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Market Commentary for August 03, 2007


As we closed the first week of August, the markets were in the hands of the Bears, moving lower and lower, as the day moved on. We saw a wide trading range with heavy selling during the trading session. Trading volume was heavy amidst the days trading sell off.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a triple digit loss today of 281.42 points to end the session at 13,181.90; the NYSE (New York Stock Exchange) posted a triple digit loss of 248.73 points to end the session at 9,370.60; the NASDAQ posted a heavy loss of 64.73 points for a close at 2,511.25; the S&P 500 moved sharply lower by 39.14 points to end at 1,433.06 and the RUSSELL 2000 moved higher by 6.08 points to close at 783.99. 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 2.77 points to close at 252.09 and the FTSE RAFI 1000 posted a triple digit loss of 170.51 points to close at 5,949.6817.

Economic Data:

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 reported today: U.S. July Overall Workweek fell 0.1 Hour to 33.8 Hours; U.S. July Manufacturing Payrolls fell by 2K; U.S. July Service-Producing Payrolls rose by 104K; U.S. July Average Hourly Earnings rose $0.06 to $17.45; U.S. July Unemployment Rate came in at 4.6% versus consensus of 4.5%; U.S. July Non-farm Payrolls rose by 92K versus consensus of 130K; U.S. June Unemployment left unrevised at 4.5% and U.S. June Payrolls revised to an increase by 126K from an increase of 132K.

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. As released today: U.S. ISM data released today: ISM July Non-Manufacturing New Orders Index came in at 52.8 versus 56.9 in June; ISM July Non-Manufacturing Prices Index came in at 61.3 versus June reading of 65.5; ISM July Non-Manufacturing Employment Index came in at 51.7 versus June reading of 55.0; ISM July Non-Manufacturing Business Index Expected 58.5 and ISM July Non-Manufacturing Business Index came in at 55.8.

Commodities Markets

The trend was lower across the board today for the Energy Sector: Light crude moved lower by $1.38 today to close at $75.48 a barrel; Heating Oil ended the session lower by $0.04 at $2.03 gallon; Natural Gas moved lower today by $0.02 to close at $6.09 per million BTU and Unleaded Gas moved lower by $0.01 again today to close at $2.03 a gallon.

Metals Market ended the session mixed across the board today: Gold moved higher today to post a gain of $7.80 to close at $684.40 an ounce; Silver closed higher today by $0.16 to close at $13.16 per ounce; Platinum moved lower today by $1.00 to close at $1,298.00 an ounce and Copper moved lower on the day by $0.09 to close at $3.48 per pound.

On the Livestock and Meat Markets, the trend was mostly lower across the board again today: Lean Hogs ended the day higher by 1.90 to close at 77.60; Pork Bellies ended the day lower again today by 4.50 to close at 80.00; Live Cattle moved lower by 0.18 to close at 98.98 and Feeder Cattle ended the day lower by 0.03 at 116.33.

Other Commodities: Corn moved higher today for a gain of 1.75 points to close at 343.00 and Soybeans moved higher today for a gain of 6.50 points to end the session at 861.00.

The e-mini Dow ended the session today at 13,278 with a sharp loss of 249 points on the trading session. The total Dow Exchange Volume for the day came in at 235,101 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 again today: 2 year bond closed higher by 10/32 at 100 12/32; 5 year bond closed higher by 19/32 at 100 20/32; 10 year bond closed higher by 23/32 at 98 19/32 and the 30 year bond closed higher by 26/32 at 98 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 4,325,382; Open Interest for Futures moved lower by 44,718 points to close at 10,112,442; the Open Interest for Options moved higher by 126,248 points to close at 8,545,320 and the Open Interest for OTC closed higher by 30 points at 7,407 for a total Open Interest of 18,665,169 for a total gain on the day of 42,696 points.

On the NYSE today, advancers came in at 548; decliners totaled 2,705; unchanged came in at 60; new highs came in at 47 and new lows came in at 350. Gainers and losers for the day on the NYSE which received much attention from many day traders: The Bear Stearns Companies Incorporated (BSC) moved lower on the trading session by 7.28 points to close the week at $108.35; TETRA Technologies Incorporated (TTI) plummeted on the trading session for a loss of 25.14% to shed 6.64 points to end the trading session at $19.77; RAIT Financial Trust (RAS) moved sharply lower on the day for a loss of 33.75% to give up 3.22 points to close the session at $6.32; Chiquita Brands International Incorporated (CQB) fell by 22.81% for a loss on the day of 4.17 points to close the week at $14.11; MasterCard Incorporated (MA) moved much lower on the session today to give up 11.36 points with a trading day high of $140.65, a low of $128.17 for a final trading price of $131.36; PNM Resources Incorporated (PNM) fell by 15.90% to move lower by 4.30 points for a closing price at $22.74 and MetroPCS Communications Incorporation (PCS) moved sharply lower by 20.14% to move lower by 7.86 points to close the trading session at $31.16.

On the NASDAQ today, advanced totaled 599; decliners totaled 2,459; unchanged came in at 106, new highs came in at 51 and new lows came in at 383. Gainers and losers for the day on the NASDAQ: Leap Wireless International (LEAP) gave up 6.15 points for a final trading day price at $82.50; Jones Soda Corporation (JSDA) moved lower by a heavy 26.01% for a loss on the day of 3.98 points with a final trading price of $11.32; Network Appliance Incorporation (NTAP) shed 19.79% on the session for a loss of 5.68 points for a close at $23.02; BigBand Networks Incorporated (BBND) fell sharply lower by 25.15% to give up 3.51 points with a final trading price of $10.46 and Foster Wheeler Limited (FWLT) moved lower by 7.36 points to close the day at $110.20.

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Millennium-Traders