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Why Tesla stock slammed on the brakes Monday
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 (NASDAQ: TSLA) skidded off the road Monday, falling by as much as 8.8%. As of market close, the stock was still down by 8.61%.

The catalyst that sent the electric vehicle (EV) maker plunging was quarterly vehicle deliveries that fell short of expectations.

So what

In a press release that dropped Sunday, Tesla revealed its third-quarter production and delivery numbers, and while the growth was robust, investors wanted more.

The company delivered 343,800 vehicles over the past three months, surging past the 255,000 units it shipped in the second quarter, but well below analysts’ expectations, which came in at 364,660. Furthermore, the company reported production of 365,923, recovering from the pandemic-restricted 258,580 number in the second quarter.

Now what

It’s important to take a step back and put these results in context. The shortfall in deliveries was the result of a number of vehicles in transit at the end of the quarter. In its press release, Tesla addressed the issue, saying, “Historically, our delivery volumes have skewed toward the end of each quarter … [but] as our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity.”

Furthermore, during the month of July, Tesla’s production facility in Shanghai was shuttered to allow the company to make upgrades to the factory. This no doubt affected the company’s overall delivery numbers, even as its China output has since rebounded.

Finally, so far this year, Tesla has produced nearly 930,000 EVs and delivered more than 908,000 — with nearly all the difference being cars that were out for delivery at the end of the third quarter. Tesla is on track to produce at least 1.3 million vehicles this year, which would represent growth of 39% compared to 2021.

That figure could end up being conservative, as the company is aiming to produce as many as 500,000 cars in the fourth quarter. If Tesla is able to reach that ambitious goal, its production would jump nearly 54% year over year to more than 1.4 million vehicles — an impressive accomplishment indeed.

For investors focused on the big picture, Tesla stock is a buy.

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

The post Why Tesla stock slammed on the brakes Monday appeared first on The Motley Fool Australia.

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Danny Vena has positions in Tesla. 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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4 October 2022
These ASX dividend shares have been tipped as buys by experts
If you’re looking to boost your income with some dividend shares, then the two listed below could be worth considering.

Here’s why experts say these dividend shares are buys:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share that experts rate as a buy is HomeCo Daily Needs.

It is a real estate investment trust (REIT) with a focus on convenience-based assets such as neighbourhood retail and retail parks.

Morgans is very positive on the company. It recently commented:

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, Morgans is forecasting dividends of 8.3 cents per share in FY 2023 and 8.7 cents per share in FY 2024. Based on the current HomeCo Daily Needs REIT unit price of $1.13, this will mean yields of 7.3% and 7.7%, respectively.

Another positive is that the broker sees plenty of upside ahead for its shares. Its analysts currently have an add rating and $1.56 price target on them.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that experts rate as a buy is banking giant Westpac.

The team at Goldman Sachs is very positive on the bank and believe it is well-placed to benefit from rising rates. In fact, the broker believes Westpac gives investors the strongest leverage to rising rates right now. Goldman explained:

We continue to see WBC as our preferred exposure to the A&NZ Financials reflecting: i) its strong leverage to rising rates, ii) while we think its A$8 bn FY24 cost target will now be unachievable, we still forecast a 7% reduction in underlying expenses, iii) its recent market update highlighted that the business is still investing effectively in its franchise.

Goldman is also forecasting some generous fully franked dividend yields. It is expecting dividends per share of $1.23 in FY 2022 and $1.37 in FY 2023. Based on the current Westpac share price of $20.60, this will mean yields of 6% and 6.65%, respectively.

And as with HomeCo Daily Needs, Goldman sees plenty of upside for Westpac’s shares. It currently has a conviction buy rating and $26.55 price target on its shares.

The post These ASX dividend shares have been tipped as buys by experts appeared first on The Motley Fool Australia.

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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 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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4 October 2022
Here’s why this broker says the Telstra share price is great value in October
The Telstra Corporation Ltd (ASX: TLS) share price could be great value at the current level.

That’s the view of one of Australia’s leading brokers, which has just elevated the telco giant to a coveted list.

Telstra share price offers great value

According to a note out of Morgans, its analysts have put the company’s shares on its best ideas list in October.

The broker’s best ideas are those that its analysts believe offer the highest risk-adjusted returns over a 12-month timeframe. They are supported by a higher-than-average level of confidence and are its most preferred sector exposures.

The note reveals that Morgans has put the telco giant on its list with an add rating and $4.60 price target.

Based on the current Telstra share price of $3.84, this implies potential upside of 20% for investors over the next 12 months.

Morgans is also forecasting a 16.5 cents per share fully franked dividend in FY 2023. This equates to an attractive 4.3% dividend yield.

Why did the broker add Telstra to its best ideas list?

The broker made the move on the belief that the market is undervaluing the Telstra share price on a sum of the parts basis. It also believes the recent Optus hack could be a boost to its business. Morgans commented:

After a major turnaround, TLS has emerged in good shape with strong earnings momentum and a strong balance sheet. In late CY22 shareholders vote on Telstra’s legal restructure, which opens the door for value to be released. TLS currently trades on ~7x EV/EBITDA.

However some of TLS’s high quality long life assets like InfraCo are worth substantially more, in our view. We don’t think this is in the price so see it as value generating for TLS shareholders. This, free option, combined with likely reputational damage to its closest peer, following a major cybersecurity incident, means TLS looks well placed for the year ahead.

The post Here’s why this broker says the Telstra share price is great value in October appeared first on The Motley Fool Australia.

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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 positions in and has recommended 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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4 October 2022
If you’re new to investing, you need to read this
So you’ve finally taken the plunge and decided to dabble in ASX shares.

Congratulations! You’ve overcome the hardest part — getting started.

But like any endeavour in life, experience makes you better at the craft.

And many stock market beginners fall into the same psychological traps. They result in unnecessary losses and pain.

Some people might even turn away from investing in ASX shares after quickly losing their hard-earned.

“I see new investors making the same mistakes again and again,” financial expert and long-term buy-and-hold advocate Brian Feroldi said on social media.

“New investors should focus on avoiding big mistakes, NOT on being brilliant.”

Fortunately, Feroldi is willing to share his wisdom to fortify novice portfolios.

He recently compiled a list of 10 errors that novices make all the time, and how to avoid them:

1. Short-term mentality

Even the best-intentioned beginners fall into this trap.

“New investors are easily fooled by market randomness,” said Feroldi.

“Stock UP this week? ‘I’m a genius.’ Stock DOWN this week? ‘Investing is impossible.’”

Those who have been in the game for much longer know that day-to-day, week-to-week or even month-to-month performance doesn’t matter over the long run.

“Experienced investors know that stock returns are measured in YEARS, not DAYS.”

2. Putting all your eggs in one basket

Feroldi said that rookie investors “only see the upside”.

“They become convinced that they can’t lose and over-allocate to a single position.”

Veterans know that there is no ASX share that’s a sure thing.

“Experienced investors diversify, knowing that the future is uncertain and that no stock is guaranteed to succeed.”

3. Not doing research

Many new investors buy ASX shares without finding out anything about the company, what it does or how it performs.

“Many don’t even know HOW to do the research,” said Feroldi.

“Without research, you don’t have conviction. Without conviction, you won’t have the strength to hold through the inevitable downturn.”

4. Not having personal finances in shape

If your personal finances are in a mess, no amount of stock investing will fix it.

Those who dive into ASX shares without getting their debts, income and spending in order will run into trouble.

“They quickly learn that stocks are volatile, and handling that volatility is HARD,” said Feroldi.

“Experienced investors make their personal finances rock-solid first.”

5. Watching the stock instead of the business

Rookie investors are, understandably, very excited by their new shares. They watch them like a hawk for daily, or even minute-by-minute, stock price movements.

This is not healthy for long-term investing, according to Feroldi.

“Experience[d] investors focus intensely on company earnings reports and their estimate of the company’s intrinsic value.”

6. Selling winners to buy losers

Keeping winning stocks and cutting failing businesses out of your portfolio sounds obvious. But it’s remarkable how many investors do the opposite.

If you were gardening, would you retain all the weeds and cut out all the beautiful roses?

“New investors sell their winners and double-down on their loser[s],” said Feroldi.

“Experienced investors know that the opposite strategy is much more effective.”

7. Overconfidence

To be fair, hubris can strike both novice and veteran investors at times.

But those who have been through their share of busts are more aware of their own limitations.

“New investors are filled with confidence,” said Feroldi.

“Experienced investors know that the more they learn, the more they realise they don’t know.”

8. Having no strategy

Whether you favour growth stocks, value stocks, bottom-up picks or macro-driven investing or thematics, Feroldi reckons you need to have a coherent and consistent strategy.

“New investors just start buying and selling whatever stocks are popular,” he said.

“Experience[d] investors focus intensely on their investment process and make use of savings, research, checklists, journal, watchlist, vision, conviction and patience.”

9. Over-reliance on PE ratios

According to Feroldi, rookie investors put too much credence in the price-to-earnings (P/E) ratio as a tool to evaluate a stock.

He broke down the life cycle of a company into five distinct phases: research and development, launch, hyper-growth, maturity and decline.

“Experienced investors know the P/E ratio has HUGE flaws, and it is only useful in phase 4.”

During the launch phase, for example, the business is still not making a profit, so it’s more suitable to use the price-to-sales ratio as a metric.

10. Using options, margin and leverage

Those new to investing are in a rush to become rich, according to Feroldi.

“They use options, margin, and leveraged ETFs to juice their returns,” he said.

“Experienced investors know this is a recipe for disaster.”

Feroldi reminded everyone of Warren Buffett’s famous quote:

If you’re smart, you don’t need leverage.

If you’re not smart, you shouldn’t use it.

The post If you’re new to investing, you need to read this appeared first on The Motley Fool Australia.

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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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4 October 2022
Morgans names some of the best ASX shares to buy in October
The team at Morgans has been busy once again looking for the best ASX shares for investors to buy this month.

Two that make the broker’s best ideas list in October are listed below. Here’s why Morgans rates them highly:

BHP Group Ltd (ASX: BHP)

If you’re not averse to investing in the resources sector, then you might want to consider the Big Australian. Morgans rates BHP as one of its best ideas thanks to the miner’s superior diversification and strong balance sheet. 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 the mining giant’s shares.

SEEK Limited (ASX: SEK)

Another ASX share that Morgans is tipping as a buy this month is Seek. It is of course the leading online job listings company in the ANZ region. After a strong performance in FY 2022, Morgans believes the stars have aligned for another strong showing in FY 2023. It commented:

Of the classifieds players, we continue to see SEEK as the one with the most relative upside, a view that’s based on the sustained listings growth we’ve seen over the period. The tailwinds that have driven elevated job ads (~250k currently, +35% on pcp) and strong FY22 result appear to still remain in place, i.e. subdued migration, candidate scarcity and the drive for greater employee flexibility. With businesses looking to grow headcount in the coming months and job mobility at historically high levels according to the RBA, we see these favourable operating conditions driving increased reliance on SEEK’s products.

The broker has an add rating and $29.40 price target on Seek’s shares.

The post Morgans names some of the best ASX shares to buy in October appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in SEEK Limited. 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 SEEK 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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4 October 2022
Experts name 2 ASX growth shares to buy before the market rebounds
If you’re wanting to pick up some ASX growth shares before the market rebounds, then you may want to consider the two listed below.

Both of these growth shares have been tipped as buys with material upside potential. Here’s what you need to know about them:

TechnologyOne Ltd (ASX: TNE)

The first ASX growth share that could be a top option for investors is TechnologyOne.

It is a leading enterprise software provider which services both government and private sector clients across the ANZ and UK regions.

The team at Bell Potter see plenty of upside for the company’s shares over the next 12 months. Its analysts currently have a buy rating and $14.25 price target on them.

Thanks to the ongoing success of its software as a service (SaaS) transition, Bell Potter suspects that the company could lift its growth targets in the near future. It commented:

We continue to believe there is the potential for the company to lift its annual PBT growth target from 10-15% to 15-20% from next year and our forecasts are consistent with this uplift. But we also believe there is some conservatism in our FY23 and FY24 forecasts as we only forecast PBT margin improvement of c.100bps in both periods whereas we believe there is potential for the margin increase to be closer to 150bps.

Xero Limited (ASX: XRO)

Another ASX growth share that could be in the buy zone right now is Xero.

It is a fast-growing cloud-based accounting solution provider to ~3.3 million small and medium sized businesses globally.

And while this is a large number, it is still only a small slice of an overall market opportunity estimated to be 45 million subscribers. This gives Xero and its highly rated and sticky platform a major runway for growth over the next decade and beyond.

It is partly for this reason that Goldman Sachs is a big fan of the company and believes Xero is well-placed for long term growth. It currently has a buy rating and $111.00 price target on Xero’s shares.

The broker previously commented:

Key pillars of our buy thesis are: (1) Xero has a long runway for cloud accounting growth (in existing and new markets); (2) can drive earnings through monetisation of its ecosystem; (3) has highly attractive unit economics; and (4) substantial barriers to entry at scale.

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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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended TechnologyOne 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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4 October 2022
‘Standout buy’: Expert names 3 human capital ASX shares to boom
Investors in ASX shares may not often think of education and human resources as sectors to plough their money into.

But there are few other areas that have more stable demand and are important to the economy than the development of human capital.

Helpfully, in a video last week some Wilson Asset Management analysts named three ASX shares to buy in the education and human resources industry:

Could there be buybacks for shareholders of this business?

For Wilson senior equity analyst Shaun Weick, childcare provider Evolve Education Group Ltd (ASX: EVO) makes a compelling investment case right now.

“Evolve’s a standout buy for us,” he said.

“They’ve just divested their New Zealand assets for $50 million. You’re essentially left with an Australian trading business which is performing well.”

Weick pointed out that the Evolve shares are currently trading around 2 to 2.5 times enterprise value to earnings, compared to more than five for its peers.

“The balance sheet, therefore, provides immediate flexibility around capital returns. We think buybacks are possible — and acquisitions over time,” he said.

“That’s a strong buy for us.”

Analyst coverage is sparse for Evolve Education. According to CMC Markets, at least Canaccord Genuity agrees with Weick, rating the stock as a strong buy.

‘Non-fundamental factors weighing on the share price’

Despite the world opening up after the COVID-19 pandemic, shares for international education service provider IDP Education Ltd (ASX: IEL) have fallen 24.6% year to date.

“We think there are non-fundamental factors weighing on the share price at the moment, with the release of escrow arrangements and the departure of well-regarded CEO Andrew Barkla.”

Weick thus feels like the stock will head up as business performance once again becomes the major factor in investor decisions.

“If you look at the policy settings globally, they’re the most supportive they’ve been, in terms of migration for students into IDP’s key destination markets,” he said.

“You couple that with the investment they’ve made in their digital strategy, we think they’re well-placed to take significant market share and generate very strong earnings growth.”

Earlier in the week, Medallion Financial private client advisor Jean-Claude Perrottet praised IDP’s reporting season update.

“Margins improved by 24.8%, the highest in the company’s history. Revenue grew by 50% on the prior corresponding period, in response to a 45% increase in student placements and a 67% increase in international English language tests.”

Growing both organically and via acquisitions

Fellow senior equity analyst Sam Koch likes workforce management provider PeopleIn Ltd (ASX: PPE).

“PeopleIn has been growing organically at about a 10% clip, and they supplement their organic growth through acquisitions.”

The business has been hamstrung during the pandemic years, he added, with border closures prohibiting access to the migrant workforce their customers normally utilise.

As international movements are liberalised, according to Koch, PeopleIn’s organic growth will accelerate.

The shares have fallen more than 31.7% so far in 2022, putting it into bargain territory.

“You’re trading at a sub-10 times price-to-earnings multiple with strong earnings growth,” said Koch.

“With an undergeared balance sheet, we believe there’ll be plenty of catalysts to see this company rerate.”

The post ‘Standout buy’: Expert names 3 human capital ASX shares to boom appeared first on The Motley Fool Australia.

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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 Idp Education Pty Ltd and Peoplein. The Motley Fool Australia has recommended Peoplein. 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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4 October 2022
Buy this ASX share now to put in the bottom drawer for DECADES: fundie
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, Auscap Asset Management portfolio manager Tim Carleton reveals the stock he’d be happy to have in his portfolio for decades.

The ASX share for a comfortable night’s sleep

The Motley Fool: If the market closed tomorrow for four years, which stock would you want to hold?

Tim Carleton: I can’t talk about one we’ve already talked about, so maybe I’ll give you another instead. And that stock is Reece Ltd (ASX: REH).

Reece [is] a producer and distributor of plumbing and bathroom products, primarily. They have a dominant position in Australia. And then, in 2018, they made a transformative acquisition of a company called Morsco in the US. To us, it looks like that acquisition is going particularly well for them. It gives them a huge avenue for growth over the coming decades. And that’s really the sort of time frame that these guys think about when they’re assessing opportunities.

At the moment, you’ve got an Australian business which generates more than double the profitability of the US business. We expect that will change materially over time. Not because the Australian business won’t grow, but just because we should see a very, very strong growth profile out of the US business, as they significantly increase the number of stores that they have in the US — and really have the potential to become one of the dominant players in that space in the US in what is still a very, very fragmented market.

So it’s a classic bottom-drawer stock [with] high-quality management, a massive opportunity, a very, very profitable business model — if they can deliver on that, then the business should be substantially bigger in five, 10 years’ time than it is today.

MF: And it’s had a nice discount this year, hasn’t it? The stock price has halved year to date?

TC: Listen, it was expensive, but we have been nibbling away recently. It’s pulled back obviously on housing concerns of the US and here and the risks to expenditure related to housing [and] general interest rates.

But their business, I think, will prove to be more resilient than people expect. And a lot of it’s replacement, refurbishment work, so the underlying business should remain resilient in the face of any downturn or a recession.

Over the cycle, because of the organic opportunities available to them, you should see very, very strong revenue and earnings growth.

The post Buy this ASX share now to put in the bottom drawer for DECADES: fundie appeared first on The Motley Fool Australia.

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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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4 October 2022
Brokers say these ASX 200 dividend shares are buys
If you are looking for income options, you might want to check out the two ASX 200 dividend shares listed below.

That’s because brokers have just tipped these shares as buys with attractive forecast dividend yields. Here’s what brokers are saying about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX 200 share to look at is Charter Hall Social Infrastructure REIT.

It is a real estate investment trust that invests in social infrastructure properties such as bus depots, police and justice services facilities, and childcare centres.

Goldman Sachs currently has a conviction buy rating and $4.35 price target on this dividend share.

The broker believes Charter Hall Social Infrastructure REIT is well-placed for growth in the coming years. This is thanks to the sector’s positive fundamentals and its strong balance sheet. Goldman commented:

[W]e continue to believe the REIT is relatively well positioned given the sector’s positive fundamentals and CQE’s strong balance sheet, with headroom and liquidity to pursue investment opportunities, although rising interest costs will be a near term headwind in FY23. Furthermore, we remain attracted to its relatively resilient cash flows, underpinned by triple net leases to strong tenant covenants.

In respect to dividends, Goldman is forecasting dividends per share of 17.3 cents in FY 2023 and 18 cents in FY 2024. Based on the current Charter Hall Social Infrastructure REIT unit price of $3.07, this will mean yields of 5.6% and 5.9%, respectively.

QBE Insurance Group Ltd (ASX: QBE)

Another ASX 200 dividend share that has been tipped as a buy is insurance giant QBE.

Morgans is very positive on the company and recently retained its add rating with a $14.93 price target on its shares. The broker believes that rising premiums and its cost cutting plans bode well for its performance in the near term. It commented:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on ~9.1x FY23F PE.

As for dividends, Morgans is forecasting a 41.7 cents per share dividend in FY 2022 and then a 76.8 cents per share dividend in FY 2023. Based on the latest QBE share price of $11.30, this equates to yields of 3.7% and 6.8%, respectively

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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 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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4 October 2022
5 things to watch on the ASX 200 on Tuesday
On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decline. The benchmark index fell 0.3% to 6,456.9 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to rebound strongly

The Australian share market could have an excellent day after a stunning start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 128 points or 1.9% higher. In late trade in the United States, the Dow Jones is up 3%, the S&P 500 is up 2.9%, and the NASDAQ is storming 2.6% higher.

Oil prices jump

It could also be a great day for energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 4.8% to US$83.29 a barrel and the Brent crude oil price has risen 4.2% to US$88.73 a barrel. News that OPEC is planning its biggest output cut since 2020 has got traders excited.

Dividends being paid

Today is payday for the shareholders of a couple of popular ASX 200 shares. Rewarding their shareholders with dividends later today are private health insurance provider NIB Holdings Limited (ASX: NHF) and job listings giant SEEK Limited (ASX: SEK).

Miners to rise

Mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) will be on watch today after their US listed shares stormed higher on Wall Street overnight. Both are up 4% in late trade, which bodes well for their performance on the ASX 200 today. Improving investor sentiment and a softening US dollar have given them a boost.

Gold price storms higher

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a great day after the gold price rebounded strongly overnight. According to CNBC, the spot gold price is up 1.95% to US$1,704.8 an ounce. The gold price lifted after the US dollar and bond yields retreated.

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

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Motley Fool contributor James Mickleboro has positions in SEEK Limited. 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 NIB Holdings Limited and SEEK 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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4 October 2022