Will The Bond Rally Continue?
Stock index futures are lower today with
the S&P having its second straight decline while Nasdaq futures broke a four-day
winning streak. Stock futures were weak from the start after both Alcoa
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and Gateway Computers
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PowerRating) posted bigger than expected losses. Alcoa also
said that they will cut 8,000 jobs. Both the S&P and Nasdaq futures are
beginning to pull back in tandem after a very strong start for the year. The
March S&Ps have gained almost 5.5% and the March Nasdaq 100 futures have gained
8.76%. March S&P
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fell 29.99 to 1045.
Crude oil fell for the third consecutive day today after a report by the
Department of Energy showed that supplies unexpectedly rose. Fears about
declining crude supplies were eased today after a report by the Department of
Energy showed that U.S. crude supplies actually rose by 400,000 barrels in the
week ending January 3. Analysts were expecting for a drastic drop of 4.5 million
barrels. February crude
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February Gold
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PowerRating) rocketed up 6.80 to a new contract high of 354.30
amid increasing possibility of war. Both the U.S. and the U.K. are preparing
troops and equipment for potential battle in the Persian Gulf.
Treasuries again finished higher on the increasing fears of war and
speculation that President Bush’s economic stimulus plan will not take effect
for months. The March 30-year contract gained 22/32 to 111 1/32 and the 10-year
contract
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