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Market Commentary for September 26, 2007


The Bulls were out in full force today, holding the major indices in positive territory through out the trading session. Overall trading activity was a bit sluggish with light trading volume on the day. The United Auto Workers strike at General Motors was tentatively settled today, giving another boost to the markets. Warren Buffet reportedly to be one of the outside investors to buy into Bear Stearns, by at least 20%. Reported additional investors in the deal include Bank of America and Wachovia plus, Citic and China Construction Bank, both Chinese institutions.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a gain of 99.50 points on the day to end the session at 13,878.15; the NYSE (New York Stock Exchange) posted a gain of 46.30 points to end the session at 9,980.12; the NASDAQ posted a gain of 15.58 points for a close at 2,699.03; the S&P 500 moved higher with a gain of 8.21 points to end at 1,525.42 and the RUSSELL 2000 moved higher by 6.12 points to close at 809.12. 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 1.60 points to close at 265.56 and the FTSE RAFI 1000 posted a gain of 44.78 points to close at 6,273.15.

Department of Energy data released today: U.S. Crude Oil Stockpiles rose by 1.8 Million Barrels in the week compared to expectation of a drop by 1.8 Million Barrels; U.S. Gasoline Stockpiles rose by 600,000 Barrels in the week compared to expectation of an increase by 200,000 Barrels; U.S. Distillate Stockpiles rose by 1. 6 Million Barrels in the week compared to expectation of an increase by 1.1 Million Barrels and U.S. Refineries ran at a capacity of 86.9% compared to expectations of a drop by 0.6 percent at 89%.

U.S. August Durable Goods Orders fell by 4.9% compared to consensus of a drop by 3.1%; August Durable Goods Orders, Excluding Defense fell by 5.9%; August Durable Goods Orders, Excluding Transportation fell by 1.8% and July Durable Goods Orders were revised to an increase by 6.1% from an increase by 6.0%.

U.S. MBA Market Index falls 2.8% to 654.2 from 673.2; U.S. MBA Purchase Index falls 7.3% to 418.8 from 452 and U.S. MBA Refinancing Index rises 3.3% to 2026.5 from 1962.

President of Federal Reserve Bank of Philadelphia, Charles I. Plosser comments released from after market hours yesterday: Plosser On US Housing Woes: 'Don't Know When It Will End'; despite market turmoil, companies not affected; spillover from credit market woes may not be large; 'we don't respond to any given number'; cutting funds rate can 'aggravate' inflation; expecting higher prices could cause inflation; high liquidity, oil prices are inflation risks; Fed should 'pick a number' in inflation-targeting; not ready to declare victory on inflation; Fed expects weaker economic data in coming months and 'much' weaker data could lead to more rate moves.

Paulson and Gutierrez Call for Permanent Moratorium on Internet Taxes
WASHINGTON, DC -- U.S. Treasury Secretary Henry M. Paulson and Commerce Secretary Carlos M. Gutierrez issued a statement today calling for the Senate to make permanent the moratorium on Internet access taxes and on multiple or discriminatory taxes on electronic commerce. The Senate Commerce Committee will mark up S. 1453, the Internet Tax Freedom Extension Act of 2007, on Thursday. "The Internet is an innovative force that opens up the vast potential economic and social benefits of electronic commerce. Preventing the taxation of Internet access will help sustain an environment for innovation, ensure that consumers continue to have affordable access to the Internet, especially high-speed Internet, and strengthen the foundations of electronic commerce as a vital and growing part of our economy. "Congress has an opportunity to demonstrate bipartisan leadership by passing essential legislation before the current moratorium expires on November 1 of this year. We urge the Congress to expedite passage of a permanent extension so that President Bush can sign it into law before the current moratorium expires. "The Administration has worked hard, in a bipartisan fashion, to promote innovation and the economic benefits that come from electronic commerce. We look forward to working with Congress on this important issue."

Commodities Markets
The trend was mostly lower across the board today for the Energy Sector: Light crude moved higher today by $0.77 to close at $80.30 a barrel; Heating Oil moved lower today by $0.01 to close at $2.20 a gallon; Natural Gas moved lower today by $0.04 to close at $7.05 per million BTU and Unleaded Gas moved lower today by $0.01 to close at $2.03 a gallon.

Metals Market ended the session mostly lower across the board today: Gold moved lower today by $0.50 to close at $738.80 an ounce; Silver moved lower by $0.02 to close at $13.62 per ounce; Platinum moved higher today by $5.20 to close at $1,349.40 an ounce and Copper closed lower by $0.02 at $3.63 per pound.

On the Livestock and Meat Markets, the trend was mostly lower across the board today: Lean Hogs ended the day lower by $1.03 to close at $62.30; Pork Bellies ended the day higher by $1.23 at $88.73; Live Cattle ended the day lower by $0.28 at $100.50 and Feeder Cattle ended the day lower by $0.23 at $116.38.

Other Commodities: Corn moved lower on the day to post a loss of $1.75 at $371.75 and Soybeans moved lower today with a loss of $5.75 points to end the session at $973.00.

The e-mini Dow ended the session today at 13,952 with a gain of 84 points on the trading session. The total Dow Exchange Volume for the day came in at 148,950 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 mostly higher across the board again today: 2 year bond closed with no change at 100; 5 year bond closed with no change at 99 12/32; 10 year bond moved higher by 1/32 today to close at 100 31/32 and the 30 year bond moved higher by 4/32 to close at 101 31/32 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 3,283,758; Open Interest for Futures moved higher by 56,378 points to close at 8,926,753; the Open Interest for Options moved higher by 79,581 points to close at 7,473,033 and the Cleared Only closed lower by 30 points at 8,515 for a total Open Interest on the day of 16,408,301 with a total Change on the day with a gain of 135,929 points.

On the NYSE today, advancers came in at 1,981; decliners totaled 1,241; unchanged came in at 91; new highs came in at 164 and new lows came in at 66. Gainers and losers for the day as well as active day trading stocks on the NYSE: CME Group Incorporated (CME) literally soared on the trading session for a strong gain of 28.69 points with a high on the trading session of $584.00, a low of $557.97 with a final trading price on the Big Board of $581.10; National-Oilwell Varco Incorporated (NOV) moved higher on the session to post a gain of 4.51 points with a high on the trading day of $147.00, a low of $140.51 for a closing price on the session of $146.71; The Bear Stearns Companies Incorporated (BSC) bolted higher on the trading day to tack on 8.76 points with a high on the session of $128.00, a low of $113.85 for a closing price of $123.00 and Greatbatch Incorporated (GB) moved sharply lower on the trading session to shed 16.29% for a loss of 5.23 points with a closing price of $26.87.

On the NASDAQ today, advanced totaled 1,790; decliners totaled 1,209; unchanged came in at 126; new highs came in at 130 and new lows came in at 76. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: Resources Connection Incorporated (RECN) plummeted on the trading day to shed 6.99 points with a loss of 23.85% for a final trading price at $22.33 and INTAC International Incorporation (INTN) rallied higher on the day to post a whopping gain of 50.14% to tack on 3.67 points with a session high of $11.48, a low of $7.37 for a final trading price of $10.99.

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