What This Unexpected Increase Means
Treasuries fell as the economy lost fewer jobs in
December than at any time in the last four months, a sign the country is
recovering from recession. An unexpected
increase in business at U.S. service companies in December also pointed to a
rebound. Some
traders feel it is
less likely the Federal Reserve will lower interest rates at a policy meeting
this month.
The smaller drop in payrolls may indicate the Fed is
done and the next move will be up as the economy gains strength.
FINANCIALS
March 30-Year T-Bonds (USH2)
closed at 100’07, down’10. The March 10-Year T-Note (TYH2) lost
010 to close at 104’175, and the March 5-Year T-Note (FVH2)
ended at 105’105, down 005.
BROADER MARKET INDEX FUTURES
March S&P 500 futures (SPH2) we
up 8.90 to
1175.30. The March Dow Jones futures (DJH2)
closed higher to 10269.0, up 89. The March Nasdaq futures
(NDH2)
was up 6.50
to 1679.00.
CURRENCIES
The March US dollar Index (DXH2)
closed at 116.75, up .21.The March British pound (BPH2)
gained .0090 to 1.4404. The March Japanese yen (JYH2)
continued to try and rally off of its bottom, gaining .00047 to close at
.007661. The March Swiss franc (SFH2) lost
.00090 to end at .60570. The March Australian dollar (ADH2) gained
.00610 to .51860, and the March euro
(
ECH2 |
Quote |
Chart |
News |
PowerRating)
lost .00470 to finish at .89270.
PRECIOUS METALS
Precious metals were trading
mostly lower early Friday, with greater volatility in silver prices being viewed
as an indication the market was topping out, a trader said. Becalmed activity in
gold suggests it is languishing within a $5 range. Feb Gold (GCG2) dropped
279.2
to 2512.8.
March Silver (SIH2)
was unchanged at 4.65. March High Grade Copper
(
HGH2 |
Quote |
Chart |
News |
PowerRating))
lost 1.05 to
.6745, and
April Platinum (PLJ2)
fell 6.000 to 473.000.
GRAINS
WHEAT BREAKS HIGHER! Based
on the March contract, wheat pushed to its highest level in three years,
posting
its
highest close since March 1998. Some claimed the $3.04 area would stop the
market. The $3.04 level is important — traders thought it could cap the
current rally on a short-term basis. But a pause between $3.04 and $2.97,
followed by a close above $3.04 would be nearly ideal to complete a secondary
breakout — which tends to be very reliable in producing bigger moves. Today,
Wheat broke out and closed above 3.04. March Wheat (WH2)
closed up 7 to 307 on strong volume. March Corn (CH2) was
unchanged at 210.50. March Oats (OH2)
lost 1.75 to close at 210. March Soybeans (SH2) were
higher by .50 to 424.50. March Soybean Meal (SMH2) lost
1.1 to 143.60, and March Soybean Oil (BOH2) gained
.36 to 16.02.
SOFTS
March Cotton #2 (CTH2) was
up .48 to 36.62. March Orange Juice (JOH2)
climbed 2.90 to 94.25. Arabica coffee futures ended at two-week highs. Cold
weather in Mexico influenced buyers. The Mexican crop is coming in smaller than
last year’s, as some beans go unpicked. March Coffee (KCH2) moved
higher on the news by 1.05 to 48.55. March Cocoa (CCH2) closed
up 92 to 1386. March Sugar #11 (SBH2) was
down .01 to 7.64, and Jan Lumber (LBF2) lost
4.20 to close out at 241.
MEATS
Meats Close Lower: Chicago Mercantile
Exchange Feb live cattle futures registered a two-week low and filled a
technical chart gap as sell stops were triggered below $70.00 per hundredweight.
Feb then drifted back near that mark in light trade.
Feb Live Cattle (LCG2) closed
down .50 to 70.075. Chicago Mercantile Exchange lean hog futures for February
gapped lower, but has since recovered from a nearly two-week low. The
trading of only 5,000 contracts a day with open interest of 25,000 is not good
for business, a source said, regarding lean hogs’ lethargic trading pace.
Lean Hogs (LHG2) lost
.300 to close down to 55.30. Feb Pork Bellies (PBG2)
were down 2.475 to 78.725, and Jan Feeder Cattle (FCF2)
lost .125 to 85.275.
ENERGIES
Energy futures were higher today. Feb
Crude Oil (CLG2)
was up 1.25 to 21.62. Feb Unleaded Gas (HUG2) gained
.0239 to .6284. Feb Heating Oil (HOG2) was
unchanged at .5859, and Feb Natural Gas (NGG2)
added .007 to 2.275.