AP: The Commerce Department reported Friday that personal consumption spending rose by a tiny 0.1 percent last month, the weakest gain in six months. It followed a huge 0.8 percent surge in January that had reflected a mild winter that lured shoppers to the stores to spend their Christmas gift cards. The 0.1 percent rise in spending in February was slightly above Wall Street forecasts while the 0.3 percent rise in income growth was a little smaller than the 0.4 percent rise that many economists had been expecting.
Consumer spending is closely watched since it accounts for two-thirds of total economic activity. Disposable incomes, the amount left after paying taxes, rose by 0.2 percent last month after a 0.6 percent January gain. That left the personal savings rate unchanged at a negative 0.5 percent in February, the same as the January reading. The savings rate, the amount left of disposable incomes after spending is removed, has been negative or at zero for 11 consecutive months, a worrisome development at a time when 78 million baby boomers are nearing retirement and should be increasing their savings.
Consumer spending is closely watched since it accounts for two-thirds of total economic activity. Disposable incomes, the amount left after paying taxes, rose by 0.2 percent last month after a 0.6 percent January gain. That left the personal savings rate unchanged at a negative 0.5 percent in February, the same as the January reading. The savings rate, the amount left of disposable incomes after spending is removed, has been negative or at zero for 11 consecutive months, a worrisome development at a time when 78 million baby boomers are nearing retirement and should be increasing their savings.
Oil fears rekindled
Oil prices surged after Iran rejected a U.N. demand to halt uranium enrichment. Light sweet crude briefly hit a two-month high of more than $67 a barrel, before easing down a bit this morning. Analysts warned that the summer driving season could make matters worse. "Gasoline demand is strong and inventories have gone down," said Tetsu Emori of Mitsui Bussan Futures of Tokyo, "so I think prices will keep moving up strongly." The news weighed on stocks, which had already been driven down by a higher-than-expected inflation reading. (CNNMoney.com
Oil prices surged after Iran rejected a U.N. demand to halt uranium enrichment. Light sweet crude briefly hit a two-month high of more than $67 a barrel, before easing down a bit this morning. Analysts warned that the summer driving season could make matters worse. "Gasoline demand is strong and inventories have gone down," said Tetsu Emori of Mitsui Bussan Futures of Tokyo, "so I think prices will keep moving up strongly." The news weighed on stocks, which had already been driven down by a higher-than-expected inflation reading. (CNNMoney.com
macbonzo
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htp80 said:
It's pretty tight. Overall I waould say that the slight fall in $TNX is a positive as is the fall in Crude. That said, because the energy sector is the second largest in the S&P, it is acting as a drag on the market. The S&P is struggling to get positive.
Being the last day of the quarter, I think it may be the case of, keeping things within fairly tight bounds. I don't think too many people will want to load up ahead of the weekend.
I took a few points long on the Dow, but I really don't like a market when one of the indices (S&P) can't get positive.
City Wire Comment
Wall Street has had a tense fives sessions after Federal Reserve chairman Ben Bernanke raised interest rates in his first rate meeting as Fed chairman. Since 23 March the Dow Jones has slipped 35 points to 11,235. Meanwhile, the Nasdaq hit its highest level in five years thanks to a raft of positive broker notes on the technology sector.
Bernanke raised interest rates by 25 basis points to 4.75%. He also hinted that further rate rises could be on the cards. A separate report earlier in the week caused jitters. The Conference Board’s measure of consumer confidence fell from 106.8 to 101.7, its lowest level in four months.
Meanwhile, calls for the Fed to loosen its policy on rates gathered force on the back of Thursday’s data revealing that the US economy grew by just 1.7% in the final quarter of 2005. High oil prices continued to worry as the price of a barrel of US light crude hit seven week highs.
Wall Street has had a tense fives sessions after Federal Reserve chairman Ben Bernanke raised interest rates in his first rate meeting as Fed chairman. Since 23 March the Dow Jones has slipped 35 points to 11,235. Meanwhile, the Nasdaq hit its highest level in five years thanks to a raft of positive broker notes on the technology sector.
Bernanke raised interest rates by 25 basis points to 4.75%. He also hinted that further rate rises could be on the cards. A separate report earlier in the week caused jitters. The Conference Board’s measure of consumer confidence fell from 106.8 to 101.7, its lowest level in four months.
Meanwhile, calls for the Fed to loosen its policy on rates gathered force on the back of Thursday’s data revealing that the US economy grew by just 1.7% in the final quarter of 2005. High oil prices continued to worry as the price of a barrel of US light crude hit seven week highs.
macbonzo
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cabrito said:
BP and Shell account for about 20% of the FTSE 100 weighting. On the Dow (which is a price weighted indice) XOM, has a much smaller weighting. This explains why you can find big discrepancies between the Dow and the S&P. When Crude falls it is good for the market in general, but initially you are more likely to notice the energy sector acting as a drag.
Markets look distinctly undecided at the moment but there is a slight leaning toward the downside. The key imo is the SPX. Holding at around 1300 in the Cash market puts it into a decidedly neutral position. If it rises above 1310 then we could see the Dow rally back to retest 11300. If it breaks down below 1290 (and it came close on Tuesday evening) then we could see a significant retracement back to test 1270 (and probably 10800 on the Dow).macbonzo said:
Pat494
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Takeover battle expected
Glad to see that the London Stock Exchange is confident that it can avoid being taken over by the Republic of Chad's exchange - although Big Willy Looflirpa and the Chadean peanut farmers expect quite a battle !!!!!!!!!!!!!!!!!!!!!
:!:
Glad to see that the London Stock Exchange is confident that it can avoid being taken over by the Republic of Chad's exchange - although Big Willy Looflirpa and the Chadean peanut farmers expect quite a battle !!!!!!!!!!!!!!!!!!!!!
:!:
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JillyB
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houdani said:
Thanks for that - that extra hour on an evening made a real difference.
I like it when things are back to normal.
Dow up at 11,153 now - if it stays like this, I think we could see an up day today. Possibly upward until lunchtime and then a minor reversal in the afternoon.
Jerry Olson
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JillyB said:
Hi Jillyb
the overnight globex futures are always a non event.
when you open your eyes in the am, and the markets opens at 9.30 est USA time then we'll know whats up or down..............
i would suggest that th Nq's or the tech side of the equation is where the true action will be for the next 30 days..
i like the NAZ to run up about 100 points or so, and the Big Cap techs to regain some traction soon
CSCO-DELL-INTC-MSFT- AMAT- etc. they are due for a run soon.
earnings season is here and the street is ebullient with that "hope springs eternal" thinking...
the charts are bullish and so are the P&F bullish percents. this could be one big time surprise to the bears...
have a nice evening