Tech and Oil Services hold down Indices

Discussion in 'Trading' started by TradeTheNews, Jan 18, 2007.

  1. TradeTheNews

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    US Mid-Morning Recap
    by TradeTheNews Staff

    - Bellwether AAPL has given back close to 5% following its earnings release, while disappointing guidance from LRCX –13% has the semis and cap equipment names keeping pressure on the NASDAQ. SMH –3.4% NSM –1.8% BRCM –4% MRVL –3.5% KLAC –5% NVLS –5% AMAT –5% Oil stocks have taken a mid morning dive following the release of the DOE oil inventory data that showed large builds in crude and distillate stockpiles. Feb crude is off more than 3% at $50.45 while the Oil Service Index is down 1.3% Metals futures have come down from their highest levels in conjunction with the sell-off in oil. Feb gold is close to unchanged while March copper is off nearly 1.75%.

    - This morning’s slew of economic data headlined by Dec consumer price data that was pretty much inline with expectations has had little effect on the markets. Better than expected housing starts and building permit figures initially sent Treasury yields to early session highs. Since then Treasuries slipped back to the unchanged level helped in part by erroneous rumors of a military engagement by the US and Iran in the Gulf which were fairly quickly discredited by the US Defense Dept. The US Dollar is advancing against the Yen after the BOJ failed to raise interest rates overnight. The Euro found some footing against the Dollar after it approached the 1.29 level earlier in the session, as there has been talk of Central Banks stepping in below that level.