Jan 13, 2012

Stock recommendations today

A late-session rally in industrial and basic materials stocks offset losses seen across the energy sector, lifting the markets into positive territory on the day.
The Dow Jones Industrial Average, as quoted by foxbusiness.com gained 21.6 points, or 0.17%, to 12471, the S&P 500 rose 3 points, or 0.23%, to 1296 and the Nasdaq Composite rose 13.9 points, or 0.51%, to 2725.
Market participants parsed through a slew of European and economic developments on Thursday.
Spain sold double its target of paper maturing in 2015 and 2016 at an auction as investors began moving back into the weakened debt. The yield on the 2015 bonds fell to 3.384% from 5.187% at a similar auction in December. Italy also sold one-year bills at half the yield from an offering last month ahead of a more closely-watched auction of longer-term debt on Friday.
After the auction, Italy's borrowing costs on private markets dropped as well, falling to 6.72%, beneath the 7% mark it had been trading at earlier in the week.
Borrowing costs have been closely eyed by market participants as worries have mounted major that European countries, like Italy and Spain, will have difficulty refinancing their debt this year. In the past, smaller countries have gotten locked out of private borrowing markets, necessitating bailouts.
The European Central Bank held its main refinancing rate at 1% following two straight months of cuts. The ECB has been working to keep the European economy afloat while also keeping inflation in check. The Bank of England also said it will keep its benchmark interest rate at 0.5% and left its asset-buying program unchanged. Both moves were widely anticipated by market participants.
The euro rose 0.89% to $1.2819, while the U.S. dollar fell 0.52% against a basket of six world currencies.
On the U.S. front, retail sales rose at a pace of 0.1% in December from the month prior, weaker than the 0.3% gain economists forecast. The weakest parts of the report were non-store retailers, electronics stores and general merchandise stores, which were somewhat offset by substantial gains in auto and building material sales. New claims for unemployment benefits rose to 399,000 last week from an upwardly revised 375,000 the week prior. Economists were expecting a smaller rise to 375,000 from an initially reported 372,000. Last week, the monthly employment report showed the unemployment rate falling to 8.5% as the economy added 200,000 jobs in December as the labor market has slowly improved following steep job losses during the recession.
How about Indonesia stock market today? Bisnis Indonesia provides recommendations from several brokerages.

Panion Sekuritas:
Jakarta Composite Index (JCI) today is estimated to be mixed with uptrend position. A range of support-resistance may be within the range of 3,873-3,935.

e-Trading Securities:
The JCI today is predicted to move in the range of 3,848-3,954 with several stocks to watch: AALI and BKSL. Technically, candlestick of the JCI forms a pattern of doji in the upper bollinger band with stochastic indicator of deathcross in overbought area. 

Sinarmas Sekuritas:
Technically, the JCI may be mixed within the range of 3,875-3,930. Several stocks to watch for day trading: AALI, UNVR, MYOR, and BSDE. 

Minna Padi Investama:
The index may move sideway with the support level of 3,866. Be careful on further correction during the week end. Several stocks to monitor: BJBR, MDLN, and BBNI.

Disclosure: No position at the stock mentioned above.

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