Overseas Market Report -U.S. Stocks Edge Higher as Geopolitical Worries Weigh
U.S. stocks managed to offset early losses to end higher Tuesday, as concerns around the Turkish military's shooting down of a Russian jet fighter along the Syrian border subsided.
Third-quarter U.S. GDP was revised upwards to 2.1% from a previously reported 1.5% gain. The revision was driven mostly by a boost to inventory levels. Consumer spending was revised slightly lower. Corporate profits were off 1.1% in the quarter.
U.S. home prices rose 4.9% year over year in September, according to the S&P/Case-Shiller price index, up from the 4.6% rate in August.
At the close, the Dow and S&P 500 were each up 0.1%, while the NASDAQ was flat.For Australian ADRs listed on the NYSE, BHP Billiton added 35 cents (1.23%) to $28.78, ResMed gained 64 cents (1.09%) to $59.09, Telstra Corporation lifted 7 cents (0.33%) to $19.58, Spark New Zealand rose 9 cents (0.85%) to $10.67 and Westpac increased 10 cents (0.43%) to $23.10.
At 7:45 AM (AEDT), the 10-year Treasury note yield was 2.23% and the 5-year yield was 1.66%.
Tiffany & Co (TIF) reported worse-than-expected results. The firm said it made 70 cents a share in its third quarter, above the 29 cents a share in made in the year-ago quarter but below the 75 cents a share analysts had expected. Management also cut its outlook ahead of the holiday season as it continues to see pressure from a strong dollar and weak spending by tourists.
Shares of Campbell Soup (CPB) rose after the company reported earnings and raised its outlook. Adjusted earnings of 95 cents a share were well above the 75 cents a share it was expected to earn. The company now thinks earnings will grow between 4% and 7% for fiscal 2016, up from earlier guidance of 3% to 5% growth.
European shares were lower.
The FTSE 100 was off 0.5%, while the French CAC 40 and Germany's DAX were each down 1.4%.
Asian markets were mixed.
The Shanghai Composite and Nikkei 225 each rose around 0.2%, while the Hang Seng shed 0.3%. India's Sensex fell 0.2%.
Australian Market Report – Local Market Expected To Open Lower
Ahead of the local open, SPI futures were 20 points higher at 5,250.
Tuesday 24 November – close. The Australian market opened lower this morning on the back of further slides in commodity prices and losses from global equity markets. Local stocks finished sharply lower before the closing bell, ending a five-day winning streak, with the big banks and miners leading the downward charge. All the sectors experienced negative results, with health care being the worst performer. The Australian dollar appreciated against most major currencies.
The All Ordinaries fell 49.50 points to 5,277.20 while the S&P/ASX 200 dropped 50.00 points to 5,226.40.
In This Issue
Nufarm Limited (NUF)
Nufarm announced its decision to close its manufacturing operations at Calgary in Canada as part of its plan to build a more responsive, flexible and cost effective structure for the North American region via its facilities in the Chicago area. The rationalisation of the Company's Calgary manufacturing activities is expected to result in permanent annualised EBIT improvement of $3.3m. It will record one-off restructuring costs in the current financial year of $9.5m, of which $3.7m is a non-cash component. The North American operational changes are expected to be implemented by June 2016, with the savings fully realised in the Company's FY2017. NUF lost 44 cents to $8.42.
DUET Group (DUE)
DUET Group announced that Energy Developments (EDL) has successfully extended the contracting arrangements for its Appin and Tower Power Projects out to 2033. EDL has recently signed an 18-year tolling services agreement with Endeavour Coal, a subsidiary of South32, extending operations at the Appin and Tower Power Projects. Under the new agreement the existing 97 MW installed capacity will utilise mine safety gas from Endeavour Coal's Bulli Seam underground coal mine to provide a greenhouse gas abatement and energy solution. The agreement provides for a combination of commercial arrangements including tolling and gas supply at Endeavour Coal's option. DUE added 1 cent to $2.44.
Recent Contacts & Presentations
Tox Free Solutions (TOX), AWE Limited (AWE), Ausdrill (ASL), GR Engineering (GNG), Medusa (MML), Resolute (RSG), Kingsgate (KCN), Troy (TRY), Northern Star (NST), Sandfire (SFR), Regis (RRL), Saracen (SAR), Sino Gas & Energy (SEH), Dacian (DCN), Buru Energy (BRU), Carnarvon Petroleum (CVN), Otto Energy (OEL), Empire Oil & Gas (EGO), FAR Limited (FAR), Central Petroleum (CTP), Senex Energy (SXY),