U.S. Economic Data Disappoints Traders

As the New York market comes to a close we find the metals pretty much reflected a mixed picture in the Oil and Euro markets. The Euro is currently up 18/100ths of U.S cent in the aftermath of a disappointing ADP Payroll Report, and a weaker than expected ISM Services Index. Last on the Euro $1.4428 U.S.

The metals complex mixed and fairly lat. Silver ended with a 10 cent gain at $14.70. Gold eased by $1.00 closing at $964.00. Palladium gave up the morning gains finishing the day unchanged at $277.00. Platinum is trading at $1275.00.

Over in the energies the price of oil had a volatile trading day but is currently flat at $71.31 off 11 cents. Today’s indifference in Crude trading comes on the heels of Oil Inventories which clocked in right on target at up 1.7 million barrels.

Traders are also stepping to the sidelines keeping a wary eye on the Dow which seems to be exhausted. Stock traders expressed their disappointment over today’s U.S economic data with the Dow currently down by 61 points at 9268. The Dow had been down as much as 106 points shortly after today’s housing data hit the tape. Traders will begin making their final portfolio adjustments tomorrow as we get closer to Friday’s Labor Department release of our Non Farm Payrolls report. As for tomorrow the calendar contains one more labor related report before Friday’s main event: Traders will face the Initial Weekly Jobless Claims.

Thursday’s Volatile Market Events:

BANK OF ENGLAND Rate Decision
EUROPEAN CENTRAL BANK Rate Decision

Oil Breaks the $70 Psychological Barrier, Dollar Continues to Slide

The new trading week opens with the metals trading on a positive note. Silver leading the complex. With the U.S economic outlook brightening; commodities across the board are rising in the anticipation of higher demand. Silver is up 28 cents at $14.20. Gold is $2.00 higher changing hands at $956.00. Palladium is $265.00 up $3.00. Platinum is up $6.00 at $1217.00.

Metals are keying off of Oil which has broken through the $70.00 resistance level. Last on Crude $70.01 up another $1.56 per barrel. In the currencies the Dollar continues to slide against the Euro reflecting the rise in Crude prices. Last on the Euro $1.4292 up 32/100ths of a U.S cent.

Over in the stock market the Dow looks about 88 points higher on the growing positive economic sentiment which includes today’s economic data. Traders are anticipating more bad but better economic numbers with June Construction Spending expected to show a decline of .6%; better than the prior month’s decline of .9%. Wall Street also expects to see added improvement in manufacturing when the Institute for Supply Management index of Manufacturing (ISM) reports for the July period. Look for a reading of 46.5 compared to June’s 44.8.

Later today the auto manufacturers will report their July sales. Given the positive response to the Cash for Clunkers stimulus; the Street expects to see a surge in July auto sales. Truck sales are in question. This weeks trading activity will also reflect and lead up this Friday’s U.S Employment data where traders around the world expect to see a sizable improvement in the number of lost jobs. More on that later in the week. On the global front Iran continues to hold mass trials for reformist leaders charging them with attempting to overthrow the current regime.