DJ MARKET TALK: U.S.

Summary
Sun Aug 01 16:34:00 EDT 2010

2034 GMT [Dow Jones] U.S. SUMMARY: Dollar rose against euro but fell against yen Friday
as U.S gross domestic product report stoked worries about delayed rebound for U.S. economy;
U.S. 2Q GDP grew 2.4% at an annual rate, slightly below 2.5% expected by economists; "The
market is getting increasingly concerned with the health of the U.S. economy," said Steve Butler,
director of foreign exchange at Scotia Capital in Toronto. Yen, supported by changes in amount
of leverage available to Japanese foreign-exchange investors, drove greenback to lowest level
since last November at Y85.95. "On balance, the yen strength has to do with jittery financial
markets, and uncertainty about growth in China and the U.S.," said Vassili Serebriakov, currency
strategist at Wells Fargo Bank in New York. EUR/USD at 1.3053 late Friday vs 1.3090 late
Thursday, EUR/JPY at 112.76 vs 113.77, USD/JPY at 86.41 vs 86.96, USD/CHF at 1.0404 vs
1.0414, GBP/USD at 1.5695 vs 1.5617. USD Index at 81.523 from 81.599. Treasury market
posted broad price rally after 2Q GDP; 2-year yield down 3.2 bps to 0.554%, 10-years down 7.8
bps to 2.909%. Stocks mixed as data, earnings weighed; drug company Merck fell 1.7% after 2Q
earnings dropped 52%. Home Depot added 1.6%, helped after Reuters/University of Michigan
consumer sentiment index's final reading for July ticked up to 67.8 from preliminary reading of
66.5, topping expectations. Dow flat, Nasdaq +0.1%, Philly semicons down 1.1%. December
Comex gold rose $12.70 to $1,183.90/oz. Nymex September crude settled 59 cents higher at
$78.95/bbl, helped when Reuters/University of Michigan consumer sentiment reading rose to
67.8 for July from preliminary reading of 66.5. Also Institute for Supply Management-Chicago
said its Chicago Business Barometer rose in July from June.

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