Bargain Hunters Jump In

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Includes: DIA, GLD, OIL, QQQ, SPY, UDN, UUP, XLE, XLP, XLV
by: Bill Cara

[Excerpted from Bill Cara's Daily Report]

After opening roughly -1% weaker, bargain hunters began taking advantage of the 2-day -4% sell off, with the broad market trudging higher for the remainder of the session, closing near the best levels of the day (S&P + 0.26%).

With the different spin this week, the S&P 500 (898.72 +2.30 +0.26%) and the DJIA (8,324.87 +44.13 +0.53%) eked out some gains after the early selling, but the NASDAQ (1,787.40 -9.12 -0.51%) lagged, closing lower.

There were no remarkable gains in the leading sectors, although Consumer Staples (XLP +2.1%) benefited as a safe haven play, and healthcare (XLV +0.8%) was up as well. The losers were Energy (XLE -1.0%) and Basic Materials (XLB -0.8%).

The Cara 100 tables are incorrect again – it’s a data source issue. Sorry.

Monday with Commodity prices getting hammered, it follows that the Toronto markets got hammered as well. The Toronto Composite (10,027.43 -255.67 -2.49%) and the Toronto Venture bourse (1,064.63 -28.33 -2.59%) were both down about -2.5% on the session.

Earlier Tuesday, Austral-Asian markets were soft. Japan’s Nikkei 225 (9,647.8 -0.34%), Aussie All Ordinaries (3,767.8 -0.43%), China (3,089.5 -1.13%), and Hong Kong (17,862.3 -0.65%) were all down. India (14,170.5 +0.90%) regained a small bit of the prior day’s reactionary loss after the too-soft budget was delivered.

The European equity bourses are a tad higher in morning trading today. The French CAC (3,100.8 7:48AM ET +0.61%), German DAX (4,687.2 7:33AM ET +0.76%) and UK FTSE 100 (4,226.6 7:33AM ET +0.76%) were all up.

In USD trading on the Wednesday, the trade-weighted $USD index (80.45 +0.18 +0.23%) gained, and so did the Yen (104.85 +0.61 +0.59%) and Loonie (86.25 +0.17 +0.20%). The Cdn Dollar recovered a bit of the prior day’s extreme loss. The Euro (139.83 -0.18 -0.13%) and Pound (162.85 -1.02 -0.62%) were the losers against the US Dollar yesterday.

In so-called fixed income trading, the US long Bond was a tad weaker ($USB 118.83 -0.11 -0.09%). The Treasury yields for 30-year (4.351 +0.34 +0.79%), 10-year (3.506 +0.11 +0.31%), and 5-year (2.394 -0.30 -1.24%) all lifted. The Treasury bill yield was unchanged at 0.155.

$GOLD continued to fall (924.90 -4.60 -0.49%), but the loss was minimal.

Crude Oil was much weaker again (64.05 -2.68 -4.02%), which was a fourth straight daily decline in prices.

Tuesday morning in the commodities and futures markets, Spot gold, palladium, platinum and silver are higher: (931.09 +6.19 +0.67% 07:50am ET); (243 +4 +1.67% 07:47am ET); (1149.0 -5.0 -0.43% 07:50am ET); and (13.325 +0.045 +0.34% 07:50am ET), respectively.

The Euro was a tad stronger (1.4029 +0.0069 +0.49% 07:35am ET).

Crude oil was also stronger (64.78 +0.73 +1.14% 07:35am ET).

The equity market has just opened with marginal weakness. The goldminers are up a bit.