The September T-Notes Hit A New Contract High
The ISM index declined
to 51.4 from 53.3 in May. Analysts were expecting 52.1. The prices
paid component dropped to 58 from 71, the lowest since 2003. U.S. construction
spending was at a record high pace of $1.07 trillion in April, up 8.2% from a
year ago. The September 10 year T-notes closed at a new contract high of 113
59/64, up 21/32. Both the 14-period RSI and stochastic are now in the overbought
zones.
Dallas Federal Reserve Bank President Fisher expressed that the fed may be
ending the raising the federal funds rate soon. December eurodollars finished
higher at 96.2350, the best level in three months.
Expectations for dry weather to stay in the eastern half of the Midwestern U.S.
caused December corn to go up by 2.5 cents and closed at $2.417.
South Korea is planning to discuss a possible end to their ban on U.S. beef next
week. December cattle closed at 87.42, down 0.85. Also South Korea purchased
150,000 tons of non-genetically modified soybeans from the U.S. July soybeans
were up 5 cents at $6.852.
Royal Dutch/Shell Group shut down two gasoline refineries in Texas because of
pipeline problems. September unleaded gasoline shot up 7.76 cents and closed at
$1.5383.
The S&P 500 took out the 1200 resistance level and finished at 1201.40. The
14-period stochastic is overbought at 93.12.
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