What Kept Equities From Following Through On The Upside Today?
Stocks finished well off their
highs for the day while treasuries started off on a weak tone in overnight
trading after a Fed Governor indicated that deflation was not really a
threat–at least not in the short run.
Equities
Equities surged after the ISM manufacturing index
posted a better than expected 49.4–with the closely watched new orders
component rose by 6.7 points to 51.9, indicating expansion. However, lack of
follow through (most likely due to the risks associated with President Bush’sÂ
trip to an insecure Middle East) gave way to technical selling around key
resistance levels. The Nasdaq future
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up 4.90 to finish at 968.20,
and the Dow
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Fixed Income
Although Treasuries closed above their lows for
the session, they were unable to make it into positive price territory. Comments
by a Federal Reserve Official about waning deflationary threats and better
economic data weighed on the governments securities for the entire session. The 10 year futures contract
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down -155 to close at 118-185; the 30 year
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was down -30 at 119-18; and the five year note was down 090 at 116-055
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Metals
July gold
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at 366.00;
silver
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to be bolstered by improving US manufacturing sentiment and insatiable Chinese
demand, and copper was up .75 at 79.00
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up .0065 to close at .6660.
Energy
June crude continued higher today as a result
continued buying on the back of Friday’s lower than expected gasoline
inventories–especially since we are on the eve of the busy summer driving
season. July crude was up 1.15 cents to close at 30.71
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was up by .161 to
close at 6.412
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Currencies
The dollar was higher against the euro but weaker
against the yen due to the euro/yen cross selling. The USD index
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up by .15 and
finished at 93.46.