The S&P 500 was down by0.96points or 0.05%on Friday to 2010.40 points.  U.S. stocks closed little changed on Friday after Alibaba's strong debut was offset by falling technology shares as Oracle and Yahoo stumbled, but the Dow managed to edge higher to set a record for a second straight session. Oracle shares lost 4.2 percent to $39.80 as the biggest drag on the S&P 500 while the S&P technology index was the worst performing of the 10 major S&P sectors.

Among the most active stocks on the NYSE were Alibaba, Coca-Cola Co up 0.62 percent to $42.05, and Bank of America down 0.53 percent to $16.95. Across the Atlantic the FTSE Eurofirst 300 rose 0.3% for the weekly advance of 1.3% while a 1.6% jump for the Nikkei 225 Average in Tokyo gave it a five day gain of 2.3% and left it at a seven year high. The broadly constructive response from the equity markets reflected the key message from the fed – “that a rate rise remained some distance away" and when it does come would represent the reflection of a credible self-sustaining growth momentum that the economy will have acquired at that point.
 

S&P 500 Daily Chart (Source – Thomson Reuters)
 
S&P ASX 200 was up by 17.3points or 0.32%on Friday and closed at 5433.10 points. Thebig four banks and Telstra have suffered two straight weeks of losses as the Australian dollar finally began to fall and investors looked away from high dividend paying yield stocks and towards companies with new revenue streams. Shares in Myer added 0.5 per cent to $2.03 over the week. Junior iron ore miner Arrium was the worst-performing stock of the week plummeting 42.3 per cent to 37.5 cents.  The price of iron ore fell 1.6 per cent to $US81.70.
AWE was the top stock in the ASX 200 after the discovery of what may be Australia’s biggest onshore gas discovery since the 1960s AWE added 3.1 per cent to $1.97. As part of the continuing international development of Bega Cheese, the company signed a supply and distribution agreement with one of China’s leading retail groups. International passenger growth at Sydney Airport (SYD) continues to be solid for the year to date up 3.6% on the prior corresponding period (PCP), with domestic passengers 1.0% and total passengers up 1.8%. The following stocks will trade ex-dividend today:
IOOF, Macquarie Atlas Roads

AWE Daily Chart (Source – Thomson Reuters)

The top gainers on ASX 200 were:-


 

Growth & Reasonable Yield Stocks to BUY
 


 
Stock of the Day – AMP (Expensive)

AMP delivered a much improved and better than expected first half performance following a challenging 18 months. AMP is reaping the benefits of a well-executed strategy, rising investment markets and improving investor sentiment.  Underlying profit is up by 16% to AUD 510 million for first half 2014, with all divisions contributing. Reported group profit of AUD 382 million was down slightly on the year ago period.



1H 14 Business Performance (Source – Company Reports)

The important wealth protection business delivered an encouraging turnaround with operating earnings of AUD 91 million for the half, far exceeding the average of AUD 40 million for the three previous half years. We are relieved the earnings recovery is well underway, with remedial action undertaken in 2013 improving claims and lapse performance. Standout features include the steady progress in restructuring and simplifying the core Australian business, cost to income improving , traction in Asia on the back of strong inflows, stabilization of wealth protection unit and the return on equity trending higher.


AMP Financial Overview (Source – Company Reports)

On the downside margin compression continues in the Australian wealth business, group net flows were positive but should be higher, AMP’s capital investment performance could have been better and regulatory uncertainty persists across industry. Following the better than expected result earnings forecasts are increased as the combination of increasing appetite for higher yielding assets, improving investor sentiment and stronger markets boosts inflows.


AMP Daily Chart (Source - Thomson Reuters)

AMP’s long term revenue growth is leveraged to the tailwinds behind Australia’s AUD 2.3 trillion wealth management industry as it doubles in size by 2022 and selective investment in Asia and internationally through AMP capital. In addition earnings growth will be underpinned by utilizing technology to improve customer acquisition and retention combined with ongoing reduction in costs to improve underlying profitability. Margin compression continued with the wealth management unit’s margin of 118 basis points declining from 122 basis points in first half 2014. We believe the stock is expensive at its current price and would review the stock at a later date.