Banking On Good Results....
April 27th, 2010 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 11,205.03 | 0.75 | 0.0% |
| NASDAQ | 2,522.95 | -7.2 | -0.3% |
| S P 500 | 1,212.05 | -5.23 | -0.4% |
| FTSE 100 | 5,753.85 | 30.2 | 0.5% |
| Nikkei 225 | 11,165.79 | 251.33 | 2.3% |
| ASX 200 | 4,881.50 | -25.9 | -0.5% |
| COMEX Gold - Dec 09 | 1,154.00 | 0.3 | 0.0% |
| COMEX Silver - Sep 09 | 18.337 | 0.145 | 0.8% |
| COMEX Copper - Sep 09 | 352.8 | 1.5 | 0.4% |
| WTI Spot | 83.82 | -0.6 | -0.7% |
| AUD-USD | 0.9268 | 0.0009 | 0.1% |
| Aluminium | 2,265.50 | -28 | -1.2% |
| Copper | 7,660.00 | -1 | -0.0% |
| Lead | 2,253.50 | -22 | -1.0% |
| Nickel | 26,800.00 | -200 | -0.7% |
| Tin | 18,955.00 | 135 | 0.7% |
| Zinc | 2,355.50 | -30 | -1.3% |
Wall Street finished week mixed as strong earnings report from Caterpillar kept the market positive. The big banks fell following concerns over a regulatory overhaul in the financial sector. The Dow finished up 0.75 point or 0.01 percent to 11205.03. Caterpillar was up $US2.87 or 4.2 percent after the heavy-machinery maker posted a first-quarter profit above analysts’ estimates and raised its 2010 sales and profit outlook. However the financial sector fell as a proposed legislation from the Senate Democrats contained sweeping new rules for the derivatives market, likely to impact the revenue of most major banks. JP Morgan and Bank of America both fell more than 2 percent following the announcement with American Express also off 1.9 percent.
CSL
CSL saw no reason to change its market guidance in the wake of comments from Baxter International which prompted a query from the ASX in response to the selloff on Friday, CSL was down -7.3% to $33.94. “The company is not aware of any reason to alter the guidance provided to the market at the time of its half-year results.” The company is also suspending distribution of its paediatric influenza vaccine to children aged under 5 after reports of adverse reactions. CSL has potentially been oversold at current levels and may prove a buy if the stock is able to consolidate at current levels, the stock is well supported at $32.40.
The week ahead
Australia and New Zealand Banking Group kicks off bank reporting season on Thursday with analysts forecasting strong profits. Macquarie Group expects ANZ to deliver an annual cash profit of $2.1 billion, up 21.7 percent on its 2009 result. The broker anticipates earnings per share of 84cents and that the bank will pay a dividend of 46cents a share. While ANZ is likely to deliver strong profit growth, investors will likely focus on the Banks outlook statement. Westpac and NAB report next week.
Macquarie Group also reports this week, Friday, with the company releasing its full year results. Macquarie Group is expected to post a $1.02 billion full-year profit and earnings per share of 96 cents. The company has been rapidly expanding over the past couple of months, picking up assets in the US which should help drive future growth.
Woolworths also report this Friday and the company will be hoping to emulate the success of Wesfarmers when it reports its third-quarter sales figures. Woolworths generates 85.5 percent of its revenue from its supermarket chain compared with Wesfarmers which makes 56.4 percent from Coles. So far this year Woolworths share price has trailed Wesfarmers.
The SPI is currently at 4987 points trading up 23 points from Fridays close. Indicating the Aussie market is likely to open firmer this morning following stronger ADR’s.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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