Market Update

Tuesday, March 27, 2007
By Benjamin Train

U.S. stock futures fell sharply following a spike in crude oil futures after the market close on Tuesday. U.S. crude for May delivery soared to $68.09 a barrel, up $5.18 on rumors about Iran, traders said. The U.S. Navy said it had no information to substantiate a market rumor that Iran had fired at a U.S. naval vessel in the Gulf. "Navy has nothing to substantiate that report right now," a Navy official said. "At this juncture, there is no validity to it." "We have no information at this time that indicates any incident taking place," said White House National Security Council spokesman Gordon Johndroe. Crude moved back to around $65.61.

Nickel rose for a second consecutive day, and Copper prices were steady on signs of strong industrial growth in China. But the $GDM is showing signs of a stall today, and a pending decline in PMs began to show up on the spot Silver prices. The S&P 500 futures were down 6.10 points, below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Stocks stumbled Tuesday as investors grew wary when new data raised the possibility that the nation's weak housing market would seep into the broader economy and crimp consumer spending. Dow Jones industrial average futures were down 49 points and Nasdaq 100 futures were down 9.25 points in electronic trade after the closing bell.