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Market Commentary for September 11, 2007


As we paid tribute to the memories of the horrific events that occurred today, the 6TH Anniversary of, the Day America Changed, the markets were higher amidst a very quiet trading session. Trading volume was light creating a difficult, almost dismal trading atmosphere for day traders and investors.

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 180.54 points on the day to end the session at 13,308.39; the NYSE (New York Stock Exchange) posted a triple digit gain of 139.97 points to end the session at 9,597.61; the NASDAQ posted a gain of 38.36 points for a close at 2,597.47; the S&P 500 moved higher with a gain of 19.79 points to end at 1,471.49 and the RUSSELL 2000 moved higher by 12.46 points to close at 799.98. 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 gain of 4.16 points to close at 254.33 and the FTSE RAFI 1000 posted a gain of 78.65 points to close at 6,061.00.

Federal Reserve Chairman, Ben S. Bernanke commented today: more financial market transparency needed; makes no remarks on current economy, policy outlook; U.S. Current Account Gap can't persist 'indefinitely'; U.S. Current Account Gap not a big economic burden; U.S. saving rate should be higher and term premiums up from unsustainably low levels.

China agrees to ban use of lead paint on toys sent to U.S.: China signed an agreement Tuesday to prohibit the use of lead paint on toys exported to the U.S. The signed agreement, which was unveiled during the second joint U.S. - China summit on consumer product safety, came in the wake of the recalls of millions of playthings decorated with paint containing the toxic metal. China has faced stiff pressure this year after an array of its exports, including toys, pet food ingredients, fish and jewelry have been recalled over health and safety concerns. In the pact, Beijing also pledged to step up inspections of its exports and take other steps to ensure that those products meet U.S. standards, said Nancy Nord, acting head of the U.S. Consumer Product Safety Commission. That will include joint efforts by the two countries to increase understanding of those standards among manufacturers and exporters. The absence of such an understanding allowed paint suppliers to provide lead paint to companies making toys sold by Mattel Inc. (MAT) and other companies, said Chuanzhong Wei, vice minister of China's General Administration of Quality Supervision, Inspection and Quarantine. Lead paint has been banned on toys made in the U.S. since 1978. "That's why we decided we should intensify the exchanges between importers and exporters in the field of standards," Wei said, speaking through a translator. U.S. and Chinese regulators also agreed to hold regular product safety talks, including monthly discussions of recall activity and trends, Nord said. China also will help the CPSC trace products to their source when problems do arise. The U.S. and China also agreed to cooperate on improving the overall safety of the latter country's toy exports, as well as fireworks, cigarette lighters and electrical products. "This is an important signal from the Chinese government that it is serious about working with CPSC to keep dangerous products out of American homes," Nord said. Wei stressed that most Chinese exports are safe, echoing a line that Beijing repeatedly has used in defending the quality of its products. While acknowledging more could be done, Wei said that 100% safety was impossible and warned against overemphasizing what he characterized as limited problems. "We should not over-propagandize the problem," Wei said.

European Central Bank Governing Council Member, Christian Noyer commented today: Possible Globalization Effects Reversed In Future. "The central banks have said the pricing of risk was too low and we said that collectively almost every time we were meeting in Basel," Noyer, who is also the governor of Bank of France, told an event hosted by the European Economics and Financial Centre. "We are not happy it has materialized but, certainly we had not imagined it would be so strong and so sharp, but we all knew there was a degree of low pricing of the risks which was most likely unsustainable in the long term," he said in London, after attending a regular meeting of central bankers in the Swiss city of Basel on Monday. Noyer also added the consequences of the current market turmoil might be felt for a while.

U.S. International Reserve Position: The Treasury Department today released U.S. reserve assets data for the latest week. As indicated in this table, U.S. reserve assets totaled $68,093 million as of the end of that week, compared to $67,376 million as of the end of the prior week. Official reserve assets and other foreign currency assets (approximate market value, in US millions)

President of the European Central Bank (ECB), Jean-Claude Trichet commented today: ECB Liquidity jabs have been significantly large; Euro System reacted promptly, effectively; confirms Monetary Stance of September 6th ; Risks to CPI remain on upside over medium term; council needs to gather more data before it acts; high level of uncertainty; monetary stance still on accommodative side; now in correction phase that can cause overshooting; maturity mismatch key transmission channel; must be prudent in drawing definite conclusions; repackaging of debt products has become overwhelming; assumptions in pricing models are not always robust; progress should be made in area of liquidity; small number of rating agencies is a problem; importance of improving fin sector surveillance; confidence, transparency of the essence; should rapidly implement reforms on hedge funds; have to improve handling of special vehicles; have to improve handling of conduits; Confidence, Transparency Of The Essence; Price Stability Is Key; to ensure correct functioning of Money Market; Central Banks must have close link with surveillance and the ECB will not bail out investors.

Economic Data:

ICSC-UBS Store Sales: Weekly measure of comparable store sales at major retail chains which is related to the general merchandise portion of retail sales, as reported by the International Council of Shopping Centers. This date accounts for approximately 10% of total retail sales. ICSC-UBS Chain Store Sales Up 0.3% for week of September 8th. Chain store sales rose modestly in the week ending September 8th despite a slightly more negative economic backdrop, according to an index compiled by the International Council of Shopping Centers and UBS Securities LLC (UBS). The ICSC-UBS Chain Store Sales Index rose 0.3% last week from its level the week before on a seasonally-adjusted comparable-store basis, according to a press release published Tuesday. That follows a gain of 0.2% in the prior week. "Sales improved moderately over last week as the August sales momentum continued into the September fiscal month," said Michael P. Niemira, chief economist for ICSC. "Despite the more negative economic picture painted by the August decline in employment, consumers continued to spend at a moderate pace. On the year, chain store sales were up 2.9% in the week ending September 8th, compared with a gain of 2.3% in the week to September 1st. "For September, we expect retail sales to increase by 2.5%, on a year-over-year basis," Niemira added.

International Trade: Details of International trade measures the difference between imports and exports of tangible goods and services. As Imports may apply a draw on the economy, they also increase competitive pressure among domestic producers while Exports give a boost to domestic production. U.S. July Trade Deficit came in at $59.25 Billion compared to consensus Deficit of $59.20 Billion; July Exports came in at $137.68 Billion, an increase by 2.7%; July Imports came in at $196.93 Billion, an increase by 1.8% and June Trade Balance was revised to Deficit of $59.43 Billion from Deficit of $58.14 Billion.

Redbook: General merchandise portion of retail sales covering only approximately 10% of total retail sales, this data is a weekly measure of sales at department stores, chain stores and discounters. Redbook data released today: U.S. Retail Sales were Up 1.1% for first week in September versus August. National chain store sales rose 1.1% in the first week of September versus the previous month of August, according to Redbook Research's latest indicator of national retail sales released Tuesday. The rise in the index was compared to a targeted 0.8% gain. The Johnson Redbook Index also showed seasonally adjusted sales in the one-week period rose 2.8% compared with September 2006 and relative to a target of a 2.6% gain. Redbook said on an unadjusted basis, sales in the week ended September 8th were up 2.8% from the same week in 2006, following a 2.7% gain the prior week. Sales "continue to be driven by the twin themes of back-to-school and seasonal apparel," Redbook said. "Some retailers are nearing the end of their back to school calendars, while others expect the momentum of back to school to last through September, reflected in sales of children's clothing, school supplies and electronics."

Commodities Markets

The trend was higher across the board today for the Energy Sector: Light crude moved higher today by $0.74 to close at $78.23 a barrel; Heating Oil ended the session higher by $0.01 today at $2.18 a gallon; Natural Gas moved higher today by $0.06 to close at $5.95 per million BTU and Unleaded Gas closed at $1.98 a gallon.

Metals Market ended the session higher across the board today: Gold moved nicely higher today by $8.90 to close at $721.10 an ounce; Silver moved higher by $0.14 to close at $12.84 per ounce; Platinum moved nicely higher today by $8.60 to close at $1,302.60 an ounce and Copper closed higher by $0.13 at $3.39 per pound.

On the Livestock and Meat Markets, the trend was mostly lower across the board today: Lean Hogs ended the day lower by 0.60 to close at 65.85; Pork Bellies ended the day lower by 0.28 at 86.83; Live Cattle closed at 95.70 and Feeder Cattle ended the day lower by 0.13 at 118.33.

Other Commodities: Corn moved lower on the day to post a loss of 4.75 at 341.25 and Soybeans moved higher today with a gain of 2.50 points again to end the session at 920.50.

The e-mini Dow ended the session today at 13,318 with a gain of 160 points on the trading session. The total Dow Exchange Volume for the day came in at 205,757 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 4/32 at 100 4/32; 5 year bond closed lower by 9/32 at 100 10/32; 10 year bond moved lower by 8/32 today to close at 103 4/32 and the 30 year bond moved lower by 1/32 to close at 105 24/32 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 3,937,053; Open Interest for Futures moved higher by 1,317 points to close at 8,991,646; the Open Interest for Options moved higher by 219,926 points to close at 7,815,047 and the Cleared Only closed lower by 113 points at 8,344 for a total Open Interest on the day of 16,815,037 with a total Change on the day of a gain of 221,130 points.

On the NYSE today, advancers came in at 2,308; decliners totaled 900; unchanged came in at 85; new highs came in at 57 and new lows came in at 60. Gainers and losers for the day as well as active day trading stocks on the NYSE: Rio Tinto plc (RTP) bolted higher on the Big Board today to post a gain of 12.53 points with a high on the day of $303.78, a low of $293.90 with a closing price of $301.78; Aluminum Corporation of China Limited (ACH) moved higher on the session to post a gain of 5.40 points with a high on the day of $66.21, a low of $63.54 for a closing price of $66.18; Terra Nitrogen Company L.P. (TNH) moved higher on the day for a gain of 5.45 points with a high on the day of $114.74, a low of $108.93 to close the day at $113.14; BlackRock Incorporated (BLK) rose higher on the trading day by 5.48 points with a high on the session of $158.22, a low of $152.30 to end the trading session at $157.58; Precision Castparts Corporation (PCP) posted a gain on the day of 5.18 points with a high on the day of $134.26, a low of $126.73 for a final trading price of $132.64 and National-Oilwell Varco Incorporated (NOV) made a move into higher territory today with a high on the day of $137.50, a low of $130.03 with a gain of 6.30 points for a final trading session price of $136.94.

On the NASDAQ today, advanced totaled 2,084; decliners totaled 932; unchanged came in at 129; new highs came in at 47 and new lows came in at 83. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: United Retail Group Incorporated (URGI) rallied higher on the trading session to post a sharp gain of 5.85 points to rise 77.48% for a closing price of $13.40; ImClone Systems Incorporated (IMCL) posted a sharp gain on the day of 20.68% to rise higher by 7.84 points for a closing price of $45.77; G-III Apparel Group Limited (GIII) moved higher on the session with a gain of 17.84% to tack on 3.05 points to close the session at $20.16; MFRI Incorporated (MFRI) fell sharply lower on the session with a loss of 25.65% to shed 5.96 points with a closing price on the day of $17.29 and Trubion Pharmaceuticals Incorporated (TRBN) moved heavily lower on the day to post a sharp loss of 31.83% to shed 6.07 points with a high on the session of $17.00, a low of $12.75 to close at $13.00.

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