Market waits for earnings rush
July 27th, 2009 by Cale McCulloch
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 9093.24 | 23.95 | 0.3% |
| NASDAQ | 1965.96 | -7.64 | -0.4% |
| S P 500 | 972.49 | -3.8 | -0.4% |
| FTSE 100 | 4576.61 | 16.81 | 0.4% |
| Nikkei 225 | 9944.55 | 151.61 | 1.5% |
| ASX 200 | 4,090 | 25.7 | 0.6% |
| COMEX Gold - Aug 09 | 953.1 | -1.7 | -0.2% |
| COMEX Silver - Jul 09 | 13.875 | 0.105 | 0.8% |
| COMEX Copper - Jul 09 | 252.2 | -0.2 | -0.1% |
| WTI Spot | 66.96 | 0.86 | 1.3% |
| AUD-USD | 0.8174 | -0.0001 | -0.0% |
| Aluminium | 1798 | 95.5 | 5.6% |
| Copper | 5551 | 77 | 1.4% |
| Lead | 1739 | 40 | 2.4% |
| Nickel | 16625 | 325 | 2.0% |
| Tin | 14955 | 530 | 3.7% |
| Zinc | 1677.5 | 35 | 2.1% |
U.S markets managed to shrug off the first decline in consumer sentiment since February on Friday night, with two of the three indices managing to close in positive territory. The NASDAQ broke a 12 day winning streak, led lower by Microsoft on the back of some disappointing earnings after the bell the session before. Strength in oil supported the Oil refiners and helped the Dow and S&P 500 hold on to some minor gains, with the Dow edging up by just 24 points, and S&P managing just a 3 point gain by the close.
Base metals were mixed, so we are unlikely to see much action in the resource sector. While focus will be firmly on the Banking sector again this week, as the market watches other bank closely for hints as to whether they may also pull the trigger on capital raisings while the market is at its highest level of the year, following a 2.75bn raising by NAB last week.
Also in focus will be fertilizer producer Nufarm, following on from 25%gains late last week after the company confirmed it had received an informal proposal from Sinochem, who confirmed the discussions over the weekend.
There will be a lack of significant economic data domestically, although we will see a slow kick off to the reporting season. Australand property are first cab off the rank today with a result that will be unlikely to impress. Also on the reporting schedule for the week is GUD holdings, Alesco corporation, Alumina, Axa asia pacific and Energy Resources of Australia.
The next couple os sessions will be key for the markets, as the recent rally runs out of steam, and investors question the speed of the gains. Any disappointment could spark a healthy bout of profit taking this week, that may see the local market back below index 4000 quicker than you can snap your fingers. The flip side to that coin, is that any positive shock could send side line cash into the market, and take the index substantially higher in coming sessions.
Option expiry this week, so have a chat to your broker on Thursday!
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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