Markets To Watch

Crude Oil: December Crude Oil contracts are lower in early trading, continuing recent weakness. This morning’s weakness comes in the wake of inventory data that showed an increase of U.S. supplies. OPEC did begin its long-awaited production cuts yesterday, but the market is still waiting for confirmation from the smaller members of the cartel on their willingness to cut production. December Crude Oil futures are currently trading down 68 cents at $58.03 a barrel.

Soybeans: January Soybean futures ended the overnight session with solid gains, continuing yesterday’s rally. January Soybean futures rallied to new contract highs yesterday, as speculative buyers returned to the forefront to re-ignite the upside momentum the market has seen in recent weeks. On Wednesday, January Soybeans gained 14 cents, to settle at $658.25 a bushel. January Soybeans ended the overnight session up another 7 ½ cents at $665.75 a bushel.

S&P: December S&P 500 futures have fallen into negative territory, reversing early gains. The sell-off came in the wake of disappointing productivity data. The Labor Department reported that productivity for the 3rd Quarter was unchanged (consensus 1.1%), and unit labor costs rose 3.8% (consensus 3.5%). This data is likely to raise inflation concerns at the Federal Reserve. The Fed has left interest rates unchanged the previous three meetings, giving a pause to 17 straight rate increases. This morning’s drop in futures is leading to a continuation of yesterday’s steep declines. On Wednesday, the December S&P 500 futures fell 10.30, to settle at 1372.90. December S&P 500 futures are trading down 3.90 at 1369.00 in pre-market trading.