Next Investors logo grey

Investors take money off the table as Dow falls for the eighth consecutive day

Published 28-MAR-2017 11:07 A.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

In the first full session’s trading since the Trump administration had to withdraw its healthcare bill, US markets and investors demonstrated substantial uncertainty falling from the previous day’s close of 20,596 points to hit an intraday low of 20,413 points, a decline of approximately 0.9%.

However, a mid-session rally resulted in the index hitting a high of 20,578 points before closing at 20,550 points, down 0.2%. While there hasn’t been a substantial sell down on any one day, there were alarming signs in early trading and it should be remembered that today marks the eighth consecutive fall in the Dow.

The NASDAQ bucked the trend, gaining 0.2% to close at 5840 points.

European markets also responded negatively with most of the heavy selling in the UK occurring in the first hour or two of trading prior to the US market opening.

The FTSE 100 fell from the previous day’s close of 7336 points to hit a low of 7256 points before closing at 7293 points, representing a decline of 0.6%.

The DAX was also down 0.6%, closing at 11,996 points. The Paris CAC 40 was relatively flat, closing at 5017 points.

Uncertainty was the common denominator in all markets and in this environment gold found support, at one stage hitting a high of US$1264 per ounce before closing at $1257 per ounce, a gain of 0.5%.

The gold story is likely to be watched closely by technical analysts, particularly given the intraday high exceeded that achieved on February 27, which was the best performance since the US elections, the line in the sand where the price started its sustained decline from circa US$1300 per ounce to US$1120 per ounce in mid-December

The oil price fell heavily in early trading, hitting a low of US$47.08 per barrel before recovering to close at US$47.80 per barrel, down 0.3%.

The iron ore price fell 4.1% to US$81.57 per tonne.

With weakness also in base metals, mining stocks are likely to come under pressure. Glencore plc and BHP Billiton plc fell 4.3% and 3.8% respectively overnight.

The Australian dollar is fetching approximately US$0.76, broadly in line with the previous day.

It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.