June 22 New York
The DJIA fell by 12.74 points to 21397.29 while the S&P 500 Index declined by 1.11 points to 2434.50. The Nasdaq Composite Index rose by 2.732 points to 6236.685. U.S. stocks pared gains in late trading to end the day little changed as financial shares slumped with the yield on 10-year Treasuries falling 1.6 basis points to 2.148 percent. Crude Oil failed to hold its largest gains and settled below $43 as concernes mounted that the slump could spread. Judging from the fact that both Brent and WTI entered a bare market and that uncertainties over the production cut cooperation between Saudi Arabia and Russia remain while U.S. shale gas drillers will be active in producing shale oil amid the extension of 9 month suspension of crude oil production between OPEC and non-OPEC countries, I think Contrarian investing is worth considering if the global markets lead to further decline in crude oil prices. But Chevron /CVX (NYSE) and Exxon-Mobil/XOM (NYSE) have both secured stable income sources to keep their stock prices relatively high. So, BHP Billiton/BHP (NYSE: ADS) is a good choice. [1:05 PM June 23, New York/ CVX $105.17, XOM $81.49, BHP $34.08] A small investor like me should avoid borrowing money if possible, and I had better maintain sound financial conditions in order to avoid risk. In case of BHP, we have to check other natural resources and metals such as coking coal, iron ore and copper. In addition, BHP’s profits mainly depend on the prospects of Chinese economy. BHP is an Anglo-Australian multinational mining, metals and petroleum company headquartered in Melbourne, Australia. The S&P 500 Index traded in a narrow band, slipping in the final half hour to notch its third straight decline. Thirty-four of the largest banks operating in the U.S. cleared a Federal Reserve stress test of their ability to withstand economic shocks. Also in focus are the newly-started negotiations on Britain’s split with the European Union. WTI crude futures rose 0.5 percent to settle at $42.74 a barrel, stabilizing after falling into a bare market earlier in the week. The yen strengthened to 111.33 per dollar.
