Bull session in the US equity markets today. At 8:20pm GMT the Dow Jones Industrial Average is up 0.8% at 15108, the technology index Nasdaq is up 0.79% at 3471 and the broader S&P500 index is up 0.78% at 1627.96.
Yesterday the US equity markets were closed for Independence day and equities seem to be catching up today, also lifted by extremely good Non-farm Payroll numbers published at 1:30om GMT and well above the expectations. The US have created 196k jobs this week. The unemployment has resorted at 7.6% as expected.
Following those statistics we have seen a massive decline of the GBP and EUR against the USD, a parallel decline of precious metals, with Gold futures down pretty much 3% around $1215 an ounce, Silver futures down nearly 5% at $18.78, Copper futures down 3.2% at 3.0730.
The US equity markets have recovered very well in the last 2 weeks after the decline that followed the comments from Ben Bernanke and triggering a massive sell-off 3 weeks ago. We believe that the long-term trend for equities is definitely to the upside but some trouble may be ahead short-term as central banks shrink their balance sheets.
On the side of the winners today we have Abercrombie and Fitch, yet again up 3.7% at $17.04, Morgan Stanley up 2.4% at $24.62 and Agilent technologies up 2.46% at $44.23. On the side of the losers we have New-Mont Mining Corp, down 5.79% at $27.34 and seemingly following the sharp decline observed on Gold today. Also down, the personal computers giant Dell, down 3.23% at $12.88.
Charts of the Day
The charts of the day are daily and weekly frequency charts on Dell. We see that the stock has gapped down mid of April from $14 and jumping down to nearly $13 in a couple of sessions. Dell is now below $13 a share and it is possible to see the share price come back down towards lower level, with the historical strong support around $10 as we can see on the weekly chart, and after a rally since last November propelling the stock price from around $8.5 to pretty much $14.5 at the beginning of April.