Indices make little headway while Treasury markets rebound from Friday’s weakness

Discussion in 'Trading' started by TradeTheNews, Mar 12, 2007.

  1. TradeTheNews

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    US Mid-Morning Recap
    by TradeTheNews Staff

    US equity markets are holding close to the flat line as renewed worries of sub-prime spill over are overshadowing deal announcements. New Century said they do not have enough liquidity to meet buybacks and have entered talks with lenders. Mortgage and homebuilding stocks are moving lower while Treasuries are seeing some flight to quality. The 30-year is higher by half a point and the 10-year is up 10 ticks yielding 4.55%. DG is up 26% after announcing an LBO deal with KKR, which is helping other discount retailers move higher. FDO +8% NDN +3.3% FRED +2% UnitedHealth Group announced a deal to buy SIE +15% spurring some interest in select managed care names. AGP +2.7% WCG +1.7% HUM +1% The energy complex is generally moving lower as warmer forecasts have pushed April crude futures down 2% to $58.75. OIH –1%

    The Dollar is lower against the Yen and Euro as traders continue to discuss the effects of weakness in the US sub-prime sector and how it relates to the carry trade. The Yen is higher against the Pound, Euro, and Dollar. April Gold has rallied $4 from earlier lows and is down fractionally near the $650 mark.