Dow takes a breather as stunning debut by Snap.Inc. steals the show

Published 03-MAR-2017 10:46 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

Some called it a breather, others a reality check, but regardless of the terminology most market commentators saw the 0.5% retracement in the Dow as a healthy development. The index closed at 21,002 points, down from the previous day’s all-time record close of 21,115 points.

There was also selling across the NASDAQ as it fell 0.7% to close at 5861 points.

From a stock specific perspective there were two key developments, one being the highly successful Snap.Inc. IPO, which opened up 40% and kept running.

However, the news wasn’t so good for Caterpillar Inc. as its shares slumped following an announcement that it was under investigation by the Internal Revenue service, the Commerce Department and the Federal Deposit Insurance Corp.

The company’s shares have traded strongly over the last six months on the back of an anticipated uptick in demand for heavy machinery resulting from increased global mining activity and infrastructure development in the US under the Trump administration.

European markets were flat with the FTSE 100 relatively unchanged and falls of less than 0.1% in the DAX and the Paris CAC 40.

Some of the big moves were on the commodities front as oil fell 2.2% to finish at US$52.66 per barrel.

Gold also came off substantially, declining 1.2% to close at US$1235 per ounce.

However, the sharp decline in the Australian dollar from circa US$0.767 to US$0.757, a fall of 1.3% will be welcomed by Australian gold producers. Taking into account the currency impact, the Australian dollar gold price has actually increased in the last 24 hours.

Base metals took a big hit overnight with copper falling more than 1% to finish at US$2.69 per pound.

Nickel fell approximately 2% to US$4.85 per pound.

Zinc retraced to an early February low of circa US$1.26 per pound. Lead also came off more than 2% to close at US$1.02 per pound.

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.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X