The market is down 57. Underperforming the 19 point gain the SFE Futures predicted this morning.

Dow Jones up 69 on return from the long weekend and in a rebound from the biggest weekly fall since February. It Up 93 at best, down 37 at worst. Oil price finally went down for a change – down $4.71 to $128.48 – that’s 2.5% – biggest drop in a month after traders were spooked by the economic news of consumer confidence being down. The S&P500 fell 3.5% last week on inflation concerns, a worsening housing recession and rising energy costs and fears that these would impact on corporate profits. Of the 461 companies that have already reported for Q1, there has been an average 18% fall in earnings (averages significantly impacted by financials) – third quarter in a row of falling earnings. Analysts expect a 6.8% rise for the full year. Tech sector the strongest sector with the Nasdaq up 1.5%.

  • Both BHP and RIO down in ADR form overnight, 1.65% and 2.34% respectively. BHP down 105c to 4563c, RIO down 407c to 14293c.
  • Metals mostly unchanged – Copper up 0.1%, Aluminium down 0.1% and Zinc was unchanged. Nickel down 3.4%. Zinifex down 16c to 1006c.
  • Oil price down $3.73 to $128.21 on the belief that higher oil prices has caused demand over the Memorial Day holiday to go backwards. Woodside down 185c to 6307c.
  • Gold down 2% or $17.90 to $907.90. Newcrest down 4.4% or 150c to 3236c.
  • US Bonds down with the 10 year yield up to 3.92%.

There is still interest in Flinders Diamonds (FDL) which jumped 23% on 91m shares traded yesterday. It has already traded 30m shares this morning. Their most recent announcements relate to finding (by picking up rocks on the surface) a number of iron rich rock samples which have prompted suggestions that are now an iron ore stock in the early days of gestation. FDL unchanged today at 21c.

  • Qantas starting to rally on a falling oil price. It has been absolutely smashed on the recent exponential oil price rise and all the US airlines heading towards Chapter 11 on higher fuel costs along with VirginBlue and Toll Holdings. QAN up 12c to 341c.
  • Origin Energy (ORG) has placed itself into a trading halt ahead of an announcement concerning BG Group PLC’s takeover offer on April 30. Announcement likely to have a material impact on share price. ORG last traded at 1460c.
  • Nido Petroleum (NDO) announced it has successfully completed its share placement, raising $41.25m. NDO down 1c to 51c
  • Programmed Maintenance Services (PRG) up 2% after announcing a 27% increase in FY profit to $28.4m, slightly above GSJB Were’s expectations and well ahead of management’s FY08 projections.
  • Commonwealth Bank (CBA) released their Wealth Management briefing slides this morning. No new outlook or forecast comments. CBA up 49c to 4317c.
    Babcock & Brown Infrastructure Group (BBI) says expansion plans for its Dalrymple Bay Coal Terminal will be delayed by up to 3 months due to extended wet weather. BBI up 2.5c to 107c.
  • Nexus Energy (NXS) announced this morning it plans to carry out an institutional placement to raise around$140m. NXS unchanged at 187c.
  • A few SELL recommendations around in fund manager Perpetual Trustees this morning after their profit warning yesterday. PPT up 46c to 4972c.
  • Merrill Lynch downgrades Macquarie Airports earnings and recommendation to NEUTRAL saying this is the wrong time in the cycle to be buying airport stocks. MAP down 5c to 305c.
  • Q1 Construction work higher than expected up 2.3%, an improvement on the 1.0% fall in the previous Q and slightly ahead of forecasts for 2.0%. Building activity steady in Q1.

We have an article in the MARCUS TODAY Daily Stockmarket newsletter this morning highlighting the importance of themes rather than events in the stockmarket. Events become predictable if you know the themes.  


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