The market is up 9. The SFE Futures suggested an 11 point fall in the market this morning.
The Dow Jones was down 85 overnight – It moved in a 156 point range and finished lower mainly on the back of profit warnings and concerns that earnings will miss analysts forecasts. Alcoa, Chevron and Boeing all did their bit in pushing the market lower on earnings news. Alcoa closed down 2.6% after their profit result announcement late yesterday narrowly missed expectations, Boeing fell by a similar amount after they said deliveries of the 787 Dreamliner will be delayed by six months, and Chevron said 3Q earnings were significantly lower due to higher costs. In other news, a consortium led by KKR completed their $32bn acquisition of TXU Corp. and the Commerce Department said inventories increased by a better-than-expected 0.1% in August after a 0.2% increase in July. The NASDAQ was the only major index to close higher, Google Inc. closed in record territory once again, up 1.7%, Merrill Lynch upped their target price to $740 a share.
Resources outperforming this morning…BHP up 13c to 4563c and RIO up 189c to 11200c. Metals up overnight, Nickel up 2.5%, Zinc up 2.3% and Aluminium 1.7%. Copper up 1.5%. Zinfex down 3c to 1857c. Oil price up $1.07 to $81.30. Despite the rise, the price hasn’t been able to break through the month long trading range of $78.25 – $83.90. Woodside unchanged at 5238c. Gold up $2.90. Lihir Gold (LGL) up 4c to 402c.
Not too much going – more news in the research than the announcements
- Bank of Queensland (BOQ) has kicked off result season for banks this morning – they have announced a cash profit a bit better than expected and up 20%. Described as a “Strong” result above most expectations. Good start to the season. Costs and bad debt provision better than expected. Dividend a bit better than the 67c expoected at 69c. Are doing a $150m hybrid capital raising. BOQ up 35c to 1924c.
- Qantas (QAN) have a statement out on the Boeing delay in the Dreamliner. They say there is no need to change earnings forecasts and will not materially impact Qantas operations. They are up for compensation in negotiation with Boeing. QAN was in a trading halt, now down 3c to 592c.
- Symbion Health (SYB) has rejected an incomplete proposal from Primary Health Care to acquire certain parts of their businesses. PRY holds a 20% stake in SYB and has also proposed to supply computer systems. SYB down 1c to 417c. This takeover is dragging on. PRY up 1c to 1216c.
- Newcrest Mining (NCM) announced their have completed their retail entitlement offer bringing the total funds raised to $2.04bn. They have issued 20.9m new shares after raising $1.59bn last month. Newcrest down 44c to 2801c.
- Companies going ex dividend include – BER, CEG, COF, KSC, LDN and SOE.
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