Here’s Why The Dollar Strenthened Today
US stocks started off the day
strong but gradually drifted into mixed territory as the day wore on.
Treasuries, on the other hand, spent the entire day under water causing the
dollar to appreciate against the world’s other major currencies. Â
Equity
Telecom, pharmaceutical, and biotechs were among
the day’s few leaders, whereas semis, thrifts, mortgages and home improvement
stocks led the broader market lower. I-banking, pharmaceutical, industrial
conglomerate and communications equipment stocks led declines, whereas, oil and
gas exploration, equipment and drilling stocks were among the day’s few winners. The Nasdaq future
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down 3.50 to close at 1222.00. The S&P 500 contract
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991.50,
and the Dow
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Fixed Income
U.S. Treasuries were were lower today as investors lowered their
expectations of a 50 basis point cut by the Fed to a 25 basis point cut.
The 10 year futures contract
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was down -20 at 118-18; and the five year note was down -65 at 115-210.
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Metals
July gold
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356.70 as a result of dollar strength. Silver
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was down by .75 at 77.40
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to close at .6550.
Energy
July crude
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30.82, and natural gas, was down by .136 at 5.805
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Currencies
The USD index
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finished at 94.45 due to higher bond yields..