Market Commentary for December 5, 2007


The Bulls were in control of the trading activity today with the markets moving nicely higher during the trading session. At the closing bell, major indices and many stocks ended the session at their highs of the day. Trading volume was moderate and at times trading ranges were firm. Day traders and investors took advantage of the positive market action with stocks posting substantial gains by the close of the trading day.

At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a triple digit gain of 196.23 points on the day to end the session at 13,444.96; the NYSE (New York Stock Exchange) posted a triple digit gain of 139.22 points to end the session at 9,887.60; the NASDAQ posted a gain of 46.53 points for a close at 2,666.36; the S&P 500 moved higher by 22.22 points to end at 1,485.01 and the RUSSELL 2000 moved higher by 13.58 points to close at 765.64. 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 3.29 points to close at 267.59 and the FTSE RAFI 1000 posted a gain of 83.25 points to close at 6,066.20.

ADP sees November U.S. Private Sector Jobs rise by 189,000.

U.S. Third Quarter Non-Farm Productivity was revised to an increase by 6.3% from an increase by 4.9%; U.S. Third Quarter Non-Farm Productivity Consensus rose 6.2%; U.S. Third Quarter Productivity Rise was fastest since Third Quarter 2003; U.S. Third Quarter Unit Labor Costs was revised to a drop by 2.0% from a drop by 0.2% and U.S. Third Quarter Unit Labor Costs Consensus was down by 1.5%.

October Durable Goods was revised to a drop by 0.2% from a drop by 0.4%; October Factory Orders, Excluding Transportation rose 0.6%; October Factory Orders, Excluding Defense rose 0.3%; U.S. Factory Orders rose 0.5% during October compared to consensus of unchanged and September Factory Orders were revised to an increase by 0.3% from an increase by 0.2%.

U.S. Institute for Supply Management November Non-Manufacturing Business Index came in at 54.1; U.S. ISM November Non- Manufacturing Business Index was expected to come in at 54.8; U.S. ISM November Non- Manufacturing Business Index came in at 54.1 versus October reading at 55.8; U.S. ISM November Non- Manufacturing Employment Index came in at 50.8 versus October reading at 51.8; U.S. ISM November Non- Manufacturing Prices Index came in at 76.5 versus October reading at 63.5; U.S. ISM November Non- Manufacturing New Orders Index came in at 51.1 versus October reading at 55.7 and U.S. ISM November Points to 'Continued Economic Growth'.

Department of Energy Crude Oil data released today: U.S. Gasoline Stockpiles rose by 4 Million Barrels in the week compared to expectations of an increase by 700,000 Million Barrels; U.S. Crude Oil Stockpiles fell by 8.0 Million Barrels at 305.2 Million Barrels; U.S. Crude Oil Stockpiles fell by 8.0 Million Barrels in the week compared to expectations of an reduction by 700,000 Million Barrels; U.S. Distillate Stockpiles rose by 1.4 Million Barrels in the week compared to expectations of an reduction by 400,000 Million Barrels and U.S. Refineries ran at a capacity of 89.4 compared to expectations of an increase by 0.1 points at 89.5%.

Challenger Gray & Christmas U.S. November Job Cuts came in at 73,140, higher by 15.9% from October. Layoffs in the auto industry accelerated in November driving announced job reductions to the highest level since August, according to an unscientific tally compiled by outplacement firm Challenger Gray & Christmas and released today. Total announced job cuts rose by 15.9% from October to 73,140 Challenger said, led by 19,144 jobs eliminated in the auto industry and 10,018 in jobs eliminated in the energy industries. November's cuts were down 4.7% from the previous November. Through the first eleven months of 2007, announced layoffs are down 7.8% compared with the first 11 months in 2006. Reductions in the financial services which totaled 147,395 so far this year, slowed to just 6,953 during November, the fewest in the sector since just before the credit crunch hit in August 2007. "Of course, we probably have not seen the last of financial job cuts tied to the housing slump and subsequent collapse in the credit markets," said John Challenger, chief executive of the outplacement firm. "In fact, many analysts are waiting for a major announcement from Citigroup in the coming weeks that some say could impact as many as 45,000 jobs." The Challenger Gray & Christmas report covers only a tiny fraction of those who lose their jobs each month. During September for instance, a total of 1.9 million workers were involuntarily discharged from their jobs, representing about 1.3% of total employment, according to the latest available data from the Labor Department. By comparison, 2.7 million people voluntarily quit their jobs during September. The layoff announcements as tracked by Challenger could take place immediately or over time. The reductions could be accomplished by voluntary means such as retirements, buyouts or workers leaving for other jobs, and they could be offset by hiring in other divisions of a company.

Congressional Budget Office Director Peter R. Orszag commented today: Risk of U.S. Recession now `Elevated'.

Commodities Markets
The trend was mostly lower across the board today for the Energy Sector: Light crude moved lower today by $0.83 to close at $87.49 a barrel; Heating Oil moved lower today by $0.02 to close at $2.49 a gallon; Natural Gas moved higher today by $0.03 to close at $7.19 per million BTU and Unleaded Gas moved lower today by $0.03 to close at $2.22 a gallon.

Metals Market ended the session mostly lower across the board today: Gold moved lower today by $3.90 to close at $803.70 a Troy ounce; Silver moved lower by $0.01 today to close at $14.46 per Troy ounce; Platinum moved lower today by $4.00 to close at $1,468.30 per Troy ounce and Copper moved higher by $0.02 to close at $3.04 per pound.

On the Livestock and Meat Markets, the trend was mixed across the board today: Lean Hogs ended the day higher by $0.78 to close at $61.10; Pork Bellies ended the day higher by $0.63 at $90.18; Live Cattle ended the day lower by $0.35 at $95.95 and Feeder Cattle ended the day lower by $0.75 at $106.25.

Other Commodities: Corn ended the day with no change at $411.25 and Soybeans moved nicely higher today by $8.00 to end the session at $1,099.50.

Bonds were lower across the board today: 2 year bond moved lower by 2/32 at 100 13/32; 5 year bond moved lower by 2/32 at 100 11/32 today; 10 year bond moved lower by 10/32 at 102 18/32 and the 30 year bond moved lower by 1 6/32 at 109 6/32 for the day.

The e-mini Dow ended the session today at 13,459 with a gain of 197 points on the trading session. The total Dow Exchange Volume for the day came in at 133,271 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 9,850,087; Open Interest for Futures moved lower by 135,618 points to close at 9,850,087; the Open Interest for Options moved higher by 179,977 points to close at 6,112,568 and the Cleared Only closed lower by 47 points to close at 16,054 for a total Open Interest on the day of 15,978,709 for a total Change on the day with a gain of 44,312 points.

On the NYSE today, advancers came in at 2,434; decliners totaled 880; unchanged came in at 67; new highs came in at 98 and new lows came in at 128. Active trading stocks on the Big Board today:Advancers: CME Group Incorporated (CME) higher by 27.0 points, high on the session $699.92, low on the session $676.01, closing price $697.25; Petroleo Brasileiro S.A. (PBR) higher by 6.39 points, high on the session $103.30, low on the session $99.46, closing price $102.64; PetroChina Company Limited (PTR) higher by 12.27 points, high on the session $202.78, low on the session $198.00, closing price $202.02; The Mosaic Company (MOS) higher by 4.40 points, high on the session $76.16, low on the session $72.00, closing price $75.46; CommScope Incorporated (CTV) higher by 6.31 points, high on the session $46.95, low on the session $43.05, closing price $46.50.Decliners: Transocean Incorporated (RIG) lower by 2.81 points, high on the session $132.44, low on the session $126.83, closing price $127.25; R.H. Donnelley Corporation (RHD) lower by 3.78 points, high on the session $40.58, low on the session $34.66, closing price $36.35.

On the NASDAQ today, advanced totaled 1,979; decliners totaled 1,009; unchanged came in at 126; new highs came in at 41 and new lows came in at 148. Active trading stocks for the day consisted of: Advancers: InterDigital Incorporated (IDCC) higher by 3.13 points, high on the session $20.90, low on the session $18.38, closing price $20.13; Apple Incorporated (AAPL) higher by 5.54 points, high on the session $186.00, low on the session $182.41, closing price $185.65; Google Incorporated (GOOG) higher by 13.79 points, high on the session $698.93, low on the session $687.50, closing price $697.95. Decliners: Sohu.com Incorporated (SOHU) lower by 1.75 points, high on the session $64.83, low on the session $57.61 closing price $58.00.

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Millennium-Traders