Wall Street Update and Outlook
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Previous close
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Chg
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% chg
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DOW
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11,010.34
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3.86
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0.04%
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Nasdaq
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2,402.33
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0.42
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0.02%
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S&P
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1,165.32
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0.17
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0.01%
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Source: Yahoo Finance
Stocks spent most of the session chopping along listlessly with modest gains until a flurry of late selling led to a flat finish.
A lack of headlines left stocks with few drivers this morning, but a modest bid helped keep the major averages in positive territory. Still, conviction appeared lacking as there was little support when stocks were tested with resistance near last week’s highs. Stocks were also backed down by the greenback’s gains — the dollar advanced 0.4% against competing currencies after the yen set another new 15-year high against it overnight.
Trade was quiet for most of the session. For some stretches it even became rather boring — for more than three hours the S&P 500 was confined to a two-point range.
Despite that, the Volatility Index (VIX) dropped more than 8% to its lowest level since late April. However, that was mostly because of a mechanical shift in the options used to calculate the VIX, rather than a calming among market participants.
The VIX was virtually unmoved by some late selling that undercut the major averages and actually took the Dow back below 11,000. A very modest bid in the final minutes helped blue chips reclaim the psychologically significant mark and made for an overall flat finish.
Trading volume on the NYSE dropped to its lowest level in one month as barely 800 million shares exchanged hands this session. That is likely owed to the combination of few trading catalysts and some traders leaving their desks for Columbus Day — The U.S. Treasury market was closed for its observance.
Personal opinion: Besides the focus on Intel’s Q3 results tonight, much attention would be on the FOMC minutes tomorrow morning. There is likely to be some volatility ahead.
Schedule of Economic News for the Day (SIN time)
07.01 am – GBP – RICS House Price Balance
08.30 am – AUD – NAB Business Confidence
04.30 am – GBP – Core CPI y/y
08.30 am – AUD – NAB Business Confidence
04.30 am – GBP – Core CPI y/y
02.00 am (Wed morning)- FOMC Meeting Minutes
Note 1: China may announce economic data on its New Loans, Foreign Direct Investment & M2 Money Supply on any day from 12th to 14th (inclusive) October.
US / Overseas Economic News
1. French industrial production was unchanged in August, Paris-based national statistics office Insee said in a report today. Output was unchanged from July, when it gained a revised 0.8%, Insee said. Economists had forecast a 0.3% increased, according to the median of 13 estimates in a Bloomberg News survey.
2. Italian industrial production rose the most in seven months in August as gains in exports more than offset weak domestic demand. Output climbed 1.6% from July, when it increased a revised 0.3%, Rome-based statistics office Istat said today. Economists had forecast a 0.1% gain in August, according to the median of 20 estimates in a Bloomberg survey.
US / Overseas Corporate News
1. After years of declining sales of phones based on Microsoft’s Windows Mobile software, the company is starting with a fresh slate — a completely new operating system for phones.
The new handsets will go up against Apple Inc.’s highly popular iPhone and the expanding number of phones running on Google Inc.’s Android operating system.
The first phone with Windows Phone 7 will be the Samsung Focus, which hits AT&T Inc. stores Nov. 8 for $200 with a two-year contract requirement, Microsoft said Monday. It will be closely followed by two more phones for AT&T, made by LG Electronics Inc. and HTC Corp., and one for T-Mobile USA, also made by HTC.
US Corporate Results Update & The Week Ahead
12 Oct after market closes Intel
13 Oct before market opens JP Morgan
14 Oct after market closes Advanced Micro Devices / Google
15 Oct before market opens General Electric / Infosys / Mattel
Asian Markets Update on Previous Close
Asian: Most Asian markets ended higher Monday, with coal and metal stocks leading Chinese markets higher while miners buoyed Australia’s benchmark index.
China’s Shanghai Composite Index gained 2.5%, while Hong Kong’s Hang Seng Index tacked on 1.2% to 23,207.31, its highest closing level since June 2008. Australia’s S&P/ASX 200 added 0.3% and South Korea’s Kospi fell 0.4%. Markets in Tokyo were closed for a public holiday.
Elsewhere in the region, New Zealand’s NZX 50 added 0.1%, Philippine shares fell 0.4%, Singapore’s Straits Times Index rose 0.3%, Indonesian shares edged up 0.1%, Thailand’s SET Index rose 1.2% and Taiwan’s Taiex lost 0.8%. India’s Sensex tacked on 0.5% in afternoon trading.
Dow Jones Industrial Average futures were up 26 points in screen trade.
STI Market Update on Previous Close and Outlook
STI: Singapore shares ended slightly higher Monday, with investors in a fairly positive mood as they awaited news about a possible stimulus plan from the U.S. Federal Reserve designed to crank up the world’s biggest economy.
The benchmark 30-share Straits Times Index rose 0.3%, or 10.07 points, to close at 3,163.41 after trading in a narrow range for most of the day. Gainers outnumbered losers 279 to 218. Volume was 2.37 billion shares, above the 1.81 billion traded Friday.
Personal opinion: Liquidity is likely to be sapped due to the two mega IPOs from Mapletree Industrial Trust and Global Logistics Properties. Some companies which traders can consider to take positions may be SPH which is going to release results today. Ezra is also likely to release results this week.
STI supports and resistances are:
Current: 3,163.41
Support 1: 3,136
Support 2: 3,122
Resistance 1: 3,196 – 3,200
Resistance 2: 3,214
SIN / Asian News
1. NA.
SIN Companies News
1. The world’s largest rig-builder Keppel Corp said on Monday its units had secured a S$341 million ($261.3 million) contract in Britain for the engineering, procurement and construction of the second phase of an Energy-From-Waste project in the United Kingdom.
2. Singapore’s Neptune Orient Lines (NOL), the world’s fifth-largest container shipping firm, said on Monday it carried six% more containers in the four weeks to Sept 17 compared with a year ago.
3. Singapore’s third largest property developer Keppel Land said it divested a one-third interest in the city-state’s Marina Bay Financial Centre Towers and Marina Bay Link Mall to its real estate trust. The deal value including rentals is about S$1.427 billion ($1.09 billion).
4. Tiger Airways said on Monday it carried 464,000 passengers in September, a 17% increase from a year earlier. The budget carrier reported that 5.6 million passengers flew with Tiger Airways from October 2009 to September 2010, a 43% increase over the previous 12 months.
SIN Technical Highlights*
1. NA.
*This is to highlight stocks which are worth to look into from a technical standpoint for a small punt (i.e. with smaller gains over a shorter period of time) It involves speculation and may not meet the needs of certain clients. In addition, this strategy involves cutting loss if necessary. Thus, this mentality may not be suitable for some clients. Furthermore, entry and exit levels may change depending on market and chart conditions.
Commodities Update
Strength in dollar did little of slow commodities down today, as the CRB Commodity Index finished the day higher by +0.4%. Industrials led the charge, rallying for 2.4%. The grains sector finished with a 1.8% move to the upside, with Dec corn settling higher by 5.2% to $5.56 per bushel. Friday’s bullish USDA report helped corn futures extend their recent rally.
It was a quiet Monday for Nov crude oil, which settled lower by 0.5% to $82.21 per barrel. Nov natural gas closed off 0.9% to $3.61 per MMBtu, as it sold off into the close to end near its lows.
Dec gold gained 0.7% to finish at $1354.40 per ounce, while Dec silver rallied for 1% to close at $23.35 per ounce.
All the best for your investment and trading!
*This news update was delayed. It was sent out to my clients in the morning.
Disclaimer
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