The dollar’s down, gold’s up, and Kraft finds it’s not just stealing candy from a baby. It’s tomorrow’s news today.
Archive for September 8th, 2009
US stocks rise, as the risk trade comes back after a long weekend in which the G20 reasserts its commitment to a fiscal backstop for the economy, and crude jumps above $71 even as gold hits $1,000.
DJIA rises 56 (0.6%) to 9497, S&P 500 gains 9 (0.9%) to 1025, Nasdaq Comp adds 19 (0.9%) to 2038. Energy, materials, industrials lead the way.
The risk trade’s fingerprints can be seen across asset classes. Dollar gets beaned as euro hits $1.45 and the dollar index slides to a 12-month low, and Treasurys fall after a mediocre three-year auction. Elsewhere, consumer credit contracted a record $21.6B in July. It’ll be hard for the economy to recover if consumers aren’t spending.
Now, gold’s move to $1,000 is a big round number that garners a lot of attention, but it’s hard to say yet what it means. Seems like gold’s been sitting in the $900 range for a long time, with occasional forays into the low-$1,000 range. So before you smack yourself on the forehead and say “why didn’t I listen to G. Gordon Liddy,” wait to see if gold can hold $1,000.
Posted by Steven Russolillo
on September 08, 2009
Dow Jones Industrials, Economic Indicators, Economy, Markets / 3 Comments
Dow Jones Industrials, Economic Indicators, Economy, Markets / 3 Comments
Autumn's here; those green shoots don't have much time left to produce something.
As investors return to work after the long Labor Day weekend and say goodbye to summer, it’s time to seriously question the sustainability of this six-month stock-market rally.
Sluggish summer trading and light volume meant the market didn’t trade with any conviction, at least throughout the last few weeks. But investors typically return from Labor Day and use the next few days to reassess their portfolios, determine where to take profits and position themselves for year’s end and the following year.
With the Dow up nearly 44% since early March, and September historically the market’s worst month, it may be tough for stocks to add on to their big run, at least in the short-term. From WSJ:
Cash for gold seems to be doing pretty well these days also.
Gold futures trading above $1,000 an ounce is hogging all the headlines, but hold the cheering, at least for now.
All the attention surrounding the metal passing the $1,000 level is “meaningless,” as investors should focus on $1,033.90 – the recent high set in March 2008 – as a more important level to watch, says FusionIQ CEO Barry Ritholtz.
People focus too much on round numbers like 10000 on the Dow as well as S&P 500 and gold each crossing 1000. But gold breaking through $1,033.90 and setting a new high on a closing basis is more technically significant, Ritholtz writes.
“I would be more inclined to buy a close over $1,040, as proof that gold has broken out for real,” he says.
Nevertheless, gold hit its highest levels since February amid speculative buying and inflation worries, all while the dollar dropped to its lowest level this year. December gold was recently up $8.80 at $1,005.50 an ounce.
Dow Jones’ Al Lewis reminiscences on Fannie and Freddie on the first anniversary of their sort-of government takeover.
Here’s your money quote, in case you don’t have the three minutes to invest: “It’s an ongoing disaster.”
Well, Mr. Market seems well rested and ready to get back at it. US stock futures pointing to a sharply higher opening, and other assets are on the move as well.
Crude’s higher, back near $70/barrel, and gold crossed $1,000/ounce. That last number ought to get some people’s attention. G20 ministers pledged to keep their stimulus in place, and while most people are celebrating that, how good can it be if not a single nation feels its economy is strong enough to swim on its own.
Cadbury’s takeover fight with Kraft has some folks excited.
S&P futures up 10.20, DJ futures up 80. Ten-year down a bit, yield at 3.45%.
