Miss me?…been at a conference..always fun..

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ASX 200 rises 46 points to 6739 in another melt up day. US futures weaker by 23 points on Amazon results. A big jump out of the blocks this morning, RMD rose 11% to a record after a very positive 1Q. CWY fared slightly worse with a loss of 13.1% on an AGM downgrade. Banks were back in demand as results season looms. CBA up 0.5% and NAB up 0.6%. MQG rose 0.8% as results on November 1st kick off the season. Consumer stocks too rose led by WES up 1.2% and WOW up 1%. Miners struggled slightly although FMG put on 0.8% and NCM up 1.3% after its quarterly and bullion rise. In corporate news, WTC fell 0.8% once again at the mercy of the shorters following a bizarre interview on the ABC with the CEO and a voice in the background. In other corporate news, AGMs were the focus with IAG slipping 0.25% on its tea and biscuit session. QAN saw small losses of 0.5% on its AGM and QMS has entered a trading halt as bid rumours swirl. Asian markets saw tiny gains with Japan up % and China up %. 10-year bond yields fell to 1.05%, down 3bps. AUD under some pressure just above 68c.

Todays Highlights

  • ASX 200 up 46 to 6739.
  • High 6741 Low 6698. Modest volume. Up 1.2% for the week.
  • Banks turn positive. Miners struggle.
  • Healthcare stars with REITs and Consumer stocks.
  • WTC under pressure still. Off lows though.
  • AUD lower at 68.17c
  • GBP/AUD still 1.88c
  • 10-year yields up to 1.10
  • Aussie gold rises to $2204
  • Bitcoin falls to US$7446
  • US futures down 23.
  • Asian markets better with Japan up 0.3% and China down 0.6%

STOCKS

  • RMD +11.02% 1Q results cheer sector.
  • WGX +8.37% production report and broker upgrade.
  • PAR +5.62% regulatory filing update
  • CIM +5.16% broker upgrades on recent company AGM
  • CAR +5.07% AGM update sees car market improving slowly.
  • CWY -13.15% AGM downgrade.
  • PET -7.34% rush is over after presentation.
  • WEB +2.72% ship is turning.
  • AVH -4.93% AGM notice.
  • KAR -1.49% insto placement for $175m.
  • ASB +1.47% wins new contract for a 115m cat. That’s a big one.
  • AHY -5.64% change in substantial holding.
  • HM1 – adds a new manager.
  • GWA -3.86% AGM presentation. Second half story. Not a positive.
  • STX -10.34% outstanding test results. Not.
  • SKO +44.93% returns to trade after placement well supported.
  • Speculative stock of the day: Novita Health (NHL) +70.39% Annual report to shareholdrs out last night. Plus a code reimbursement for TALi Detect which allows screening of kids for attention deficits. Sorry where was I?
  • Biggest Risers: RMD, RSG, WGX, CUV, PAR, GOR and CIM.
  • Biggest Falls: CWY, PET, AHY, API, AVH, GWA and SFR

TODAY

  • ResMed (RMD) +11.02% report Q1 revenue up 16% to $681m, ahead of the $659.0m expected, with revenue in the US, Canada and Latin American up 13% thanks to strong sales across its mask and device product portfolio. EPS of 93c was also ahead of the 86c expected. Gross margin expanded 120ps to 59.5%. Operating profit rose 19%. A dividend of US$0.039 has been declared.
  • Myer (MYR) -1.75% The Federal court has found that the company engaged in conduct that was misleading or deceptive and contravened its continuous disclosure obligations from 21/11/2014 until 19/3/2015. The breach came about when MYER became aware that FY15 NPAT would be materially lower than that in FY14 but failed to make a corrective announcement.
  • Resolute Mining (RSG) +9.62% expect the sulphide roaster at the Syama Gold Mine in Mali to be repaired and fully operational in around six weeks’ time with a repair cost of $5m. The repairs will impact unit costs for the Syama sulphide circuit. The company maintains FY19 gold production guidance for the 12 months to 31-Dec-19 of 400,000oz of gold.
  • Adairs (ADH) –1.39% reports a 3.3% rise across the first 16 weeks of FY20 in like-for-like sales and reaffirms FY20 guidance at AGM.
  • Cleanaway Waste Management (CWY) –13.15% trading update at AGM. Expect 1H20 earnings to be in-line with 1H19 due to “a combination of lower economic activity, softness in commodity prices versus H1 of FY19 and a reduction in local Queensland volumes following the introduction of the landfill levy”. The company believes 2H20 earnings will be stronger than 1H20 and the corresponding 2H19 based on “confidence in the underlying performance of all operating segments, pricing initiatives in action and cost reductions already implemented”.
  • Insurance Australia Group (IAG) –0.25% FY20 guidance repeated at AGM. Expect low single digit GWP growth and reported insurance margin of 16-18%.
  • Regis Resources (RRL) +1.49% reports Q1 production of 87,633oz, down 3.7% from a quarter ago. AISC is up 3.8% from last quarte at $1,234/oz, while pre-royalty cash cost is down 3.7% to $914/oz. FY production guidance is unchanged at 340,000-370,000 oz at an AISC $1,125-1,195/oz.

ECONOMIC NEWS

  • Nothing significant today

BOND MARKET

  • 2 – year bond yields down 2bps  to 0.72%
  • 3 – year bond yields down 2bps to 0.75%
  • 10 – year bond yields down 3bps to 1.05%

ASIAN NEWS

  • Diwali kicks off in India Bit like Black Friday or Singles Day in China. Gold could get a boost.
  • In Singapore, Private residential prices increased 1.3% in the three months ended Sept. 30, data from the Urban Redevelopment Authority. Pipeline of more than 50,000 apartments overhangs market.

  • Cancel that Thai holiday as Baht hits 6-year high.
  • Indonesia finds 89 significant findings in its inquiry into the  737 Max Lion Air crash.
  • Indian telco fell after the courts ruked they were liable for expensive spectrum and licence fees.

EUROPEAN AND US NEWS

  • Pence doesn’t put his foot in it with his speech although criticises China over HK and human rights.
  • Softbank planning a huge US$5bn write down on WeWork and Uber valuations.
  • Boris tries to roll the election dice as EU ponders another extension. 12th December looks likely to see Brits go to the poills.
  • Amazon misses targets and warns of slowdown for crucial holiday season.
  • Chips run. Intel moves higher after good results announcement. Tesla silneces the critics and the shorts.
  • Christine Lagarde is in ‘da house’. Takes over on 1st November.
  • US Senate starting to get nervous about new Social Media sensation TikTok. Backed by Chinese government.
  • What do you call a Englishman at the RWC Final? The referee.I may be English but also a realist.

And finally………………

Just Go England!!!!No joke, we gonna win!!

Clarence

XXXX

mt_tryforfree

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