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Market Commentary for October 10, 2007


The session was wicked at times, with a whipotile action that plagued day traders through out the trading day. The Bulls and Bears struggled all day with a mixed hand at the closing bell. The Bears had more control, holding the markets in the red zone, for a majority of the trading session. On a positive note, the DOW was down over 150 during the session but, was able to rebound a substantial amount of that, before the closing bell.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a loss of 85.84 points on the day to end the session at 14,078.69 the NYSE (New York Stock Exchange) posted a loss of 15.81 points to end the session at 10,264.50; the NASDAQ posted a gain of 7.70 points for a close at 2,811.61; the S&P 500 moved lower by 2.68 points to end at 1,562.47 and the RUSSELL 2000 moved lower by 0.53 points to close at 845.19. 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 0.56 points to close at 275.55 and the FTSE RAFI 1000 posted a loss of 13.70 points to close at 6,411.93.

U.S. MBA Purchase Index Rises 2.1% to 420.2 from 411.4; U.S. MBA Market Index Rises 2.4% to 652 from 636.7 and U.S. MBA Refinancing Index Rises 2.7% to 2003.2 from 1950.4.

U.S. August Wholesale Inventories rose by 0.1% compared to expectations of an increase by 0.3%.

ICSC-UBS Chain Store Sales were unchanged for week of October 6: The International Council of Shopping Centers-UBS Retail Chain Store Sales Index was unchanged in the week ended October 6 from its level in the week before on a seasonally adjusted, comparable-store basis, according to data reported Tuesday. The report was also unchanged last week. "The sales performance was weakened again by abnormally warm weather, which curbed seasonal apparel demand and with it overall spending," said Mike Niemira, chief economist at ICSC who compiles the index. On the year, chain store sales were up 2.1% in the week ended October 6 compared with a rise of 2.7% the previous week.

President of the Federal Reserve Bank of Boston, Eric S. Rosengren comments released today: wholesale risk reassessment not happening; market troubles a sign of liquidity problems; confident market conditions will normalize; house investment 'major source' of weakness; investors 'delegated due diligence'; investors relied too much on ratings agencies; investors must evaluate new credit better; may take time for spreads to narrow again; hopeful banks will aid sub-prime borrowers; does not address rate policy in remarks; ratings agency process deserves scrutiny; weaker dollar is good and bad news; lower dollar a 'potential' inflation concern and lower dollar should aid exports.

Former Chairman of the Federal Reserve, Alan Greenspan comments released today: economic data look good through third quarter; credit changes were `accident waiting to happen'; U.S. home prices will `almost certainly' fall; rising stocks could lessen pain from housing; odds of skirting recession better than 50/50; globalization, China market making new economic behemoth and rising inflation in China not that significant.

U.S. Treasury Secretary Henry Paulson said Wednesday that mortgage market participants are joining together to help struggling homeowners refinance their mortgages, calling foreclosures "painful" for families and the overall economy. Paulson said an alliance has been formed that now includes mortgage servicer’s handling 60% of the country's home loans, along with industry groups and mortgage counselors. "Foreclosures are painful not only for families, but also for neighborhoods, for mortgage servicer’s, for mortgage investors, and for the economy as a whole," Paulson said in the text of remarks prepared for a press conference. The alliance shows that the home lending sector is "stepping up efforts to prevent foreclosure for as many families as possible," he said. The formation of the alliance is part of an initiative launched by President George W. Bush last month to provide relief to a growing number of homeowners who are falling behind on their mortgage payments. Their numbers are expected to swell as an estimated $600 billion sub-prime adjustable-rate mortgages reset higher by the end of the next year, at a time when the U.S. housing market undergoes a sharp correction. Eleven of the country's largest mortgage servicer’s form part of the alliance, but Paulson urged more to join. "Although the servicer’s here represent 60% of mortgages outstanding, we need greater participation if we are going to get to all those that need help as quickly as possible," he said, noting that it is in the industry's interest to minimize foreclosures. The government has been trying to put pressure on mortgage lenders to reach out to troubled borrowers to provide them with a more manageable loan. But a study released by Moody's Investor Services last month showed that most servicer’s had modified only 1% of a sample of loans that reset to a higher rate this year, while finding that sub-prime servicer’s weren't seen as acting aggressive enough in reworking loans. The Bush administration has also come under attack by Democrats in Congress for not going far enough, with House and Senate Democratic leaders calling for a mortgage "czar" to be appointed to manage the crisis. Paulson said the alliance, called Hope Now, has bipartisan support and that he will continue to work with Congress on the issue. The alliance is working to standardize reporting methods to track its progress and increase its effectiveness, he said. Still, Paulson acknowledged that there is a "lot more work to do," and that the alliance isn't the only solution. Hope Now was actually started last year through a partnership between Fannie Mae (FNM), Freddie Mac (FRE), other home lenders and counseling groups such as NeighborWorks America. The group launched a national foreclosure prevention campaign that includes a hotline for homeowners to get counseling. The hotline has already fielded 120,000 calls, including 80,000 so far this year, and nearly half of those who have received counseling have avoided foreclosure, Steve Bartlett, president of the Financial Services Roundtable, told a House committee last month.

Commodities Markets
The trend was higher across the board today for the Energy Sector: Light crude moved higher today by $1.04 to close at $81.30 a barrel; Heating Oil moved higher today by $0.03 again to close at $2.23 a gallon; Natural Gas moved higher today by $0.15 to close at $7.01 per million BTU and Unleaded Gas moved higher today by $0.01 to close at $2.03 a gallon.

Metals Market ended the session higher across the board today: Gold moved higher today by $2.90 to close at $746.00 an ounce; Silver moved higher by $0.09 to close at $13.67 per ounce; Platinum moved sharply higher today by $18.40 to close at $1,398.00 an ounce and Copper closed higher by $0.08 at $3.69 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 $0.05 to close at $59.78; Pork Bellies ended the day lower by $1.05 at $85.68; Live Cattle ended the day higher by $0.13 at $96.63 and Feeder Cattle ended the day lower by $0.18 at $113.08.

Other Commodities: Corn moved higher today by $4.75 to close at $347.25 and Soybeans moved sharply higher again today with a substantial gain of $18.00 to end the session at $968.25.

Bonds were mostly lower across the board again today: 2 year bond moved lower by 3/32 today to close at 99 23/32; 5 year bond moved lower by 4/32 to close at 99 15/32 today; 10 year bond moved lower by 3/32 again today to close at 100 24/32 and the 30 year bond closed at 102 1/32 for the day.

The e-mini Dow ended the session today at 14,141 with a loss of 96 points on the trading session. The total Dow Exchange Volume for the day came in at 132,529 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.

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 2,726,709; Open Interest for Futures moved higher by 45,008 points to close at 9,287,845; the Open Interest for Options moved higher by 88,045 points to close at 8,278,606 and the Cleared Only closed higher by 45 points to close at 8,524 for a total Open Interest on the day of 17,574,975 with a total Change on the day with a gain of 133,098 points.

On the NYSE today, advancers came in at 1,513; decliners totaled 1,693; unchanged came in at 110; new highs came in at 333 and new lows came in at 42, same as yesterday. Gainers and losers for the day as well as active day trading stocks on the NYSE: Rio Tinto plc (RTP) soared higher on the trading session for a gain of 13.41 points with a high on the day of $364.46, a low of $352.16 with a final trading price on the Big Board of $361.80; LDK Solar Corporation Limited (LDK) continued its active movement for day traders with a high on the day of $47.37, a low of $42.78 with a gain on the day of 2.07 points for a final trading price at $46.86; VMware Incorporated (VMW) moved higher by 5.43 points today with a high on the day of $107.49, a low of $101.61 for a final trading price of $107.04; Precision Castparts Corporation (PCP) moved lower by 4.42 points amidst an active session with a high on the day of $154.99, a low of $145.01 for a final trading price at $147.48; Fluor Corporation (FLR) was active on the day to gain 2.54 points with a high on the day of $160.85, a low of $155.80 to close at $158.33 and Southern Copper Corporation (PCU) tacked on 6.56 points with a high on the day of $136.63, a low of $128.90 with a closing price of $135.46.

On the NASDAQ today, advanced totaled 1,408; decliners totaled 1,546; unchanged came in at 152; new highs came in at 355 and new lows came in at 95. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: China Natural Resource Incorporated (CHNR) bolted higher on the day by 15.83% to climb higher by 5.80 points with a high on the day of $45.00, a low of $38.55 with a closing price of $42.50; Costco Wholesale Corporation (COST) moved higher on the day by 5.73 points for a closing price at $69.05; Origin Agritech Limited (SEED) moved higher by 5.64 points for a sharp gain by 72.87% with a high on the day of $12.75, a low of $9.16 with a closing price at $13.38; Art’s-Way Manufacturing Company Incorporated (ARTW) soared higher by 6.03 points to climb by 30.20% with a high of $26.78, a low of $19.00 for a close at $26.00; Free Seas Incorporated (FREE) tacked on a sharp gain of 30.41% to climb higher by 2.39 points for a close at $10.25; Google Incorporated (GOOG) soared higher by 9.35 points with a final trading price of $524.54 and Baidu.com Incorporated (BIDU) posted a sharp gain of 14.06 points with a high of $343.54, a low of $325.00 with a final trade price of $342.84.

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Millennium-Traders