Tuesday, February 21, 2006 - 3:05 pm MST

[Adam in CO]

The index of leading economic indicators rose 1.1% in January the largest jump in seven months. 6 of the 10 index components gained with particular strength in jobless claims, building permits, vendor performance and money supply. The level of the index suggests economic growth accelerated in the first quarter and will continue to expand in the next six to nine months.





Stocks moved lower Tuesday as unrest in Nigeria raised oil prices and investors worried over the future course of interest rates. Oil surged $1.31 to $62.60 a barrel on the Nymex today. Minutes from the last Fed meeting indicated more Fed rate hikes are on the way in order to continue fighting inflation. The Dow fell 46.26 to 11069.06. The NASDAQ dropped 19.40 to 2262.96.

MARKETS CLOSING CHANGE
DJIA 11069.06 -46.26
S&P500 1283.04 -4.20
RUSSELL 2000 726.78 -4.16
NASDAQ 2262.96 -19.40
SECTORS - GAINERS & LOSERS
Coal +3.75%
Recreational Services -2.52%



Treasuries fell Tuesday when the minutes to the January 31 FOMC meeting showed some concern over higher inflation. Upside inflation risk will keep the Fed raising rates going forward. Losses were limited ahead of consumer inflation data due out tomorrow. In late trading the 10-year note was unchanged to yield 4.56%.

SECURITY YIELD CHANGE
2-Year Note 4.70 0.03
5-Year Note 4.58 -0.01
10-Year Note 4.56 0.00
30-Year Treasury Bond 4.53 0.03



Recent economic data that point toward a significant first quarter rebound and Fed Chairman Bernanke's upbeat comments in testimony last week firmed rate hike expectations. Fed funds futures traders are pricing in nearly a 100% probability of a quarter point rate hike in March and roughly a 70% chance of another one in May. Two additional rate hikes would bring the target for the fed funds rate to 5.0%, well within the zone economists would consider neutral.

For the week ending 02/16/06

RATE LATEST CHANGE FEES
30-Yr Fixed (FHLMC) 6.28 0.04 0.5
15-Yr Fixed (FHLMC) 5.91 0.08 0.5
1-Yr Adj (FHLMC) 5.36 0.02 0.7
3-Mo Libor (FNMA) 4.77 0.00 n/a



RATE LATEST CHANGE
Fed Funds 4.50 0.00
Prime Rate 7.50 0.00
Fed Discount 5.50 0.00
11th District COF 3.296 0.00

[Adam in CO]

The index of leading economic indicators rose 1.1% in January the largest jump in seven months. 6 of the 10 index components gained with particular strength in jobless claims, building permits, vendor performance and money supply. The level of the index suggests economic growth accelerated in the first quarter and will continue to expand in the next six to nine months.





Stocks moved lower Tuesday as unrest in Nigeria raised oil prices and investors worried over the future course of interest rates. Oil surged $1.31 to $62.60 a barrel on the Nymex today. Minutes from the last Fed meeting indicated more Fed rate hikes are on the way in order to continue fighting inflation. The Dow fell 46.26 to 11069.06. The NASDAQ dropped 19.40 to 2262.96.

MARKETS CLOSING CHANGE
DJIA 11069.06 -46.26
S&P500 1283.04 -4.20
RUSSELL 2000 726.78 -4.16
NASDAQ 2262.96 -19.40
SECTORS - GAINERS & LOSERS
Coal +3.75%
Recreational Services -2.52%



Treasuries fell Tuesday when the minutes to the January 31 FOMC meeting showed some concern over higher inflation. Upside inflation risk will keep the Fed raising rates going forward. Losses were limited ahead of consumer inflation data due out tomorrow. In late trading the 10-year note was unchanged to yield 4.56%.

SECURITY YIELD CHANGE
2-Year Note 4.70 0.03
5-Year Note 4.58 -0.01
10-Year Note 4.56 0.00
30-Year Treasury Bond 4.53 0.03



Recent economic data that point toward a significant first quarter rebound and Fed Chairman Bernanke's upbeat comments in testimony last week firmed rate hike expectations. Fed funds futures traders are pricing in nearly a 100% probability of a quarter point rate hike in March and roughly a 70% chance of another one in May. Two additional rate hikes would bring the target for the fed funds rate to 5.0%, well within the zone economists would consider neutral.

For the week ending 02/16/06

RATE LATEST CHANGE FEES
30-Yr Fixed (FHLMC) 6.28 0.04 0.5
15-Yr Fixed (FHLMC) 5.91 0.08 0.5
1-Yr Adj (FHLMC) 5.36 0.02 0.7
3-Mo Libor (FNMA) 4.77 0.00 n/a



RATE LATEST CHANGE
Fed Funds 4.50 0.00
Prime Rate 7.50 0.00
Fed Discount 5.50 0.00
11th District COF 3.296 0.00

[shipbldr]

And now the only thing holding the economy back is a shortage of railroad ties.

Let all do our part to help