Marcus Today End Of Day Report
VIEW MORE ARTICLES BY HENRY JENNINGS
- ASX 200 up +67; bounces hard on overseas optimism to 5962.
- Tweets hint at limited trade wars.
- High 5976 Low 5909, volume thin.
- RBA leaves rates unchanged.
- Broad-based gains with financials and miners leading.
- Energy stocks in vogue.
- AUD steady at 77.70c.
- Bitcoin slips slightly to US$11,254.
- US futures kick on up +21 points.
- Asian markets retrace on trade wars fears with Japan +1.19% and China CSI up +0.36%.
FUTURES AND HIGHS AND LOWS
- MARCUS CALL – Wall Street has rebounded. There's a technical pennant on the S&P 500. Woodside and the price of oil and other interesting stuff.
- TRADING PORTFOLIO – One new trade, no stop losses raised. Henry is getting interested in one particular bombed out stock.
- SMALL STOCK PORTFOLIO – Henry is still cashed up and looking for opportunities. NOX could be one of them.
- INSIDERS – We talk telcos. And we update you on OGX.
- MEDIA - Catch Marcus on ABC tonight and Henry on Sky Business tomorrow at midday.
- INSIDERS 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:
If the market wobbles then Stock Picking will be a lot more important this year. Find out how to do it on one of my one-day courses costing $750 - click on the button below - we are adding new dates all the time as they sell out. We also have a Beginners half day course for $199:
Advancers and Decliners
- MSB -6.67% suffers selling pressure.
- RFG -11.97% broker downgrades continue.
- WTC +3.36% bounces hard.
- STO +3.48% oil price rises.
- CIM +2.09% awarded $150m Atom services contract.
- LOV -2.45% profit-taking.
- MOC -7.50% ex-dividend and thin volume.
- SGH -0.25% retraces on thin volume.
- S32 +4.26% bargain hunters emerge
- ZEL +5.36% becoming a substantial shareholder.
- XRO +2.98% recovers after CEO transition.
- RCR -0.48% profit-taking.
- DMP +2.87% confirms second executive’s margin loans.
- Speculative stock of the day: BARD1 (BD1) +130.00%. Positive ovarian cancer test results with 89% sensitivity and 82% specificity.
- Biggest risers – BD1, 1AG, RMT, BOA, GTG, OEC, AO1.
- Biggest fallers – AJC, EPM, RXH, GMN, BAS, PRL, RNL.
- Telstra (TLS) +2.12% News Corp (NWS) +2.18% - TLS agreed with NewsCorp to combine Foxtel and Fox Sports Australia. NWS will have a 65% shareholding in the entity and appoint four directors (including the Chair) to the combined board. Telstra will have a 35% stake and will appoint two directors. The combined company will endeavour to emphasise live streaming products, deliver new packages across devices and platforms and expand their distribution channels for both Foxtel and Fox Sports. Patrick Delany will be the CEO. Telstra said in a separate statement that it expects to book a one-off accounting gain of A$263m for the deal, as a result of the fair value of the combined business compared with the book value. There are no changes to its previously stated guidance for FY18.
- Vocus (VOC) +6.19% - Bob Mansfield has been appointed non-executive Chairman of the company as the board renewal and management changes continue. Mansfield has been a non-executive director since January 2017. He has also been chair of TLS and was responsible for building Optus.
- BHP Billiton (BHP) +2.10% - Chief, Andrew McKenzie says Trump tariffs are a ‘Black Day’.
- Philip Morris will cut its Australian workforce by 150 jobs as part of a restructure.
RBA leaves rates on HOLD again:
- Cash rate unchanged as expected. No plans to adjust anytime soon, benign wage growth and inflation cited as the main reasons. The RBA made it obvious it is waiting for wages to pick up before it would consider a rate hike.
- “Inflation is likely to remain low for some time... a gradual pick-up in inflation is, however, expected as the economy strengthens.” The central forecast is for CPI inflation to be a bit above 2% in 2018 and, the bank anticipates the economy will grow faster than it did in 2017, on the back of increased non-mining investment and positive business conditions.
- The RBA said forward indicators “continue to point to solid growth in employment over the period ahead, with a further gradual reduction in the unemployment rate expected. It did, however, caution that achieving full-time employment would be difficult with current high levels of underemployment.
- Retail sales have risen by 0.1% M/M against expectations of a 0.4% move. The number is volatile though so not likely to move markets by much.
- In current prices, the trend estimates for Australian turnover rose 0.3% in January 2018 following a rise of 0.3% in December 2017 and a rise of 0.2% in November 2017.
- Current account deficit increases to $14.0bn.
- Increased goods imports, flat goods exports and a widening net primary income deficit were the main contributors to the current account deficit increase in the December quarter 2017, according to latest figures from the Australian Bureau of Statistics (ABS).
BOND MARKET UPDATE
ALL ORDS SECTOR SUMMARY
ALL ORDS TOP MOVERS
ALL ORDS BOTTOM MOVERS
ASX 200 SECTOR SUMMARY
ASX 200 TOP MOVERS
ASX 200 BOTTOM MOVERS
ASIAN MARKETS NEWS
- Bitcoin rises above 50-day average for the first time since January.
EUROPE AND US MORNING HEADLINES
- Shame. A US judge has ordered Martin Shkreli, the former pharmaceutical CEO who was convicted of fraud last year, to forfeit US$7.36m in assets including a one-of-a-kind Wu-Tang Clan album and Picasso painting. Couldn’t happen to a nicer guy.
- Walmart will start offering prepared meals at its stores for the first time. Ten different meals are now available in 250 stores, and the program will expand to 2,000 locations by year’s end.
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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