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Market Commentary for October 02, 2007


The major indices were mostly mixed through out the trading session amidst a struggle between the Bulls and the Bears. At the closing bell, it appeared to be a shared hand between the red and green zone. Profit taking appeared to have a huge influence on the negative trend today, after large gains posted across the board. Disappointing home sales data added to the negative mood of the markets today. China stocks are on the move, creating nice trading atmosphere for active day traders plus, profits rising for investors.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a loss of 40.24 points on the day to end the session at 14,047.31; the NYSE (New York Stock Exchange) posted a loss of 8.66 points to end the session at 10,175.84; the NASDAQ posted a gain of 6.12 points for a close at 2,747.11; the S&P 500 moved lower with a loss of 0.41 points to end at 1,546.63 and the RUSSELL 2000 moved higher by 7.23 points to close at 831.97. 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 1.79 points to close at 271.92 and the FTSE RAFI 1000 posted a gain of 6.44 points to close at 6,357.99.

Former Chairman of the FOMC Allan Greenspan comment released today: Recent Forex moves not abnormal relative to past.

FOMC Member and President of the Federal Reserve Bank of Dallas, Richard W. Fisher comments released today: technology changes challenge Fed mission; Fed policy slow to adapt to globalized economy; innovation boosts growth, curbs inflation; tech changes aid Fed to keep inflation controlled and doesn't address economy, rate outlook.

Home sales data released today by the National Association for Realtors: U.S. Aug Pending Home Sales fell by 21.5% from August 2006; U.S. Pending Home Sales Index fell by 6.5% in August and Index Falls in August to lowest reading since tracking began.

Energy Information Administration released data today: U.S. Revised July Oil use lowest for July since 2003 and U.S. Revised July Gasoline use by an increase of 0.2% on the year.

Redbook: U.S. Retail Sales rose by 0.3% for first four weeks in September versus August; National chain store sales rose 0.3% in the first four weeks of September versus the previous month, according to Redbook Research's latest indicator of national retail sales released Tuesday. The rise in the index was compared with a targeted 0.8% gain. The Johnson Redbook Index also showed seasonally adjusted sales in the four-week period rose 2.0% compared with September 2006 and relative to a revised target of a 2.6% gain. Redbook said on an unadjusted basis, sales in the week ended Sept. 29 were up 1.5% from the same week in 2006, following a 1.6% gain the prior week. "Sales slowed in the fourth week as consumers continued to shun cool weather merchandise due to warm weather across most of the country," Redbook said. "Once again, most department stores, except for upscale stores, were most affected given their proportionately greater exposure to apparel and other soft goods with sluggish sales and weak mall traffic as well as warm weather keeping shoppers away."

Statement by Secretary Henry M. Paulson, Jr. at Press Conference on Advisory Committee on the Auditing Profession Washington, DC -- During my time at Treasury the competitiveness of our capital markets has been one of my highest priorities. Investor trust in the integrity of our capital markets is vital to the strength of the U.S. economy. Investor trust is based on accurate and transparent financial reporting, and a vibrant auditing profession is essential for a well-functioning financial reporting system. The auditor's role is key; to examine financial statements and express an opinion that conveys reasonable, but not absolute, assurance as to the truth and fairness of those statements. The Sarbanes-Oxley Act of 2002 enhanced financial reporting integrity, including mandating major changes affecting the auditing profession. The act created the Public Company Accounting Oversight Board to replace self-regulation of the public company auditing profession, and mandated auditor independence requirements. The Act also fundamentally altered the interactions between auditors and corporate management and boards of directors in a number of ways, some of which are not constructive. As part of our overall effort on capital markets competitiveness, we have recognized the many changes that have impacted the auditing profession in recent years and some of the challenges it still faces. And so, in May, I asked Arthur Levitt, former SEC chairman, and Donald Nicolaisen, former SEC chief accountant, to co-chair a committee to examine key issues facing the auditing industry. I want to thank Arthur and Don for their willingness to lead this important effort. The Committee will be a public forum, and its members represent a wide range of views, including small and large investors, auditors, financial institutions, public company executives, international regulators and universities. The Committee has been chartered to develop recommendations as to what can best be done to sustain a vibrant auditing profession, a profession whose work is critical to investor confidence in our capital markets. We have asked for this Committee's views and look forward to receiving their recommendations. One of the great strengths of our markets is their dynamism that they change to serve the needs of investors and businesses. Yet, our markets are not immune to challenges. We need to understand whether our markets are producing the high-quality audits and attracting the talented auditors we need. There are legitimate questions about the sustainability of the auditing profession's business model and concern about the high degree of auditor concentration among the largest public companies. Our goal is to help ensure that U.S. capital markets remain efficient, innovative and continue to drive capital to its most productive uses. Our markets must retain the integrity and efficiency that has contributed greatly to prosperity in America and around the globe. Through its work, the Committee will help sustain a vibrant auditing profession, and contribute to the broader examination of U.S. competitiveness.

Paulson Announces Auditing Committee Members to Make Recommendations for a More Sustainable, Transparent Industry Washington -- Secretary Henry M. Paulson, Jr. announced the members of the Treasury Advisory Committee on the Auditing Profession today. The public committee, which Secretary Paulson first announced in May, will make recommendations to encourage a more sustainable auditing profession. The Treasury Department worked with Committee Chairmen Arthur Levitt, Jr., former Securities and Exchange Commission Chairman, and Donald T. Nicolaisen, former SEC Chief Accountant, to choose members through a public nomination process and based on their diverse experiences and perspectives. "Investor trust in the integrity of our capital markets is vital to the strength of the U.S. economy. Investor trust is based on accurate financial reporting, and a vibrant auditing profession is essential for a well-functioning financial reporting system," said Secretary Paulson. "This Committee has been chartered to develop recommendations as to what can best be done to sustain a vibrant auditing profession, a profession whose work is critical to investor confidence in our capital markets." Secretary Paulson announced a series of initiatives this year to enhance U.S. capital markets competitiveness, one of his top priorities since taking office. Areas of focus include strengthening financial reporting and seeking a more sustainable auditing profession. The committee will examine auditing industry concentration, financial soundness, audit quality, employee recruitment and retention, in addition to other topics. Treasury expects the committee to produce findings and recommendations by early summer 2008. The committee structure will encourage an open and public discussion, with no predetermined outcomes. Meetings will be open to public attendance and comment at the Committee website. The committee members represent a broad range of perspectives, including investors, auditors, large and small public companies, insurance companies, lawyers and regulators. Treasury also selected official observers representing the domestic and international regulatory and policy bodies. The first meeting will be held at the Treasury Department on Monday, October 15 at 10:00 a.m. in the Cash Room. Committee members include: Arthur Levitt, Jr. (Co-Chair) was the 25th Chairman of the SEC. First appointed by President Clinton in July 1993, and reappointed in May 1998, he was the longest serving SEC Chairman when he left on February 9, 2001. He is presently Senior Advisor to The Carlyle Group and Wisdom-Tree, on the Board of Bloomberg LLP as well as a member of the American Academy of Arts & Sciences. Donald T. Nicolaisen (Co-Chair) was the Chief Accountant at the SEC from September 2003 to November 2005. He serves on the Board of Directors of Morgan Stanley, MGIC Investment Corporation, Verizon Communications Inc. and Zurich Financial Services. In addition, Mr. Nicolaisen is on the Board of Advisors for the University of Southern California, Leventhal School of Accounting. Mr. Nicolaisen also serves in a variety of advisory capacities to other Fortune 25 companies. Alan L. Beller is a partner at Cleary Gottlieb Steen & Hamilton LLP. Mr. Beller was the Director of the Division of Corporation Finance of the SEC and Senior Counselor to the SEC from 2002 until 2006. Amy Woods Brinkley is the Global Risk executive for Bank of America. She serves on the Risk & Capital Committee, which oversees allocation of capital to all business lines, and is a member of the bank's Management Operating Committee. Mary K. Bush is President of Bush International and serves on the Boards of four publicly traded companies--Briggs and Stratton (Audit Committee), Discover Financial Services, ManTech Corporation and United Air Lines (Audit Committee)--and the Pioneer Family of Mutual Funds. H. Rodgin Cohen is Chairman of Sullivan & Cromwell LLP. He has acted in most of the major U.S. bank acquisitions as well as in numerous leading cross-border and cross-industry acquisitions. Timothy P. Flynn is Chairman and Chief Executive Officer of KPMG LLP. He is a member of the Governing Board of the Center for Audit Quality, and the Boards of Trustees of the Financial Accounting Foundation (FAF), FAF's Audit, Development and Strategic Planning committees, and the University of St. Thomas. Robert Glauber is a Lecturer at Harvard's Kennedy School of Government. Previously, he served as Chairman and Chief Executive Officer of NASD (now FINRA) from September 2001 to September 2006, after becoming NASD's CEO and President in November 2000 and a member of NASD's Board in 1996. Ken Goldman is Chief Financial Officer of Fortinet, Inc. He is a member and former President of The Financial Executive Institute, Santa Clara chapter, and served as an advisory council member of the Financial Accounting Standards Board from 2000 to 2004. Gaylen R. Hansen is an audit partner at Ehrhardt Keefe Steiner & Hottman PC and serves on the Colorado State Board of Accountancy and the board of directors of the National Association of State Boards of Accountancy. He is also a member of the Standing Advisory Group that advises the Public Company Accounting Oversight Board. Barry C. Melancon is the President and Chief Executive Officer of the American Institute of Certified Public Accountants. Prior to joining the AICPA, Mr. Melancon served for eight years as Executive Director of the Society of Louisiana CPAs. Anne M. Mulcahy is Chairman and Chief Executive Officer of Xerox Corporation. In addition to the Xerox Board, Ms. Mulcahy serves on the Boards of Citigroup Inc., Fuji Xerox Co. Ltd., Target Corporation, and is the Chairman of the Corporate Governance Task Force of the Business Roundtable. Richard H. Murray is Managing Director and Chief Claims Strategist of Swiss Re. Mr. Murray serves on the Supervisory Board of the Centre for the Study of Financial Innovation, the Advisory Board of Oxford Analytica, the Advisory Board of the Northeast Business Law Center, as a member of the Commission on the U.S. Capital Markets in the 21st Century, and the Institute of International Finance. Gary John Previts is a Professor of Accountancy at Case Western Reserve University. He is a member of the Accountability Advisory Council of the U.S. Government Accountability Office and President of the American Accounting Association. Damon A. Silvers is an Associate General Counsel for the AFL-CIO. Mr. Silvers led the AFL-CIO legal team that won severance payments for laid off Enron and WorldCom workers. Richard A. Simonson is Executive Vice President and Chief Financial Officer of Nokia Corporation. Mr. Simonson has been a member of the Group Executive Board of Nokia since 2004 and the Board of Nokia Siemens Networks since April 1, 2007. Sarah E. Smith is the Controller and Chief Accounting Officer of Goldman Sachs. She also serves on the firm's Risk Committee, the Commitments Committee, the Partnership Committee and the Private Equity Investment Committee and has oversight of Operational Risk. She is a member of the Washington-based Committee for Economic Development. William D. Travis has been President and Chief Executive Officer of Bailiwick Data Systems, Inc. since 2007 and currently serves on the Board of Directors of McGladrey & Pullen, LLP, where he was previously Managing Director and Chairman. Lynn E. Turner served as the Chief Accountant at the SEC from 1998 to 2001. He serves as a senior advisor to Kroll Zolfo Copper and is a member of the Standards Advisory Group of the Public Company Accounting Oversight Board and the Financial Accounting Standards Board Investor Technical Advisory Committee. Paul A. Volcker served as Chairman of the Board of Governors of the Federal Reserve System. He is former Chairman of Wolfensohn & Co., Inc., as well as Professor Emeritus of International Economic Policy at Princeton University. He was recently Chairman of the Board of Trustees of the International Accounting Standards Committee. Ann Yerger, CFA, is the Executive Director of the Council of Institutional Investors. She joined the Council in early 1996 as the Director of the Council's Research Service. She was named Executive Director in January 2005. Committee observers include: Robert H. Herz, Chairman of the Financial Accounting Standards Board; Mark W. Olson, Chairman of the Public Company Accounting Oversight Board; Zoe-Vonna Palmrose, Deputy Chief Accountant for Professional Practice in the Office of the Chief Accountant at the Securities and Exchange Commission; Michel Prada, Chairman of the Autorité des Marches Financiers in France and Sir David Tweedie, Chairman of the International Accounting Standards Board.

Commodities Markets
The trend was mixed across the board today for the Energy Sector: Light crude moved lower today by $0.19 to close at $80.05 a barrel; Heating Oil moved lower today by $0.02 to close at $2.16 a gallon; Natural Gas moved higher today by $0.38 to close at $7.43 per million BTU and Unleaded Gas closed with no change at $1.98 a gallon.

Metals Market ended the session mostly lower across the board today: Gold moved sharply lower today by $17.80 to close at $736.30 an ounce; Silver moved lower by $0.41 to close at $13.45 per ounce; Platinum moved heavily lower today by $46.20 to close at $1,355.00 an ounce and Copper closed higher by $0.02 at $3.71 per pound.

On the Livestock and Meat Markets, the trend was mostly lower across the board today: Lean Hogs ended the day lower by $0.18 to close at $59.38; Pork Bellies ended the day lower by $0.55 at $86.88; Live Cattle ended the day lower by $0.63 at $97.98 and Feeder Cattle ended the day higher by $0.73 at $115.68.

Other Commodities: Corn moved strongly lower on the day to post a hefty loss of $20.00 at $348.75 and Soybeans moved sharply lower today with a loss of $47.5 points to end the session at $943.75.

The e-mini Dow ended the session today at 14,100 with a loss of 51 points on the trading session. The total Dow Exchange Volume for the day came in at 171,475 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 today: 2 year bond closed lower by 2/32 yet again today to close at 100 1/32; 5 year bond closed higher by 5/32 at 100 7/32 today; 10 year bond moved higher by 6/32 today to close at 101 24/32 and the 30 year bond moved higher by 11/32 to close at 103 21/32 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 2,847,562; Open Interest for Futures moved higher by 76,685 points to close at 9,100,051; the Open Interest for Options moved higher by 18,773 points to close at 7,784,437 and the Cleared Only closed sharply lower by 207 points to close at 8,365 for a total Open Interest on the day of 16,892,853 with a total Change on the day with a gain of 95,251 points.

On the NYSE today, advancers came in at 1,856; decliners totaled 1,341; unchanged came in at 111; new highs came in at 177 and new lows came in at 27. Gainers and losers for the day as well as active day trading stocks on the NYSE: CME Group Incorporated (CME) provided nice trading activity for day traders with a high on the day of $609.91, a low of $598.71 with a loss of 5.35 points on the day for a final trading price at $602.95; Rio Tinto plc (RTP) posted a loss on the day of 9.75 points with a high on the session of $349.38, a low of $340.80 with a final closing price on the day at $348.25; Las Vegas Sands Corporation (LVS) bolted higher on the session to post a gain of 6.31 points with a high on the day of $145.57, a low of $139.05 with a closing price at the bell of $144.56; WuXi Pharma Tech (Cayman) Incorporation (WX) rallied higher on the day to post a gain of 20.55% with a climb higher by 5.787 points for a final trading price at $33.90; China Life Insurance Company (LFC) tacked on 5.06 points on the day with a final trading price at $93.25 and Toronto-Dominion Bank (TD) moved lower on the day by 4.29 points to end the session at $72.65.

On the NASDAQ today, advanced totaled 1,760; decliners totaled 1,213; unchanged came in at 151; new highs came in at 175 and new lows came in at 44. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: Baidu.com Incorporated (BIDU) roared higher on the session to post a substantial gain of 13.23% to tack on a whopping 37.70 points with a high on the day of $323.34, a low of $298.96 with a closing price amidst a very active trading session of $322.51; Garmin Limited (GRMN) fell sharply lower on the day to post a loss of 7.28 points with a high on the day of $108.17, a low of $96.90 with a closing price at the bell of $99.95; Sears Holdings Corporation (SHLD) tacked on 5.69 points on the session with a high on the day of $136.65, a low of $129.75 for a final trading price of $135.97; China Natural Resources Incorporated (CHNR) roared higher on the day to tack on 91.22% for a gain of 14.55 points with a high on the day of $27.89, a low of $16.27 to end the session at $30.50 and China Finance Online Company Limited (JRJC) stomped higher on the day to tack on 18.03% for a gain of $6.72 points with a high on the day of $43.78, a low of $38.10 for a final trading price $43.50.

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Millennium-Traders