Indices slip into negative territory while Treasuries recoup early losses

Discussion in 'Trading' started by TradeTheNews, Feb 6, 2007.

  1. TradeTheNews

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    US Mid-Morning Recap
    by TradeTheNews Staff

    - With no US economic data set for release this morning, equity markets are drifting a little lower. A plethora of stocks are seeing volatility post earnings reports and a few weighing on the Indices include: APC –1.8% LVS –5% MNT –5% QSII –9% PPDI –3% IACI –2% TYC –1.3% IT –5% National Semiconductor lowered Q3 revenue guidance yesterday after the close which has put pressure on the group. SMH –1.5% A merger of equals between MTG +10% and RDN +6% is being received positively which has helped other mortgage insurance related stocks to gains. PMI +6% TGIC +6%

    - Treasury markets opened lower but yields have come off with marginal softness in equities. The 30-year is unchanged yielding 4.905% while the 10-year is near unchanged at 4.804%. Reminder, at 1 PM the Treasury will be announcing the 3-year note auction results. Currency markets have been focused on the Japanese Yen again. Early strength against the greenback looked to push the USD/JPY below the 120 level. The Yen was unable to hold those gains with the pair snapping back above the 120.50 level. The Yen has seen some weakness across the board after US Treasury Secretary Paulson said he has not seen any indication of Japanese intervention and reaffirmed that the Yen reflects economic fundamentals ahead of the G7 meeting. Metal futures were higher early in the session led by Copper +2%. Silver and Gold have given back some of this mornings gains as the Dollar has firmed but both metals are still positive on the day. Crude approached $60 ahead of the open of floor trading but has since retreated back below $59. Natural Gas futures have given back some $0.20 from highs made during electronic trade and currently trade down 1% at $7.54.