Stocks Continue to Tick Higher Before PPI and Fed Speak
Despite yesterday’s news that housing starts fell nearly 6% in February (led by weakness in multi-family starts), stock markets managed to move upwards yesterday and this morning that upward trend continues. Sentiment was in part bolstered from the language of the FOMC statement, wherein the central bank said it would maintain “low levels of the federal funds rate for an extended period” and the “labor market was stabilizing”.
Two hours before the opening bell, Dow futures are up 30 points to 10,654 and S&P 500 futures are 3.75 points higher at 1,158.50.
With equities up, the US dollar is looking weaker. Meantime, the Euro rose overnight and the pound was the top performing currency.
Commodities are also heading upwards with WTI crude oil 79 cents higher at $82.49 per barrel and Spot Gold up $3.90 to $1,131.60. Later today the US Energy Information Administration will release the latest inventory report.
Speaking yesterday, Treasury Secretary Timothy Geithner reiterated there was “no way” Moody’s or other credit rating agencies would downgrade the triple-A status of the US.
“There's no way that's going to happen,” Geithner said according to Reuters, adding that the administration was working to lower the deficit “dramatically” over the next five years.
“There's not a chance that that's going to happen to this country but it's very important for people to recognize that … this recovery will be weaker if we don't do a better job together over time of demonstrating that we're going to have the political will to make tough choices.”
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