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Pre-Market Primer: Global Markets Continue to Surge on Fed Announcement; Apple Breaks More Records Today


The new iPhone is already sold out. Get in line if you want it.

MINYANVILLE ORIGINAL Global equities continued to rise today after the Fed announced that it would buy $40 billion in mortgage-backed securities every month until unemployment improves significantly and vowed to keep benchmark interest rates very low at least through 2015.

Stock futures showed that US indices will continue to rally at multi-year highs. Dow (^DJI) futures gained 0.41% to 13,500.00, S&P 500 (SPY) futures rose 0.46% to 1,457.00, their highest level since 2007. Nasdaq (^IXIC) futures gained 0.53% to 2,836.00.

Commodities are also rallying. Copper, an industrial essential, closed near an all-time high price yesterday. Oil futures in the US rose 1.59% to $99.87/barrel. Safe haven commodities also rallied. Gold futures rose slightly to $1,772.20/ounce, a six-month high.

August retail sales came in weaker than expected today. Sales increased by 0.9% month-over month, beating estimates of 0.8% and July's downwardly-revised 0.6%. Unfortunately, this is mostly coming from autos and gas. The index that excludes those two categories showed a tepid 0.1% increase in August, missing estimates of 0.4%. In the same month, consumer prices in the US came in right in line with expectations, increasing 0.6%.

Later in the day, August industrial production figures will be released. Economists are looking forward to a month-over-month decline of 0.1% with a very slight decrease in the capacity utilization rate. Consumer sentiment likely dipped slightly this month.

Eurozone employment was essentially unchanged in the second quarter, though the economy contracted by 0.2%. The number of people working stayed the same on a quarterly basis. This is the first quarter in a year that the eurozone workforce didn't shrink sequentially, but the number was off 0.6% from the year earlier.

Inflation in the 17-member currency union increased by 2.6% in August, slightly above the target of 2%. Excepting energy prices, the Consumer Price Index climbed just 1.7% over the year earlier.

A Dutch newspaper reported the the European Central Bank is preparing a 300 billion euro bailout of Spain. The ECB denies the report. Plenty of worrying data has come out of the country this morning, however. Spain's national debt rose to 75.9% of GDP in the second quarter, up from 72.9%. Home prices in the quarter fell by a staggering 14.4%.

Apple's (AAPL) new iPhone 5 went on sale for pre-orders last late last night. Within minutes, the estimated shipping time went from one week to two weeks, indicating overwhelming demand. Apple's stock ended yesterday at an al-time high of $682.98, and continued to increase to nearly $689 in the pre-market.

Twitter: @vincent_trivett
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