Trader’s Edge – Wednesday 27 April 2016

Overseas Mkt Report – U.S. Stocks End Mixed as Earnings Roll In by (27-Apr-2016)

U.S. stocks closed mixed Tuesday as caution prevailed ahead of a barrage of tech earnings and an updated policy statement from the Federal Reserve. The energy sector led gains, helping to offset declines in health-care and consumer-staples sectors.

The Case-Shiller Home Price Index rose by 5.3% in February from 2015 levels, the same year-over-year gain reported in January. West coast markets dominated the fastest growing cities. Durable goods orders were up 0.8% in March, but much of that increase was driven by military demand. Core orders, which are seen as an indicator of private business demand, were flat in the month.  Consumer confidence slipped in April, according to the Conference Board. The reading of 94.2 was down from 96.2 in March and below the 95.8 expected by economists.

At the close the Dow was up 0.1%, the NASDAQ was down 0.2%, while the S&P 500 had gained 0.2%. For Australian ADRs listed on the NYSE, BHP Billiton rose 52 cents (1.72%) to $31.07, ResMed slipped 21 cents (-0.34%) to $60.95, Telstra Corporation lifted 23 cents (1.11%) to $21.01, Spark New Zealand gained 18 cents (1.51%) to $12.24 and Westpac rose 37 cents (1.54%) to $24.47. At 7:45 AM (AEDT), the 10-year Treasury note yield was 1.93% and the 5-year yield was 1.39%.

Shares of 3M (MMM) were off around 1% after the firm reported first-quarter results. The firm said it earned $2.05 a share versus $1.85 a share in the year-ago quarter as operating margins rose. Revenue was down 2.2% in the quarter due to the impact of a strong dollar and weakness in the firm’s electronics and energy segment.  Procter & Gamble (PG) reported better-than-expected results. Earnings of 97 cents per share were ahead of the 75 cents a share in the year-ago quarter and the 82 cents a share expected by analysts. Gross margins and organic sales rose in the quarter, but volume was off due to weakness in developing markets.  DuPont (DD) boosted its 2016 earnings outlook after it reported better-than-expected results on the back of its agriculture and nutrition divisions. The results come ahead of the firm’s planned merger with Dow (DOW) which is schedule to close later this year, pending regulatory approval. Shares rose over 2% on the report.

European markets finished mixed after a choppy trading session.  The FTSE 100 was up 0.4%, while the French CAC 40 and Germany’s DAX each fell around 0.3%.

Asian shares also ended mixed.  The Shanghai Composite rose 0.6%, the Hang Seng was up 0.5%, while the Nikkei 225 was down 0.5%. India’s Sensex lifted 1.3%.

Australian Market

Local Markets Expected To Open Higher – ahead of the local open, SPI futures were 20 points higher at 5,125.Tuesday 26 April – close. The local market opened lower today on the back of losses on Wall Street overnight from weaker oil prices. Local stocks did rebound briefly at 11:00 am to break through the flat line however the positivity was short-lived as stocks fell below and closed lower, weighed down by resource stocks. There were mixed results from the sectors; utilities gained most significantly while materials were the biggest laggard. The Australian dollar fell against most major currencies.

Annual General Meetings today (ASX 300)

APN Outdoor Group Limited

Companies trading ex-dividend next business day (ASX 300)

Bank of Queensland Limited

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