Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 down 20 points to 6029 on weaker metals.
- High 6038 Low 6021.
- ASX 300 Mining index pulls back from 3-year high.
- Positive week up 1.1%.
- Banks mixed. Miners weigh.
- REITs and defensives firm.
- Healthcare wobbles on CSL.
- TEN takeover approved media stocks better.
- RBA statement of monetary policy.
- AUD firmer at 76.81c.
- US futures up 25.
- Asian markets weaker with Japan down 0.57% and China CSI up 0.11% on the eve of Singles Day.
- One stop loss triggered.
- Small stock focus on GNX and DWS.
- Lithium stocks performing.
Movers and Shakers
- JHG +4.95% Positive results.
- PLS +4.59% MOU with South Korean company.
- APT +2.74% continued strength.
- WFD +2.96% US speculation on corporate actions.
- ANZ -0.03% NAB -0.46% settlements approved by court. Say sorry.
- MIN -4.51% profit taking.
- XRO -4.84% fall out from results and NZ delisting.
- A2M -2.62% profit taking.
- ELD -2.08% AGM announcement.
- CSR -3.94% Ex dividend.
- STO -3.44% suffer after investor day.
- CLQ -4.82% profit taking as metals retreat.
- ERA +11.90% Uranium mine closures.
- BUD -12.50% Webinar.
- Speculative stock of the day: Golden Mile Resources (G88) +150.00% Wide intercepts at new nickel discovery. Quicksilver Nickel showed 44m @1.24% nickel and 28m at 1.10% Nickel. Significant cobalt mineralisation too.
- Biggest risers –HT1, JHG, NWS, WFD, MYR and ERA.
- Biggest fallers – MIN, IRI, CLQ, XRO, GTN and STO.
- MARCUS CALL – Wall Street up 53% in almost two years – falls as much as 253 points last night. A warning sign.
- LESSON OF THE DAY – Stop Losses – there are many different types of stop loss.
- SMALL STOCK PORTFOLIO – Henry has retailer KGN on his radar.
- INSIDERS – We have a BUY on WBE thank to ‘Shadowfax’.
- RETIREMENT TODAY - It's hard getting ahead in the market. Harold talks about the virtues of sharing ideas.
- CONNECT WITH US - We invite you to send us your own stock ideas. We also have the facility for you to email us any questions. Click on the "Ask Marcus Today" button in the newsletter or below - Ask us anything:
FUTURES AND HIGHS AND LOWS
- News Corp (NWS) +4.56% first quarter revenue increased 5% mainly as a result of changes to Google and the way it preferences genuine news rather than fake news. The result beat expectations of US$1.97bn with total reported revenue of US$2.06bn. Growth was also boosted by the acquisitions of Australian Regional Media, UK talkback radio group Wireless and a $US26 million positive impact from foreign currency fluctuations. local newspapers maintained their digital growth momentum with subscriptions up 30%. In 2018, NWS plans to combine its Australian pay-TV businesses Foxtel and Fox Sports into a sports and entertainment Pay-TV player in partnership with Telstra (TLS), which owns half of Foxtel. NWS will own 65% of the new company.
- REA Group (REA) +1.72% lifted September quarter earnings from core operations by 24% to $107m. total revenue for the three months to September 30 rose 21 per cent to $190m, driven by strong residential growth and the inclusion of financial services revenue from August 1.
- Myer (MYR) +2.86% The war continues with chair Garry Hounsell out and about meeting shareholders here and overseas before the AGM on 24th November. Meanwhile Solly Lew has released his ‘dream team’ of board nominees, former Myer Grace Bros chief Terry McCartney, former UBS managing director Tim Antonie and former Federation Centres CEO Stephen Sewell.
- Pilbara Minerals (PLS) +4.59% announced a MOU for a potential South Korean downstream processing facility. Under the proposed agreement PLS would supply up to 30,000 tonnes of lithium hydroxide to the South Korean battery industry.
- Janus Henderson Group (JHG) +4.95% 3Q results this morning with a diluted EPS of US49c. Net inflows of US0.7bn with positive flows into equities and alternatives and fixed income. Merger related synergies now at least US$125m up from US$110m with AUM up to US$360.5bn up 5%.
BEST AND WORST
Statement of Monetary Policy RBA
- The various measures of inflation are expected to reach 2–2¼ % by the end of the forecast period.
- The outlook for the Australian economy is little changed from three months ago.
- The outlook for business investment looks to be more positive than it has for some time.
- Dwelling investment looks to have peaked earlier than previously expected
- The global economy has strengthened further over the course of 2017. GDP growth was stronger than expected in the September quarter.
- The stimulatory setting of monetary policy in Australia has supported the economy and helped generate a decline in unemployment. Over the period ahead, further progress on reducing spare capacity in the economy is expected, which in turn would support the forecast gradual increase in inflation.
- The near-term outlook for growth in Australia’s major trading partners is a little stronger than at the time of the August Statement on Monetary Policy.
- GDP growth in the major advanced economies is expected to be above potential growth over the next couple of years, partly because monetary policies are expected to remain largely accommodative.
For a full statement click here
A RBA Snapshot of the state of the local economy
- Over the ditch, the NZ Finance Minister Grant Robertson said he expects to discuss the central bank’s current focus on the 2% midpoint of its inflation target band once a new governor is appointed. The bank is being shaken up. Adding full employment would create a dual mandate dual and lead to looser policy in some situations.
- China will remove foreign ownership limits on its banks and asset-management companies, and allow overseas firms to take controlling stakes in local securities ventures. Foreign firms will be allowed to own up to 51% in securities ventures.
- Toshiba fell 8% amid reports the troubled conglomerate was considering a share sale to bolster its capital position
- Top of the market stuff? IPO, Razer was 291 times oversubscribed.
EUROPE AND US MORNING HEADLINES
- The EU circulated a document that called for Northern Ireland to maintain the rules of the customs union and single market after Brexit. What the EU is demanding is all but impossible for Britain, unless the whole U.K. stays in the customs union. Something PM May has ruled out. Currently the EU asking for about EUR60bn ($90bn) and the UK so far offering around EUR20bn. No trade talks until divorce settlement sorted.
- May is set to enshrine in law the leaving date.
- The UK Government has offered the world’s largest oil company Saudi’s Aramco a US$2bn loan guarantee in an attempt to secure the listing for the LSE. The UK Export Finance (UKEF) group said the loan guarantee will be used to help to support Saudi Aramco in buying more from the UK to help deepen trade ties.
- Despite better performance form fund managers in the USD US$150bn still left the building.
- Uber looks set for a 2019 float according to new CEO.
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Henry Jennings has been involved in financial markets for over 35 years as both a trader and a broker in London and Sydney.
Starting his career in London trading derivatives and moving to Australia in 1989, Henry eventually settled at Macquarie Group, rising to become a Divisional Director responsible for Equity Trading in Australia. For the last decade, Henry has been involved in private client broking and now writes exclusively for the renowned financial newsletter Marcus Today. Henry regularly appears on ABC TV and Sky Business as a market analyst, commentator and strategist and has presented at various conferences most recently for the AIA on the Gold Coast.
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