The market is up 60. The SFE Futures predicted a 41 point rise this morning.
The Dow closed up 91 overnight. Dow up 95 at best and down 9 at worst. US Bonds up again - Bond yields have now fallen 50bps in a couple of weeks. Financial up 1.4% in the US. Oil price up 3.4% and Gold down 30c. Metals down on the LME.
Retailers flying on a profit upgrade from David Jones (DJS). Now expects a rise of 8-12% from its previous guidance of 0-5% - thanks to improved trading conditions in the last couple of months. 2H profit is also expected to jump 20-30% from similar guidance of 0-5%. DJS CEO says the company is usually the "first in and first out" of a downturn. Harvey Norman up 8.9%.Making the news today...
Qantas (QAN) says it has carried 2.8% fewer passengers in May compared with a year earlier. It has hedged 67% of its fuel requirement for the fiscal year that starts July 1 at a worst crude oil price of $US92 a barrel.PanAust (PNA) says the FIRB has given Guangdong the all clear to acquire a 19.9% stake in the company.
Hastie Group (HST) wins $38m contracts in the UK.Elders (ELD) says it forest products unit ITC Ltd has negotiated an unchanged benchmark price of $207.40 per bone dry metric ton, for exports to Japan. It has also completed an agreement to extend its refinancing facilities.
Macquarie Communications Infrastructure (MCG) says more than 90% of proxy votes have been in favour of CPPI's $3 a share takeover offer.Suncorp-Metway (SUN) announces it will buy back around $405m worth of its subordinated debt at a cost of $310m.
Australian Agricultural Company (AAC) says it will not be paying a final 2008 dividend.Norfolk Group's (NFK) subsidiary has secured a $96.5m contract for rail signaling relocation and installation for BHP Iron Ore's Rapid Growth project.
Macarthur (MCC) say their institutional placement was oversubscribed but the whisper is they struggled a bit. The details of their Share Purchase Plan are out.It is the first time in 42 years that BHP and RIO have started a financial year without an agreed industry wide price.
Also making the news...Morgan Stanley cuts CSL Ltd (CSL) target price to 3068c from 3180c and maintain their Equal weight recommendation on the back of their buyback placing a floor under the share price.
RBS Equities maintain their Sell recommendation on the National Australia Bank (NAB) saying it might have tax problem coming soon. NAB could have an additional tax liability of $367m-$615m.Morgan Stanley ups their ROC Oil (ROC) target price to 100c from 75c with an Equal-Weight recommendation describing the $69m equity raising as a move forward towards recovery.
Southern Cross Equities says News Corp (NWS) could easily get back to $18 a share. Share price now is 1331c.Bernie Madoff got 150 years for his $65bn Ponzi Scheme.
Today is the last day of the Financial Year.The Dow Futures suggest a 9 point rise on Wall Street tonight.
MARCUS PADLEY
