Morning (AM) Market Report

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Published on Thursday, 22 September 2016 00:00

U.S. stocks finished higher overnight after the Federal Reserve's decision to keep interest rates unchanged as Yellen advised she is 'pleased with' the health of the economy. Future interest rate hikes will need to be supported by evidence that the economy is strengthening.

Thursday, 22nd September, 2016

Oil prices ended higher with renewed optimism that major oil producers could be nearing agreement on a deal to cap output. Oil prices were also lifted after the American Petroleum Institute said late Tuesday that its own data for the week showed a 7.5-million-barrel decrease in crude supplies.

At the closing bell, the Dow Jones was up 0.9%, the S&P 500 was 1.1% higher, while the Nasdaq finished up 1%.

Microsoft (MSFT) announced a pair of initiatives to increase capital returns to shareholders. First, the board has approved a $40 billion share repurchase program, essentially replacing the previous $40 billion buyback plan initiated in 2013 that was targeted for completion by the end of calendar 2016. Second, the company is increasing its quarterly dividend 8% to 39 cents per share. Adobe Systems' (ADBE) third-quarter results and fourth-quarter guidance were both well ahead of expectations as the company's execution of its business model transition continues to shine through. The company managed to outperform subscription revenue growth projections while simultaneously outpacing profitability forecasst.

For Australian ADRs listed on the NYSE, BHP Billiton gained 111 cents (3.57%) to $32.18, ResMed rose 35 cents (0.55%) to $63.80, Telstra Corporation lifted 38 cents (2.01%) to $19.30 and Westpac rose 47 cents (2.10%) to $22.86. At 7:45 am (AEDT), the 10-year Treasury note yield was 1.65% and the 5-year yield was 1.19%.

European markets closed higher on Wednesday. The FTSE 100 was up 0.1%, the French CAC 40 rose 0.5% while Germany's DAX lifted 0.4%. Asian markets finished mostly higher. The Hang Seng was up 0.6%, the Nikkei 225 rose 1.9%, while the Shanghai Composite lifted 0.1%. India's Sensex fell 0.1%.

Ahead of the local open SPI futures were 32 points higher at 5,355.