Will Stocks Set The Tone For The Year?
Stocks and the dollar
rallied sharply on this first trading day of 2003. The
major stock index futures put geopolitical tension aside as economic news took
center stage today. Although initial jobless claims came in worse than expected
at 403K vs. an expected 382K, traders focused their attention on the ISM
Manufacturing index. Stock index futures showed huge gains today as the December
ISM index jumped to 54.7 from 49.2 in November. This was much better than the
expected 50.1 number expected by economists. It was also the first reading above
50 since last August and it was the biggest gain in the index in almost 12 years.
The March S&P
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to 908.50 and the March Nasdaq 100 contract
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points to 1029. The S&Ps did break above some of the overhead resistance set by
the lackluster holiday trading of last week.Â
The boost in manufacturing also helped the dollar
break a five-session losing streak. The March US Dollar index futures
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Crude oil bounced back after pulling back for the
last couple of sessions. In a sign that the oil strike is taking a toll on our
supplies, the American Petroleum Institute reported that the Venezuelan oil
strike sent US oil supplies to a 26-year low. Venezuelan President Hugo Chavez
has also asked Brazilian President Luiz Inacio Lula da Silva for help in oil
production. Traders have been skeptical of Chavez’s claims that production would
return to normal levels of 3 million barrels a day in 45 days. February Crude
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Treasuries took it on the chin today after the
jump in manufacturing suggested that the economy in gaining strength. Today’s
drop in treasuries sent yields to their highest levels in over a year. The march
10-year contract
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Gold also fell on the strong economic news.
February gold
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