DIA +.03%, SPY +.14%, QQQQ +.01%
10-year Treasury up slightly yielding 4.59%
The market rallied after the opening on GE's strong earnings guidance. Furthermore, the weak Durable Goods Number decreased inflation fears. But the market sold-off at the end as traders grew wary of holding positions going into a long holiday weekend. Here's a good rule to remember about Wall Street: They like their long weekends and don't want to worry over them. In addition, the market is clearly looking for direction right now and can't seem to find it yet.
The 10-year Treasury closed up slightly, yielding 4.59%. The Treasury market closed early going into the long-weekend. Like stock traders (who most bond traders loathe and consider lesser creatures of the street), bond traders were in the office today not to trade but to catch-up on paperwork.
The dollar was up slightly versus the Yen and .32% verses the Euro. The dollar is in firm 1-week long rally verses both currencies. Dollar/Euro traders are pushing the dollar higher believing the US economy will grow faster than the European economy. The long-term structural problems (the twin deficits) are currently in the background.
Oil increased 2% today, closing at 54.84/bbl. The news of a refinery in Houston (my home) raised concern there would be a refinery shortage over the summer. This is a crucial time for the gasoline market, as some families drive on their summer vacation. This is another example of how tight the supply situation in the oil market is. When a single refinery has a problem, the market rallies on supply fears.
The Census Bureau reported "New orders for manufactured durable goods in February increased $0.6 billion or 0.3 percent to $200.8 billion, the U.S. Census Bureau announced today. This followed a 1.1 percent January decrease."
This number came in lower than expected. Last months number showed a 1.1% decrease. However, the number did decrease the inflation fears somewhat.
The Department of Labor reported that "In the week ending March 19, the advance figure for seasonally adjusted initial claims was 324,000, an increase of 3,000 from the previous week's revised figure of 321,000. The 4-week moving average was 321,750, an increase of 3,500 from the previous week's revised average of 318,250."
This number may be ticking up slightly. However, it is still at a level where economists can say employment is growing.
New home sales increased 9.4% last month. There was a big increase in the midwest and the northeast. This indicates that severe weather had a 1 month negative impact on the market.
The markets will be closed tomorrow in observance of Good Friday.