Wall Streets Worst Day In Weeks
January 22nd, 2010 by Bryden Elssmann
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,389.88 | -213.27 | -2.0% |
| NASDAQ | 2,265.70 | -25.55 | -1.1% |
| S P 500 | 1,116.48 | -21.56 | -1.9% |
| FTSE 100 | 5,335.10 | -85.7 | -1.6% |
| Nikkei 225 | 10,868.41 | 130.89 | 1.2% |
| ASX 200 | 4,827.00 | -41 | -0.8% |
| COMEX Gold - Dec 09 | 1,103.00 | -9.6 | -0.9% |
| COMEX Silver - Sep 09 | 17.595 | -0.285 | -1.6% |
| COMEX Copper - Sep 09 | 330.5 | -5 | -1.5% |
| WTI Spot | 75.86 | -1.76 | -2.3% |
| AUD-USD | 0.8998 | -0.0104 | -1.1% |
| Aluminium | 2,254.00 | 10.5 | 0.5% |
| Copper | 7,446.00 | 4 | 0.1% |
| Lead | 2,405.50 | -15 | -0.6% |
| Nickel | 18,985.00 | 340 | 1.8% |
| Tin | 17,950.00 | 320 | 1.8% |
| Zinc | 2,468.50 | 10 | 0.4% |
Stocks tumbled on Wall Street after the Obama administration announced a proposal to increase regulation of the nations biggest financial firms, including limiting the size and scope of their trading operations. Obama called for greater government regulation of the nation’s biggest financial institutions, including limiting commercial banks ability to make high-risk trades and stopping them from owning or investing in hedge funds. This would separate commercial and investment banks, a throwback to a Depression-era law.
The Dow Jones fell 213 points, or 2% while the S&P 500 slid 21 points, or 1.9%, the biggest one day decline since October 09.
Stocks fell as lingering worries about China’s lending practices hit commodities and the broader market. Reports showing a rise in jobless claims and a drop in manufacturing activity added to the pressure, overshadowing Goldman Sachs’ better –than-expected profit report.
Commodities were under pressure because of China’s curb in spending, with China being Australia’s largest buyer of commodities. China has asked banks to slow the pace of lending this year in an attempt to get ahead of inflation. Resource stocks, BHP, RIO and FMG are likely to open lower today, keep an eye on FMG as it may find support around $4.60 with a potential buy/write for February.
In economic news today, Woodside Petroleum (WPL), Oil Search (OSH), Beach Energy (BPT), Lihir Gold (LGL) and Macarthur Coal (MCC) are all expected to release December-quarter production reports.
The Aussie market has opened lower with the index testing the 4700 level. We believe the fall, especially in the Resource sector, is overdone and would be looking to buy into this market very shortly.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
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