Here’s What Sent Oil Crashing
The unexpected decline in the
University of Michigan Consumer Sentiment sent equities lower and Treasuries
higher.Â
Equity
US stocks fell for the day but finished up
for the week. Leading the losers were the semiconductor stocks after Intel was
downgraded to hold by Deutsche Bank. Systems software shares were also lower as
a result of an announcement by Adobe’s downward revision for its earnings.
Meanwhile, the mortgage and home improvement sectors finished up for the day
after suffering losses for most of the week, stemming from Freddie Mac’s
accounting woes. The Nasdaq future
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down 10.90 to finish at 988.50,
and the Dow
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Fixed Income
U.S. Treasuries rose yet again, today in response to the lower
preliminary consumer survey, as participants assigned a higher probability of a
50 bp cut. The yield of the five year note hit multi decade lows.
The 10 year futures contract
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was up -29 at 122-21; and the five year note was up -80 at 116-295
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Metals
July gold
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357.20. Silver
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76.10
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Energy
 was down for a second day after an
International Energy Agency report showed oil supplies were more abundant than
had originally believed. July crude
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29.85. Natural gas, on the other hand, was higher by .069 5.675
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Currencies
The dollar was again lower today due to the
falling yield expectations. The USD index
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finished at 92.64.