What Will The UN Inspectors’ Discovery Do To Oil?
It was a
volatile day for the markets, which were hit with corporate,
economic, and political news. Stock index futures rose early on as positive
earnings results and outlooks from the likes of General
Motors
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boosted investor confidence.
Stock futures also got help from a
positive jobless claims and Philly Fed report. For the week, jobless claims fell
to 360,000 from 392,000 last week. Expectations called for a rise to 395,000.
This was also the fourth decline in five weeks. The Philly Fed regional factory
index came in at a reading of 11.2 versus expectation of 9. However gains in
stocks turned into losses after it was reported that UN inspectors found
chemical warheads in Southern Iraq. This further increases our chances of a war
with Iraq. At the close, the March S&P futures
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100 futures
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Bonds declined after the better-than-expected
economic news suggested that the economy is strengthening. However, they
recovered the majority of the day’s losses after news that UN inspectors found
11 empty chemical warheads. The March 10-year contract
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TYH3 |
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Meanwhile the 30-year contract
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actually finished up 4/32 to 110 13/32.Â
The dollar once again slipped to a
three-year low amid the increasing speculation of war. The greenback also sank
over worries that it will fail to attract foreign investors. At the close, the March
Dollar index
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Crude jumped over worries of the
continuing Venezuelan oil strike and that a war with Iraq will further disrupt
supplies. Crude broke to a new two-year high as anxieties of war are growing.
Yesterday the Department of Energy reported that supplies fell 2.3% in the week
ended Jan. 10 and are near a 27-year low. At the close, February
crude
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Gold shot up over the increasing
likelihood of war with Iraq. February gold
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gained 6.90 to 358.1 as investors seek a “safe haven” in times of
turmoil.