How Saudi Arabia Made Oil Prices Fall Today
Equities were a touch
higher while the Treasuries were mixed as the yield curve continued to flatten.
Economic data was mixed today and so were company announcements.
Equities
Today’s economic data was mixed with better-than-expected results coming out of the Empire Manufacturing Survey and Jobless
Claims, but anemic figures for the Philly Fed Survey. The Nasdaq futures
contract
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up by 6.20 to finish at 946.50,
and the Dow
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finish at 8695.
Fixed Income
The yield curve continued to flatten today as
investors are going further out on the curve (buying longer-dated Treasuries) to
lock in higher rates since these investors believe that rates will continue to
fall. The 10-year futures contract
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was up 01 at 118-13; and the five-year note was down 060 at 115-055
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Metals
Gold continued higher today despite a stronger
dollar, and the futures contract was up .30 to close at 352.8
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silver
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slightly higher today. Copper was unchanged to close at 76.10
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aluminum
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Energy
Crude oil prices finished lower after Saudi
Arabia, the world’s largest oil producer and OPEC’s most important member,
pumped 6.7% more oil in April than earlier estimated. June crude was down .43 to
close at 28.74
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close at 6.1310
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Currencies
The dollar was stronger today, especially against
the euro, as the market is now expecting the ECB to lower rates in order to spur
economic growth. The USD index
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PowerRating) was up .68 and
finished at 95.41.