5 things to watch on the ASX on Monday

Appen Ltd (ASX:APX), GUD Holdings Limited (ASX:GUD), and Oil Search Limited (ASX:OSH) shares will be on watch on Monday. Here's what you need to know…

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

On Friday the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) had a strong day of trade and reached a multi-year high before closing 0.9% higher at 6,300.2 points.

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

ASX futures are pointing lower.

According to the latest SPI futures, the local market is expected to open the week in the red. Futures are pointing to a 0.4% or 26-point decline this morning following heavy declines on Wall Street on Friday. The Dow Jones was down 0.3%, the S&P 500 fell almost 0.7%, and the Nasdaq tumbled almost 1.5% lower after the shares of Intel and Twitter were sold off.

Tech shares could come under pressure.

Australia's tech stars such as Appen Ltd (ASX: APX) will be on watch on Monday after their U.S. equivalents dropped lower on Friday. Twitter and Intel were among the worst performers with declines of approximately 20% and 10%, respectively. FAANG stocks collectively fell by around 1.5%.

Oil prices tumble.

Oil Search Limited (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) shares could give back some of the strong gains they made on Friday after oil prices tumbled. According to Bloomberg, the WTI crude oil price fell 1.3% to US$68.69 a barrel and the Brent crude oil price dropped over 0.3% to US$74.29 a barrel.

Earnings season is here.

Australian investors are bracing themselves for earnings season this week. While a few smaller results may filter through today, it officially kicks off tomorrow with the release of the Credit Corp Group Limited (ASX: CCP) results. One highlight this week will be the Rio Tinto Limited (ASX: RIO) release on Wednesday.

GUD rated as neutral.

One result that came out early last week was from retail conglomerate GUD Holdings Limited (ASX: GUD). The market didn't appear overly impressed despite the company achieving a 20% increase in underlying net profit after tax from continuing operations. Goldman Sachs didn't see enough in the result to make any changes to its recommendation. It has held firm with its neutral rating and $12.70 price target.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen 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.

More on Share Market News

IPO written in dark blue with a yellow background.
Financial Shares

ASX fintech stock backed by Mastercard slumps 9% on debut

Meet the ASX's newest fintech company.

Read more »

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors kicked off the trading week in style today.

Read more »

young woman reviewing financial reports at desk with multiple computer screens
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these stocks.

Read more »

A businesswoman exhales a deep sigh after receiving bad news, and gets on with it.
Share Fallers

Why Bell Financial, IPD, Megaport, and Resolute Mining shares are falling today

These shares are starting the week in the red. But why?

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why Liberty, Lovisa, Novonix, and SG Fleet shares are storming higher today

These shares are starting the week strongly. But why? Let's find out.

Read more »

Shot of a young businesswoman looking stressed out while working in an office.
Industrials Shares

This ASX share is tumbling 13% on reduced earnings forecast

Earnings are expected to fall in the first half, much to the dismay of the market.

Read more »

A man in his 30s holds his laptop and operates it with his other hand as he has a look of pleasant surprise on his face as though he is learning something new or finding hidden value in something on the screen.
Mergers & Acquisitions

Guess which ASX All Ords stock just rocketed 23% on a $1.2 billion offer

Investors are piling into the ASX All Ords stock amid a $1.2 billion takeover bid.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Technology Shares

Why today is a big day for Pro Medicus shares

Records are being broken by this share on Monday. What's going on?

Read more »