A rally on Wall Street and a big bounce in commodity prices will push our market higher this morning as the next batch of companies gear up to release their profit results.
The futures market is pricing in a 0.5% rise in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) at the open as the market grows increasingly confident that China will undertake additional measures to stimulate its economy and a big $US37.2 billion ($50.2 billion) acquisition by Warren Buffett lifted overseas markets.
The US S&P 500 Index gained 1.3% and the European STOXX 50 Index climbed 1% and resource stocks are tipped to lead our market higher in early trade.
Copper miner Oz Minerals Limited (ASX: OZL) may be the one to watch as the stock is likely to enjoy a rebound from its six-month low of $3.57 yesterday as the copper price recovered 2.6% from its 2009 low to $US5,309 a tonne, while energy stocks like Oil Search Limited (ASX: OSH) will get a boost from a 3.7% jump in the Brent crude oil price to $US50.41 a barrel.
There's plenty of earnings news to keep investors on their toes too. Fast food chain Domino's Pizza Enterprises Ltd. (ASX: DMP) reported a 40% jump in net profit to $64 million for 2014-15 that was ahead of consensus but warned of an earnings slowdown in the current financial year.
Toll road operator Transurban Group (ASX: TCL) reported a 38% increase in proportional earnings before interest, tax depreciation and amortisation (EBITDA) for 2014-15 and said it was aiming for an 11% increase in dividend distributions this financial year.
Mining services company Bradken Limited (ASX: BKN) turned in an underlying EBITDA of $136.9 million, which is in the middle of its guidance range, and said that merger talks were ongoing; while hearing implant company Cochlear Limited (ASX: COH) is expected to release its full year earnings later today.
Meanwhile, pet care group Greencross Limited (ASX: GXL) reported a 77% increase in underlying net profit of $38.2 million and a 45% uplift in revenue to $644.5 million for the full year, while accounting software company Reckon Limited (ASX: RKN) posted a 6% increase in interim sales to $54 million as earnings per share jumped 8% to 7.9 cents for the period.
Medical diagnostic company Capital Health Ltd (ASX: CAJ) also handed in its results that showed a 46.6% drop in net profit to $3.9 million but a 23.1% increase in revenue to $111.2 million for the year ended June 30, 2015.
In other news, engineering contractor Worleyparsons Limited (ASX: WOR) warned it will take a $200 million impairment charge to goodwill, The Australian reports that investment bank Macquarie Group Ltd (ASX: MQG) is considering bidding for Pacific Hydro, and integrated energy company Origin Energy Ltd (ASX: ORG) suffered a credit rating downgrade by Moody's.
