No registration required! (Why?)

Market Commentary for September 14, 2007


Day Traders and Investors appeared tired today with a very weak trading session amidst light trading volume as we put an end to the trading week. It was a quiet struggle between the Bulls and the Bears with the markets ending mixed, at the closing bell. Possible the dull trading atmosphere is a result of anticipation of the Federal Reserve Open Market Committee meeting next week, regarding interest rates. Bets are on for the Fed to cut interest rates at it meeting on Tuesday but, as we all know, it’s merely a wait and see game for their final decision.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a gain of 17.64 points on the day to end the session at 13,442.52; the NYSE (New York Stock Exchange) posted a loss of 4.47 points to end the session at 9,673.65; the NASDAQ posted a minimal gain of 1.12 points for a close at 2,602.18; the S&P 500 moved higher with a minute gain of 0.30 points to end at 1,484.25 and the RUSSELL 2000 moved higher by 3.14 points to close at 783.48. 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 0.23 points to close at 256.37 and the FTSE RAFI 1000 posted a gain of 8.52 points to close at 6,124.78.

Treasury Secretary Henry M. Paulson, Jr. commented today from Chicago where he discussed the importance of trade and investment for U.S. job creation and economic growth: reiterates strong dollar is in U.S. Interest; reiterates market is re-pricing risk; says real economy healthy; penalty to growth as economy works through excesses; pressing hard on FHA modernization and urges Congress to act on FHA modernization.

Economic Data:

Current Account: International Trade balance in goods, services and unilateral transfers on a quarterly basis for the United States is measured by the Current Account. Trends in foreign trade are measured by the level of exports, imports and current account. Data released today: U.S. Second Quarter Current Account Deficit came in at $190.8 Billion versus Consensus of $189.5 Billion and U.S. First Quarter Current Account Gap was revised to $197.1 Billion versus $192.6 Billion.

Import and Export Prices: Goods bought in the United States but produced abroad plus goods sold abroad but produced domestically are compiled in an index which indicates inflationary trends in internationally traded products. Data released today: U.S. August Import Prices fell 0.3% compared to consensus of an increase by 0.1%; U.S. August Non-Petroleum Import Prices fell 0.1%; U.S. August Petroleum Import Prices fell 1.3% and U.S. Import Prices from China rose 0.3%.

Retail Sales: A measure of retail sales consisting of total receipts at stores that sell durable and non-durable goods. This data is a key element in economic growth since consumer spending accounts for two-thirds of the national Gross Domestic Products (GDP). Data released today: U.S. August Retail & Food Sales rose 0.3% compared to consensus of an increase by 0.5%; U.S. August Retail & Food Sales Excluding Autos fell 0.4% and July Retail & Food Sales was Revised to an increase by 0.5% from an increase by 0.3%.

Industrial Production: The physical output of the nation’s factories, utilities and mines. The Industrial sector accounts for less than one fifth of the economy with a mostly cyclical variation. The usage of available resources amount utilities, mines and factories is the capacity utilization rate. A warning sign of inflationary pressure is detected by an increase operating rate. Data released today: U.S. August Industrial Production rose 0.2% compared to consensus of an increase by 0.3%; U.S. August Capacity Utilization Unchanged - Pt at 82.2% compared to consensus of 82.0%; U.S. July Industrial Production was revised to an increase by 0.5% from an increase by 0.3% and U.S. July Capacity Use was revised to 82.2% from 81.9%.

Business Inventories: Dollar amount of business inventories held by manufacturers, retailers and wholesalers. Near-term direction of production activity is related to the level of inventories in relation to sales. Data released today: U.S. July Business Inventories rose 0.5% compared to expectations of 0.3%.

Consumer Sentiment: 500 households are surveyed by The University of Michigan’s Consumer Survey Center, on their financial conditions and attitudes about the economy. The strength of consumer spending is directly related to consumer sentiment. Data released today: University of Michigan’s Consumer Survey Center Mid-September Expectations came in at 74.4 compared to August reading of 73.7; University of Michigan’s Consumer Survey Center Mid- September Current Index came in at 98.3 compared to August reading of 98.4; University of Michigan’s Consumer Survey Center Mid- September Sentiment came in at 83.8 compared to August reading of 83.4; University of Michigan’s Consumer Survey Center 5-Year Inflation Forecast came in at 3.0% compared to August reading of 2.9% and University of Michigan’s Consumer Survey Center 12-Month Inflation Forecast came in at 3.1% compared to August reading of 3.2%.

Commodities Markets

The trend was mostly lower across the board today for the Energy Sector: Light crude moved lower today by $0.99 to close at $79.10 a barrel; Heating Oil moved lower today by $0.01 to close at $2.21 a gallon; Natural Gas moved higher today by $0.18 to close at $7.06 per million BTU and Unleaded Gas moved lower today by $0.01 to close at $2.04 a gallon.

Metals Market ended the session mostly lower yet again across the board today: Gold moved lower today by $0.10 to close at $717.80 an ounce; Silver moved higher by $0.03 to close at $12.71 per ounce; Platinum moved lower today by $0.70 to close at $1,299.20 an ounce and Copper closed lower by $0.01 at $3.39 per pound.

On the Livestock and Meat Markets, the trend was mostly higher across the board today: Lean Hogs ended the day lower by 0.23 to close at 68.63; Pork Bellies ended the day lower by 0.63 at 90.10; Live Cattle ended the day higher by 0.53 to close at 99.15 and Feeder Cattle ended the day higher by 0.33 at 116.85.

Other Commodities: Corn moved higher on the day to post a nice gain of 2.25 at 349.00 and Soybeans moved sharply higher today with a gain of 13.50 points to end the session at 954.75.

The e-mini Dow ended the session today at 13,553 with a gain of 17 points on the trading session. The total Dow Exchange Volume for the day came in at 162,086 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 mixer, across the board today: 2 year bond closed with no change at 99 29/32; 5 year bond closed with no change at 99 24/32; 10 year bond moved higher by 11/32 today to close at 102 8/32 and the 30 year bond moved higher by 4/32 to close at 104 11/32 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 4,039,623; Open Interest for Futures moved lower by 104,144 points to close at 8,817,414; the Open Interest for Options moved higher by 131,493 points to close at 8,239,934 and the Cleared Only closed higher by 240 points to close at 8,584 for a total Open Interest on the day of 17,065,932 with a total Change on the day of a gain of 27,589 points.

On the NYSE today, advancers came in at 1,757; decliners totaled 1,438; unchanged came in at 94; new highs came in at 66 and new lows came in at 86. Gainers and losers for the day as well as active day trading stocks on the NYSE: Rio Tinto plc (RTP) moved lower on the trading session to post a loss of 4.15 points with a high on the day of $301.25, a low of $294.22 with a closing price of $298.85; Cardinal Health Incorporated (CAH) posted a loss on the session of 3.29 points for a closing price on the day of $64.67; Bear Stearns Companies Incorporated (BSC) provided decent trading action with a high on the day of $117.64, a low of $112.70 with a gain on the day of 2.36 points for a closing price of $117.19; Allegheny Technologies Incorporated (ATI) posted a gain on the session of 3.17 points for a closing price on the day of $95.12; Uniao de Bancos Brasileiros SA (UBB) provided moderate trading activity today with a high on the day of $117.59, a low of $112.90 with a closing price on the session of $116.12 and Triumph Group Incorporated (TGI) posted a gain on the day of 3.53 points with a final trading price for the week of $79.98.

On the NASDAQ today, advanced totaled 1,635; decliners totaled 1,311 unchanged came in at 167; new highs came in at 50 and new lows came in at 94. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: ImClone Systems Incorporated (IMCL) moved lower on the trading day by 4.44 points for a final trading price of $39.04 and Equinix Incorporated (EQIX) posted a gain on the trading session of 2.75 points with a high on the day of $87.42, a low of $80.38 for a final trading price on the day of $84.66.

Thanks for reading
Millennium-Traders