Wall Street eked out a tiny gain Tuesday, outflanking losses on the S&P 500 and Nasdaq Composite, as investors dumped energy and materials stocks and headed for the safety of bonds and telecommunications companies. The Dow Jones Industrial Average finished higher by just 0.15 point to 12,807.51. The Standard & Poor’s 500-stock index shed 4.60 points to 1,356.62 while the Nasdaq Composite index declined 22.46 points to 2,841.62.
Investors took cheer in a surprise jump in factory orders, which climbed for the fifth consecutive month in March after the previous month’s numbers were revised sharply upward. Capital spending by businesses also surged as manufacturers sold to overseas markets amid weakness in the dollar.
The dollar continued to weaken against the euro and the yen, though it was up sharply against the British pound. Silver tumbled 7.6%, while gold futures fell 1.1%.
Crude-oil futures settled 2.2% lower Tuesday, dragged down by a selloff in silver futures and pressured by a stronger dollar for most of the session. Crude for June delivery declined $2.47 to $111.05 a barrel on the New York Mercantile Exchange. Oil traders are spooked about the big selloff in silver. The move may have instilled fears of similar margin increases for oil. A decline for silver, which has a variety of industrial applications, may also have brought back to mind concerns of an economic slowdown.
Today’s Important Economic Announcements (GMT)
6:00 AM GBP Nationwide HPI m/m
8:30 AM GBP Construction PMI & Net Lending to Individuals m/m
9:00 AM EUR Retail Sales m/m
12:15 PM NZD ADP Non-Farm Employment Change
2:00 PM USD ISM Non-Manufacturing PMI
2:30 PM Crude Oil Crude Oil Inventories
8:00 PM USD FOMC Member Fisher Speaks
10:45 PM NZD Employment Change q/q & Unemployment Rate
Yesterday, Natural gas futures were down for the first time in four days on Tuesday, as investors cashed out of the market to take advantage of a rally that took prices to a 14-week peak. U.S. natural gas supplies totalled 1.685 trillion cubic feet in the week ended April 22, 0.6% below the five-year average and 11% below 2010 levels, the widest year-on-year deficit since early August 2008. Gas use typically hits a seasonal low with spring’s mild temperatures, before warmer weather increases demand for gas-fired electricity generation to power air conditioning. On the New York Mercantile Exchange, natural gas futures for June delivery traded at $4.667 during U.S. morning trade, dropping 0.68%. It earlier fell to a daily low of 4.659 per million British thermal units. Look for this trend to continue today.
Stop Loss: 4.72
Take Profit: 4.59
Gold futures were down for a second day on Tuesday, while silver futures added to the previous day’s losses as the U.S. dollar rebounded from a three-year trough and India raised interest rates to curb inflation. On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded at USD1,538.25 a troy ounce during U.S. morning trade, falling 0.47%.It earlier fell as much as 1.2% to USD1,526.65 a troy ounce, the lowest price since April 29. The U.S. dollar found support as risk sentiment weakened amid fears of reprisals after Sunday’s killing of Al Qaeda leader Osama bin Laden. Traders should remain cautious when buying or selling gold. It would be best to wait for the bulls to show themselves, thus providing us with a good opportunity to enter short positions.
Stop Loss: 1,550
Take Profit: 1,513
Euro showed little reaction against the dollar on Tuesday after Portugal reached an agreement with European Union (EU) and International Monetary Fund (IMF) on a three-year bailout loan. Earlier in the day, the single currency was under selling pressure following the sharp retreat from Monday’s 17-month high of 1.4903 and although renewed selling interest at 1.4845 pushed price to an intra-day low of 1.4755 in European morning, euro rallied from there and eventually climbed to 1.4890 in New York morning before retreating again. Portugal’s Prime Minister Jose Socrates was quoted as saying that ‘Portugal reached an agreement with EU/IMF on bailout loan. For today, we are expecting the Euro to drop slightly. Make sure your take profit is not set too far.
Stop Loss: 1.4841
Take Profit: 1.4790
Published by www.SolidityBrokers.com