Pre-Market News And Views
The S&P 500 e-mini futures are soaring higher this morning by 15.00 points to 1289.25 per contract as the nuclear reactor situation in Japan seems to be improving. The Asian markets rallied higher overnight with the Hang Seng(Hong Kong) trading higher by 2.72 percent. The highly followed Shanghai Index(China) was higher by just 0.08 percent. It will be interesting to see how the leading commodity stocks will react this morning. Just about every sector or industry group is trading higher ahead of the opening bell at the New York Stock Exchange.
WTI oil is trading higher by $2.05 to 103.89 a barrel this morning. The spike in oil comes as the fighting in Libya increases. Yemen and other nations are now starting to see a flare up in violence. If problems stem to Saudi Arabia it could cause a super spike in crude. Therefore, many traders and investors are walking a fine line when it comes to selling the commodity short. The United States Oil Fund(NYSE:USO)is trading higher this morning by 0.55 cents to $41.53 a share.
Gold and silver are both trading higher ahead of the opening bell as the U.S. Dollar Index makes new 52 week lows. The U.S. Dollar index has declined by 15.00 percent since June 7, 2010. The more money that the Federal Reserve and the other central banks around the world create the higher gold and silver could trade. Remember the U.S. Dollar is the worlds reserve currency and when it declines goods that people need for survival will become more expensive.
In takeover news this morning, wireless carrier AT&T Inc.(NYSE:T) will purchase T-Mobile USA from Deutsche Telekom for $39 billion. Sprint Nextel Corp.(NYSE:S) is selling lower by 0.60 cents to $4.38 on the announcement.