The market is up 27. The SFE Futures were up 36 this morning.

Wall St. closed up 43. Closed on its high again. Dow was up 52 at best and down 20 at worst. The FOMC statement repeated that the Federal Reserve will keep interest rates exceptionally low for an extended period of time. The S&P 500 and the NASDAQ both hit fresh 52 week highs. Oil price climbed 13c to $82.14, Gold price put on $17 to $1122 and the Aussie dollar improved to 92.07c from 91.43c.

In the news today…

  • David Jones (DJS) — 1H net profit in line with guidance — Results were well flagged and didn’t surprise. Net profit increased 10.2% to $100.5m, up from $91.2m. Analysts expected $101m. Declared a 12c interim dividend, up from 11c. Patersons maintain their Hold recommendation and prefers Myer Ltd (MYR). DJS down 1c to 506c.
  • AWB Ltd (AWB) — Market Update; Profit Downgrade — Not good. AWB down 11.8% to 93c. Guidance for FY profit (excluding significant items) to fall to $85m-$110m from previous guidance of $115m-$140m. They expect half year profit of between $25m-$35m.
  • Street Talk regurgitates speculation of a bid for Lihir Gold (LGL) by Newcrest Mining (NCM). Newcrest portfolio is copper-heavy and a gold acquisition would ensure they maintain their gold premium rating. LGL up 3c to 309c and NCM up 30c to 3382c.
  • Corporate Express (CXP) — Trading Halt — Announced they have received a takeover proposal and are currently considering it. They go ex-dividend 12.5c tomorrow. CXP last traded at 460c.
  • MEO Australia (MEO) — Trading Halt — share suspension relates to a deal with a JV partner. MEO last traded at 37c.
  • Macmahon Holdings (MAH) has won a 3 year $190m contract from Syntech Resources to develop and operate the Cameby Downs coal mine in the Surat Basin in QLD. MAH up 2c to 76c.
  • Asciano (AIO) up 3c to 190c on talk they might upgrade their earnings guidance. Guidance was given for FY EBITDA of $675m-$700m.
  • The RBA’s minutes yesterday suggested that Australia’s recovering economy is already creating labour shortages and bottlenecks in resources.
  • The Seven Network’s independent expert says the $2bn merger between Seven Network (SEV) and WesTrac is “fair and reasonable” but would erode value for minority shareholders. SEV down 9c to 791c.
  • Australian housing starts increased 15.1% in the 4Q compared to the previous quarter to a seasonally adjusted 40,022.
  • Stocks hitting fresh 52 week highs include: Seek (SEK), Indophil Resources (IRN), OneSteel (OST) and Lycopodium Ltd (LYL).

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