Friday, August 14, 2009
Market Reflections 8/13/2009
The cash-for-clunkers program packed less of a belt than was expected, making for a grim retail sales report that showed declines across components. But the disappointment was offset by stable jobless claims data and positive GDP readings, not negative readings, out of Germany and France. Strong earnings from Wal-Mart didn't hurt. The S&P 500 rose on day, gaining 0.7 percent to 1,012. The strength in Europe made for losses in the dollar with the dollar down 0.5 percent to 78.43. Copper, driven by Chinese stockpiling, is taking the lead in the commodities group, ending at a 2009 high of $2.88 for a 10 cent gain. Other commodities also held firm. The Treasury, despite its massive debt, wound up another successful quarterly refunding with strong demand for 30-year bonds where the yield fell 12 basis points on the day to 4.42 percent.