There's only one word to sum up this morning's market mood – indecisive.
Mixed performances in US and European equities overnight are behind the expected flat opening for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO).
A seventh consecutive day of losses for iron ore is expected to drag Fortescue Metals Group Limited (ASX: FMG) lower after yesterday's 6.8% belting to $2.07, although Rio Tinto Limited (ASX: RIO) may be saved from the pain as its US-listed stock jumped 0.9% to break a six-day losing streak.
The Metal Bulletin iron ore price fell 2.4% to $US57.12 a tonne, but it's not all bad news for resources as the West Texas Intermediate (WTI) crude oil price bounced 1.7% to $US58.98 a barrel.
Woodside Petroleum Limited (ASX:WPL) will be in focus, but it's not only due to the jump in the oil price. The energy giant will be holding its investor day to outline its growth strategy to the investment community.
Shareholders will be pleased that a corruption investigation against BHP Billiton Limited (ASX: BHP) relating to the 2008 Beijing Olympics has been settled and Morningstar has upgraded the stock to "buy" from "hold" following its more than 10% fall this week.
Gold miner Northern Star Resources Ltd (ASX: NST) should enjoy buying support on a firmer gold price and a positive exploration result from its Kalgoorlie operations.
Another stock looking set to deliver gains today is James Hardie Industries plc (ASX: JHX). The building materials company posted a 12% jump in its full year adjusted net profit to $221.4 million and announced a special dividend and share buyback.
Network services contractor Service Stream Limited (ASX: SSM) also had good earnings news for investors. Management said full year earnings before interest, tax, depreciation and amortisation (EBITDA) will come in at $23.5 million, compared to the $10.7 million it posted in the first half.
But it's not so good news for engineering contractor Cardno Limited (ASX: CDD) following yesterday's profit warning that shaved 27.3% off its share price. Its large US exposure should have given the company greater protection from the industry downturn but that belief is a fallacy.
I suspect it will remain under pressure as there's little reason to buy the stock until it shows clearer signs that it has turned a corner. UBS has also downgraded it to "sell" from "neutral".
On the acquisition front, junior miner Sirius Resources N.L. (ASX: SIR) has appointed Hartleys to help it defend against a potential bidder, according to the Australian Financial Review. Independence Group NL (ASX: IGO) has been touted as an interested bidder.
Oil & gas company Beach Energy Ltd (ASX: BPT) is also believed to be mulling a $30 million bid for Real Energy Corporation Ltd (ASX: RLE), according to the AFR.
