Will Stocks Continue to Rally?
Safe-haven instruments
took a step back today as stock index futures rallied on the backdrop
of a positive durables report, lowered terror alert, and the possibility of Iraq
destroying its missiles.
Stock index futures rallied today as durable
goods jumped more than expected. In a sign that companies are increasing
spending on equipment, durable goods rose 3.3% in January, trouncing estimates
of a 1% rise. News that the nation’s terror alert has been lowered to
“yellow” from “orange” also boosted stock prices. In
addition, the Middle East News Agency reported that Iraq will destroy its Al
Samoud missiles. However the UN reported that they haven’t been notified of
this. Hans Blix has given Iraq until March 1 to destroy the missiles.
At the close, the March Dow futures
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gained 86 to 7892; S&Ps
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with positive news helped stocks today, but until further resolution, stocks
will still be under pressure.
The dollar also benefited from the durables
report. The March dollar index
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Despite the positive economic report, bond
futures again ended higher. The 10-year contract
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30/32 and the 30-year contract
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Crude oil ran up to the highest level since the
invasion of Kuwait in 1990, but later backed off after news that Iraq would
destroy its missiles. April crude
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session down 0.45 at 37.20.
Gold sold off today after news that the nations
terror alert was lowered to “yellow” or elevated risk, from
“orange” or high risk. April gold
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PowerRating) dropped 7.80 to 346.20.