Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : A to Z Junior Mining Research Site -- Ignore unavailable to you. Want to Upgrade?

To: 4figureau who wrote (883)	8/7/2002 6:27:54 PM
From: 4figureau	Read Replies (1) \| Respond to of 5423

Wednesday, August 7, 2002 Market WrapUp >>Other news prompting the rally in gold today was Newmont Mining’s announcement that they have cut their hedge book by buying back an additional half a million ounces, prompting many to believe the mining companies foresee the price of gold reaching the $375-$400 an ounce level.<< Gold Shines, again! Right out of the gate this morning Gold prices began its climb, and by the close the precious metal finished up $8.80, to $316.10 an ounce. Today’s sudden rise was attributed to several factors, including the interest rate outlook and an overvalued dollar. In the case of interest rates, as long as investment banks continue to forecast lower rates, the prospects for higher inflation increase. In respect to the dollar’s effect, foreign money flowed into the U.S. markets as it peaked, strengthening the dollar. Now as the market has retreated, foreign money is down 10%. As foreign investment dwindles the dollar will continue to lose its strength, thus boosting gold just as we saw between 1985 and 1987. Other news prompting the rally in gold today was Newmont Mining’s announcement that they have cut their hedge book by buying back an additional half a million ounces, prompting many to believe the mining companies foresee the price of gold reaching the $375-$400 an ounce level. Newmont also released their second quarter financial summary today, announcing revenues that rose 67% with net income of 16 cents a share, beating Wall Street’s expectations by 2 cents. Intervene, again? The Dow Jones Industrial Average once again took on the shape of an amusement ride at Six Flags™. Opening strong to the upside on Cisco’s earnings release from yesterday, the index quickly retreated and spent most of the day hovering around the breakeven point. However, as the trading session approached the last hour of the day, some large buyers came in and began buying Index participants such as GE, Microsoft and Boeing. By the time the bell rang, The Dow Jones Industrial Average rose 182.06, or 2.2% to 8456.15, as 26 of its 30 members gained. The Standard & Poor's 500 Index climbed 17.20, or 2% to 876.77. The Nasdaq Composite Index added 21.35, or 1.7% to 1280.90. More than three stocks rose for every two that fell on the New York Stock Exchange, while advancing and declining stocks were about even on the Nasdaq Stock Market. Some 1.48 billion shares traded on the Big Board, 6% below the three-month daily average. From the, "Oh by the way file" Subodah Kumar, portfolio strategist at CIBC World Markets, lowered his year-end S&P 500 target from 1,375 to 1,250. Way to go Mr. Kumar!!! Does that mean we should go long the S&P now? Overseas Market European stocks such as Credit Suisse, Allianz and Suez dropped as evidence of weaker economic growth prompted some investors to sell shares after the Dow Jones Stoxx 50 Index had its second biggest rally this year. The Stoxx 50 closed 1.7% lower, paring yesterday's 5.1% surge. The index rose as much as 2.3% before the Bank of England reduced its forecast for economic growth and German manufacturing orders fell more than expected in July. Benchmark indexes retreated in seven of Europe's eight biggest share markets. Asian stocks rose, giving Japan's Nikkei 225 Stock Average its biggest gain in six weeks, on optimism that the U.S. Federal Reserve will lower interest rates and after Cisco Systems Inc. posted higher-than-expected earnings. The Nikkei rose 3.5% to 9834.40. Sony Corp. led gains. Taiwan's TWSE Index surged 3.3%, its largest rise in a month. Taiwan Semiconductor Manufacturing Co. contributed almost a fifth to the advance. Hong Kong's Hang Seng Index rose 2.9%, its biggest gain in six months. Treasury Market The 10-year Treasury note rose 1/8 to reach 104 10/32 for a yield of 4.315% while the 30-year government bond gained 3/32 to 102 7/32, yielding 5.22%. © Copyright Scott Middleton, August 7, 2002 financialsense.com