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Market Commentary for October 05, 2007


The markets surged higher during the session amidst satisfying jobs reports before the opening bell. The Bulls were fully in control of the market direction and the S&P 500 rallied to close at an all time record high. Next week is the official beginning of third quarter earnings announcements therefore; we’ll know more of overall market direction, next week.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a gain of 91.70 points on the day to end the session at 14,066.01; the NYSE (New York Stock Exchange) posted a triple digit gain of 105.00 points to end the session at 10,247.93; the NASDAQ posted a gain of 46.75 points for a close at 2,780.32; the S&P 500 moved higher with a gain of 14.75 points to end at 1,557.59 and the RUSSELL 2000 moved higher by 15.73 points to close at 844.88. 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 2.64 points to close at 273.89 and the FTSE RAFI 1000 posted a gain of 62.47 points to close at 6,403.86.

U.S. August Consumer Credit Increased by $12.2 Billion and July Consumer Credit was revised higher by $9.6 Billion from an increase by $7.5 Billion.

U.S. September Overall Workweek came in at 33.8 Hours; U.S. September Unemployment Rate came in at 4.7% versus consensus of 4.7%; U.S. September Average Hourly Earnings rose by $0.07 to $17.57; U.S. September Manufacturing Payrolls fell by 18K; U.S. September Service Producing Payrolls rose by 143K; U.S. Public Education Payrolls rose 45.8K in September; U.S. August Unemployment was left Unrevised at 4.6% and U.S. August Payrolls were revised to an increase by 89K from a drop by 4K.

Treasury Economic Update
"Today's data demonstrate the resilience of the U.S. economy. Steady job creation, rising wages, and still-low unemployment mean that the U.S. economy is in good shape to weather the difficulties we are seeing in housing and credit markets." Assistant Secretary Phillip Swagel, October 5, 2007
Job Creation Continues:
Job Growth: 110,000 new jobs were created in September, the 49th straight month of job gains. The United States has added 1.6 million jobs in the past 12 months and over 8.4 million jobs since August 2003. Employment increased in 48 states and the District of Columbia over the year ending in August. (Last updated: October 5, 2007)
Low Unemployment: September's 4.7 percent unemployment rate is close to its lowest reading in 6 years. Unemployment rates have declined or held steady in 29 states and the District of Columbia over the year ending in August. (Last updated: October 5, 2007)
There are Still Many Signs of Economic Strength:
Economic Growth: Real GDP growth was 3.8 percent in the second quarter of 2007, supported by strong gains in business investment and exports. (Last updated: September 27, 2007)
Business Investment: Business spending on commercial structures and equipment strengthened in the second quarter. Strong corporate profits and healthy balance sheets bode well for continued investment growth. (Last updated: September 27, 2007)
Exports: Strong global growth is boosting U.S. exports, which grew by 7.1 percent over the past 4 quarters. (Last updated: September 27, 2007)
Inflation: Core inflation remains contained. The consumer price index excluding food and energy rose 2.1 percent over the 12 months ending in August. (Last updated: September 19, 2007)
Tax Revenues: Tax receipts rose 11.8 percent in fiscal year 2006 (FY06) on top of FY05's 14.6 percent increase. As a share of GDP, FY07 receipts are projected to be above their 40-year average. (Last updated: July 13, 2007)
Americans Are Keeping More of Their Hard-Earned Money: Real Wages Increased 2.2 percent Over the Past 12 Months (ending in August). This translates into an additional $720 above inflation for the average full-time production worker over the last year. Pro-Growth Policies will Enhance Long-Term U.S. Economic Strength: We are on track to balance the budget by 2012. The Mid-Session Review of the FY 2008 Budget shows that we are on track to achieve a small surplus in 2012. This year, the deficit is projected to be down to 1.5 percent of GDP. Much of the improvement in the deficit reflects strong revenue growth, which in turn reflects the continued strength of the U.S. economy. Looking ahead, higher spending on entitlement programs dominates the future fiscal situation; we must squarely face up to the challenge of reforming these programs.

Commodities Markets
The trend was mostly lower across the board again today for the Energy Sector: Light crude moved lower today by $0.22 to close at $81.22 a barrel; Heating Oil moved lower today by $0.01 to close at $2.22 a gallon; Natural Gas moved lower today by $0.34 to close at $7.07 per million BTU and Unleaded Gas closed at $2.05 a gallon.

Metals Market ended the session mixed across the board today: Gold moved higher today by $3.40 to close at $747.20 an ounce; Silver moved lower by $0.01 to close at $13.49 per ounce; Platinum moved nicely higher again today by $9.40 to close at $1,387.80 an ounce and Copper closed lower by $0.01 at $3.73 per pound.

On the Livestock and Meat Markets, the trend was mixed across the board yet again today: Lean Hogs ended the day higher by $0.23 to close at $60.30; Pork Bellies ended the day higher by $0.10 at $87.43; Live Cattle ended the day lower by $1.73 at $96.13 and Feeder Cattle ended the day lower by $1.55 at $113.50.

Other Commodities: Corn had no change today with a close of $342.25 and Soybeans moved sharply lower today with a loss of $13.75 points to end the session at $940.50.

The e-mini Dow ended the session today at 14,154 with a sharp gain of 113 points on the trading session. The total Dow Exchange Volume for the day came in at 89,896 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 lower across the board today: 2 year bond moved lower by 7/32 today to close at 99 26/32; 5 year bond moved lower by 20/32 to close at 99 19/32 today; 10 year bond moved lower by 1 today to close at 100 27/32 and the 30 year bond moved lower by 1 25/32 to close at 102 1/32 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 2,857,288; Open Interest for Futures moved higher by 16,887 points to close at 9,109,684; the Open Interest for Options moved higher by 33,851 points to close at 8,077,130 and the Cleared Only closed higher by 60 points to close at 8,425 for a total Open Interest on the day of 17,194,239 with a total Change on the day with a gain of 50,798 points.

On the NYSE today, advancers came in at 2,406; decliners totaled 814; unchanged came in at 87; new highs came in at 247 and new lows came in at 33, same as yesterday. Gainers and losers for the day as well as active day trading stocks on the NYSE: CME Group Incorporated (CME) soared higher on the trading day with a sharp gain on the Big Board of 24.30 points with a high on the session of $629.53, a low of $609.29 with a final trading price of $629.15; LDK Solar Corporation Limited (LDK) once again provided nice activity for the active day trader with a high on the session of $52.64, a low of $43.08 with a gain on the trading day by 2.65 points for a final trading price of $50.95; Rio Tinto plc (RTP) bolted higher with a gain of 10.28 points with a high on the day of $352.25, a low of $343.37 for a final trading price of $348.55; Uniao de Bancos Brasileiros (UBB) moved nicely higher on the session for a gain of 8.93 points with a high on the day of $146.67, a low of $141.25 for a closing price at $145.39; China Life Insurance Company (LFC) tacked on 6.63 points with a final trading price at $95.97 and PetroChina Company Limited (PTR) pounded higher for a gain of 14.40 points with a high on the day of $191.49, a low of $185.40 with a closing price at $190.83.

On the NASDAQ today, advanced totaled 2,185; decliners totaled 786; unchanged came in at 152; new highs came in at 259 and new lows came in at 71. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: Sears Holdings Corporation (SHLD) was quite active today with a high on the day of $152.87, a low of $142.75 with a gain of 7.84 points to end the session at $149.24; China Natural Resources Incorporated (CHNR) once again attracted the attention of day traders with a high on the day of $49.75, a low of $38.25 to shed 4.26 points with a final trading price of $40.00; Cardica Incorporated (CRDC) bolted today for a gain of 17.36% to climb higher by 1.93 points with a high on the session of $15.15. a low of $11.57 for a closing price of $13.05; Starent Networks Corporation (STAR) plowed higher today for a gain of 3.19 points to tack on 13.45% with a high on the day of $27.95, a low for $25.21 to end the trading day at $26.90 and Research In Motion Limited (RIMM) made a sharp gain on the day by 12.94 points to climb by 12.87% with a high on the session of $114.76, a low of $107.48 for a closing price at $113.48.

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Millennium-Traders