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Daily Market Commentary 1587


The markets made an impressive effort to rebound from yesterday’s major fall from Grace. Overall the attempt was somewhat successful since the major indices ended in the green zone at the close of trading today.

At the end of the trading day, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) moved higher today by 52.39 points to end the session at 12268.63; the NYSE (New York Stock Exchange) moved higher by 42.87 points to end at 9122.28; the NASDAQ moved higher by 8.27 points to close at 2416.13; the S&P 500 moved higher by 7.78 points to end at 1406.82 and the RUSSELL 2000 moved higher by 0.64 points to close at 793.30. The FTSE All-World Index ex-US (top Large/Mid Cap aggregate from over 2,700 stocks from the FTSE Global Equity Index Series (GEIS) which covers 90% of the worlds investable market capitalization) moved lower by 0.56 to close at 239.70 and no data was available for the FTSE RAFI 1000.

Federal Reserve Chairman, Ben S. Bernanke commented today: he is seeing 'calm before storm' on Deficit; deficit may stabilize further in short term; entitlements to 'climb quickly' in next decade; doesn't address near-term economy, policy outlook; no single trigger for Stock Market decline; no material change in economic outlook; looking for moderate growth in economy; reasonable chances for economy to strengthen; real interest rates fairly low globally; doesn't see liquidity problems in markets; no sign sub-prime mortgage woes spreading and Phillips Curve links 'looser' than in past.

Comments today from the President of the Federal Reserve Bank of New York, Timothy F. Geithner: he doesn't comment on rate outlook; he doesn't address Tuesday's markets; need to improve financial sector resilience; monetary policy-making must be 'eclectic'; monetary policy must promote price stability; rate policy can't target asset bubbles; U.S. Economy still shows remarkable resilience; seeing 'calm before storm' on deficit; deficit may stabilize further in short term; entitlements to 'climb quickly' in next decade and doesn't address near-term Economy, Policy outlook.

Economic data released for the day:

MBA Purchase Applications: Compilation from the Mortgage Bankers’ Association of various mortgage loan indexes. This data is the leading indicator for single-family home sales as well as, housing construction. Purchase Level Index came in at 401.3.

GDP (preliminary): Gross Domestic Product (GDP) encompasses every sector of the economy and is the broadest measure of aggregate economic activity. U.S. 4th Quarter GDP Consensus rose at a rate of 2.2%; U.S. 4th Quarter GDP was revised to an increase at a rate of 2.2% from an increase by a rate of 3.5%; 4th Quarter Chain-Weighted Price Index was revised to an increase at a rate of 1.7% from an increase by a rate of 1.5%; 4th Quarter Purchases Price Index was revised to an increase at a rate of 0.2% from an increase by a rate of 0.1%; 4th Quarter PCE Price Index was revised to a drop in rate at 0.9% from a drop in rate by 0.8% and 4th Quarter Real Final Sales was revised to an increase at a rate of 3.6% from an increase by a rate of 4.2%.

NAPM-Chicago: A compilation by The National Association of Purchasing Management of a survey and composite diffusion index of business conditions in the Chicago area. The survey includes both manufacturing and non-manufacturing firms. This data is considered a leading indicator of the ISM Manufacturing Index. U.S. Chicago Purchasing Management February New Orders Index came in at 48.7 versus January reading at 46.3; U.S. Chicago Purchasing Management February Employment Index came in at 50.6 versus January reading at 42.8; U.S. Chicago Purchasing Management February Supplier Deliveries came in at 46.5 versus January reading at 52.2; U.S. Chicago Purchasing Management February Prices Paid Index came in at 63.2 versus January reading at 54.9 and U.S. Chicago Purchasing Management adjusted February Index came in at 47.9 versus January reading at 48.8.

New Home Sales: Number of newly constructed homes with a committed sale, for the month. The economic momentum and consumer purchases of furniture and appliances helps determine the housing market trends for, new home sales. New Home Sales for January 2007 came in at 937,000 compared to consensus of 1,080,000.

EIA Petroleum Status Report: EIA (Energy Information Administration) provides weekly petroleum inventories in the United States whether they are produced here or abroad. Prices for petroleum products are determined by the level of inventories. Department of Energy reported Petroleum Status Report today: U.S. Refineries Ran a capacity of 86.0% compared to expectations of 85.6%; US Distillate Stockpiles fell by 3.8 Million Barrels in the week compared to expectations of a drop by 2.6 Million Barrels; US Gasoline Stockpiles fell by 1.9 Million Barrels in the week compared to expectations of a drop by 1.6 Million Barrels and US Crude Oil Stockpiles rose by 1.4 Million Barrels in the week compared to expectations of an increase by 1.2 Million Barrels.

On the commodities markets, the trend was mostly higher across the board again today for the Energy sector: Light crude moved higher by $0.25 to close at $61.75 a barrel; Heating Oil closed with no change at $1.78 a gallon; Natural Gas moved lower by $0.23 to end the day at $7.30 per million BTU and Unleaded Gas closed higher by $0.02 again today to end the session at $1.87 a gallon.

Metals Market ended the session mostly lower across the board again today: Gold moved sharply lower by $14.70 to close at $672.50 an ounce; Silver closed lower today by $0.46 at $14.24 an ounce; Platinum moved higher today by $3.10 to close at $1,256.40 an ounce and Copper ended the day lower by $0.07 to close at $2.75 per pound.

On the Livestock and Meat Markets, the trend was mostly lower across the board today: Lean Hogs closed higher by 0.33 to close at 67.75 Pork Bellies ended the day lower by 1.13 to close at 102.03; Live Cattle closed lower by 0.40 to end the day at 97.05 and Feeder Cattle ended the day lower by 0.13 to close at 104.05.

Other Commodities: Corn moved nicely higher today by 11.25 points to end at 435.50 and Soybeans moved much higher today by 8.75 to close at 787.50.

The end of day results for the CBOT (Chicago Board of Trade) which is comprised of the total Exchange Volume for Futures and Options (EVFO) including Electronic, Open Auction and Cash Exchange ended the day at 11,196,830 Open Interest for Futures moved lower by 79,091 to close at 9,566,339 and the Open Interest for Options moved higher by 281,033 to close at 6,230,570 for a total Open Interest of 15,698,360 for a total gain on the day by 201,942.

Bonds were lower across the board today: 2 year bond closed lower by 3/32 at 100 6/32; 5 year bond closed lower by 8/32 at 100 15/32; 10 year bond closed lower by 13/32 at 100 16/32 and the 30 year bond closed lower by 18/32 at 101 6/32.

The mini Dow ended the session today with a gain of 99 to close at 12279. The total Dow Exchange Volume for the day came in at 340,457 which are comprised of Electronic, Open Auction and Cash Exchange. Traders should review workshops available at the CBOT (Chicago Board of Trade) Educational in-person seminars schedules available on CBOT (Chicago Board of Trade) website.

New York Stock Exchange movers for the day: Chicago Mercantile Exchange Holdings (CME) rebounded strongly today by 28.16 points for a closing price at $539.15; FTSE/Xinjhua China 25 Index (FXI) rebounded today with a gain of 4.10 points to end the day at $99.10; International Exchange Incorporated (ICE) rebounded by 6.19 points to end at $150.77 for the day; Whiting Petroleum Corporation (WLL) fell by 5.49 points to shed 12.42% on the day for a closing price at $38.71 and New Plan Excel Realty Trust (NXL) moved higher by 4.05 points to end the day at $33.39.

On the NASDAQ today, advancers came in at 1,657; decliners totaled 1,404; unchanged came in at 137; new highs came in at 41 and new lows came in at 76. Gainers and losers for the day on the NASDAQ: Deckers Outdoor Corporation (DECK) gained 3.75 points to close at $65.20; Joy Global Incorporated (JOYG) shed 6.11 points to close at $44.22 at the close; Nordson Corporation (NDSN) fell by 3.49 points for a closing price at $48.78 and Leap Wireless International Incorporated (LEAP) gained 5.59 points to close at $67.57.

Thanks for reading.
Millennium-Traders