The market is up 6. SFE Futures were down 9 this morning.
The Dow Jones closed down 25 — The Dow was down 39 at worst and up 53 at best in a volatile session that started the day on its highs after new home sales came in up 5.7% for September to a seasonally adjusted 389,000, marking the highest reading in 2.5 years. The median home price YonY on a new home rose by 11.7%. The market lost its steam later in the day with only minor changes in the statement post the FOMC monetary policy meeting where interest rates were left at 0.25% as expected. The commentary said a highly accommodative monetary policy would remain in place “for a considerable time after the economic recovery strengthens” and interest rates would likely stay near zero “at least through mid-2015”.
The Federal Open Market Committee said, “Information received since the Federal Open Market Committee met in September suggests that economic activity has continued to expand at a moderate pace in recent months. Growth in employment has been slow, and the unemployment rate remains elevated. Household spending has advanced a bit more quickly, but growth in business fixed investment has slowed. The housing sector has shown some further signs of improvement, albeit from a depressed level.” About 67% of US results have missed forecasts so far. US election on November 6 and the next president sworn in on January 20. Post election we have fiscal cliff negotiations which appear to be more risk than reward although the chances are that they will delay the timetable and push negotiations into the late part of the 1st Q in 2013. S&P 500 still holding above 1400 and the XAO still holding above 4500 (just). Gold went under $1700 overnight but closed above.
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- ANZ Bank (ANZ) — FY result — Profit of $6.011 billion up 6.38% and in line with an expected $6.066 billion. Statutory profit after tax for the year rose 6% to a record $5.661 billion. One broker says the “disappointing” net interest margin, lower 2nd H capital ratios and lower provision coverage are potential risks for fiscal 2013. ANZ is down 1.29% to 2527c.
- Wesfarmers (WES) — 1st Q sales in line — Total sales at supermarket chain Coles were up 4.2% to $8.4 billion. The result was in line with analyst expectations of a rise in total sales to $8.42 billion. WES is down 0.38% to 3447c.
- Amcor (AMC) — AGM — Is confident that they will meet FY earnings expectations after recording a solid start to the 2013 financial year. The company was interested in pursuing further acquisitions and has developed a priority list. AMC is up 0.39% to 779c.
- Mirvac Property Group (MGR) — 1st Q update inline — Reaffirmed their distribution guidance range of between 8.5c-8.7c. MGR is up 1.32% to 154c.
- A survey by Australian Property Monitors says house prices remain flat in the 3 months to September and recorded a 0.1% rise annually. Sydney, Melbourne, Perth and Darwin all recorded price increases over the first 9 months of the year.
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