The market is down 15. The SFE Futures were up 2 this morning.

The Dow Jones closed up 44 overnight. It was up 164 early on positive Chinese GDP data and a statement from Bernanke saying he would adjust monetary policy (print more money) if required. But the market slid back on concern that the US won’t meet its deadline to raise its debt limit and avoid default and on a Moody’s threat to downgrade US debt and US banks. On top of that the US federal budget deficit contracted slightly more than expected.  The gold price was up $23.20 to $1585.50, a new high, while the oil price was up 62c to $98.05. The Australian dollar is buying 107.55 US cents, up from 105.98c.

In the news today…

  • David Jones (DJS) issued a profit warning at 7pm last night. DJS talked about “a dramatic deterioration” in trading conditions and that their FY net profit (FY results @ 21st September) would see a fall of between 0.5%- 2% compared to last year with H2 profit down 9-12% and 1st half profits in 2012 down 15-20%. DJS down 16% to 328c. The rest of the retail sector has been sold off.
  • In response Myer have confirmed FY2011 earnings guidance this morning. Myer still expects full year net profit to be up to 5% below the previous year’s net profit of $169m. MYR down 4.9% to 252c.
  • Iluka Resources (ILU) has raised its 2011 production guidance after reporting strong production in the first half.  Sales were up 11.8% in the half and revenue per ton was up 48.8%.  ILU up 3% to 1735c.
  • Following the phone hacking scandal in the UK, News Corp (NWS) has abandoned its acquisition of the remaining 60.9% of BSkyB in the UK. On top of the recently announced buyback there is talk of the BSkyB funds being redirected into some other capital management initiative. It seems the share price has become the focus of the company to the short term benefit of other shareholders. NWS up 4.1% to 1535c.
  • There is a lot of research around on aluminium smelter Alumina (AWC) this week post the in line results from their JV partner in the US Alcoa. The majority of brokers did a bit of downgrading of earnings and target price although a couple seem to think there is some “value” in the stock at these prices. AWC down 0.5% to 215c.
  • New Zealand’s GDP grew at the fastest pace in a year in the March quarter rising 0.8%. Economists expected growth of 0.4%, after 0.5% growth in the 4th quarter. The NZ dollar jumped to a 30-year high against the US dollar.
  • Stocks hitting 52-week lows today: ANZ, CPU, CSR, DJS, EGP, FXJ, HVN, WBC, WDC.

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