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Market Commentary for September 07, 2007


Jobs data put a hard damper on the markets today, with the Bears firmly in control of the southbound sluggish trading action. Trading activity was heavy at the open, as the major indices moved lower as the day moved on. Day traders had little action to go on during the afternoon trading session while most investors were biting their nails on the massive sell off. The information released today about the UBL tape did nothing to help the markets other than, add additional fear as we move forward toward the 6th anniversary of the horrific events that occurred on September 11, 2001.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a hefty loss of 249.97 points on the day to end the session at 13,113.35; the NYSE (New York Stock Exchange) posted a triple digit loss of 151.11 points to end the session at 9,486.44; the NASDAQ posted a loss of 48.62 points for a close at 2,565.70; the S&P 500 moved lower with a loss of 25.00 points to end at 1,453.55 and the RUSSELL 2000 moved lower by 17.13 points to close at 775.79. 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 world’s investable market capitalization) posted a loss of 3.05 points to close at 252.43 and the FTSE RAFI 1000 posted a triple digit loss of 104.90 points to close at 6,000.03.

Treasury Secretary Henry M. Paulson Jr. commented today: jobs data 'not totally surprising'; economy will continue to grow in 2H; credit situation requires vigilance; confident in 'resilient economy'; sees similarities to past market turmoil; key is 'to get it right, not overreact'; GSE’s need 'strong, independent regulator' and working with lenders to identify sub-prime risk.

Rodrigo de Rato, Managing Director of the International Monetary Fund commented today: U.S. inflation "on a downward path"; U.S. inflation "clearly contained" and urges regulators to speed up clarification.

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. U.S. Payrolls decline for first time since August 2003; U.S. August Unemployment Rate came in at 4.6% compared to consensus of 4.6%; U.S. August Non-farm Payrolls fell 4K compared to consensus of an increase by 112K; U.S. August Manufacturing Payrolls fell 46K; U.S. August Service-Producing Payrolls rose 60K; U.S. August Average Hourly Earnings rose $0.05 to $17.50; U.S. July Unemployment left unrevised at 4.6%; U.S. July Payrolls Revised to an increase by 68K from an increase by 92K and U.S. Jun Payrolls Revised to an increase by 69K from an increase by 126K.

Wholesale Trade: The dollar value of sales made and inventories held by merchant wholesalers is a measurement referred to as, wholesale trade. U.S. July Wholesale Inventories rose 0.2% compared to expectations of an increase by 0.5%.

Commodities Markets

The trend was mostly higher across the board today for the Energy Sector: Light crude moved higher today by $0.40 to close at $76.70 a barrel; Heating Oil ended the session higher by $0.01 today at $2.14 a gallon; Natural Gas moved lower today by $0.15 to close at $5.50 per million BTU and Unleaded Gas closed higher by $0.01 at $1.99 a gallon.

Metals Market ended the session mostly higher across the board today: Gold moved higher today by $5.10 to close at $709.70 an ounce; Silver moved higher by $0.23 to close at $12.76 per ounce; Platinum moved higher today by $6.10 to close at $1,295.00 an ounce and Copper closed lower by $0.05 today at $3.25 per pound.

On the Livestock and Meat Markets, the trend was mostly lower across the board today: Lean Hogs ended the day higher by 0.30 to close at 66.60; Pork Bellies ended the day lower by 1.30 at 87; Live Cattle moved lower by 0.70 to close at 96.10 and Feeder Cattle ended the day lower by 0.83 at 118.33.

Other Commodities: Corn moved sharply higher on the day with a gain of 8.25 at 347.50 and Soybeans moved higher today for a hefty gain of 12.75 points to end the session at 905.25.

The e-mini Dow ended the session today at 13,162 with a hefty loss of 216 points on the trading session. The total Dow Exchange Volume for the day came in at 148,518 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 11/32 at 100 6/32; 5 year bond closed higher by 26/32 at 100 13/32; 10 year bond moved higher by 1 3/32 today to close at 103 and the 30 year bond moved higher by 1 24/32 to close at 104 30/32 for the day.

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 4,188,742; Open Interest for Futures moved lower by 65,263 points to close at 8,960,118; the Open Interest for Options moved higher by 187,750 points to close at 7,378,393 and the Cleared Only closed higher by 12 points at 8,356 for a total Open Interest on the day of 16,346,867 with a total Change on the day of a gain of 122,499 points.

On the NYSE today, advancers came in at 741; decliners totaled 2,484; unchanged came in at 71; new highs came in at 26 and new lows came in at 74. Gainers and losers for the day as well as active day trading stocks on the NYSE: Rio Tinto plc (RTP) shed 6.77 points on the trading session with a high of $299.32, a low of $290.23 with a closing price on the trading day of $294.75; Enzo Biochem Incorporated (ENZ) plummeted on the trading session to post a loss of 29.32% to shed 5.21 points with a final price on the session at $12.56; Uniao de Bancos Brasileiros SA (UBB) moved sharply lower on the session by 4.78 points to close the week at $105.79; CME Group Incorporated (CME) fell hard on the trading day to post a loss of 12.38 points with a high on the session of $551.16, a low of $541.27 for a closing price on the Big Board of $544.65 and National-Oilwell Varco Incorporated (NOV) took a hit on the trading session for a loss of 4.24 points with a high on the day of $132.60, a low of $128.44 for a closing price of $129.89.

On the NASDAQ today, advanced totaled 679; decliners totaled 2,345; unchanged came in at 97; new highs came in at 21 and new lows came in at 89. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: Apple Incorporated (AAPL) moved lower on the trading day with a loss of 3.03 points for a final price at $131.98; Pozen Incorporated (POZN) climbed higher on the trading session to post a gain of 27.76% with a rise by 2.77 points for a final trading price of $12.75; Clearwire Corporation (CLWR) posted a nice gain on the session of 12.87% to climb higher by 2.97 points for a final trading price on the day of $26.05 and Theravance Incorporated (THRX) moved lower on the session by 11.37% to shed 3.60 points with a closing price of $28.14.

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