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Market Commentary for January 22, 2008


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 127.62 points on the day to end the session at 11,971.68; the NYSE (New York Stock Exchange) posted a triple digit loss of 133.68 points to end the session at 8,661.18; the NASDAQ posted a loss of 47.75 points for a close at 2,292.27; the S&P 500 posted a loss of 14.69 points for a close at 1,310.50 and the RUSSELL 2000 moved lower by 1.61 points to close at 671.57. 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 9.07 points to close at 229.99 and the FTSE RAFI 1000 posted a loss of 39.66 points to close at 5,345.21.

On the NYSE today, advancers came in at 1,332; decliners totaled 1,872; unchanged came in at 64; new highs came in at 21 and new lows came in at 984. Momentum stocks traded by active Day Traders on the NYSE today: Rio Tinto plc (RTP) shed 35.70 points with a high on the day of $336.99, a low of $310.44 for a closing price at $331.80; CME Group, Incorporated (CME) gained 22.60 points with a high on the day of $583.69, a low of $527.68 for a closing price at $581.00; Petroleo Brasileiro (PBR) gained 2.44 points with a high on the day of $97.91, a low of $88.69 for a closing price at $96.81; Schlumberger Limited (SLB) shed 2.43 points with a high on the day of $79.22, a low of $74.43 for a closing price at $77.09; iShares FTSE/Xinhua China 25 Index (FXI) shed 12.44 points with a high on the day of $150.00, a low of $134.98 for a closing price at $144.50; Potash Corp. of Saskatchewan, Incorporated (POT) gained 0.22 points with a high on the day of $124.15, a low of $108.55 for a closing price at $123.00; InterContinental Exchange, Incorporated (ICE) shed 0.73 points with a high on the day of $141.97, a low of $126.87 for a closing price at $137.87; Transocean, Incorporated (RIG) shed 4.25 points with a high on the day of $125.62, a low of $120.50 for a closing price at $124.16; Goldman Sachs Group (GS) gained 3.48 points with a high on the day of $192.83, a low of $174.05 for a closing price at $190.69; Oil Services HOLDRs (OIH) shed 3.82 points with a high on the day of $159.98, a low of $152.00 for a closing price at $157.78; Abercrombie & Fitch Corporation (ANF) gained 3.19 points with a high on the day of $74.85, a low of $66.05 for a closing price at $73.79; DeVry, Incorporated (DV) shed 6.99 points with a high on the day of $58.80, a low of $51.56 for a closing price at $51.89; Las Vegas Sands Corporation (LVS) gained 3.90 points with a high on the day of $80.50, a low of $70.70 for a closing price at $79.50; ITT Educational Services Incorporated (ESI) shed 13.09 points with a high on the day of $80.79, a low of $65.50 for a closing price at $71.25; Hartford Financial Services Group Incorporated (HIG) shed 1.75 points with a high on the day of $77.29, a low of $69.15 for a closing price at $75.10; Mastercard Incorporated (MA) gained 9.61 points with a high on the day of $184.92, a low of $161.42 for a closing price at $184.23.

On the NASDAQ today, advanced totaled 977; decliners totaled 2,098; unchanged came in at 84; new highs came in at 13 and new lows came in at 983. Momentum stocks traded by active Day Traders on the NASDAQ today: Career Education Corporation (CECO) shed 2.91 points with a high on the day of $18.20, a low of $15.53 for a closing price at $17.03; Corinthian Colleges Incorporated (COCO) shed 3.34 points with a high on the day of $10.35, a low of $6.45 for a closing price at $7.55; Apple Incorporated (AAPL) shed 5.72 points with a high on the day of $159.98, a low of $146.00 for a closing price at $155.64; Baidu.com Incorporated (BIDU) gained 0.23 points with a high on the day of $277.13, a low of $244.10 for a closing price at $273.27; First Solar Incorporated (FSLR) gained 6.91 points with a high on the day of $184.96, a low of $150.53 for a closing price at $182.79; Google Inc (GOOG) shed 15.90 points with a high on the day of $597.50, a low of $561.20 for a closing price at $584.34; SunPower Corporation (SPWR) gained 3.17 points with a high on the day of $79.08, a low of $65.50 for a closing price at $77.92; Sears Holdings Corporation (SHLD) gained 10.42 points with a high on the day of $106.78, a low of $85.50 for a closing price at $99.85; DENTSPLY International Incorporated (XRAY) shed 1.79 points with a high on the day of $44.22, a low of $42.42 for a closing price at $43.10; Garmin Limited (GRMN) shed 3.63 points with a high on the day of $62.00, a low of $55.00 for a closing price at $59.36; Invitrogen Corporation (IVGN) shed 6.49 points with a high on the day of $93.10, a low of $87.71 for a closing price at $88.11.

The Federal Reserve Board cut its target for the federal funds rate 75 basis points to 3.5%. The unusual action by the Fed to cut interest rates before a scheduled meeting at the end of the month said it took this action "in view of a weakening of the economic outlook and increasing downside risks to growth." "While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households," the Fed said. "Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labor markets," the Fed said. The Fed said it expects inflation to moderate in coming quarters, "but it will be necessary to continue to monitor inflation developments carefully."

President George W. Bush commented today: Optimistic Lawmakers can find Common Ground on Stimulus; Bush Already Announced $150 Billion Economic Stimulus Package; Won't Rule out Larger Stimulus Package; Still not Forecasting U.S. Recession.

Richmond Fed data released today: January Retail Revenues Index fell by 30 versus December drop by 2; January Services Revenues Index fell by 12 versus December change of 0; January Manufacturing Shipments Index fell by 17 versus December drop by 10; January Manufacturing Index fell by 8 versus December drop by 4.

Treasury Secretary Henry Paulson comments released today: Rate Cut Shows Fed Nimble, able to move Quickly; Paulson Calls U.S. Fed Rate Cut 'Very Constructive'; Strong China Economic Growth Good for U.S.; China Should Appreciate Yuan more Quickly; Risk is Being Re-priced across Markets; Both Parties Committed to fast Fiscal Stimulus; President Ready to act as soon as possible; Sees Broad, Bipartisan Support for Stimulus; Discussions with U.S. Lawmakers have been Positive; Optimistic on Winter Fiscal Stimulus Package.

Bank of England Governor Mervyn King comments released today: Weaker Pound Aids Needed Economic Rebalancing; Weaker Pound will Exacerbate Inflation Pressures; Credit Tightening Unlikely to be Short-Lived; Money Market Conditions Remain Fragile; Current Account Deficit "Becoming More Difficult"; Inflation Rate could Rise above 3% In 2008; Quite Sharp Slowing in Economy Possible Short-Term; Bank Rate at 5.5% Probably Restrictive.

Commodities Markets
The trend was lower across the board today for the Energy Sector: Light crude moved lower today by $0.72 to close at $89.85 a barrel; Heating Oil moved lower today by $0.03 to close at $2.46 a gallon; Natural Gas moved lower today by $0.30 to close at $7.65 per million BTU and Unleaded Gas moved lower today by $0.02 to close at $2.28 a gallon.

Metals Markets ended the session mostly lower across the board today: Gold moved higher today by $8.60 to close at $890.30 a Troy ounce; Silver moved higher today by $0.11 to close at $16.11 per Troy ounce; Platinum moved lower today by $6.90 to close at $1,558.60 per Troy ounce and Copper moved lower by $0.04 today to close at $3.20 per pound.

On the Livestock and Meat Markets, the trend was mixed across the board today: Lean Hogs ended the day lower by $0.18 to close at $62.25; Pork Bellies ended the day lower by $0.25 to close at $83.95; Live Cattle ended the day higher by $0.08 at $94.33 and Feeder Cattle ended the day higher by $0.05 at $102.35.

Other Commodities: Corn ended the day lower today by $9.25 at $489.25 and Soybeans moved sharply lower today by $24.50 to end the session at $1,241.00.

Bonds were higher across the board today: 2 year bond moved higher by 19/32 to close at 102 9/32; 5 year bond moved higher by 1 3/32 to close at 104 21/32 today; 10 year bond moved higher by 1 8/32 to close at 106 11/32 and the 30 year bond moved higher by 1 3/32 to close at 113 on the day.

The e-mini Dow ended the session today at 11,996 with a loss of 110 points on the trading session. The total Dow Exchange Volume for the day came in at 293,996 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 3,732,001; Open Interest for Futures moved higher by 91,440 points to close at 10,330,139; the Open Interest for Options moved higher by 154,147 points to close at 8,944,539 and the Cleared Only closed higher by 1 point to close at 21,724 for a total Open Interest on the day of 19,296,402 for a total Change on the day with a gain of 245,588 points.

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Millennium-Traders