Dow Jones Industrial Average closes higher
July 2nd, 2009 by Cale McCulloch
Closing Data
| Current | +/- | % | |
|---|---|---|---|
| Dow Jones | 8504.06 | 57.06 | 0.7% |
| NASDAQ | 1845.72 | 10.68 | 0.6% |
| S P 500 | 923.33 | 4.01 | 0.4% |
| FTSE 100 | 4340.71 | 91.5 | 2.2% |
| Nikkei 225 | 9939.93 | -18.51 | -0.2% |
| US Bond 10 Yr | 3.5356 | 0.0001 | 0.0% |
| US Bond 30 Yr | 4.3299 | -0.0014 | -0.0% |
| COMEX Gold - Aug 09 | 941.3 | 13.9 | 1.5% |
| COMEX Silver - Jul 09 | 13.74 | 0.166 | 1.2% |
| COMEX Copper - Jul 09 | 231.5 | 5.7 | 2.5% |
| WTI Spot | 69.32 | -0.5 | -0.7% |
| Aluminium | 1610 | -6 | -0.4% |
| Copper | 5042 | -66 | -1.3% |
| Lead | 1695 | -35 | -2.0% |
| Nickel | 15775 | -235 | -1.5% |
| Tin | 14460 | -490 | -3.3% |
| Zinc | 1544.5 | -10.5 | -0.7% |
The Dow Jones Industrial Average managed to close 57 points higher over night on the back of some good numbers in manufacturing and housing. The rally began in the Euro-zone as the UK Purchasing Manufacturers index showed some increase. There was also an increase in output in the UK which, when combined with department store growth, set the stage for a 2% rally in Europe.
The positive sentiment from the Euro zone flowed across to the US early on, acting as a catalyst for the US futures even before the release of data. We then saw pending home sales climb for the fourth month in a row, while a report also showed that there was a real reduction in the number of planned redundancies, set to be down around 33% for the month of May. The market chose to focus on the two positive releases to a certain extent and ignore the larger than expected private sector jobless numbers that were also released.
The Market also took lead from some good auto sales data out from Ford, in that the sales have only fallen 11% for the month of June. Unfortunately the market could not look to GM for the same lead as they were hit by falling truck sales which dragged their sales down by 36% for the month.
Something worth noting however, even with the rise in the Dow and S+P 500, the futures market shed all of the gains late in the session, with the Dow futures ending unchanged following early strength that carried the index higher. This shows the lack of direction for the market at the moment as it battles with a mixed bag of economic data. Such small moves on the index show a severe lack of conviction, as the markets looks for a lead either way.
The SPI has our market opening 16 points higher this morning. Strength in commodities is likely to be the main driver. The base metals gained between 2 and 7%, and Gold put on some 1.5%.
The financials were broadly weaker yesterday, following some end of year window dressing that carried the banks to levels they probably should not be at just yet.
If you have any warrants over banks that you are planning on cashing out of at some stage, we would suggest now is a pretty good time with the Banks being back at levels not seen since before credit markets froze following the collapse of Lehman brothers.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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