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Pre-Market Open Commentary for 24 July 2013
( CO. REG. NO.
199904258C )
DJIA: 15567.74 +22.19
Nasdaq Composite: 3579.97 -21.12
Good morning, fellow investors
US stock market closed mixed on a lackluster trading Tuesday as mixed
earnings report and a weak regional manufacturing report weighed on
sentiment. However, the Dow Jones Industrial average managed to hit fresh
high.
Most of the results released exceeded earnings expectations but revenue
growth was tepid. DuPont reported earnings that exceeded expectations by a
penny but weaker than expected revenue due to weaker chemical sales and
economic headwinds in Europe and Asia. The firm also announced it is
exploring selling its performance chemicals unit. The share price dipped
0.09% after an initial price spike. UPS shares dipped 0.1% after the firm
reported earnings that were in line with estimates but revenue that were
marginally below expectations even as volume grew in the US and
internationally.
After market closed, Apple reported earnings decline of 19.8% YoY to US
$7.47 per share in the third quarter results but the results were still
above expectations. Revenue improved a marginal 0.9% YoY to US$35.32 bil.
In the fourth quarter, Apple guided revenue of US$34 bil to US$37bil which
is below expectations of US$37.1bil. The share price dipped 1.7% at market
close but gained 3.9% in after-hours trading.
On the economic front, manufacturing activity in the central Atlantic
region contracted in July, falling to -11 from a downward revised 7 in
June, weighing on sentiments.
The three major US indices closed mixed with the Dow Jones Industrial
Average gaining 0.14% while the S&P 500 fell 0.19% to close at 1692.39. The
Nasdaq fell 0.59%.
There’s an influx of corporate earnings due on Wednesday and market will
pay close focus on earnings of Facebook, Boeing, Caterpillar as well as
economic reports on mortgage applications, PMI manufacturing index and new
homes sales.
Crude oil for September delivery added US$0.29 a barrel, or 0.27%, to
settle at US$107.23 a barrel.
In Singapore today:
Asian stock market advanced on Tuesday led by a market rally in the Chinese
and Hong Kong markets on growing speculation of monetary easing measures in
China to boost a slowing economy. This came following confirmation from
Chinese Premier Li Keqiang that the minimum level for growth in China would
be 7%, raising hopes of stimulus measures to support the Chinese economy
and its bottom line growth target. Sentiment was further lifted following
supportive comments from China’s vice-premier Zhang Gaoli who reiterated
the central government’s commitment to support the export and service
industry even as the economy shifts towards domestic consumption growth.
Mirroring the regional trend, Singapore shares rose 19.41 points, or 0.60%
to 3253.76. For every share that fell, 1.1 rose. Turnover was 2.2 bil
shares with a value of $1.4 bil traded.
More companies are looking to list in Singapore. The latest of which is
Lotte Shopping Co, South Korea's largest department store operator, which
is planning an initial public offering to raise at least US$1 bil and could
take place as early as 2013. Separately, private equity-backed Taiwan cable
television operator China Network Systems Co (CNS) is also looking to list
in Singapore, expected in the second half of 2013. Ahead of the proposed
listing, CNS is raising a loan of NT$40 billion (S$1.69 billion) to
restructure its debt.
Expect cautious trading on the local bourse ahead of HSBC PMI reading for
China’s manufacturing sector this morning after the June reading showed
further contraction in China’s manufacturing sector; the HSBC PMI fell to a
nine-month low of 48.2 from 49.2 in May.
1. Chartzones – 24 July 2013 (premium)
Technology Stocks [read the report]
2. Sheng Siong Group - 2Q13 results review (premium)
Target to initial e-commerce pilot project in 2H2013 [read the report
]
3. Consumer Price Developments in June 2013 (premium)
CPI-All Items inflation came in slightly higher at 1.8% y-o-y in June
[read the report]
4. Chartzones – 23 July 2013 (free)
Media, China Stocks and Technology Stocks [read the report] |
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US market closes mixed the Dow hit fresh high24/07
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24-Jul 2013 Wednesday
11:42 AM (3933 days ago)
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