The market is getting thumped today and is down 78. The SFE Futures suggested a 70 point fall this morning.

The Dow Jones closed down 226.4 overnight moving in a 239 point range and closing more than 1.5% lower on concerns about the mortgage market and lower-than-expected earnings results.

THE INFLATION NUMBERS are out – they are not too scary but they are a bit higher than expected and compound the higher than expected PPI numbers on Monday. Q2 core inflation up 0.9% against expectations of +0.7%. Headline CPI up 1.2% taking YonY number to +2.1%.

  • One of the best performers in the market yesterday was HFA Holdings (HFA) up 18% after the acquisition of US investment house Lighthouse Partners for $707m. It is up another 9% or 25c to 300c this morning.
  • Lend Lease (LLC) announced they have won a £1.5bn contract to develop the Elephant & Castle district in Central London. Price up 10c to 1880c.
  • Virgin Blue (VBA) have announced flights to Los Angeles and San Francisco, and Merrill Lynch believe it could increase their earnings by 15%-20%. VBA unchanged at 222c.
  • Macarthur coal down 2.5% after their 4th Q production report with production down 22% held up by port constraints.
  • There is some IAG bid talk. IAG down 6c to 597c this morning.
  • Brambles attracting a bit of attention – outperforming in big volume. BXB down 2c to 1106c. It bottomed this week at 1085c.
  • United Group (UGL) up 8c to 1828c on the back of a $180m contract announcement.
  • Mincor (MCR) down 7c to 403c despite 4th Q production numbers and the forecast of a 28% lift in production in 2008.
  • Goldman Sachs JB Were have downgraded Leighton Holdings (LEI) to a SELL.
  • Newcrest Mining (NCM) down 6c to 2601c better than expected production numbers yesterday.
  • IBA Health (IBA) up 1c to 111.5c on the back of the announcement of upped earnings guidance.
  • Oil Search (OSH) down 3% today or 13c to 399c on the back of broker downgrades.

Despite all these subprime mortgage market worries the bond markets in the US, UK and here are having a significant recovery from the recent bond market collapse. Any more of this and the private equity bidders will be back. We have a list of the cheapest stocks and another of the highest gross yields in the ASX 200 in the Marcus Today newsletter today.

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