Wednesday, June 24, 2009

Market Reflections 6/23/2009

Existing home sales improved for a second straight month, raising talk that the housing sector may finally be at the bottom. But the news didn't lift spirits which remain flat following yesterday's downbeat assessment by the World Bank. Boeing added its own bad news to the mix, once again pushing back the first flight of the 787. Boeing shares flopped, down 6% at just under $44. The S&P 500 was fractionally higher at just over 895.

Talk that tomorrow's FOMC statement will stress the need for future stimulus, not the need to remove it, pulled the dollar index down 1.2 percent to just under 80.00. The dip increased demand for commodities which regained some of yesterday's losses with oil ending $2-1/2 higher at $69.50. Money moved into Treasuries especially following a very strong auction of 2-year notes. The 2-year yield ended at 1.10 percent -- 5 basis points lower than the auction's high yield and 8 basis points from the 1:00 bid.

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