Dow touches 23,000 for 1st time: Hesitant start for Aus shares

Market Reports

by Jessica Amir

Wall Street has made history yet again, with the Dow Jones touching the 23,000 milestone for the first time, after climbing above 22,000 just in the beginning on August. The index didn’t maintain that high though, but was buoyed by UnitedHealth’s stronger than expected profit results. Other shares that led the charge included Boeing and Caterpillar.

That being said, while the Dow and the S&P 500 closed in the black, the tech heavy Nasdaq closed slightly below the line.

On the commodities front, the iron ore price gained over 1 per cent, while the US crude oil price has remained stable around US$52 mark.

Taking the mixed US leads into account, our local bourse is set for a hesitant start at the open.

US economic news

US industrial output pushed ahead in September, after falling in August, according to the Federal Reserve. Industrial production rose 0.3 per cent, last month, as economist expected.

Meantime, homebuilder confidence jumped to a 6-month high in October, according ot the new numbers from the National Association of Home Builders.

Markets

Wall Street closed mixed yesterday: The Dow Jones Industrial Average gained 0.18 per cent to close at 22,997 the S&P 500 gained 0.07 per cent to close at 2,559 and the NASDAQ lost 0.01 per cent to close at 6,624.

European markets closed lower: London’s FTSE lost 0.1 per cent, Paris was 0.03 per cent lower and Frankfurt fell 0.1 per cent.

Asian markets closed mixed: Tokyo’s Nikkei added 0.4 per cent, Hong Kong’s Hang Seng closed flat and China’s Shanghai Composite lost 0.2 per cent.

And back home, the Australian share market closed higher yesterday: The S&P/ASX 200 Index closed 43 points up or 0.73 per cent to finish at 5,890

On the futures market the SPI is 6 points down.

Company news

Property management and construction giant, Lendlease (ASX:LLC) has sold 25 per cent of its Retirement Living business to APG Asset Management, which will result in a transactional net loss after tax of about $35 million. Lendlease retains a 75 per cent stake, but added the new investment partner to support future growth and development. Lendlease also told the market its FY18 results will be impacted by underperformance of its Australian construction business. It will see lower half year FY18 EBITDA than the prior corresponding period. Meantime its new JV in the US to develop infrastructure assets saw the company commit US$200 million. Shares in Lendlease (ASX:LLC) are closed about 0.4 per cent higher at $18.60

And a Lithium exploration company, focused on Argentina, Argosy Minerals (ASX:AGY) has released a share purchase plan prospectus, planning to raise $2 million. The company is offering the shares at an issue price of 18 cents per share. The opening date is booked for the 20 October 2017, with the new shares to be issued on 8 November 2017. Shares in Argosy Minerals (ASX:AGY) closed about 3.8 per cent lower at 26 cents.

Ex-dividends

One companies is going ex-dividend today, K & S Corporation (ASX:KSC) is paying 2 cent fully franked.

Currencies

One Australian Dollar at 7:40AM was buying 78.46 US cents, 59.49 Pence Sterling, 88.03 Yen and 66.69 Euro cents.

Commodities

Gold has lost $15.00 to $US1,288 an ounce.
Silver has lost $0.31 to $US17.06 an ounce.
Oil has gained $0.11 to $US52.25 a barrel.
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 with a passion for equities and funds management. As Head of News, she has been a broadcast journalist for over seven years, specialising in finance. She has been a journalist with Sky News Business, ABC 1, ABC's The Business and ABC24. She’s also worked as a TV reporter for regional Channel 7 and 9. She also previously worked as a financial planner and real estate agent.