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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10,829.68
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41.63
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0.39%
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Nasdaq
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2,370.75
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2.13
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0.09%
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S&P
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1,146.24
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5.04
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0.44%
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Source: Yahoo Finance
The major indices settled with slight losses after a week of relatively range-bound trade. Corporate news was light and economic data came in mixed, with an upside surprise to consumer spending and disappointing consumer sentiment reading.
The stock market may have ended September in lacklustre fashion, but the month’s overall return was anything but that. The S&P 500 gained 8.8%, marking the best month since April 2009 and the best September since the 1930s.
Personal opinion: VIX is at 22.50 which is almost at a five month low. S&P 500 has gained 8.8% in Sep, marking the best month since April 2009 and the best September in 71 years. So what’s next?
This week is pivotal as there are multiple market moving economic news and Aloca will kickstart Q3 results on 7 Oct. After such a huge rally, traders would be best to exercise risk management and take some profits off the table.
Schedule of Economic News for the Day (SIN time)
04.30 pm – GBP – Construction PMI
10.00 pm – USD – Pending Home Sales m/m
10.00 pm – USD – Factory orders m/m
China will be closed till next Friday. Australia is closed for today.
US / Overseas Economic News
1. The Institute for Supply Management’s purchaser manufacturing index index dropped to 54.4 in September from 56.3 the prior month, the Tempe, Arizona-based group said today. Readings greater than 50 signal growth.
2. Personal spending increased 0.4% in August for a second month, more than forecast by economists. The gain in personal spending exceeded the 0.3% increase projected by the median forecast of economists surveyed by Bloomberg News. Incomes were up 0.5%, the biggest advance this year, propelled by the resumption of extended and emergency unemployment benefits.
3. The New York Fed’s Dudley said today that the outlook for employment is “unacceptable” and that the central bank has options to add stimulus without major drawbacks. “Further action is likely to be warranted unless the economic outlook evolves in a way that makes me more confident that we will see better outcomes for both employment and inflation before too long,” Dudley, who serves as vice chairman of the Fed’s policy-setting Open Market Committee, said in a speech in New York.
Dudley’s remarks are one of the clearest signs that policy makers will start a second round of unconventional monetary easing as soon as the FOMC’s next meeting Nov. 2-3. Fed Chairman Ben S. Bernanke said yesterday that the central bank has a duty to aid the U.S. economy as the jobless rate holds near 10%.
4. The Thomson Reuters/University of Michigan final index of consumer sentiment fell to 68.2 in September from 68.9 the previous month. The gauge was projected to decline to 67, according to the median forecast in a Bloomberg survey, and compares with a preliminary reading of 66.6 issued last month.
5. Construction outlays rose 0.4% in August as an increase in government stimulus spending for public works overcame a drop in homebuilding, according to figures from the Commerce Department.
6. A gauge of manufacturing in the 16-nation euro region declined to 53.7 in September from 55.1 the previous month, London-based Markit Economics said today. A separate report showed that the region’s jobless rate stayed at 10.1% in August, the highest since June 1998
US / Overseas Corporate News
1. Cisco, the world’s largest maker of networking equipment, “saw the market returning to more normal growth rates,” he said in an interview on Bloomberg Television’s “InBusiness With Margaret Brennan.” Most chief executives Cisco talks to are projecting economic growth of 2% or less, he said, “and that means they’ll probably spend appropriately and also hire appropriately.” At the same time, “Asia’s still going strong and Europe is holding up remarkably well,” Chambers said.
US Corporate Results Update & The Week Ahead
5 Oct after market closes Yum! Brands
6 Oct before market opens Monsanto
7 Oct before market opens PepsiCo
7 Oct after market closes Alcoa
Asian Markets Update on Previous Close
Asian: Asian stock markets ended mostly higher Friday, with automobile companies powering Indian shares to their highest level since January 2008, while strong Chinese manufacturing data and hopes of further monetary easing boosted Japanese stocks.
Japan’s Nikkei Stock Average ended up 0.4%, Australia’s S&P/ASX 200 slipped 0.1%, South Korea’s Kospi rose 0.2% and Taiwan’s Taiex edged up 0.1%.
In afternoon trading, India’s Sensex jumped 1.5% to 20,364.92, on course for its highest finish since early 2008, while Singapore’s Straits Times Index gained 1.1%. Hong Kong and China markets were closed for the National Day holiday.
Dow Jones Industrial Average futures were up 25 points in screen trade.
STI Market Update on Previous Close and Outlook
STI: Singapore shares began the month on a stronger note, tracking gains in most Asian bourses as positive Chinese data lifted appetite for riskier assets.
The benchmark Straits Times Index on Friday closed 33.27 points, or 1.1%, higher at 3,130.90, with gainers outnumbering losers 370 to 121. In the broader market, 1.77 billion shares changed hands compared with 1.65 billion Thursday
Personal opinion: This week is filled with daily market moving data from the U.S.; BOJ / BOE / ECB meeting; commencement of 3Q results release by Alcoa on 7 Oct. There should be ample opportunities for the nimble trader.
STI supports and resistances are:
Current: 3,130.90
Support 1: 3,125
Support 2: 3,086
Support 3: 3,076
Resistance 1: 3,146
Resistance 2: 3,187-3,196
Resistance 3: 3,214
SIN / Asian News
1. Private residential property prices rose 3.1% in the July-to-September period, down from 5.3% growth in the second quarter, the Urban Redevelopment Authority said Friday. Real estate prices are at their highest level since the government began the index in 1975. Prices of public housing apartments, where about 80% of Singaporeans live, rose 4% last quarter.
2. Kwa Geok Choo, the wife of former Singapore prime minister Lee Kuan Yew, has died at the age of 89, Singapore broadcast media reported Saturday. The ChannelNewsAsia report said Kwa died at her home at 0940 GMT on Saturday. She was also the mother of Singapore’s current prime minister, Lee Hsien Loong.
3. China’s official manufacturing Purchasing Managers’ Index for September improved to 53.8, compared with 51.7 in August. That helped ease worries of a potential slowdown in the economic juggernaut, reinforcing the view after this week’s private sector HSBC PMI showed a steady expansion from August.
SIN Companies News
NA.
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
Gold futures climbed to another record on investor demand for an alternative to the slumping dollar. Gold reached an all-time high of $1,322 an ounce. Since Sept. 14, the metal has climbed to a record in 11 sessions. Gold futures for December delivery rose $8.20, or 0.6 percent, to close at $1,316.10, capping a more than 1% gain for this week. In the third quarter, the metal rose approximately 5%, the eighth straight gain. Silver extended a rally to a 30-year high.
Oil surged $1.61 to settle at $81.58 on Oct. 1, the highest close since Aug. 5, capping the biggest weekly gain since February after economic data from the U.S. and China bolstered optimism that demand is growing in the world’s two largest energy- consuming countries.
All the best for your investment and trading!
P.S: This news update is delayed for a few hours.
Disclaimer
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