The market is down 12. The SFE Future were down 22 this morning.

Wall St. closed up 3. Dow up 82 at best and down 20 worst. The S&P 500 broke a run of four consecutive rises. Metals did well, as did the oil price which looks to have broken upwards. Gold fell $11.

  • Wesfarmers down 7.5% first thing — Woolworths (WOW) to compete with Bunnings (owned by WES) in home hardware — spends $87m to buy Danks. Australia’s second largest hardware distributor — see below. WES also ex dividend 60c today. Talk of Wesfarmers (WES) appointing Macquarie Capital to consider a part sale of its pub operations.
  • Fairfax Media has had its target price increased by five different brokers this morning post its results. Price up 1 cent today.
  • Billabong down 3.5% early on … they have triggered a MACD sell signal and an RSI sell signal — recent rally coming to an end after results.
  • Computershare (CPU) has acquired Denmark’s I-nvestor for $US12.4m. No material impact on earnings expected.

Results Today…

  • Fosters (FGL) — Looks in line — maybe a touch below some expectations.
  • Suncorp-Metway (SUN) — Lower end of previous company guidance.
  • Oil Search Ltd (OSH) — Interim result looks above expectations — Awarded exploration licences in PNG. Selling 3.5% of PNG LNG.
  • Mirvac Group (MGR) — $1.08bn loss after writedowns — looks in line.
  • Aristocrat Leisure (ALL) — In line with company guidance. Loss $33m.
  • Australian Worldwide (AWE) — Well below a big range of expectations. Flag a fall in production this year. Needs drilling success.
  • APA Group (APA) — Profit up 17%. Company says a good result in current climate.
  • Seek Limited (SEK) — EBITDA number above company guidance but NPAT number a touch below.
  • Hastie Group Limited (HST) — Profit up 53%. Revenue up 40%. “Solid order book … well placed”. Earnings to recover as the economy strengthens.
  • Flight Centre (FLT) — In line with recent profit upgrade on August 11th (the share price jumped 38% in two days after it).

Other broker stuff…

  • Credit Suisse ups Westfield (WDC) to Outperform from Neutral and target price to 1325c from 1135c.
  • Citi maintains Buy on Santos (STO) and 2090c target price (42.7% above current share price).
  • Merrill Lynch cuts ConnectEast (CEU) target price to 40c from 50c and maintains Underperform.
  • UBS ups Austereo (AEO) to 175c from 170c and maintains Buy.
  • RBS Equities ups Telstra to Buy from Hold with and lifts target price to 450c from 430c.
  • Credit Suisse cut Lend Lease (LLC) to Underperform from Neutral but lifts target price to 850c from 775c.

The Dow Futures are down 11 at midday.

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

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