Closing Report
With no economic data to speak of equities were able to reverse course after extensive losses last week. Treasury yields gained on an increased exposure to risk as credit fears were briefly muted. The current yield on the 10-yr is 4.182%; the yield on the 2-yr is 4.592%. DOW futures were choppy in both early and premarket trading and are now maintaining strength late in the day trading up 143 point to 13427.
The dollar is mixed on the day, gaining 30 pips vs. the yen and losing 64 pips to the Euro. Crude was above $77 dollars, however, ended the day down 29 cents to 76.73.
Unleaded is down 1.61 cents to $2.0856, Heating Oil is also lower. Natural gas is up 5% to $6.52 as August Natural gas futures expired today; it was also helped by a forecast for higher temperatures at the start of hurricane season.
Gold is higher $5.30 to $677.60 and Silver is higher 24 cents to $12.95 as a weaker dollar increased their appeal as a hedge against the greenback. Platinum is down $1.20 to $1285.50; Copper is up 4.3 cents to $3.59.
Dec FED funds now indicate an implied rate of 5.07%, indicating a 72% likelihood of a FED rate cut before year’s end.
A slew of economic data to paint markets tomorrow:
8:30- Personal Income Est: 0.5% Prior: 0.4%
Personal Spending Est: 0.1% Prior: 0.5%
PCE Deflator (YoY) Est: 2.3% Prior: 2.3%
PCE Core (MoM) Est: 0.2% Prior: 0.1%
PCE Core(YoY) Est: 1.9% Prior: 1.9%
Employment Cost Index (2Q) Est: 0.9% Prior: 0.8%
9:45- Chicago Purchasing Manager Est: 58.4 Prior: 60.2
10:00- Construction Spending (MoM) Est: 0.2% Prior: 0.9%
Consumer Confidence Est: 105 Prior: 103.9
NAPM-Milwaukee Prior 66