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Market Commentary for December 7, 2007


Trading activity was very sluggish today amidst light trading volume and snug trading ranges that provided an almost listless trading session for day traders and investors. Trading action was generally choppy with little direction whether you were a Bear or a Bull. Throughout the trading day the major indices were mixed and at the close of the session, remained that way with very little change, overall. At the closing bell, traders let out a sigh of relief just to put the week to a close.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a gain of 5.69 points on the day to end the session at 13,625.58; the NYSE (New York Stock Exchange) posted a loss of 6.57 points to end the session at 10,023.58; the NASDAQ posted a loss of 2.87 points for a close at 2,706.16; the S&P 500 moved lower by 2.68 points to end at 1,504.66 and the RUSSELL 2000 moved lower by 1.43 points to close at 785.52. 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 0.33 points to close at 270.80 and the FTSE RAFI 1000 posted a loss of 1.20 points to close at 6,156.02.

U.S. November Non-farm Payrolls rose 94K compared to consensus of an increase by 85K; U.S. November Unemployment Rate came in at 4.7% compared to consensus of 4.8%; U.S. November Average Hourly Earnings rose $0.08 to $17.63; U.S. November Manufacturing Payrolls fell 11K; U.S. November Service-Producing Payrolls rose 127K; U.S. November Overall Workweek changed by 0.0 Hour to 33.8 Hours; U.S. October Payrolls was revised to an increase by 170K from an increase by 166K and U.S. October Unemployment was left unrevised at 4.7%.

University of Michigan Mid-December Consumer Sentiment came in at 74.5 compared to November reading of 76.1; University of Michigan Mid-December Consumer Sentiment Current Index came in at 92.1 compared to November reading of 91.5; University of Michigan Mid-December Consumer Sentiment Expectations came in at 63.2 compared to November reading of 66.2 and University of Michigan Consumer Sentiment 12-Month Inflation Forecast rose 3.5% compared to November reading of an increase by 3.4%.

U.S. Treasury Secretary Henry M. Paulson Jr. commented today: Taxpayers Won't Shoulder any Burden of Mortgage Plan; Applauds Congressional Action on AMT Relief and Would Not Say China Markets Open to U.S.

Treasury Economic Update
"Today's data indicate that the labor market remains healthy, with a low unemployment rate and continued job growth. We expect the economic expansion to continue even with the challenges we face in the housing and credit markets." Assistant Secretary Phillip Swagel, December 7, 2007.

Job Creation Continues: Job Growth: 94,000 new jobs were created in November, the 51st straight month of job gains. The United States has added 1.5 million jobs in the past 12 months and about 8 and a half million jobs since August 2003. Employment increased in 48 states and the District of Columbia over the year ending in October. (Last updated: December 7, 2007).

Low Unemployment: November's 4.7 percent unemployment rate is close to its lowest reading in 6 years. Unemployment rates have declined in 25 states and the District of Columbia over the year ending in October. (Last updated: December 7, 2007).

There Are Many Signs of Economic Strength: Economic Growth: Real GDP growth was 4.9 percent in the third quarter of 2007, supported by strong gains in business investment and exports. (Last updated: November 29, 2007).

Business Investment: Business spending on commercial structures and equipment rose solidly in the third quarter. Healthy corporate balance sheets bode well for continued investment growth. (Last updated: November 29,2007).

Exports: Strong global growth is boosting U.S. exports, which grew by 10.2 percent over the past 4 quarters. (Last updated: November 29, 2007).

Inflation: Core inflation remains contained. The consumer price index excluding food and energy rose 2.2 percent over the 12 months ending in October. (Last updated: November 15, 2007).

Tax Revenues: Tax receipts rose 6.7 percent in fiscal year 2007 (FY07) on top of FY06's 11.8 percent increase. As a share of GDP, FY07 receipts exceeded their 40-year average. (Last updated: October 12, 2007).

Americans Are Keeping More of Their Hard-Earned Money: Real after-tax income per person increased 2.7 percent over the past 12 months (ending in October). (Last updated: November 30, 2007).

Pro-Growth Policies Will Enhance Long-Term U.S. Economic Strength: We are on track to make significant further progress on the deficit. The FY07 budget deficit was down to 1.2 percent of GDP, from 1.9 percent in FY06. 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 lower across the board today for the Energy Sector: Light crude moved lower today by $1.95 to close at $88.28 a barrel; Heating Oil moved lower today by $0.04 to close at $2.50 a gallon; Natural Gas moved lower today by $0.18 to close at $7.16 per million BTU and Unleaded Gas moved lower today by $0.03 to close at $2.27 a gallon.

Metals Market ended the session mostly lower across the board today: Gold moved lower today by $6.90 to close at $800.20 a Troy ounce; Silver moved lower by $0.12 today to close at $14.51 per Troy ounce; Platinum moved lower today by $8.00 to close at $1,462.20 per Troy ounce and Copper moved higher by $0.08 to close at $3.13 per pound.

On the Livestock and Meat Markets, the trend was mostly higher across the board today: Lean Hogs ended the day higher by $0.50 to close at $61.70; Pork Bellies ended the day higher by $1.08 at $91.33; Live Cattle ended the day higher by $0.58 at $96.75 and Feeder Cattle ended the day lower by $0.40 at $105.95.

Other Commodities: Corn ended the day higher by $5.25 at $417.25 and Soybeans moved nicely higher today by $21.00 to end the session at $1,119.75.

Bonds were lower across the board for the third day in a row today: 2 year bond moved lower by 5/32 at 100 1/32; 5 year bond moved lower by 18/32 at 99 13/32 today; 10 year bond moved lower by 27/32 at 101 4/32 and the 30 year bond moved lower by 1 18/32 at 106 30/32 for the day.

The e-mini Dow ended the session today at 13,648 with a gain of 31 points on the trading session. The total Dow Exchange Volume for the day came in at 159,183 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 3,921,884; Open Interest for Futures moved lower by 84,648 points to close at 9,746,925; the Open Interest for Options moved higher by 117,683 points to close at 6,374,783 and the Cleared Only closed higher by 20 points to close at 16,046 for a total Open Interest on the day of 16,137,754 for a total Change on the day with a gain of 33,055 points.

On the NYSE today, advancers came in at 1,640; decliners totaled 1,556; unchanged came in at 80; new highs came in at 106 and new lows came in at 29. Momentum stocks traded by active day traders on the NYSE today: Petroleo Brasileiro S.A. (PBR) gained 0.03 points with a high of $109.71, a low of $106.31 for a closing price at $106.71; Suntech Power Holdings Company Limited (STP) gained 4.91 points on the day with a high of $80.50, a low of $76.58 for a closing price at $80.31; Rio Tinto plc (RTP) gained 4.53 points with a high of $468.49, a low of $461.01 for a closing price at $468.00; CME Group Incorporated (CME) gained 7.20 points with a high on the day of $710.82, a low of $695.03 for a close at the high of $707.00; L-3 Communications Holdings Incorporated (LLL) shed 3.62 points with a high of $113.05, a low of $108.64 for a closing price of $109.67; Southern Copper Corporation (PCU) gained 6.47 points with a high of $118.50, a low of $112.94 for a closing price of $117.68; MasterCard Incorporated (MA) gained 3.58 points with a high on the day of $211.75, a low of $204.50 for a closing price at $209.60; Cascade Corporation (CAE) shed 11.11 points with a high of $60.60, a low of $51.10 for a closing price of $53.22 and Goldman Sachs Group Incorporated (GS) shed 4.62 points with a high on the day of $224.04, a low of $217.03 for a closing price at $217.89.

On the NASDAQ today, advanced totaled 1,430; decliners totaled 1,544; unchanged came in at 145; new highs came in at 70 and new lows came in at 100. Momentum stocks on the NASDAQ today: Apollo Group Incorporated (APOL) shed 1.84 points with a high of $78.62, a low of $75.48 for a closing price of $76.65; Sirona Dental Systems Incorporated (SIRO) gained 3.41 points with a high of $32.99, a low of $29.23 for a closing price of $30.51; United Therapeutics Corporation (UTHR) gained 4.11 points with a high of $103.36, a low of $98.50 for a closing price of $102.19; FormFactor Incorporated (FORM) shed 4.97 points with a high of $38.75, a low of $33.32 for a closing price of $33.90; First Solar Incorporated (FSLR) gained 17.07 points with a high of $235.48 a low of $213.47 for a closing price of $235.47; China Resources Incorporated (CHNR) gained 0.10 points with a high of $31.90, a low of $24.09 for a closing price at $26.80 and Apple Incorporated (AAPL) gained 4.35 points with a high of $194.99, a low of $188.04 for a closing price of $194.30.

Thanks for reading
Millennium-Traders