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Market Commentary for October 04, 2007


Our trading session was rather quiet, with a struggle between the Bulls and the Bears through out the trading day. At the close, the Bulls successfully had the upper hand with the major indices closing in positive territory at the ringing of the closing bell. Trading ranges were tight and trading volume was moderate. Several active stocks gave way to active trading for day traders, going long and reversing for the active short sellers. Day trading activity will vary with overall market action, if the momentum traders lock on to stocks that are the move, long or short, for the trading day.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a gain of 6.26 points on the day to end the session at 13,974.31; the NYSE (New York Stock Exchange) posted a gain of 41.90 points to end the session at 10,142.93; the NASDAQ posted a gain of 4.14 points for a close at 2,733.57; the S&P 500 moved higher with a gain of 3.25 points to end at 1,542.84 and the RUSSELL 2000 moved higher by 3.00 points to close at 829.15. 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 0.23 points to close at 271.22 and the FTSE RAFI 1000 posted a gain of 9.37 points to close at 6,341.39.

U.S. Factory Orders data released today: for month of August, U.S. Factory Orders down 3.3% compared to consensus of a drop by 2.6%; August Factory Orders, Excluding Transportation fell by 1.7%; August Factory Orders, Excluding Defense fell by 3.8%; August Durable Goods were left unrevised at a drop by 4.9% and July Factory Orders were revised to an increase by 3.4% from an increase by 3.7%.

U.S. Jobless Claims rose by 16K to 317K in week of September 29 compared to survey of an increase by 12K and U.S. week of September 22 Continuing Claims fell by 10K to 2,541,000.

Member of the FOMC and President of the Federal Reserve Bank of Dallas, Richard W. Fisher comments released today: Financial Markets look better, but "wounds" still healing; Fed can't be distracted by short-term price changes; Fed should focus on underlying inflation pressures; energy, food prices to stay volatile; growth in demand not as worrisome as supply shocks; routinely excluding food, energy prices not ideal; for L-T forecasts better to look at core CPI; optimistic on long-run trend of declining food prices; U.S. has had times of high oil prices without recession; is constantly picking apart energy prices; points to strong consumer spending, confidence; demand for U.S. exports at `healthy levels'; weak Dollar has not hurt demand for U.S. products; global inflation well-contained; sees more U.S. output, lower prices despite oil prices; credit markets more stable than they were in August; not Fed's job to engineer asset prices; still issues regarding asset backed mortgage market; sees "decent" Q3 GDP growth, around 3%; too early to tell about Q4 growth; reiterates he expects to see slower growth ahead and ISM Non-Manufacturing numbers "fairly positive".

President of the European Central Bank, Jean-Claude Trichet comments released today: 2008 economic outlook for growth around potential; August M3 may reflect yield curve, credit market jitters; August M3 growth may reflect temporary factors; baseline economy scenario main one, despite uncertainty; confidence indicators still above historic average; confident money market tensions will be surmounted; CPI likely around 2% on Average in 2008; doesn't comment on whether policy is accommodative; ECB reacted immediately in wake of August 9 tensions; economic growth to continue in third quarter and fourth quarter; expects emerging economies to offset U.S. weakness; external environment supportive for growth; favorable medium-term outlook for economy; financial turmoil hasn't modified baseline economic scenario; further agricultural market liberalization needed; good economic fundamentals in the Euro area; haven't said monetary policy is accommodative; heightened uncertainty to baseline economic scenario; HICP rate to remain above 2.0% through early 2008; important to maintain confidence amid uncertainty; inflation expectations tilting "little bit" up; long-term economic growth risks on the downside; may increase rates even if policy not accommodative; market tensions were "very acute" on August 9; monetary analysis confirms medium, long-term risks; monetary developments require very close monitoring; money, credit data to offer insight into volatility; money, credit growth remain vigorous; now entering period of strong energy prices effect; other words don't have signaling value; our duty is to act in line with 4.0% re-finance rate; ready to counter upside CPI risks; reason for money market tension not in our jurisdiction; solid anchoring of CPI expectations essential; upward risks to price stability over medium term; vigilance has a signaling quality in statements; wage developments may be stronger than expected; we confirm ready to act whenever necessary on CPI and will do what's necessary to help money markets.

Comments released today from FOMC Board Member Frederic S. Mishkin: need to pay attention to exchange rates and financial turmoil will impact economy.

Commodities Markets
The trend was higher across the board again today for the Energy Sector: Light crude moved higher today by $1.50 to close at $81.44 a barrel; Heating Oil moved higher today by $0.05 to close at $2.23 a gallon; Natural Gas moved higher today by $0.14 to close at $7.41 per million BTU and Unleaded Gas closed higher by $0.06 at $2.05 a gallon.

Metals Market ended the session mostly higher across the board today: Gold moved nicely higher today by $8.10 to close at $743.80 an ounce; Silver moved higher by $0.03 to close at $13.50 per ounce; Platinum moved nicely higher today by $9.50 to close at $1,378.40 an ounce and Copper closed lower by $0.03 at $3.74 per pound.

On the Livestock and Meat Markets, the trend was mixed across the board again today: Lean Hogs ended the day lower by $0.53 to close at $60.08; Pork Bellies ended the day lower by $0.58 at $87.33; Live Cattle ended the day higher by $0.45 at $97.85 and Feeder Cattle ended the day higher by $0.35 at $115.7005.

Other Commodities: Corn moved lower on the day again to post a loss of $2.25 at $342.25 and Soybeans moved higher again today with a gain of $3.25 points to end the session at $954.25.

The e-mini Dow ended the session today at 14,039 with a loss of 13 points on the trading session. The total Dow Exchange Volume for the day came in at 136,634 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 higher by 3/32 today to close at 100 1/32; 5 year bond closed higher by 7/32 at 100 7/32 today; 10 year bond moved higher by 11/32 today to close at 101 1265/32 and the 30 year bond moved higher by 21/32 to close at 103 24/32 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 3,630,433; Open Interest for Futures moved higher by 35,434 points to close at 9,092,797; the Open Interest for Options moved higher by 126,046 points to close at 8,043,279 and the Cleared Only closed lower by 60 points to close at 8,365 for a total Open Interest on the day of 17,144,441 with a total Change on the day with a gain of 161,420 points.

On the NYSE today, advancers came in at 1,936; decliners totaled 1,237; unchanged came in at 114; new highs came in at 102 and new lows came in at 34, same as yesterday. Gainers and losers for the day as well as active day trading stocks on the NYSE: LDK Solar Corporation Limited (LDK) provided nice day trading activity for the active day trader with a high on the session of $57.57, a low of $44.98 with a loss of 3.35 points for a final trading price of $48.30; CME Group Incorporated (CME) was a nice day trading stock for day traders with a high on the day of $615.81, a low of $601.50 to post a loss of 5.71 points for a final closing price on the day of $604.85; General Steel Holdings Incorporated (GSI) bolted higher on the trading day for a gain of 61.81% to tack on 5.86 points with a high on the day of $15.89, a low of $9.40 for a final trading price at $15.34 and Dresser-Rand Group Incorporated (DRC) fell sharply lower on the session with a loss of 10.30% to shed 4.48 points with a closing price at $39.00.

On the NASDAQ today, advanced totaled 1,657; decliners totaled 1,295; unchanged came in at 154; new highs came in at 151 and new lows came in at 64. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: China Natural Resources Incorporated (CHNR) continued its trend into higher territory with a gain of 15.52% to tack on 6.09 points with a high on the day of $50.39, a low of $42.05 for a final trading price of $45.34; NutriSystem Incorporated (NTRI) found it real easy to post a heavy loss on the day to plummet a heavy 33.47% for a loss of 15.92 points with an active high on the day of $35.00, a low of $30.60 with a final trading price at $31.59; Immucor Incorporated (BLUD) posted a nice gain on the session by 10.61% to tack on 3.74 points for a final trading price of $39.00; eFuture Information Technology (EFUT) reversed its trend today from yesterdays to post a loss of 5.60 points to shed 17.72% in value with a high on the day of $34.00, a low of $26.25 for a final trading price of $26.00; 3SBio Incorporated (SSRX) moved lower on the day by 15.76% to shed 3.15 points with a final trading price of $16.84; Garmin Limited (GRMN) began a rebound today with a gain of 4.29 points with a high on the day of $102.55, a low of $96.28 with a closing price at the bell of $100.81 and NII Holdings Incorporated (NIHD) moved lower on the day by 4.46 points with a high on the session of $79.15, a low of $70.96 for a final trading price of $74.36.

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Millennium-Traders