Futures Recap

  • July 31, 2007
  • John Patrick Lee

Treasuries Rise On Continuing Credit Concerns

The benchmark U.S. 10-year Treasury note added 7/32 to 97-27/32 with a yield of 4.775%,
after U.S.
equities sold off in response to the near wipe-out of another troubled lender.

The yen rose, heading towards the largest monthly advance in almost three
years against the dollar, as traders are continuing to play the carry trade.
U.S. stocks dropped further adding to yen buying.

The dollar is trading flat against the Euro and lower against the Canadian
dollar.

Crude oil futures rose to 1-year highs, adding 1.75% to $78.21 on speculation that
demand will outpace supply as refiners increase fuel production.

Gold futures added 0.4% today on the weakness of the dollar versus the euro.
Gold generally moves opposite to the dollar and are used widely as hedges for
each other.

Soybeans continued to rise gaining 2.2%, while corn futures rose 0.7%.

Stocks experienced a roller coaster ride on Tuesday, before closing in the
red. An early morning rally, on positive earnings and deal news, was reversed in
the afternoon, with all the major averages surrendering their gains, leading to
a heavy selloff in the last hour of trading.
Click here for the rest of today’s Stock Market Recap.


Economic News

Personal Income: Actual 0.4%, consensus
0.5%, prior 0.4%

Personal Spending: Actual 0.1%, consensus 0.1%, prior 0.6% (revised from
0.5%)

Core PCE Inflation: Actual 0.1%, consensus 0.2%, prior 0.1%

Employment Cost Index: Actual 0.9%, consensus 0.9%, prior 0.8%

Chicago PMI: Actual 53.4, consensus 58.5, prior 60.2

Construction Spending: Actual -0.3%, consensus 0.2%, prior 1.1% (revised
from 0.9%)

Consumer Confidence: Actual 112.6, consensus 105.0, prior 105.3 (revised
from 103.9)

John Lee

Associate Editor

johnl@tradingmarkets.com

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