The uprising in the Middle East and North Africa continues to escalate. Countries such as Libya, Iraq, Iran, Egypt, Bahrain, and possibly Saudi Arabia are being effected at this time. Light crude for April delivery is trading at $100.00 a barrel this morning. This has been the level where the stock market has declined and can no longer find buyers to keep it up. Should protesting or more uprisings flare up in Saudi Arabia oil could see a super spike in the short term.
The ADP employment report was released at 8:15 EST. The ADP report says that 217,000 jobs were added last month. This report has had very little effect on the markets as the S&P 500 e-mini futures are trading lower by 1.00 point. Right now the price of oil is driving the stock market. Simply put, when oil trades around $100.00 the stock market retreats.
The Asian markets sold off sharply last night. The Nikkei 225 Index(Japan) lead the decline by trading lower by 2.40 percent. The Hang Seng Index(Hong Kong) traded lower by 1.50 percent. The highly followed Shanghai Index(China) was lower by 0.17 percent. The Shanghai Index will usually effect the major commodity stocks in the United States markets, therefore, today we cannot expect much upside movement at the open. The surprise last night in the Asian markets was in India as the Sensex Index traded higher by 3.50 percent. Traders should watch for a possible move higher in the India Fund (NYSE:IFN) this morning, however, should our market decline today it will drag everything lower in the session. Tata Motors Ltd. (NYSE:TTM) can also be in play this morning as well.
Europe continues to have problems. Portugal is on the verge of being downgraded again this week by the rating agencies. European inflation is also on the rise and this will certainly hurt the Euro-zone countries as energy costs increase sharply. The European Central Bank is likely going to talk tough against inflation, however, will they do anything about it? Europe is trading lower by nearly 1.00 percent across the board. Gold and silver are both making new 52 week highs this morning as fiat money continues to show signs of a failed system. The iShares Silver Trust (NYSE:SLV), and the SPDR Gold Shares (NYSE:GLD) will certainly be in play this morning.
|S&P 500 Gainers & Losers||Price||% Change|
|PPL Corporation (PPL)||25.50||+2.41%|
|Motorola Mobility Holdings (MMI)||30.00||+1.69%|
|Massey Energy (MEE)||62.12||+1.21%|
|Joy Global (JOYG)||94.00||-3.09%|
|Hudson City Bancorp (HCBK)||10.57||-3.05%|