Welcome to Tuesday. Here are the five things I'm looking at today on the Australian sharemarket.
- The S&P/ ASX 200 (Index: ^AXJO) (ASX: XJO) has opened flat, as a rise in the big four banks offsets falls by the big miners.
On Wall Street overnight, the Dow Jones gained 0.2%, while the broader S&P 500 added 0.3% and the tech-heavy NASDAQ climbed 0.4%.
Key economic data out today includes the Australian Bureau of Statistics home price index and the NAB business survey.
- Incitec Pivot Limited (ASX: IPL) has reported a 33% drop in net profit to $247.1 million. The fertilizer and mining explosives company says it is facing challenging agricultural and resources markets in the year ahead, and is counting on cost cutting and 'operational efficiencies' to bolster its earnings.Shares in Incitec were up 4% at the open.
- Investment bank Citi Group has drastically cut its iron ore forecasts for the next two years from SU$80 per tonne to US$65 per tonne. The broker has also reduced Fortescue Metals Group Limited (ASX: FMG) to 'Neutral', and placed a 'Sell' on the Pilbara juniors, including Atlas Iron Limited (ASX: AGO) and Mount Gibson Iron Limited (ASX: MGX).
Still, Citi are just a bit late to the party…
Two years ago, Motley Fool analyst Scott Phillips warned about the iron ore miners in this article. Since then, Mount Gibson's shares have dropped 48% while Atlas shareholders have seen an 83% fall in the share price.
- Tweet of the Day
At the 11th Hour of the 11th Day of the 11th Month. We Will Remember Them https://t.co/3IZtSi9DS6 — The Motley Fool Aust (@TheMotleyFoolAu) November 10, 2014 - Stock of the Day – brought to you by Jarrod Fitch – Credit Corp Group Limited (ASX: CCP). The debt collector might be a buy at current prices, but you need to get the whole picture – read more here.
