Buying Binge Takes Bite Out Of Bonds
A report from the Commerce Department said American consumers went on a shopping spree last month, spending at their fastest pace in six months. The retail sales number came in at 1.2% in August, .5% stronger than expected, catching forecasters off guard and sending December T-bonds [USZ9>USZ9] to new contract lows. The bonds rebounded half a point to end down 22/32 at 112 30/32.
Blue chip stocks hurt December Dow futures [DJZ9>DJZ9], which fell 110.0 to 11,035.0; NASDAQ 100 futures [NDZ9>NDZ9] rallied, ending 15.50 higher at 2544.00 and the S&Ps [SPZ9>SPZ9] fell 9.60 to 1352.70.
The strong retail sales number and a higher-than-expected current account deficit sent the December yen [JYZ9>JYZ9] to another high despite the Bank of Japan’s attempt to stem the rise of the yen (by selling yen and buying dollars). Yen futures, from the Momentum-5 List,
rose as high as .9637 before finding resistance and ending up .0056 at .9577. Dollar index futures [DXZ9>DXZ9] recovered from earlier losses to end up .41 at 100.34. Swiss francs [SFZ9>SFZ9], from the Implosion-5 List, made a wide-range day and ended down .0028 at .6530.
After a six-day rally that took prices up as much as 11% and crude oil over $24, energy contracts retreated from overbought conditions. October crude [CLV9>CLV9] fell .33 to 23.88, unleaded gas [HUV9>HUV9] dropped .0123 to .6845 and heating oil [HOV9>HOV9] fell .0100 to .6120. Natural gas [NGV9>NGV9] tumbled .146 (-5.25%) to 2.635, partially on the impression that demand will fall as hurricane Floyd makes landfall in Florida (or further north). It registered on today’s Pullback Off Lows List.
December gold [GCZ9>GCZ9] had a quiet day, rising .4 to 258.2. December silver [SIZ9>SIZ9] fell 2.7 to 515.5 and copper [HGZ9>HGZ9] dropped 1.30 to 80.85.
November soybeans [SX9>SX9] continued their descent after approaching highs yesterday, losing another 8 1/2 to close at 501 3/4. December soybean oil [BOZ9>BOZ9] fell .54 to 17.98 and soymeal [SMZ9>SMZ9] dropped 2.8 to 150.2.
December corn [CZ9>CZ9], from the Implosion-5 List, declined moderately for its fifth straight day, closing at a 50-day low of 214 3/4.
In the meats, October lean hogs [LHV9>LHV9], from the Implosion-5 List, fell almost their daily limit, then recovered to actually end positive on the day, up .125 at 43.100, leaving a long tail (a short-term bullish sign). February pork bellies [PBG0>PBG0] experienced similar but more moderate activity, finishing down .050 at 54.075. Live cattle [LCV9>LCV9] and feeder cattle [FCV9>FCV9] rallied .500 and .750, respectively.
Softs and fibers were extremely active today. December cotton [CTZ9>CTZ9] shot up to a 20-day high, reversed, traded down as low as 52.10, and then recovered to close down .89 at 53.96. November orange juice [OJX9>OJX9] also shot up to its recent highs on the opening, provided a gift entry on its Turtle Soup Plus One Sell set up, hit an intra-day low of 93.00 and closed down .45 at 96.55.
December cocoa [CCZ9>CCZ9] lapped down on the open, then rallied throughout the session without looking back, ending 33 higher at 974. October sugar [SBV9>SBV9] fell .09 to 6.70 and coffee [KCZ9>KCZ9] moved .50 higher to 86.30.
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