Momentum Set To Continue
July 15th, 2009 by Cale McCulloch
Closing Data
| Current | +/- | % | |
|---|---|---|---|
| Dow Jones | 8359.49 | 27.81 | 0.3% |
| NASDAQ | 1799.73 | 6.52 | 0.4% |
| S P 500 | 905.84 | 4.79 | 0.5% |
| FTSE 100 | 4237.68 | 35.55 | 0.8% |
| Nikkei 225 | 9261.81 | 211.48 | 2.3% |
| US Bond 10 Yr | 3.4741 | 0.1213 | 3.6% |
| US Bond 30 Yr | 4.3765 | 0.143 | 3.4% |
| COMEX Gold - Aug 09 | 922.8 | 0.3 | 0.0% |
| COMEX Silver - Jul 09 | 12.855 | 0.07 | 0.5% |
| COMEX Copper - Jul 09 | 229.9 | 7.6 | 3.4% |
| WTI Spot | 59.62 | -0.07 | -0.1% |
| Aluminium | 1566 | 34.5 | 2.3% |
| Copper | 5011 | 128 | 2.6% |
| Lead | 1569 | 2 | 0.1% |
| Nickel | 15455 | 1095 | 7.6% |
| Tin | 13085 | 435 | 3.4% |
| Zinc | 1469 | 8 | 0.5% |
Markets managed to claw their way into positive territory after what managed to be a fairly narrow range for the bourse, in a session that was shaping up to be BIG. Markets around the globe had rallied during previous sessions on expectations of record trading revenue by Goldman Sachs, and a number of broker upgrades, the most notable being a buy recommendation from Meredith Whitney. The company did not disappoint, reporting a profit per share of USD 4.58, beating analyst estimates of $3.48 per share although it appeared that the result was priced in to the stock already, as the company managed to slip 6c, closing at $149.38 unable to break the $150 psychological level that broke down following the Lehman collapse last year.
Better than estimated retail sales boosted consumer shares, while energy producers climbed despite another flat close in Oil after earlier trading above USD 61 per barrel. It was the technology sector that weighed most heavily on the market, with Dell saying that profit will come under pressure for the quarter on the back of higher costs, the company gave back a little over 8% for the session. Also weighing on the market over night was a report that showed Producer prices had climbed some 1.8% in the last period, with the bulk of the rise being attributed to higher energy costs which have declined recently. The Producer price data sparked fresh concerns about inflation initially and sent the gold price higher before concerns eased in a heartbeat and the precious metal gave back all of the early gains to end the session virtually unchanged.
Strength in the Base metals will filter through to continued strength in the resource sector locally, with the metals climbing 3-6% across the board. While BHP and RIO climbed 3 and 5% respectively in London trading.
Asian markets had their biggest rally in seven months yesterday, led higher by Hong Kong and Australian markets, both gaining over 3%. Look for a continuation of the positive momentum and sentiment that took the local market to a close on the highs of yesterday’s trading, likely led by the resource sector once again on the back of the stronger base metals. The SPI has us opening 35 points higher, but look for 1.5% on the open.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
Disclaimer
The material in “Market Fox” (newsletter) is of a general nature only and neither purports nor is intended to be regarded as advice. No consideration has been given or will be given to your investment objectives, financial situation or needs. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk. Not all risks can be or will be explained in the newsletter. Previous results are no indication of future results. Actual results achieved in the market can vary considerably. The Directors and Representatives of Freeman Fox Ltd and their associates may hold securities in the companies presented.
The research made available in this newsletter is for your private use only and it is protected by applicable copyright laws and other applicable intellectual property right laws. You may not reproduce, distribute, disseminate, broadcast, sell, publish, circulate or give for free, any of the materials made available to you in this newsletter without first seeking the prior written consent of Freeman Fox Ltd.
Freeman Fox Ltd is not required to update any of the content made available in this newsletter, including but not limited to any research commentary, forecasts, recommendations or other analysis in this newsletter. Therefore, for the avoidance of any doubt, material made available in this newsletter may not be accurate after the date of publication or the date on which it is displayed in the newsletter.
To the extent permitted by law, Freeman Fox Ltd and their respective directors, officers, employees, contractors and agents disclaim all responsibility to you for any loss, liability, claim, expense (including but not limited to legal costs and resultant defence or settlement costs) or damage whatsoever, whether direct, consequential, special, incidental, punitive or indirect (including but not limited to loss of profits, trading losses and damages that result from delay, loss or inconvenience) arising out of or in connection with the content of the newsletter and/or any omissions from the content whether in contract, tort (including negligence), statute or otherwise and even if Freeman Fox Ltd has been advised of the possibility of such damage or loss.
If you require assistance in relation to your personal investment situation, contact an authorised representative of Freeman Fox Ltd.