Market Update 9/25/06

[dibsy]

Equities and Treasuries rallied as a key data release indicated economic demand may not be slowing as rapidly as expected. Existing home sales came in higher than expected at 6.30mm (vs. 6.20mm) homes sold, while home sales decreased -0.5% (less than -2.1% expected) from the prior month. The FRB Dallas President Fisher made comments suggesting inflation risks still outweigh those for economic growth and continued inflation would have to be combatted with further policy tightening. However, Fisher toted the party line that "moderation in economic growth appears to be continuing, partly reflecting a cooling of the housing market". The S&P closed at the highest level since February 2001 and the 10-year Treasury yield ended the day 2bp lower at 4.55%.

The Homeland Security department has said that passengers will be able to board planes with most gels and liquids purchased inside the security checkpoint area as well as with a small amount of travel-sized toiletries. US District Judge Weinstein has helped delay the restructuring of Altria Group (spinning off its Kraft Foods unit) by forcing Altria's Philip Morris unit to defend a class-action lawsuit filed on behalf of "light" cigarette smokers claiming $200bn in damages.

In other news, Warren Buffett's eBay auction of a Lincoln Towncar as well as his personal chauffeur services has come to a close with the winning bidder paying $73,000. Buffett will donate all the proceeds to an organization whose purpose is to encourage math and science education, and other things, to young women. Finally, Week 3 of the NFL has almost come to a close with the Denver Broncos finally showing up in 2006 to beat the New England Patriots at home. Other Week 3 highlights: The Seattle Seahawks dismantled the New York Giants 42-30 (including a 42-3 lead at one point), but have lost tailback Shaun Alexander indefinitely to a foot fracture; Baltimore (with 12 unanswered 4th quarter points), Chicago (scored a TD with under two minutes left), Carolina and Miami (with late field goals) all staged late game comebacks to chalk up wins in Week 3.

US Treasuries at 8am
5-year 4.53%
10-year 4.57%
30-year 4.72%

US Treasuries at 5pm
5-year 4.51%
10-year 4.55%
30-year 4.69%

Equities at Close
DJIA 11576 [+68pts, +0.59%]
S&P 500 1326 [+12 pts, +0.88%]
Nasdaq 2249 [+30 pts, +1.36%]

[Sniper]

dibs,

Just wanted to say that I think a daily market summary is a useful addition to the forum, and hope you keep it up! [img]/images/graemlins/smile.gif[/img]

[Dazarath]

[ QUOTE ]
dibs,

Just wanted to say that I think a daily market summary is a useful addition to the forum, and hope you keep it up! [img]/images/graemlins/smile.gif[/img]

[/ QUOTE ]