US Job market shows signs of recovery

December 24th, 2009  by Katy Loi

Closing Data

	Current	Change	%
Dow Jones	10466.44	1.51	0.0%
NASDAQ	2269.64	16.97	0.8%
S P 500	1120.59	2.57	0.2%
FTSE 100	5372.38	43.72	0.8%
Nikkei 225	10378.03	194.56	1.9%
ASX 200	4,704	69.1	1.5%
COMEX Gold - Dec 09	1094.5	7.8	0.7%
COMEX Silver - Sep 09	17.18	0.15	0.9%
COMEX Copper - Sep 09	320.25	6.45	2.1%
WTI Spot	75.74	1.34	1.8%
AUD-USD	0.8801	0.0033	0.4%
Aluminium	2212.5	12	0.5%
Copper	6901	45	0.7%
Lead	2300	29	1.3%
Nickel	17955	255	1.4%
Tin	15780	-20	-0.1%
Zinc	2440	53.5	2.2%

The Dow finished unchanged as American consumers’ spending and incomes climbed in November, indicating the biggest part of the economy is poised to strengthen as the labor market recovers.  Purchases rose 0.5 percent as households took advantage of discounts on autos and electronics, figures from the Commerce Department showed today in Washington. The gain was smaller than anticipated as unseasonably warm weather depressed utility use. Another report showed new-home sales unexpectedly fell as potential buyers were discouraged by the scheduled expiration of a tax credit. The tax break was later extended.  The U.S. dollar weakened after sales of new American homes unexpectedly fell last month, spurring concern about the durability of the economic recovery. Oil surged the most in a month following a bigger-than-forecast drop in inventories, driving the Standard & Poor’s 500 Index higher.

Oil rose 3.1 percent to $76.67 a barrel in New York. The fuel’s gain helped send the S&P 500 up 0.2 percent to 1,120.59, just below the 1,120.84 level that would mark a recovery of half of the index’s 57 percent plunge between October 2007 and March 2009. The MSCI Emerging Markets Index of equities in developing nations added 1.3 percent on predictions for faster growth in China and India.  Gold prices climbed the most in a week as the dollar sank for the first time in seven days, boosting demand for precious metals as a haven.
 
To company news: AWB has told shareholders at its annual general meeting that the company is forecasting a full year 2010 profit before tax and significant items for its continuing business of between $115 million and $140 million. 
Incitec Pivot Ltd (IPL) says its results for the first quarter so far show that the businesses are performing as expected. Managing Director James Fazzino told shareholders that the company made progress across a range of areas, ensuring that it came out of the financial and market storms of 2009 better placed to weather challenges of 2010. Chairman John Watson says, based on the company’s performance in the past year, he believes the company can look to the future with confidence. Shares in Incitec Pivot closed 2.3 per cent lower at $3.40.
Billabong International Ltd (BBG) has entered into a conditional agreement to acquire a minority interest in online boardsports retailer Surfstitch with the option to acquire 100% of the business. Billabong says the price is not material and is subject to a confidentiality agreement.
Macarthur Coal (ASX:MCC) has made an all share bid for smaller rival Gloucester Coal (ASX:GCL) which values Gloucester Coal at $591.3 million. The deal would create Australia's biggest independent coal miner.
BHP Billiton (ASX:BHP) has sold its 40% stake in an undeveloped nickel mining and processing project in the southern Philippines.
 
Our market is set for a positive start today, (the market closes early at 2:10pm (AEST)), buoyed by resources firms after rises in gold, oil and metals prices, though weak U.S. home sales data may limit any gain.  Stock index futures YAPcm1 stood at 4,752, a 12.7 point premium to the 4,739.3 close in the underlying S&P/ASX 200 index .AXJO on Wednesday.  With lighter volume, our index may try to retest the 4780 resistance level with support at 4700.
 

Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.

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