The market is flat. The Dow Jones closed flat at 16,073. The market drifted higher over the day but fell towards the close, finishing unchanged in a narrow 50 point range.
Volume was low in the lead up to Thanksgiving on Thursday. It was Turkey Tuesday and many investors and traders are preparing for the holiday later this week.
Economic data was mixed. Housing permits reached a five year high and home prices were 13.3% above year ago levels but consumer confidence data was disappointing.
The S&P was also flat at 1802.
Oil was down 0.63% at US$93.50.
Gold rose US$1.30 to US$1242.10 per ounce.
The US$ was weaker against most major currencies. The Aussie dollar drifted lower and is currently trading at US$0.9127.
VIX volatility index rose 0.16% to 12.81.
US treasury markets were stronger — the yield on the 10 year bond fell three basis points to 2.709%. A solid $35 billion five year note auction caused little reaction. There is $29 billion of seven year notes auctioned tomorrow.
European shares were weaker — led by the UK FTSE down 0.87%, the French CAC down 0.57% and the German DAX down 0.11%. Greece fell 3.85%.
European bonds were stronger, with the yield on the Euro 10 year bond falling four basis points to 2.568%.
Base metal prices were weaker — led by zinc down 0.84%, nickel down 0.54% and copper down 0.51.
Iron ore fell US$0.60 to US$135.90 a tonne.
- The US is in holiday mode due to Thanksgiving on Thursday. It was Turkey Tuesday last night and volumes were low. This is expected to flow through to limited interest in our market today
- The Australian dollar rose yesterday after the RBA deputy governor refused to add to comments about the exchange rate or the likelihood of intervening. The $A has since drifted lower and is now trading at US91.44c.
- Data in the US was mixed — housing permits rose to a five year high and the S&P/Case Schiller home price index rose 13.3% from year ago levels, but consumer confidence fell to 70.4 from 71.2, a seven month low and below expectations of a rise to 72.4.
- AGMs today include AWE Limited (AWE), Bank of Queensland (BOQ), Sandfire Resources (SFR), Independence Group (IGO), Tox Free Solutions (TOX) and Pharmaxis (PXS). The Seek (SEK) AGM is tomorrow.
- Results today — Programmed Maintenance (PRG) first half results.
- Limited domestic data — Construction work done
- Data overseas — US data includes the leading indicator, MBA Mortgage Index, weekly jobless claims, durable goods, Chicago PMI and Michigan sentiment. There is also third quarter GDP in the UK.
- Programmed Maintenance (PRG) — First half profit up 1% to $12.4 million. Underlying profit was up 16% to $15.3 million. Revenue fell 5% to $724 million due to reduced activity from onshore mining projects. Lower earnings from the Resources division was offset by higher earnings from the Property & Infrastructure and Workforce divisions. As a result EBIT was up 7% to $21.8 million. Interim dividend of 6c. Outlook – PRG expects full year profit similar to full year 2013, with continuing strong cash flow, lower debt and the capacity to pay a similar or increased final dividend.
- Select Harvests (SHV) — AGM — The company delivered a strong 2013 result and has had a very successful year. The share price is up 261% this year alone.