Jan 31, 2013
The market is down 18 breaking a ten-day run of gains not seen since 2003. SFE Futures were down 5 this morning. US market down 44. The Dow was down 57 at worst and up 12 at best on more mixed economic data and company earnings. Nine of the ten S&P500 sectors finished down. The Advance US fourth quarter GDP number came in at -0.1% for the December quarter. The fall was mostly driven by a 22.2% fall in defense spending and Hurricane Sandy disruption. The ADP survey of private payrolls saw 192,000 new jobs created in January. Ahead of the 165,000 expected. Facebook down 1.89% on late results. Research in Motion changes their name to Blackberry and fell 12% on two new product releases that fell flat. The Fed's QE program continues unchanged (US$85 billion a month) suggesting again that there is little improvement in economic risk -- market had expected the Fed to hint at reigning it back mid year but instead said they will need a substantial improvement in the jobs market first -- they talked about it improving modestly at the moment. Gold up $15. Bit of relief for the sector which is down 22.2% since October last year. Iron ore up $1 to $149.40. ANZ forecasts a fall to an average $140 this quarter on selling running into the Chinese New Year. The Italian market fell 3.36% on a profit warning from European oil giant Saipem which fell 34% and worried the oil and gas sector. Japanese stock market just hit a 33-month high. Nikkei up 2.3% yesterday. Japanese Yen hit a 32 month high versus the US$. Spanish GDP fell 0.7%.