Morning market movers: 11 stocks to watch

Our market will be buoyed this morning by strong offshore leads while Santos Ltd (ASX:STO) and Sonic Healthcare Limited (ASX:SHL) will be among stocks dominating the spotlight.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

We should end the week on a positive note as Greece's resolve to stay in the European Union buoys global sentiment and investors become more comfortable with the potential interest rate rise in the US later this year.

Traders are betting that the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) will rise 0.3% this morning on strong leads from US and European equity markets overnight. If the morning's gains hold, our index will record a 3.6% gain for the week.

A second day of gains for the iron ore price should also put investors in a good mood. Sure, the advance was a skinny 11 cents to $US55.66 a tonne, but a gain is a gain.

Iron ore giant Rio Tinto Limited (ASX: RIO) will still be in the spotlight as the market continues to digest its second quarter production results that were released yesterday. Rio Tinto's London and US-listed shares rose nearly 1% in overnight trade.

But oil stocks will remain on a slippery slope with the West Texas Intermediate (WTI) crude price falling another 1% to $US50.91 a barrel.

All eyes will be on Santos Ltd (ASX: STO) as it releases its June quarterly report today following Woodside Petroleum Limited's (ASX: WPL) quarterly result yesterday.

Questions about the viability of Santos' key projects will remain if the oil price falls below $US50 barrel and that's why the stock is my least preferred large-cap in the sector.

Gold stocks like Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) also won't provide much solace with the price of the precious metal falling 0.3% to its lowest since November of $US1,143.90 an ounce.

There's no silver-lining for gold either as the commodity could be heading lower now that the Greek crisis appears to be resolved and the US dollar is on an uptrend due to an expected increase in interest rates in the world's largest economy.

However, junior gold producer Regis Resources Limited (ASX: RRL) may get some support after its board said it planned to restart paying a dividend.

Copper miner OZ Minerals Limited (ASX: OZL) may also find some love on news that fund manager JCP Investment has become a substantial shareholder in the miner.

Outside of resources, the contagion from Primary Health Care Limited's (ASX: PRY) profit downgrade yesterday has spread to fellow medical facilities operator Sonic Healthcare Limited (ASX: SHL). The stock tumbled 4.8% to $22.46 on worries that Sonic is facing similar challenges, as Primary Health Care and at least two brokers have downgraded the stock to a "sell" equivalent rating.

New senior executive appointments will also put insurer Tower Limited (Australia) (ASX: TWR) and grocery distributor Metcash Limited (ASX: MTS) in the spotlight.

Tower announced that Richard Harding will be its new chief executive while Metcash names Steven Cain as its chief executive Supermarkets and Mark Hewlett as executive general manager, New Channels.

Motley Fool contributor Brendon Lau owns shares of Rio Tinto Ltd. and Woodside Petroleum Ltd.. Follow me on Twitter - https://twitter.com/brenlau 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 Bruce Jackson.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »