The S&P/ASX 200 Index (ASX: XJO) has returned to form on Thursday and is charging notably higher in late morning trade. At the time of writing the benchmark index is up 0.7% to 5,962.7 points.

Four shares that are climbing more than most today are listed below. Here’s why they are racing higher:

The Afterpay Ltd (ASX: APT) share price is up 5.5% to $69.65. Investors have been buying the payments company’s shares following the release of a bullish broker note out of Morgan Stanley. According to the note, the broker has upgraded Afterpay’s shares to a buy rating and lifted its price target on them from $36.00 to $101.00. It is pleased with its better than expected credit quality control performance and sales growth acceleration. It also sees opportunities for M&A activity following its capital raising.

The Evolution Mining Ltd (ASX: EVN) share price has risen 4% to $6.29. The catalyst for this has been another rise in the gold price overnight. The price of the precious metal hit a nine-year high following increasing demand for safe haven assets. It isn’t just Evolution on the rise today, the S&P/ASX All Ordinaries Gold index is up a sizeable 2.5% at the time of writing.

The Netwealth Group Ltd (ASX: NWL) share price has jumped 6% to $9.82. This follows the release of the investment platform provider’s latest quarterly update. According to the release, Netwealth’s funds under administration (FUA) stood at $31.5 billion at the end of the fourth quarter. This means the company grew its FUA by $8.2 billion or 35% during the financial year. This includes a negative market movement of $0.9 billion for the year.

The Praemium Ltd (ASX: PPS) share price has rocketed 15% higher to 42.5 cents. Investors have been buying this investment platform provider’s shares after it announced the friendly takeover of Powerwrap Ltd (ASX: PWL). Praemium has offered 7.5 cents cash per Powerwrap share and 1 Praemium share for every 2 Powerwrap shares held. This values Powerwrap at $55.6 million or 26.44 cents per share, which represents a 51.1% premium to its last close price. The Powerwrap board has urged shareholders to accept the offer, in the absence of a superior proposal.

More reading

• 2 ASX shares that could flourish in an Australian recession
• 3 dependable, blue chip ASX shares for uncertain times
• Praemium share price rockets after agreeing $55.6 million Powerwrap takeover
• Gold jumps to 9-year high with record highs in sight
• Leading broker says Afterpay share price can hit $101

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Praemium Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and Netwealth. The Motley Fool Australia has recommended Praemium 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.

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The Commonwealth Bank of Australia (ASX: CBA) share price has risen by more than 30% in the past couple of months after the heavy sell-off through February and March, which saw Commonwealth Bank shares lose almost 40% of their value.

The Commonwealth Bank share price recovery has been strong, steadily clawing back from its low of $54.26 on 23 March to reach a price above $70 at the time of writing. While CommBank shares are still some way off their pre-COVID-19 price, the share price is still above what it was in late March last year.

Lending landscape

CommBank recently announced it was offering customers who could not meet their loan repayments an extra four months. While it is good that the banks at large are extending support for retail and business customers, it may actually also benefit them in the long run by prolonging the repayment period, meaning more interest income over the lifetime of the loan.

The borrowing rates of the big four banks have also fallen this year, as the RBA cut the cash rate by a further 50 basis points and has held the official cash rate steady at a record low of 0.25%. This means CommBank and its peers have sufficient access to capital to keep lending.

Dividend payments

Commonwealth Bank is one of the most popular dividend paying stocks on the ASX. With shares currently trading at $70.66, the trailing fully franked dividend yield for CommBank shares is 6.11%, which grosses up to 8.73% when franking credits are taken into account.

Earlier in the year, CommBank maintained it would not only be sustaining its interim dividend, but also offering a dividend payout ratio above its target. Coming into the pandemic, CommBank boasted the strongest balance sheets of the big banks, thus making it well prepared for COVID-19.

Despite this, analysts expect that the country’s largest bank will need to cut its full year dividend. Commonwealth Bank is being forecast to pay total dividends of $3.50 for the financial year ending 30 June 2020. This is a 19% decrease on it its payout in FY2019 of $4.31. The bank is expected to decrease dividend payments even further to $2.65 in FY2021.

Foolish takeaway

The Commonwealth Bank share price has been moving steadily higher in recent times to regain much of what it lost, however there are still plenty of headwinds facing the economy. Heavy government stimulus is expected to end come September and this will provide a clearer view of the current economic state. All eyes will be on Commonwealth Bank come 12 August as the bank releases its full year results.

More reading

• ASX investors have been buying these 5 international shares
• ASX 200 down 0.5%: Afterpay completes placement, big four banks tumble
• AFG share price flat despite revealing 30% increase in lodgements
• Why the CBA share price is worth watching this quarter
• These ASX shares are swept up by the new Victorian COVID-19 lockdown

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has rebounded from yesterday’s decline and is on course to record a solid gain. At the time of writing the benchmark index is up 0.75% to 5,965.5 points.

Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

The GWA Group Ltd (ASX: GWA) share price is down 3% to $2.57. This appears to have been driven by a broker note out of the Macquarie equities desk this morning. According to the note, the broker has retained its neutral rating but slashed the price target on the household products company’s shares to $2.90. It made the move after adjusting its estimates to reflect current housing activity.

The Meridian Energy Ltd (ASX: MEZ) share price has sunk 9% lower to $4.45. Investors have been selling the renewable energy company’s shares after Rio Tinto Limited (ASX: RIO) gave notice that it will be winding down the Tiwai Point Aluminium Smelter. As a result, the mining giant will be terminating its contract with Meridian Energy on 31 August 2021.

The Treasury Wine Estates Ltd (ASX: TWE) share price is down 2.5% to $11.02. This morning the wine giant provided the market with an update on its performance in FY 2020. Management advised that it expects its earnings before interest, tax and the agricultural accounting standard SGARA (EBITS) to be between $530 million and $540 million in FY 2020. This will be an 18.5% to 20% decline on FY 2019’s EBITS of $662.7 million. This reflects the impact of the COVID-19 pandemic, which has had a significant impact on its trading performance across all geographies throughout the second half.

The WiseTech Global Ltd (ASX: WTC) share price has fallen 2% to $21.13. Investors have been selling the logistics solutions company’s shares after analysts at Ord Minnett downgraded them to a lighten rating with a $19.60 price target. The broker believes the market is expecting too much from WiseTech in FY 2021 and expects it to fall short of consensus estimates.

More reading

• Treasury Wine share price on watch on FY 2020 earnings update
• The WiseTech share price is up 15% in a week. Too late to buy?
• Here’s how to play China’s V-shaped growth story
• Why Lovisa, PointsBet, Transurban, & WiseTech shares are racing higher
• What’s next for WAAAX shares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates Limited. The Motley Fool Australia owns shares of WiseTech Global. 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.

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The resurgence of coronavirus in Victoria has investors once again taking stock of potential economic impacts of the pandemic. When it comes to investing, and the outlook is particularly uncertain, it can often pay to consider life’s necessities. These are the products and services we will always need. Basic human needs for food, shelter, and internet access must continue to be met regardless of the economic climate. 

Defensive, blue chip ASX shares often cater to these needs. This makes them resistant to economic downturns. Companies in the consumer staples, healthcare, utilities, and telecoms sectors are somewhat insulated from economic fluctuations. Consumers may switch to cheaper options, but they can’t go without them altogether. On that note, let’s take a look at 3 dependable, blue chip shares to consider adding to your portfolio for these uncertain times. 

3 blue chip shares to buy during uncertain times

Coles Group Ltd (ASX: COL)

The Coles share price proved resilient during the February/March market crash. This was perhaps not surprising given shelves were stripped bare at the time due to consumers stockpiling. The rush on groceries prompted by lockdowns pushed Coles’ group sales up 12.9% in the third quarter giving total revenue of $9.2 billion.  

Coles operates 2,500 retail outlets nationally, including 800 supermarkets, 900 liquor stores, and more than 700 fuel and convenience retailers (Coles Express). Supermarket sales increased by 13.1% in the March quarter, giving the division its 50th consecutive quarter of comparable sales growth. Liquor sales were up by 7.2% and Express sales up 4.3%. 

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price has recovered strongly from the market downturn. Wesfarmers is the company behind Bunnings, Kmart, Target, Officeworks and the online superstore Catch. It’s also the former parent company of Coles but after a series of selloffs, now only retains 4.9% of the supermarket chain. Both Bunnings and Officeworks recorded significant sales growth in the second half to early June. Bunnings sales were up 19.2% and Officeworks sales were up 27.8%. 

Lockdown restrictions have resulted in vast numbers of Australians spending increased time living and working at home. Consequently, many have sought to improve their surrounds. This has led to a surge in DIY projects and home office upgrades. Whilst Kmart and Target have struggled during the pandemic, recent easing of restrictions have resulted in improving sales momentum from around early June as customer footfall in shopping centres increased. 

Woolworths Group Ltd (ASX: WOW)

Woolworths is the larger of the two major supermarket chains, operating 995 supermarkets across Australia. Including its liquor and Big W brands, Woolworths is behind some 3,000 stores across the country. The Woolworths share price has also proven fairly resilient, but has not recovered as strongly as the Coles share price since the March bear market. 

Woolworths reported a 10.7% increase in total, third quarter sales. The Australian food business saw growth of 11.3%, Big W increased sales by 9.5%, and liquor sales rose 9.5%. The hotels business saw a 12.9% drop in sales due to the closure of venues. Sales growth continued in April although moderated from rates seen in March. 

Foolish takeaway

Whilst these ASX blue chip shares might not deliver the heady, short-term returns offered by the likes of Afterpay Ltd (ASX: APT), given we are facing such an uncertain economic outlook, I feel they represent solid, defensive additions to a diversified portfolio. 

More reading

• 2 ASX shares that could flourish in an Australian recession
• Why Afterpay, Evolution, Netwealth, & Praemium shares are racing higher
• Leading broker says Afterpay share price can hit $101
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 drops 1.5% today, Afterpay falls 3%

Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Wesfarmers Limited, and Woolworths 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.

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The NextDC Ltd (ASX: NXT) share price rocketed up to to all-time highs in June, pushing through the $10 barrier before falling slightly at month’s end. During June, the Australian data centre operator’s market cap exploded through the $5 billion mark, pushing it into the ASX 100 for the first time ever. The share price in June finished at $9.88, up above 70% since its lows in March.

Since the end of June, the NextDC share price has gone from strength to strength, reaching its highest ever price at $11.44. This represents a 73% increase for the year.

What does NextDC do?

NextDC is an Australian data centre operator that provides data centre outsourcing solutions, connectivity services and infrastructure management software to global cloud-computing businesses, enterprise and government clients.

The company has a strong focus on energy efficiency and sustainability through renewable energy sources and is aiming for its operations to be 100% driven by renewable energy. As such, NextDC’s corporate operations have been certified carbon neutral under the Australian Government’s Carbon Neutral Initiative.

Yet more contract wins

As recently as 1 July, NextDC announced another material customer contract win in NSW. The company advised that the contracted commitments at its NSW data centre facilities have now increased by approximately 4MW, to more than 36MW-with options to increase to 60MW.

This follows on from contract wins in May and March for Victoria. The company also completed a $672 million equity raise in April.

Commenting on the recent contract wins, CEO and managing director Craig Scroggie stated: “This reflects the nature of NEXTDC’s digital infrastructure business model, which continues to build long term value through contracted capacity and tangible asset backing.”

The pandemic and resulting rise in remote work arrangements has caused increased demand for NextDC’s services, which could help explain the stock’s meteoric rise. Brokers are evidently still keen on NextDC shares, with Goldman’s analysts retaining their buy rating in early July.

At the time of writing, the NextDC share price is continuing to break barriers as it surges upwards towards the $11.50 mark.

More reading

• 3 high quality ASX 100 shares to buy right now
• Where to invest $1,000 in ASX tech shares today
• Why NEXTDC and these high flying ASX shares just hit record highs
• 3 ASX tech shares to buy and hold
• These were the 5 best performing ASX shares last week

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

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