The market is up 60. The SFE Futures predicted a 41 point rise this morning.

The Dow closed up 91 overnight. Dow up 95 at best and down 9 at worst. US Bonds up again — Bond yields have now fallen 50bps in a couple of weeks. Financial up 1.4% in the US. Oil price up 3.4% and Gold down 30c. Metals down on the LME.

Retailers flying on a profit upgrade from David Jones (DJS). Now expects a rise of 8-12% from its previous guidance of 0-5% — thanks to improved trading conditions in the last couple of months. 2H profit is also expected to jump 20-30% from similar guidance of 0-5%. DJS CEO says the company is usually the “first in and first out” of a downturn. Harvey Norman up 8.9%.

Making the news today:

  • Qantas (QAN) says it has carried 2.8% fewer passengers in May compared with a year earlier. It has hedged 67% of its fuel requirement for the fiscal year that starts July 1 at a worst crude oil price of $US92 a barrel.
  • PanAust (PNA) says the FIRB has given Guangdong the all clear to acquire a 19.9% stake in the company.
  • Hastie Group (HST) wins $38m contracts in the UK.
  • Elders (ELD) says it forest products unit ITC Ltd has negotiated an unchanged benchmark price of $207.40 per bone dry metric ton, for exports to Japan. It has also completed an agreement to extend its refinancing facilities.
  • Macquarie Communications Infrastructure (MCG) says more than 90% of proxy votes have been in favour of CPPI’s $3 a share takeover offer.
  • Suncorp-Metway (SUN) announces it will buy back around $405m worth of its subordinated debt at a cost of $310m.
  • Australian Agricultural Company (AAC) says it will not be paying a final 2008 dividend.
  • Norfolk Group’s (NFK) subsidiary has secured a $96.5m contract for rail signaling relocation and installation for BHP Iron Ore’s Rapid Growth project.
  • Macarthur (MCC) say their institutional placement was oversubscribed but the whisper is they struggled a bit. The details of their Share Purchase Plan are out.
  • The front of the AFR talks about a Chinese deadlock on iron ore prices. It is the first time in 42 years that BHP and RIO have started a financial year without an agreed industry wide price.

Also making the news:

  • Morgan Stanley cuts CSL Ltd (CSL) target price to 3068c from 3180c and maintain their Equalweight recommendation on the back of their buyback placing a floor under the share price.
  • RBS Equities maintain their Sell recommendation on the National Australia Bank (NAB) saying it might have tax problem coming soon. NAB could have an additional tax liability of $367m-$615m.
  • Morgan Stanley ups their ROC Oil (ROC) target price to 100c from 75c with an Equal-Weight recommendation describing the $69m equity raising as a move forward towards recovery.
  • Southern Cross Equities says News Corp (NWS) could easily get back to $18 a share. Share price now is 1331c.
  • Bernie Madoff got 150 years for his $65bn Ponzi Scheme.
  • Today is the last day of the Financial Year.

The Dow Futures suggest a 9 point rise on Wall Street tonight.

MARCUS PADLEY is the Author of the MARCUS TODAY Daily Stockmarket Newsletter.

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