The ASX 200 rose for the fourth day by 66 points to 6102 (+1.1%) topping an impressive rally off 5800 to test 6100 again, although off day highs. Dow futures up 80. A warm glow from the US markets coupled with local stimulus again pushing stocks higher as banks and miners led the way. The Big Bank Basket up to $123.53 with CBA up 0.8% on a broker upgrade. Other financials also did well, MFG up 4.4% and MQG putting on another 2.0%. Insurers though somewhat becalmed. Miners got a kick higher on better copper prices and China returning form its National Holiday tomorrow. BHP rose 2.1% and RIO up 2.0% with FMG rallying up 1.6%. Gold miners though paused for breath, NCM down 0.3% and NST and SAR slightly weaker. Oil too left out a little but healthcare doing well as CSL rose 2.4% on UQ trial dates. Hopefully will not be all sorted by the time it gets trials under way. Others in the sector also doing well, FPH up 2.8%, SHL up 2.3% and RHC better by 2.2%. BNPL and tech stocks drew strength from SZL results with APT up 2.6% and Z1P up 8.8%. The All Tech Index rose 2.2%. In corporate news, SPT losing 5.0% on its Q3 update, SZL up 3.2% Q3 underlying merchant sales (UMS) US$228.2m, up 21.4% vs quarter ago. ALD up 1.2% after announcing a review into its Lytton refinery. The refinery posted a $82m Q3 loss. TCL down 1.0% reports September quarter average daily traffic performance down 25.2% vs year ago. NWL up 8.3%. Q1 funds under administration (FUA) $34.02bn at the end of September vs $31.50bn at the end of June. SBM down 1.6% on its quarterly update. In economic news, the seasonally adjusted estimate for total dwellings approved fell 1.6% in August. Between the week ending 14 March 2020 (the week Australia recorded its 100th confirmed COVID-19 case) and the week ending 19 September 2020, payroll jobs decreased by 4.1% and total wages decreased by 2.9%. 10 -year bonds back to 0.86% and the AUD at 71.42c. Asian markets again quiet with China on its last day of holidays. Japan up 0.9% and HK down 0.8%

Today’s Highlights

• ASX 200 rallies 66 points to 6102.
• High 6123 Low 6049. Average volume.
• Big Bank Basket rallies hard to $123.53
• All Tech Index up 2.2%
• 16 trading days until the US election. Jobs number tonight.
• Dow Futures up 80.
• Gold eases to AUD$2639
• 10-year bond yield rallies to 0.86%
• AUD rallies to 71.42c
• Bitcoin up to US$10643.
• Asian markets China closed, Japan up 0.5%. Hong Kong up 0.7%.

STOCKS

• Z1P +8.78% BNPL rally.
• PLL +0.83% pullback then buyers back.
• XRO +5.09% no stopping this one.
• CCP +5.52% CLH looks to continue to struggle.
• CRN -7.69% coal again under pressure.
• SPT -5.00 WBC.ASX% disappointing update.
• ARU -8.57% webinar presentation
• TNT -5.56% profit taking.
• EVS -7.32% PET issues weigh.
• 4DX +14.11% GS halthcare presentation.
• ELO +12.17% UK acquisition.
• POS +10.91% base metal price rises.
• PAN +5.00% pushed higher too.
• NWL +8.28% good update.
• COH +5.31% technical breakout.
• Speculative Stock of the Day: Estrella Resources (ESR) +464.29% (not a typo) significant Massive Nickel Sulphide discovery at Carr Boyd. 2.9m of mineralisation intersected from 435.9m to 438.8m. Huge volume for the punters over 480m shares.  
• Biggest Winners: Z1P, NWL, AVH, HUB, MMM, CCP, COH, XRO and CIA.
• Biggest Losers: CRN, RBL, SPT, WHC, DEG, ARF and TPW.

TODAY

• Zip Co. (Z1P) +8.78% Appoints Laura Kane as SVP of enterprise sales and Kevin McKeand as VP of business development and strategic partnerships.
• Qube Holdings (QUB) +0.77% Believed to have been offered between $2.5-3.0bn for Moorebank Logistics Park from LOGOS.
• Netwealth Group (NWL) +8.28% Q1 funds under administration (FUA) $34.02bn at the end of September vs $31.50bn at the end of June. FUA net inflows $1.91bn. Reports funds under management (FUM) of $8.06bn at the end of September vs $7.28bn at the end of June. FUM net inflows $797m.
• Sezzle (SZL) +3.25% Q3 underlying merchant sales (UMS) US$228.2m, up 21.4% vs quarter ago. Merchant fees US$13.1m, up 24.1%, active customers 1.79m, up 21.5% and active merchants 20,890, up 29.7% over the period. Reaffirms outlook for UMS annualised run rate of US$1.00bn by the end of 2020.
• Nearmap (NEA) +2.47% Completes share purchase plan, raising $23.1m at 230c/share. The board exercised its discretion to increase the SPP from the $20m target to accommodate demand from all shareholders. In total, NEA has raised $95.2m in combination with the institutional placement.
• Southern Cross Media Group (SXL) +6.45% Notes eligibility for continued support under the extended JobKeeper program to January 3. Expects to receive $12m in payments. Observes advertising bookings for the December quarter are improving. Adds the gradual easing of COVID-19 restrictions in Victoria will further aid the recovery of revenues.
• Ampol (ALD) +1.19% CEO comments, “given the challenging operating conditions experienced during 2020, Ampol will commence a comprehensive review of the Lytton refinery and its related supply chains to determine the best operating model over the medium term. The review will consider all options for the facility’s operations, including closure and permanent transition to an import model. Reports unaudited replacement cost of sales operating earnings of -$82m. Lytton refinery is now in operation with production for Q4 expected to be 1.3BL, with Lytton expected to deliver 3.4BL of production for FY20.
• Transurban Group (TCL) -0.99% September quarter average daily traffic performance down 25.2% vs year ago. Sydney up 1.5% to 847K trips. Melbourne down 58.6% to 355K trips. Brisbane down 9.1% to 385K trips. North America down 28.2% to 112K trips.
• CSL (CSL) +2.43% Finalises agreement to supply 51M doses of UQ COVID-19 vaccine candidate to Australia. The agreement includes an up-front financial commitment from the Government to support the clinical and technical development activities that CSL will need to assume in order to progress vaccine candidate V451, and, if clinical trials are successful, also secures access to onshore production and supply of the vaccine for Australia.
• Splitit Payments (SPT) -5.00% Q3 merchant sales volume US$70.9m, up 214% vs year ago. Gross revenue $2.4m, up 318%, total merchants 1.4K, up 117%, total unique shoppers 362K, up 97% over the same period. Merchant self-onboarding, powered in part by the Stripe Connect partnership, completed beta testing in Q3 and has now gone live in the US, with other markets to follow in Q4 FY20 and Q1 FY21.
• St. Barbara (SBM) -1.63% Q1 gold production of 73.0Koz vs quarter-ago 108.6Koz. Total cash at bank and term deposits at 31 March 2020 was $320m. Maintains FY21 production guidance, sees consolidated gold production of between 370-410Koz.
• Bingo Industries (BIN) +0.37% FY21 outlook is unchanged. YTD performance continues to track broadly in line with observations made on August 25, with robust volumes continuing into September 2020 in the Post-Collections business.
• Brambles (BXB) +0.85% Reaffirms FY21 guidance during AGM, expects revenue growth between 0-4% at constant currency. Underlying Profit growth between 0-5% at constant currency. Free cash flow expected to fund dividends and core business capex. Dividend payout ratio of 45% to 60%.

ECONOMIC DATA

• The seasonally adjusted estimate for total dwellings approved fell 1.6% in August. Private sector dwellings excluding houses fell 11.0%, while private sector houses rose 4.8%, in seasonally adjusted terms.
• Between the week ending 14 March 2020 (the week Australia recorded its 100th confirmed COVID-19 case) and the week ending 19 September 2020, payroll jobs decreased by 4.1% and total wages decreased by 2.9%.

COVID – 19 NEWS

• A top White House official, Crede Bailey, is gravely ill with Covid-19 and has been hospitalized since September.
• Wisconsin is activating a Milwaukee-area alternative care facility as the state’s hospitals are increasingly overwhelmed by surging Covid-19 cases.
• Brazil reached 5 million confirmed infections. The country reported 31,553 new cases Wednesday, pushing the total to 5,000,694. Deaths rose by 734 to 148,228.
• Californian theme parks to stay shut.

BONDS

ASIAN NEWS

• SMIC downgraded by S&P on US sanctions to near junk status.
• Last day of Golden Week.

EUROPEAN AND US HEADLINES

• European futures pointing to modest gains at the open.
• US VP Mike Pence and hopeful Kamala Harris have faced off behind Plexiglass in the one and only VP debate. Much more civilised affair. Ratings will be down.
• And the winner is…no one except the big black fly that settled on Pence’s hair for around 5 minutes.
• President Trump says catching the virus was a ‘blessing in disguise’. Feels great promises everyone can have what he is having. A Harry met Sally moment?
• Regeneron seeks FDA emergency clearance for CV19 treatment.
• Activist investor Daniel Loeb says Disney shopuld axe dividend and double streaming budget and wake up Sleeping Beauty.
• 449-page Inquiry findings into US tech platform companies is scathing about the abuse of their power. Breakups of some mooted.
• France sees 19,000 new CV19 cases. UK sees huge rise too. European limited lockdowns continue to accelerate.

And finally…..

The bartender asks, “What’s the matter?” The man says, “I found out my brother is gay and marrying my best friend.”

The next day the same man comes in and orders 12 shots of whiskey.

The bartenders asks, “What’s wrong this time?”

The man says, “I found out that my son is gay.”

The next day the same man comes in the bar and orders 15 shots of whiskey. Then the bartender asks, “Doesn’t anyone in your family like women?”

The man looks up and says, “Apparently my wife does.”

Thanks Hans…

A few years ago robbers entered a bank in a small town.

One of them shouted: “Don’t move! The money belongs to the bank. Your lives belong to you.

Immediately all the people in the bank laid on the floor quietly and without panic.

This is an example of how the correct wording of a sentence can make everyone change their view of the world.

One woman lay on the floor in a provocative manner.

The robber approached her saying, “Ma’am, this is a robbery not a rape. Please behave accordingly.”

This is an example of how to behave professionally, and focus on the goal.

While running from the bank the youngest robber (who had a college degree) said to the oldest robber (who had barely finished elementary school): “Hey, maybe we should count how much we stole?”

The older man replied: “Don’t be stupid. It’s a lot of money, so let’s wait for the news on TV to find out how much money was taken from the bank.”

This is an example of how life experience is more important than a degree

After the robbery, the manager of the bank said to his accountant:

“Let’s call the cops and tell them how much has been stolen.”

“Wait”, said the Accountant, “before we do that, let’s add the $800,000 we took for ourselves a few months ago and just say that it was stolen as part of today’s robbery.”

This is an example of taking advantage of an opportunity.

The following day it was reported in the news that the bank was robbed of $ 3 million.

The robbers counted the money, but they found only $1 million so they started to grumble.

“We risked our lives for $1 million, while the bank’s management robbed two million dollars without blinking?  Maybe it’s better to learn how to work the system, instead of being a simple robber.”

This is an example of how knowledge can be more useful than power.

Moral:  Give a person a gun, and he can rob a bank. Give a person a bank, and he can rob everyone.

Clarence

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