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Market Commentary for September 28, 2007


Trading activity was generally sluggish as we put the month of September behind us and get ready for the month of October, on Monday. Trading volume was moderate with the major indices holding in the red zone through out the day, with an increase of selling pressure during the late afternoon hour.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a loss of 17.31 points on the day to end the session at 13,895.63; the NYSE (New York Stock Exchange) posted a loss of 17.67 points to end the session at 10,039.28; the NASDAQ posted a loss of 8.09 points for a close at 2,701.50; the S&P 500 moved lower with a loss of 4.63 points to end at 1,526.75 and the RUSSELL 2000 moved lower by 8.56 points to close at 805.45. 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 1.23 points to close at 268.80 and the FTSE RAFI 1000 posted a loss of 19.89 points to close at 6,274.06.

U.S. Final 2006 Oil Use was down 0.6%, which is the biggest decline since 1991 according to the Energy Information Administration.

University of Michigan Preliminary September Consumer Sentiment came in at 83.8; University of Michigan End September Current Index came in at 97.9 versus August reading of 98.4; University of Michigan End September Sentiment came in at 83.4 versus August reading of 83.4 and University of Michigan End September Expectations came in at 74.1 versus August reading of 73.7.

U.S. Chicago Purchasing Management September New Orders Index came in at 56.2 versus August reading at 58.4; U.S. Chicago Purchasing Management September Employment Index came in at 52.0 versus August reading at 53.7; U.S. Chicago Purchasing Management September Supplier Deliveries came in at 50.6 compared to August reading of 51.9; U.S. Chicago Purchasing Management September Prices Paid Index came in at 59.0 versus August reading at 71.8 and U.S. Chicago Purchasing Management adjusted Sep Index came in at 54.2 versus August reading at 53.8.

U.S. Personal Spending rose 0.6% in August compared to consensus of an increase by 0.4%; U.S. Personal Income rose 0.3% in August compared to consensus of an increase by 0.4%; August PCE Price Index fell at a rate of 0.1% on the month; August PCE Price Index rose 1.8% on the year; July Spending was left unrevised at increase of 0.4% and July Personal Income was left unrevised at increase of 0.5%.

U.S. Construction Spending rose 0.2% in August versus consensus of a drop by 0.3% and July Construction Spending was revised to a drop by 0.5% from a drop by 0.4%.

Federal Open Market Committee member Frederic S. Mishkin comments released today: Financial Markets still vulnerable to systemic risk; system risk can have 'important' economic consequences; emerging market volatility has been contained; providing liquidity now a main focus of governments; owners of insolvent firms should suffer losses; Forex intervention distorts capital, trade flows; Global Economic conditions 'have been strong'; key that lender of last resort acts quickly; Monetary Policy must focus on economy, price stability; Central Bank must ensure financial problems don't hurt economy and confident Fed doing right thing, continue to do so.

Member of the Federal Open Market Committee, President of Federal Reserve Bank of St. Louis, William Poole comments released today: unclear whether housing woes to hurt consumption; markets shouldn't assume more rate cuts to come; inflation figures moving in the right direction; doesn't foresee 'Draconian' decline in household wealth; aware of possible employment report anomaly; Fed needs to keep open mind about policy; sees tentative resumption of normal market practices; 50 Basis Point cut 'completely justified'; Fed needed markets to return to orderly trading; evident many markets weren't functioning before cut; market was going to be surprised by rate cut; Fed could have cut even given strong August payrolls; `tentative signs' that financial markets recovering; worse financial upset may have `serious consequences'; `just do not know' impact of financial turmoil'; moderate growth, declining inflation in years ahead; inflation target may be of great use in future; avoiding a recession is an `important goal'; price stability essential for economy stability; Fed action must show consistency, be understood; policy surprises should be avoided when possible; random policy actions not `good policy'; policy can't adapt to each data, market move and `all' aware of danger of causing misunderstanding.

President of Federal Reserve Bank of Atlanta, Dennis P. Lockhart comments released today: business investment has weathered credit market; inflation has slowed from elevated 2006 level; balance of risks shifted to slower growth; expects markets to find balance in coming months; housing market may not bottom until late 2008; closely watching housing, consumer spending; further housing downturn could hit consumer; Fed Funds Rate still effective tool; consumer credit will continue to tighten and will act if inflation turns in wrong way.

Statement of Secretary Paulson on the Debt Limit
"The Senate's swift action on the debt limit today helps to protect the full faith and credit of the United States and avoids creating unnecessary uncertainty in the U.S. Treasuries market. I commend Congress for passing legislation that ensures the U.S. government can deliver on promises already made, such as Social Security and Medicare payments."

Remarks by Treasury Secretary Paulson at the Major Economies Meeting September 27th Washington, D.C.
This evening marks the half-way point of two important days. President Bush has convened senior officials from the world's major economies to launch the necessary next phase towards achieving our common objective of reducing global greenhouse gas emissions. The nations that produce more than 80 percent of the world's emissions are here. This broad participation is evidence that collectively we take our stewardship responsibilities seriously and recognize that addressing climate challenge is a global public good. Our work is intended to support and contribute to a global agreement under the UN Framework Convention on Climate Change. If the major economies can agree on a way forward, that could accelerate the prospects of a broader agreement on a way forward in the UN.
I am particularly honored to have the chance to speak with you tonight because I care deeply about the protection of our planet. Over time, my love of nature has grown into appreciation for how fragile our environment is and how urgent is the need to protect and conserve it. And so I laud the President's leadership that began the major economies meeting process.
Last May, he asked the world's major nations to work to develop a post-2012 framework that will encompass the environmental, energy security and economic aspects of climate change. The purpose of the President's initiative is to make sure all the major economies, not just a select few, work together as equals to develop a way forward.
In this regard, I am especially pleased to see our friends from the large, emerging economies here - particularly China, Brazil and India - since we will accomplish this effort only if we all take an active part. Pitting the developed and the developing countries against each other will not lead to economic development and environmental sustainability.
Cost effective policy tools are needed to provide incentives for the necessary building blocks for reducing emissions. These include deployment of advanced technologies, increased energy efficiency, investment in research and development, market-based solutions and eliminating tariff and non-tariff barriers.
Governments can and should do more to work together to advance the adoption of clean technologies. We need strong research and development incentives for commercialization of new technologies. But we must realize the vast scale of our challenge.
The International Energy Agency has estimated that between 2005 and 2030 the world will need to invest $20 trillion in energy-supply infrastructure. Public sector investment will matter only to the extent that it leverages clean technology investments by the private sector, where most of this investment will occur. This will mean working closely with the private sector and adopting market-based solutions to increase the adoption rate for proven, cleaner technologies. Under UN Secretary General Ban Ki-Moon's leadership, the United Nations is addressing the important issue of climate change and we look forward to working with him on these critical issues.
Progress requires the rapid development and deployment of clean and efficient energy technology across the globe. Developing countries today have access to technologies that didn't exist a century ago when we in the industrialized world developed. We must tear down artificial barriers that impede the spread of today's clean technologies. There is no moral or economic reason for tariffs or non-tariff barriers on environmental goods or services. Countries need to act quickly to eliminate these trade restrictions and increase access to these crucial environmental technologies - technologies that will allow nations to pursue a path that embraces both economic growth and clean energy development.
The future will be built by leaders who recognize that economic growth and responsible environmental stewardship are not incompatible. Just as America recognizes that our prosperity is linked to the strength of your economies, we also recognize that the long-term environmental health of our planet depends on the success of the actions each of our nations take to limit greenhouse gas emissions. Globalization and interdependence are here to stay, so we all have a role to play protecting our environment for our own children and the children of the world. Thank you for the opportunity to share my thoughts with you.

Commodities Markets
The trend was lower across the board today for the Energy Sector: Light crude moved lower today by $1.22 to close at $81.66 a barrel; Heating Oil moved lower today by $0.04 to close at $2.23 a gallon; Natural Gas moved lower today by $0.04 to close at $6.88 per million BTU and Unleaded Gas moved lower today by $0.04 to close at $2.04 a gallon.

Metals Market ended the session mostly higher across the board today: Gold moved sharply higher today by $10.10 to close at $750.00 an ounce; Silver moved higher by $0.28 to close at $13.92 per ounce; Platinum moved heavily higher today by $25.20 to close at $1,398.20 an ounce and Copper closed lower by $0.01 at $3.64 per pound.

On the Livestock and Meat Markets, the trend was mostly lower across the board today: Lean Hogs ended the day lower by $0.28 to close at $62.25; Pork Bellies ended the day lower by $0.05 at $89.68; Live Cattle ended the day lower by $0.40 at $99.80 and Feeder Cattle ended the day higher by $0.80 at $116.63.

Other Commodities: Corn moved sharply lower on the day to post a loss of $13.75 at $373.00 and Soybeans moved sharply lower today with a loss of $17.75 points to end the session at $991.25.

The e-mini Dow ended the session today at 13,994 with a loss of 11 points on the trading session. The total Dow Exchange Volume for the day came in at 129,442 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 lower across the board today: 2 year bond closed lower by 2/32 today to close at 100 1/32; 5 year bond closed at 100 today; 10 year bond moved lower by 6/32 today to close at 101 8/32 and the 30 year bond moved lower by 2/32 to close at 102 16/32 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 3,349,922; Open Interest for Futures moved higher by 13,885 points to close at 8,976,400; the Open Interest for Options moved higher by 128,258 points to close at 7,778,036 and the Cleared Only closed with no change again today at 8,515 for a total Open Interest on the day of 16,762,951 with a total Change on the day with a gain of 142,143 points.

On the NYSE today, advancers came in at 1,454; decliners totaled 1,763; unchanged came in at 97; new highs came in at 178 and new lows came in at 49. Gainers and losers for the day as well as active day trading stocks on the NYSE: WESCO International Incorporated (WCC) posted a favorable gain on the day of 10.16% to tack on 3.96 points with a high on the session of $44.47, a low of $39.53 for a final trading price of $42.94;

Harman International Industries Incorporated (HAR) moved higher on the day by 3.47 points for a closing price on the week of $86.52; China Eastern Airlines Corporation (CEA) moved lower on the day to post a loss of 7.08 points, amidst very low trading volume to end the session at $101.92; Rio Tinto plc (RTP) moved higher by 4.80 points on the day with a high on the session of $347.98, a low of $340.38 for a closing price of $343.40 and Terra Nitrogen Company Limited Partnership (TNH) climbed higher on the day to post a gain of 5.99 points with a high on the session of $130.98, a low of $121.01 for a final trading price of $126.83.

On the NASDAQ today, advanced totaled 1,217; decliners totaled 1,788; unchanged came in at 119; new highs came in at 121 and new lows came in at 74. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: Wynn Resorts Limited (WYNN) plummeted lower on the trading session to post a loss of 9.28 points with a high of $162.14, a low of $155.40 for a closing price at the bell of $157.70; BigBand Networks Incorporated (BBND) shed 29.44% on the day to post a loss by 2.67 points with a final trading price of $6.40; Silverstar Holdings Limited (SSTR) soared on the trading session today for a gain of 100% to tack on 2.45 points with a final trading price of $4.90 and Travelzoo Incorporated (TZOO) bolted higher on the trading session to climb higher by 15.38% for a gain of 3.06 points with a high on the session of $24.97, a low of $19.98 for a closing price of $22.95.

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Millennium-Traders