The Spanish 10 year benchmark bond auction led the day with a higher than expected bid to cover ratio and an average yield of 6.044%. The Spanish auction, coupled with China’s first cut in benchmark interest rates since 2008 helped spark the bullish move in US stocks.
WTI crude oil is up 2 cents and 0.02% at $85.04, while gold and silver futures have been exceptionally bearish. Gold is trading at $1593.50 and down $40.70 or 2.49%, and Silver at $28.56, down 93 cents or 3.15%.
Tempur-Pedic International Inc. (TPX) continued its drop that started yesterday due to its gloomy outlook and is trading at $21.40, down 4.42%, or 99 cents on the day. TPX reached a high of 43.88 on Tuesday before the release of it’s’ earnings report.
Lululemon (LULU) released stronger than expected quarterly earnings, however their projected outlook brought bearish sentiment. Lulu was down 12% in afterhours trading and is trading at $63.88, down $6.14 or 8.77%.
David Cornes holds a degree in Economics from The University of Montana.
Dave@KeeneOnTheMarket.com