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Market Commentary for April 16, 2007


A sincerely sad day to start this new week and our deepest sympathies go out to the families and friend of the victims of the Virginia Tech massacre today. This heinous action of the responsible individual(s) set today in history as the worst shooting, on American soil. As the horrific details unfold, in days or weeks ahead, we’re certain thoughts and prayers will continue to go out to families and friends of the victims.

Trading action was moderate today with the major indices mainly controlled by the Bulls today. The North East has begun to feel the effects of the NorEastern that is moving across the nation and in West Virginia and New Jersey have declared states of emergency as a result of this Spring time storm, bringing heavy amounts of rain and snow.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) moved nicely higher today with a triple digit gain of 108.33 points to end the session at 12720.46; the NYSE (New York Stock Exchange) also posted a triple digit gain today of 102.67 points to end at 9625.53; the NASDAQ moved higher by 26.39 points today for a close at 2518.33; the S&P 500 moved higher by 15.62 points to end at 1468.47 and the RUSSELL 2000 moved higher by 12.06 points to close at 831.44. 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 higher by 2.19 to close at 253.55 and the FTSE RAFI 1000 closed higher by 61.43 at 6173.54.

President of the Federal Reserve Bank of Dallas, Richard W. Fisher commented today: flat yield curve not harbinger of recession; bad fiscal policy pressures monetary policy; Medicare shortfall biggest U.S. fiscal challenge; deficit cut depends on 0.4% spending growth and U.S. fiscal deficit must be brought down.

President of the Federal Reserve Bank of Philadelphia, Charles I. Plosser commented today: monetary policy main aim is stable prices; stable prices key for good economic health; ECB low inflation commitment has aided Euro area; Commitment To Low Inflation Important; Fed less transparent than other Central Banks and monetary policy not sole economic driver.

Economic data released for the day:

Empire State Manufacturing Survey Index: A survey conducted by the New York Fed of manufacturers in the state of New York. The participants are from a variety of industries across the state and give their view of the likely direction of certain indicators, throughout the upcoming next six months. New York Fed's April Manufacturing Index came in at 3.80 versus 1.85 in March; New York Fed April New Orders came in at 3.94 versus 3.14 in March; New York Fed April Employment came in at 5.42 versus 11.37 in March and New York Fed April Prices Received came in at 7.14 versus 10.47 in March.

Retail Sales: A measure of retail sales consisting of total receipts at stores that sell durable and non-durable goods. This data is a key element in economic growth since consumer spending accounts for two-thirds of the national Gross Domestic Products (GDP). U.S. March Retail and Food Sales Excluding Autos rose by 0.8%; U.S. March Retail and Food Sales rose by 0.7% compared to consensus of an increase by 0.5% and February Retail and Food Sales was revised to an increase by 0.5% from an increase by 0.1%.

Treasury International Capital: The flow of financial instruments into and out of the United States is tracked by this Treasury data. Tracking is included for: Treasury Securities, agency securities, corporate bonds and corporate equities. Net Foreign Buys of U.S. Equities in February $13.5 Billion; Net Foreign Buys of U.S. Corporate Bonds in February $45.4 Billion; Net Foreign Buys of U.S. Agency Debt in February $2.0 Billion; Net Foreign Buys of U.S. Treasury Notes, Bonds in February $17.0 Billion; Net Foreign Capital Inflow in February to U.S. $94.5 Billion and February Net Foreign Acquisition of Long-Term U.S. Securities $43.2 Billion.

Business Inventories: Dollar amount of business inventories held by manufacturers, retailers and wholesalers. Near-term direction of production activity is related to the level of inventories in relation to sales. February Inventories month over month change came inline with consensus at 0.3%.

On the commodities markets, the trend was lower across the board again today for the Energy sector: Light crude moved lower by $0.02 today to close at $63.61 a barrel; Heating Oil moved lower by $0.04 to close at $1.86 a gallon; Natural Gas moved lower by $0.27 today to end at $7.53 per million BTU and Unleaded Gas closed lower by $0.06 at $2.12 a gallon.

Metals Market ended the session higher across the board today: Gold moved higher by $4.60 to close at $694.50 an ounce; Silver moved lower today by $0.01 to end the session at $14.08 an ounce; Platinum moved higher today by $3.10 to close at $1,289.50 an ounce and Copper ended the day higher by $0.01 to end at $3.54 per pound.

On the Livestock and Meat Markets, the trend was mixed across the board today: Lean Hogs moved higher today by 0.85 at 77.85; Pork Bellies ended the day lower by 1.13 to close at 103.13 Live Cattle moved higher by 0.20 to end the day at 92.90 and Feeder Cattle ended the day higher by 0.80 to close at 108.53.

Other Commodities: Corn moved lower today by 4.75 points to end at 390.25 and Soybeans moved lower today by 1.75 to close at 753.25.

Bonds were higher across the board today: 2 year bond closed higher by 1/32 at 99 17/32; 5 year bond closed higher by 3/32 at 99 8/32; 10 year bond closed higher by 7/32 at 99 7/32 and the 30 year bond closed higher by 21/32 at 97 21/32.

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 3,351,430 Open Interest for Futures moved higher by 39,441 to close at 9,812,002; the Open Interest for Options moved higher by 82,616 to close at 7,841,080 and the Open Interest for OTC had no change at 4,491 for a total Open Interest of 17,657,573 for a total gain on the day by 122,057.

The e-mini Dow ended the session higher by 92 at 12765. The total Dow Exchange Volume for the day came in at 113,843 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.

On the NYSE today, advancers came in at 2,343; decliners totaled 895; unchanged came in at 136; new highs came in at 456 and new lows came in at 14 New York Stock Exchange movers for the day today: SLM Corporation (SLM) rallied higher on the Big Board again today for a gain of 18.37% to move higher by 8.59 points for a closing price at $55.35; First Marblehead Corporation (FMD) plummeted by 22.17% for a loss on the day by 9.85 points to end the session at $34.58; Trina Solar Limited (TSL) bolted higher by 17.26% for a gain on the Big Board of 10.10 points for a closing price of $68.60; CBS Corporation (CPV) fell hard today by 23.63% on low volume for a loss of 7.70 points to close at $24.88 and Goldman Sachs Group (GS) gained 7.84 points for an end of day price at $214.34.

On the NASDAQ today, advancers came in at 2,193; decliners totaled 867; unchanged came in at 148 new highs came in at 253 and new lows came in at 39. Gainers and losers for the day on the NASDAQ: Powell Industries Incorporated (POWL) fell sharply today by 13.06% for a loss on the day by 4.83 points to close at $32.16; Solarfun Power Holdings Company Limited (SOLF) rallied by 35.35% for a gain of 4.61 points to close at $17.65; Canadian Solar Incorporated (CSIQ) made a nice run higher of 24.82% for a gain of 2.69 points for a closing price at $13.53; JA Solar Holdings Company Limited (JASO) moved higher by 17.15% to gain 4.15 points on the day for a closing price of $28.35 and Google Incorporated (GOOG) made a move higher today by 7.61 points to close at $473.90.

Thanks for reading
Millennium-Traders