Thursday, September 02, 2010

Market Update - 1 Sep 2010

Dear friends,

The US Market surged about 3% on 1 Sep 2010 on the positive note from the ISM (The Institute for Supply Management) index released on 1 Sep 2010 and the Consumer Confidence Data on 30 Aug 2010. On Wednesday, the ISM index rose to 56.3 in Aug 2010 from 55.5 in July 2010. On Tuesday, the Consumer Confidence Data, released by the Conference Board, rose to 53.5 in Aug 2010.

On Wednesday, 1 Sep 2010, the Dow Jones industrial average was up 255 points higher (2.5%) to close at 10,269, the S&P 500 rose an impressive 31 points (3%) to 1,080.

Burger King shares were up $2.41 to close at $18.86 on news of potential buyout. Apple shares rose after unveiling their new line of iPods and the new streaming Apple TV Box that will offer movie and television rentals From Disney, Netflix.

But looking at the S&P 500 chart, you'll see that the index is still below the 30 Day Moving Average (blue line). We should be cautious if the July 2010 low is breached.

The Labor Department will release the more closely followed non-farm payrolls data on Friday, 3 Sep 2010.


Tony Chai

Disclaimer : For information purposes only. Not intended as any form of stock recommendation or solicitation.