Dow Futures Smoke
A highly favorable report from a Goldman Sachs analyst about the tobacco
industry sparked trader interest in smokes maker Philip Morris
(
MO |
Quote |
Chart |
News |
PowerRating). The Dow
component rallied over 9% and set the tone for a positive day in blue chip
equities and Dow
futures.
September Dow futures
(
DJU0 |
Quote |
Chart |
News |
PowerRating) tagged a three-month high before settling 113.0 higher at 11,085.0. Dow
futures have been signaling their strength by registering on the Momentum-5
and New 10-Day Highs List.
The Producer Price Index also showed no surprises
and that added fire to the rally in blue chips.
September S&P futures
(
SPU0 |
Quote |
Chart |
News |
PowerRating) edged 4.20 higher to 1478.50.
NASDAQ 100 futures
(
NDU0 |
Quote |
Chart |
News |
PowerRating) traced a double-bottom, Turtle Soup
Plus One intraday reversal just below the June 1 gap level. This move broke two days of downside momentum. Like all strong momentum moves, the Naz
futures also pulled back after their surge off the June 1 reversal area, continuing higher
out of an intraday (5-minute chart) 1-2-3-4 pullback setup. The contract
then range-traded into the close for a gain of 33.00 to 3663.50.
Bond traders focused on the retail sales report, which had logged its biggest increase in five
months. September T-bonds
(
USU0 |
Quote |
Chart |
News |
PowerRating) spiked to a new high and reversed,
allowing entry on a Turtle Soup Plus One
Sell setup before ending down 13/32 at 99 21/32. September 10-year notes
(
TYU0 |
Quote |
Chart |
News |
PowerRating)
also closed down 12/32 at 99 19/32.
Dollar index futures
(
DXU0 |
Quote |
Chart |
News |
PowerRating) had fallen off the Momentum-5 List after making
good on a Turtle Soup Plus One Thursday, but came back Friday on the PPI and
retail sales reports that left the impression of a healthy economy and subdued
inflation. The September contract closed .32 higher at 111.06,
Euro FX
(
ECU0 |
Quote |
Chart |
News |
PowerRating) fell .00450 to .90520 and Swiss francs
(
SFU0 |
Quote |
Chart |
News |
PowerRating) lost
.0052 to .5833.
In a move more to underscore its autonomy from Japanese political forces than
to stimulate economic growth, the Bank of Japan hiked interest rates 25 basis
points. The rate rise did little to inspire the Japanese yen
(
JYU0 |
Quote |
Chart |
News |
PowerRating) and
the September contract still closed a paltry .0008 higher at .9256.
Movement of Kuwaiti troops in response to threatening
statements from Iraq’s President had a carry-over effect from Thursday taking
crude and heating oil to new contract highs. Energies have rallied every day since Tuesday’s API which showed
domestic stockpiles at their lowest level in 17 years. The strong price action
in the oil patch has catapulted all four of the major energy contracts onto the Momentum-5
List.
But late in the session, the oils reversed off contract highs (Turtle Soups)
in response to the International Energy Agency which said in its latest monthly
report that Saudi Arabia supplied the world market with as much as an additional
150,000 barrels of oil per day–or more.