Why The Media Is Talking About Natural Gas
The Dow gained 68 to 9079, the Nasdaq
rose 31 to 1634, and the S&P 500
added 10
to 976. GDP rose an annualized 1.4% in the first quarter, down from the 1.9%
estimate. Corporate profits rose 2.6% in the first quarter. Jobless claims fell
22,000 last week, to 404,000, the lowest in three months. Iraq is producing
900,000 barrels of oil per day, with a target of two million barrels daily
by the end of the year.
Bonds fell on the Fed minutes —
apparently the market interpreted the disinflation comment as bearish for bonds.
The 10-year note (TYU3) closed at 117 06, down 108, while the long bond (USU3) fell 124 to 117
03.
Natural gas (NGQ3) fell .40 to 5.41 even
as the media is talking about a severe shortage this summer.
Tight supplies combined with heavy air-conditioner
use will push up demand for gas to power generators soon. Natural gas supplies
increased at another weekly record high, but are down 29% for m a year ago. The
overall higher natural gas prices are slashing into heavily energy-dependent
businesses. Higher natural gas prices also causes electricity prices to rise, as
much an increasing amount of power is generated by burning natural gas.
The yen (JYU3) fell out of a triangle and
looks ready to drop substantially further, as the Japanese government maintains
a weak currency is crucial to the path to prosperity.
The dollar (DXU3)was stronger today despite
yesterday’s rate cut. Treasury Secretary Snow restated his agreement with
the President’s strong dollar policy. The dollar closed at 95.04, up .92.