Crude Oil Falls After Inventory Data

Today’s economic calendar
continued to suggest a slowdown in housing is taking place.

The MBA’s weekly indexes all dropped

along with the NAR’s December Home Sales Index — which fell 3.0%. The one
contradictory note came from the Commerce Department, which reported that
Construction Spending rose 1% last month

The rise was well above analyst expectations.

The ISM Manufacturing Index showed that growth in
the manufacturing sector was much slower than forecast

in December


The US Dollar rose versus the Euro and Yen following
the reports. However, the news sent Treasuries lower, extending their 2-week
slide. Also weighing on Treasuries was today’s announcement by the government
that it plans to auction $48 Bln in 3-yr T-Notes, 5-yr T-Notes and 30-yr Bonds.

The biggest market moving news came from the Energy Department’s EIA, which
reported a rise in both Crude Oil and Gasoline Inventories


All the energies were trading higher before the
report but sold off sharply later in the day to record losses for the session.

Economic News

Mortgage Bankers Association’s Weekly Market Index Sinks 5.1%; Purchase Index
Drops 8%, Refinancing Index Dips 1.5% (report).

ISM Manufacturing Index At 54.8 For Jan. (report).

Construction Spending Up 1% For Dec. (report).

NAR Says Pending Home Sales Index Falls 3.0% In Dec. To 116.4

EIA: Crude Oil Inventories Up 1.9 Mln. Barrels (report).

Ashton Dorkins

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