Tomorrow’s Major Event
In addition to the large number of earnings
announcements that will be taking place this week, there is another major event
that needs to be observed. It is the release of the Federal Reserve’s Beige
Book report. It will be released tomorrow (Wednesday, 01/16/02). This report is
on economic conditions here in the US and is used at the FOMC meetings. The next
FOMC meeting will be held on Jan. 29.
FOMC meetings are when the Fed sets interest rate
policy. These meetings occur about every six weeks and can have a significant
impact on the markets. Analysts and investors speculate in advance about the
possibility of an interest rate change that could be announced upon the end of
these meetings. Since the Beige Book is released two weeks before each FOMC
meeting, investors can see for themselves at least one of the many indicators
which Fed officials will use to help determine interest rate policy. Lower
equity prices can send treasury prices higher, as investors shift money from
stocks to bonds. This demand can help boost prices higher and push yields lower.
Currently the 30-year bond is yielding 5.36%.
FINANCIALS
March 30-Year T-Bonds
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USH2 |
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closed higher ’20 to 103’29. The March 10-Year T-Note
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TYH2 |
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095 to 107’005, and the March 5-Year T-Note
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FVH2 |
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106’310 up 015.
BROADER MARKET INDEX FUTURES
March S&P 500 futures
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SPH2 |
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higher at 1149.00, up 8.70. The March Dow Jones Futures
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DJH2 |
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32.0 to end at 9927, while the March Nasdaq index
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NDH2 |
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higher at 1625.00, up 16.00.
CURRENCIES
The currencies were mostly mixed
today. The March US dollar index
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DXH2 |
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.84. The March British pound [BPH2|BPH2] lost .0096 to close at
1.4344. The March Japanese yen
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JYH2 |
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.007639. The March Swiss franc
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SFH2 |
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March Australian dollar
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ADH2 |
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.51650, and March euros
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ECO2H |
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.88180.
PRECIOUS METALS
All but silver suffered losses in
the metals today. Feb gold
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GCG2 |
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March silver
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SIH2 |
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high grade copper
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HGH2 |
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platinum
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PLJ2 |
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GRAINS
Grains and soybeans fell in today’s session.
Wheat prices continued Monday’s late sell-off.
March wheat
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WH2 |
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CH2 |
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was the only winner in the grains, adding 1.75 to move up to 212.75. March oats
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OH2 |
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was lower by .75 at 189.75. March soybeans
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SH2 |
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soybean meal
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SMH2 |
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soybean contract lost .75 to end at 446, while the March bean meal slid .30 to
157.90. March soybean oil
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BOH2 |
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SOFTS
The majority of the softs were
higher on the day. March cotton #2 [CTH2|CTH2] added .69 to close at
37.34. March orange juice [JOH2|JOH2] was lower by 1.10 to 88.75. March
coffee
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KCH2 |
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CCH2 |
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higher by 7 to 1308. March sugar #11
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SBH2 |
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at 7.83, and March lumber
(
LBH2 |
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255.60.
MEATS
The meats rallied higher today.
Feb live cattle
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LCG2 |
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LHG2 |
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rose .975 to end at 56.225. Feb pork bellies
(
PBG2 |
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74.55, up .500, and March feeder cattle
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FCH2 |
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ENERGIES
Crude oil prices rallied ahead of the release of
key U.S. inventory data. By mid-session, crude oil for February delivery was up
40 cents to $19.29 a barrel on the New York Mercantile Exchange. Feb
crude oil
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CLG2 |
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gas
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HUG2 |
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HOG2 |
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.41 to end at 52.07, and Feb natural gas
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NGG2 |
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winter weather and weak refining margins could pressure the complex down again.