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Market Commentary for September 10, 2007


The markets were mixed at the close after spending most of the trading session, in the red zone. Trading activity was rather muted this day, ahead of the anniversary of the horrific events that occurred on September 11, 2001. Tomorrow will again bring back many sad memories that will never fade from our minds, that awful day.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a gain of 14.47 points on the day to end the session at 13,127.85; the NYSE (New York Stock Exchange) posted a loss of 28.80 points to end the session at 9,457.64; the NASDAQ posted a loss of 6.59 points for a close at 2,559.11; the S&P 500 moved lower with a loss of 1.85 points to end at 1,451.70 and the RUSSELL 2000 moved lower by 5.98 points to close at 769.81. 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 1.67 points to close at 250.82 and the FTSE RAFI 1000 posted a loss of 17.68 points to close at 5,982.35.

National Association for Business Economics Survey: Respondents See Recession As Main Economic Threat; Fed Seen Easing To 4.75% By 2008, from 5.25%; Quarter 4/Quarter 4 2007 GDP Bet Trimmed to 2.2%, 2008 at 2.8%; Core PCE Seen at 2.0% in 2007, 2008 and Unemployment Rate to Rise to 4.8% by End 2008.

Growth prospects for this year and next are dimming. Recession risks are rising and the Federal Reserve will almost certainly have to address this environment with rate cuts, a poll of top economists released Monday found. According to the latest poll of forecasters by the National Association for Business Economics, conducted as part of its fall meeting, a broad based sense of concern is creeping into the outlook. "The NABE panelists see reductions in economic growth across major spending categories," NABE President Elect and Ford Motor Company economist Ellen Hughes-Cromwick said in a statement. Some 60% of respondents to the survey pegged a recession as the "major risk" to the economy over the coming year; those fears were rooted in the sub-prime mortgage crisis and its broader implications for the housing sector as well as the economy. Meanwhile, the NABE survey found that inflation worries, which until recently had long been the chief concern of policy makers, are not the problem they once were. The report found that only a third of respondents rated price pressures as the biggest problem the economy is likely to face.

President of the Federal Reserve Bank of Dallas, Richard W. Fisher commented today: `Encouraged' Economy is `Weathering the Storm'; Some May Have `Lost Sight' of U.S. Economic Resiliency; Tighter Credit no Major Impact on Economy, it Seems; Hasn't Reached Conclusion on Correct Policy Response; Focused on Long-term, Non-inflationary Growth; Global Growth Helping US Exports, Economy; Economy had `Good Forward Momentum' at Start of 1H; Calls Jobs Report `Discordant Note'; Fed Won't Protect Risk-Takers; Will Protect System; Monetary Policy Insufficient for Sub-prime Fallout; Sub-prime Sector Needs More Supervision; New Regulation Must be 'Well Thought-Out'; U.S. Manufacturing, market Woes May Dampen Mexico Growth and Encouraged by Data from Talking to Businesspeople.

Edward Lazear, Chairman of the White House Council on Economic Advisors commented today: Inflation Outlook 'Has Improved'; Jobs Remain Readily Available; Expects Economic Growth to Continue in 2007, 2008; Doesn't Think Recession Risks are up Much; Fed has done 'Good' Job Following Mandate; Fed's Rate Policy not at Root of Mortgage Woes and has Confidence in the Federal Reserve.

Janet Yellen, Federal Reserve Bank of San Francisco comments released today as she spoke today at the National Association for Business Economic annual meeting in San Francisco, about the U.S. credit and housing markets as well as their impact on the overall economy and Fed monetary policy. Market Turmoil has Increased Risk to Economy; Hard to Determine What the Economic Outlook is Now; Rate Policy Needs `Forward-looking Approach`; `Careful And Vigilant Monitoring` of Markets Needed; Banks `Well-positioned` for Current Troubles; Rate Policy Should Not Bail Out Investors; Current Economy Data Not a Big Help to Rate Policy; `Signs of Improvement` in Inflation `Evident`; Derivatives May Not Have Functioned as Intended; Markets May Be Returning to More Normal Risk Levels; Rate Policy is Usually Forward Looking; Housing 'Weakened Substantially' Before Market Trouble and Warns Housing Prices Adjust Slowly.

Federal Reserve Bank of Atlanta President Dennis Lockhart commented today: Jobs Data Follow Strong Retail Sales; Assessing All Timely Info Ahead of FOMC; Speech Similar to Last Week's Address; Employment Data Must be Taken Seriously; Watching for Change in Consumer Sentiment; Residential, Commercial Invest Data also Key and Concern for Dollar Sell-off Exaggerated.

Economic Data:

Consumer Credit: The outstanding dollar value of consumer installment credit. The state of consumer finances and portend future spending patterns is indicated by, Consumer Credit. U.S. July Consumer Credit Increased $7.5 billion: U.S. consumers increased their borrowing in July, mostly on credit cards, while the pace of growth in car loans slowed sharply. Outstanding Consumer credit grew $7.5 billion in July to $2.457 trillion, according to the latest report from the Federal Reserve which was released Monday. That followed an $11.9 billion increase in June, which is a downward revision from the previously estimated $13.1 billion increase. July's credit growth was near Wall Street estimates that consumer credit had expanded $8.0 billion during the month. Credit data is often volatile month to month and are frequently revised. This data excludes home mortgages and other real estate-secured loans. Revolving credit, which mainly reflects credit card financing, grew $5 billion in July to $907.4 billion, compared with a $4.7 billion expansion in June. Revolving credit growth, a 6.6% annualized rate, was slightly higher than in June. In July, households' non-revolving credit such as car and boat loans grew $2.5 billion following a $7.1 billion increase in June. The pace of non-revolving credit growth slowed to an annualized rate of 1.9% in July from 5.6% in the prior month.

Commodities Markets

The trend was mostly higher across the board today for the Energy Sector: Light crude moved higher today by $0.79 to close at $77.49 a barrel; Heating Oil ended the session higher by $0.03 today at $2.17 a gallon; Natural Gas moved higher today by $0.39 to close at $5.89 per million BTU and Unleaded Gas closed lower by $0.01 at $1.98 a gallon.

Metals Market ended the session mixed across the board today: Gold moved higher today by $2.50 to close at $712.20 an ounce; Silver moved lower by $0.06 to close at $12.70 per ounce; Platinum moved lower today by $1.00 to close at $1,294.00 an ounce and Copper closed at $3.26 per pound.

On the Livestock and Meat Markets, the trend was mostly higher across the board today: Lean Hogs ended the day higher by 0.15 to close at 66.45; Pork Bellies ended the day higher by 0.10 at 87.10; Live Cattle moved lower by 0.40 to close at 95.70 and Feeder Cattle ended the day higher by 0.13 at 118.45.

Other Commodities: Corn moved lower on the day to post a loss of 1.50 at 346.50 and Soybeans moved nicely higher today for a follow up from Friday hefty gain of 12.75 points again to end the session at 918.00.

The e-mini Dow ended the session today at 13,153 with a loss of 8 points on the trading session. The total Dow Exchange Volume for the day came in at 214,183 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 3/32 at 100 8/32; 5 year bond closed higher by 7/32 at 100 19/32; 10 year bond moved higher by 14/32 today to close at 103 12/32 and the 30 year bond moved higher by 31/32 to close at 105 25/32 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 5,093,656; Open Interest for Futures moved higher by 30,211 points to close at 8,990,329; the Open Interest for Options moved higher by 219,388 points to close at 7,597,181 and the Cleared Only closed higher by 101 points at 8,457 for a total Open Interest on the day of 16,595,967 with a total Change on the day of a gain of 249,700 points.

On the NYSE today, advancers came in at 1,239; decliners totaled 1,984; unchanged came in at 71, same as on Friday; new highs came in at 40 and new lows came in at 107. Gainers and losers for the day as well as active day trading stocks on the NYSE: VMware Incorporated (VMW) posted a nice run higher today by 11.34% to tack on a gain of 7.88 points with a high on the session of $79.15, a low of $68.85 for a final trading price on the day of $77.38; CPI Corporation (CPY) made a nice run higher on the trading session by 12.01% to gain 4.56 points with a high on the day of $42.64, a low of $38.06 for a closing price on the day of $42.53; First Marblehead Corporation (FMD) climbed higher on the session by 2.34 points for a closing price on the session of $34.53 and Goldman Sachs Group Incorporated (GS) romped higher on the day to post a gain of 4.63 points with a high on the session of $186.07, a low of $178.50 to end the session of $183.61.

On the NASDAQ today, advanced totaled 1,075; decliners totaled 1,950; unchanged came in at 131; new highs came in at 33 and new lows came in at 111. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: Apple Incorporated (AAPL) made a nice run higher on the trading day to post a gain of 4.93 points with a high on the trading session of $138.04, a low on the session of $133.95 for a final trading price of $136.70; Clearwire Corporation (CLWR) moved lower on the trading session by 13.11% to shed 3.47 points for a closing price at $23.00; Google Incorporated (GOOG) posted a loss today by 3.85 points with a high on the session of $522.07, a low of $510.88 for a closing price at $515.50 and Baidu.com Incorporated (BIDU) gained 3.96 points on the session with a high of the day at $219.00, a low of $208.75 for a final trading price of $217.60.

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Millennium-Traders