Will Oil Continue To Slide?
Crude oil
fell for the second straight session as OPEC may hold a meeting this
weekend to discuss raising production to curb oil prices. OPEC’s largest member,Â
Saudi Arabia, might support an increase of 1.5 to 2 million barrels a day to
make up for the shortfall from the Venezuelan oil strike. Next Tuesday also
marks OPEC’s deadline for their unofficial agreement to raise production if
crude prices held above the $28 level for 20-days, Jan. 14 would be the twentieth
day. February Crude fell 1.01 to 31.08.Â
War tensions took a back seat today as
traders focused on President Bush’s economic stimulus plan. The plan, which
would call for a reduction in tax rates, abolish double taxation of corporate
dividends, increase write offs for small businesses, increase per-child tax
credits, and extend jobless benefits, is aimed to put $670 billion into the
economy over the next 10 years in an attempt to grow the economy, create jobs,
and benefit the stock market and the dollar. The S&P futures
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finished down 2.50 to 924 after five consecutive days of gains. Meanwhile, the
March Nasdaq futures
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Treasuries ended higher today and
appear to be coming out of its recent pullback after the lackluster factory
orders report. The Commerce Department reported that Factory orders in November
fell for the third time in the last four months. The report showed that factory
orders fell 0.8% vs. expectations for a 0.7% drop. Bonds took a hit last
week after the ISM manufacturing report came in much better than expected.
Today’s report does suggest an uneven recovery. The March 30-year contract
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finished up 9/32 to 113 17/32.
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