Earning Season....
July 13th, 2010 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,216.27 | 18.24 | 0.2% |
| NASDAQ | 2,198.36 | 1.91 | 0.1% |
| S P 500 | 1,078.75 | 0.79 | 0.1% |
| FTSE 100 | 5,167.02 | 34.08 | 0.7% |
| Nikkei 225 | 9,548.11 | -37.21 | -0.4% |
| ASX 200 | 4,409.90 | 13.6 | 0.3% |
| COMEX Gold - Dec 09 | 1,198.70 | -11.1 | -0.9% |
| COMEX Silver - Sep 09 | 17.917 | -0.156 | -0.9% |
| COMEX Copper - Sep 09 | 300.9 | -4.45 | -1.5% |
| WTI Spot | 75.25 | -0.84 | -1.1% |
| AUD-USD | 0.8759 | -0.0017 | -0.2% |
| Aluminium | 1,970.50 | -6.5 | -0.3% |
| Copper | 6,680.50 | 39.5 | 0.6% |
| Lead | 1,808.00 | 4 | 0.2% |
| Nickel | 19,130.00 | -195 | -1.0% |
| Tin | 17,700.00 | 30 | 0.2% |
| Zinc | 1,840.00 | 10 | 0.5% |
Earnings…
Earnings season kick-off in the United States with Alcoa Inc, often seen as a barometer of the U.S. economy, reporting a second-quarter profit of $136 million, or 13 cents a shares beating analyst’s expectation of 12cents a share. Although the price of aluminium has fallen about 12 percent in 2010, Alcoa offset that drop with a jump in volumes. The company also cited better productivity, foreign-exchange benefits and lower energy costs as contributing factors for revenue climb.
However concerns surrounding other companies second-quaerter earnings reports and disappointing import data from China weighed on the market namely the materials sector. The Dow climbed 18.24 points, or 0.18 percent to 10216.27, the fifth-straight session in the black. Chinese economic data showed imports have slowed to a yearly growth rate of 37.1 percent in June from 48.3 percent in May.
The market is still nervous, following sinking prices two weeks ago and a big rally last week. The XJO has rallied more than 200 points bouncing last week off its July low. The market will be waiting for further direction, most likely coming from off shore. The following companies on Wall Street will be reporting this week:
Monday: Alcoa
Tuesday: Intel, Yum!
Wednesday: Texas Instruments
Thursday: JPMorgan, Google
Friday: Bank of America, Citi, GE
On the commodities front, gold failed to shine falling $US11.10 an ounce or 0.9 percent to $US1198.70. Gold has been trading in a narrow range within $15 an ounce of $US1200 since July 2nd, as global equities markets have stabilised following concerns of a double-dip recession. However, gold may shine as investors hedge against inflation pressure amid fears the US Federal reserve’s monetary policy may lead to inflation.
Macquarie Group
Clients who are holding MQG shares may want to sell calls today. The share price has bounced $4 off its low of $35.35 and will face resistance at the $42 level.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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