The market is up 119. The SFE Futures were up 105 this morning.

The Dow Jones closed up 272 overnight. Dow was up 286 at best. Volatility remains: since the first week of August, the Dow has closed up or down more than 200 points 16 times, while in the first 7 months of 2011 there were only 4 swings of 200 points or more. There was talk overnight that a program similar to the US Troubles Asset Relief Program (TARP) may be adopted by the EU to solve the current crisis. Warren Buffett’s Berkshire Hathaway’s Class B shares put on 8.6% after announcing a share buyback, its first ever since Buffett took control in 1965. The gold price fell an additional $45 after falling $102 a day earlier and metals fell over again overnight. The oil price put on 39c to $80.24 and the Aussie dollar increased slightly to 98.20c from 97.77c.

Today’s main stories

  • Goodman Fielder (GFF) plans to raise $259m through an entitlement offer. They announced a fully-underwritten 5-for-12 pro-rata renounceable entitlement offer of new ordinary shares at an offer price of 45c a share. GFF last traded at 59c a share.
  • Lynas Corp (LYC) up 20% today to 104c after falling over 48% in the past month.
  • Woolworths (WOW) and Lowes spent $429m on development properties and infrastructure throughout FY 2011 as they prepare to enter the Australian hardware market through the Masters brand. WOW also said they still expect to lift net profit in the current year but admits the retail sector faces significant challenges due to “unprecedented macro economic circumstances”. WOW up 10c to 2487c.
  • Bow Energy (BOW) has agreed to an increased takeover offer from Arrow Energy. Bow Energy shareholders now need to vote on the takeover. BOW up 1c to 147.5c.
  • Rio Tinto (RIO) spent around $75m lifting their stake in Ivanhoe Australia (IVA) to 49%. RIO up 4% to 6276c. IVA unchanged at 113c.
  • Linc Energy (LNC) announced they have discovered a significant oil shale deposit in Arckaringa. LNC up 9% to 183.5c.
  • One broker has upgraded Leighton Holdings (LEI) this morning to Buy from Hold saying the risks are now factored into the share price. The broker believes the company faces risks associated with two major Australian infrastructure projects and headwinds in the Middle East. LEI up 4% to 1845c.
  • Mesoblast (MSB) has entered into a strategic alliance for clinical and long term commercial production of MSB’s off-the-shelf adult stem cell products. MSB up 2.7% to 781c.
  • Aston Resources (AZT) has set plans to raise its coal exports to as much as 14m metric tons a year. AZT up 1c to 976c.
  • Stocks are going ex-dividend today: Amcom Telecomm (AMM – 3c), Austbrokers Holdings (AUB – 17c)

For a free 5 day obligation FREE TRIAL of the MARCUS TODAY newsletter Click Here. You will receive our renowned and popular Daily email about the stockmarket with all the stuff you need to know ahead of the trading day including:

  • Overnight developments, news, comments, rumours, broker recommendations and ideas from Marcus and his Team.
  • Our Recommended Portfolio which is actively managed on behalf of subscribers … no “set & forget”. Everything you need to effortlessly managed your own long term investment portfolio. It includes Income Portfolio recommendations.
  • Daily Technical Trading ideas and data, including daily scans of the ASX 300 for stocks changing trend.
  • Stock Database – all the numbers with comments on the top 300 stocks and more.
  • Educational section – Marcus’s Educational and Entertaining articles.

We also offer a FREE END OF DAY EMAIL — Click here — A free summary of the day in the market.

Subscribe to MARCUS TODAY — Click Here. We are sure you will enjoy and profit from what we offer…we have one of the highest re-subscription rates in the financial newsletter industry.

Peter Fray

Ending soon: Save up to 50% on a year of Crikey

This extraordinary year is almost at an end. But we know that time waits for no one, and we won’t either. This is the time to get on board with Crikey.

For a limited time only, choose what you pay for a year of Crikey.

Save up to 50% or dig deeper so we can dig deeper.

See you in 2021.

Peter Fray
Editor-in-chief of Crikey

SAVE 50%