Our market is expected to close the week out on a whimper on the back of mixed offshore leads and a slowdown in earnings news.
The futures market is pointing to a 0.5% decline in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) this morning as the 2.5% drop in the West Texas Intermediate (WTI) oil price to $US42.23 a barrel will weigh on energy stocks like Woodside Petroleum Limited (ASX: WPL), while the 1.3% bounce in the iron ore price to $US57.02 may not help our iron ore miners much.
The increase in the iron ore price is driven by the massive explosion at the Tianjin port, which is a major landing point for the steel-making ingredient. The accident could drive iron ore higher over the short term.
Miners from BHP Billiton Limited (ASX: BHP) to Fortescue Metals Group Limited (ASX: FMG) are scrambling to find alternative ways to unload their massive cargos of the ore.
But it's smaller iron ore player Atlas Iron Limited (ASX: AGO) that is likely to dominate investors' attention in the sector as it posted a huge $1.38 billion loss, which throws the spotlight on its ability to repay its debt. The miner has recently received large equity injections to keep it alive, but as I warned in May the miner could be coming back a zombie.
In other earnings news, car dealer Automotive Group Holdings Ltd (ASX: AHG) posted a net profit of $88.1 million for 2014-15, which is just under consensus, and said that the automotive market outlook remains strong.
Wireless device maker Netcomm Wireless Ltd (ASX: NTC) revealed a 142% surge in net profit to $2.5 million as sales increased 15.1% to $74.3 million, while polymer resins manufacturer Nuplex Industries Ltd (ASX: NPX) reported a 35% jump in net profit and says the fall in the New Zealand dollar will bolster earnings in 2015-16.
Elsewhere, building materials supplier James Hardie Industries plc (ASX: JHX) is holding its annual general meeting and is guiding for a net operating profit of $240-$270 million for 2015-16, and construction giant Cimic Group Ltd (ASX: CIM) announced that it won a $200 million water utility contract with Yarra Valley Water in Victoria.
Commonwealth Bank of Australia (ASX: CBA) will also be in focus as brokers helping the bank undertake its capital raising are looking for bids of at least $200 million with a floor price of$71.50 a share, according to the Australian Financial Review.
On the corporate action front, we might see a bidding war for Rio Tinto Limited's (ASX: RIO) coal assets as the AFR reports that Shenhua Group is interested in the mines. This follows reports yesterday that New Hope Corporation Limited (ASX: NHC) is running the ruler over the assets.
Finally, Ophthalmic services group Vision Eye Institute Ltd (ASX: VEI) has received a $1.10 a share offer for the company. The offer is a 20% premium to its last closing price and the company received a takeover offer from Pulse Health Limited (ASX: PHG) in July.
