Inventory Data Sends Crude Oil Lower
In today’s economic news,
the New York Fed reported that manufacturing conditions continued to improve in
the region
(report).
However, Industrial Production unexpectedly fell in January
(report).
The Mortgage Bankers Association’s weekly report continued to paint a gloomy
picture for the housing market with all three of its’ major indexes falling. The
EIA reported a rise in both Crude Oil and Gasoline Inventories
(report).
Ben Bernanke testified before Congress for the first
time as chairman of the Federal Reserve. You can find highlights of his
testimony in our
economic
news section.
Treasuries sold off during Bernanke’s testimony as
he hinted that rates may have to raise further. However, they recovered during
the afternoon to close virtually unchanged. The comments did boost the US
Dollar, sending the greenback higher against all the majors. FOREX traders should check out TradingMarkets
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far better than forecast, rising at the fastest pace
since March 2004. January Retail Sales rose 2.3% and Ex-Autos rose 2.2% (report).
Business Inventories also beat estimates, rising 0.7% in December (report).
Today’s inventory data helped send Crude Oil sharply
lower. Crude Oil prices touched $69 on Feb 1 but have plunged since, hitting
their lowest levels since November 05 today.
Among the softs, Sugar was the only stellar
performer, posting a gain of 1.13%. Orange Juice and Cocoa led the declines,
falling 1.16% and 0.86% respectively.
All the grains closed higher, except for Soybean
Meal. Corn and Wheat recorded the best gains among the major grain contracts.
Lean Hogs fell more than 2%, while Frozen Pork
Bellies rose 1.25%.
Mortgage Bankers Association’s Weekly Market Index Drops 7.3%; Purchase Index
Down 7.9%, Refinancing Index Down 6.5%
NY Empire State Index At 20.3 For Feb.
(report).
Industrial Production Down 0.2%; Capacity Utilization At 80.9%
(report).
EIA: Crude Oil Inventories Up 4.9 Mln. Barrels; Gasoline Inventories Up 2.2
Mln. Barrels (report).
Ashton Dorkins
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