Retail tanks Wall St closes lower: Aus shares to open lower

Market Reports

by Jessica Amir

The Australian share market looks set to open lower, after Wall Street closed in the red when retail stocks plunged.

Macy’s shares fell 17 per cent after the retailer reported weak quarterly results.

The S&P 500 retreated from its high with retailers dragging down the index while SPDR S&P Retail ETF dropped 2.7 per cent after Macy's shares tumbled.

On the Dow Jones, Home Depot added most drag while Caterpillar helped the index cut its losses.

Meantime, we’ve seen gains in Gold, Silver, and oil.

US economic news

US producer prices, which measure inflation before it reaches consumers, rose 0.5 per cent in April versus the 0.2 per cent rise expected. It’s the largest advance since a similar figure in January. The price jump comes as energy prices advanced 0.8 per cent and food costs firmed 0.9 per cent higher in April.

Local economic news

The ABS will report the Tourism arrivals for March with Chinese arrivals soaring.
The bureau will also release the credit and debit card data for March.

Markets

Wall Street closed lower on Thursday: The Dow Jones Industrial Average fell 0.1 per cent to close at 20,919, the S&P 500 lost 0.2 per cent to close at 2,394 and the NASDAQ fell 0.2 per cent to close at 6,116.

European markets closed mostly lower: London’s FTSE was flat, Paris lost 0.3 per cent and Frankfurt fell 0.4 per cent.

Asian markets closed higher: Tokyo’s Nikkei added 0.3 per cent, Hong Kong’s Hang Seng lifted 0.4 per cent, and China’s Shanghai Composite gained 0.3 per cent.

And back home, the Australian share market closed flat yesterday: The S&P/ASX 200 Index closed 3 points higher to finish at 5,878. On the futures market the SPI is 9 points lower.

Company news

Lithium Australia NL (ASX:LIT) has extended its takeover offer of lithium company, Lepidico Limited (ASX:LPD) to 19 May 2017. The lithium explorer and developer says 88 Lepidico shareholders accepted the takeover bid. Lithium Australia already holds 16.13 per centvoting power in Lepidico and is the company’s second largest shareholder. Shares in Lithium Australia NL (ASX:LIT) last traded 7.14 per cent higher to 10.5 cents.

Ex-dividends

Two companies are going ex-dividend today:

Managed Accounts (ASX:MGP) is paying 0.2 cents un franked and
Tamawood Limited (ASX:TWD) is paying 11 cents fully franked.

Currencies

The Australian Dollar at 7:30AM was buying 73.77 US cents, 57.25 Pence Sterling, 83.98 Yen and 67.93 Euro cents.

Commodities

Gold has gained $6.10 to $US1,225 an ounce.
Silver has added 12 cents to $US16.32 an ounce.
And Oil has firmed 41 cents higher to $US48.19 a barrel.
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.