Equities make little headway while Treasuries post marginal gains

Discussion in 'Trading' started by TradeTheNews, Feb 5, 2007.

  1. TradeTheNews

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    US Mid-Morning Recap
    by TradeTheNews Staff

    - Equity futures moved to this morning’s low after January ISM non-manufacturing was reported at 59, above the 57 estimate. The prices paid component was reported well below consensus estimates at 55.2 enabling Treasury yields to drift to session lows. Indices have since rebounded and trade near the unchanged while bonds have held onto modest gains. The 10-year yields 4.80% while the 30-year stands at 4.90%. The Dollar has showed some strength against its European counterparts following some soft data out of the UK while the Yen is firming on continued talk that it will be in focus at the upcoming G8 meeting. There is talk of USD/JPY sell stops building below 119.90. April Gold futures +$5 have managed small gains despite the Dollar strength while March Silver has been up more than 1% throughout the session. March Crude made a run at $60 but has since backed off some to $59.25. Natural Gas is up 3% at $7.69 as cold temperatures engulf much of the nation.

    - A variety of forces driving individual stock and sector volatility. A new round of merger and LBO announcements are leading the way. MLS+15% IFIN +28% HLF +20% LFB +16% NTRT +14% HC +17% all gapped higher on a take-out announcement. LEA +12% received an acquisition proposal from a group affiliated with Carl Icahn, which has forced other auto-parts names higher. BWA +1% VC +2% AXL +6% SUP +5% MGA +1%. TRI +15% confirmed it is being taken out by a group led by Goldman Sachs and CCMP, helping LPNT +3% CYH +5.5% and THC +2.7% higher as well. Q4 earnings continue to trickle in with a poor report from RCL –5.5% pressuring CCL –3%. OSTK is off 2.5% after another poor quarter while shares of GOOG –2% are weak on concerns of increased competition in Europe. Shares of KLAC +2.6% have been strong since the open after reporting Q2 results. Finally RMBS is trading up more than 15% after the FTC issued a remedy in a case filed against the Co.