A big drop in the oil price has offset modest gains on Wall Street but that may not be enough to stop our market from clawing back some of yesterday's losses.
The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is expected to inch up 0.2% in early trade but energy stocks are likely to drag on the market after the West Texas Intermediate oil price slumped 4.5% to $US47.40 a barrel following a monthly report by the Organization of the Petroleum Exporting Countries (OPEC) showing the bloc has continued to ramp up production even as prices fell.
It won't be a pretty day for the likes of Woodside Petroleum Limited (ASX: WPL), but it's Santos Ltd (ASX: STO) that will take centre stage as it looks to cut another 200 jobs from its South Australian operations after letting 565 employees go over the past year as part of its restructure to cope with the crash in energy prices.
I doubt Rio Tinto Limited (ASX: RIO) and friends will fare much better even though the iron ore price rose for the third day as experts are predicting that the bounce won't last. BMI Research is forecasting the price of the steel making ingredient will extend its decline in 2016, as Goldman Sachs echoed a similar view.
There's plenty happening in the acquisitions front to keep investors on their toes too. The market will be wondering if Dick Smith Holdings Ltd (ASX: DSH) will be the next takeover target after The Australian reported that the electronics retailer hired advisors Luminis Partners to help defend it against potential suitors.
It has also been revealed by the Australian Financial Review that wealth manager IOOF Holdings Limited (ASX: IFL) is behind the $2.75 a share takeover offer for Hub24 Ltd (ASX: HUB). The sector is a hotbed for mergers due to the need for scale.
Meanwhile, gas pipeline operator DUET Group (ASX: DUE) could find support at the expense of embattled oil and gas contractor Worleyparsons Limited (ASX: WOR) after Société Générale speculated that Duet will be included in the MSCI indices while Worleyparsons will be dumped.
Telecommunications giant Telstra Corporation Ltd (ASX: TLS) will also be in the spotlight as it holds its annual general meeting today. Investors will be keen to hear about its growth strategy in the wake of a merger frenzy among smaller telcos, which is creating greater competitive pressure.
Shareholders in supermarket giant Woolworths Limited (ASX: WOW) might be feeling a little grumpy on news that it has tipped in another $70 million into its money losing DIY chain Masters as its US partner Lowe's injected $35 million to prop up the business.
Lowe's has the right to ask Woolworths to buy back its one third stake in the JV before October 20 and Lowe's might be happy to put the extra investment into Masters because it knows it can get it back.
Finally, today is the last day you can buy crop protection company Nufarm Limited (ASX: NUF) and technology consultancy SMS Management & Technology Limited (ASX: SMX) for their dividends as they trade ex-div tomorrow.
Nufarm will pay an unfranked 6 cents a share dividend, while SMS will deliver a fully franked 10 cents a share payout.
