Jennifer Hawkins Myer Friday September 3rd==fashion week 30/8 -- Wednesday/Spring

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Date Posted: 16:00:58 09/01/10 Wed
Author: At 07:45 a.m. (AET) the US dollar was quoted
Subject: Jennifer Hawkins Myer Friday September 3rd==fashion week 30/8

MORNINGSTAR MORNING NOTES
Thursday 02 September 2010
Overseas Market Report
Australian Market Report
Company Updates

Overseas Market Report -US Stocks Jump Into September
US stocks rallied on Wednesday, with Bank of America, Caterpillar and JP Morgan Chase leading broad gains in a strong start to September after manufacturing data topped expectations.

The Dow Jones Industrial Average advanced 254.75 points (2.54%) to 10,269.47, marking its biggest one-day gain since July 7 and its fifth-largest one-day gain this year. All 30 of the measure's components rose, led by Bank of America, which jumped 76 cents (6.1%) to $13.21. Caterpillar was also strong, up $3 (4.6%) to $68.16, and JP Morgan added $1.38 (3.8%) to $37.74.

The Nasdaq Composite gained 62.81 (2.97%) to 2,176.84. The Standard & Poor's 500 index climbed 30.96 (2.95%) to 1,080.29, with all of its sectors ending the session higher. The industrial and financial sectors posted the biggest percentage increases.

The gains followed a report from the Institute for Supply Management showing the US manufacturing sector unexpectedly rebounded in August, with employment rising strongly. The data came on the back of encouraging manufacturing numbers from China. The reports stood in great contrast to more downbeat numbers on the economy recently, and helped feed investors' thirst for a ray of hope following the market's worst August since 2001.

There were some weak spots in Wednesday's data. The Commerce Department reported US construction spending declined in July to the lowest level in 10 years, and payroll giant Automatic Data Processing said private-sector jobs in the US fell by 10,000 during August. However, investors overlooked those reports as the manufacturing data seemingly put the market into euphoria.

Burger King soared $2.41 (15%) to $18.86. A newspaper reported that the fast-food company has been in talks with private-equity firms in recent weeks about a possible sale of the second-largest hamburger chain, according to people familiar with the matter.

Electronic Arts climbed 88 cents (5.8%) to $16.11. The videogame publisher estimated sales of its Madden NFL 11 increased 5% in August to become the top-selling videogame in North America. The company also said digital revenue for game has more than tripled from a year earlier.

Itron added $3.65 (6.8%) to $57.65, and Cisco Systems advanced 28 cents (1.4%) to $20.26. The companies announced a strategic alliance where the smart-meter company and the network communications giant will work on a new communications platform for smart-grid technology.

Joy Global advanced $3.61 (6.4%) to $60.16. The mining-equipment company's fiscal third-quarter profit fell 4.7%, but it raised its profit outlook for the year. In addition, Joy Global said the recent slowdown in demand for mined commodities from China and the US and the threat of higher taxes in some commodity-rich countries aren't diminishing customers' interest in adding new equipment. Shares of rival Bucyrus International increased $4.56 (7.9%) to $62.05.

For Australian ADRs listed on the NYSE, BHP Billiton added $3.64 (5.47%) to US$70.14, Rio Tinto Plc strengthened $3.68 (7.3%) to US$54.11, ResMed increased 69 cents (2.29%) to US$30.83, Telstra Corporation climbed 55 cents (4.48%) to US$12.82, Telecom Corporation of NZ increased 24 cents (3.41%) to US$7.28 and Westpac rose $5.74 (5.9%) to US$102.98.

In economic news, US construction spending in July dipped to the lowest level in 10 years, but the factory sector grew more than expected in August, a sign of hope for the struggling economic recovery. Private-sector jobs, however, unexpectedly fell slightly in August.

At 7:45 AM (AEST), the 10-year Treasury note yield was 2.57% and the five year yield was 1.40%.

European stocks rallied on Wednesday, as US data showed an unexpected rise in the ISM manufacturing index, rekindling hopes of a strong recovery in the global economy.

The Stoxx Europe 600 index advanced 2.7% to end at 258.19 points. The index extended gains after the Institute for Supply Management reported that its manufacturing index rose to 56.3% in August from 55.5% in July. The data was much better than expected, since economists projected a decline.

Among the major European benchmarks, the French CAC 40 index was the top gainer, surging 3.8% to 3,623.84 points. The UK's FTSE 100 index rose 2.7% to 5,366.41 points. In Germany, the DAX 30 index gained 2.7% to 6,083.90 points, with shares of retailer Metro AG up 5.4% on Xetra.

In Paris, shares of French media and communications giant Vivendi SA surged 5% after the group said its full-year earnings outlook has improved and its adjusted second-quarter earnings beat forecasts.

Cement producers in Europe got a boost after a broker upgraded the sector, lifting both Holcim and Lafarge to outperform from underperform. Shares of Holcim gained 3.2% in Zurich and those of Lafarge rallied 5.5% in Paris.

In the mining sector, shares of Rio Tinto rose 6.1% and those of Kazakhmys soared 6.9%.

Asian stock markets were mostly upbeat on Wednesday as solid economic data from Australia and China helped investors overcome worries over the health of the global economic recovery. Investors were heartened by China manufacturing data showing growth in the world's second largest economy is stabilising at a moderate but healthy pace, analysts said.

Japan's Nikkei Stock Average ended 1.2% higher, rebounding after touching a new 16-month low earlier. The Shanghai Composite ended 0.6% lower, while Hong Kong's Hang Seng Index added 0.4%.

New Zealand shares ended higher, mirroring regional gains brought about by positive economic data from China and Australia. The NZX-50 closed up 1.4%, or 41.00 points, at 3,077.10.

Base metals closed higher on the London Metal Exchange on the back of stronger equities and new figures indicating an unexpected rebound in the US manufacturing sector. Aluminium rose $55 (2.68%) to $2,105 while copper firmed $235 (3.18%) to $7,620 and nickel added $435 (2.10%) to $21,175. Zinc strengthened $80 (3.86%) to $2,155 and lead gained $70 (3.41%) to $2,125. Comex copper was last quoted at 347.00 US cents per pound.

Gold futures finished slightly lower as stronger-than-anticipated manufacturing data dulled some of the safe-haven shine that had earlier sent the metal to fresh two-month highs. Spot gold was last quoted at $1,243.90. Comex gold futures weakened $2.20 (0.18%) to $1,248.10. Spot silver was last quoted at $19.32.

Crude-oil settled higher on Wednesday, helped by improving data on US manufacturing and rising equities markets that trumped fears about increasing oil supplies. West Texas Intermediate was last quoted at US$73.91 per barrel.

At 07:45 a.m. (AET) the US dollar was quoted at 0.7810 euros, 84.42 yen, 1.098 AUD and 64.72 pence.

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