What you need to know before you trade on Tuesday

Market move: With many enjoying the Labour Day public holiday on Monday, some investors will be surprised to learn that the S&P/ASX 200 (INDEXASX: XJO) fell 0.5%. No doubt many were expecting a positive day after a strong lead from Wall Street on Friday last week saw the Dow Jones rally 1.2%.

Company news: Amongst the biggest news from Monday was the 2.2% slide in mining giant BHP Billiton Limited’s (ASX: BHP) share price which took the stock to a 2014 calendar year low of $32.70. Other stocks to experience significant falls were gold mining stocks: Beadell Resources Ltd (ASX: BDR), Northern Star Resources Ltd (ASX: NST) and Resolute Mining Limited (ASX: RSG), which fell 12.5%, 11.4% and 11.2% respectively.

Another important development which occurred on Monday was the announcement by Telstra Corporation Ltd (ASX: TLS) regarding its $1 billion off-market share buyback. The telco released details that it had successfully completed the buy-back at a price of $4.60 per share. Investors who were keen to partake have been left disappointed however; due to the heavily oversubscribed interest Telstra has been forced to scale back tenders by 69.79%.

What to expect: If the U.S. market continues to head higher this week as futures markets are predicting, gold stocks may continue to remain under selling pressure. The weak iron ore price will also continue to play on investors’ minds which could lead to further falls in mining stocks. Meanwhile many industrial stocks could find support and play catch-up to Wall Street, should U.S. and global stocks holds their ground or move higher.

There's no need to dabble in treacherous gold and mining stocks if you know The Motley Fool's #1 ASX tech pick...

Attention investors: The market could fall or rally this week- it's anyone's guess but there is one stock which is not so beholden to the whims of the market. The Motley Fool has just released a special video report on our analysts' #1 ASX tech pick -- all about the one Australian company poised to win big from the 'cloud computing' trend. (Hint: The shares are already up over 100%!) Click here to claim your FREE copy.

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.