Dow Jones Down 26pts, Gold Slips
February 4th, 2010 by Katy Loi
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,270.55 | -26.3 | -0.3% |
| NASDAQ | 2,190.91 | 0.85 | 0.0% |
| S P 500 | 1,097.28 | -6.04 | -0.5% |
| FTSE 100 | 5,253.15 | -30.16 | -0.6% |
| Nikkei 225 | 10,404.33 | 33.24 | 0.3% |
| ASX 200 | 4,648.00 | 42.6 | 0.9% |
| COMEX Gold - Dec 09 | 1,112.00 | -6 | -0.5% |
| COMEX Silver - Sep 09 | 16.317 | -0.426 | -2.5% |
| COMEX Copper - Sep 09 | 297.35 | -11.6 | -3.8% |
| WTI Spot | 76.98 | 0.14 | 0.2% |
| AUD-USD | 0.8825 | -0.0039 | -0.4% |
| Aluminium | 2,075.00 | 28.5 | 1.4% |
| Copper | 6,865.00 | 190 | 2.8% |
| Lead | 2,095.00 | 94 | 4.7% |
| Nickel | 18,125.00 | 100 | 0.6% |
| Tin | 16,330.00 | 270 | 1.7% |
| Zinc | 2,157.50 | 65 | 3.1% |
The Dow finished down 26 points, gold was down 8 dollars closing at 1110 dollars an ounce while oil remained flat. Cisco reported earnings greater than expected at $9.8B versus consensus of $9.4 billion in second quarter.
US treasury secretary Tim Geithner has increase tarp funding for community banks (where they can apply for capital of up to 5% of assets) in a bid to increase small business lending. $500m to $1 billon will be deployed to community financial institutions.
Unemployment figures are out on Friday night. The U.S. may lose 824,000 jobs when the government releases its annual revision to employment data on Feb. 5, showing the labor market was in worse shape during the recession than known at the time. Economist expect unemployment rate to remain at 10%. Unemployment may be considered a coincident indicator but the need is to increase credit availability – particularly to small business where owners can start to hire people. So the move can be seen as positive for the market.
Our market is set to open down 17 points as indicated by SPI futures.
Oil stocks such as WPL may be a good value at the moment supported by the oil price potentially rising as much as 2.5% over the next month.
QBE can be seen to have been an underperformer due to the strong Australian dollar and will see further strength if our currency falls in value (AUD support can be seen at 0.8745). NWS has reported a profit of US$254 million for the three months to December 31, 2009 compared with a loss of $6.4 billion in the same quarter a year ago.
Today, if the market breaks 4650 we could see it retest the 4732 which is where the 100 day moving average sits. It has recently dipped below the long term up trend, however the last few sessions has shown increased strength from buyers. 4510 still holds as good support as we saw November 09 levels retested early this week. With a pennant formation happening on an hourly chart of the index, a break above 4650 on significant volume could see a rally in the market today.
We may see the market go into a trading range during reporting season and may see it up to 5000 after. The consensus is that earnings have been conservative by analysts so there may be potential upgrades. Resources are expected to have good results whilst financial stocks may have some surprises.
RBA monetary policy statement is out today.
Offshore, the ECB interest decision is out, and is unchanged at 1%.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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