What Greenspan Said That Affected Energy-Related Stocks
Mr. Greenspan was less
pessimistic about the economy than the markets had been anticipating, which
pulled equities from their lows and weighed on Treasuries.
Equities
Equities finished mixed after a second day of
price consolidation. Oil service stocks finished higher after Greenspan touched
on the current supply shortage in the natural gas market. These service
companies will likely benefit from new projects that will develop in the months
ahead. And a ruling by the Florida Appeals Court to throw out a $145 billion
dollar verdict against tobacco companies helped lift this sector The Nasdaq
futures contract
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up by 2.80 to finish at 922.10,
and the Dow
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Fixed Income
Treasuries gave back some of yesterday’s gains
after Chairman Greenspan’s remarks to Congress were a little more optimistic
about the economy than had been expected. The yield curve flattened as the front
end suffered greater losses than the backend. The 10-year futures contract
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down 095 to close at 118-140; the 30-year
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was down -01 at 120-13; and the five-year note was down 110 at 115-270
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Metals
Gold continued to trade higher today as a result
of new geo-political worries (terror threats) than on the direction of the US
dollar. The July contract was up 5.70 to close at 372.20
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silver
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77.10
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Energy
The petroleum market ended mixed today after the
UN signaled that it would lift the trade embargo against Iraq; crude had been
higher earlier in the day as a result of heightened terror threats in the oil-rich Gulf region. June crude was down .13 to
close at 28.90
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close at 6.198 on the back of Greenspan’s remarks to Congress about looming
supply shortages in this commodity
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Currencies
The US dollar finished higher across the board
(except against the Canadian dollar) and posted sizable gains against the yen,
as the market is anticipating intervention by the Bank of Japan. The USD index
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up by .28 and
finished at 93.68.