The S&P 500 Index e-mini futures (ES M1) are trading lower this morning by 7.00 points to 1312.50 per contract. The decline in the futures comes after Alcoa Inc.(NYSEAA) reported earnings last night and missed analysts estimates. Alcoa stock is trading lower by 0.77 cents to $17.00 a share. The major stock indexes are finally starting to pullback a little after the huge rally from the March 16, 2011 pivot low.
The Asian markets all declined lower last night. The Nikkei Index (Japan) finished the session lower by 1.70 percent. The Japanese government reported that the nuclear reactor problem has increased from a level 5 to a level 7. Many experts are now comparing this disaster to the Chernobyl disaster in April 1986. The Shanghai Index (China) performed the best last night ending lower by just 0.05 percent. The Shanghai Index seems to be the one index that the stock market in the U.S. reacts off of the most. The Hang Seng (Hong Kong) was lower by 1.34 percent. The Sensex Index (India) closed lower by 0.97 percent making it two consecutive declines.
Gold and silver are holding steady this morning after a staging sell off yesterday. Both metals remain in an uptrend at this time, however, many talking heads in the financial media continue to call these precious metals a bubble. That does not seem to be the case as most of the public does not own any gold or silver besides their jewelry and silverware. However, corrections are certainly possible when the run ups in these metals have been very strong over the past two months. Until these metals decline further, yesterday was nothing more than a pullback day in an uptrend. The SPDR Gold Shares (NYSE:GLD) are trading higher 0.30 cents to $142.94 an ounce. The iShares Silver Trust (NYSE:SLV) is trading higher this morning by 0.63 cents to $39.84 a share. As long as central banks continue to create money at alarming rates gold and silver can be bought on pullbacks.
WTI oil is trading lower again this morning by 0.47 cents to $109.45 a barrel. Yesterday oil staged a strong pullback closing lower by more than $3.00 and under the psychological $110.00 level. Libya, and the rest of the Middle East remains in turmoil. The cease fire agreement that was supposedly made yesterday between Qaddafi and the rebels lasted about ten minutes before fighting began. Oh well, it was good for a quick oil pullback. Anyone that has ever followed the problems in the Middle East and Northern Africa should know that the situation there does not end quickly.