Indices push higher helped by Alcoa speculation and General Motors

Discussion in 'Trading' started by TradeTheNews, Feb 13, 2007.

  1. TradeTheNews

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    US Mid-Morning Recap
    by TradeTheNews Staff

    - AA +6.6% is leading the Dow higher after reports surfaced overnight from London that BHP or RTP may bid up to $40B for the Co. Metals and Mining stocks along with other materials names are seeing gains. AL +4.5% CENX +5% ACH +2% NUE +3% STLD +4% PCU +3.5% FCX +3% IP +2% TIN +2.5% General Motors is also driving the Indices higher as it is adding 2.5% after a Merrill Lynch upgrade. Homebuilding stocks are up moderately after another weak earnings report from KBH +1.4%. Gains can also be had in the energy complex with crude futures rebounding 1.5% to $58.65. The OIH is up $1.50. Relative weakness can be found in the NASDAQ led by the semis. The SMH is at session lows in negative territory as chatter circulates of a negative piece by Gartner.

    - Treasury markets are slightly into negative territory with the 10-year yield back above 4.80%. The December trade balance exceeded estimates coming in at -$61.2B. Strong Euro zone preliminary GDP and industrial production data releases overnight coupled with the slightly negative US trade balance has led to some weakness in the EUR/USD. The Dollar is managing gains against the Pound after the UK Jan headline CPI was reported at the lowest level since July 2001. The USD/JPY –0.6% is giving back some of its recent gains. April Gold is more than $5 off of earlier highs currently trading at $668.80. Copper has been higher by nearly 3% throughout the session at $2.55.