U.S. Earnings Season Begins
July 9th, 2009 by Cale McCulloch
Closing Data
| Current | +/- | % | |
|---|---|---|---|
| Dow Jones | 8178.41 | 14.81 | 0.2% |
| NASDAQ | 1747.17 | 1 | 0.1% |
| S P 500 | 879.56 | -1.47 | -0.2% |
| FTSE 100 | 4140.23 | -46.77 | -1.1% |
| Nikkei 225 | 9420.75 | -227.04 | -2.4% |
| US Bond 10 Yr | 3.3072 | -0.1492 | -4.3% |
| US Bond 30 Yr | 4.1889 | -0.1198 | -2.8% |
| COMEX Gold - Aug 09 | 909 | -20.1 | -2.2% |
| COMEX Silver - Jul 09 | 12.852 | -0.368 | -2.8% |
| COMEX Copper - Jul 09 | 215.9 | -6.65 | -3.0% |
| WTI Spot | 60.15 | -2.73 | -4.3% |
| Aluminium | 1561.5 | -48.5 | -3.0% |
| Copper | 4850 | -162 | -3.2% |
| Lead | 1625 | -89.5 | -5.2% |
| Nickel | 15450 | -620 | -3.9% |
| Tin | 14105 | -345 | -2.4% |
| Zinc | 1517.5 | -51.5 | -3.3% |
US markets closed largely unchanged, with the Dow and NASDAQ putting up minor gains, while the S&P500 slid slightly at the close. The retreat of many sectors came ahead of the kick off in earnings, amid fears that they are likely to disappoint. However, Alco kicked off reporting season after the bell and announced a loss of 26 cents a share from continuing operations, better than the expected loss of 38 cents per share. The stock jumped 8% in extended trading.
The financials were the biggest drag on the index amidst concerns that the earnings recession will further deteriorate the value of corporate debt, with the bigger banks falling 2-3%. The resources sector was largely flat ahead of the Alcoa result that came after market.
Base metals came under some heavy selling pressure, with Copper and Lead falling 3%, while Zinc, Aluminium and Nickel gave back between 4-4.5. Tin was the worst hit, coming off a whopping 6% overnight.
In the precious metals space, Gold and Silver both continued their downward slide, with Gold falling some USD 20 per ounce to $909 a Troy ounce, while Silver also fell 3%. We will see some weakness in the Gold space locally. Oil stocks, although having been resilient throughout the pull back in Oil, may slide further this morning on the back of an additional USD 2.70 slide in oil to close at USD 60.15 per barrel.
Big Miners, although there has been some weakness in base metals, should continue their rise of yesterday afternoon, having staged dramatic turnarounds on the biggest volume in days on the local market yesterday. Add to this the Alcoa result, just released, is likely to act as a positive for the sector. It is important to note that recent declines in base metals are unlikely to be reflected in this year’s results of the mining companies.
All in all the SPI has us opening down 4 points, but look for some continued bargain hunting.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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