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Market Commentary for June 01, 2007


Trading activity was mildly muted today with the Bulls controlling the trading action on this, the first trading day of the month of June. Major indices moved moderately higher amidst modest trading volume and light trading ranges. At the closing bell, here is how the major indices ended the session: the DOW
(Dow Jones Industrial Average) moved higher by 40.47 points to end the session at 13,668.11; the NYSE (New York Stock Exchange) posted a gain of 63.96 points to end at 10,042.60 the NASDAQ posted a gain of 9.40 points today for a close at 2,613.92; the S&P 500 moved higher by 5.72 points to end at 1,536.34 and the RUSSELL 2000 moved higher by 6.23 points to close at 853.41 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 1.1417 to close at 263.22 and the FTSE RAFI 1000 moved higher by 32.06 to close at 6,454.62.

Economic data released for the day:

Employment Situation: A set of labor market indicators provide what is known as the Employment Situation. A measure in percentage of the labor force creates the unemployment rate measurement of the number of unemployed. The number of paid employees working part or full time in businesses across the nation as well as government agencies is the non-farm payroll. The number of hours worked is the average workweek in the non-farm sector. The basic hourly rate is the average hourly earning for major industries as indicated in non-farm payrolls. Data released today: U.S. May Unemployment Rate came in at 4.5% versus consensus of same 4.5%; U.S. May Average Hourly earnings rose by $0.06 to $17.30; U.S. May Non-farm Payrolls rose by 157K versus consensus of an increase by 145K; U.S. May Manufacturing Payrolls fell by 19K; U.S. May Service-Producing Payrolls rose by 176K; U.S. May Overall Workweek rose by 0.1 hour to 33.9 hours; U.S. April Payrolls revised to an increase by 80K from an increase by 88K and U.S. April Unemployment left unrevised at 4.5%.

Personal Income and Outlays: Personal Income, received from all sources by individuals, is the dollar amount of income. Personal Outlays include purchase by consumers for both durable and non-durable goods and services. As released today: U.S. Personal Income fell by 0.1% in April versus consensus of an increase by 0.3%; U.S. Personal Spending rose by 0.5% in April versus consensus of an increase by 0.4%; April PCE Core Price Index rose by 0.1% Rate on the month; April PCE Core Price Index rose by 2.0% on the year; April PCE Price Index rose by 0.3% rate on the month; April PCE Price Index rose by 2.2% on the year; March Personal Income was revised to an increase by 0.8% from an increase by 0.7% and March Spending was revised to an increase by 0.4% from an increase by 0.3%.

Consumer Sentiment: 500 households are surveyed by The University of Michigan’s Consumer Survey Center, on their financial conditions and attitudes about the economy. The strength of consumer spending is directly related to consumer sentiment. Released today: University of Michigan end of May Sentiment came in at 88.3 compared to April reading at 87.1; University of Michigan 12-Month Inflation Forecast rose by 3.3% compared to April reading of an increase by 3.3% and University of Michigan 5-Year Inflation Forecast rose by 3.1% compared to April reading of an increase by 3.1%.

ISM Non-Manufacturing Survey: Compiled from approximately 400 non-manufacturing firms from 60 sectors across the United States. Included in the survey are retail trade, construction, agriculture, mining, transportation, wholesale trade and communications by the Institute of Supply Management. Released today: U.S. ISM May Manufacturing Business Index came in at 55.0 versus April reading at 54.7 and 'Major Concern' over Commodity Price increases.

Pending Home Sales Index: Reported by the National Association of Realtors, leading indicator of housing activity. As reported by the National Association of Realtors, U.S. Pending Home Sales Index fell by 3.2% in April and U.S. April Pending Home Sales fell by 10.2% from April 2006.

Commodities Markets

The trend was mostly higher across the board today for the Energy Sector: Light crude moved higher by $1.07 today to close at $65.08 a barrel; Heating Oil closed higher by $0.04 at $1.92 a gallon; Natural Gas moved lower by $0.06 at $7.88 million BTU and Unleaded Gas moved higher by $0.04 to close at $2.24 a gallon.

Metals Market ended the session higher across the board today: Gold moved nicely higher by $10.20 to close at $676.90 an ounce; Silver closed higher by $0.27 at $13.74 an ounce; Platinum moved higher today by $9.80 to close at $1,295.60 an ounce and Copper moved higher today by $0.01 to end at $3.41 per pound.

On the Livestock and Meat Markets, the trend was mostly lower across the board today: Lean Hogs ended the day higher by 0.63 to close at 75.15; Pork Bellies ended the day lower by 1.95 to close at 98.70; Live Cattle moved lower by 0.80 to end the day at 90.68 and Feeder Cattle ended the lower by 1.18 to close at 110.25.

Other Commodities: Corn moved lower today for a loss of 1.75 points to end at 383.00 and Soybeans moved nicely higher today for a gain of 11.25 points to end at 817.50.

The e-mini Dow ended the session higher by 39 points to close at 13,683. The total Dow Exchange Volume for the day came in at 122,164 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 again today: 2 year bond closed lower by 3/32 at 99 26/32; 5 year bond closed lower by 9/32 at 99 8/32; 10 year bond closed lower by 15/32 at 96 15/32 and the 30 year bond closed lower by 22/32 at 95 8/32.

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 6,351,509; Open Interest for Futures moved lower by 220,401 points to close at 10,182,132; the Open Interest for Options moved higher by 301,688 points to close at 6,828,757 and the Open Interest for OTC closed with no change at 4,959 for a total Open Interest of 17,015,848 for a total gain on the day by 81,287.

On the NYSE today, advancers came in at 2,146; decliners totaled 1,084; unchanged came in at 133; new highs came in at 410 and new lows came in at 31. Gainers and losers for the day on the NYSE: LandAmerica Financial Group Incorporated (LFG) rallied higher on the Big Board today for a nice gain of 10.23 points with a gain of 11.04% to close the trading day at $102.92; Trina Solar Limited American (TSL) fell on the trading day by 3.65 points to close the day at $42.50; Dow Jones & Company Incorporated (DJ) rallied higher by 15.10% for a gain on the session of 8.04 points to close the trading day at $61.35 and J. Crew Group Incorporated (JCG) moved higher by 11.63% for a move higher on the trading session by 5.22 points to end the day at $50.09.

On the NASDAQ today, advanced totaled 1,900 decliners totaled 1,131; unchanged came in at 157; new highs came in at 227 and new lows came in at 31. Gainers and losers for the day on the NASDAQ: CRA International Incorporated (CRAI) fell sharply by 14.18% to shed 7.50 points for a closing price on the trading day of $45.39; CKX Incorporated (CKXE) moved higher on the session by a whopping 37.91% to tack on 4.03 points to close the session at $14.66; Millicom International Cellular SA (MICC) bolted higher by 7.14 points to end the trading day at $92.22 and FCStone Group Incorporated (FCSX) posted a nice gain by 13.41% to move higher by 5.67 points to end the day at $47.96.

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Millennium-Traders