U.S. EQUITIES FALTER ON PROFIT WARNINGS AND SOBERING TREASURY YIELDS
LOOK FOR ROLL TO MARCH EQUITY FUTURES TO BEGIN ON THURSDAY
U.S. equities fell in Tuesday’s session, led by Federal Express, after profit warnings and the latest auction of three-month Treasuries bills, which were sold at a 0% rekindling investor concerns about capital preservation and the economic outlook going into next year. The markets took this as a sobering reminder of the extraordinary desire for capital preservation. Energy and material stocks as oil, copper and the majority of commodities fell today on a resurgence of economic concerns.
Technically, December Dow futures failure to close above the 8800 could be a signal that the market has more downside to come, as this level is setting up as a strong resistance level. Market needs to hold above this level before it can trade higher to the next significant level of 9200. Continued downward sentiment will likely see Dow test the 8600 level. A break through here could see a return to 8200 & retest of the 8000 level.
December Dow Futures settled at 8720, down 155. S&P futures settled at 889.50, down 15.20. NASDAQ futures settled at 1217.00, up 5.00 on some investors finding glimmers of value in beaten down tech stocks. These stocks may find a delayed benefit from global stimulus proposals.
Prepared by Rich Roscelli & Paul Brittain.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities.
