Good Morning Traders,US Market Report:Stocks declined for a...

Good Morning Traders,

US Market Report:

Stocks declined for a second straight session Wednesday as oil prices surged to briefly cross the $100 per barrel mark amid mounting turmoil in Libya.

The Dow Jones industrial average fell 95 points, or 0.8%, a day after the blue-chip index plunged nearly 180 points. Tuesday's drop was the biggest one-day decline for the blue-chip index since November. Both indexes were dragged lower by a 11% tumble in shares of Hewlett Packard. Late Tuesday, the computer company issued a disappointing outlook and quarterly sales figures.

Oil prices continued to climb, jumping more than 4% to $100 a barrel for the first time since October 2008 amid talk of production disruptions. The North African country is the first oil exporting nation to be affected by the unrest sweeping across the Arab world.

Libya oil production grinding to a halt: While it only contributes about 2% of global output, analysts are worried about the violence and chaos spreading to Libya's bigger exporting neighbors. "Investors are watching what's happening across the Middle East, and waiting to see if more dominoes will fall," said Ron Kiddoo, chief investment officer at Cozad Asset Management. Traders are keeping a particularly close eye on oil-rich Saudi Arabia, where King Abdullah announced a series of measures worth billions of dollars Wednesday in an effort to ward off the kind of revolts that have roiled the region. [Source: cnnmoney.com]

Market Reflections - Wednesday, 23rd February, 2011

Oil moved $5 higher, touching $100 before ending just under $99 as civil war unfolds in Libya and unrest deepens in Yemen and Bahrain. Spikes in oil prices are closely associated with economic recession, a factor that is clouding the economic outlook and diminishing the importance of current economic data. The Dow fell nearly one percent to 12,105 bringing its two day losses to nearly 2-1/2 percent.

Demand for the safety of Treasuries eased following weak results at the monthly 5-year auction where the yield rose three basis points on the day to 2.16 percent. The dollar is not being sought as a safe haven during the crisis, falling another half percent to bring its two day losses to 1.2 percent. In contrast, gold is being sought out, hitting $1,415 before easing back to $1,410 for a $10 gain on the day. [Source: bloomberg.com]

Market Focus in the US this evening

Given economic damage from high oil prices, current economic data are diminishing in importance. Focus is on oil. [Source: bloomberg.com]
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The DJIA Index finished the last trading session: Down 107.01 points; and
The SPI Futures are currently: Down 23 points atm.
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Of note in the US this evening:

Durable Goods Orders [ Market moving indicator]

Jobless Claims [ Market moving indicator]

New Home Sales [ Market moving indicator]

EIA Petroleum Status Report [ Merits extra attention]

James Bullard speaks
[St Louis Federal Reserve Bank President - Speech on the monetary policy outlook before the Bowling Green Area Chamber of Commerce in Bowling Green, Kentucky. ]

...AND...

Of note in Australia today:

Conference Board Australia Leading Index (Dec) [ Merits extra attention]
[The Conference Board Australia leading Index released by the Conference Board measures future trends of the overall economic activity including employment, average manufacturing workweek, initial claims, permits for new housing construction, stock prices and yield curve. It forecasts short to mid-term growth in the Australian economy. Generally, a high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).]

Private Capital Expenditure (Q4)
[The Private Capital Expenditure released by the Australian Bureau of Statistics measures current and future capital expenditure intentions of the private sector. It is considered as an indicator for inflationary pressures. A high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or bearish).]

[Sources used: bloomberg.com; dailyfx.com; fxstreet.com; nasdaq.com]
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Gold is currently trading Up $12.70 & is sitting at US$1,411.70/oz atm [Source: Kitco]
Oil is currently trading Up $2.68 & is sitting at US$98.10/bbl atm [Source: Bloomberg]
The Dollar: The AUD is currently trading @ $1.0037c against the US Dollar [Source: Forex. Live]
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Have a great day trading today all.

Cheers, Tweets

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