Qantas report A$235M Net Loss and to axe 5000 jobs
By Chay Flack (Equities Dealer, CMC Markets Stockbroking)
The Dow Jones has added 18.75 points overnight and the S has closed flat adding 0.04 of a point. US New homes sales increased to the highest level since 2009 at 468,000
seasonally adjusted rate, causing stocks to erase earlier intra-session losses on the S
The S is hovering around its all-time highs but was unable to close above its closing high set earlier in the week, missing
by just 3.14 points.
Qantas have reported this morning that they have made a A$235M Net loss, will axe 5000 jobs and defer the remaining A380
and 787-8 orders. The attempt to rein in costs is a good sign however the stock is encountering some early selling this
morning with anticipation at fever pitch and a strong rally in recent days
Our futures market is pointing down 15 points as we near the end of reporting season and a number of companies are Ex
Dividend (Aurizon Holdings, Fortescue Metals Group, Fairfax Media Ltd, Toll Holdings).
Last week I made the call that strong earnings were priced into the market and I was expecting a fall in the ASX 200. I
was wrong to the tune of 100 points as the Australian market establishes new highs since 2008. I still think the
weakness is there and short term downside risk is a concern, however investor optimism could see this rally continue.
ENDS