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Market Commentary for November 07, 2007


The markets took a hefty plunge today with the DOW and the NYSE posting heavy triple digit losses at the close, after a negative activity session controlled by the Bears. Soaring oil prices and continuous problems with mortgage lenders added to the negative disposition of the markets. Across the board, investors faced heavy losses of their portfolios. Day traders however, reaped the benefits on the short selling side amidst the massive selloff.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a triple digit loss of 360.92 points on the day to end the session at 13,300.02; the NYSE (New York Stock Exchange) posted a triple digit loss of 272.26 points to end the session at 9,830.15; the NASDAQ posted a loss of 76.42 points for a close at 2,748.76; the S&P 500 moved lower by 44.65 points to end at 1,475.62 and the RUSSELL 2000 moved lower by 25.81 points to close at 775.96. 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 loss of 3.37 points to close at 270.66 and the FTSE RAFI 1000 posted a hard triple digit loss of 178.98 points to close at 6,028.47.

U.S. Third Quarter Non-Farm Productivity rose by 4.9% as compared to consensus of an increase by 3.4%; U.S. Third Quarter Unit Labor Costs fell by 0.2% as compared to consensus of an increase by 0.8% and U.S. Productivity rose at fastest pace since Third Quarter of 2003.

FOMC Member and President of the Federal Reserve Bank of St. Louis Dr. William Poole comments released today: confident normal market functioning will return; disorder in financial markets not yet complete; excessive rate cuts could increase inflation; fed needs to do what is necessary, but not more; financial markets highly efficient most of the time; implications of market upset on economy `unclear'; markets showing signs upset is resolving itself; recent weeks show `clear progress' and woes in housing market may continue `for some time'.

Federal Open Market Committee Member, Kevin M. Warsh comments released today: Bernanke Fed wants markets to understand its goals; concerned about long-term inflation outlook; corporate bond market closer to normalizing; Fed Funds Futures useful rate outlook barometer; Fed is aware of moral hazard risks; Fed's policy focus is on real economy; financial markets seem 'much improved' from August; global liquidity shock still impacting some markets; inflation expectations look contained; inflation expectations look contained; is comfortable with Fed's policy responses; many market segments are recovering; must be wary of retrenchment as markets recover; rate cuts have lowered downside risk to growth; says some data suggest U.S. economy slowed in fourth quarter and U.S. inflation, growth risks now roughly balanced.

President and CEO of the Federal Reserve Bank of Atlanta, Dennis P. Lockhart comments released today: recent economic data mixed but, strong overall; housing, financial markets unlikely to severely impact economy; envisions 'moderate' slowdown in economic activity; limited spillover from housing to broader economy; surprised by personal consumption holding up well; October Job market data 'encouraging'; also keeping a close watch on prices; inflation has improved, but risks remain; higher energy prices could put pressure on inflation; sees slower GDP in fourth quarter 2007, first half of 2008; housing likely to weigh on consumer spending; rate cuts were supportive of financial markets; financial system today is more 'opaque'; current economic situation 'uncertain'; Fed focused on economic, concerns about financial sector; anecdotal evidence paints grimmer picture than data; supported October cut to insure versus downside risk to economy and sees slower GDP growth in fourth quarter 2007, first half of 2008.

Federal Open Market Committee Member, Frederic S. Mishkin comments released today: oil's impact on business much smaller than 20 yrs ago and oil prices should come down, but many uncertainties.

President of the Federal Reserve Bank of Richmond Jeffrey M. Lacker comments released today: discount window stigma is 'overblown'; supports most recent Fed Rate Cut and 'very comfortable' with current market functioning.

Commodities Markets
The trend was mixed across the board today for the Energy Sector: Light crude moved lower today by $0.33 to close at $96.37 a barrel; Heating Oil closed higher by $0.01 today at $2.62 a gallon; Natural Gas moved lower today by $0.24 to close at $7.62 per million BTU and Unleaded Gas moved higher today by $0.01 to close at $2.44 a gallon.

Metals Market ended the session mostly lower across the board today: Gold moved nicely higher today by $10.10 to close at $833.50 an ounce; Silver moved lower by $0.06 to close at $15.33 per ounce; Platinum moved sharply lower today by $18.70 to close at $1,465.00 an ounce and Copper closed lower by $0.08 today at $3.26 per pound.

On the Livestock and Meat Markets, the trend was mostly lower across the board today: Lean Hogs ended the day higher by $0.35 to close at $51.48; Pork Bellies ended the day lower by $0.45 at $84.75; Live Cattle ended the day lower by $0.88 at $94.88 and Feeder Cattle ended the day lower by $0.90 at $107.18.

Other Commodities: Corn moved lower today by $1.50 to close at $384.25 and Soybeans moved sharply lower today by $6.00 to end the session at $1,038.50.

Bonds were higher across the board today: 2 year bond moved higher by 9/32 to close at 100 4/32; 5 year bond moved higher by 16/32 to close at 99 31/32 today; 10 year bond moved higher by 15/32 today to close at 103 13/32 and the 30 year bond closed higher by 8/32 at 105 16/32 for the day.

The e-mini Dow ended the session today at 13,674 300 with a heavy loss of 322 points on the trading session. The total Dow Exchange Volume for the day came in at 180,334 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 4,065,152; Open Interest for Futures moved higher by 205,100 points to close at 10,030,951; the Open Interest for Options moved higher by 99,425 points to close at 8,950,056 and the Cleared Only closed with no change at 13,441 for a total Open Interest on the day of 18,994,448 for a total Change on the day with a gain of 159,586 points.

On the NYSE today, advancers came in at 307 decliners totaled 3,009; unchanged came in at 51; new highs came in at 149 and new lows came in at 450. Gainers and losers for the day as well as active day trading stocks on the NYSE: CME Group (CME) took a tumble on the session to shed 9.10 points by the closing bell with a high on the session of $672.50, a low of $657.90 for a final trading price at $660.00; FTSE/Xinhua China 25 (FXI) moved lower on the day to post a loss of 9.45 points with a high on the day of $195.73, a low of $188.00 for a final trading price at $188.80; PetroChina Company Limited (PTR) literally tanked on the day to post a loss of 16.62 points with a high on the day of $221.49, a low of $212.80 for a closing price at the low of the day $212.80; Goldman Sachs Group Incorporated (GS) took a hit on the day with a loss of 8.98 points for a high on the session of $221.79, a low of $213.16 to close the session at $214.18 and VMWARE Incorporated (VMW) moved lower on the day to post a loss of 8.44 points with a high on the day of $108.50, a low of $102.12 with a final trading price just off the low at $102.50.

On the NASDAQ today, advanced totaled 575; decliners totaled 2,245; unchanged came in at 106; new highs came in at 60 and new lows came in at 401. Gainers and losers for the day as well as, active day trading stocks on the NASDAQ: DryShips Incorporated (DRYS) was a very nice play for active day traders today which moved sharply lower on the day to post a loss of 9.78 points with a high on the session of $119.99, a low of $103.52 for a final trading price at $106.20; Blue Nile Incorporated (NILE) posted a nice gain on the trading day of 6.83 points with a high on the day of $85.00, a low of $76.25 with a closing price at $81.51; ONYX Pharmaceuticals Incorporated (ONXX) moved nicely higher on the day to post a gain of 8.68 points with a high on the day of $60.02, a low of $51.30 with a final trading price at $58.03; Google Incorporated (GOOG) moved lower on the day to post a loss of 8.85 points with a high on the day of $747.24, a low of $723.14 with a final trading price at $732.94; Baidu.com Incorporated (BIDU) posted a heavy loss of 12.70 points with a high on the day of $411.73, a low of $393.50 with a closing price at $395.00 and Garmin Limited (GRMN) tumbled lower on the session to post a hefty loss of 11.22 points with a high on the day of $96.68, a low of $88.89 with a final trading price of $89.34.

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