPhone revenue to win. But it needs to keep growing its installed base of devices, which tends to lead to more sales of apps and other high-margin services.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Apple stock climbed today appeared first on The Motley Fool Australia.

More reading

• Why Apple stock rallied Monday
• This stock market investment strategy made money 100% of the time over the last century
• Why is everyone talking about Apple stock?
• Should you really buy Apple stock?
• Where will Apple be in 5 years?

John Ballard has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Like most sectors on the share market, S&P/ASX 200 Index (ASX: XJO) bank shares have been hurting recently.

Since the high in August, the Commonwealth Bank of Australia (ASX: CBA) share price is down around 10%, the National Australia Bank Ltd (ASX: NAB) share price is down around 7%, the Westpac Banking Corp (ASX: WBC) share price is down 7%, and the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is down 4%.

It’s a similar story for names like Bank of Queensland Ltd (ASX: BOQ) and Bendigo and Adelaide Bank Ltd (ASX: BEN), though Bendigo Bank is down 25% after a plunge following the release of its FY22 report.

With all that doom and gloom from the past few weeks, how are things shaping up for October?

Big profits expected

The big banks of ANZ, NAB and Westpac will see their financial year come to a close, with the year end being 30 September. They are expected to report at the end of October and at the start of November.

Banks typically earn billions of profit. Analysts are expecting that the recent interest rate hikes by the Reserve Bank of Australia (RBA) – and the passing on of those interest rates to borrowers – will show an increase in the net interest margin (NIM) for the ASX 200 bank shares.

The NIM shows how much profit a bank is making on its lending compared to the cost of the funding of that loan (which can come from sources like savings accounts).

Higher interest rates are being passed on to borrowers, but savers aren’t seeing the same scale of increases since the start of the interest rate rises a few weeks ago.

The Australian quoted WAM Leaders Ltd (ASX: WLE) lead portfolio manager Matthew Haupt who said:

Margins should be really good because of all the interest rate hikes coming through. The market has already discounted a lot of the impacts that will come through from the interest rate hikes.

Everyone is trying to guess direction, which gets back to what (Reserve Bank) governor Phil Lowe does. How hard he goes and whether they drive us into a deep recession or whether they pause… the biggest concern at the moment is the macro environment and the Australian housing market – that’s how investors are thinking about it.

The newspaper reported that WAM Leaders expects the cash rate to peak at 3.5% and that rate hikes will see the rise of house prices during the pandemic “completely reversed”.

On rising costs for ASX 200 bank shares, Haupt said:

It looks like they are all going to cop at least a 5% cost increase on wages, and you’d expect that Westpac would have to walk away from their target.

Latest WAM Leaders holdings

While investment allocations can change, at the end of August 2022, WAM Leaders owned CBA and NAB shares in its top 20 holdings. However, it did not own ANZ or Westpac shares. This may speak to where the Wilson Asset Management team is, or was, seeing an opportunity in the ASX 200 bank shares sector.

The post What’s the outlook for ASX 200 bank shares in October? appeared first on The Motley Fool Australia.

More reading

• Macquarie vs NAB shares: Which bank is the better buy right now?
• 5 things to watch on the ASX 200 on Wednesday
• Why did the Macquarie share price trail the other ASX 200 banks today?
• Analysts name 2 ASX dividend shares to buy today
• Does ANZ really have the best profit margins of the big four bank shares?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for options in the mining sector, then read on. The team at Morgans recently named some of their top picks from this side of the market.

Listed below are two of the mining shares that the broker has on its best ideas list:

BHP Group Ltd (ASX: BHP)

The Big Australian could be a mining share to buy according to Morgans. Its analysts like BHP due to its strong balance sheet and the diversity of its operations across both commodities and geographies. Morgans feels this makes BHP a relatively low risk option for investors in the space. It explained:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.

Morgans has an add rating and $48.00 price target on BHP’s shares.

South32 Ltd (ASX: S32)

Another option for investors to consider in the mining sector according to Morgans is South32. Its analysts also like this BHP-spinoff due to the diversity of its operations.

South32 also gets a thumbs up for the work management has done reshaping its portfolio and boosting its ESG credentials. The broker explained:

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX- listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings- linked dividend policy.

Morgans currently has an add rating and $5.50 price target on South32’s shares.

The post Morgans names the best ASX mining shares to buy appeared first on The Motley Fool Australia.

More reading

• ASX 200 iron ore miners rally as market rebounds on Tuesday
• Down 14% in a month, what’s next for the BHP share price?
• 5 things to watch on the ASX 200 on Tuesday
• Why BHP, Costa, Link, and Syrah shares are dropping
• BHP share price dips 4% in miserable Monday for ASX 200 miners

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Tesla, Inc. (NASDAQ: TSLA) were trading up over 4% earlier this morning before giving back some of those gains by early afternoon. By market close, the EV stock was up 2.51%.

What probably got the market off on a positive note was a small pullback in interest rates at the start of trading on Tuesday. Long-term U.S. Treasury rates have more than doubled year to date, which has pressured the valuations of expensive growth stocks like Tesla.

However, later in the morning, Reuters reported that Tesla planned to hold production at its Shanghai plant below full capacity. The market is trying to figure out what this might mean for Tesla’s business.

So what

Ongoing semiconductor shortages, resulting in many completed cars having to wait on chips before they can finish production, has been a big problem for car manufacturers. The chip shortage is expected to last into 2023, causing Honda Motor to cut 40% of its production recently, according to reports.

Reuters reported that Tesla plans to hold production at its Shanghai plant at 93% of capacity. Whether this signals production challenges or a lack of consumer demand is anyone’s guess at this point. What is certain is that the recent rise in interest rates is making it more expensive to purchase new vehicles, but this might not be a problem for high-income individuals who are interested in Tesla’s cars.

Now what

In July, CEO Elon Musk expressed optimism about the second half of the year, noting the potential for “record-breaking” results after achieving production records at the Fremont and Shanghai plants during the second quarter. Of course, that was before more data came out showing that inflation is still running too high. The Federal Reserve recently raised the fed funds rate again, with more rate hikes likely on the way.

Analysts expect Tesla to report record deliveries of 350,000 units for the third quarter. Investors will get new information about demand trends when the company releases the next update on deliveries, which should come out by Oct. 2.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock surged higher today appeared first on The Motley Fool Australia.

More reading

• 2 high-growth electric vehicle stocks to consider buying (other than Tesla)
• This stock market investment strategy made money 100% of the time over the last century
• Are you attracted to ASX losers?
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• This bold move could give Tesla an edge in battery production

John Ballard has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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