• Home ::
• Fundamental ::
• Market View ::
• The Dow Futures Report

• Send
• Print
• Add To
• Rss

The Dow Futures Report

1551da18-b80b-44ed-9123-13243f13f688

5

0

US Equities rally from lows, led by financials, consumer products

Thu, Apr 16 2009, 06:00 GMT
by Paul Brittain

Alaron

US EQUITIES RALLY FROM LOWS, LED BY FINANCIALS, CONSUMER PRODUCTS. GOVERNMENT ANNOUNCES BANK STRESS TESTS RESULTS IN MAY, REMOVING UNCERTAINTY.

US Equities recovered from overnight lows spurred by a pullback in technologies after Intel reported a larger than expected drop in profit due to slowing chip demand and UBS announced a significant 1st quarter loss and job cuts. . The markets remained under pressure through the overnight and into most of the early session. Support levels in the S&P and Dow held relatively firm and allowed for positive sentiment to grab hold of the market, pushing the major indices to close near their highs of the session.

Rising confidence in the homebuilding sector by professionals prompted the sector to post double digit gains in the afternoon while the consumer products sector received another control cost led earnings surprise. Proctor & Gamble beat analyst’s expectations and announced an increase in its dividend payout (Yes- A dividend INCREASE!). Support from these sectors also helped to boost the financial sector. American Express was the largest gainer on reports that the company was seeing a slowdown of late payments on its charge cards. Banks were also support by an announcement that the “stress tests” being performed by the US government to determine solvency. Markets took heart from the fact that a time frame appears to be setting up where financial institutions will know their fates and should begin developing models to get back to the “business of business” Technology stocks remained under pressure throughout the session after the Intel announcement and were the worst performers of the session. However the sector did close off its lows.

Technical indicators for the June Dow contract offered little change as the markets remain within range bound. Support has reset somewhat higher at 7720, with 7502 as a significant level of support. Initial resistance should be found at 8035, with a break of this level setting up a test of 8160.

Published on  Thu, Apr 16 2009, 10:53 GMT