M A R K E T .. S N A P S H O T -- Bracing for some modest downside
Markets to focus on data, Greenspan remarks
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 7:30 AM ET May 25, 2001
NEW YORK (CBS.MW) -- Action in the futures markets are pointing to some modest downside at the open Friday in what traders expect to be an extremely light volume session ahead of the long weekend.
June S&P 500 futures erased 1.50 points, or 0.1 percent, and were trading roughly 2.50 points below fair value, according to HL Camp & Co. And Nasdaq futures slipped 3.00 points, or 0.1 percent.
With one eye on the upcoming Memorial Day Holiday, investors aren't likely to generate many waves in the marketplace Friday. The stock averages have spent most of the week within the tightest of bands in the absence of additional catalysts to bring in fresh buyers.
The market will get to react to remarks from Alan Greenspan Thursday evening before the Economic Club of New York. The Fed chief said the economic slowdown hasn't yet run its course and that the central bank is ready to step in and slash rates again if needed.
"The period of sub-par economic growth is not yet over, and we are not free of the risk that economic weakness will be greater than currently anticipated, requiring further policy response," Greenspan said in his prepared remarks.
In the Treasury market, investors bid up prices as they took comfort in Greenspan's words after crumbling late Thursday in the aftermath of hawkish comments from Fed Governor Laurence Meyer.
The 10-year Treasury note tacked on 7/32 to yield ($TNX) 5.46 percent while the 30-year government bond added 11/32 to yield ($TYX) 5.82 percent.
The Treasury market will observe an early 2 p.m. close Friday.
After a painfully slow data week, the market will finally get some fresh numbers to crunch: April durable goods orders, seen falling 2.3 percent, April existing home sales, expected to come in at a 5.28 million rate, the May Michigan consumer sentiment index, seen coming in at 92.7, and the revision to first-quarter gross domestic product. View Economic Preview and economic calendar and forecasts.
Checking the currency market, dollar/yen put on 0.6 percent to 120.53 while euro/dollar edged down 0.1 percent to 0.8568. |
