Indices buoyed by lower oil and continued relative strength in technology

Discussion in 'Trading' started by TradeTheNews, Jan 9, 2007.

  1. TradeTheNews

    TradeTheNews ET Sponsor

    US Markets Mid-Morning Recap
    by TradeTheNews Staff

    - Crude futures set the tone in early equity trading as continued momentum selling has pushed the Feb contract below $55. The energy complex is under considerable pressure with the OSX off 1.6% while coal, tanker, and refining stocks are also ticking lower. Offsetting some of that weakness are stocks that are overly sensitive to crude price. Airlines, hotels, casinos, and thrift stores are seeing some nice gains on hopes of relief for the consumer. Note WMT and GM are two of the best performers in the Dow each up more than 1%. The NASDQ has exhibited some relative strength for the second straight session. AAPL is higher by 2% ahead of Job’s keynote speech a noon. Video game makers and semiconductor stocks are seeing some broad gains as well.

    - There has been some distinct weakness in select managed care names after the California Gov. proposed certain caps on HMO profitability. WLP –3% UNH –0.75% WCG –1% CI –0.5% Shares of Sprint Nextel are off more than 10% after providing some 2007 guidance and getting several pre-market downgrades.

    - US Treasury markets have drifted toward session lows but yields are only modestly higher. 30-year –6/32 at 4.747%; 10-year –2/32 at 4.662%. The Dollar is mixed but did firm some against the Loonie, Aussie, and Yen on lower commodity prices. Feb gold futures gave back overnight gains, with the move down in oil ahead of the NY open. Copper and Silver futures are trading close to unchanged as well.