Markets gaining momentum
August 18th, 2010 by Lawrence Grasso
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,405.85 | 103.84 | 1.0% |
| NASDAQ | 2,209.44 | 27.57 | 1.3% |
| S P 500 | 1,092.54 | 13.16 | 1.2% |
| FTSE 100 | 5,350.55 | 74.45 | 1.4% |
| Nikkei 225 | 9,161.68 | -34.99 | -0.4% |
| ASX 200 | 4,477.00 | 38.5 | 0.9% |
| COMEX Gold - Dec 09 | 1227 | 0.8 | 0.1% |
| COMEX Silver - Sep 09 | 18.595 | 0.168 | 0.9% |
| COMEX Copper - Sep 09 | 333.85 | 5.9 | 1.8% |
| WTI Spot | 75.24 | -0.15 | -0.2% |
| AUD-USD | 0.9053 | 0.0069 | 0.8% |
| Aluminium | 2,135.00 | 14 | 0.7% |
| Copper | 7,315.50 | 110.5 | 1.5% |
| Lead | 2,113.00 | 72.5 | 3.6% |
| Nickel | 21,850.00 | 450 | 2.1% |
| Tin | 21,750.00 | 950 | 4.6% |
| Zinc | 2,101.00 | 60 | 2.9% |
The Dow Jones Industrial Average snapped a five-day losing streak Tuesday, powered in part by better-than-expected earnings from Home Depot and Wal-Mart and a $39 billion bid for Potash Corp of Saskatchewan Inc, the worlds largest fertilizer company. The bid sparked a rally in agricultural companies. The Dow Jones Industrial Average rose 103.84 points, or 1.01%, to 10405.85. While the sessions gains pushed the Dow into positive year-to-date territory for most of the day, the Dow closed with a 0.21%yearly decline.
On the local front today the XJO should open the session fairly strong with the SFE futures suggesting an open around 20 points higher. On the commodity front Oil held its ground around the $75 mark and advanced $0.53 or 0.7% to $75.77. Gold on the other hand was flat overnight with the commodity settling around $1227, up $0.80 or 0.07%. With BHP making its bid for Potash, we will probably see consolidation in Australian’s largest miner, which may give rise to a buying opportunity under the $39 level.
The reporting season in Australia has kicked off very nicely and analyst estimates have been smashed in a number of stocks. We believe this should see the market push higher over the next couple of sessions and potentially lead into a strong September. The first target on the upside for the XJO is around 4540 level, approximately 63 point higher from yesterdays closed. If the market can push through this level the next target is 4737.
Companies reporting today
WPL – Woodside Petroleum LTD.
Oil and gas producer Woodside Petroleum beat analysts forecasts with a 40% rise in first half profit and pushed back the target for the sanctioning of an expansion of its Pluto liquefied natural gas project into 2011, Net profit was US901 million, up 39.5 per cent from $US646 million in the first half of 2009. Woodside said the second half production will be solid. The company declared an interim dividend of 50 cents fully franked, up from 46 cents in the prior corresponding period.
WDC – Westfield Group
Westfield posted a first half net profit of $961 million Wednesday, reversing a net loss of $708.0 million a year earlier amid signs of improvements in retail markets. Westfield will pay an interim distribution of 32 cents a share, down from 47 cents previously. The reduced distribution reflects a payout ratio of 70% to 75% of earnings, down from 100% in previous years.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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