Morning (AM) Market Report

Details

Published on Friday, 09 September 2016 00:00

U.S. stocks finished lower overnight after Wall Street appeared unimpressed with Apple's latest iPhone, according to media reports.

Friday, 9th September, 2016

However, gains in energy shares limited the decline by the tech giant, which also said it would not release first-weekend sales of the new iPhone, thereby limiting analysts' early visibility on the popularity of the device, the reports said.

At the close, the Dow Jones, S&P 500 and Nasdaq were down 0.3%, 0.2% and 0.5%, respectively.

Intel Corp (INTC) announced it would spin out its security unit into an independent cybersecurity company valued at $4.2 billion. Alongside private equity firm TPG, the firm will establish a second incarnation of McAfee in a deal that effectively reverses Intel's $7.68-billion acquisition of McAfee announced in 2010. Hewlett Packard Enterprise Co (HPE) reported fiscal third-quarter results that missed on the top line versus market expectations but delivered EPS that were in line. The company also announced its plans to spin-off and merge its software assets with Micro Focus for $2.5 billion in cash and a 50.1% equity interest in the newly combined company, which translates to $6.3 billion at current prices. Western Digital Corp's (WDC) management updated its expectations for the first fiscal quarter of 2017, which ends on Sept. 30, 2016. This improved outlook follows the recent acquisition of SanDisk. Western Digital now expects first-quarter non-GAAP earnings per share of $1.00 to $1.05 compared with its earlier forecast of $0.85 to $0.90 and in line with Morningstar's estimate. The Valspar Corp (VAL) reported solid third-quarter results, with EPS increasing 15% year on year to $1.44 per share.

For Australian ADRs listed on the NYSE, BHP Billiton gained 19 cents (0.61%) to $31.23, ResMed lost 54 cents (-0.80%) to $67.06, Telstra Corporation fell 8 cents (-0.43%) to $19.62 and Westpac declined 7 cents (-0.31%) to $22.85. At 7:45 am (AEST), the 10-year Treasury note yield was 1.60% and the 5-year yield was 1.18%.

European markets finished mixed after the European Central Bank stuck to its timetable for its stimulus programme and President Mario Draghi said an extension had not been discussed, media reports said. The FTSE 100 gained 0.2%, while the French CAC 40 and the German DAX fell 0.3% and 0.7%, respectively. Asian markets were mostly higher. The Shanghai Composite, Hang Seng and India's Sensex gained around 0.1%, 0.8% and 0.4%, respectively. The Nikkei fell 0.3%.

Ahead of the local open, SPI futures were 13 points lower at 5,352.