Wall Street flat amid mixed reaction to bail-out

June 10th, 2009  by Lawrence Grasso

Closing Data

	current	change	%
Dow Jones	8763.06	-1.43	-0.0%
NASDAQ	1860.13	17.73	1.0%
S P 500	942.43	3.29	0.4%
FTSE 100	4404.79	-0.43	-0.0%
Nikkei 225	9786.82	-78.81	-0.8%
SPI Futures	3960	16	0.4%
All Ords	3,933.60	-35.4	-0.9%
Oil	49.67	1.18	2.4%
Gold	954.7	2.2	0.2%
Silver	15.14	0.185	1.2%
Aluminium	1599	28	1.8%
Copper	5047	111	2.2%
Lead	1690	74	4.6%
Nickel	14650	325	2.3%
Tin	15150	475	3.2%
Zinc	1564.5	44	2.9%

The Dow Jones Industrial Average shed 1.43 points, or 0.02%, to 8763.06. Investors appeared doubtful the 10 big US banks will be able to repay $68 billion of government money, dampening Wall Street's mood.  It would seem investors believe the money could be put to better use elsewhere in the economy.
In stock news, Texas Instruments (+6.3%), the second-largest US chipmaker, raised its second-quarter sales and profit forecasts as demand improved for wireless semiconductors. The gains in Texas Instruments spread to other large chip makers, including Intel (+3.1%) and Advanced Micro Devices (+3.0%); the Philadelphia Semiconductor index rose 4.5%.

General Motors shares gained about 24% following news that former AT&T chief Ed Whitacre will be GM's new CEO, succeeding Kent Kresa. Kresa will remain interim chairman until GM emerges from bankruptcy protection. Meanwhile, Italy's Fiat and Chrysler urged the Supreme Court to approve the deal quickly. Fiat has said it will not walk away from the deal. The deadline for the deal is June 15.

A weaker US dollar boosted metal prices, which lifted mining shares: Rio Tinto (+0.9), Xstrata (+1.8%), Kazakhmys (+1.4%), Eurasian Natural Resources (+3.4%) and Vedanta Resources (+2.3%). BP and Tullow Oil put on 0.9% to 4%, respectively, as crude prices traded above $70 a barrel.
The collapse of one of Germany's biggest retailers could also add a note of caution.
Crude oil rose above $70 a barrel and gasoline climbed to an eight-month high as the greenback fell, bolstering the appeal of energy as an alternative investment.
Copper prices gained the most in a week on a weaker US dollar and as auto sales surged in China.

Australian shares are expected to open higher on Wednesday, lifted by resources and energy firms on higher prices for metals and oil, though lingering concerns over the global economic recovery could cap gains. BHP and RIO should bounce back quite nicely today, look for between 2%-4% on the up side.

STO

Santos Ltd, has begun talks with Korean buyers about the sale of a potential stake in its Gladstone liquefied natural gas project. Korea Gas Corp is in the initial stage of sales negotiations with Santos. Santos has flagged it plans to reduce its 60 percent stake in the project to 51 percent.

KZL

Australian copper, zinc and lead miner Kagara Ltd could launch a $200 million placement and rights issue as early as later Wednesday. The issue, to be underwritten by China's Guangdong Rising Asset Management, is expected to be priced at 60 cents a share and could raise up to $210 million.

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