US Stocks Advance, Gold Strengthens
January 12th, 2010 by Katy Loi
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,663.99 | 45.8 | 0.4% |
| NASDAQ | 2,312.41 | -4.76 | -0.2% |
| S P 500 | 1,146.98 | 2 | 0.2% |
| FTSE 100 | 5,538.07 | 3.83 | 0.1% |
| Nikkei 225 | 10,798.32 | 116.66 | 1.1% |
| ASX 200 | 4,951.00 | 38.5 | 0.8% |
| COMEX Gold - Dec 09 | 1,151.70 | 12.8 | 1.1% |
| COMEX Silver - Sep 09 | 18.695 | 0.225 | 1.2% |
| COMEX Copper - Sep 09 | 344.5 | 4.45 | 1.3% |
| WTI Spot | 82.39 | -0.36 | -0.4% |
| AUD-USD | 0.9299 | 0.0009 | 0.1% |
| Aluminium | 2,261.50 | -45.5 | -2.0% |
| Copper | 7,446.00 | -148 | -1.9% |
| Lead | 2,524.00 | -67 | -2.6% |
| Nickel | 18,125.00 | -625 | -3.3% |
| Tin | 17,415.00 | -265 | -1.5% |
| Zinc | 2,529.00 | -105.5 | -4.0% |
U.S. stocks advanced, sending the Standard & Poors 500 Index higher for a sixth day, as record Chinese imports added to evidence that the global economy is gathering pace. Alcoa, the biggest U.S. aluminum producer, missed the average analyst estimate. Alcoa Inc posted a narrower fourth-quarter loss on Monday as aluminum prices inched up, but the result fell short of expectations and its shares dropped more than 6% in after-hours trade. Alcoa said the net loss was US$277-million, or 28 cents per share, compared with a loss of US$1.19-billion, or US$1.49 per share, in the fourth quarter of 2008.
"The top-line numbers are significantly better than expected, but the bottom-line numbers are worse than expected," said Stephen Massocca, managing director of Wedbush Morgan in San Francisco. "The headline number is a little bit disappointing, but as you dig in a little bit deeper it looks as though there is some improvements. It looks like the company is on track to meet many of their (financial) objectives," said Brian Hicks, co-manager of US Global Investors global resources fund.
Gold for February delivery ended at $1,151.40 an ounce, up $12.50, or 1.1%, on the Comex division of the New York Mercantile Exchange. Among other metals, copper for March delivery rose 4 cents to $3.44 a pound. March silver rose 23 cents, or 1.2%, to $18.70 an ounce. Crude-oil futures lost early gains as traders keyed on forecasts for warmer temperatures. Oil and gold had both received early support from a report showing a jump in Chinese oil and iron-ore demand last month. "The positive economic news out of China following the poor U.S. jobs number on Friday led to a surge in the oil and commodity prices and a fall in the dollar, and this led to gold's strength," analysts at GoldCore said in a note.
Our market looks to open up today with a strong close on the SPI futures in the last hour of trading this morning. Gold and resources look to strengthen on the back of Gold price overnight which could potentially see our index break 5000. The market is supported at the 4920 level – today we may see 35 points to the upside at 4975.
**Buy writes to consider for February expiry – WPL and MQG .
Selling a WPL call out to February at a strike of $51.11 will bring around 85 cents in premium income (contract size is 1008), in additional to their potential dividend of 55 cents on the 23rd of February. Giving the stock a couple of dollars to move on the upside will reduce the risk of getting exercised. If it does get exercised, the return will be around 2.9% or $1492.
For MQG, selling at $50.00 Feb call will bring in $1.41 in premium if it expires worthless (2.67%) and 2.63% if MQG rallies and the call is exercised (contact size is 1000). MQG has reportedly joined together with Canadian Pension Plan and Abu Dhabi Investment Authority to bid for a UK electricity network.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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