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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.

On July 21, Amazon (NASDAQ: AMZN) announced that it would buy One Medical in a deal valued at $3.9 billion. Its purchase of a tech-powered healthcare company is a step in a direction that many investors have been calling for Amazon to take.

Healthcare services promise to be more profitable than Amazon’s e-commerce segment, which has been weighing on the company’s profit margins. In contrast, its web services segment has carried the load. Let’s look at how this move combines with a few more recent changes to tell a story of an Amazon that’s emphasizing profitability.

Investing in a tech-infused healthcare services business

E-commerce sales have always been a thin-margin business for Amazon. That could explain why its operating profit margin has stayed below 10% for the past 10 years. To make matters worse, it’s becoming even more expensive to sustain that segment. As inflation has taken hold, Amazon’s labor, fuel, and fulfillment input costs have increased substantially in the last year.

AMZN Operating Margin (Quarterly) data by YCharts.

In its most recent quarter, which ended on March 31, Amazon’s shipping costs increased by 14% while its number of units shipped remained unchanged. In other words, shipping each item costs Amazon roughly 14% more. Given the relatively negative outlook for e-commerce sales, investors can be pleased with Amazon’s latest decision to purchase the healthcare services company.

According to Neil Lindsay, senior vice president of Amazon Health Services, in a press release:

We think health care is high on the list of experiences that need reinvention. Booking an appointment, waiting weeks or even months to be seen, taking time off work, driving to a clinic, finding a parking spot, waiting in the waiting room then the exam room for what is too often a rushed few minutes with a doctor, then making another trip to a pharmacy — we see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days.

Moreover, service businesses tend to be higher-margin and less capital-intensive. Costs also tend to be variable rather than fixed, protecting any decreases in revenue. That could be more of what investors like to see from Amazon as its fulfillment centers require large capital investments up front and are expensive to maintain even if sales fall. That may explain why operating income fell to $3.7 billion in the most recent quarter from $8.9 billion in the same quarter the prior year.

Shareholders show their approval

This purchase follows a story by The Wall Street Journal that said Amazon was reducing the number of private-label items it sells on its website. Those products tended to be lower-margin, lower-priced items that were becoming more expensive to fulfill. The business was also causing Amazon regulatory scrutiny, because it was said to be competing against third-party sellers that list similar products on the site.

Investors are cheering these recent moves; Amazon’s stock has been up 12.7% in the past month. Nevertheless, many hope this is just the beginning with similar decisions ahead.

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

The post The genius move Amazon shareholders have been hoping for appeared first on The Motley Fool Australia.

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• Amazon is bowing to regulators. Here’s what it means for shareholders
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Parkev Tatevosian 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 Amazon. The Motley Fool Australia has recommended Amazon. 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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One of the leading brokers, Goldman Sachs, has warned about what may happen next with the iron ore price.

According to Australian Financial Review and Bloomberg reporting, the broker thinks that problems in the Chinese property sector may mean bad news for the iron ore price.

Some of the biggest iron ore miners in the world are listed on the ASX, including BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG).

The iron ore price has been falling for a while already. Since early June 2022, the iron ore price has fallen by around US$40 per tonne.

Why could the iron ore price keep going lower?

According to the reporting, the broker thinks there will be a “significant surplus” of iron ore in the second half of the year, which could mean that the iron ore price gets pushed significantly lower.

How much of a surplus could the market see? Goldman thinks there will be an excess of 67 million tonnes for the rest of 2022, compared to a deficit of 56 million tonnes in the first half.

Goldman Sachs puts this down to both weakness in the Chinese real estate sector and a rapid decline in steel demand outside China. The real estate issue was partly caused by the government’s work on “excessive debt” in the sector, according to the broker.

Chinese mortgage holders are now reportedly withholding payments on unfinished housing.

Over the next three and six months, Goldman Sachs was previously expecting the iron ore price would reach US$90 per tonne and US$110 per tonne. However, the broker now expects this to be US$70 per tonne and US$85 per tonne. It’s currently around US$105 per tonne.

Goldman wrote that the Chinese real estate sector is responsible for around a third of China’s steel and iron ore demand. This represents around a quarter of global seaborne demand.

While this could hurt, the broker doesn’t think the iron ore price will be as bad as several years ago in 2014 and 2015, according to the reporting.

Iron ore mining share snapshot

Since 15 July 2022, the Fortescue Metals Group share price has gone up 14.5%.

Over that same time, the Rio Tinto share price has risen 6.1%.

The BHP share price has also gone up by around 6% since 15 July 2022.

Each of these businesses is due to hand in their results in reporting season over the next few weeks.

The post Top broker issues new warning on outlook for iron ore price appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why did the BHP share price have such a cracking session today?
• Rio Tinto share price climbs ahead of tomorrow’s earnings update. Here’s what to watch
• 5 ASX 300 shares this fundie has been buying at bargain prices
• Here’s the Fortescue dividend forecast through to 2024

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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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With coal prices at record levels this year, a number of miners of the black gold are printing money. And lots of it! In light of this, the market is expecting some big dividends from coal miners.

One of those is ASX 200 coal miner Coronado Global Resources Inc (ASX: CRN).

What is expected from the Coronado Global dividend?

While miners are known for providing big dividend yields when times are good, the Coronado Global dividend could be one of the largest you’ll ever see.

That’s the view of the team at Goldman Sachs, which are expecting mouth-watering yields from the coal miner’s shares in FY 2022 and FY 2023.

According to the note, the broker has a buy rating and $2.15 price target on the company’s shares.

Based on the current Coronado Global share price of $1.43, this implies potential upside of 50% for investors over the next 12 months. And that’s before dividends.

A 50% yield?

Goldman has pencilled in dividends per share of 53 US cents in FY 2022 and then 30 US cents in FY 2023. This currently equates to 76.5 Australian cents and 43.3 Australian cents, respectively.

So, with the Coronado Global share price trading at $1.43, Goldman is forecasting staggering dividend yields of 53.4% in FY 2022 and 30.3% in FY 2023.

The broker expects this to be underpinned by very strong free cash flow generation thanks to sky high coal prices. It forecasts a “2022/23E FCF yield of c.60%/30% (c.50%/35% at spot) driven by our supportive view on met coal and also pricing lags, but also an expected operational turnaround over the medium term.”

All in all, thanks to this and its “compelling valuation”, Goldman Sachs believes Coronado Global shares could be a top option for investors that are looking for dividends and aren’t averse to investing in the resources sector.

The post The ASX 200 share tipped to provide a stunning 50% dividend yield appeared first on The Motley Fool Australia.

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• Leading brokers name 3 ASX shares to buy today
• ASX 200 midday update: Brickworks higher, IAG drops on prelim results, Zip rockets
• Coronado share price tumbles 8% despite record quarterly revenue
• Here are the top 10 ASX shares today
• Here are the top 10 ASX shares today

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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The Westpac Banking Corp (ASX: WBC) share price will be one to watch on Wednesday.

This follows the release of the banking giant’s market update this morning.

What did Westpac announce?

This morning Australia’s oldest bank released an update on a number of matters. This includes the status of the bank’s Customer Outcomes & Risk Excellence (CORE) program, new climate commitments and sector financed emissions targets, its digital capabilities and plans.

In respect to its CORE program, the bank revealed pleasing progress on a number of items. These are being designed to ensure that Westpac is a well-run business where risk is actively managed.

Improvements include a sharp reduction in high-rated issues, significantly better data quality management, and a modest reduction in key controls requiring improvement.

Climate focus

As for its climate commitments, Westpac is aiming to become a net zero bank. It plans to transition its electricity to 100% renewables by 2025, reduce supply chain emissions, and support employee emission reductions.

The work is already underway, with Westpac reducing its scope 1 and 2 emissions by 58% since 2016.

But it won’t stop there. The bank is also supporting customers in their transition to net zero and is aiming to become the transition partner of choice.

It also revealed that there will be zero lending to companies with >5% of their revenue coming directly from thermal coal mining by 2030.

Digital improvements

Westpac has some bold digital plans underway. This includes making digital options for customers and bankers to do business online, expanding access, and reducing cybercrime.

The bank all talked up its Westpac One Bank Platform and its digital mortgage offering. This aims to provide an unconditional mortgage approval in as little as 10 minutes.

The post Westpac share price on watch following market update appeared first on The Motley Fool Australia.

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More reading

• Here are 2 ASX 200 dividend shares to buy according to experts
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• Own Westpac shares? Why the major bank could soon make a crypto splash
• Why did the ANZ share price smash the other ASX 200 banks today?
• RBA in the spotlight; and Westpac hikes fixed rates. Scott Phillips on Nine’s Late News

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 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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The Woolworths Group Ltd (ASX: WOW) share price has been trading sideways since the announcement of a new acquisition last week.

This is despite the deal to acquire digital out of home media company Shopper Media Group for $150 million getting the seal of approval from a leading broker.

According to a note out of Goldman Sachs, in response to the deal, its analysts have retained their conviction buy rating and $40.50 price target.

Based on the current Woolworths share price of $36.98, this implies potential upside of almost 10% over the next 12 months.

What is the broker saying about Woolworths’ latest acquisition?

Goldman Sachs was pleased with the deal, particularly given its positive view on the company’s retail media business. It has previously spoken highly of this side of business and believes it has significant growth potential.

The broker commented:

We note that this transaction is strategically in line with our view of the retail media business being the next material growth lever for WOW. In our current model, we have factored in A$1.1bn sales, with 30% EBIT margin, in 2030 to be contributed from WOW’s retail media business.

Moreover, discounting back valuations to 2023E after applying a EV/EBIT multiple of 20x, we value the retail media business at A$4bn in our SOTP, thereby contributing c.6% to WOW’s EV.

Though, it is worth noting that the transaction isn’t a done deal and remains subject to ACCC approval and the satisfaction of customary closing conditions. But if all goes to plan, completion is expected to occur by the end of calendar year 2022.

Why is Goldman bullish on the Woolworths share price?

Goldman is bullish on the Woolworths share price due to its belief that the company is well-placed for growth and trading on an attractive valuation. It concludes:

Our positive thesis on WOW is based on 1/ Superior growth expectations for the core business, 2/ longer term potential for adjacent revenues with higher margins and 3/ opportunity for valuation re-rating from current levels of low historical premium vs. COL.

The post Own Woolworths shares? Here’s what a top broker is saying about its latest acquisition appeared first on The Motley Fool Australia.

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More reading

• Why the Woolworths share price will be on watch today
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• Woolworths share price falls despite ‘important’ $150m acquisition

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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The Megaport Ltd (ASX: MP1) share price has been in sensational form this month.

Since the start of July, the elasticity connectivity provider’s shares have rallied a massive 55% higher.

This has been driven largely by the release of a stronger than expected quarterly update.

Can the Megaport share price keep rising?

The good news is that one leading broker believes that the Megaport share price is far from peaking.

According to a recent note out of Goldman Sachs, its analysts have retained their buy rating and lifted their price target on the company’s shares to $9.60.

Based on the current Megaport share price of $8.50, this implies potential upside of 13% for investors.

What did the broker say?

Goldman was impressed with Megaport’s performance in the fourth quarter and appears confident that its strong revenue growth will continue. It commented:

The improvement in the sales cadence of core products (ex MVE) across both direct/indirect channels was the key highlight of the result, offsetting the marginally weaker momentum in MVE product

Nevertheless, we do see this as a net improvement for the sales trajectory, particularly given uncertainty following recent MP1 mgmt. changes and slowing US enterprise IT spending (GS tracker). We now forecast FY23/24/25E revenue growth of +39/35/30%, with the partner channel and MVE products remaining key medium term drivers.

In addition, the broker was pleased with its surprise operating profit and believes this “de-risks funding concerns” and should be a catalyst to closing “the valuation gap between unprofitable/profitable tech.”

All in all, Goldman is bullish on the company’s outlook and the Megaport share price. It concludes:

We remain positive on the product leadership of the company, and the rapidly growing NaaS/SD-WAN addressable markets, while await further updates on the revenue growth strategy (incl. MVE/Partner channel ambitions) at the August result. Stay Buy

The post Up 50% this month, is it too late to buy Megaport shares? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy today
• Do these 2 All Ords ASX shares offer a hefty upside?
• Brokers says the Megaport share price can keep charging higher
• Why Iluka, JB Hi-Fi, Megaport, and Zip shares are racing higher

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 positions in and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. 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 searching for some dividend shares to buy, then you may want to look at the two listed below.

These dividend shares have been rated as buys by experts and tipped to provide attractive dividend yields.

Here’s what you need to know about them:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share to look at is Baby Bunting. This baby products retailer could be a dividend share to buy thanks to its dominant position in a less discretionary category.

The team at Citi are very positive on the company and believe it is well-placed to navigate the tough consumer environment. It also believes that recent expansions into new categories are positive and could provide its growth with an extra boost. The broker commented:

We see Baby Bunting well placed to outperform the broader small cap retail sector this year given the non-discretionary nature of its category. […] Further, the stocks growth prospects are in some respects less risky than other high multiple retailers who are relying more on new markets and acquisitions. […] we see growth into toys and babywear categories as a positive for Baby Bunting and provides another strategy for the company to complement its i) rollout, ii) exclusive brands and private label growth, iii) supply chain initiatives.

Citi currently has a buy rating and $6.22 price target on its shares.

As for dividends, Citi is forecasting fully franked dividends per share of 16 cents in FY 2022 and 19 cents in FY 2023. Based on the current Baby Bunting share price of $4.72, this will mean yields of 3.4% and 4%, respectively.

Macquarie Group Ltd (ASX: MQG)

Another ASX dividend share that has been rated as a buy is this investment bank.

Macquarie has been a very strong performer over the last few years thanks to impressive growth from across its business. This led to the bank reporting a 56% increase in net profit after tax to $4.7 billion in FY 2022.

And while it will be hard to top this in FY 2023, the team at Morgans doesn’t expect this to stop the investment bank’s shares from providing attractive dividend yields.

Morgans is a fan and has an add rating and $215.00 price target on the bank’s shares. It commented:

We continue to like MQG’s exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while the company continues to gain market share in Australian mortgages.

In respect to dividends, its analysts are forecasting a $7.07 per share dividend in FY 2023 and then $7.47 per share dividend in FY 2024. Based on the current Macquarie share price of $175.63, this will mean yields of 4% and 4.25%, respectively.

The post Experts name 2 ASX dividend shares to buy right now appeared first on The Motley Fool Australia.

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More reading

• Own Macquarie shares? Here’s what to expect from its Q1 update
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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 recommended Macquarie Group 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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If you’re trying to do better than the market, then inevitably you have to pick some ASX shares that other people aren’t thinking of.

After all, if you just buy the stocks that everyone else has, you won’t be beating the average.

Despite all the turmoil this year, or perhaps because of it, there are many ASX shares out there that have been oversold and unloved.

Here’s a couple of examples that Morgans investment advisor Jabin Hallihan reckons are buys right now:

Quality with ‘limited competition’

PWR Holdings Ltd (ASX: PWH) is not a household name, by any means. 

But the company has been around for four decades, making high-end cooling solutions for the car industry.

PWR’s products are of such high quality that they are used by professional motor racing teams, such as in Formula 1 and NASCAR.

Morgans analysts love how this gives it excellent growth prospects and resilience to any economic downturns.

“With limited competition, customers are more focused on performance rather than price,” Hallihan told The Bull.

“The company’s results demonstrated competitive edge and dominant market positions. PWR Holdings has been successful at offsetting margin pressure.”

Morgans has a $10.05 share price target, which is a 28% premium to where it closed on Tuesday.

While analyst coverage is sparse, at least Bell Potter and Evans & Partners agree with Hallihan’s team. According to CMC Markets, both rate PWR shares as a strong buy.

Great growth prospects plus shareholder buyback

ALS Ltd (ASX: ALQ) is an even more obscure brand than PWR. But it provides services essential to the running of other companies: testing, inspection, and certification.

Hallihan was a fan of ALS’ “strong” full-year result.

“Underlying net profit after tax of $264.2 million was up 42.1% on the prior corresponding period and at the top end of guidance,” he said.

“Sample volumes are improving year-on-year, while inflationary pressures are passed onto customers via price rises.”

With many of its clients in the resources industry, Hallihan likes ALS’ exposure to long-term demand for commodities.

His team has a price target of $14.14, which is a 29% rise from the closing price on Tuesday.

On Monday, after Hallihan made his recommendation, ALS announced it would conduct a $100 million on-market share buyback.

“The buy-back program reflects our disciplined and efficient capital management program, the strong balance sheet and focus on returning excess capital to our shareholders,” said chief executive Raj Naran.

“Our balance sheet retains significant capacity for organic growth, including existing capacity expansions previously announced for FY23, future acquisitions including a solid pipeline of opportunities, and capital management.”

The post 2 under-the-radar ASX shares to pounce on right now: expert appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX shares today
• Guess how much one insider spent on this ASX 100 share in the past week
• HRL share price jumps 10% as board backs takeover from ALS
• Guess which small-cap company is soaring 71% on a takeover bid from an ASX 200 share

Motley Fool contributor Tony Yoo 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 PWR Holdings Limited. The Motley Fool Australia has recommended PWR Holdings 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Alto Capital investment advisor Tony Locantro discusses two ASX shares that are ready to break out.

Hottest ASX shares

The Motley Fool: What are the two best stock buys right now?

Tony Locantro: Proteomics International Laboratories Ltd (ASX: PIQ), they’re in the mid-eighties [cents]. They have developed the PromarkerD test which can pick up a diabetic kidney disease before it happens, well in advance. The science is proven. 

They just need to roll that out, [and] look at reimbursements. They’ve been able to manufacture 50,000 components to get that test out. 

They’ve announced some licensing of an esophageal cancer test as well. They’re working on that. And recently, they came out with some positive biomarkers for endometriosis, which affects one in nine women, and this could lead to the world’s first non-invasive test because it does take years to diagnose.

The company has some laboratory services which it provides, and the revenue matches the cash burn but you think that their expenditure will increase. The market cap is undemanding at around $85 million. Solid management that owns a lot of the company and I think it has outstanding growth. 

It’s an outstanding growth opportunity in the biotech sector. 

The second stock I’m buying is a company called Maronan Metals [MMA Offshore Ltd (ASX: MRM)]. I should disclose that I was heavily involved in the initial public offering (IPO) at 20 cents. The stock is now trading at 34 cents.

​​So, they’re about to drill at the Maronan lead, silver and copper gold resource in the Cloncurry region of North Queensland. It is already a sizable resource that requires deeper drilling to expand on the 30 million tonnes at 6.5% lead. That includes a hundred million ounces of silver. They also have a separate copper gold resource that’s around 11 million tonnes for 300,000 ounces of gold and some copper.

It’s in that vicinity of other major mines, and it could be part of a consolidation play in North Queensland. And the company’s capped around $50 million and has recently raised $15 million in its IPO. 

Again, we have extensive holdings, but it’s one of these companies that has an existing resource. The grades do get better with depth, so they’re trying to basically drill and increase the resource. There was a mining study completed in 2016, which showed favourable mining optics. 

So, highly speculative, but those are my two best buys on the market at the moment.

MF: With these minerals companies, are you ever worried about the cyclical nature of commodity prices?

TL: No.

MF: Because they’re mainly exploratory companies that you’re looking at?

TL: Yeah. 

At the moment, a lot of these mining companies are being hit with COVID issues. They’ve been hit with cost blowouts. A lot of the gold producers are now having to add dollars to their all-in sustaining cost. 

But my theory is that a good resource will override any commodity price or cycle. And even though they’re higher risk, you’re still in that exploration phase where you’ve got to move through DFS [definitive feasibility studies] really to get towards production.

So a big resource, I think it’s going to be valued, and it should be noted that around 80% of the mines in Australia are discoveries made around 1980 or [before] that, so there hasn’t been a lot of major discoveries and those that are made are rewarded with good re-ratings.

The post 2 ‘outstanding’ small-cap ASX shares that could explode: expert appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Analysts name 2 ASX growth shares to buy in August
• Why did the BHP share price have such a cracking session today?
• Broker names 2 blue chip ASX shares to buy now
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tony Yoo 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.25% to 6,807.3 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 expected to tumble

The Australian share market looks set to have a difficult day on Wednesday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 47 points or 0.7% lower this morning. On Wall Street, the Dow Jones fell 0.7%, the S&P 500 dropped 1.15%, and the Nasdaq sank 1.9%.

Oil prices fall

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor day after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 1.9% to US$94.88 a barrel and the Brent crude oil price has fallen 1.1% to US$104.05 a barrel. Demand concerns weighed on prices.

Rio Tinto half-year results

The Rio Tinto Limited (ASX: RIO) share price will be on watch this morning when the mining giant releases its half-year results. According to a note out of Goldman Sachs, its analysts are expecting revenue of US$29,655 million and underlying EBITDA of US$15,671 million. The broker has also pencilled in an ordinary dividend of US$3.18 per share and a special dividend of US$0.50 per share.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price traded lower overnight. According to CNBC, the spot gold price is down 0.2% to US$1,715.80 an ounce. Traders were selling gold ahead of the US Federal Reserve meeting this week.

Iluka demerger

The Iluka Resources Limited (ASX: ILU) share price could drop into the red today when the mineral sands company demerges its Sierra Rutile business. Following a review, the Iluka board determined that a separation of Sierra Rutile by way of demerger is the optimal pathway for the business to achieve its growth objectives, reach its potential, and maximise value for Iluka shareholders.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why did ASX 200 energy shares fire up on Tuesday?
• Own Santos shares? Here’s why the company’s international exports could come under pressure
• Why is the Beach Energy share price having such a top run on Tuesday?
• Rio Tinto share price climbs ahead of tomorrow’s earnings update. Here’s what to watch

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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