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Market Commentary for August 01, 2007


Traders experienced a very nice volatile session today with the Bulls and the Bears taking turns with market activity, through out the trading day. A whip-o-tile trading session did create a difficult trading area for day traders. Investors moved in on the trading day with both buying and selling taking place amidst heavy trading volume.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a triple digit gain of 150.38 points to end the session at 13,362.37; the NYSE (New York Stock Exchange) posted a gain of 18.55 points to end the session at 9,573.05; the NASDAQ posted a gain of 7.60 points for a close at 2,553.87 the S&P 500 moved higher by 10.54 points to end at 1,465.81 and the RUSSELL 2000 moved higher by 1.80 points to close at 777.92.

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 4.46 points to close at 253.96 and the FTSE RAFI 1000 posted a gain of 35.86 points to close at 6,092.17.

Member of the Board of Governors, Randall S. Kroszner commented today: announces new measures to improve Minority Banking and more action needed on sub-prime practices.

Treasury Secretary Henry M. Paulson Jr. commented today: China talks focused on Yuan, product safety; Forex, Cap markets reform key to China Economy development; more work to do with Congress on China FX reform and overall U.S. economy healthy despite mortgage woes.

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. As reported today by the Mortgage Bankers’ Association: MBA Market Index falls 0.3% to 607.1 from 609; U.S. MBA Purchase Index falls 1.8% to 416.6 from 424.2 and U.S. MBA Refinancing Index rises 1.8% to 1724.1 from 1692.9.

Challenger Job-Cut Report: Corporate layoffs comprised in a monthly, not seasonally adjusted report which indicates a trend in the labor market. Challenger U.S. July Job Cuts reported today at 42,897, down 23.0% from June.

ADP Employment: This report is a national employment report computed from a subset of ADP records that cover roughly 225,000 business establishments and approximately 14 million employees. Macroeconomic Advisors was contracted by ADP to compute a monthly report to assist in predicting monthly non-farm payrolls from the Bureau of Labor Statistics employment situation covering private payrolls. ADP- Macroeconomic Advisers reported today that they see July Payrolls higher by 48,000.

ISM Manufacturing Survey: Compiled from approximately 400 manufacturing firms on inventories, employment, production supplier deliveries and new orders by the Institute of Supply Management. Includes export orders, import orders backlog orders as well as, prices paid for raw and unfinished materials. Data released today: U.S. ISM July Inventories Index came in at 48.5 versus reading in June at 45.3; U.S. ISM July Production Index came in at 55.6 versus reading in June at 62.9; U.S. ISM July New Orders Index came in at 57.5 versus reading in June at 60.3; U.S. ISM July Employment Index came in at 50.2 versus reading in June at 51.1; U.S. ISM July Prices Index came in at 65.0 versus reading in June at 68.0; U.S. ISM July Mfg Business Index came in at 53.8 versus reading in June at 56.0; U.S. ISM July Mfg Business Index was expected at 55.8 and U.S. ISM July Mfg Business Index came in at 53.8.

Pending Home Sales Index: Reported by the National Association of Realtors, leading indicator of housing activity. As reported today by the NAR: U.S. Pending Home Sales Index rose by 5.0% In June and U.S. June Pending Home Sales fell by 8.6% from June 2006.

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. For week of July 27th, Crude Oil Inventories fell by 6.5 Million Barrels.

Commodities Markets

The trend was mostly lower across the board today for the Energy Sector: Light crude moved lower by $1.68 today to close at $76.53 a barrel; Heating Oil ended the session lower by $0.05 at $2.07 gallon; Natural Gas moved higher today by $0.16 to close at $6.35 per million BTU and Unleaded Gas moved lower today by $0.08 to close at $2.03 a gallon.

Metals Market ended the session lower across the board today: Gold moved lower today to post a loss of $3.40 to close at $675.90 an ounce; Silver closed lower today by $0.06 to close at $12.96 per ounce; Platinum moved sharply lower today for low of $11.70 to close at $1,290.90 an ounce and Copper moved lower on the day by $0.06 again to close at $3.59 per pound.

On the Livestock and Meat Markets, the trend was lower across the board today: Lean Hogs ended the day lower by 0.63 to close at 74.58; Pork Bellies ended the day sharply lower by 3.00 to close at 87.50; Live Cattle moved lower by 1.15 to close at 98.80 and Feeder Cattle ended the day lower by 0.65 at 117.40.

Other Commodities: Corn moved lower today for a loss of 6.25 points to close at 336.00 and Soybeans moved sharply lower today for a loss of 8.75 points to end the session at 848.75.

The e-mini Dow ended the session today at 13,428 with another nice gain of 129 points on the trading session. The total Dow Exchange Volume for the day came in at 260,220 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 5/32 at 100 1/32; 5 year bond closed lower by 10/32 at 99 30/32; 10 year bond closed lower by 11/32 at 97 24/32 and the 30 year bond closed lower by 9/32 at 97 10/32.

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 5,505,269; Open Interest for Futures moved higher by 52,944 points to close at 10,173,861; the Open Interest for Options moved higher by 118,670 points to close at 8,658,754 and the Open Interest for OTC closed with no change again today at 7,590 for a total Open Interest of 18,840,205 for a total gain on the day of 171,614 points.

On the NYSE today, advancers came in at 1,352; decliners totaled 1,893; unchanged came in at 74; new highs came in at 37 and new lows came in at 498. Gainers and losers for the day on the NYSE which received much attention from many day traders: MasterCard Incorporated (MA) had a very active day trading with a high of $152.45, a low of $139.00 to give up 10.80 points with a final trading price on the Big Board of $150.00; Tupperware Brands Corporation (TUP) moved nicely higher on the trading session to tack on 22.91% for a gain of $5.96 points with a closing price on the trading day of $31.97; SPX Corporation (SPW) moved sharply lower on the trading day to shed 10.06 points with a high on the day of $92.05, a low of $79.48 for a loss of 10.72% to close the session at $83.81; Millipore Corporation (MIL) fell 4.41 points on the session to end the day at $74.20; Chipotle Mexican Grill Incorporated (CMG) rallied higher on the day by 12.28% to climb 10.85 points with a high on the day of $99.85, a low of $94.10 to end the session at $99.19; Terra Nitrogen Company L.P. (TNH) fell sharply on the session by 14.13 points to shed 12.88% on the day with a high on the day of $109.70, a low of $91.02 to close the day at $95.60; Radian Group Incorporated (RDN) moved sharply lower on the trading day with a high of $33.45, a low of $24.82 with a loss of 6.20 points to shed 18.39% for a final trading price of $27.51 and Rio Tinto plc (RTP) gave up 11.07 points on the trading session with a high on the session of $286.41, a low of $271.25 to close the session at $278.05.

On the NASDAQ today, advanced totaled 1,261; decliners totaled 1,814; unchanged came in at same as yesterday at 119, new highs came in at 39 and new lows came in at 360. Gainers and losers for the day on the NASDAQ: Blackboard Incorporated (BBBB) fell sharply on the trading day by 12.39% to move lower by 5.48 points with a final trading price of $38.75; Garmin Limited (GRMN) moved nicely by 11.06% to tack on 9.28 points with a final trading price on the day of $93.04; Buffalo Wild Wings Incorporation (BWLD) plummeted on the trading day by 16.01% for a loss of 6.92 points with a high on the day of $36.53, a low of $34.28 to end the trading session at $36.30; The9 Limited (NCTY) moved sharply lower by 13.98% to shed 6.85 points on the day with a high on the session of $49.00, a low of $41.56 to end the session at $42.15 and First Solar Incorporated (FSLR) moved lower on the trading day by 4.59 points with a high on the day of $111.42, a low of $101.36 to close the trading day at $107.98.

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Millennium-Traders