The market is up 28. The SFE Futures were up 33 this morning.
Dow Jones closed up 204 — The Dow was up 211. The S&P500 finished up 1.65% and the NASDAQ up 1.48%. US stocks went up on Friday breaking a 6 day losing streak as a rally in JP Morgan Chase (+6.4%) added 15 points to the Dow alone after announcing its trading loss was quantified, with IBM and Caterpillar adding 40 points between them. Financial shares had the biggest gains led by JP Morgan. Banks the best sector up 3.2%. Healthcare stocks in the S&P500 rose 1.3% as a group. Technology was the only sector to fall, down 1.7% due to disappointing earnings numbers. China announced on Friday that the country’s economy had grown by 7.6%, below the 7.7% expected and only just above the government’s official target of 7.5% (which is usually seen as the worst case scenario). The number was met with relief (that it wasn’t a disaster) and raised speculation that China would further stimulate their economy in the short term. But the truth is most of the Wall St action was in financials not resources. European shares up as well on Friday. The FTSE 100 index was up 1.03%, German DAX 30 up 2.15%, while in Paris the CAC 40 rose 1.46%. Metals were all up on the LME with Nickel up 2.46%, Copper up 1.79%, Zinc up 1.37% and Lead up 1.37%. Gold was up $22.80 to $1588.10. The A$ is at 102.57c. The A$ versus the Euro was up buying €83.57c. BHP closed at the equivalent of 35c up on Friday’s close.
- Nathan Tinkler has made a formal bid for Whitehaven Coal (WHC). The bid from Tinkler came in at 520c per share on Friday a 50% premium to the current share price although the share price is trading well below the bid on concerns that the bidders may have funding issues and are trying to flush out a counterbid. WHC is up 15.36% to 398c.
- Seven West Media (SWM) have announced a $440m capital raising. A 1 for 2 at 132c (18.5% discount) to pay down debt. They have also announced earnings guidance towards the top end of the recent guidance range. SWM shares are in trading halt. The money will be used to pay down debt. Since Kerry Stokes bid for WA News (now SWM) the share price is down 75%.
- Gunns (GNS) is looking to refinance around $500m of its $587m debt by the end of 2012. GNS shares remain in suspension.
- David Jones (DJS) will soon employ “style advisors” in a plan to lure customers back in to their struggling 36 stores. The company will investing heavily in 200 one on one staff to accompany customers as they shop. DJS is unchanged on 238c.
- Westpac have announced a $500m note issue.
- Australia’s total personal finance loans rose 0.4%in May. Total commercial loans in May fell 12.0%.
- Intrepid Mines (IAU) up 11% on drill results.
- The AFR suggests PMP bid talks may still be on. PMP up 15%.
- AWE going down on the back of the Origin cost blow out and some broker target price cuts this morning. AWE down 4.7%.
- Beach Energy (BPT) up 3% on decision to accelerate gas program.
- GWA Group (GWA) up after terminating a scheme of implementation to buy QTG which is down 8%.
- St Barbara Limited (SBM) unchanged on quarterly production numbers.
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