CPI Lifts Stock Indexes, But Leaves Bonds At New Lows
Stock indexes finished mostly higher, rallying after Labor Department data showed Consumer Prices did not rise more than expected in September. T-bonds also initially staged a relief rally but fell on the view that the data is nonetheless inflationary and likely to prompt the Fed to raise interest rates.
Four HREF=”https://tradingmarkets.com.site/eminis/indicators/actionsigs/mbias.cfm”>Market Bias Indicators pointing up suggested stock indexes would rise. December Dow futures [DJZ9>DJZ9] rose 100.0 to 10,292 and S&P futures [SPZ9>SPZ9] rose 9.30 to 1275.0. Although NASDAQ 100 futures [NDZ9>NDZ9] rose as many as 40 points early in the session, the December contract sank after T-bonds dropped below opening levels.
December T-bonds [USZ9>USZ9] rose as high as 111 30/32 then turned down, tumbling nearly a full point before settling at a new contract low, down 14/32 at 111 2/32.
December dollar index futures [DXZ9>DXZ9] started the day higher but also fell back once bonds started to descend. British pounds [BPZ9>BPZ9] posted the largest gain against the dollar, rising .0038 to 1.6726. The December contract registered on the Momentum-5 List
and had an HREF=”https://tradingmarkets.com.site/eminis/indicators/actionsigs/adxc.cfm”>ADX Reading of 30, indicating a strong up trend. Although the Japanese yen [JYZ9>JYZ9] gapped lower on the open and closed down .0012 at .9583, the December contract rallied throughout the session to finish on its high of the day.
Crude oil [CLZ9>CLZ9] also came back from a gap-down open but was unable to break through yesterday’s closing level. The December contract tumbled in the last hour to end down .31 at 22.22. Heating oil [HOZ9>HOZ9] also fell .0079. Natural gas [NGZ9>NGZ9], from the Momentum-5 List, pushed up to a 20-day high and closed .087 higher at 3.007. Natural gas closed in the lower half of its daily range, increasing the chance that it will make good on the Turtle Soup Plus One Sell signal it has set up for tomorrow.
December gold [GCZ9>GCZ9] was down as many as 5 but came back to close near its opening gap-down level, ending 2.2 lower at 309.5.
The grains had another quiet day with December wheat [WZ9>WZ9] showing the most movement and finishing up 2 3/4 at 263.
Another member of today’s Momentum-5 List, December lean hogs [LHZ9>LHZ9], rallied 1.750 to 48.975. February pork bellies [PBG0>PBG0] traded up their daily limit finishing 3.000 higher at 66.025. Bellies closed near recent highs.
Finally, coffee [KCZ9>KCZ9] advanced 2.05 to end at 97.65 and March 2000 sugar [SBH0>SBH0] closed up .23 at 6.69.