S&P 500 was up 2.13 points up by 0.12% closing at 1840.76. Equities rose for the week as Federal Reserve Chair Janet Yellen pledged to maintain here predecessor’s policies of scaling back stimulus in measured steps. As per her statement Economic growth has strengthened and there is broad improvement in the labor market and only a notable change in outlook for the economy would prompt the central bank to slow the pace of tapering.


S&P 500 Daily Chart   (Source – Thomson Reuters)

The S&P 200 finished up 9.9 points at 5392.8. Overnight SPI 200 is up 8 points. Top performers on ASX 200 are mentioned below:

Stock Code	Stock Name	% Change
MND	MONADELPHOUS GROUP LIMITED	9.69%
KAR	KAROON GAS AUSTRALIA LIMITED	4.26%
NWH	NRW HOLDINGS LIMITED	3.99%
SRX	SIRTEX MEDICAL LIMITED	3.82%
AAD	ARDENT LEISURE GROUP	3.32%

 
S&P ASX 200 Daily Chart (Source – Thomson Reuters)

Also there was news that BHP is backing its iron ore surplus forecast. BHP’s head of marketing Mike Henry mentioned that the company expected seaborne supply to rise by more than 100m tones this year while the global demand for the key steelmaking ingredient would go up only by 60m tones. Iron ore is closely followed by the financial community because it is seen as a proxy for the industrial activity and construction in China which imports almost two thirds of the world’s seaborne trade.


Daily Chart BHP    (Source – Thomson Reuters)

Stock of the Day – Domino’s Pizza (DMP)
DMP delivered a 1H14 result that highlighted the strengths of the business and the management team with continued growth form ANZ despite cost headwinds, initial contribution from Japan ahead of expectations and upgrade FY14 guidance for Japan and maintained guidance for ANZ/Europe, despite continued weakness from Europe.

The continued operating leverage in ANZ was the first standout feature of the result (Sales +11.9%, EBITDA +21%) and we believe that current momentum is supportive of strong double digit EBITDA growth from ANZ over the next three years. The second stand out feature was delivery ahead of management expectations but in line with the acquisition strategy of the result in Japan and pointing to a very strong outlook for the division. Europe looks weak but DMP is implementing new initiatives and has changed management.


Daily DMP Chart   (Source – Thomson Reuters)

Strong growth in ANZ was a result of the continued shift to online sales, solid uptake of the chef’s best range and other new product offerings along with a solid customer response to DMP’s value offering. We believe the main driver for Japanese earnings was the relocation of stores tor high profile locations, new product launches and effective marketing campaign. We believe this delivery of result ahead of management expectations was for all the right reasons and positions the division to achieve the management’s long term targets of 700 store roll out and leveraging existing ANZ expertise in systems.
The result from European business was the biggest disappointment, despite positive currency movement and continued sales growth in the local currency. We maintain our view that DMP’s use of product innovation and distribution through digital channels is appositive contributor to growth both in terms of driving sales and cost control.

We have concerns for the DMP business with regards to the continued competition, falling AUD and European Franchise growth. The continued weakness in Europe and its ability to be a drag on the business on the like for like operations in the medium term. We like the DMP story but think that the stock is expensive at the current price and would monitor the stock for any changes.
 

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