Presented by Michael Hevern
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Good morning and welcome to Cube Wrap for Friday 24th of October. I am Michael Hevern for Cube Financial.
The information provided within this presentation is general advice only and you should consult the services of a financial professional in order to ascertain whether the information is applicable to your investment strategies and risk profile. Again, it is general advice only.
DOW went for another roller coaster ride last night trading through a 500-point range and since buying was end of the session for a change. It has bounced off the lows of the last 10 days and as you can see there it is yet to break that down to end line which is on an early chart. The DOW was up 2% on the session, finishing at 8691.
Well SP500 was up 1.26 on the session, was good to say that it was buying towards the end of the session.
We saw the NASDAQ eventually down 0.7% there after having tested the very lows, Amazon and Microsoft came out with earnings, and also Microsoft leads expectations for sales and earnings, however, they did both earn of the subdued economic environment going forward which will impact their earnings. Some of the stocks of interest are GM are rumored to be looking to get more jobs and they would end it down 1.5% for the session. The Goldman Sachs actually announced the 2% cutting the job force for going forward and the stocks were down 5% for the session. Microsoft was up 5% after their earnings announcement however, they were flat after market.
Stocks meters for out market include BHP, the ADRs were down almost 3%, and RIO was flat for the session. Energy stocks did get a boost as head of the Opek meeting tonight. Chevron was up 8% and Exxon up 9% for the session.
The oil stocks index was up 6.9% and the gold stocks index was down 5% after gold being sold off since the overnight. Other stocks of interest, Newmont was down 6% for the session gold stocks today.
In the NASDAQ, we saw Apple up 1.4%, Microsoft up 4% for turning down later after market. Cisco down 1% for the session.
In the UK, we saw the energy stocks were up there this morning, so the index was down 1% overall and we saw the CAC and the DAX also down. DAX was down 1% while CAC was up 0.4% for the session.
We saw energy stocks BP, Shell and BG group were all up between 0.7% and 5% for the session. Vodafone recovered somewhat and sell off in the March few days, being up 5% as bargain hunters came in. Miners were also hit in UK with BHP, RIO, and Xstrata all down between 3% and 9% for the session. This BHP reiterated its short term demand that short term demand was faltering in the China and RIO was also noted both saying that they have cut their forecast for Chinese economic growth for 2009, to 8% to 9%. I think it was about12% previous 12 months.
In Asian markets, we saw that the NIKKEI down 2.5% after testing the lows of 2003, exposed bankers all were hit and there was a late rally, shortcoming rally in the last session of the day in Japan. We also saw Sony cut its earnings and upgrading month forecast by 57% and that is to be below the exporters over there. Nippon steel, steel maker to the market was down 2.2%. Hong Kong shares were down 3.6% and Chinese stocks were down 1% for the session.
Oil did recover overnight ahead of the OPEC meeting there, expected that the OPEC will cut the production to by 1 million barrels a day or more and that would appear positive for the price in short term at least. In December, gold was actually sold off heavily overnight. It was down over 20 dollars, closing at 714 for the session and there was the strengthening US dollar. We see that the level goes back to a breakdown level in 2007 and also was touched 2006. We would expect that all traders will be looking to for gold to be trying for the price of around 700 dollar mark level.
Silver was up 0.4%, we saw copper down 2%, lead up 2%, zinc up 5.6%, aluminum/nickel down 6.5%. Commodities mixed overnight.
In out market, SPI was down 63 points after significant buy in the last hour set of trading today on the back of the big move in the US and it did move around about 300 points in the last also. In US, out market set to follow what the US does at the moment. We are testing low yesterday for third time. We did write that level and it is noted to be very significant but out there are looking for the market to trade up above that down trending line which is as the level around that 4150 on the ASX200 which needs to be closed off in order to see changes there.
BHP and RIO and the EU reported they are going to report early next month. The objections to the RIO and BHP take over a bit and suggested that BHP will be required to divest some of their investment in order to for the deal to go head. DVB raising 1.6 billion dollars. Reuters have stated that this will be up to 60% discount to the existing price much over that that is occasional mark that Citi have come out in their target going from one target to around that dull 60 going forward.
Tancorp have said that they may be cutting their dividends going forward. That is a negative for that stock and Toyota is going to receive less royalties being down 53%, ASX will open flat today, maybe some target and is looking for opportunities with out market being sold down quite heavily this week. We remember it is Friday and we have all 3 days for the trading in.
Should you have any questions about the information provided within this presentation, please call the equities options desk or the CFD advising desk on the numbers provided on the slide, and as always trade carefully.