Rama Krishna Vadlamudi, BKC, MUMBAI October 19
, 2009 Page 3 of 8
THE DOW BALLOONED ABOVE 10,000
Powered by some good corporate results as shown above, for the first time in ayear, the Dow (DJIA 30) has pushed above 10,000 last week and has closed atad below 10,100 Monday.
The Dow has ballooned above10,000 last week for the first time ina year and is now quoting around10,100 on Monday close. It isastounding to note that the Dowhas touched 10,000 for the firsttime in its history more than 10years back in March 1999-whichmeans the Dow has not shown anyprogress in the last 10 years, whichis quite a revelation to manyinvestors. Its life-time high wasaround 14,100 achieved on October9th, 2007. Its lowest this year wasaround 6,450 on March 9
- whichmeans from its nadir of March2009, the Dow gained more than 55per cent.
This week is going to be an important week for the US markets as more than130 companies, which are part of the broader S&P 500 index, will reportresults during this week, which include 13 Dow components. The standoutsare: American Express, 3M, Microsoft, Merck, Pfizer, Coca-Cola, Yahoo,Wells Fargo, Amazon.com and eBay.
ASIAN & EUROPEAN MARKETS TOO ARE ON A ROLL
Stocks across the globe, right from Australia, Asia Pacific, South Asia to Europehave been on a roll on Monday with optimism abounding about the so-called‘Road to Recovery’ in world’s financial markets. The Hang Seng is hoveringaround 22,200; Sensex at more than 17,300 (Mumbai had a trade holiday onMonday); the FTSE 100 at close to 5,300; France’s CAC at 3,900 and Germany’sDAX at around 5,850. The world is awash with liquidity and the stock markets arecurrently reflecting that optimism. Japan’s Nikkei 225 is also on a roll due to goodearnings from exporters, such as, Honda Motors, Mitsubishi UFJ Financials andother banks.