Stock futures are fractionally lower this morning, but below fair value. This has traders looking at a lower open for stocks. S&P futures are currently down 2 points, NASDAQ futures are off 9 points and Dow futures are lower by 13 points. Fair value for the S&P 500 today is $1.62. HL Camp & Company has their computers set for program buying at $2.72 and set for program selling at $0.48.
Bond YIELDS dip near recent lows
Bond YIELDS on some of the major Treasury YIELDS we watch on an hourly and daily basis are nearing their spring lows. The 10- year Treasury Note ($TYX.X) YIELD is falling fractionally this morning to YIELD 4.463% and the 30-year YIELD ($TYX.X) is up fractionally to 5.253%, after falling to a 5.238% YIELD low yesterday. In late March, the 30-year YIELD made a major reversal higher from the 5.217% YIELD level and I think equity bulls will want to see a repeat performance soon. In the last five months, money has poured into the longer-end 30-year driving YIELD down from a high YIELD of 5.901% to current levels.
The shorter-end of the bond market and the 13-week ($IRX.X) is diving this morning to a new YIELD low of 2.00%. Many money market accounts and short-term saving accounts are based off this YIELD and has some investors wondering why money continues to run to the safety of this short-term note if stocks are to be considered a bargain.
Little economic data today
There is no economic data scheduled for today, but traders will get a plethora of data starting tomorrow. Today we may see some continued profit taking ahead of tomorrows economic data, which included ECRI Weekly Leading Index for 09/21/1001, The Conference Board Consumer Confidence for October, GDP for Q3 2001, Chicago PMI for October along with Oil and Gas Inventories for 10/26/01. There will be a lot of data for the market to respond to so keep your stops in place and be willing to book some profits when (long and short) when gains are there.