Another Do Nothing Day

[Excerpted from Bill Cara's Daily Report]

Friday was another do-nothing day, pretty much like where the week ended up.

Another small pop at the open was followed by sideways rotating action with some selling into the close. By the bell, the NASDAQ was higher (1,827.47 +19.75 +1.09%), trying to make up for early in the week losses, while trading in the DJIA (8,539.73 -15.87 -0.19%) and S&P 500 (921.23 +2.86 +0.31%) was less than remarkable.

The Toronto Composite (10,287.95 +166.45 +1.64%) and Toronto Venture Board (1,118.80 +4.49 +0.40%) traded higher, but still both down W/W.

Earlier Friday, Austral-Asian markets were moderately higher. Japan’s Nikkei 225 (9,786.3 +0.85%), Shanghai (2,880.5 +0.93%), Hong Kong (17,920.9 +0.81%), Aussie All Ordinaries (3,894.4 +0.18%), and India’s BSE 30 (14,521.9 +1.80%) all closed up on the day, but, with the exception of Shanghai, these too are down on the week.

On the European equity bourses are fairly strong. The French CAC (3,221.3 Jun 19 +0.85%), German DAX (4,839.5 Jun 19 +0.04%) and UK FTSE 100 (4,345.9 Jun 19 +1.52%) were up, but the gain in the DAX was marginal, and prices were marginally softer into the close.

In US trading Friday, the sector that led once again was Financial (XLF+1.3%), while there were three sectors that kept any rally in check: Consumer Staples, Utilities and Energy (XLU-2.3%, XLP-1.8%, and XLE-1.5%).

The leading industry groups were Goldminers and Computer Hardware ($XAU+3.0%, and $HWI+2.8%). Natural Gas was a loser ($XNG-2.3%).

Cara 100s that lifted most were Carnival Cruise, after being up +7.5% the previous day, Dell, Kinross Gold, Diageo, and Silver Wheaton (CCL+7.4%, DELL+5.4%, KGC+4.2%, DEO+4.2%, and SLW+4%). Research In Motion, because of Street talk; not earnings, and Apache (RIMM-4.9%, APA-3.3%) were down.

The $USD was weaker against all the major currencies except the Loonie Friday (80.31 -0.28 -0.34%). The Cdn Dollar (88.11 -0.19 -0.22%), down against the USD was really weak against the other currencies. The Yen (103.86 +0.3 +0.29%), Euro (139.33 +0.27 +0.19%), and British Pound (164.85 +1.47 +0.90%) were stronger against the Dollar.

In US bond market trading, the US Treasuries bounced back on Friday to pretty much close the week flat. Next week’s calendar of substantial offerings of notes in the 2- to 7-year range is very heavy and traders are figuring prices might fall, or else the Fed will have to buy the majority, which could elevate gold in the days following. The US long Bond gained a tad ($USB 116.00 +0.33 +0.28%). The yields for 30-year (4.522 -1.02 -2.21%), 10-year (3.789 -0.45 -1.17%), and 5-year (2.804 -0.34 -1.20%) pulled back a bit from Thursday’s strong gains. Treasury bill yields flat at 0.170, and have been trading in a tight range for an extended period.

$GOLD closed almost flat (934.50 +1.50 +0.16%).

Crude Oil (70.02 -1.89 -2.63%) closed weaker on the day and the week.

The Euro was a tad stronger (1.3948 +0.0056 +0.40%).

US equity futures for the DJIA closed the week down a bit for September’s (8476 -17 -0.20%) and up for June’s contracts (8608.2 +58.2 +0.68%).

Following options expiry today, traders still think there could be a waterfall event in equity markets this coming week or the week after.

News was released that Apple Chairman Steve Jobs received a liver transplant two months ago.