The market is down 24 points.

The Dow Jones was up 42 points at 16,776 — the market opened weaker and was down as much as 16 points before recovering. There was some corporate activity and markets were focused on developments in Iraq. Industrials, Technology and Materials performed well while Consumer and Financials lagged. Volume continued to be below average and the market traded in a 70 point range.

US economic weaker — The University of Michigan Consumer Sentiment report dropped to 81.2 in June from 81.9 for May and below the 82.9 expected. It is the lowest reading since March. There were no strong indications of pipeline pricing pressures.

Iraq update — a breakaway militant group of Al-Qaeda has taken control of parts of the country. US President Barack Obama said he will review his options over the coming days, but any potential US action will have to be supported Iraqi leaders and a political solution was preferable to a military one.

European shares were weaker — The UK FTSE was down 0.98%, the German DAX was down 0.26% and the French CAC was down 0.24%. But some peripheral markets like Spain and Italy rose.

The Aussie dollar was weaker and is currently trading at US94.04c.

Gold was little changed, up US$0.10 or 0.01% to US$1273.70 an ounce.

Oil rose US$0.38 or 0.36% to US$106.53 a barrel.

Base metals were stronger — zinc rose 0.65%, copper rose 0.54% and nickel was up 0.40%.

Iron ore fell US$0.60 to US$90.90 a tonne.

US economic data — PPI: Actual -0.2%, consensus 0.2%, prior 0.6%, Core PPI: Actual -0.1%, consensus 0.1%, prior 0.5%, Michigan Sentiment: Actual 81.2, consensus 82.9, prior 81.9

STORIES

  • Echo Entertainment (EGP) — Profit upgrade. Forecasts Financial year 2014 profit of $150m-153 million and EBITDA of $430-435 million, which is above market consensus of $411 million. The upgrade comes on the back of higher revenue growth. March quarter revenue growth was 5.7% and this has accelerated to 10.2% between January and May.
  • Arrium (ARI) — Has announced that its debt refinancing was substantially oversubscribed. Deutsche Bank has downgraded to Sell from Hold, target price was cut by 35% to 65c.
  • Flight Centre (FLT) — Has announced plans to create a destination management company in partnership with Vietnam’s largest privately owned travel and hospitality group Thien Minh Group (TMG).
  • Super Retail Group (SUL) — Has cut its financial year profit forecast and blamed the federal budget and warmer than usual temperatures experienced during autumn for lower sales. It now expects a profit rise of around 5% to $107-108 million.