Consumer Discretionary

Brokers are now making assessments of how the FY10 earning season will fare and what FY11 might bring.

Wall Street turned a 157 point loss in the Dow into a 75 point gain with little impetus last night. Apple blew the market away after the bell. (Locked for subscribers until 10:00 AEST)

The July 6 Policy Meeting minutes confirm what investors should know already: the RBA has no intention of raising the cash rate beyond 4.5%, unless it has to.

Australian companies begin reporting FY10 results next week. FNArena provides some useful tips for the small investor – what to look out for, and what traps not to fall into.

Australian consumer spending has suffered during the GFC but in the view of Commonwealth Bank there are signs the trend is now set to reverse.

Orica offshoot DuluxGroup offers value according to both UBS and Macquarie, both brokers initiating coverage this week with Buy ratings.

Consumer confidence in Australia has bounced in a much stronger fashion than was expected.

While corporate earnings in Australia and globally are likely to be revised lower in coming months there still appears to be value in equities at current levels.

Westpac suggests Australia is undergoing a sea change in consumer behaviour, which brokers see as having an impact on operations for retailers of consumer discretionary items in particular.

Management of The Reject Shop has confirmed earnings guidance and brokers are encouraged by expansion plans.