T U E S D A Y   E V E N I N G   E X T R E M E   M A R K E T S
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Tuesday: The CRB Index is declining 0.61 points to 190.33. The 
US Dollar Index climbed 0.20 points to 115.15.

The Dow Industrials moved higher by 106.42 points, at 9998.39, while 
the S&P 500 rose 8.56 points, last seen at 1142.92. The 
Nasdaq Composite edged higher by 17.31 points to 2004.76.
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E X T R E M E   M A R K E T   C O M M E N T A R Y
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The STOCK INDEXES http://quotes.ino.com/exchanges/?c=indexes

CHICAGO (Dow Jones)--A reported jump in housing starts data Tuesday
set the tone for gains in stock index futures for most of the
session. U.S. housing starts rose 8.2% for November to a
seasonally-adjusted 1.645 million annual rate. This followed a
revised 4.0% fall in October to a 1.521 million annual rate. October
starts were previously reported as sliding 1.3% to a 1.552 million
annual rate. The readings were much stronger than economists'
expectations.

That data added to an already positive tone present in equity Markets
overnight thanks to encouraging news out of Circuit City and Best
Buy. Circuit City reported third-quarter earnings at 10 cents a
share. That was 3 cents better than analysts had been expecting.
Circuit City stock jumped over a full point on that news before
pulling back later in the session. Best Buy posted 37 cent third
quarter earnings, beating analysts' expectations by one cent. 

Chicago Mercantile Exchange stock index futures traders attributed a
late morning dip in prices to some independent traders losing
confidence that institutional players - such as Merrill Lynch and
Goldman Sachs - which had been on the buy side early in the session,
would continue to support the market with their orders. The downtick
was further fueled when light sell stops were triggered under 1654.00
in the March Nasdaq futures contract. However, the contracts ended
just about at the top of their day ranges Tuesday. Analysts said
continued thin trade in equity futures contracts likely magnified
movement. Resistance for the March S&P futures contract is now seen
at the psychological resistance level of 1150.00. Support is seen at
Friday's low of 1115.80. Resistance for March Nasdaq is seen at
1674.00, the 50% retracement level from Dec. 6. Support is seen at
1596.00, Friday's low.

INTEREST RATES http://quotes.ino.com/exchanges/?c=interest

NEW YORK (Dow Jones)--The U.S. Treasury market squirreled away Modest
Gains Tuesday, in a quiet session that stood in stark contrast with
Monday's fireworks. At 3:45 p.m EST, the 10-year Treasury note stood
at 99 1/32, up 13/32 to yield 5.13%. The 30-year Treasury gained
14/32 to 97 28/32, yielding 5.52%. The five-year price gained 7/32 to
a 4.42% yield, while the two-year price was up 2/32 at a yield of
3.09%.

As it was on Monday, the market was all about light flows and a lack
of participation ahead of the Christmas holiday and year-end, a
condition that traditionally befalls the market this time of year. "I
think the only thing in common" between the two trading sessions "is
light flows," said Michael Cloherty, market strategist with Credit
Suisse First Boston in New York. "That's one of the things that
pushed the market so far yesterday - liquidity is pretty poor."

In battening down the hatches, many dealers and investors are seeking
to protect profits ahead of the year-end. But there's also a
sentiment that news on the economy is mixed right now, and that
that's limiting the participation of some, market participants said. 

The CRB INDEX http://quotes.ino.com/exchanges/?c=indexes

No report today.

ENERGY MARKETS http://quotes.ino.com/exchanges/?c=energy

NEW YORK (Dow Jones)--Crude oil futures ended steady and most
gasoline futures contracts rose modestly Tuesday, while heating oil
futures posted moderate gains at the New York Mercantile Exchange.
Heating oil futures briefly surged nearly 2 cents amid strength in
the US East and Gulf Coast cash markets as refinery selling waned.
Upcoming colder weather in the Northeast, the largest heating oil
market in the country, may have provided another boost. "We can only
guess that it is some reaction to Monday afternoon's National Weather
Service short-term outlooks showing below-normal temperatures for the
Northeast in both the 6-10 and 8-14 day editions," said Tim Evans,
analyst at IFR Pegasus. Gasoline futures traded on middle ground as
refiners are seen curbing gasoline production but demand is seen
lackluster. 

HOUSTON (Dow Jones)--The natural gas futures contract eased into the
mid-$2.60s a million British thermal units Tuesday, as another day of
anticipated winter cold fell off the calendar. "You don't need just
cold weather, you need an Ice Age," said Ed Kennedy of Pioneer
Futures Inc. in Miami. January settled at $2.657/MMBtu, down 2.9
cents, trading in a 12-cent range from $2.63-$2.75/MMBtu. February
fell 4.9 cents to $2.712/MMBtu. Looking ahead, expect that slow,
sinking feeling to continue well into January's expiration, traders
said. 

CURRENCIES http://quotes.ino.com/exchanges/?c=currencies

NEW YORK (Dow Jones)--The dollar tread water against the euro and
edged only slightly higher against the yen Tuesday, after some
traders questioned whether the rally in the dollar/yen and euro/yen
pairs over recent sessions may have been too much, too soon. Having
jumped to a fresh three-year high of Y128.43 during Asian trading,
the dollar slipped back as some market participants began to factor
in the likelihood that the Bank of Japan won't implement any major
new monetary initiatives at its two-day policy meeting, that
concludes Wednesday. 

The euro slid as low as Y114.91 at one point, well off its intraday
high of Y115.95. Even so, some analysts do expect some sort of policy
change from the BOJ and many market watchers think the dollar is
still set to move higher against the yen. 

PRECIOUS METALS http://quotes.ino.com/exchanges/?c=metals

NEW YORK (Dow Jones)--Precious metals settled mixed Tuesday, with
gold futures rallying on fund buying and gathering enough momentum to
penetrate the key resistance area around $280 an ounce and silver
also flexed its technical muscle. Lack of sellers into the gains
helped the yellow metal accelerate upward, breaking through $280 and
tripping buy-stops above there, according to Refco Inc. analyst Jim
Steel. 

The March silver contract on Comex also mustered the strength to
break above resistance Tuesday, finishing 5.5 cents higher at $4.42
an ounce. No one still has any idea what's driving the rise in silver
lease rates, but Steel said he doubted people were borrowing just to
sell into the recent strength, as he hadn't seen evidence of selling
on the longer end of the curve. 

GRAINS http://quotes.ino.com/exchanges/?c=grains

CHICAGO (Dow Jones)--Chicago Board of Trade corn and wheat futures
settled lower Tuesday mostly on spillover pressure by the soybean
market and on a late sell-off by locals and speculators. After a
lackluster, dull session corn and wheat futures sank to new session
lows about 15 minutes before the closing bell. "It was very slow in
here until the last 15-20 minutes," said Victor Lespinasse, a grain
trader with A.G. Edwards in Chicago. "Corn and wheat came down in
sympathy with beans." 

SOYBEAN COMPLEX http://quotes.ino.com/exchanges/?c=grains

CHICAGO (Dow Jones)--After a two-sided, dull session Chicago Board of
Trade soybean futures closed lower Tuesday on a late technical
sell-off. January soybean futures tumbled within 3.50 cents of the
contract low. "It was a technical break," said one floor trader.

Soybeans garnered some strength earlier from large commercial buying
and ideas hot/dry weather in Argentina could hurt the quality of the
crop there. Floor brokers said ADM bought between 700-900 contracts
of January soybeans and Cargill bought 500 contracts. Market watchers
said commercials were the best scale down buyers in soybeans and oil.

Soy meal futures collapsed late in the session to post solid losses
in sympathy with the weak soybean market and on widespread selling by
the speculators. Soy oil was the leader to the downside earlier in
the session, according to floor brokers. "The sell-off started in the
soy products, which led to a general sell-off," said Victor
Lespinasse, a grain trader with A.G. Edwards. 

LIVESTOCK http://quotes.ino.com/exchanges/?c=livestock

CHICAGO (Dow Jones)--Chicago Mercantile Exchange live cattle futures
ended at or near limit-up levels Tuesday, as talk spread in the
trading pit that Mother Nature's winter wrath would soon be felt in
some of the nation's major cattle feeding areas. The soon-to-expire
December contract ended up the $1.50 per/hundredweight limit, hitting
a nearly one-week high. The most-actively traded February contract
surged to a two-week peak, while April climbed to a three-week high.
Each contract finished 2.5 cents below the limit price. The bullish
sentiment spilled over to feeder cattle futures, which ended limit-up
in almost every contract. 

Lean hog and pork belly futures at the Chicago Mercantile Exchange
ended mostly lower Tuesday in a light-volume day as the market faced
uncertainties over cash hog values for the remainder of the week. The
market had a relatively bearish tone at the open when the market
failed Monday to move above a key resistance level of $53.70. Sell
stops were tripped in February below $52.90 - around Monday's low.
Another damping effect was Monday's low cattle kills of only 103,000
head versus 125,00 a week earlier. Tuesday's kill was 124,000. 

FOOD & FIBER http://quotes.ino.com/exchanges/?c=food

NEW YORK (Dow Jones)--Arabica coffee futures on the Coffee, Sugar &
Cocoa Exchange settled lower Tuesday in an extension of the selling
wave that started on Monday, traders said. The bearish tone of the
market was set from the opening bell, with prices leaning to the
downside on perceptions that the reported drawdown on Green Coffee
Association's stocks was too low.

Cocoa futures settled lower Tuesday after a late bout of hedge
selling kept the market near the session's low. The move was called a
"corrective" pullback by some participants, but it wasn't expected to
alter the market's long-term bullish outlook. Cocoa prices whipsawed
for the first half of the session in very thin volume, with early
long liquidation weighing on prices. Once that quieted down, some
short covering by locals briefly pushed the most-active March
contract into positive terrain until renewed light selling emerged. 

World March raw sugar futures closed at a six-week low Tuesday after
a dramatic trading session, which featured a massive amount of
technical selling by funds. The market began weaker off the back of
heavy selling in the Liffe market. Locals and small speculators sold
the market down to 7.15 cents, which is where funds sell-stops
kicked-in, and then a downward spiral ensued. After the market hit a
low of 7.02 cents a pound, locals and speculators started short
covering, but the rally was short lived and selling once agaiin took
charge of the market. Final volume was estimated at a hefty 33,000
lots. 

After a listless session, cotton futures on the New York Cotton
Exchange settled lower Tuesday in what some participants described as
a consolidation move. The market opened modestly lower in light trade
selling, and the most active March contract floated within a
relatively tight trading range for most of the session. "There is
really nothing going on - it's a bit choppy but there's not much
activity down here," said one floor broker. 

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E X T R E M E   F U T U R E S
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Updated every 10 minutes around the clock.
More at http://quotes.ino.com/analysis/extremes/futures/

WINNERS

LBF2   Random Length Lumber Jan 2002              250.30     10.00  +4.16
DAG2   BFP Milk Feb 2002                           11.79      0.29  +2.52
LCZ1   Live Cattle Dec 2001                       64.975     1.500  +2.36
DBZ1   Butter Dec 2001                           130.000     3.000  +2.36
QLH2   Central Appalachian Coal Mar 2002           28.90      0.65  +2.30
XLG2   Live Cattle Feb 2002                        69.55      1.43  +2.10
FCJ2   Feeder Cattle Apr 2002                     82.750     1.500  +1.85
HOU2   Heating Oil Sep 2002                       0.5701    0.0105  +1.84
ZRH2   U.S. Dollar/South African Rand Mar 2002   12.4775    0.2175  +1.76
SIZ1   Silver Dec 2001                             4.415     0.070  +1.61

LOSERS

SBN2   Sugar #11 World Jul 2002                     6.17     -0.31  -4.78
XOH2   Oats Mar 2002                             191 1/2        -7  -3.55
OK2    Oats May 2002                             175 1/2        -5  -2.77
PBQ2   Frozen Pork Bellies Aug 2002               77.550    -2.100  -2.68
RAH2   South African Rand Mar 2002              0.080150 -0.002125  -2.62
RRF2   Rough Rice Jan 2002                         3.850    -0.100  -2.53
NGH2   Henry Hub Natural Gas Mar 2002              2.719    -0.064  -2.31
CCH3   Cocoa Mar 2003                               1175       -25  -2.07
SMF2   Soybean Meal Jan 2002                       147.8      -3.1  -2.05
CTN2   Cotton Jul 2002                             39.45     -0.75  -1.87

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E X T R E M E   S T O C K S
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Updated every 10 minutes around the clock.
More at http://quotes.ino.com/analysis/extremes/stocks/

WINNERS

ILXI   INTERLOGIX INC                            38.6300    9.8900  +34.45
RTEL   RAYTEL MEDICAL CORP                        7.5500    1.7100  +29.28
PRZ    PRIZE ENERGY                                22.51      4.45  +24.59
SONS   SONUS NETWORKS                             5.6400    1.0900  +23.96
KANAD  KANA SOFTWARE INC NEW                     20.7300    3.7300  +22.03
OICO   O.I. CORP                                  7.0000    1.1700  +20.53
SWTX   SOUTHWALL TECH INC                         7.0000    1.1300  +19.42
NMHC   NATL MEDICAL HEALTH CARD SYS               8.7500    1.3500  +18.24
NOLD   NOLAND CO                                 29.5000    4.5000  +18.00
IO     INPUT/OUTPUT INC                             9.45      1.40  +17.39

LOSERS

SOS    STORAGE COMPUTER                             5.32     -1.85  -25.69
INVN   INVISION TECHNOLOGIES                     30.2800   -7.2505  -19.33
OSIS   OSI SYSTEMS                               16.6900   -4.0000  -19.32
SLR    SOLECTRON CORP                              12.10     -2.71  -18.30
AINN   APPLIED INNOVATION                         5.3990   -1.1200  -17.23
FVE*   FIVE STAR QUALITY CARE INC WI                6.15     -1.25  -16.67
ASW    A.C.L.N. LTD                                26.50     -4.25  -13.82
INHL   INHALE THERAPEUTIC SYS                    17.0900   -2.5700  -13.20
ENE-J  ENRON CORP $10.50 CV 2ND PFD                13.92     -2.05  -12.81
KTO    K2 INC                                       7.10     -0.98  -12.65
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