Futures jumped about 6 points as both weekly jobless claims and Personal Consumption Expenditures (PCE, an indicator of the average increase in prices for domestic consumption), came in a bit below expectations. The dollar rallied on the PCE news (lower inflation is dollar-positive).
Start of a trend? South Korea's National Pension Service says it will no longer buy U.S. Treasurys; they cite falling yields and a desire to broaden their investments. They are the world's fifth largest pension fund, with $220 b in asets; they hold $14 b in U.S. government debt. It's not the size of their holdings (relatively small compared to the nearly $5 trillion in U.S. debt), the concern is that it may be the start of a trend.
The Fed's Term Lending Facility auction debuts today. Wall Street will have a chance to exchange mortgage assets for up to $75 b of government securities.
The Chicago Mercantile Exchange is raising corn and soybean margins by 50 percent and 30 percent respectively; this should chase out at least some of the speculative interest in these grains, though it will also hurt hedgers as well.
Earnings:
1) Conagra [CAG 21.89 --- UNCH (0%)
] beat for its third quarter and guided earnings above estimates for the remainder of the year, 2009 guidance of "at least $1.55" is close to analyst estimates of $1.61. up 8 percent pre-open. They are selling their commodity trading operations.
2) Home builder Lennar [LEN 17.59 --- UNCH (0%)
3) Williams-Sonoma [WSM 24.99 --- UNCH (0%)
Trader Talk with Bob Pisani - CNBC.com
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