Markets looked for direction this morning as the Dow traded a tight range over the 10700 support level, investors are showing some reluctance to move higher. Economic numbers today were good, however we need to move up to 10800 or we expect the market to drift in the afternoon.

Meanwhile, the dollar was lower against the yen but strengthened against the euro as growing indications that Greece may turn to the International Monetary Fund rather than fellow euro-zone nations for support helped drag the euro lower.

In other markets, crude-oil prices edged down but remained above $82 a barrel, while gold futures rose. Treasurys slipped, with 10-year note off 2/32 to yield 3.647%.
Thursday morning, the Labor Department said initial claims for jobless benefits fell by 5,000 to 457,000 in the week ended March 13, while economists had been expecting a drop of 7,000. Total claims lasting more than one week, meanwhile, increased moderately.

A separate report showed U.S. consumer prices were flat in February compared with the previous month as higher car prices were offset by lower energy costs. Core consumer prices, which strip out volatile energy and food items and are more closely watched by the Federal Reserve, were up by a monthly 0.1% in February. Economists were expecting an increase of 0.1% in both the headline consumer price figure and the core consumer price index number.

The consumer price report comes a day after data showed producer prices dropped in February. Investors have viewed both reports as evidence that the Federal Reserve can keep supporting the economy with record-low interest rates. Wednesday’s producer-price data and continued relief over the Fed’s Tuesday vow to keep rates near zero helped push the Dow to a 17-month closing high on Wednesday.

On the corporate news front, FedEx slipped 2.6% as the shipper’s finance chief said the company would reinstate “various employee compensation programs, which will dampen earnings growth in the fourth quarter” and the coming fiscal year. The company’s fiscal third-quarter earnings more than doubled, topping the company’s own estimates.

Shayne Heffernan www.livetradingnews.com

Posted by Shayne Heffernan on Mar 18th, 2010and filed underLatest News, USA.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site