Positive Bias Sparks Strong Rally


In today’s futures trade,
the early morning positive bias sparked a strong rally in the S&P 500 futures
and Nasdaq 100 futures, which had both gapping at the open and trending to the
upside all day.
US stocks
rose as HSBC Holdings’
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agreement to buy Household
International

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sparked a rally in financial shares. US Treasuries had their
biggest drop in four weeks after an unexpected decline in weekly jobless claims
suggested the economic rebound is accelerating.

The Standard &
Poor’s 500 Index

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had its biggest advance in almost a month.

Dec. S&P 500
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futures rose 17.30 or 1.95%, to 902.50. The Dec. Nasdaq 100 futures
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rallied nicely from a pullback from its recent high. NDZ2 closed at 1052 up
35.50 or 3.49%.

Benchmark 10-year notes led declines as a bigger-than-forecast increase in
retail sales, excluding automobiles, also pointed to faster growth. Demand for
Treasuries fell as some investors bought stocks and higher-yielding corporate
bonds as a bet the recovery will bolster companies’ earnings.
The
Dec. 10-year note

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closed at 113 305, down -1 100 and the Dec. 30 year bond
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dropped -1 ’27 to 111 ’07.

Crude oil for December delivery
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rose slightly higher by .11 to end at $25.30 a barrel;
Dec. heating oil

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rose .45 of a cent to 67.70 cents a gallon; Dec. unleaded
gasoline

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rose 1.15 of a cent or 1.69% to close at 69.70 cents a
gallon. Dec.
natural gas

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was unchanged at 3.87.

At the Chicago Board Of Trade (CBOT)
some of the grains had follow-through from Wednesday’s positive move.
Dec. wheat futures
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had a strong session, rallying up 10 1/2 cents
to $3.91 1/2 a bushel. Jan. soybeans
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tested the 5.60 support
level briefly before rising 4 cents to close at $5.67 a bushel.

Dec. corn

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continues to rise in price. Today, corn closed at
$2.44 a bushel, up 3 1/2 cents or 1.46% and Dec. soy meal

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climbed above 165 to close at 165.69, a gain of 2.20 or 1.35%.

Dec. gold

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fell .70 to close at $318.19 a troy ounce; Dec. silver
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was unchanged at $4.56 an ounce

and Dec. copper
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dropped .55 of a cent to close at 71.20 cents
a pound.