Trader’s Edge – Tuesday 26 April 2016

Overseas Mkt Report – U.S. Stocks End Lower as Earnings Weigh (26-Apr-2016)

U.S. stocks closed lower Monday as the market continued to eye weak earnings and as investors looked forward to the Fed’s meeting on Wednesday. New U.S. homes sales were down 1.5% in March from February levels, but previous months were revised much higher. Overall March sales were up 5.4% year over year. There have now been four consecutive months with over 500,000 homes sold, the first time that has happened since 2008.

At the close, the Dow, S&P 500 and NASDAQ were all down around 0.2%. For Australian ADRs listed on the NYSE, BHP Billiton slipped 130 cents (-4.10%) to $30.54, ResMed gained 44 cents (0.72%) to $61.16, Telstra Corporation lost 12 cents (-0.57%) to $20.78, Spark New Zealand fell 11 cents (-0.90%) to $12.06 and Westpac declined 16 cents (-0.66%) to $24.10.

At 8:00 AM (AEDT), the 10-year Treasury note yield was 1.91% and the 5-year yield was 1.38%. Shares of Valeant (VRX) initially rose but then slipped more than 2% after the company confirmed that Joseph Papa, CEO of Perrigo (PRGO), would be taking over the reins of the drug maker. Separately, Perrigo released disappointing preliminary first-quarter results and year-end guidance, sending shares down 18% at market close. Gannett (GCI) has offered to buy Tribune Publishing (TPUB) for US$815 million, including the assumption of the Tribune’s debt. The offer represents a 63% premium to the Tribune’s Friday closing price.

European markets were lower Monday. The FTSE 100 and Germany’s DAX were each down 0.8%, while the French CAC 40 was off 0.5%.

Asian shares were also lower. The Nikkei 225 and Hang Seng were each down 0.8%, while the Shanghai Composite was off 0.4%. India’s Sensex was down 0.6%.

Australian Market

Local Markets Expected To Open Lower ahead of the local open, SPI futures were 25 points lower at 5,211. Local markets were closed yesterday for ANZAC Day.

Annual General Meetings today (ASX 300)

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