The market is down 61. The SFE Futures were down 80 this morning.
Wall Street closed down 265 overnight. It was the worst session in six weeks with the S&P 500 falling 2.8% and the Dow 2.5%. The US trade deficit widened by a record $7.9bn in June prompting concerns that the US 2nd GDP figure will be revised down from +2.4% to as low as +0.3%. After this week’s FOMC meeting it is clear the US economic expectations are now in reverse. The Bank of England also said that economic growth will slow to below target levels. The Oil price fell $2.45 to $77.80 and Gold put on $1.20 to $119.20. The Aussie dollar is below 90c again — now at 89.50c from 91.27c yesterday morning.
Today’s results … a few more bombs going off CPU’s disaster yesterday.
- Telstra (TLS) — down 7.38% to 300c on the back of disappointing guidance following their FY profit result. Net profit fell 4.7% to $3.88bn, in line with the $3.87bn analysts expected, but said revenue will be flat and EBITDA will be lower in the year ahead. CEO David Thodey says the payoff for investors, following a “transitional” year will be in FY12.
- Coca-Cola Amatil (CCL) — up 4.62% to 1177c — 1st half profit came in at $212.7m, up from $189.9m last year. Analysts were expecting $209m. EBIT was up 10% to $373.8m, stronger than the high single-digit growth expected by the company.
- James Hardie (JHX) down 7% to 571c after announcing a 1Q net profit of $US104.9m thanks to a weaker $A. But net operating profit, excluding asbestos liabilities and other expenses, fell 3% to $US40.5m. They also warned of a subdued US housing market.
- Transurban (TCL) — FY result in line with expectations — FY EBITDA figure came in at $629.9m, in line with the $627m analysts had expected on average. TCL up 6c to 449c.
- Qantas (QAN) — Underlying profit within guidance — Underlying profit (before tax and one-off’s) up to $377m from $100m last year, within guidance of $300m-$400m. QAN down 1.59%.
In other news today…
- MYER Ltd (MYR) — up 4% to 362c — FY Sales and EBIT update — FY sales grew just 0.7% to $3.28bn, below the company’s own forecasts on sales growth between 1-2% but more importantly, they upped their FY EBIT forecasts to $265m-$272m, up from previous estimates of $261m.
- AGL Energy (AGK) says their JV with NZ’s Meridian Energy has signed binding contracts to construct the $1bn Macarthur wind farm in Victoria. Costs will be split between the two companies. A Leighton Holding (LEI) consortium has been awarded the contract. AGK up 7c to 1512c, LEI up 37c to 2945c.
Australia’s unemployment rate came in at a seasonally adjusted 5.3% in July, compared to an unrevised 5.1% in June.
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