The market is down 30. ASX 200 Futures were down 48 this morning. The Dow Jones finished down 217 on mixed economic data.

The Federal Reserve Beige Book described the pace of the US economies activity as “modest to moderate” but noted that hiring of workers increased at a “measured pace” but “residential real estate and construction activity grew at a moderate to strong pace”.

The Dow was down 232 at worst ahead of Friday’s jobs data in the US. The US ADP national employment index showed that 135,000 jobs were created in May which was better than the previous reading but below the forecast of 170,000.

The ISM services gauge was up from 53.1 to 53.7 in May beating the forecast of 53.5. US Factory orders were +1.0% in April missing the forecast of +1.4%. US 10 year bond yield was down 6bpts to 2.089%.

The A$ is at 95.42c making a new September 2010 lows.

ANNOUNCEMENTS & STORIES

  • Qantas (QAN) — Macau transport and property company Shun Tak Holdings has purchased 1/3 of Jetstar Hong Kong, which is a joint venture between QAN and China Eastern Airlines. The purchase was for US$66 million. Qantas and China Eastern expect flights to begin in mid-2013. Jetstar Hong Kong would be Hong Kong’s first low-cost carrier. QAN is up 0.51% to 148.25c.
  • Fairfax Media (FXJ) — Investor day briefing — Have announced restructure plans, which will save $251 million in savings, which is $60 million more than originally planned. The restructure involves all of the company’s publishing activities being simplified into one division. No mention of further job cuts. Earnings in the second half are expected to be between $129 million to $135 million, down from $205 million in the first half. JP Morgan raised its target price by 19% to 56c and have a Neutral. BBY upgraded to Strong Buy. FXJ is down 4.17% to 57.5c.
  • Cash Converters (CCV) — Legislation changes to consumer lending has made consumer’s short-term cash requirements now a more complicated and time consuming process. CCV is down 13.24% to 88.5c.
  • Virgin Australia Holdings (VAH) — Air New Zealand has upped its holding in VAH to 23% by buying 3% yesterday under the creep rules. Citi have a Neutral recommendation on the stock with a 45c target price. They think the current share price already factors in a strong earnings recovery. VAH is unchanged on 46c.
  • CSR Limited (CSR) — Ex-dividend 2.1c today.
  • Fortescue Metals (FMG) is now bigger than Newcrest (NCM), which fell 5% yesterday on a broker downgrade. FMG is down 2.82% to 345c & NCM is down 5.09% to 1362c.
  • Banks and Telstra (TLS) — Goldman Sachs is bullish on the Banks and Telstra today on the back of an expectation that rates will be cut again post the GDP number yesterday. It is now expecting a rate cut in July and possibly November. It forecasts year-on-year GDP growth to slow to 2.25% in June. TLS is down 0.21% to 467c.