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Market Commentary for September 27, 2007


For the second day in a row, the Bulls maintained control of the market trend. Trading volume however, was light through out the trading session with tight trading ranges, as well. Economic data released today played a key role in market action. Possibly snug trading activity could be a result of investors monitoring the housing market situation which has the potential of, directing market activity.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a gain of 34.78 points on the day to end the session at 13,912.94; the NYSE (New York Stock Exchange) posted a gain of 76.83 points to end the session at 10,056.85; the NASDAQ posted a gain of 10.56 points for a close at 2,709.59; the S&P 500 moved higher with a gain of 5.96 points to end at 1,531.38 and the RUSSELL 2000 moved higher by 4.89 points to close at 832.95. 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 2.47 points to close at 268.03 and the FTSE RAFI 1000 posted a gain of 17.76 points to close at 6,290.93.

U.S. Jobless Claims at lowest level since May 12th; U.S. week of September 15th Continuing Claims rose 11K to 2,551,000 and U.S. week of September 22nd, Jobless Claims fell 15K to 298K compared to expectations of an increase by 5K.

U.S. Second Quarter GDP Consensus was an increase by 3.8%; U.S. Second Quarter GDP was revised to an increase at a rate of 3.8% from an increase by 4.0%; Second Quarter Corporate Profits were revised to an increase by 5.2% From an increase by 5.4%; Second Quarter Corporate Profits rose by 5.2% versus an increase by 1.5% in First Quarter; Second Quarter Chain-Weighted Price Index was revised to an increase by 2.6% From an increase by 2.7%; Second Quarter Purchases Price Index rose 3.8%, Unrevised from preliminary report; Second Quarter PCE Price Index Revised to an increase by 4.3% Rate from an increase by 4.2% and Second Quarter Real Final Sales Revised to an increase by 3.6% Rate from an increase by 3.7%.

U.S. August New Home Sales fell by 8.3% to 795,000 compared to consensus of 830,000 and U.S. July New Home Sales Revised to 867,000 from 870,000.

Department of Energy data released today: 700,000 Barrels September SPR Royalty Oil Shipment Delayed to October and September SPR Crude Receipts to be 2.4 Million Barrels not 3.1 Million Barrels.

Treasury Action Targets Violent Burmese Suppression
The U.S. Department of the Treasury today is designating 14 senior Burmese Government officials in the wake of that government's longstanding oppression of the Burmese people and its recent use of violence against peaceful demonstrators. Treasury's action follows President George W. Bush's announcement of plans for tightening U.S. sanctions against the military regime in Burma, made before the UN General Assembly on September 25, 2007.
"We are today imposing sanctions against senior officials of the Government of Burma," said Adam Szubin, Director of the Office of Foreign Assets Control (OFAC). "The President has made clear that we will not stand by as the regime tries to silence the voices of the Burmese people through repression and intimidation."
The designations were made pursuant to Executive Order 13310, which authorizes the Secretary of the Treasury, in consultation with the Secretary of State, to designate senior officials of the Government of Burma, the State Peace and Development Council of Burma (the military regime that rules Burma), the Union Solidarity and Development Association of Burma, or any of their successor organizations, as well as any individuals or entities that are owned or controlled by, or acting for or on behalf of, any person, whose property or interests in property are blocked pursuant to the order. Executive Order 13310 also blocked property and interests in property of the four entities listed on its Annex, the State Peace and Development Council of Burma and three banks controlled by the Government of Burma.
The Burmese government leaders designated today by OFAC include Senior General Than Shwe, Minister of Defense and Chairman of the State Peace and Development Council (SPDC); Vice Senior General Maung Aye, Commander of the Army and Vice Chairman of the SPDC; Lieutenant General Thein Sein, Acting Prime Minister and First Secretary of the SPDC; and General Thura Shwe Mann, Joint Chief of Staff, Armed Forces and Member of the SPDC. The other senior officials of the Government of Burma named include other members of the State Peace and Development Council, key military officials, and other government ministers.
As a result of Treasury's designations, any assets these individuals and entities may have that are within U.S. jurisdiction must be frozen, and U.S. persons are prohibited from transacting or doing business with them.

European Central Bank President Jean-Claude Trichet comments today: he has "full respect" for the decision of the U.S. Federal Reserve to cut interest rates, but noted conditions are different in Europe, in an interview with Dutch television RTL Nieuws. "We have a different economy, which is the Euro-area economy, a different situation, and a different judgment, at this stage," Trichet said, noting that financial market turbulence originated in the U.S. Further, Trichet noted the ECB has paid close attention to remarks by U.S. policymakers with regard to currencies. "I have listened very carefully with great attention to what Hank Paulson, Secretary of the Treasury and Ben Bernanke have said, saying a strong Dollar is in the interest of the U.S.," Trichet said. Trichet had nothing to add on the Euro's recent appreciation against the Dollar but noted, "it's important, what I said," concerning remarks by U.S. officials. The Euro hit an all-time high against the Dollar this month and was trading around EUR1.4176 to the Dollar around 1210 GMT in Frankfurt, up from EUR1.4127 late Wednesday in New York. Trichet reiterated that market turbulence isn't pulling the ECB council's baseline scenario on growth and inflation into question, but he noted heightened uncertainty. "At this stage, I can only say that uncertainty has augmented, it is probably too early to make a judgment on the impact...but uncertainty has augmented," Trichet said. Trichet declined to discuss interest rates ahead of the October 4th policy meeting, but noted "interest rates have to be fully in line with our mandate of delivering price stability." "Everyone knows that we are independent, that we are responsible for delivering price stability," Trichet added, noting this is "essential in periods of turbulence."

Commodities Markets
The trend was mostly higher across the board today for the Energy Sector: Light crude moved sharply higher today by $2.58 to close at $82.88 a barrel; Heating Oil moved higher today by $0.07 to close at $2.27 a gallon; Natural Gas moved lower today by $0.13 to close at $6.92 per million BTU and Unleaded Gas moved higher today by $0.07 to close at $2.09 a gallon.

Metals Market ended the session higher across the board today: Gold moved higher today by $4.40 to close at $739.90 an ounce; Silver moved higher by $0.10 to close at $13.65 per ounce; Platinum moved sharply higher today by $12.50 to close at $1,373.00 an ounce and Copper closed higher by $0.03 at $3.65 per pound.

On the Livestock and Meat Markets, the trend was mostly higher across the board today: Lean Hogs ended the day higher by $0.13 to close at $62.53; Pork Bellies ended the day higher by $0.38 at $89.73; Live Cattle ended the day higher by $0.15 at $100.20 and Feeder Cattle ended the day lower by $0.43 at $115.83.

Other Commodities: Corn moved sharply higher on the day to post a gain of $11.75 at $386.75 and Soybeans moved sharply higher today with a gain of $18.25 points to end the session at $1,009.00.

The e-mini Dow ended the session today at 13,999 with a gain of 41 points on the trading session. The total Dow Exchange Volume for the day came in at 157,267 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 again today: 2 year bond closed higher by 3/32 today to close at 100 3/32; 5 year bond closed higher by 7/32 today to close at 99 19/32; 10 year bond moved higher by 15/32 today to close at 101 14/32 and the 30 year bond moved higher by 30/32 to close at 102 18/32 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 3,247,194; Open Interest for Futures moved higher by 35,762 points to close at 8,962,515; the Open Interest for Options moved higher by 176,746 points to close at 7,649,779 and the Cleared Only closed with no change at 8,515 for a total Open Interest on the day of 16,620,809 with a total Change on the day with a gain of 212,508 points.

On the NYSE today, advancers came in at 2,089; decliners totaled 1,114; unchanged came in at 98; new highs came in at 189 and new lows came in at 51. Gainers and losers for the day as well as active day trading stocks on the NYSE: Rio Tinto plc (RTP) bolted higher on the session to post a gain of 11.48 points with a high on the day of $341.92, a low of $333.81 to close the day at $341.80; PetroChina Company Limited (PTR) climbed nicely higher on the trading day with a gain of 7.25 points with a high on the day of $185.70, a low of $179.03 for a final trading price of $185.58; CME Group Incorporated (CME) continued its trend into higher territory to post a gain of 6.30 points with a high on the session of $592.80, a low of $578.13 with a closing price of $587.40; China Eastern Airlines Corporation (CEA) soared higher on the session with a gain of 15.96% to tack on 15 points with a high on the day of $109.00, a low of $101.00 for a close at the session high of $109.00; MasterCard Incorporated (MA) bolted higher today by 5.15 points with a high on the day of $149.97, a low of $141.58 with a final trading price of $148.00 and Freeport-McMoRan Copper & Gold (FCX) provided nice trading action with a gain of 2.89 points on the day with a high of $107.64, a low of $104.76 to close the session at $106.80.

On the NASDAQ today, advanced totaled 1,753; decliners totaled 1,234; unchanged came in at 127; new highs came in at 119 and new lows came in at 68. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: KongZhong Corporation (KONG) moved sharply higher on the session to post a gain of 76.71% to tack on 3.82 points with a high on the day of $8.57, a low of $5.94 for a closing session price of $8.80; Washington Banking Company (WBCO) soared higher today with a gain of 32.29% to tack on 4.94 points with a closing price of $20.24 and Baidu.com Incorporated (BIDU) posted a gain on the day of 5.07 points with a high on the day of $296.75, a low of $289.50 for a final trading price at $293.00.

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Millennium-Traders