Dollar holds steady vs. other majors after U.S. data

Dollar holds steady vs. other majors after U.S. data, The dollar held steady against the other major currencies on Monday, after data showed that U.S. factory orders fell in February and as comments from a Federal Reserve official sparked fresh speculation over additional policy tightening this year. USD/JPY was down 0.24% at 111.43. The U.S. Census Bureau said factory orders declined by 1.7% last month, in line with expectations. Factory orders rose 1.2% in January, revised from the initial read of a 1.6% increase. Meanwhile, Boston Fed president Eric Rosengren said that he felt the market was mistaken in its expectations for only zero to one rate hikes this year. "I personally expect that a stronger economy, at essentially full employment and with gradually rising inflation, will lead to more tightening than is currently priced into the futures market expectations for the next two years," Rosengren said. EUR/USD was little changed at 1.1384. Eurostat earlier reported that the euro zone’s unemployment rate fell to 10.3% last month from 10.4% in February, whose figure was revised up from 10.3%. Analysts had expected the unemployment rate to remain unchanged at 10.3% in March. The dollar was lower against the pound, with GBP/USD up 0.37% at 1.4276 and was higher against the Swiss franc, with USD/CHF rising 0.20% to 0.9601. Data earlier showed that the Markit U.K. construction purchasing managers index came in at 54.2 last month, matching February’s 10 month low but above expectations of a dip to 54.0. Meanwhile, the Australian and New Zealand dollars were weaker, with AUD/USD down 0.90% at 0.7613 and with NZD/USD declining 0.78% to 0.6844. The Australian Bureau of Statistics said on Monday that building approvals increased by 3.1% in February, exceeding expectations for a 2.0% gain. Building approvals declined by 6.6% in January, whose figure was revised from a previously estimated 7.5% drop. A separate report showed that Australia’s retail sales were flat in February, compared to expectations for a 0.4% rise, after an uptick of 0.3% in January. USD/CAD gained 0.27% to trade at 1.3045. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 94.59, close to last week’s five-and-a-half month low of 94.30.

Dollar little changed amid continued bets on dovish Fed

Dollar little changed amid continued bets on dovish Fed, NEW YORK (Reuters) - The U.S. dollar hit its lowest against the yen in two weeks on Monday on continued expectations of a slow path of Federal Reserve rate increases this year, but was mostly flat against a basket of currencies after a confident-sounding speech from a top Fed official. The dollar struggled to gain ground after posting its worst week in roughly two months last week, and hit a session low against the yen of 111.32 yen . Analysts said Fed Chair Janet Yellen's comments last week that the central bank should proceed "cautiously" on raising rates were still weighing on the dollar. The dollar index (DXY), which measures the greenback against a basket of six major currencies, was last mostly flat at 94.636 after hitting a 5-1/2-month low of 94.319 last week. The euro was last down 0.11 percent against the dollar at $1.1374 after touching a 5-1/2 month high of $1.1437 on Friday. The dollar index erased losses after Boston Fed President Eric Rosengren said it was "surprising" that futures markets currently imply one or zero rate hikes this year, a prediction that could prove "too pessimistic." Rosengren is typically dovish. While the remarks helped the dollar recover, they failed to spur a rally in the greenback in the wake of Yellen's dovish remarks. "It goes to show how the Fed rate debate remains fluid, but I think the market has attuned mostly with the Fed Chair," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington, on the limited impact of Rosengren's comments. Fed funds futures contracts on Monday suggested traders saw just a 40 percent chance of a Fed rate hike in July, according to CME Group's FedWatch program. The dollar is "going to be mired in a range" given the aftereffects of Yellen's dovish comments from last week, said Richard Scalone, co-head of foreign exchange at TJM Brokerage in Chicago. The dollar was last down 0.35 percent against the yen at 111.26 yen. Against the Swiss franc, the dollar was last up 0.28 percent at 0.9600 franc after touching a more than five-month low of 0.9547 franc last week .

2 Stocks Yield A Surprising Win-Win In The Decimated Oil Patch

2 Stocks Yield A Surprising Win-Win In The Decimated Oil Patch, The last time oil traded above $100 was in July 2014. That's nearly two years ago. Since then, we've witnessed a spectacular collapse, mainly due to major oversupply concerns and China's slowing economy and demand for oil. From the beginning of the year we've seen oil hit $26.05, a 12 year record low. Unfortunately for many companies and their investors, the profitability of the energy sector within equities markets is directly linked to commodity prices. For example, Chesapeake Energy (NYSE:CHK) has almost been reduced to ashes, down 74% over the last year . Then there's Peabody Energy (NYSE:BTU), down from $76 this time last year to $2.4 dollars a share, a staggering 96.8% loss as of Friday's close. Obviously, this plays into one of investors' biggest fears—watching a company in which you hold a stake go bankrupt, leaving (if you're lucky) some money on the table for bondholders and owners of preferred shares. Holders of common stock, however, rarely see any capital returned. So why bother investing in the energy sector at all right now? Fortunately, not all energy companies are created equal. While some will crumble under the weight of low commodity prices, others, like Exxon (NYSE:XOM) and Chevron (NYSE:CVX), remain relatively stable during the current market turmoil. As well diversified industry leaders, it is expected they'll survive the recent storm and keep their positions at the top of the industry. However, survival for Exxon and Chevron right now means little capital growth achieved. We've found two oil companies with greater rewards. Each is relatively safe from bankruptcy in the short- and medium-term, and each offers even bigger upsides. Baker Hughes Baker Hughes (NYSE:BHI) is an American industrial services company, specializing in providing technology, drilling, production systems and reservoir consulting to the oil industry. As of today, it's the third largest oil services provider in the world. From an investor perspective, there are a few reasons why Baker Hughes is in an excellent position. First, the company was growing steadily prior to 2015, when its revenues fell, as demand for its services slackened alongside falling oil prices. In 2014, the company grew its revenues by more than 10%. It is also financially sound from another perspective: though it has $2.7B in current liabilities, it also has $2.3B in cash on its books, not including inventory or receivables. All told, Baker Hughes' current assets amount to $9.2B, a significantly larger sum than its long-term debt of $3.6B. But that's just the picture of the company's internal health.

Gold’s Bullish Sentiment Begins To Ebb

Gold’s Bullish Sentiment Begins To Ebb, first-quarter rally appears to have run its course, with the precious metal now consolidating in a relatively tight range as bullish sentiment for commodities in general starts to ebb and drain away. In the last two months we have seen two key days of price action, which defines the current technical picture, with the first of these occurring February 11 and the second on March 4 -- the common theme being a dramatic increase in volume on the daily chart. On the first occasion, the market rose strongly on the day and delivered a volatility trigger with the classical response of subsequent price action reverting back inside the spread of the candle with no follow through -- trapping bullish traders into weak positions. This was as expected with prices duly languishing in this area for some time, until the second significant candle appeared on March 4, once again with ultra-high volume and no follow through into higher prices. This candle was duly followed with two pivot highs over the course of the next few days, as gold prices struggled to break through the $1285 per ounce area before sliding lower and reverting back to test the volume point of control, which is now balanced in the $1240 per ounce area, as denoted with the purple dotted line. Below we now have potential support building in the $1208 per ounce area and in early Monday trading, gold was testing the high volume node at $1220 per ounce. But if this fails to hold, then we can expect to see gold prices sell off once again and back to test the low-volume node now awaiting in the $1190 per ounce area.

Wall Street flat as investors take stock after rally

U.S. stocks were largely unchanged on Monday in muted trading as investors took a breather from a recent rally that helped indexes recover from a selloff at the start of the year. Crude hovered near one-month lows as hopes that top oil producers would reach an agreement to help tackle a stubborn global glut faded. [O/R] Investors have been skittish following U.S. Federal Reserve Chair Janet Yellen's comments last week urging caution on raising rates, which were in contrast with remarks made by some policymakers supporting more aggressive stance on rates. The Fed is likely to raise rates before current market expectation since overseas risks to the U.S. economy are fading, Boston Fed President Eric Rosengren said on Monday. While the Fed's projections point to two rate hikes this year, traders expect only one, according to the CME Group's FedWatch program. "We've been fairly quiet in the markets today," said Michael Baughen, global investment specialist at JP Morgan Private Bank in Tampa. "Today's (stock market) decline is mild and doesn't have anything causing it, other than maybe a lack of catalysts." Baughen said the market was likely to trade sideways for the rest of the week and that catalysts for stocks would come from the upcoming corporate earnings season. A rebound in oil and encouraging economic data helped Wall Street recover from a steep selloff at the start of the year. At 12:40 p.m. ET the Dow Jones industrial average (DJI) was down 10.41 points, or 0.06 percent, at 17,782.34, the S&P 500 (SPX) was down 2.19 points, or 0.11 percent, at 2,070.59 and the Nasdaq Composite (IXIC) was down 6.48 points, or 0.13 percent, at 4,908.06. Seven of the 10 major S&P sectors were lower, led by a 0.62 percent decline in the consumer discretionary (SPLRCD) sector. Healthcare stocks' (SPXHC) 1.26 percent rise helped limit losses. The sector was boosted by Edwards Lifesciences (N:EW). Shares of the medical device maker rose 20 percent to $107.65 after a study showed a less-invasive heart-valve implant was superior to open surgery, prompting a slew of brokerages to raise their ratings on the stock. Virgin America (O:VA) surged 42 percent to $55.28, after the airline agreed to be bought by Alaska Air (N:ALK) for about $2.60 billion. Alaska Air shares were down 4.8 percent at $78.10. Smith & Wesson (O:SWHC) slumped 16.3 percent to $23.23 after Cowen cut its rating on the stock to "market perform". Declining issues outnumbered advancing ones on the NYSE by 1,980 to 957. On the Nasdaq, 1,366 issues rose and 1,351 fell. The S&P 500 index showed 55 new 52-week highs and no new lows, while the Nasdaq recorded 51 new highs and 17 new lows.

names chief operating officer seen as CEO-in-waiting

names chief operating officer seen as CEO-in-waiting, NEW YORK (Reuters) - Honeywell International Inc (N:HON) on Monday named Darius Adamczyk as its first president and chief operating officer, a newly-created role seen as a step toward designating a successor to Chief Executive Dave Cote, who has led the company for 14 years. Adamczyk, 50, a Polish immigrant who did not speak English when he arrived in the United States at age 11, earned degrees in electrical and computer engineering at Michigan State University and Syracuse University before earning an MBA at Harvard, Honeywell said. "Darius is an eight-year veteran of Honeywell and an accomplished executive with a strong track record in numerous Honeywell businesses," Cote said in a statement. The heads of Honeywell's businesses, which include aerospace, building controls and security and performance materials, will report to Adamczyk, who will report to Cote, the company said. The change is effective immediately. Adamczyk has run Honeywell divisions, including most recently its $9.3-billion performance materials unit, whose products range from refrigerants to oil refining technology, Honeywell said. Analysts praised the appointment but the stock didn't respond much to the news, edging down 0.5 percent at $112.65 in morning trading on the New York Stock Exchange. "Though not explicit in the announcement, this seems to be a clear indication to us that Mr. Adamczyk is the most likely successor to Chairman/CEO Dave Cote," Steve Winoker, analyst at Sanford Bernstein, said in a note. "We've had no concerns over how the succession might play out – and today's announcement makes us all the more positive." The appointment of Adamczyk comes just weeks after Honeywell's bid to acquire United Technologies Corp (N:UTX) was rebuffed.

Gold flat in quiet trade, as China markets remain closed during festival

Gold was relatively flat on Monday in quiet trade, one session after plunging to fresh five-week lows, as markets in China remained closed for a traditional spring holiday. On the Comex division of the New York Mercantile Exchange, gold for June delivery traded in a tight range between $1,216.00 and $1,224.00 an ounce before settling at $1,218.30, down $5.20 or 0.43% on the day. It came one session after gold plummeted more than $20 an ounce to its lowest level since mid-February, as upbeat U.S. jobs data increased the probability that the Federal Reserve could implement multiple interest rate hikes before the end of the year. Gold futures have closed lower in three consecutive sessions and eight of the last 11. Despite the recent downturn, the precious metal is still up by more than 14% since the start of the year and is coming off its strongest opening quarter in three decades. Gold likely gained support at $1,063.20, the low from January 4 and was met with resistance at $1,280.70, the high from Mar. 11. Investors in Asia await Tuesday's release of China's monthly Caixin Services PMI index in March for further indications on the health of the struggling manufacturing sector in the world's second-largest economy. It will be followed be a closely-watched release of the nation's monthly foreign exchange reserves on Wednesday, as analysts continue to gauge the strength of the yuan for spillover effects into the global economy. The People's Bank of China (PBOC) has rattled global foreign exchange markets twice over the last nine months with unexpected devaluation of its currency. Chinese markets were closed on Monday in celebration of the Qingming Festival, an annual holiday devoted to paying respect to the deceased. China is the world's largest producer of gold and is the world's second-largest consumer of the yellow metal behind India. Elsewhere, investors continued to digest an optimistic March U.S. jobs report from the end of last week, which provided broad signals of improved labor market conditions nationwide. For the month, U.S. nonfarm payrolls rose by 215,000 in March, eclipsing consensus estimates of 210,000 and building on an upwardly revised 245,000 figure a month earlier. In addition, average hourly earnings jumped by 0.3% for the month, while the labor force participation rate also increased by 0.1 to 63%. Although the employment rate inched up by 0.1 to 5.0%, it still remains near eight-year lows from the previous two months. The report came in the wake of hawkish indications from Fed chair Janet Yellen that the U.S. central bank will express caution in approving further rate hikes against a backdrop of heightened global economic and financial risks. A wave of Federal Open Market Committee (FOMC) policymakers, including Yellen are scheduled to speak later this week. On Monday, Boston Fed president Eric Rosengren said he expects the Fed to resume a path of gradual tightening "sooner than implied by financial market futures," if the economy continues to exhibit moderate recovery." Any rate hikes by the Fed this year are viewed as bearish for gold which struggles to compete with high yield bearing assets in rising rate environments. The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, was also relatively flat in U.S. afternoon trading at 94.51, down 0.07% on the session. The index remains near five-month lows. Dollar-denominated commodities such as gold become more expensive for foreign purchasers when the dollar appreciates. Silver for May delivery fell 0.086 or 0.57% to $14.960 an ounce. Copper for May delivery lost 0.023 or 1.06% to 2.140 a pound.