Look Who’s Betting On Recovery
Investors are shifting money out of Treasuries
and into riskier corporate debt and stocks, betting that 11 rate reductions by
the Fed last year will spark an economic recovery, boosting companies’ revenue
and helping them repay debts. All three major U.S. stock indexes rose for a
second day.
BROADER MARKET INDEX FUTURES
March S&P 500 futures
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SPH2 |
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higher today, gaining 12.40 to close at 1166.40. The March Dow Jones futures
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closed higher by 115 to 10,180.0, while the March Nasdaq 100 futures
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ended at 1672.50, up 55.00. The March E-mini S&P 500
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ESH2 |
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higher by 12.75 to 1166.75.
FINANCIALS
Treasuries gained after jobless claims
unexpectedly rose, suggesting the economy may remain weak enough to prompt the
Federal Reserve to lower interest rates this month. The
number of people filing new claims for jobless benefits rose to the highest
level in a month last week, fueling speculation the December unemployment rate
may rise more than expected. The government is scheduled to report the rate
tomorrow. The March 30-Year
T-Bond
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USH2 |
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10-Year T-Note
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TYH2 |
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5-Year T-Note
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FVH2 |
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CURRENCIES
The March US dollar index
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DXH2 |
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closed at 116.54, up .27. The March British pound [BPH2|BPH2] lost
.0072 to 1.4314. The March Japanese yen
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JYH2 |
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PowerRating) moved slightly higher
by .000018 to .007614. The March Swiss franc
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SFH2 |
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to close at .60660. The March Australian dollar
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ADH2 |
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.00030 to close at .51250, and March euros
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FXH2 |
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its gain from yesterday’s big run, closing down .00390 to .89740.
PRECIOUS METALS
Precious metals settled mixed
Thursday, as commodity funds ignored the extended rally in silver to sell gold
off early highs, but the downside was limited by steady physical buying
interest. Physical buying keeps absorbing (the selling), taking (gold) off the
market. Feb Gold
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GCG2 |
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PowerRating) was down to 278.5, a 0.7 loss. March
Silver
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SIH2 |
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Copper
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HGH2 |
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PLJ2 |
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higher again today at 479.0, a gain of 2.5.
GRAINS
All of the grains did well today.
March Wheat
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WH2 |
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CH2 |
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closed higher by 2 to close at 210.5. March Oats
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OH2 |
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211.15, up 8. March Soybeans
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SH2 |
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Soybean Meal
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SMH2 |
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Soybean Oil
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BOH2 |
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SOFTS
March Cotton #2
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CTH2 |
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down .31 to 36.15. March Orange Juice
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JOH2 |
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PowerRating) was down 1.60 to 91.35.
March Coffee
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KCH2 |
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CCH2 |
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down 2 to 1294. March Sugar #11
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SBH2 |
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and Jan Lumber
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LBF2 |
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MEATS
Feb Live Cattle
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LCG2 |
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closed up .05 to 70.58, with Feb Live Hogs
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LHG2 |
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PowerRating) down .98 to
55.60. Pork bellies moved higher and tripped stops during their climb, with Feb
hitting its highest level since Sept. 24. Feb Pork Bellies
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PBG2 |
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up .98 to 81.20, and Jan Feeder Cattle
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FCF2 |
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ENERGIES
Feb Crude Oil
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CLG2 |
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PowerRating) dropped
.46 to 20.55. Gas and oil futures on London’s International Petroleum
Exchange ended lower Thursday, as the market fell from its strong rally
Wednesday. Feb Unleaded Gas
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HUG2 |
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PowerRating) lost .0046 to close
at .6060. Feb Heating Oil
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HOG2 |
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PowerRating) lost .0176 to close at .5610,
and Feb Natural Gas
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NGG2 |
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PowerRating) lost .155 to end at 2.310.