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.
- 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.
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