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.
