NEWS / Foreign Exchange

Indices look to close the quarter on a positive note as markets digest a full docket of data/news

Feb PCE data was inline to slightly ahead of expectations but had little overall impact on equity and treasury futures before the open.  Equities opened flat to higher while Treasury yields drifted lower.  Shares of CAT +1.6% have stayed strong since the open after it was added to the CSFB focus list.  Early strength could also be found in ethanol and select food stocks as the USDA prospective plantings report confirmed a large increase in intended corn plantings.  Corn futures are down $0.20 at $3.74.  PEIX +1% ADM +2/2% MGPI +2.7% TSN +3% SFD +3% Just before 10 AM the Chicago PMI was reported at its highest level since April 2005.  The S&P futures rallied 5 handles on the news while Treasury futures came under some pressure.  Short-term maturities are feeling the brunt of the selling leading to compression along the curve.  2-year ??“2/32 at 4.616%; 10-year ??“5/32 at 4.664%; 30-year -2/32 at 4.848%  The Dollar firmed on higher yields following the PMI data, but has since come off those levels after the US Commerce Dept. said they would allow import duties on certain Chinese paper products.  The EUR/USD is making new session highs at 1.3349.  Crude is in the middle of today??™s range but continues to hold onto recent gains from the Iran/UK saga to trade close to unchanged on the day at $66.  Copper made new multi-month highs and trades up 1.6% to 3.1375.