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U.S. Earnings Reports Help Stock Indices Overcome Earlier Weakness

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Oct 22, 2009.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
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    Today’s sample of Futures Analysis from FuturesHound.com

    Early session weakness triggered by follow-through selling from yesterday and today’s worse than expected initial claims report failed to keep equity prices down. Traders bought up shares early in the trading session as better than expected earnings reports from Traveler’s and McDonald’s increased trader demand for risky assets. Today traders continued their pattern of buying on weakness as this market once again showed no sign of a let up.

    Treasury futures see-sawed most of the day, before finishing lower. The December Treasury Bonds and Treasury Notes felt pressure from the opening as traders began to price in next week’s auction. The weaker than expected initial claims report helped the markets erase some of their gains but the T-Bonds and T-Notes never really got on track.
    Traders are expecting market participants to ask for higher yields next week in order to be competitive with recent gains in the equity markets.

    The U.S. Dollar finished mixed against a basket of currencies today. The strong rally in the equity markets helped to erase losses in both the December Euro and December British Pound. Traders were focusing on a stronger Dollar this morning as news out of China indicated that the government may begin to cutback on its stimulus spending. This news sent the Dollar higher against most currency markets. The news out of China should continue to weigh on traders’ minds; however, earnings news is expected to triumph over economic news until earnings season is over.

    Read full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

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