Indices slip from higher open while Treasuries sell off

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

  1. TradeTheNews

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    US Mid-Morning Recap
    by TradeTheNews Staff

    - Treasury yields are moving higher this morning in conjunction with European bond yields. Strong industrial production data from France overnight, the Fed’s Poole raising his 07 growth expectations, and a WSJ note highlighting South Korea’s intention to diversify reserves away from Treasuries are all being citing as possible impetus for today’s weakness. More likely the 10-year yield’s ability to hold a key technical re-tracement level has induced some technical selling. 30-year –24/32 at 4.855%; 10-year –11/32 at 4.776%; 2-year –2/32 at 4.908% Gold rallied some $10 after opening on the floor. Asian fund buying is said to have helped move the April contract out to 7-month high above $670. Traders are on the lookout for a reversal that could match the pattern of last Friday’s trade as Gold trades $3 off of today’s highs. Copper futures are having a solid session up 2.5%. Crude is off fractionally at $59.60 after breaking above $60 early in the session. The Dollar is losing ground to its European counterparts but continues to find traction against the Yen. The Dollar is off some 0.7% versus the Loonie after Canada reported a strong net change in payrolls for the month of January.

    - Equity trading is pretty mixed. LI +9% and MIKR +15% are surging after receiving buyout offers. LEA is off 4% after confirming the acceptance of the Icahn offer and establishing a 45-day window in which the Co. can solicit alternative proposals. BRCM is up 4% post earnings while JP Morgan and Deutsche Bank each raised their view on the semis. SMH has gained more than 0.75% but is well off of earlier highs. Today’s much-awaited hedgefund IPO Fortress Investment Group opened for trade at $35 after pricing at $18.50. FIG shares have given back some 9% from the open to trade at $31.80 currently. Shares of Mastercard are down some 9% after opening higher following its pre-market earnings release. The post open selling was accelerated when the Co. said on their conference call that they do not expect to raise prices this year and that in turn could pressure margins.