How Oil Affected The Other Markets Today

Lower oil prices and better
earnings gave stocks and
the US dollar a
lift, while Treasuries traded lower today.

Equities

Stronger profits, positive North Korean
rhetoric and an indication that SARS may be peaking in certain areas, sent
stocks higher today. Oil added more fuel to equity gains as consumers and
businesses will now have more money to spend on other items. McDonalds and
Procter & Gamble helped lift the broader markets, as they both reported better-than-expected earnings The S&P contract
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was up 15.10 to finish at
913.70,
and the Dow
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was up by 154 to
finish at 8440. And a report by the Semiconductor Industry Association
forecasting double-digit growth for the Semi industry helped the tech-heavy Nasdaq
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up, by 22.50 to close at 1108.00.

Fixed Income

The Treasury markets were lower today on the back
of equity market strength, but by some estimates, should have been lower
considering the stock market gains. The bond market is awaiting Wednesday’s
Treasury outline containing this quarter’s refunding, which may total $58 – $60
billion of new note offerings–to be spread among the 3, 5 and 10 year notes.
These additions could weigh on prices in the weeks ahead. The 10 year
futures contract
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was down 030 to close at 114-240; the 30 year
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finished at 113-13,
unchanged; and the five year note finished
down 0-035 to close at 113-135
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.

Metals

Although there were some positive developments
today about the ability of the governments in Vietnam and Singapore to contain
the spread of SARS, the Chinese government has had less success in the matter.
As a result, industrial metals were lower today, as China is one of the largest
buyers of these metals. Copper
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was down .15 at 71.55 and aluminum
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was down .0070 at .6340. Gold
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was up 1.1, to finish at 334.8 in a relatively quiet session, and silver
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was down 5.2
to finish at 4.58

Energy

Crude oil fell for a fifth session on the
continued belief by the markets that OPEC will not be able to control
over-supply. June crude
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was down .77 cents at 25.49. Natural gas 
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was down up by a slight .354 to close at 5.123.

Currencies

The US dollar was mixed against most currencies,
except against the Australian dollar and New Zealand dollar. The dollar finished
stronger against the euro, after a poor business survey reading in Germany and
stronger US equities. The USD index
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was up .30 and
finished at 98.92 on the day.