Morning (AM) Market Report

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Published on Friday, 26 August 2016 00:00

U.S. stocks ended slightly lower overnight as investors awaited Federal Reserve Chair Janet Yellen's speech on Friday at Jackson Hole, which they will use to gauge the likelihood of a rate hike.

Friday, 26th August, 2016

According to media reports, the market was weighed down by a drop in healthcare and consumer names, while financials advanced slightly after two more Fed officials pushed the case for a rate hike.

At the close the Dow, S&P 500 and Nasdaq were down 0.18%, 0.14% and 0.11%, respectively.

HP (HPQ) reported third-quarter results that were in line with market expectations. The firm benefited from a moderate PC market recovery, but declines in the printer segment showed no signs of abating. Workday's (WDAY) second-quarter results were largely in line with expectationss, as evidence continues to be shown that the company is strengthening its hold on its customers. Guess' (GES) second quarter showed improved trends in both revenue and profitability, but the company is only in the very early stages of its strategic turnaround.

For Australian ADRs listed on the NYSE, BHP Billiton added 36 cents (1.13%) to $32.35, ResMed gained 44 cents (0.65%) to $68.44, Telstra Corporation lost 15 cents (-0.75%) to $19.97 and Westpac declined 19 cents (-0.81%) to $23.13. At 8:00 am (AEST), the 10-year Treasury note yield was 1.57% and the 5-year yield was 1.16%.

European markets ended lower, dragged down by miners and drug makers as investors cut exposure to riskier assets ahead of Yellen's speech. Germany's DAX, the French CAC 40 and the FTSE 100 were 0.9%, 0.7% and 0.3% lower, respectively. Asian markets were mostly lower. The Nikkei 225, Shanghai Composite Index and India's Sensex ended 0.3%, 0.6% and 0.8% lower, respectively. The Hang Seng Index was little changed.

Ahead of the local open, SPI futures were 5 points higher at 5,518.