Another rubbish call this morning on the market!!!Not sure what I was thinking…more hat eating!!

The market took its cue from the Nikkei again this morning and the overseas selling that blasted through our market last week, seemed to be back. However, some bottom pickers started to hunt for the yield stocks, banks and Telstra (A$4.90, +0.6%), all rallying well off their bottoms. Having been down over 50 it was somewhat heartening to see us rally back to around 23 down. Australia and New Zealand Banking Group (A$27.85, +0.6%) were the standout whilst Westpac Banking (A$29.22, -0.3%) and National Australia Bank (A$31.24, -0.2%) the worse. Telstra (A$4.90, +0.6%) which was trading down at 474 managed a solid rally to be up on the day. Some of the yields in these things is starting to look attractive. NAB still cum dividend too.

Both the big miners were down although BHP tried valiantly to stay positive for a while, RIO Tinto (A$53.11, -2.6%) succumbed from the outset. In other resources Newcrest Mining (A$14.78, -2.2%) as always down, as were Fortescue Metals Group Ltd (A$3.43, -3.1%) and Iluka Resources (A$10.58, -4.7%). Golds continued to suffer, Kingsgate Consolidated (A$1.50, -3.2%), Evolution Mining (A$0.765, -3.2%),Silver Lake Resources (A$0.745, -2.6%) and Regis Resources (A$3.67, -4.4%) were amongst the losers.

Consumer stocks were hit as David Jones (A$2.56, -0.8%) announced third quarter sales, Myer (A$2.46, -1.2%), JB Hi-Fi (A$15.40, -0.1%) and Premier Investments (A$7.20, -1.5%) all slightly weaker. Healthcare stocks also fell out of favour with CSL (A$59.18, -0.9%), Ramsay Health Care (A$33.76, -2.5%), Primary Health Care (A$4.92, -0.2%), Cochlear (A$63.66, -2.4%) and ResMed Inc. (A$5.06, -0.8%). Ansell (A$16.77, +1.9%) did bounce well and Sigma Pharmaceuticals (A$0.815, +1.9%) also better. Energy stocks were a little weaker with Woodside Petroleum (A$36.83, -0.5%), Oil Search (A$8.12, -0.5%), Karoon Gas Australia (A$5.50, -4.5%), AWE (A$1.21, -2.0%) and Buru Energy (A$1.525, -4.4%) whilst Origin Energy (A$13.22, +1.4%) bucked the trend.

REITS were slightly better with Westfield Retail Trust (A$3.17, unch), GPT Group (A$3.965, +1.7%), Stockland (A$3.72, +0.5%) and Westfield Group (A$12.10, +1.2%) while the supermarkets Woolworths (A$33.11, -1.0%) and Wesfarmers (A$40.88, -0.3%) were in the red.

Big winners today included Energy Resources of Australia (A$1.135, +9.1%), M2 Telecommunications Group (A$5.54, +5.3%), Paladin Energy Ltd (A$0.93, +2.8%) and amazingly a mining services company that is actually doing well, Als (A$9.00, +3.0%). In the naughty corner were Western Areas Nl (A$2.71, -7.2%), Oz Minerals (A$4.00, -5.4%), Independence Group NL (A$3.10, -5.5%) and former high flyer G8 Education (A$2.24, -4.3%).

Few all-time lows today Evolution Mining (A$0.765, -3.2%), UGL (A$7.04, -0.6%) Atlas Iron (A$0.755, -2.6%) and Alacer Gold Corp. (A$2.11, -4.1%). Volume was pretty anaemic given the holidays in the US and UK tonight.

Stocks in the News

David Jones (A$2.56, -0.8%) announced their numbers, not really sure these dinosaurs of retailing tell us that much about consumer confidence. David Jones has reported $391.1 million in sales for the three months to April 27, a 2.2 per cent fall from the previous corresponding period, as it continues to cut costs amid difficulties in its home categories.

Looks like the most hated man on TV ,no not Everywhere Eddie McGuire, Mr Tom Waterhouse  has managed to score an own goal and the Government and The Industry have moved to ban live sports betting on TV. Happy now, Tom!

In house stocks Buru Energy (A$1.525, -4.4%) continued their slide as did Karoon Gas Australia (A$5.50, -4.5%) and AWE (A$1.21, -2.0%) despite announcing a successful test of their Lengo 2 Appraisal well. Couple of mining services we follow had a good day WDS (A$0.375, +7.1%) and Resource Equipment Ltd(A$0.175, +9.4%).

Chinese firms made profits of 436.7 billion Yuan ($71.22 billion) in April, up 9.3 % from the same month last year, quickening from a year-on-year growth of 5.3 % in March, the National Bureau of Statistics said on Monday.

Bank of Japan Governor Haruhiko Kuroda backed “bullish” views on asset markets and said the nation could cope with rising interest rates, failing to ease volatility in stocks as the Topix Index tumbled.

Tomorrows News Today

Germany’s economy barely grew in the first quarter of 2013 as exports and investment shrank, figures show .But higher domestic consumption – thanks to rising wages – helped offset the declines in foreign trade and capital investment, raising hopes it will help drive a sustained recovery.

“We’re expecting too much of the Federal Reserve, and Bank of Japan, and I’m growing increasingly concerned that we’re not going to find an easy and smooth exit out of QE in the U.S. or for that matter in Japan,” according to Charles Dallara who was on the side of the bond holders during the Greek debt negotiations.

While the lower Aussie Dollar is great for some things, it’s not going to help consumers as they get whacked at the pump. Petrol prices will be a drag on the economy and inflationary if the rout in the currency continues. $1.469 a litre now!!