Greenspan Speech Extends Bond And Stock Index Rally
Fed Chairman Greenspan told a group of executives that technology helped the economy expand at a rapid clip without producing inflation. His comments helped extend Thursday’s rally in stocks and bonds which was triggered by favorable gross domestic product (GDP) and employment cost index (ECI) reports.
December T-bonds [USZ9>USZ9] rallied 1 10/32 to 113 19/32.
All three stock index futures registered on the Momentum-5 List.
December Dow futures [DJZ9>DJZ9] gained 123.0 to 10,810, S&P futures [SPZ9>SPZ9] rose 26.00 to 13756.20. NASDAQ 100 futures [NDZ9>NDZ9] rose 93.50 to 2654.00.
December dollar index futures [DXZ9>DXZ9] started out setting a 20-day high then fell .29 to 98.93. Japanese yen [JYZ9>JYZ9] rose .0083 to .9659 and British pounds [BPZ9>BPZ9] gained .0064 to 1.6448.
The energies finished mixed: unleaded gas [HUZ9>HUZ9] was the biggest point gainer, rising .0081 to .6186 and crude [CLZ9>CLZ9] rose .07 to 21.75. Heating oil [HOZ9>HOZ9] slipped slightly along with natural gas [NGZ9>NGZ9].
From the Pullback Off Lows List, December silver [SIZ9>SIZ9] tumbled in the last minutes of trading to end down 10.0 at 518.0.
The grains were subdued although the soybean complex saw some limited action: November soybeans [SF0>SF0] gained 4 3/4 to 482 3/4 and soymeal [SMZ9>SMZ9] rose 1.8 to 148.2.
Livestock contracts ended higher. Both live cattle [LCZ9>LCZ9] and November feeder cattle [FCX9>FCX9] continued moving off one-month lows. Lean hogs [LHZ9>LHZ9] gained .575 to 46.525.
Finally, December coffee [KCZ9>KCZ9] rallied 3.50 to 100.20 and sugar [SBH0>SBH0] fell .13 to 6.88.