The S&P/ASX 200 Index (ASX: XJO) fell by 0.9% today to 5,937 points.

Today’s economic news was supplied by the Australian Bureau of Statistics (ABS). The data organisation said that total employment decreased by 227,700 people to 12.15 million people. Full-time employment decreased by 89,100 people whilst part-time employment decreased by 138,600 people.

The unemployment rate increased by 0.7 percentage points to 7.1% and the participation rate decreased by 0.7 percentage points to 62.9%. Monthly hours worked in all jobs decreased by 12.1 million hours to 1,604.7 million hours.

Prime Minister Scott Morrison warned today that it would take around two years to get back to pre-coronavirus employment levels.

Despite that negative news, some ASX shares managed to hit new heights:

Pushpay Holdings Ltd (ASX: PPH) share price jumps 10%

Electronic donation business Pushpay held its annual general meeting (AGM) today. The share price rose by 10% after providing an update. It’ll be headed for the ASX 200 soon enough if it keeps rising like this. 

The company reminded investors of its strong performance during FY20. This included a 32% increase of total revenue to US$129.8 million. The gross margin rose from 60% to 65% and the earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) increased by 1,506% to US$25.1 million.

The company is seeing an increase in demand for Pushpay’s services.

The big cause for the Pushpay share price growth today was because the company increased its guidance for the year ending 31 March 2021. Management were previously guiding that EBITDAF would be between US$48 million to US$52 million for FY21. That guidance was increased to between US$50 million to US$54 million.

Afterpay Ltd (ASX: APT) share price hits new record

The ASX 200 buy now, pay later business almost hit a share price of $60 in the morning, it finished up by 0.2%.

My colleague James Mickleboro covered two potential reasons why the Afterpay share price may have jumped.

The first was a broker note from Ord Minnett that said the share price could reach $64.70 over the next 12 months.

The other possible reason was that Afterpay emailed its customers today about the integration with Apple Pay.

Splitit Ltd (ASX: SPT) share price goes crazy

The Splitit share price ended the day up 108.3% to finish at $1.38. What caused this massive increase in the valuation of Splitit? An agreement with Mastercard.

The buy now, pay later business announced that it has signed a multi-year agreement with Mastercard to accelerate the adoption of its instalment system around the world.

Splitit will be integrated into Mastercard’s suite of technology as a network partner for merchants both in store and online.

However, Splitit warned that at this point in time it isn’t able to determine how economically material the partnership will be due to the “contingent nature” of results that may be generated.

Mastercard executive vice president of global merchant solutions and partnerships Zahir Khoja sounded positive about the deal, “This partnership with Splitit will help to drive higher transaction volumes for businesses and deliver budgeting solutions in the moment consumers are seeking them.”

The largest ASX 200 movements of the day

It was a mixed day in the ASX 200.

At the green end: the Perenti Global Ltd (ASX: PRN) share price went up 4.3%, the Austal Limited (ASX: ASB) share price went up 3.7%, the QBE Insurance Group Ltd (ASX: QBE) share price climbed 3.6%, the SKYCITY Entertainment Group Limited (ASX: SKC) share price rose 3.1% and the Appen Ltd (ASX: APX) share price gained 3%.

However, there were also some negative movements. The Vocus Group Ltd (ASX: VOC) share price dropped 6.25%, the CSR Limited (ASX: CSR) share price fell 5.4%, the Polynovo Ltd (ASX: PNV) share price declined 5.3%, the Southern Cross Media Group Ltd (ASX: SXL) share price went down 5% and the AP Eagers Ltd (ASX: APE) share price fell by just under 5%.

More reading

• Is the Cochlear share price in the buy zone now that it’s down 23%?
• Top brokers have just downgraded Carsales.Com and these outperforming ASX 200 stocks
• Reserve Bank of Australia almost halted property sales in April
• Diversify your portfolio with 3 top ASX 200 shares from 3 sectors
• Broker’s latest buy ideas of ASX stocks you probably not heard of

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Austal Limited. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended Sky City Entertainment Group Ltd. 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 Cochlear Limited (ASX: COH) share price has undergone a significant market correction since late February.

The medical device company’s share price fell from $251.55 on 19 February to $159.41 in late March. Since then it has regained some of its losses and is now trading at $194.55. However, its share price recovery over the past few months has been weak compared to other companies listed on the S&P/ASX 200 Index (ASX: XJO).

Cochlear has been significantly impacted by the coronavirus pandemic. This was caused by the sharp reduction in elective surgeries, but the situation is now improving in some markets.

With its share price down by 23% since the COVID-19 pandemic began, is the Cochlear share price now in the buy zone?

Cochlear hit hard in the first wave of the pandemic

Cochlear has witnessed a significant disruption to its business due to the coronavirus crisis. Elective surgeries, including those used for Cochlear implants, have been deferred across a number of its operating countries.

In response, Cochlear successfully raised $880 million from an institutional placement in late March. This has significantly strengthened its balance sheet and places it well to weather any COVID-19 headwinds.

In a May market update, Cochlear revealed that the company had suffered a significant decline in Cochlear implant surgeries in the US and Western Europe. Sales across its business divisions in April fell by around 60% on the prior corresponding period. As most elective surgeries had been postponed, Cochlear implant unit sales declined by 80% across developed markets.

Signs of improving market conditions

On a more positive note, implant surgeries are restarting in some major developed markets including the US, Germany and Australia.

Elective surgeries have continued in South Korea and Japan, despite a slowdown in Japan in late April. The Chinese market is also bouncing back. 

So, is the Cochlear share price a buy right now?

With Cochlear’s share price still well below it’s February price pre-COVID-19, I think the market currently offers investors a reasonably good buy. However, there could be further market volatility. So I would only advise purchasing shares with a long-term investment lense.

As the proportion of the global population over 65 continues to grow, the demand for quality hearing products and solutions will grow over the coming decades. Cochlear has an entrenched market position due to its strong brand and market-leading position. It also operates in an industry with high barriers to entry.

More reading

• ASX 200 falls 0.9%, Afterpay share price hits new record
• Top brokers have just downgraded Carsales.Com and these outperforming ASX 200 stocks
• Reserve Bank of Australia almost halted property sales in April
• Broker’s latest buy ideas of ASX stocks you probably not heard of
• 3 undervalued ASX growth companies to add to your portfolio

Phil Harpur owns shares of Cochlear Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. 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 S&P/ASX 200 Index (Index:^AXJO) snapped a two-day winning streak which wasn’t helped by broker downgrades of a number of popular ASX stocks.

The top 200 benchmark fell 0.9% on Thursday as it tried and failed to reclaim the psychologically important 6,000 level.

Experts remain divided on whether the fundamentals justify the big market bounce from its bear market low 13 weeks ago.

But there’s little doubt that some outperforming ASX shares are overbought, according to these leading brokers.

Downshifting to neutral

One runaway that got downgraded today by Macquarie Group Ltd (ASX: MQG) is the Carsales.Com Ltd (ASX: CAR) share price.

Shares in the online auto classifieds group surged by nearly 70% since the market bottomed and its latest upbeat trading update is adding fuel to the red-hot fire.

Management reported a sharp uptick in lead volumes as demand for personal transport jumped in this COVID-19 era.

But the analysts at Macquarie think these tailwinds are one-off in nature and cannot be sustained.

“We see the good news in the update as a boost to near-term earnings, although longer-term earnings implications are more modest,” said the broker.

Macquarie cut its recommendation on the stock to “neutral” from “overweight” with a price target of $18 a share.

Good stock at wrong price

Another outperformer that got downgraded following its latest trading update is Ansell Limited (ASX: ANN).

Citigroup lowered its recommendation on the stock to “neutral” from “buy” despite the good demand outlook for the company’s gloves and protective equipment.

Management reiterated its FY20 guidance and said its chief executive Magnus Nicolin will delay his retirement by six months to steer the company through to the other side of the COVID-19 crisis.

The broker also praised Ansell for not engaging in price gouging, like its rivals, as such a move is only good in the short-term but harmful in the longer run.

Nonetheless, the 65% surge in the Ansell share price from the market bottom (which takes it to near record highs), prompted Citi to downgrade the stock.

The broker’s price target on Ansell is $35 a share.

Mega surge prompts downgrade

Meanwhile, the Megaport Ltd (ASX: MP1) share price is also trading above its pre-coronavirus high. This prompted Morgans to downgrade its call on the stock to “hold” from “add”.

The stock outperformed as demand for its services jumped with more people working from home and needing connection to the cloud.

“MP1’s share price has rallied ~122% in the last twelve months and performed strongly after dropping significantly in the March market selloff,” said Morgans.

“We continue to rate the business and outlook positively. However, the MP1 share price now sits within 10% of our revised price target.”

The broker’s 12-month price target on the stock is $14.14 a share.

More reading

• ASX 200 falls 0.9%, Afterpay share price hits new record
• Is the Cochlear share price in the buy zone now that it’s down 23%?
• Reserve Bank of Australia almost halted property sales in April
• Broker’s latest buy ideas of ASX stocks you probably not heard of
• Can these 5 FY20 dogs of ASX 200 bounce back in the new financial year?

Brendon Lau owns shares of Ansell Ltd. and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Ansell Ltd., carsales.com Limited, and MEGAPORT FPO. 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 Reserve Bank of Australia (RBA) was close to suspending the entire Australian property market in April, according to reporting from the ABC.

The RBA has been putting on a happy face of sorts during the recent economic and financial turmoil. 

But the reporting (obtained under Freedom of Information laws) reveals that behind closed doors, the RBA’s outlook was less optimistic. 

Speaking notes from RBA Assistant Governor, Luci Ellis report her stating:

“Demand for new housing has declined substantially since mid-March and is expected to decrease further [with] sharp falls in sales, enquiries and foot traffic [and] increases in contract cancellation rates… Housing prices are expected to decline by around 7 per cent over the next year. Prices are expected to remain around 10 per cent lower than at the February Statement over the forecast horizon”.

Shockingly, the ABC also reports that the RBA was advised to consider implementing a ‘pause’ to the housing market. This was in order to dampen reports of a ‘housing collapse’ which had the potential to spook nervous investors.

Notes from RBA economist, Nick Garvin reveal that Garvin wrote to the RBA board and recommended the pause. Garvin stated, “I think it’s dangerous for regulators to be reporting on housing prices as though the market is currently functioning.”

The article also reports that this attitude towards housing may have influenced the government’s HomeBuilder program, announced in early June. Under HomeBuilder, new home constructions, as well as renovations, can attract government grants up to $25,000.

What does all this mean for ASX shares?

Although they are not too closely correlated, the housing market and ASX share market walk hand in hand to an extent. The real dangers (in my view) of a housing collapse stem from what’s known as the wealth effect. This refers to the tendency of people to ‘feel poorer’ if the assets they own fall in value. Although many people will be materially unaffected if property value drops, they will be less inclined to spend and more inclined to save or pay off the mortgage.

This is bad news for the Australian economy, and therefore bad news for the ASX-listed companies that dwell within it.

We’ll have to wait and see for the full impacts from the coronavirus pandemic on Australian house prices. But I think early signs say the worse is behind us. The real test will be when government assistance programs like JobKeeper are wound back, come September.

More reading

• ASX 200 falls 0.9%, Afterpay share price hits new record
• Is the Cochlear share price in the buy zone now that it’s down 23%?
• Top brokers have just downgraded Carsales.Com and these outperforming ASX 200 stocks
• Broker’s latest buy ideas of ASX stocks you probably not heard of
• Can these 5 FY20 dogs of ASX 200 bounce back in the new financial year?

Motley Fool contributor Sebastian Bowen 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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If you’re looking to generate strong long term returns from the share market, then I think the three ASX shares listed below are worth considering.

Here’s why I would buy and hold them until at least 2030:

Altium Limited (ASX: ALU)

The first ASX share to consider buying with a long term view is Altium. It is a growing software company which generates the majority of its revenue from its Altium Designer platform. This is an award-winning printed circuit board (PCB) design software platform which is experiencing very strong demand thanks to the Internet of Things market. And with this market expected to continue its rapid growth for many years to come, I expect Altium to profit greatly from increasing subscription numbers. In addition to this, the company has a few other businesses which have the potential to contribute strongly to its earnings over the next decade.

CSL Limited (ASX: CSL)

Another share to consider buying and holding is CSL. I think the leading biotherapeutics company is a great long term option due to its high quality businesses and their portfolio of life-saving therapies and vaccines. Another big positive is that CSL invests materially in research and development. This means the company has a large number of therapies in its pipeline that have the potential to generate significant sales over the next decade. Overall, I believe this leaves CSL well-positioned to continue growing its earnings at a solid rate throughout the 2020s.

Kogan.com Ltd (ASX: KGN)

A final share to consider as a buy and hold investment is Kogan. I think the rapidly growing ecommerce company is one of the best long term options due to its exposure to the structural change that is happening in the retail industry. In addition to this, I like Kogan because of its strong product offering, growing active customer base, and its merger and acquisition opportunities. Combined, I believe Kogan is capable of growing its earnings at an above-average rate over the next decade and beyond.

More reading

• 3 ASX shares I’d buy because of the online sales boom
• How the ASX 200 can help first home buyers save for a deposit
• Up 250% since March: is it too late to buy Kogan shares?
• 2 ASX shares to buy for beginners
• Why Zip Co and these All Ords shares have doubled in 12 months

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 Altium and CSL Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. 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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