Morning (AM) Market Report

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Published on Thursday, 08 September 2016 00:00

U.S. stocks finished little changed overnight as investors contemplated the outlook for U.S. interest rates.

Thursday, 8th September, 2016

According to press reports, the Federal Reserve's Beige Book report painted a generally positive picture of the U.S. economy, providing more fodder for the central bank as it considers an interest rate hike in the near term.

The Nasdaq closed at a record high as tech stocks rallied, helped in part by Apple Inc. (AAPL) which rose 0.6% after it unveiled the iPhone 7 at its flagship product event in San Francisco. At the close, the Dow Jones was down 0.1%, while the Nasdaq was 0.2% higher and the S&P 500 remained flat.

John Wiley & Sons (JW.A) reported weak first-quarter earnings, paced by disappointing education results. Revenue fell 2% on the quarter, and adjusted EPS dipped 9% excluding currency impacts. New Jersey Resources (NJR) announced an Administrative Law Judge's approval of a plan to raise New Jersey Natural Gas' gas rates by $45 million beginning in October 2016. HD Supply (HDS) released its second-quarter earnings report. After previously generating sales growth comfortably above the industry, the latest quarterly report was marred by a sales shortfall from poor inventory planning and a reduction in the 2016 earnings outlook. EOG Resources (EOG) announced on Sept. 6 the acquisition of Yates Petroleum for $2.5 billion. The transaction significantly increases EOG's footprint in the Permian and Powder River basins and increases the company's "premium" drilling inventory.

For Australian ADRs listed on the NYSE, BHP Billiton slipped 55 cents (-1.77%) to $31.04, ResMed added 15 cents (0.22%) to $67.60, Telstra Corporation gained 8 cents (0.43%) to $19.70 and Westpac rose 24 cents (1.06%) to $22.92. At 7:45 am (AEST), the 10-year Treasury note yield was 1.54% and the 5-year yield was 1.12%.

European stocks finished higher, led by a rise in oil and gas shares. The FTSE 100 was up 0.3%, while the German DAX and the French CAC 40 both finished 0.6% higher. Asian shares were mostly lower. The Nikkei 225 fell 0.4%, while the Hang Seng and India's Sensex were both down around 0.2%. The Shanghai Composite finished relatively flat.

Ahead of the local open, SPI futures were 18 points lower at 5,396.