Markets On Shaky Ground?
Trading at the NYMEX where energy futures are
traded became a focal point for traders as crude oil, heating oil and
unleaded gasoline all rallied higher due to comments made by a top Iraqi
official. Iraqi Deputy Prime Minister Tariq Aziz said in an interview in Baghdad
broadcast Friday that Iraq opposes the return of U.N. weapons inspectors, saying that
inspections of Iraq will not resolve anything. After
this was reported in early trading, the October crude oil contract
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3.36%. This is just below the closely watched number of $30 a barrel. October
heating oil
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gallon. October unleaded gasoline
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2.16 cents, or 2.75%, and October natural gas
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4.24%, to 3.47.
A mixed reading on the overall economic outlook
put the markets on shaky ground with volume still below normal levels (the 20th
straight day with below-average volume). The negative feeling in the economy
caused the University of Michigan consumer confidence numbers to come in weaker
than expected. This sent the markets lower, but by the end of trading, the
Dec. S&P 500
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891.50. The S&P 500 futures look weak, and it is possible that SPZ2 could retest
the 50% retracement level (869.20) drawn from the July to August rally.
The Dec. Nasdaq 100 futures
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stayed positive most of the day, closing at 927, up 8.50. This puts support at the
914.00 level.
With a still uncertain situation in the US
economy, traders switched to Treasuries for safety over equities. The 30-year bond for
December
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treasury note closed at 113.65, up .45.
In the grain markets it was another day of
profit-taking from the recent drought-driven rally. November soybeans
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December wheat
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some of its gains to profit-taking. In today’s trading, wheat dropped 11 1/4 cents,
or 2.78%, to $3.92 3/4 a bushel. December corn
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$2.76 1/4 a bushel, a 2.47% loss.
In the metals, December gold
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ground to profit-taking. Gold closed lower at $318.10 a troy ounce, down 2.29.
Dec. silver
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$4.575 an ounce, and December copper
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