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Market Commentary for July 25, 2007


The Bulls held the upper hand during the early morning session however, the Bears roared in to take their position on the trading day throughout the session. Trading volume was heavy today with nice trading ranges for day traders. Weak home sales did not damper the trading action and traders saw a volatile session, throughout the trading day. The major indices made a strong effort to recover some of the hefty losses seen yesterday.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a gain of 68.12 points to end the session at 13,785.07; the NYSE (New York Stock Exchange) posted a gain of 20.41 points to end the session at 9,930.36; the NASDAQ posted a gain of 8.31 points for a close at 2,648.17; the S&P 500 moved higher by 7.05 points to end at 1,518.09 and the RUSSELL 2000 moved higher by 0.64 points to close at 812.50.

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) posted a loss of 2.95 points to close at 264.38 and the FTSE RAFI 1000 posted a gain of 15.68 points to close at 6,321.69.

Economic Data:

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. MBA Purchase Applications data released today: U.S. MBA Purchase Index falls 5% to 424.2 from 446.5; US MBA Refinancing Index falls 1.4% to 1692.9 from 1717.4 and U.S. MBA Market Index falls 3.6% to 609 from 631.6.

Existing Home Sales: Previously constructed homes, co-ops and condominiums closed during the month are tallied as Existing Home sales as reported by the National Association of Realtors. Existing Home Sales account for a large share of the market compared to new home sales plus, indicates the trend in housing markets. Existing Home Sales data released today: U.S. June Existing Home Sales fell by 3.8% to the rate of 5.75 Million; U.S June Existing Home Sales Consensus came in at 5.87 Million rate; U.S Inventory of Unsold U.S. Homes came in at 8.8 Months supply and U.S June Median Existing Home Price rose 0.3% on the year to $230,100.

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 EIA Petroleum Status data today: U.S. Crude Oil Stockpiles were down by 1.1 Million Barrels in the week compared to expectations of a drop by 1.1 Million Barrels and U.S. Refineries ran at 91.7% capacity compared to expectations of an increase by 0.8 Pt. at 91.8%.

Beige Book: The Beige Book is a compilation of anecdotal evidence on economic conditions from each of the 12 Federal Reserve districts. Notes from the Beige Book. Fed Beige Book released today: Economic activity still expanding; some districts see moderate growth, 2 reports mixed; residential housing `continued to decline`; overall consumer spending modest; hiring increased in most regions and sectors; wage increases moderate or same as last report; input cost pressures `ongoing`; retail prices increased `at a moderate rate` and manufacturing activity continued to expand.

Commodities Markets

The trend was higher across the board today for the Energy Sector: Light crude moved higher by $1.59 today to close at $75.15 a barrel; Heating Oil ended the session higher by $0.01 at $2.06 a gallon; Natural Gas moved higher today by $0.09 to close at $6.04 per million BTU and Unleaded Gas moved higher today by $0.0026 again to close at $2.07 a gallon.

Metals Market ended the session lower across the board today: Gold moved lower today to post a sharp loss of $11.00 to close at $673.80 an ounce; Silver closed lower today by $0.29 at $13.44 15 ounce; Platinum moved lower today for loss of $2.70 to close at $1,330.90 an ounce and Copper moved lower on the day by $0.06 to close at $3.56 per pound.

On the Livestock and Meat Markets, the trend was mixed across the board again today: Lean Hogs ended the day higher by 0.63 to close at 71.98; Pork Bellies ended the day with no change at 90.15; Live Cattle moved lower by 0.63 to close at 96.85 and Feeder Cattle ended the day lower by 0.73 at 116.85.

Other Commodities: Corn moved higher today for a gain of 0.75 points for a close at 327.50 and Soybeans moved lower today with a loss of 6.00 points to end the session at 839.50.

The e-mini Dow ended the session today at 13,838 with a gain of 28 points on the trading session. The total Dow Exchange Volume for the day came in at 208,538 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 mixed across the board today: 2 year bond closed with no change at 100 7/32; 5 year bond closed higher by 1/32 at 100 11/32; 10 year bond closed higher by 1/32 at 96 25/32 and the 30 year bond closed with at 95 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 3,823,671. Open Interest for Futures moved higher by 2,710 points to close at 9,970,047; the Open Interest for Options moved higher by 96,475 points to close at 9,392,678 and the Open Interest for OTC moved higher by 420 points to close at 7,710 for a total Open Interest of 19,370,435 for a total gain on the day by 99,605 points.

On the NYSE today, advancers came in at 807; decliners totaled 1,399; unchanged came in at 71; new highs came in at 40 and new lows came in at 336. Gainers and losers for the day on the NYSE: Rio Tinto plc (RTP) fell hard again on the trading session with a loss of 7.03 points for a high on the session of $302.77, a low of $288.20 to close the trading day at $296.65; Snap-on Incorporated (SNA) posted a favorable gain on the session of 11.24% to tack on 5.62 points for a high of $57.81, a low of $51.90 to close the day at $55.61; National-Oilwell Varco Incorporated (NOV) bolted higher on the session by 11.56 points to gain 10.29% on the day with a high of $124.40, a low of $113.74 for a final trading price on the day of $123.89; Jones Lang LaSalle Incorporated (JLL) was a very active day trading stock with a high of $123.90, a low of $109.17 to end the trading session at $115.77; Manitowoc Company Incorporated (MTW) shed 2.92 points on the day with a high of $80.77, a low of $73.02 to close the trading session at $77.35; Perini Corporation (PCR) plummeted on the trading session with a loss of 12.39% to shed 8.91 points with a high of $73.69, a low of $61.32 to close the day at $63.00; Beckman Coulter Incorporated (BEC) made a nice run higher on the day by 5.54 points for a final trading price on the day of $73.28 and CME Group Incorporated (CME) moved lower again today with a high of $558.01, a low of $539.40 to shed 1.48 points with a final trading price of $547.52.

On the NASDAQ today, advanced totaled 1,359; decliners totaled 1,698; unchanged came in at 116, new highs came in at 55 and new lows came in at 240. Gainers and losers for the day on the NASDAQ: Alexion Pharmaceuticals Incorporated (ALXN) rallied higher on the session with a gain of 15.14% to tack on 7.52 points to close the session at $57.20; Amazon.com Incorporated (AMZN) posted a very strong gain on the trading day of 24.69% to tack on 17.10 points on the session for a closing price of $86.35; Joy Global Incorporated (JOYG) fell sharply lower on the trading day to post a loss of 11.94% for a loss of 7.11 points to end the session at $52.45; Portfolio Recovery Associates Incorporated (PRAA) moved sharply lower on the trading day with a high of $58.16, a low of $50.62 for a loss of 12.26% to shed 7.51 points for a final trading price at $53.77; NutriSystem Incorporated (NTRI) posted a strong loss on the day by 10.79% to give up 6.88 points with a closing price at $56.90 ; PACCAR Incorporated (PCAR) moved lower on the trading day to post a loss of 4.85 points to end at $87.86 and Dade Behring Holdings Incorporated (DADE) bolted higher on the session on buyout news to tack on a whopping 32.82% for a gain of 18.35 points to close the day at $74.26.

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