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Market Commentary for May 31, 2007


Day Traders and investors appeared a bit tired today even with the heavy trading volume as we move toward the end of the shortened trading week. Trading ranges on the session were light, much lighter than yesterday. The S&P 500 managed to strike a new closing high although, it was modest. At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) moved lower by 5.44 points to end the session at 13,627.64; the NYSE (New York Stock Exchange) posted a moderate gain of 15.03 points to end at 9,978.64 the NASDAQ posted a gain of 11.93 points today for a close at 2,604.52; the S&P 500 moved higher by 0.39 points to end at 1,530.62 and the RUSSELL 2000 moved higher by 3.83 points to close at 847.3518 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 1.17 to close at 261.49 and the
FTSE RAFI 1000 moved lower by 0.81 to close at 6,422.56.

Economic data released for the day:

Monster Employment Index: Job postings from 1,500 web sites create an index of job availability. This index is similar to The Conference Board’s help wanted index however; Monster Employment Index is not seasonally adjusted. For the month of April, Monster Employment Index came in at 186.

Corporate Profits: Reported by the Bureau of Economic Analysis (BEA), a summary of the income of organizations treated as corporations in the national income and products accounts. Report contains profits from current production known as operating or economic profits; corporate profits with inventory valuations and capital consumption adjustment. Differences in depreciation allowances used for accounting and income tax purposes are part of Capital Consumption. IVA (inventory valuation adjustment) deals with the difference in measuring the cost of inventory replacement. Book profits amount to operating profits and subtracting inventory valuation and capital consumption adjustments. After tax profits are book profits after taxes are deducted. As reported today: First Quarter Corporate Profits rose by 1.0% versus an increase by 0.8% in the fourth quarter.

GDP (preliminary): Gross Domestic Product (GDP) encompasses every sector of the economy and is the broadest measure of aggregate economic activity. As released today: U.S. First Quarter GDP Consensus rose by 0.8%; U.S. First Quarter GDP was revised to an increase of 0.6% rate from an increase of 1.3%; First Quarter Real Final Sales was unchanged at an increase of 1.6%; First Quarter PCE Price Index was revised to an increase of 3.3% rate from an increase of 3.4%; First Quarter Purchases Price Index was unchanged at an increase of 3.6% and First Quarter Chain-Weighted Price Index was unchanged at an increase of 4.0%.

Jobless Claims: A weekly compilation of new unemployment claims to show the number of individuals who filed for unemployment insurance for the first time. The condition of the labor market is determined by an increase of the number of claims which suggests a deteriorating labor market. Released today: U.S. May 19 Week Continuing Claims fell by 52K to 2,472,000 and U.S. Jobless Claims fell by 4K to 310K for week of May 26th compared to survey of an increase by 4K.

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. Data released today: U.S. Chicago Purchase Management adjusted May Index came in at 61.7 versus April reading at 52.9; U.S. Chicago Purchase Management May Prices Paid Index 70.2 versus April reading at 64.9; U.S. Chicago Purchase Management May Supplier Deliveries 45.3 versus April reading at 43.4; U.S. Chicago Purchase Management May Employment Index 57.3 versus April reading at 50.5 and U.S. Chicago Purchase Management May New Orders Index 71.1 versus April reading at 56.5.

Construction Spending: New construction activity on residential, non-residential and public projects measured in dollar value which is available in nominal and inflation adjusted dollars. Data released today: U.S. Construction Spending rose by 0.1% in April compared to consensus at unchanged and March Construction Spending was revised higher by 0.6% from an increase by 0.2%.

Help Wanted Index: From 51 major newspapers across the country, the Help Wanted Index is a monthly index of the number of lines of help-wanted advertising. The index indicates the strength or weakness in the labor market. As released today for April, Help Wanted Index came in at 29.

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 released data today: U.S. Crude Oil Stockpiles fell by 2 Million Barrels in the week with expectations of an increase by 300,000 Million Barrels; U.S. Gasoline Stockpiles rose by 1.3 Million Barrels in the week with expectations of an increase by 1 Million Barrels and U.S. Refineries ran at 91.1% capacity compared to expectation of higher by 0.5 Pt. at 91.6%.

Canada 2006 Gross Domestic Product was revised up 2.8%, 2005 was revised higher by 3.1%; Canada First Quarter Business Inventories C$2.78B versus lower by C$721M in fourth quarter; Canada First Quarter Imports rose by 0.6% versus a drop of 0.2% In fourth quarter; Canada First Quarter Exports rose by 0.5% versus an increase by 0.7% in fourth quarter; Canada First Quarter Final Domestic Demand rose by 0.8% versus fourth quarter increase by 0.9%; Canada Mar GDP rose by 0.3% from February; Canada 4Q GDP revised to an increase by 1.5% from an increase by 1.4%; Canada's First Quarter GDP Market Forecast rose 3.6% and Canada's First Quarter GDP Annualized rose by 3.7%.

Commodities Markets

The trend was mostly higher across the board today for the Energy Sector: Light crude moved higher by $0.52 today to close at $64.01 a barrel; Heating Oil closed higher by $0.01 at $1.88 a gallon; Natural Gas moved lower by $0.01 at $7.94 million BTU and Unleaded Gas moved higher by $0.01 to close at $2.16 a gallon.

Metals Market ended the session higher across the board today: Gold moved higher by $7.40 to close at $666.70 an ounce; Silver closed higher by $0.25 at $13.47 an ounce; Platinum moved substantially higher today by $21.80 to close at $1,285.80 an ounce and Copper moved higher today by $0.09 to end at $3.40 per pound.

On the Livestock and Meat Markets, the trend was mostly higher across the board today: Lean Hogs ended the day higher by 0.10 to close at 74.53; Pork Bellies ended the day lower by 0.55 to close at 100.65; Live Cattle moved higher by 0.38 to end the day at 91.48 and Feeder Cattle ended the higher by 1.08 to close at 111.43.

Other Commodities: Corn moved higher today for a gain of 3.50 points to end at 384.75 and Soybeans moved lower today with a loss of 2.00 points to end at 806.25.

The e-mini Dow ended the session higher by 6 points to close at 13,656. The total Dow Exchange Volume for the day came in at 185,112 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.

Bonds were lower across the board today: 2 year bond closed lower by 2/32 at 99 29/32; 5 year bond closed lower by 5/32 at 99 17/32; 10 year bond closed lower by 5/32 at 96 30/32 and the 30 year bond closed lower by 5/32 at 95 30/32.

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 8,301,855; Open Interest for Futures moved lower by 203,004 points to close at 10,402,533; the Open Interest for Options moved higher by 77,157 points to close at 8,301,855 and the Open Interest for OTC closed with no change at 4,959 for a total Open Interest of 16,934,561 for a total loss on the day by 125,847.

On the NYSE today, advancers came in at 1,857; decliners totaled 1,338; unchanged came in at 157; new highs came in at 402 and new lows came in at 26. Gainers and losers for the day on the NYSE: A.G. Edwards Incorporated (AGE) rallied higher on the Big Board today for a gain of 14.27% to move higher by 11.01 points to end the trading day at $88.16; Cleveland Cliffs Incorporated (CLF) rallied higher for a gain on the session of 6.75 points to close the trading day at $88.29; BlackRock Incorporated (BLK) made a nice run higher today by 7.11 points to close at $153.54; China Petroleum & Chemical Corporation (SNP) rose nicely on the day for a gain of 6.41 points to end the trading session at $109.80 and Big Lots Incorporated (BIG) fell sharply lower by 10.70% on the trading day for a loss of 3.81 points for a closing price of $31.79.

On the NASDAQ today, advanced totaled 1,818 decliners totaled 1,260; unchanged came in at 135 new highs came in at 229 and new lows came in at 50. Gainers and losers for the day on the NASDAQ: CIENA Corporation (CIEN) posted a nice gain on the trading day of a whopping 17.14% to move higher by 5.02 points for a closing price at $34.30; Baidu.com Incorporated (BIDU) climbed higher by 4.86 points to end the day at $140.55; Sears Holdings Corporation(SHLD) moved lower by 3.26 points to end the session at $179.99 and Dendreon Corporation (DNDN) posted a very nice gain of 29.82% to move higher at the close by 2.01 points with a daily high of $13.00 to close at $8.75.

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Millennium-Traders