Never content to sit idle for long, the Dow Jones Industrials Average (INDEX: ^DJI) has shown big swings the last few days.
Overnight the index jumped 1.6% or 194 points. Both the S&P and Nasdaq were up big as well. Here's a look at how each fared.
|
Index |
Gain/Loss |
Gain/Loss % |
Ending Value |
|---|---|---|---|
| Dow Jones Industrial Average | +194 | +1.6% | 13,115 |
| Nasdaq | +54 | +1.8% | 3,043 |
| S&P 500 | +21 | +1.6% | 1,391 |
The Aussie dollar, ever the proxy for global risk, jumped three quarters of a U.S. cent to just below $US1.04.
Good-bye parity?
And just when you thought the Reserve Bank of Australia might cut interest rates by 50 basis points at their May 1 meeting…
The S&P/ASX 200 (INDEX: ^AXJO) and All Ordinaries (INDEX: ^AORD) are set for a strong start.
The big news
If the enthusiasm were to be distilled into two words, they'd be "Spanish relief."
After the yield on the indebted nation's bonds climbed above 6% yesterday, many investors feared the worst. But a strong showing from its 12-month and 18-month debt sales pushed the 10-year bond back below 6%.
Before declaring victory, investors would do well to watch the longer-term debt auction later in the week. A good or bad showing from the auction could easily result in another 1%-plus movement for the index.
Coca-Cola (NYSE: KO) was in the limelight in the U.S. The company's earnings report is pushed the shares higher on reports of 5% global volume growth. Today's price puts it near 14-year highs, even despite concerns about rising sugar costs depressing margins.
Outside the Dow, Apple (Nasdaq: AAPL) jumped 5%, taking the Nasdaq along for a lofty 1.8% gain for the day. Some investors looked at Apple's recent 10% pullback with fear, and called that a correction was due. It seems the company is only content squashing expectations, and answered back with a big gain for the day. Analysts have cautioned against lower iPhone sales in the second quarter, but they're stating the obvious.
Warren Buffett disclosed to Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) shareholders he'd been diagnosed with stage 1 prostate cancer, describing his condition as "not remotely life threatening or even debilitating in any meaningful way."
Here in Australia, today we have results from Bank of Queensland (ASX: BOQ), and March quarter production and exploration reports from BHP Billiton (ASX: BHP), Resolute Mining (ASX: RSG) and Perseus Mining Limited (ASX:PRU).
The best approach
A little positive news can move the market in a big way. That's why it pays to be ahead of the trend.
If you're looking to diversify your portfolio, look no further than "Secure Your Future with 3 Rock-Solid Dividend Stocks". In this free report, we've put together our best ideas for investors who are looking for solid ASX companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.
More reading
The Motley Fool's purpose is to help the world invest, better. Take Stock is The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it's still available.
