Equity Futures Rally After Close

James Hyerczyk from ForexHound.com at 10/13/09

U.S. equity futures are trading higher after the close following a better than expected earnings report from Intel.  Throughout the day the markets treaded water as traders were unwilling to commit heavily to either side prior to the release of the Intel figures.  Expectations are for upside momentum to build overnight, leading to a potential gap opening higher tomorrow.

U.S. Treasury markets finished the day better.  Oversold conditions and position evening after last week’s sell-off helped to boost prices today.  Tomorrow U.S. Retail, Business Inventories and FOMC minutes are likely to move the markets.  Bullish earnings from Intel could send T-Bonds and T-Notes lower overnight because of increased demand for higher risk assets.

The U.S. Dollar tried to mount a strong comeback throughout the trading session today but failed near the close when Intel reported the good earnings.  The December British Pound posted a daily closing price reversal which could lead to higher markets tomorrow.  The December Canadian Dollar finished lower but well off its lows following remarks from the Canadian Prime Minister regarding the rapid rise in the currency and its possible negative effect on Canadian exports.

December Gold posted a new all-time high as traders are indicating they expect more weakness in the Dollar.  Although the chart formation suggests a possible break from current levels, so far the fundamentals have supported the rise. 

December Crude Oil rallied on Tuesday.  Expectation of higher global demand if the economy recovers is helping to boost prices.  Short-term, however, supply is a little high.  Tomorrow’s inventory report will set the tone for the rest of the week.