Google Drags Markets Down

Published by Filipe R. Costa on Fri, 19/10/2012 - 12:12
google

Daily Market Commentary for October 19: A leak in Google’s results led markets down in a day investors were optimistic after the release of positive economic data.

Error, error, error again. US markets have been marked by successive errors this year. This time it was a human error. The company responsible for Google’s fillings published Google’s 3Q earnings before the scheduled time. As a result Google crashed 10% on worse than expected earnings and dragged markets down.

In the positive side, economic data showed an improvement again. The Philly FED survey expanded to 5.7, much better than expected. Initial claims rose to 388k, after an excellent report last week but it is a result of seasonal adjustments rather than a real tendency. The 4-week average continues to improve substantially.

Gold has been dragged down as macroeconomic data points to an improvement. As a hedge against QE3, gold is losing its appeal and I’m not seeing the precious metal hitting $1,900 until Christmas as many brokers and analysts have been stating thus far. I’m bearish on the metal for now, even though it can rally with a market rally but as an under performer.

Name Last price Close Price % 5-Day % YTD %
DAX (Xetra) 18/10/2012 7437.23 0.58 2.14 26.09
Nasdaq 100 Index 18/10/2012 2744.17 -1.13 0.92 20.47
S&P 500 18/10/2012 1457.34 -0.24 1.71 15.88
CAC 40 18/10/2012 3535.18 0.22 3.56 11.88
Gold (LBM) $ 18/10/2012 1743.5 -0.37 -1.51 11.27
Dow Jones Industrial Average 18/10/2012 13548.9 -0.06 1.67 10.9
FTSE MIB 18/10/2012 16185.5 -0.3 3.52 7.26
Nikkei 225 18/10/2012 8982.75 2 5.1 6.24
FTSE 100 18/10/2012 5917.05 0.1 1.5 6.19
Crude oil (Brent) Composite 18/10/2012 111.1 -1.31 -1.96 3.44
GBP/USD - US $ per £ 18/10/2012 1.6057 -0.48 0.07 3.39
EUR/USD - US$ per Euro 18/10/2012 1.3069 -0.33 1.06 0.89
EUR/GBP - £ per Euro 18/10/2012 0.8142 0.18 1.02 -2.28
IBEX 35 18/10/2012 8100.3 -0.34 4.73 -5.44
Crude oil (Light Sweet) Composite 18/10/2012 92.07 0.09 -0.42 -7