A Flight-To-Quality Day
A weaker-than-expected
durable goods report, slow holiday sales, and rising threats of war
with Iraq and now North Korea sent traders on a flight to quality on this
shortened Christmas Eve trading session.
November durable goods fell 1.4% vs.
expectations for a modest 0.8% rise. Demand for cars, metals, and machinery
slipped as many economists were calling for a small gain that was to support an
economic recovery. However, without orders from the defense sector, durables
would have fallen 1.4%.
Bonds pushed their way to a month-long
high after the unexpectedly weak durables report. The 30-year March bond
contract
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PowerRating) rose 23/32 to 111 18/32 and the 10-year contract
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Gold continued to push higher out of
its recent one-day pullback as the metal is viewed as a “safe haven”
amid rising tensions of war and a faltering economic recovery. March gold
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PowerRating) finished up 1.70 to 347.30 .
Stock indices slipped modestly, the
March S&P fell 6.10 to 891 and the March Nasdaq 100 contract
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fell 10.50.
The dollar fell again after
yesterday’s attempt to bounce. The March dollar
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PowerRating) fell 0.38 TO 103.70.
Have a safe and Merry Christmas!