Proactive Investors - Run By Investors For Investors

Wall Street in half-hearted rally


After suffering is biggest one-day decline since November 2011 yesterday, Wall Street’s sharks are back in the market paying lower prices for the shares they dumped.

Remarks from Fed chairman Ben Bernanke about a possible tapering of the US bond buying programme sent global markets into a tailspin.

“Bad indigestion of the Fed update worsened to pretty much a choking as Bernanke’s life-after-QE3 buffet went down the wrong way, in almost all assets, almost everywhere,” said Mike van Dulken, head of research at Accendo Markets, fresh from completing his reading of the Bumper Manual of Strained Metaphors.

“As expected, the suggestion of stimulus withdrawal ‘if the macro data warranted’ saw a return of the ‘good data is bad, bad data is good’ relationship after better US data,” the CFD trading firm’s mouthpiece said.

Adding extra spice to today’s proceedings is that today is “quadruple witching” hour when numerous derivatives contracts expire.

The Dow Jones is up 65 at 14,824 while the broader-based S&P 500 is up 9 at 1,597. The tech-heavy NASDAQ Composite is 3 to the good at 3,367.

It is not quite a clean sweep for the bulls, however, with business software firm Oracle taking a shellacking after results released last night disappointed the market.

Social networking company Facebook has been “liked” by UBS, which has upgraded the stock to ‘buy’.

In the UK, around two-thirds of the top share index’s constituents are enjoying a spell in the sun, with Bunzl (LON:BNZL), BT (LON:BT.A) and CRH (LON:CRH) leading the charge.

Silver miner Fresnillo (LON:FRES) remains under intense pressure, adding another 46.5p to yesterday’s heavy losses, at 914p.

After yesterday’s plummet, the Footsie is not exactly soaring, with a 16 point rise at 6,175. It is faring better, however, than the FTSE 250; the mid-cap index is down 14 at 13,54.

On the mid cap index, the smallest of Britain’s ‘big four’ telecoms TalkTalk (LON:TALK) dialled 7% lower as Citi suggested BT’s (LON:BT.A) new free Premier League offering could tempt its broadband customers away.

Citi believes selling TalkTalk shares and buying BT is the way forward for investors. BT shares dialled up 2.2% on the write-up.

Afren (LON:AFR) lost 2% as it downgraded in Jefferies’ comprehensive round-up of oil E&P investment opportunities.

Ascent Resources (LON:AST) climbed to the summit of AIM, up 24%, with strong volumes of the stock being traded.

Amur Minerals (LON:AMC) shares rose on Friday as its Kun Manie nickel deposit in Russia grabbed the attention of the investor world. SP Angel’s John Meyer picked up on the 4% share price rise and put it down to “new trade and expectations for a positive field season”.

The gold price regained a few cents of yesterday’s losses, meaning some respite for Goldstone Resources (LON:GRL), up 5.6%, Vatukoula Gold Mines (LON:VGM), up 5% as it completed a £4.5mln share subscription, and Orogen Gold (LON:ORE), which lifted 5.5%.

Shanta Gold (LON:SHG) is also on the up, rising 1.1% after it protected future revenues from a volatile gold price with more forward sales of gold from its New Luika mine in Tanzania.

Medusa Mining (LON:MML, ASX:MML) lost 3% as some light was shed on its recent share price fall. The company revealed that the company in charge of upgrading the mill at its Co-O gold mine in the Philippines has gone into administration.

View full ADM-A profile View Profile

Archer Daniels Midland Timeline

July 31 2012

Related Articles

Logging truck
April 05 2018
The company has begun funding several opportunities and is expecting a rapid return on investment

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use