Wall Street ignores bad news
April 2nd, 2009 by Neil Gynther
Closing Data
| current | change | % | |
|---|---|---|---|
| Dow Jones | 7761.6 | 152.68 | 2.0% |
| NASDAQ | 1551.6 | 23.01 | 1.5% |
| S P 500 | 811.08 | 13.21 | 1.7% |
| FTSE 100 | 3955.61 | 29.47 | 0.8% |
| Nikkei 225 | 8351.91 | 242.38 | 3.0% |
| SPI Futures | 3653 | 72 | 2.0% |
| All Ords | 3,527.00 | -5.1 | -0.1% |
| Oil | 48.46 | -1.21 | -2.4% |
| Gold | 927.7 | 2.7 | 0.3% |
| Silver | 12.975 | -0.01 | -0.1% |
| Aluminium | 1337 | -28.5 | -2.1% |
| Copper | 3963.5 | -71.5 | -1.8% |
| Lead | 1242 | -30 | -2.4% |
| Nickel | 9555 | 150 | 1.6% |
| Tin | 10650 | 225 | 2.2% |
| Zinc | 1261 | -39.5 | -3.0% |
Yet another day on the Dow where investors ignored the bad news and rode the market up on the good news. Better than expected readings on Housing and Manufacturing allowed the Dow to finish up 152.68 points. The NASDAQ and the broader S&P 500 were up 23.01 and 13.21 points respectively.
The market was down early as figures showed the private sector cut 742,000 jobs in March. Friday’s unemployment data will be very closely watched. I am not convinced that the strength in the US or Australian market is justified by the current state of the world’s economies. It seems to be the FOMO principle at work. The Fear Of Missing Out can be a powerful short term driver that can lead to some disappointment a little later on.
Crude Oil fell again to finish at $48.46 a barrel after inventories rose 2.84m barrels to 359.4m barrels.
Gold was $2.70 higher finishing at US$927.70 per ounce. Base metals were mixed with copper rising $22.00 to US$4025.00 per ton.
The team is working hard to identify the right timing and the best stocks for our clients to enter the market. As the Australian market will be positive today it will be a good day for those who hold shares to write calls. Cale is on leave for the rest of the week but either myself or Lawrence will be able to help you with any questions or trades.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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