Markets are pushed around by a steady stream of inflation data

Discussion in 'Data Sets and Feeds' started by TradeTheNews, Feb 1, 2007.

  1. TradeTheNews

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    US Mid-Morn Recap
    by TradeTheNews Staff

    - The positive momentum that began after yesterday’s FOMC statement continued into today’s session. December Core PCE was reported below estimates at 0.1% while income and spending data was inline. Equities moved to early session highs and treasury yields continued lower as the benign inflation data allayed any fears of the possibility of future rate hikes. A January ISM reading below the all important 50 mark looked to buoy the strength in bonds, but traders seemed to zero in on a higher than expected prices paid component and December pending home sales data that was well ahead of estimates. Even though much of the better housing data can be explained by warmer weather Treasures have dipped into negative territory while equity markets have given back much of their gains. 30-year –2/32 at 4.912%; 10-year –2/32 at 4.818%. The Dollar has firmed with the rebound in yields recouping some losses across the board. Early in the floor session Gold broke through some key resistance. April Gold elected stops above the $661 mark and ran up to levels not seen since late last summer.

    - As usual Google has seen some wild action after reporting last night. Initially it traded lower in the after-market before trading up some $15 this morning ahead of the open on positive broker chatter. It now sits near session lows down $12. The action in the Dow is mixed with advancers slightly leading decliners. Boeing is seeing follow through strength up another $1.50. XOM is posting fractional gains after earrings. HPQ is off more than 2% after DELL cut earnings guidance and announced Michael Dell would assume CEO duties. DELL is still up more than 1% but well off of session highs.