Morning (AM) Market Report

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Published on Thursday, 01 September 2016 00:00

U.S. stocks finished lower overnight as energy shares tracked oil prices lower, while the S&P posted a loss for August to mark the first negative month for the benchmark index since February.

Wednesday, 1st September, 2016

The Dow Jones Industrial Average fell 0.2% for the month to end a six-month winning streak, according to media reports.

At the closing bell, the Dow Jones was 0.3% lower and the S&P 500 and NASDAQ were both down 0.2%.

An ADP jobs report confirmed that July job gains in the U.S. private sector were above expectations. August saw 177,000 jobs added, above the expected 175,000 jobs. ADP revised July's gain to 194,000 from the original estimate of 179,000. Pending U.S. home sales in July reached the second-highest reading in a decade, as a solid jobs market and low mortgage rates supported buying. The Chicago purchasing managers index for August fell 4 points to 51.5 from the previous month. Palo Alto Networks (PANW) ended fiscal 2016 on a positive note, reporting top-line growth above management's guidance and largely in line with expectations. However, product revenue growth continued to rapidly decelerate, owing to customer purchasing patterns shifting to subscriptions and the overall tepid demand environment.

For Australian ADRs listed on the NYSE, BHP Billiton declined $1.21 (-3.88%) to $30.00, ResMed fell 53 cents (-0.79%) to $66.69, Telstra Corporation lost 13 cents (-0.65%) to $19.76 and Westpac dropped 26 cents (-1.16%) to $22.11. At 7:45 am (AEST), the 10-year Treasury note yield was 1.58% and the 5-year yield was 1.20%.

European markets fell on Wednesday. The FTSE 100 and Germany's DAX were both down 0.6%, while the French CAC 40 was down 0.4%. Asian markets finished mostly higher. The Hang Seng fell 0.2%, while the Nikkei 225 and Shanghai Composite rose 1.0% and 0.3%, respectively. India's Sensex rose 0.4%.

Ahead of the local open, SPI futures were 19 points lower at 5,391.