- Personal/household consumer spending was unchanged in Jun 2012 [More]
- Gold Futures (Aug): $1,611/oz, down $9.20 from $1,620/oz
- Oil Futures (WTI LSC Sep – NY trading): $88.06/barrel, down $1.72 from $89.78/barrel
- 30-year: 2.55%, down 3 points from 2.58%
- 10-year: 1.47%, down 3 points from 1.50%
- 5-year: 0.59%, down 2 points from 0.61%
Share market indices
- S+P 500: 1,379 -0.43%
- DJIA: 13,009 -0.49%
- NASDAQ: 2,940 -0.21%
Tech stock news
- The Apple iPhone 5 is likely to be launched on 12 Sep 2012 [More]
- Alibaba is raising $8bn to buy back half of Yahoo’s 40% stake in Alibaba. [More]
- Following Marissa Mayer’s appointment as CEO of Yahoo, former acting CEO Ross Levinsohn, has resigned. [More]
- Facebook’s share price continues to fall, down 43% from its $38 IPO price to $21.71. Usage is down, and one advertiser has reported that 80% of the Facebook clicks it paid for came from bots [More]. One of the “biggest losers” is UBS, which reports that it lost $350m (nearly half of its Q2 profit) on its involvement in Facebook’s IPO, and blames NASDAQ for “gross mishandling” of Facebook’s listing. [More]. In after hours trading Facebook fell 6.65% to $21.61, and its partner Zynga fell 2.32% to $2.94.
Tech stock price movements
Lloyd wonders: has the social network bubble burst?
- Substantial rises (more than 2.0%)
- Substantial falls (more than 2.0%)
Thanks to Apple (again) we outperformed the market today (again). Apple is recovering from its 4.32% writedown to $574.97 last Wednesday (25 Jul 2012). Apple had disappointed analysts with its Jun 2012 earnings report, but remains one of the best plays in town. Analysts are now speculating that Apple may put its $117bn cash to use with a major acquisition [More].
The strength of the AUS is driven by demand for AAA-rated government bonds. Because Australian AAA-rated bonds have a relatively high yield (e.g. 150 basis points above similar Canadian bonds they are targeted by central banks (e.g. Switzerland, some of whose bonds have negative yields!), funds which have a requirement to invest in AAA-rated assets, and private investors (e.g. Japanese household investors). This strengthening of the AUD erodes the value of the AUD-denominated index. But today, fortunately, the AUD didn’t rise.
- Portfolio Index (USD): 1.085 +1.91%
- AUD 1.00 = USD 1.0549 -0.02%
- Portfolio Index (AUD): 1.028 +1.93%
- Apple [AAPL] $610.76 +2.64%
- Amazon [AMZN] $233.30 -1.18%
- Google [GOOG] $632.97 +0.11%
- Linkedin [LNKD] $102.65 -1.47%
- VMware [VMW] $90.76 -1.74%