Four Reasons The Futures Rallied
There were four reasons why the S&P 500 and
Nasdaq 100 futures rallied today.
1. The “buzz” that a possible Fed Rate Cut may
take place at next Tuesday’s (Aug. 13) FOMC meeting.
2. There was no major economic news or
earnings news that was hampering the market at the open or during today’s
trading.
3. The rising dollar. Today the Sept. dollar
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to 108.98, a 1.39 increase. The increase was spurred by investors expecting the U.S. to be in a better position to handle the uncertain global
economic situation better than Europe or Japan.
4. Traders dropped Treasuries for equities.
The Sept. 30-yr. U.S. bond
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the upside, lost 1′ 03 to close at 106 ’27. The Sept. 10-yr. U.S. note
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its gains to end at 111 120 down 1 005.
The Sept S&P 500 futures
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gapped higher at the opening and raced for the intraday highs (875) and pretty
much traded in a 10-point range throughout the regular session. Near the close, some profit takers stepped in to bring the market down. The SPU2
closed at 861.50 up 27.50 or 3.30%.
As for the Sept Nasdaq 100
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also rallied nicely, being pushed by all of the tech sectors. It enjoyed a high
of 928, before pulling back to close at 907 up 42 or 4.86%.
Crude-oil futures rose in today’s session despite
speculation about quota caps and cartel discipline within the Organization of
Petroleum Exporting Countries (OPEC).
Cartel members Algeria and Nigeria have recently
asked OPEC for a larger output quota while Russia, which is not a member of OPEC
but which cut its output voluntarily for the first and second quarters of 2002,
said it would not renew those cuts for the third quarter. The secretary general
of OPEC failed to persuade Russia to reinstate its voluntary cap on crude-oil
exports, but both sides left open the possibility of a new deal.
September crude oil
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barrel; September unleaded gasoline
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cents a gallon, September heating oil
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67.79 cents a gallon and September natural gas
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or 1.38% to $2.71 per million British thermal units.
Sept. Wheat futures
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Board of Trade (CBOT), pushing higher by a decline in spring wheat conditions.
Wheat for September delivery rose 3 3/4 cents to $3.41 3/4 a bushel; December
corn
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At the Comex Division of the New York Mercantile Exchange where precious metals
are traded, December gold
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Sept. silver
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copper
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