ASX falls 19 points to 6753. Closing rally helping. US futures down 35 points. WBC ex dividend today (9 index points) and bank weakness despite CBA positive results. CBA rose 1% though ANZ dropped 0.9%. In healthcare, CSL came under some poressure as profit takers moved in dropping 1.5% after its stellar run. The rest of the sector flat lined but bond proxies and REITS weakened slightly GMG down 1.3% and AIA dropping 1.7%. Miners saw renewed selling pressure as iron ore look sto be heading to $75. BHP fell 0.2% and FMG dropped 2.1%. Energy stocks held the line with WPL unchanged. Tech stocks were mixed, REA fell 0.6% again as brokers assessed the outlook but APT and WTC both rallied by 3.5% and 3.2% respectively. XRO rose another 1.2% even as a founder dropped around $225m worth of stock into the market. In corporate news, CBA delivered and showed why they are at a premium. JIN bought a UK lottery business and rose 3.4% well off its high though. NEC fell 5.7% on a pessimistic advertising outlook dragging SWM down 8.3%. 10-year bond yields look to have topped out for the time being at 1.28%. AUD pretty steady at 68.45c. Asian markets mixed again with Japan up 0.2% and China down 0.48%.

Todays Highlights

• ASX 200 down 19 to 6753.
• High 6779 Low 6731. Banks mixed
• WBC knocks 12 offthe index. SPP kicks off.
• Miners under pressure on iron ore falls.
• CSL stutters. Consumer stocks follow.
• Tech still in rally mode.
• 10-year bond steady at 1.28%
• AUD lower at 68.45c
• Aussie gold lower at $2127
• Bitcoin falls to US$8996
• US futures down 35 points.
• Asian markets mixed on HK unrest with China down % and Japan up%.

STOCKS

• SGM +3.76% bounce continues.
• PET +5.88% buyers back in.
• DHG +3.66% broker upgrades.
• WTC +3.18% AGM ahead.
• ELD +3.15% broker upgrades.
• JIN +3.40% UK lottery buy.
• EHL +3.05% rally back on.
• SWM -8.33% NEC downgrade hurts all stations.
• APE -5.24% groping for support.
• NAB +0.73% admits 255 breaches of credit law.
• Z1P -4.17% profit taking.
• FMG -2.10% Shaw cuts to hold.
• TNY +3.17% upcoming briefing.
• CAT +3.61% Rugby Australia back on board.
• PAN – trading halt –  Morgans says IGO bid has limited scope.
• NTU +3.77% good drill results.
• QBE -1.01% cut to neutral on crop insurance.
• SPL +3.95% substantial shareholder change.
• XRO +1.23% director sells down.
• Speculative stock of the day: Nothing with any volume.
• Biggest Risers: PET, ECX, MP1, FNP, SGM and PGH.
• Biggest Falls: VGI. SWM, PPK, NEC, APE and WHC.

TODAY

• Goodman Group (GMG) -1.32% Q1 Operational Update -‘The Group has had a strong start to FY20’ – Reaffirms forecast FY20 for operating earnings per security of 56.3 cents, up 9% on FY19.
• Nine Entertainment (NEC) -5.69% Has announced 1H20 results are expected to be around 10% lower than the year before, reflecting a soft ad market for Free to air (FTA) & Radio. Full-year FTA costs are now expected to be 2.5% higher vs 4% previously guided.
• CBA’ +0.97% Q1 cash profit from continued ops of $2.26bn ex-items, up 5% Statutory NPAT of $3.8bn, including a $1.5bn gain on sale of Colonial First State Global Asset Management CET1 ratio 10.6%, +35bps vs Q4. Improved arrears across consumer portfolios. Troublesome and Impaired Assets slightly higher, with pockets of stress similar to those highlighted at the FY19 results – Nothing to worry about. The tidy up of CBA appears to be working, in what could be considered challenging market conditions. Volume growth in core markets, good credit quality and a strong balance sheet are the highlights.
• Incitec Pivot (IPL) -1.67% has announced full-year results, profit is down 27% with the chemicals and explosives supplier hit by rail problems and manufacturing outages. The dividend has also been slashed to 4.7c, down from 10.7c in 2018.
• Jumbo Interactive (JIN)+3.40% To acquire UK-based external lottery manager, Gatherwell in the UK for £5.0m. The transaction will accelerate Jumbo’s expansion of the software as a service business in the UK. The consideration is £3.0m in cash upfront, with further payments of up to £2.0m if certain revenue and profit targets are met.

ECONOMIC NEWS

ANZ Roy Morgan Weekly Consumer Sentiment Index (November 10): -2.1% to 111.1pts.

• NAB Business conditions rose 1pt in October to +3 index points – around half the long-run average of 6 index points. The tick up was driven by an increase in trading (now +7 index points) and profitability (now 0 index points) in the month.

• The NAB Wellness survey has found Wellbeing in Australia rose to a near record high in Q3, but 1 in 3 people remain “highly anxious”. NAB’s Australian Wellbeing Index rose for the third straight quarter in Q3 2019 to 65.7 points – the second highest reading since the survey began in 2013.
• Around 1 in 3 people said they had experienced some form of financial stress or hardship over the past 3 months.
• Over 5 in 10 people who experienced financial hardship tried to manage by following a stricter budget and cutting out unnecessary expenses.
• Around 2 in 10 went into more debt – and over half of these people borrowed from family and friends and 1 in 4 from payday lender.

BOND MARKET

• 2 – year bond yields down 3bps to 0.85%
• 3 – year bond yields down 3bps to 0.90%
• 10 – year bond yields down 1bps to 1.28%

ASIAN NEWS

• Singles Day hits a new record in China. US$38bn in sales for Alibaba. US Brands in the top selling items. Nike and Addidas. 200,000 brands had been expected to participate in 2019‘s edition of the festival.
• More trouble in little China. Hong Kong kicking off again.

EUROPEAN AND US NEWS

• The founder of Uber sold more than US$500m worth of stock after restrictions were lifted upon his departure.
• Bolivian former President has flown to Mexico after his resignation.
• Boris gets a poll boost as Farage says he won’t contest against Tories.
• New Oil Benchmark launched in the Middle East.
• Xi tells Greece you’re the one that I want. It’s the word.

And finally……….

The person who invented autocorrect…

Should burn in hello.

 

My friend is so engrossed with technology he got a mobile phone implanted into his throat.

When his wife finds out she’s going to ring his neck.

 

I said to my doctor, “I think I might have ADHD, because I can’t remember where I parked my Ford!”

She said, “That’s not how ADHD works.”

I said, “But I keep losing my Focus!”

Clarence 

XXXX