ASX 200 puts on the Ritz heading to 7300 up 42 to 7260. New records again. Dow futures up 20 points. Banks were the superstars again as the Big Bank Basket rose to $183.60 with CBA clearing $100 easily, up 0.9%. Other financials didn’t see the same squeeze, with MQG up 0.3% and insurers joining in the fun, IAG up 1.2% and SUN up 0.4%. Healthcare mixed with CSL slipping into the close up a mere 5c. Industrials too rise, TLS up 0.9%, GMG up 0.8% and WOW better by 1.5%. Tech stocks got the bull rush, APT up 3.3% XRO up 2.2% and the All –Tech Index up 1%. Miners struggled a little, BHP rose 0.4% with FMG up 0.7% but RIO flat and OZL down 0.1%. Energy stocks improved with AGL rising 3.7%, has the stock found its bottom? STO up 3.8% and WPL up 3.1%. In corporate news, WES down 2.1% following comments at its investor day, expects one-off costs for Kmart of ~$65m, says its chemicals business is likely to be hit by rising ammonia prices. SZL is the standout performer adding 22.7% on a three-year deal with Target. GXY firmed 1.0% as it lifts full-year production guidance. On the economic front, the balance on goods and services surplus increased to $8.03bn in April, the reading came in slightly below consensus of $8.2bn, NAB had an estimate of $9.9bn. Retail sales rose by 1.1% in April to be up 25% on the year, in line with consensus and the preliminary reading. 10-year yield slid to 1.66%. Asian markets firm with Japan up 0.5% and China up 0.3%.

Today’s Highlights

• ASX 200 rises 42 to 7260.
• High 7282 Low 7221.
• Big Bank Basket rises again to $183.60
• All Tech Index up 1%
• Australian Gold steady at $2459
• 10-year yield easier at 1.66%
• AUD rises to 77.35c.
• Bitcoin rises to US$38149.
• Asian markets firm with Japan up 0.5% and China up 0.3%.

STOCKS

• WES -2.08% Investor day – Bunnings to open Trade Tool stores.
• TYR -0.82% another class action potentially looming.
• PWR -1.33% broker upgrades.
• PDN -4.20% lists on US exchange.
• SZL +22.67% three-year deal with Target Corp.
• KAR +7.45% FID and presentation.
• AGL +3.71% stirring?
• KED -1.41% second day blues.
• FPH -1.24% sellers still.
• WOR +7.69% going green has fans.
• TPW +7.54% lock down special.
• BPT +5.79% oil price helping.
• BET -4.85% under pressure again.
• AEF -4.92% sell off continues.
• SBM -0.53% Simberi update with guidance withdrawn.
• NTO -3.83% thin sell off.
• AGY +5.32% signs of life.
• CTT -7.48% gloss wearing off perhaps.
• CPH +28.57% Californian Senate Bill.
• ORR +16.46% Nyanzaga SML receives cabinet approval.
• Speculative Stock of the Day: Nothing today. Need to offer popcorn.
• Biggest Winners: SZL, IFL, WOR, TPW, KAR, ORG and BPT.
• Biggest Losers: CTT, ADO, AEF, BET, JRV, SPL and LTR .

TODAY

• Wesfarmers (WES) –2.08% Strategy day commentary: On a two-year basis, all of the retail businesses have continued to record strong sales growth, reflecting their ability to provide safe and trusted environments while delivering greater value, quality and convenience for customers. Customer demand has remained resilient, but year-on-year growth has generally moderated and been negative in some months for some businesses, due to elevated activity in the prior year. Online growth has moderated as customer traffic to stores has increased, and online penetration has reduced but remains above pre-COVID levels. Outlook: Kmart Group now expects to incur pre-tax, one-off non-operating costs of approximately $60 to $70m in the 2021 financial year relating to Target store closures and conversions, a reduction from the previous estimate of $90 to $110m. Chemicals business is likely to be adversely impacted in the short term by the rising ammonia index pricing on imports. Planned ammonia plant five-yearly shutdown in FY22 for approximately one month.
• Sezzle (SZL) +22.67% Enter into three-year agreement with Target. Under the agreement, Sezzle’s product will be used in-store and across Target’s digital platforms, providing guests access to interest-free payment plans for purchases made at Target.
• Galaxy Resources (GXY) +1.01% Provides Mt Cattlin update; Production guidance for the financial year has been increased to 195,000-210,000 dmt vs prior 185,000-200,000 dmt.
• Mesoblast (MSB) –3.12% Has reported third-quarter EPS of – US$4.39, falling from – US$2.84 last year. Revenues have also taken a hit at US$1.9M vs year-ago US$12.2m. Cash and cash equivalents have been increased to US$158.3m vs 30-Jun US$129.3m.

ECONOMIC NEWS

• The balance on goods and services surplus increased by $2,234m to $8,028m in April, the reading came in slightly below consensus of $8.2bn, NAB had an estimate of $9.9bn.

• Retail sales rose by 1.1% in April to be up 25% on the year, in line with consensus and the preliminary reading.

• IHS Markit Services purchasing managers index: “The seasonally adjusted Business Activity Index eased to 58.0 in May from 58.8, signaling a continued increase in activity but at a marginally softer pace than April’s survey record. “

BOND MARKETS

CV19 NEWS

• Vaccine Tracker: 1.98bn doses in 176 countries at 35.6m a day.
• Australia will take 11 months to cover 75% of the population.

• Israel has found a possible link between Heart inflammation and the Pfizer shot.
• Vietnam’s health ministry said the country will have more than 120m doses of Covid-19 vaccines this year.
• India has ordered 300m doses from Biological-E. Phase 3 trials are currently on and the firm will prepare the order between August and December.
• Apple says employees will return to office in early September for three days at first.
• New Jersey will close all six of its vaccine mega-sites by July 23 as demand wanes.

ASIAN NEWS

• China’s manufacturing sector expanded at the fastest pace in five months in May a Caixin-sponsored survey showed. PMI rose to 52 from 51.9 previously. The services sector expansion slowed in May with the service PMI falling to 55.1.
• The Caixin China General Composite PMI came in at 53.8 in May, weaker than 54.7 the previous month.
• India is moving closer toward setting up spot contracts for gold. India is the second biggest user of gold.

US AND EUROPEAN HEADLINES

• AMC is now worth more than half of the companies in the S&P 500. Market value is $31.3 billion, higher than Delta Air Lines. Up 2850% this year. And free popcorn too.
• Almost half of the US states will be off Jobseeker life support by next month. Unemployment number revealed tomorrow in US.
• The SPAC is back. Palihapitiya is looking for US$800m to target biotech companies.
• The US has issued tariff threats to six countries over European plans to tax digital companies. How very dare they. 25% levy on perfumes, clothes, jewellery and video games. Levy set then suspended for 180 days as talks continue. G7 this weekend. Seems that Biden has learnt to weaponise trade from Trump.
• BoJo still upbeat on June 21 UK reopening.
• Biden has suspended Artic drilling rights sold by Trump.
• Looking to add to your car collection. This one is a beauty. A Martini-liveried 1996 Alfa Romeo 155 V6 Ti Touring car. How much? Over $1.2m.

And finally….

A lady goes to the doctor and complains that her husband is losing interest in sex. The doctor gives her a pill, but warns her that it’s still experimental. He tells her to slip it into his mashed potatoes at dinner, so that night, she does just that. About a week later, she’s back at the doctor, where she says, “Doc, the pill worked great! I put it in the potatoes like you said! It wasn’t five minutes later that he jumped up, raked all the food and dishes onto the floor, grabbed me, ripped all my clothes off, and ravaged me right there on the table!” The doctor says, “I’m sorry, we didn’t realize the pill was that strong! The foundation will be glad to pay for any damages.” “Nah,” she says, “that’s okay. We’re never going back to that restaurant anyway.”

A wife comes home late one night and quietly opens the door to her bedroom. From under the blanket, she sees four legs instead of just her husband’s two. She reaches for a baseball bat and starts hitting the blanket as hard as she can. Once she’s done, she goes to the kitchen to have a drink. As she enters, she sees her husband there, reading a magazine. He says, “Hi darling, your parents have come to visit us, so I let them stay in our bedroom. Did you say hello?”

Clarence

XXX