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Market Commentary for July 27, 2007


The markets experienced another strong sell off today as fears continue to plague investors. Trading volume was heavy as the markets moved lower from their highs of the day during the early morning session. Trading ranges were wide although the strong volatility experienced yesterday was not as evident by active day traders as it was yesterday. Fears continue over the housing and the credit markets.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted anther triple digit loss of 208.10 points to end the session at 13,265.47; the NYSE (New York Stock Exchange) posted a triple digit loss of 146.15 points to end the session at 9,508.23; the NASDAQ posted a gain loss of 37.10 points for a close at 2,562.24; the S&P 500 moved lower by 23.71 points to end at 1,458.95 and the RUSSELL 2000 moved lower by 13.65 points to close at 777.4883 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 2.93 points to close at 254.53 and the FTSE RAFI 1000 posted a loss of 78.12 points to close at 6,083.01.

Treasury Secretary Henry M. Paulson Jr. commented today: GDP driven by strong growth outside U.S.; very much for a strong Dollar; what we're seeing in markets is risk being re-priced; less risk than a couple months ago but more apparent; my job is to be vigilant on market developments and urging China to speed up reform, currency rise.

Deputy Secretary of the Department of Treasury Robert M. Kimmitt commented today: APEC Finance Ministers to discuss Forex, trade, investing and world economy well-served by flexible currency regimes.

Economic Data:

GDP (advance): Gross Domestic Product (GDP) encompasses every sector of the economy and is the broadest measure of aggregate economic activity. U.S. GDP released today, rose at a rate of 3.4% during 2nd quarter as compared to consensus of an increase by 3.3%; Real Final Sales rose by rate of 3.2% during 2nd quarter; PCE Price Index rose by rate of 4.3% during 2nd quarter; Domestic Purchases Price Index rose by rate of 3.9% during 2nd quarter and Chain-Weighted Price Index rose by rate of 2.7% during 2nd quarter.

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. University of Michigan’s Consumer Survey Center data released today: End July Sentiment came in at 90.4 as compared to reading in June at 85.3; End- July Current Index came in at 104.5 as compared to reading in June at 101.9; End- July Expectations came in at 81.5 as compared to reading in June at 74.7; Preliminary July Sentiment was 92.4; 5-Year Inflation Forecast rose by 3.1% as compared to reading in June higher by 2.9%; 12- Month Inflation Forecast rose by 3.4% as compared to reading in June higher by 3.4% and End- July Expectations came in at 81.5 as compared to reading in June of 74.7.

Commodities Markets

The trend was higher across the board today for the Energy Sector: Light crude moved higher by $2.07 today to close at $77.02 a barrel; Heating Oil ended the session higher by $0.04 at $2.09 gallon; Natural Gas moved higher today by $0.13 to close at $6.21 per million BTU and Unleaded Gas moved higher today by $0.03 to close at $2.10 a gallon.

Metals Market ended the session mostly lower across the board today: Gold moved lower today to post a loss of $2.80 to close at $672.30 an ounce; Silver closed lower today by $0.24 at $12.72 per ounce; Platinum moved sharply lower today for substantial loss of $41.40 to close at $1,286.70 an ounce and Copper moved higher on the day by $0.02 to close at $3.55 per pound.

On the Livestock and Meat Markets, the trend was higher across the board today: Lean Hogs ended the day higher by 1.50 to close at 72.55; Pork Bellies ended the day higher by 1.35 to close at 90.65; Live Cattle moved higher by 1.45 to close at 98.65 and Feeder Cattle ended the day higher by 0.73 at 117.78.

Other Commodities: Corn moved higher today for a gain of 3.00 points to close at 336.50 and Soybeans moved lower today with a loss of 6.00 points to end the session at 840.50.

The e-mini Dow ended the session today at 13,287 with another sharp decline by 247 points on the trading session. The total Dow Exchange Volume for the day came in at 361,383 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 higher across the board today: 2 year bond closed higher by 13/32 at 100 6/32; 5 year bond closed higher by 10/32 at 100 8/32; 10 year bond closed higher by 5/32 at 97 31/32 and the 30 year bond closed higher by 9/32 at 97 4/32.

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 7,809,173; Open Interest for Futures moved higher by 241,434 points to close at 10,245,993; the Open Interest for Options moved higher by 205,284 points to close at 9,668,492 and the Open Interest for OTC moved lower by 120 points to close at 7,590 for a total Open Interest of 19,922,075 for a total gain on the day by 446,598 points.

On the NYSE today, advancers came in at 1,008; decliners totaled 2,234; unchanged came in at 79; new highs came in at 25 and new lows came in at 390. Gainers and losers for the day on the NYSE which received much attention from many day traders: CME Group Incorporated (CME) made a very nice rebound from losses over past few days with a high in the trading session of $567.26, a low of $532.58 for a substantial gain on the day of 19.00 points for a final trading price of $556.50; Freeport-McMoRan Copper & Gold Incorporated (FCX) provided very nice day trading action with a high on the session of $92.22, a low of $86.85 to close the session at $89.95; Cleveland Cliffs Incorporated (CLF) posted a loss on the session of 6.31 points with a high of $75.66, a low of $67.94 to close the trading day at $69.39; U.S.B. Holding Company Incorporated (UBH) rallied higher on the trading session with a high of $24.29, a low of $15.18 for a gain of 8.76 points to tack on a whopping 57.29% for a closing price at $24.05; SPX Corporation (SPW) made a nice move during the market session with a gain of 3.28 points to close the week at $88.67; Terra Nitrogen Company L.P. (TNH) moved nicely throughout the trading session with a high of $123.69, a low of $115.65 for a final trading price at $117.86 and Rio Tinto plc (RTP) continued its trend into lower territory today with a high on the day of $278.99, a low of $265.34 to shed 7.25 points for a closing price at $271.38.

On the NASDAQ today, advanced totaled 888; decliners totaled 2,196; unchanged came in at 96, new highs came in at 39 and new lows came in at 282. Gainers and losers for the day on the NASDAQ: Kyphon Incorporated (KYPH) bolted higher on the trading day for a gain of 12.95 points to tack on 12.95% on a buyout announcement for a final trading price on the day of $66.63; Deckers Outdoor Corporation (DECK) made a strong move higher during the trading session with a high of $109.89, a low of $100.00 for a gain of 14.26 points to move higher by 15.09% to end the day at $108.83; Crocs Incorporated (CROX) moved higher on the trading day for a gain on the session of 4.83 points to close the week at $55.42 and Baidu.com Incorporated (BIDU) was an active day trading stock for the session with a high of $213.07, a low of $203.10 with a loss on the day of 3.81 points to end the trading day at $205.25.

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Millennium-Traders