What Controlled The Negative Bias
With all of the news out
— interest rates, election results and earnings — the futures pointed to a weaker
open, and it was all downhill from there. US stocks fell, sending indexes to
their steepest one-day loss in three weeks. Cisco Systems
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may decline this quarter, triggering a slide in computer-related shares. The news on CSCO,
a Nasdaq 100 component,
controlled the negative bias on the Dec. Nasdaq 100 futures
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causing it to close down 39.50 to 1029.50.
The Dec. S&P 500 futures
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Citigroup
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said yesterday’s interest rate cut by the Federal Reserve may squeeze their
earnings. Costco Wholesale
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warehouse club cut its profit forecast. SPZ2 closed at 902.40, down 23.30.
Benchmark 10-year US. Treasuries surged and
two-year notes fell, narrowing the yield gap between the securities by the most
in one day since the aftermath of the 1987 stock market crash.
Ten-year notes had their biggest gain in 13 months as the Federal Reserve’s
larger-than-expected rate cut yesterday heightened expectations that the economy
and inflation are slowing. Demand slowed for two-year notes, among the
securities most sensitive to Fed rate changes, because policy makers indicated
the half-percentage point cut is the last this year. The Dec. 10-year note
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Crude oil started higher
today after dropping to the $25.00 a barrel support level. According to U.K.
Foreign Secretary Jack Straw, Britain and the U.S. are prepared to attack Iraq
without a United Nations resolution on weapons inspections and disarmament. Then
the market cooled off. Dec. crude oil
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once again at $25.37 a barrel. Dec. heating oil
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followed crude lower, dropping 1.18 or 1.68% to 69.59 a gallon. Dec. unleaded
gasoline
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natural gas
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At the Chicago Board Of Trade (CBOT)
soybean prices still look undervalued against the tight supply/demand outlook
for the coming year and the tightness will be magnified if there is not a bumper
(and record) crop out of South America this year. Weekly export sales, released
before the opening, are expected to come in at 800,000-1.15 million tons for
soybeans, 50,000-200,000 tons for meal and 5,000-15,000 tons for oil. Dec.
soymeal
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The reversal is a technical
sign of a potential low but the market will need confirmation of a low with some
signs of improving export demand or by technical confirmation. Weekly export
sales, released before the opening, are expected to come in at 600,000-900,000
tons as compared with 1.028 million last week. Dec. corn
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dropped .02 cents to $2.41 a bushel and Dec. wheat
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cents to $3.96 3/4 a bushel.
In the metals, Dec gold
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