The market was extremely slow in this pre-holiday trading session. As a result, little should be read in today’s trading activities. For the week, the S&P 500 gained 0.5% with one day’s gain being offset by four days’ losses. The main theme for the week is the weak US dollar and the rise in yields in the treasuries. And that will remain in focus for the upcoming week.
Let’s take a look at the three key indicators: 1. VIX: closed at 32.63 compared to 31.35 yesterday; 2. The euro/yen cross: closed at 132.5 compared to 131 yesterday; 3. The TED spread: closed at 49 bps compared to 49 bps yesterday.
Most major sectors finished the session modestly higher led by basic material and consumer staple. The CRB commodity index rose 0.7%. The US dollar was lower against most major currencies. Treasuries were lower. The three-month US LIBOR was unchanged. The VIX index climbed 1 point. The market breath was neutral on both NYSE and Nasdaq. The volume was lighter compared to the previous session.

The market had a broad sell off on Thursday. However, it managed to close well above the intra-day low and the volume was on the light side. Worries about a potential downgrade to the US’s top AAA credit rating made investors fly way from dollar-dominated assets. Rating agency S&P said earlier that the UK may lose its AAA credit rating. As the US and the UK are facing similar issues cited by the S&P, investors are cautious ahead of the holiday weekend. After the market close, Treasury Secretary Timothy Geithner said in an interview with Bloomberg Television that the administration’s target is reducing the deficit gap to 3% of GDP or smaller compared to a projected 12.9% this year. It should be noted that a weak equity market usually causes money flow into safe-havens such as the dollar and the Treasuries. But that did NOT happen today as the US dollar touched the lowest level of the year in early trading. Treasuries also sold off broadly as investors were concerned about government debt offerings down the road.
Let’s take a look at the three key indicators: 1. VIX: closed at 31.35 compared to 29.03 yesterday; 2. The euro/yen cross: closed at 131 compared to 131 yesterday; 3. The TED spread: closed at 49 bps compared to 55 bps yesterday.
Most major sectors finished the session lower led by basic material and energy. The CRB commodity index declined 1.0%. The US dollar was lower against most major currencies. Treasuries were lower. The three-month US LIBOR dropped to 66 bps, another record low. The VIX index climbed 2 points. The market breath was negative on both NYSE and Nasdaq. The volume was lighter compared to the previous session.

The market gave up its early gains and ended the session modestly lower. Financials, which lead the market up and down in recent months, once again had a big influence in today’s trading. News that Bank of America successfully raised over $13 billion capital gave stocks an early boost. An offering of such size would be unimaginable just one month ago. However, cautious comments from another financial institution, American Express, dragged the sector below the unchanged level for most of the day. Separately, the Fed released the minutes from its last meeting during late April. The Fed officials cut their forecasts of economic growth compared to January meeting. For 2009, the revised view projects the economy will shrink 1.3% to 2% while the unemployment rate will reach a range of 9.2% to 9.6%. The market had little reaction following the release of the Fed minutes.
Let’s take a look at the three key indicators: 1. VIX: closed at 29.03 compared to 28.8 yesterday; 2. The euro/yen cross: closed at 131 compared to 131 yesterday; 3. The TED spread: closed at 55 bps compared to 58 bps yesterday.
Around half of the major sectors finished the session higher led by basic material and energy. On the loser’s list, financials took the lead. The CRB commodity index rose 1.4%. It should be noted that the BDI shipping index has risen for 14 consecutive sessions. The US dollar was lower against most major currencies. Treasuries rallied across the board. The three-month US LIBOR dropped to 72 bps, another record low. The VIX index was little changed. The market breath was neutral on NYSE and negative on Nasdaq. The volume was heavier compared to the previous session.

The market ended mixed on Tuesday following yesterday’s big rally. Overall it was a very quiet session and the VIX, for the first time since September, closed below 30. The latest economic news from the housing front didn’t provide investors with much excitement. Housing starts for April fell to an annual rate of 458K units, a new record low. Economists were looking for a modest increase instead. However, it should be noted that much of the decline was due to a 46.1% plunge in multifamily construction. Single-family homes actually saw an increase of 2.8% in April to an annual rate of 368K. Part of the problem that caused the plunge in multifamily construction is the tightening credit conditions for commercial real estate. In response to that issue, the Fed announced today that it will include legacy commercial real estate assets in the TALF lending program. According to the Fed, the CMBS market has financed about 20% of outstanding commercial mortgages and came to a standstill in mid-2008. Clearly, the Fed is hoping its latest attempt will improve liquidity in that market.
Let’s take a look at the three key indicators: 1. VIX: closed at 28.8 compared to 30.24 yesterday. The last time we saw the index below 30 was September 19th; 2. The euro/yen cross: closed at 131 compared to 131 yesterday; 3. The TED spread: closed at 58 bps compared to 62 bps yesterday.
Most major sectors finished the session higher led by basic material and utilities. The CRB commodity index rose 0.1% The US dollar was lower against most major currencies. Treasuries were little changed. The three-month US LIBOR dropped to 75 bps, another record low. The VIX index dropped 2 points. The market breath was neutral on NYSE and positive on Nasdaq. The volume was on the light side.

The market moved sharply higher on Monday after posting a loss of 5% in the previous week. The rally was partly fuelled by a 17% one-day jump in the Sensitive Index, the benchmark stock index in India. Meantime, the National Association of Home Builders says its housing market index increased for the second month in a row in May to 16, the highest reading since September. Investors are once again finding some fresh reason to believe that the worst of the housing burst is running behind. The financial sector also provided leadership in today’s trading. It should be noted that State Street became the latest financial institution to announce a public offering while its share price surged more than 8%. Similar public offerings by other financial institutions failed to get a warm response just a few days ago.
Let’s take a look at the three key indicators: 1. VIX: closed at 30.24 compared to 33.12 last Friday; 2. The euro/yen cross: closed at 131 compared to 139 last Friday; 3. The TED spread: closed at 62 bps compared to 68 bps last Friday.
All 10 major sectors finished the session higher led by financial and energy. The CRB commodity index jumped 2.1%. The US dollar was lower against most major currencies. Treasuries declined with the yields climbing. The three-month US LIBOR dropped to 78 bps, another record low. The VIX index dropped 2 points. The market breath was positive on both NYSE and Nasdaq. The volume was on the light side.