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Personal income and spending rise

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Personal spending, spurred by new car buying, rose 0.5% in November, the biggest increase since July and was inline with economist's forecasts. Incomes rose 0.3% in November, slightly above the forecasted 0.2% gain.

In October, personal spending rose 0.4%, while personal incomes have risen 0.3% in each of the last four months.

The Commerce Department reported that "real" personal spending, which takes inflation into account, rose 0.5%.

Purchases of durable goods rebounded 1.9% in November after falling 1.3% in October. Commerce officials said increased auto sales accounted for about 1/2 of November's rise and nearly all of October's decline.

Non-durable goods purchases were up 0.4% in November, after rising 0.6% in October. Spending on services was up 0.2% after a 0.3% rise in October.

Later today, at 09:45 AM EST is the second reading on December consumer sentiment from the University of Michigan. It's expected to be little changed or slightly weaker than the 87.0 preliminary report.

February Gold futures (gc03g) $343.70 +0.79% are seeing some upside action in the early morning trade on Iraqi tensions. The Financial Times on Monday, citing U.S. defense officials, reported that a more visible deployment of U.S. troops to the Gulf is expected over the next few weeks, including the deployment of 50,000 ground troops.

Stock futures are off their lows of the morning, but still signal a lower open for stocks as S&P futures (sp02z) trade down 4.3 points at 892.40. NASDAQ futures (nd02z) are off 5.5 points at 1,018, while Dow futures are down 57 points at 8,455.

Fair value for the S&P 500 today is $0.06. That price will not change during the day. HL Camp & Company will have their computers set for program buying at $0.46 and set for program selling at $-2.36. Fair value for the NASDAQ-100 today is $3.90.

Jeff Bailey

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