Bond & Equity Outlook for May 4

DATA RELEASES 05/04/10

  • 10:00 am US Factory Orders (-0.1%)
  • 10:00 am US Pending Home Sales Index

DATA RESULTS 05/03/10

  • US Personal Income (0.3%/0.4%)
  • US Consumer Spending (0.6%/0.6%)
  • ISM Manufacturing Index (60.4)

US DEBT REVIEW AND OUTLOOK
US Treasuries fell in a quiet trading range as global risk tolerance rebounded in the wake of an agreed bailout proposal for Greece’s fiscal issues and US data on consumer spending and manufacturing gave an optimistic view of sustainable growth. Treasuries were essentially sidelined today as the majority of trading volume was focused in the broad based rally in stocks. Increasing volatility should pick up later in the week as focus turns to May’s payroll and employment data for clues regarding sustainable rebounding in the labor markets

TECHNICALLY SPEAKING, Resistance appears to be holding at the 119-04 level. Should downside momentum gain strength, expect the market to test support at 118-12, with a break of this level setting up downside movement to 117-26. A break of resistance at 119-04 could set up test of 119-15.

US EQUITIES REVIEW AND OUTLOOK
Stocks staged a broad based rally, led by financials and technology companies, as better than expected readings on US manufacturing and consumer spending slingshot the major indices to the upside of their recent trading ranges. Financials gained as flack from the Goldman Sachs investigation subsided while technologies gained led by Apple, which hit a milestone as its new I-Pad (wasn’t the I Pad just released yesterday?) has sold a million units. REITs (Real Estate Investment Trusts) for commercial property gained on expectations of a number of properties being able to find favorable refinancing terms as interest for bargain priced properties continues to gain.

TECHNICALLY SPEAKING, June S&P futures should continue to range trade, Support levels for the contract set up at 1194.50 and 1188.50. Resistance sets up at 1206.50 and 1211.50.

COMMODITY HIGHLIGHTS
Energies rallied on stronger than expected readings on consumer spending and manufacturing showed elements of sustained growth with few signs of inflation pressure. Grains fell on stronger US dollar and bearish planting report.

US DEBT FUTURES

OPEN

HIGH

LOW

CLOSE

CHANGE

US M0 (US 30 YRS)

118-30

118-31

118-15

118-23

-11/32nds

SP M0 (S&P 500)

1188.70

1202.00

1187.30

1198.00

-0.50

Prepared by Rich Roscelli & Paul Brittain. PLEASE VOICE YOUR MARKET OPINIONS, THOUGHTS, AND QUESTIONS. EMAIL TO RICH@BINVSTGRP.COM. Additional Information can be found at WWW.WHITEHALLVEGAS.COM.

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. Whitehall Investment Management, its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.

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