ALARON LAS VEGAS US EQUITY FUTURES REPORT 04/08/2009
US EQUITIES POST GAINS. TECHNOLOGIES LEAD MARKET HIGHER DESPITE CONFIRMATION OF FOMC GLOOMY FORECAST. .
US Equities posted gains, led by technology and commodity stocks, as equities found support from overnight downward pressure, after the US Government announced an extension of TARP (Troubled Asset Relief Program) funds to insurance companies and two major US homebuilders set forth plans to merge helped rally equities from overnight lows created from a worse than expected earnings report from Alcoa, the aluminum producer and leadoff for earnings season.
Early gains in equities were fueled by a better than expected reading on US Wholesale Trade. The figure showed that inventory was coming off producers shelves at nearly doubled the expected rate. This represents the first pickup in nearly 6 months. Energy and commodity stocks recouped recent losses after the EIA energy report showed a less than expected build in crude oil stocks. This helped rally the price of oil back above $50.00 and revitalized and number of commodities off of historic lows. Insurers rallied after the government reported that TARP funds could be extended to insurance companies that have holding banks as part of their asset base. Market gains retreated in the afternoon as the release of FOMC minutes showed the Federal Reserve downgrading its forecasts for a possible late 2009 recovery and showing a rare united front with regards to meeting the challenge of the US and global economic crisis aggressively. Stocks rebounded near the highs of the session as buyers found value particularly in the cash rich tech sector.
Technically, June Dow Futures traded quietly within a tight range. Market continues to skirt the high end of overbought indicators. The market appears to be setting up for a pullback to 7550, with additional support at 7420. Initial resistance should be met near the 7880 level, with upward breakout level at 8104.
|
EQUITY RANGES |
OPEN |
HIGH |
LOW |
CHANGE |
|
|
DJM9 (JUNE DOW) |
7755 |
7840 |
7700 |
7793 |
+31 |
|
SPM9 (JUNE S&P) |
816.20 |
825.00 |
811.00 |
822.60 |
+8.60 |
|
NDM9 (JUNE NASDAQ) |
1288.00 |
1306.00 |
1278.00 |
1298.50 |
+17.75 |
Prepared by Rich Roscelli & Paul Brittain.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
