Will War Threats Continue To Cool?
Hans Blix’s report’s report was the main focus
today. Blix reported that Iraq did fail to disclose of some illegal
items such as the empty warheads and tons of potentially deadly chemicals, but
still haven’t uncovered weapons of mass destruction. Although no clear
resolution came about, the potential for war did take a step back. Data showing
a strengthening economy helped stock index futures to head higher for the second
straight session but weighed on bond futures. Crude oil continued to climb while
gold retreated.
In a volatile trading session, stock index futures headed higher for the
second consecutive session. Economic reports showing strength in the economy
help to boost stock futures higher. However Hans Blix’s report took center stage
today. Industrial production, capacity utilization, and business inventories all
came in better than expected. Industrial production for January came in at
+0.7% or more than double estimates of +0.3%. This was the biggest increase
since last July. Capacity utilization for January came in slightly better at
75.7%, beating estimates of 75.6%. And business inventories rose 0.6% or triple
the +0.2% estimate. However the Michigan consumer sentiment came in worse than
expected at 79.2 vs. 81.9. At the close, S&P futures
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837, Dow futures
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The dollar index
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$1.0762 against the March euro
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Bond futures sold off today as war tensions eased a bit. The 30-year contract
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17/32 to 114 26/32. Bond futures also declined today over signs of economic
strength.
April gold
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gains. Gold did manage to stay above support at 350.
Despite an ease in the case for war, oil continued to climb. March crude
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