Finally... new money in the market!!!
October 1st, 2008 by Zeyar Htut
Closing Data
| Dow Jones +485.21 @ 10,850.66 | NASDAQ +98.6 @ 2,082.33 | Gold -20.5 @ 884.5 |
| Oil +4.41 @ 100.7 | FTSE +83.7 @ 4,902.5 | Silver -0.75 @ 12.275 |
| Copper -336 @ 6,590 | Lead -144.5 @ 1,835.5 | Zinc -98 @ 1,682.5 |
| Aluminum -52 @ 2,410 | Nickel -595 @ 16,355 | Tin -185 @ 17,815 |
SPI Futures +127 @ 4,812
Finally… new money in the market!!!
U.S. stocks bounced back overnight on speculation that the financial sector bailout would be passed this week. The Dow rose 485 points, after posting its one-day record loss of 778 points when the House of Representatives rejected the plan, which would have tax payers buying bad debt from troubled banks so they could resume lending.
The relief rally was led with buying on financial and tech companies - JPMorgan jumped 14% along with Apple up 8%. However in economic data released overnight US Housing prices fell a record 16.3% in July, but Consumer confidence was much stronger than expected by the market.
Interestingly enough our broking desk yesterday saw some good support and considerable fresh buying in companies like Rio Tinto, BHP, Westpac, ANZ, Brambles, Suncorp and Commonwealth Bank. Indicating that clients are seeing long-term value in the market.
It is important to note that our economy remains strong – unemployment is low, our Government is running a surplus, the housing sector is sound, our 4 major banks have high credit ratings and our commodities remain in strong demand.
Our market will open higher with futures pointing up 2.71% being lead by BHP, based on its solid close on Wall Street. Also today the ACCC is due to complete its investigation on BHP's hostile takeover proposal for Rio Tinto, with the ruling due sometime this week.
Given the uncertainty in the market we are still of the view that our clients should continue to review their portfolios switching from non performing businesses to transparent ones which have provided realistic profit outlooks for the year ahead.
Please contact your stockbroker to review your portfolio.
Quote of the Day: “I'm gonna live till I die.” Frank Sinatra
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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