OIL AND GOLD UP AGAIN
Oil prices shot up 2.95% last week to reach $61.14. Gold added 2.14% to reach $683.10. That sent U.S. stocks down; the Dow lost 120 to close at 12,647. However, markets overseas were up. The Nikkei reached a seven-year high at 18,188; the FTSE closed at 6401. The markets in China and Taiwan were closed for the Lunar Year. The dollar slid to $1.3166/€ against the euro and rose to ¥121.09/$, despite the move by the BofJ to raise the rates. Continued suprime troubles and Iran worries drove the Treasurys up slightly; the 10-year yielded 4.678%. The rise in oil prices, if it is sustained, may shave the healthy GDP gains this year, and lets hope that the rise in gold does not augur resurgent inflation pressures. We may end up with slower growth, but more inflation, despite recent rosy Fed pronouncements. On HedgeStreet, oil and gold dominated the volume; silver and the euro were active too. New real estate contracts were introduced.
ECONOMIC RELEASES THIS WEEK:
Tuesday: Durable orders -2%, consumer confidence 109, existing home sales 6.24m.
Wednesday: Q4 GDP 2.4%, deflator 1.5%. New home sales 1.09m. Crude inventories published, prior 3.694m.
Thursday: Income 0.3%, spending 0.4%. Initial claims at 325K. Construction spending -0.4%. Auto sales 5.1m, trucks 7.3m, total down 0.3m. ISM index at 50.0.
OSCARS
Who cares… The 30th annual National Wild Turkey Convention at the Gaylord Opryland Resort in Nashville drew 5,000 visitors. Diamond Rio entertained at the award banquet. Comedian T. Bubba Bechtol and champion caller Preston Pittman attended. A live auction of guns and jewelry was held.
