Oct 06
2
US Morning call
Third quarter
A retrospective look at the 2006 third quarter today has seen widespread optimism for global holdings since the summer’s earlier dip.
There is speculation that the third quarter stock bounce-back will put global offerings on track for a record by the end of the year.
Global stock indexes are also showing six-year highs following a May/June dip, which saw many companies postpone their offerings.
The US Standard & Poor 500 Index has seen a 9.2 per cent advance since its year low of June 13 – hailed as the best September figure since 1998.
The Nasdaq’s Composite Index showed a 3.98 per cent rise in the third quarter, largely mobilised since mid-July.
Dow Jones
Despite the industrial average championing its intraday trading closing high several times last week, the blue-chip index finished at 11,679.07 on Friday – lower than it’s record closing high of 11,722.98.
The reaction has been to steady speculation of a fresh climb, with analysts now waiting on further proof of sustained high levels.
Oil
It is oil prices that are really expected to set the agenda this week for US trading, particularly during the first-half, which will be lean on company releases.
The data scarcity is partly due to the Jewish celebration of Yom Kippur today – the most sombre day of Judaism’s calendar.
Oil prices continue to fall from July’s high of $78.40 a barrel and closed below $63 on Friday. However, analysts are upbeat about a possible rise.
Gambling
Online gaming stocks are set to dive today, following new US legislation to prevent banks and lenders from processing payments to online casinos – the Unlawful Internet Gambling Enforcement Act.
“Nasdaq is likely to be sold short amidst the disastrous news hitting the online gaming stocks, 888.com, partygaming and empire poker all have losses of over 50 per cent this morning,” commented Greg Secker.
“It is anticipated that the bill will be signed in the next two weeks, which makes it unlawful for credit card companies to collect payments from online gaming sites – thus removing all dollar denominated revenues.”
October
Known as the “jinx month”, caution may be seen across the board, despite the third-quarter buoyancy
