ASX opens flat, Dow sprints to the finish line

About Latest Posts Motley Fool StaffThe articles listed on this page are compiled by our team of Foolish Writers and …

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Markets have bounced around constantly over the past few days. Overnight Tuesday in the U.S. was no exception.

 

Despite a steady decline during Valentine's Day market hours, the Dow Jones Industrial Average (INDEX: ^DJI) rebounded late and surged 80 points in the last half-hour of trading. The Nasdaq (INDEX: ^IXIC) also finished higher, while the S&P 500 (INDEX: ^GSPC) , off 0.09%, just wasn't feeling the love.

Here in Australia, the S&P/ASX 200 (INDEX: ^AXJO) is largely flat, with winners like Westfield Group (ASX: WDC), Perpetual Limited (ASX: PPT) and Commonwealth Bank of Australia (ASX: CBA) being offset by losers including Primary Health Care (ASX: PRY), Aquarius Platinum Limited  (ASX: AQP) and Rio Tinto Limited (ASX: RIO).

What's the story? The Dow erased some of its early losses when Greece made amends and delivered a late but well-received bouquet of flowers in the form of austerity promises. All right, so it sounds less romantic than a candlelit dinner on the island of Santorini, but we can't get too greedy at this point. After all, Athens is currently engaged in a long-winded negotiation to right a ship that's barely staying afloat.

If anything, this tense relationship between Greece and its European neighbors will cause many more lovers' quarrels, as Greece's debts amount to one and a half times its entire economy. That's a lot of baggage, and the delicate process of rescuing this country will weigh heavily on the economies of Europe and the United States.

The U.S. economy has its own set of issues to worry about, and the Commerce Department's disclosure of retail sales was a bit of a mixed shopping bag. Despite concern that sales would dip following the holidays, January proved rather robust and helped lift major retailer Wal-Mart  (NYSE: WMT) about 0.7% on the day. However, there's still the issue of scaling down debt on the consumer front, which will remain a delicate balance going forward.

Overall, the Valentine's Day market roller-coaster resembles that of any long-term relationship. There will be some ups and downs along the way, which is why many of our investors have fallen in love with dividend stocks. Find one such ASX company in The Motley Fool's Top Stock For 2012.  The free report could match you with the best dividend stock for your portfolio, so download it now.


More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »