MARKET WRAP: Mortgage finished near unchanged levels but were able to pare losses after news that a new earthquake hit Japan, which drew money out of Stocks and into the Bond markets. The 4% coupon finished at 97.78 up 6bp. The only economic report today showed that Initial Jobless Claims fell 10,000 in the latest week but the news didn’t have much of an impact on trading. Stocks suffered moderate losses after the Japan news as the Dow lost 17.26 to 12,409.49, the S&P 500 lost 2.03 to 1,333.51 while the Nasdaq dropped 3.68 to 2,796.14. Oil settled at $110.30 up $1.47. There are no economic reports set for tomorrow.
MARKET WRAP:Today was fueled by geopolitical news and the Bond was halted by resistance at the 50-Day Moving Average. Oil prices were on a roller coaster ride today trading as high as $103.41 and as low as $95.62 on the geopolitical news out of North Africa. The news went from the extreme that Gaddafi was about to employ chemical weapons to rumors that the dictator had been shot dead. The rumors were unfounded as oil closed near the bottom end of today’s range at $97.28/barrel down 82 cents. The Bond markets were able to push higher on the unrest in Libya as the 4% coupon rose 22bp to 98.28. Stocks spent most of the day well underwater on the Libyan news despite lower Initial Jobless Claims and a jump in Durable Orders but were able to pare those losses. The Dow fell 37.28 to 12,068.50, the S&P 500 Index lost 1.30 to 1,306.10 while the Nasdaq gained 14.91 to 2,737.90. Tomorrow’s economic data includes GDP – 2nd estimate and Michigan Sentiment.
MARKET WRAP: Tensions in the Mideast led investors to the safe haven of the Bond markets today and sent shockwaves through the Stock markets. Libyan dictator Gadhafi tried to cling to power today after a 42 year reign as he tried to push the Airforce to fire on their own people. The 4% coupon surged 53bp to end the session at 98.09, near the highs of the session. Stock markets plunged on the news with the Dow falling 178.46 to 12,212.79, the S&P 500 fell 27.57 to 1,315.44 while the Nasdaq lost 77.73 to end at 2,756.42. Oil prices soared on the Mideast unrest as the problems could disrupt oil flow – Lt. Sweet Crude rose $7.37 to $93.57/barrel for March, which is expiring today. The April contract rose $5.71 to $95.42/barrel, which will be in focus starting tomorrow. Existing Home Sales will be released tomorrow. The Treasury will sell $35B 5-year Notes on Wednesday.