Wall Street rallies: Aus shares to slightly fall

Market Reports

by Jessica Amir

The Australian share market futures are tipping a slight fall at the open, despite Wall Street closing higher.

The Dow Jones etched a record close after Target shares gained 4.8 per cent. It comes as the retailer expects second-quarter earnings to be above the high end of its forecasts. Shares in Wal-Mart, Goldman Sachs and Apple also added to the rally.

The S&P also closed in the black, with Target one of the best performers, while the tech heavy Nasdaq gained 0.2 per cent with Snap shares rising 2.9 per cent.

US economic news

The body which independently analyses the budget, the Nonpartisan Congressional Budget Office (CBO), has dissected President Trump’s budget, which plans to reduce the deficit over a decade. Congressional Budget Office says The Trump budget will not balance the budget over 10 years as plan. It comes as the Trump administration is tipping higher economic growth than CBO.

CBO says the US will see a deficit of $720 billion in 2027 and not a surplus as Trump’s admin projects. CBO also projects Trump’s Budget will see the US deficit fall by $3.3 trillion from 2018 to 2027.

In other US economic news, US producer prices unexpectedly increased in June as gains in the cost of services, offset falling energy prices. The Labor Department reported US producer prices rose 0.1% in June after remaining unchanged in May. Over the 12 months though to June, the PPI gained 2 per cent, falling from May’s 2.4 per cent gain.

Local economic news

The ABS will unveil the overseas arrivals and departures figures on both tourism and migration flows for May.

Markets

Wall Street closed higher on Thursday: The Dow Jones Industrial Average gained 0.1 per cent to close at 21,553 the S&P 500 added 0.2 per cent to close at 2,448 and the NASDAQ advanced 0.2 per cent to close at 6,274.

European markets closed mixed: London’s FTSE lost 0.1 per cent, Paris added 0.3 per cent and Frankfurt gained 0.1 per cent.

Asian markets closed mostly higher: Tokyo’s Nikkei added 0.01 per cent, Hong Kong’s Hang Seng gained 1.2 per cent, and China’s Shanghai Composite added 0.6 per cent.

And back home, the Australian share market closed stronger on Thursday: At the closing bell, The S&P/ASX 200 Index closed 63 points higher or 1.1 per cent higher to finish at 5,737.

On the futures market the SPI is 9 points down.

Company news

Software performance monitoring and diagnostics company, Integrated Research (ASX:IRI) is expecting its profit after tax to be between $18 to 19 million, for the financial year ending 30 June 2017. That is 13 per cent to 19 per cent higher than company’s prior corresponding period’s $16 million profit. Integrated Research’s total revenue is tipped to be between $90 to $92 million, also for 30 June 2017 financial year. The company says although the figures were made for market guidance, its expecting to release its finalised accounts on 17 August 2017. Shares in Integrated Research (ASX:IRI) last traded 0.3 per cent lower yesterday to $3.35.

Currencies

The Australian Dollar at 7:20AM was buying 75.30 US cents, 59.75 Pence Sterling, 87.60 Yen and 67.84 Euro cents.

Commodities

Gold has lost $2.40 to $US1,217 an ounce.
Silver has lost 23 cents to $US15.66 an ounce.
And Oil has gained 61 cents to $US46.27 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.