Warm Weather Pushes Energy Prices Lower
Energy futures fell as
warm weather persisted across the Northeast. The combination of mild
weather and high prices following hurricanes Katrina and Rita have led to a
rapid fall in consumption.
Valero Energy
(
VLO |
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Chart |
News |
PowerRating) announced Q3 earnings
surged on tight refined products supply due to storm-shut US refineries (full
story). VLO follows recent announcements of bumper profits by
(
XOM |
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News |
PowerRating),
(
BP |
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News |
PowerRating),
(
CVX |
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PowerRating),
(
APC |
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PowerRating) and
(
BHI |
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PowerRating), to name a few, that are all benefiting from
record oil and gas prices.
Gold dropped $8 today and Silver fell more than
3% despite news that Barrick Gold
(
ABX |
Quote |
Chart |
News |
PowerRating), the world’s third largest gold
producer offered to acquire Placer Dome
(
PDG |
Quote |
Chart |
News |
PowerRating), the world’s fifth largest
gold producer for $9.2 billion in cash and stock. The combined company would
become the largest gold producer in the world (full
story).
In today’s economic news; the Commerce Department
reported Personal Spending +0.5% In Sept., Income +1.7% (report).
Chicago PMI was recorded at 62.9 for October, above analyst expectations.
The US Dollar Index closed higher today, boosted
by the Greenback hitting a 2-year versus the Yen and extending its gains versus
the Euro. Higher interest rates have been lifting the dollar in 2005 and that
cycle will continue tomorrow with the Federal Reserve expected to raise interest
rates to 4.00%. Treasuries were little changed on the session, yields on the
10-yr T-Note hit the highest level since March last week.
The grains, softs and livestock groups were mixed
today.
TradingMarkets Commodities Watch List
| Commodity (Symbol) |
Price | Price Change | % Change |
|
Energies |
|||
| Crude Oil (CL) | 59.76 | -1.46 |
-2.38 |
| Heating Oil (HO) | 182.39 | -7.30 |
-3.85 |
| Unleaded Gas (HU) | 159.01 | -7.55 |
-4.53 |
| Natural Gas (NG) | 12.20 | -0.85 |
-6.51 |
|
Metals |
|||
| Gold (GC) | 466.80 | -8.00 |
-1.68 |
| Silver (SI) | 758.00 | -24.00 |
-3.07 |
| Copper (HG) | 181.10 | -0.90 |
-0.49 |
|
Grains |
|||
|
Corn (C) |
196.00 | -1.00 |
-0.51 |
| Wheat (W) | 317.00 | +0.75 |
+0.24 |
| Soybeans (S) | 576.00 | -0.50 |
-0.09 |
|
Softs |
|||
| Sugar (SB) | 11.33 | -0.28 |
-2.41 |
| Coffee (KC) | 96.65 | -1.70 |
-1.73 |
| Cocoa (CC) | 1351.00 | -31.00 |
-2.24 |
| Frozen Orange Juice (JO) | 119.50 | +0.70 |
+0.59 |
| Cotton (CT) | 51.87 | -0.65 |
-1.24 |
| Lumber (LB) | 310.50 | +5.60 |
+1.84 |
|
Livestock |
|||
| Lean Hogs (LH) | 61.68 | +0.72 |
+1.19 |
| Live Cattle (LC) | 90.92 | -0.38 |
-0.41 |
Economic News
Personal Income and Outlays:
Personal Income, M/M Change – Actual 1.7% Consensus 0.3%
Consumer Spending, M/M Change – Actual -0.4% Consensus 0.5%
Chicago PMI:
Business Barometer Index – Actual 62.9 Consensus 57.0
Ashton Dorkins