Morning Market Report

The market is down 22 points. The Dow Jones finished down 26 –– it was up 34 at best and down 72 at worst. The intra-day all-time high of 15542 was hit in May. Now 15542. The S&P 500 closed down 6. 

Better-than-expected PMI numbers in the eurozone (eurozone PMI at 50.4 was back in “expansion” mode and up from 48.7 and consensus of 49.1), with most European markets up and bonds down (bond yields up).

Talk of a Chinese stimulus announcement has rather negated the weak HSBC Chinese Flash PMI number yesterday. The Chinese market was down 0.52% yesterday, with Japan down 0.32%.

US New home sales came in better than expected at +8.3%. Highest since May 2008. Strong housing numbers encourage expectations of a material tapering of the Fed’s current quantitative easing program over the near term. Note, however, that new home sales account for less than 10% of total home sales in the US. 

Resources down with BHP and RIO down 2.39% and 1.97% in the US with BHP closing at the equivalent of 14c down on last night’s close in Australia. The A$ hit 93.19c yesterday but on the back of the weak Chinese PMI number and the lower than expected CPI number yesterday it is back to 91.53c. 

Royal baby name — George Alexander Louis.

Liverpool played to a crowd of more than 95,000 in the MCG last night —  the biggest crowd it has ever played in front of. 

Greece will now have to wait until later this week for a decision on its next round of bailout monies after one of 22 conditions for the payment failed to pass muster. The next handout is valued at 2.5B euros. The struggling country will also receive 1.5B euros from profits earned on bond purchases by euro-zone central banks. 

Metals mostly up. Copper prices retreated in later trade in the wake of a Goldman Sachs report the gist of which was that surpluses would exert downward pressure on prices of key commodities.

Oil price down $1.84 to $105.39. Energy market players went into profit-taking mode after the latest round of US inventories data pointed to increased stockpiles and the July HSBC “flash” Chinese PMI number disappointed.

Gold price down $15 to $1319. The gold price has been up 14.33% from its low of $1179 on June 28 to the recent peak at $1348.70. Spot iron ore was up 20c to $132.10.

US Results

  • Apple up 5.14%
  • Boeing down 0.78%
  • Caterpillar down 2.43%
  • Delta Airlines up 1.71%
  • Eli Lilly up 3.06%
  • Ford up 2.54%
  • General Dynamics up 1.52%
  • Motorola down 6.57%
  • Pepsico up 0.65%
  • US Airways up 2.49%
  • Applied Micro down 2.30%
  • E*Trade up 4.26% after hours
  • Facebook up 16.6% after hours
  • Qualcomm up 4.33% after hours
  • Visa up 2.14% after hours.

ANNOUNCEMENTS & STORIES

  • Macquarie Group (MQG) — AGM — Says it is on track to deliver an improvement in 2014 earnings, despite the challenges by ongoing market volatility. But the company would be impacted by the depreciation of the Aussie as it earns more than 60% of income from overseas. A 10% movement in the Australian dollar will impact financial year earnings by 6%.
  • Newcrest Mining (NCM) — Has reaffirmed an increased 2014 gold production forecast after gold produced was 2.11 million ounces, which was in line with guidance of 2 million to 2.15 million ounces. It flagged  lower production in the September quarter. It expects gold production for fiscal 2014 to be between 2 million to 2.3 million ounces. Production cash cost were $750 per ounce and total cost of $1040 per ounce.
  • OZ Minerals (OZL) — June quarter results gold lowered copper maintained — The company has reduced its financial year production guidance after posting falls in both gold and copper output during the June quarter. 17,379 tonnes of copper concentrate was produced lower than the 25,521 tonnes previously. 31,018 ounces of gold was produced lower than the 34,475 ounces produced in the previous quarter. Financial year production guidance for gold was lowered and is now expected to be between 120,000-130,000 down from 130,000-150,000 ounces. Financial year copper guidance was maintained at a 82,000-88,000 tonnes.
  • Ausenco (AAX) — Is down 27% after a business update.
  • Mining services and gold stocks are down this morning.

Get Crikey for $1 a week.

Lockdowns are over and BBQs are back! At last, we get to talk to people in real life. But conversation topics outside COVID are so thin on the ground.

Join Crikey and we’ll give you something to talk about. Get your first 12 weeks for $12 to get stories, analysis and BBQ stoppers you won’t see anywhere else.

Peter Fray
Peter Fray
Editor-in-chief of Crikey
12 weeks for just $12.