Dow Up On Positive Earning Reports
April 22nd, 2010 by Katy Loi
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 11,124.92 | 7.86 | 0.1% |
| NASDAQ | 2,504.61 | 4.3 | 0.2% |
| S P 500 | 1,205.93 | -1.24 | -0.1% |
| FTSE 100 | 5,723.43 | -60.26 | -1.0% |
| Nikkei 225 | 11,090.05 | 189.37 | 1.7% |
| ASX 200 | 4,954.30 | 28.5 | 0.6% |
| COMEX Gold - Dec 09 | 1,144.00 | 4.8 | 0.4% |
| COMEX Silver - Sep 09 | 17.91 | 0.089 | 0.5% |
| COMEX Copper - Sep 09 | 349.8 | -1.55 | -0.4% |
| WTI Spot | 83.5 | -0.46 | -0.5% |
| AUD-USD | 0.927 | -0.0048 | -0.5% |
| Aluminium | 2,384.00 | 45 | 1.9% |
| Copper | 7,787.00 | 131 | 1.7% |
| Lead | 2,264.00 | 76.5 | 3.5% |
| Nickel | 27,310.00 | 905 | 3.4% |
| Tin | 19,120.00 | 420 | 2.2% |
| Zinc | 2,389.50 | 57.5 | 2.5% |
The Dow closed slightly up overnight on better than expected earnings from Apple, Morgan Stanley and Boeing. Overall about 83 per cent of S & P 500 companies have beaten estimates. The IMF have said that China should let the yuan gain to dampen growth and Japan must be ready to widen its stimulus measures. It seems that currencies of a number of emerging Asian economies are undervalued. It is essential for China to address excess demand pressures by reducing credit growth and allowing their yuan to appreciate.
Crude oil dropped in New York after a U.S. Energy Department report showed supplies surged at the delivery point for the U.S. benchmark grade as imports climbed to the highest level since September. Gold futures closed higher and nearer the session high Wednesday as fresh speculative buying interest entered the market after the recent dip in prices. June Comex gold closed up $9.60 an ounce at $1,148.80. Traders have moved the Goldman Sachs fraud charges from the SEC to the back burner as investor risk appetite has improved this week.
In company news, ANZ Banking Group Ltd is considering a bid for Lone Star’s $4 billion controlling stake in Korea Exchange Bank. Reports say ANZ is a serious contender for South Korea’s sixth-biggest lender as it seeks to boost its presence in Asia. BHP Billiton Ltd says it produced a total 31,164 tonnes of iron ore during the March quarter, up 11% on the same period last year. Meanwhile, the global miner says it is cooperating with US authorities in an investigation into possible corruption involving government officials. Shares in National Australia Bank ran against the rising trend, losing 1.3 percent to A$28.46 after the bank said it did not agree with the Australian competition regulator's decision to block its $13 billion bid for AXA Asia Pacific and was pursuing a range of options.
Technically our market is still trading on its uptrend since the low made in early February. After two and a half months trading above the 20 day moving average, we are now hovering around support at 4948. Momentum may be building for the next move up as volume has picked up as buyers come in to support the market when it dips. Risk aversion which is gauged by the Volatility index has fallen back to a key support level now – suggesting comfort in the market for taking on risk. Over the next couple of weeks, we may see our market test resistance at 5000 again to finish the month on a positive note. If it takes another dip, support may be found at 4910 then 4850. Today, I think we may add 20-30 points on the index with 4970 as a key resistance. Data out today is New motor vehicle sales for March – should this be greater than expected it will be a good indication of recovery as consumers would not commit to vehicles should they not be confident in
economic conditions.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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