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Pre-Market Open Commentary for 23 July 2013
( CO. REG. NO.
199904258C )
DJIA: 15545.55 +1.81
Nasdaq Composite: 3600.39 +12.78
Good morning, fellow investors
US stock market eked out small gains on a lackluster trading Monday as
mixed earnings report and weaker than expected home sales data weighed on
sentiment.
Dow component McDonald’s lost 2.7%, dragging on the Dow Jones Industrial
average, after the fast food chain reported revenue and profits that was
below expectations due to weak sales in Europe and Asia and warned that
sales will be "challenged" in 2H2013. Shares of Halliburton edged 1.6%
lower even after the oilfield services company reported stronger than
expected earnings and raised its share buyback program by US$4.3 bil.
Yahoo shares fell 4.3% to US$27.86, dragging on the S&P 500, after the
Internet company announced plans to repurchase 40 mil shares of its common
stock beneficially owned by Third Point at US$29.11 a share.
A weaker than expected housing market reading also contributed to tepid
trading. Existing home sales in June slipped 1.2% to an annual rate of
5.08mil, below expectations of 5.25 million units, suggesting that the
growth momentum in the housing market is losing some traction due to rising
mortgage rates over the past ten weeks. The weaker reading weighed on
homebuidlers, including KB Home and DR Horton.
The three major US indices edged modestly higher with the Dow Jones
Industrial Average gaining a mere 0.01% while the S&P 500 rose 0.20% to
close at a fresh high of 1695.53. The Nasdaq gained 0.36%.
On Tuesday, market will seek directions from corporate earnings,
particularly those of Apple, AT&T and UPS, as well as economic reports on
FIFA home price index and Richmond Fed manufacturing index.
Crude oil for August delivery pulled back by US$1.14 a barrel, or 1.06%, to
settle at US$106.91 a barrel as traders locked in profits from the oil
rally the previous week.
In Singapore today:
Singapore stock market had a positive start to the trading week on positive
lead from the Japanese market after Japanese Prime Minister Shinzo Abe's
victory in Sunday's upper house elections signaled potential monetary
stimulus and a mandate to press ahead with difficult economic reforms to
stimulate the Japanese economy. Sentiment was further lifted after
Singapore equities received a rating upgrade to “overweight” by a foreign
broker due to sustainable growth momentum. At closing, the STI index gained
21.09 points, or 0.66% to 3234.35. For every share that fell, 1.4 rose.
Turnover was 2.1 bil shares with a value of $1.1 bil traded.
A Swedish oil & gas exploration and production player, Rex International
Holding (Rex) launched its initial public offering (IPO) on Catalist
yesterday with 142.5 mil shares comprising a public offer of 2.5 mil shares
at 50 Scts a share, and a private placement of 140mil shares, which
according to Rex’s CEO is “fully taken up". The IPO, which is subject to an
over-allotment option of 28 mil shares and is expected to raise up to
$85.25 mil, will close at noon of July 29, 2013 and start trading on July
31, 2013.
Expect range-bound trading on the local bourse today following a lackluster
overnight close on Wall Street. Market is also expected to stay cautious
ahead of key manufacturing data from China tomorrow.
1. Chartzones – 23 July 2013 (premium)
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US market ekes out modest gains 23/07
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