ETF Range Projections for 1/5

by: Bill Zimmer Monday, January 5th, 2009 at 8:07 am

Lucas Papademos, the number-two official at the European Central Bank, and Janet Yellen, president of the San Francisco Federal Reserve Bank, said over the weekend that they would quickly seek to contain the danger of deflation if it emerges in coming months. Yellen said the U.S. faces a clear risk of deflation: “The odds are high that over the next few years, inflation will decline below desirable levels.”

To keep falling prices from becoming entrenched, the Fed would have to make it clear to the financial markets that such an outcome is unacceptable.

Economic reports today, Motor vehicle domestic sales for November, consensus forecast: 7.4 million-unit rate.  At 10 AM Construction spending will be released, market expectations are for a reading of: -1.3%.

Overseas markets are higher this morning: Nikkei 225 +2.07%,  Hang Seng +3.46%, Shanghai Composite +3.29%, DAX +0.36%, and the FTSE +0.17%.

As of 8 AM the futures were: Dow -40, S&P -6.7, Naz -8.90, Oil +$0.06, and Gold -$25.50.

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Have A Great Day!