Trader’s Edge – Monday 24 April 2017
Overseas Mkt Report – by (24-Apr-2017) U.S. markets ended in the red on Friday but off their lows after President Donald Trump pledged to reveal huge tax package cuts this week to reinforce his commitment to tax reform and deregulation.
Investors also had one eye on the French presidential election on Sunday, which is being viewed as a test of France’s political mainstream, and a barometer of French voters’ desire to maintain its European Union membership. At the closing bell, the Dow Jones was down 0.2%, the S&P 500 was down 0.3%, and the Nasdaq was 0.1% lower.
Maxim Integrated Products (MXIM) reported solid fiscal third-quarter results as the firm’s recent manufacturing efficiency moves continue to pay dividends. Revenue in the March quarter was $581 million, up 5% both sequentially and year over year, and above the midpoint of the firm’s forecast of $555 million to $595 million as discussed in January. Visa (V) is guiding to net revenue growth approaching 18% for its full fiscal 2017 year, including 2.0% to 2.5% of negative impact from the strong U.S. dollar. At the same time, its minimal reinvestment needs–the company had only $317 million in capital expenditures over the last six months–ensure that its owners share in the rewards.
For Australian ADRs listed on the NYSE, BHP Billiton fell 23 cents (-0.64%) to $35.76, ResMed gained 21 cents (0.30%) to $69.84, Telstra Corporation lost 8 cents (-0.50%) to $15.93, Spark New Zealand slipped 3 cents (0.23%) to $12.74, and Westpac declined 7 cents (-0.27%) to $25.80. At 7:45 AM (AEDT), the 10-year Treasury note yield was 2.25% and the 5-year yield was 1.77%.
European markets finished mixed on Friday. The FTSE 100 ended 0.1% lower, the French CAC 40 fell 0.4%, while Germany’s DAX ended up 0.2%.
Asian markets were also mixed. The Hang Seng was down 0.1%, the Nikkei 225 was up 1%, while the Shanghai Composite ended flat. India’s Sensex finished 0.2% lower.
Ahead of the local open, SPI futures were unchanged at 5,838.Friday 21 April – close. The Australian market opened higher following a strong lead from the U.S. market, and a rise in overnight commodity prices. The ASX 200 remained well above the flat line during the day, with strong gains from miners offsetting the impact of heavy sell-offs in the consumer staples sector, particularly Coca-Cola Amatil. Most sectors performed positively, with the exception of industrials, consumer staples, and telecommunication services. The Australian dollar appreciated against most major currencies but fell against the New Zealand dollar.
Companies trading ex-dividend today (ASX 300)
Ridley Corporation Limited