Market Commentary for December 11, 2007


Federal Open Market Committee decision on interest rates: Fed Cuts Fed Funds Rate 25 Basis Points to 4.25%, Economy Uncertain; Fed Cuts Discount Rate by 25 Basis Points to 4.75%; FOMC Voted 9-1 for Fed Funds Rate Cut; Rosengren Dissented; Fed's Rosengren Voted for 50 Basis Points Rate Cut; Housing Correction has Intensified; Business, Consumer Spending has Softened some; Cites Deterioration in Financial Market Conditions; Core Inflation Improved Modestly this Year, Risks Remain; Energy, Commodities may put Upward Pressure on Inflation and Rate Cut Should Help Promote Moderate Growth.

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 294.26 points on the day to end the session at 13,432.77; the NYSE (New York Stock Exchange) posted a triple digit loss of 266.16 points to end the session at 9,838.26; the NASDAQ posted a loss of 66.60 points for a close at 2,652.35; the S&P 500 moved lower by 38.31 points to end at 1,477.65 and the RUSSELL 2000 moved lower by 24.93 points to close at 766.27. 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 3.31 points to close at 269.30 and the FTSE RAFI 1000 posted a triple digit loss of 162.62 points to close at 6,038.44.

On the NYSE today, advancers came in at 548; decliners totaled 2,658; unchanged came in at 74; new highs came in at 97 and new lows came in at 68.

Momentum stocks traded by active day traders on the NYSE today: MasterCard Incorporated (MA) gained 2.04 points with a high on the day of $227.18 a low of $215.04 for a closing price at $217.50; Rio Tinto plc (RTP) shed 22.74 points with a high of $473.51, a low of $452.52 for a closing price at $454.97; Mechel OAO (MTL) shed 6.18 points with a high on the day of $101.06, a low of $92.00 for a closing price at $92.62; Temple-Inland Incorporated (TIN) shed 3.58 points with a high on the day of $36.83, a low of $32.89 for a closing price at $33.13; MEMC Electronic Materials Incorporated (WFR) gained 0.28 points with a high on the day of $87.90, a low of $83.02 for a closing price at $83.36; Potash Corporation Saskatchewan (POT) shed 4.76 points with a high on the day of $135.39, a low of $126.50 for a closing price at $127.54; CME Group Incorporated (CME) shed 21.35 points with a high on the day of $710.00, a low of $674.00 for a closing price at $681.15; Petroleo Brasileiro (PBR) shed 1.78 points with a high on the day of $109.14, a low of $102.17 for a closing price at $103.28; Uniao de Bancos Brasileiros SA (UBB) shed 4.96 points with a high on the day of $159.49, a low of $147.31 for a closing price at $151.08; NXI Building Systems Incorporated (NCS) shed 7.66 points with a high on the day of $32.05, a low of $28.11 for a closing price at $28.10; Texas Instruments Incorporated (TXN) gained 0.26 points with a high on the day of $34.60, a low of $32.85 for a closing price at $32.93; LDK Solar Corporation Limited (LDK) shed 1.81 points with a high on the day of $63.70, a low of $55.62 for a closing price at $57.00; Washington Mutual (WM) shed 2.37 points with a high of $19.00, a low of $17.10 for a closing price of $17.51; VMware Incorporated (VMW) gained 1.84 points with a high of $99.99, a low of $93.64 for a closing price of $95.29; Cummins Incorporated (CMI) shed 4.23 points with a high of $127.03, a low of $117.58 for a closing price of $119.50 and Goldman Sachs Group Incorporated (GS) shed 13.06 points with a high on the day of $227.45, a low of $210.69 for a closing price at $211.15.

On the NASDAQ today, advanced totaled 694; decliners totaled 2,354; unchanged came in at 96; new highs came in at 63 and new lows came in at 123.

Momentum stocks on the NASDAQ today: First Solar Incorporated (FSLR) shed 13.70 points with a high of $252.64 a low of $229.01 for a closing price of $236.29; SunPower Corporation (SPWR) shed 9.64 points with a high on the day of $136.35, a low of $122.20 for a closing price at $123.99; Baidu.com Incorporated (BIDU) shed 19.37 points with a high on the day of $408.88, a low of $373.57 for a closing price at $377.93; Apple Incorporated (AAPL) shed 5.83 points with a high of $196.83, a low of $187.39 for a closing price of $188.38; China Natural Resources Incorporated (CHNR) shed 0.88 points with a high of $32.44, a low of $28.00 for a closing price of $27.80; Medarex Incorporated (MEDX) shed 2.69 points with a high of $11.43, a low of $10.44 for a closing price of $10.65; Leap Wireless International Incorporated (LEAP) shed 3.37 points with a high of $42.04, a low of $37.05 for a closing price of $38.38; Ulta Salon, Cosmetics & Fragrance Incorporated (ULTA) shed 6.59 points with a high of $26.79, a low of $19.35 for a closing price of $20.91; Biogen Idec Incorporated (BIIB) gained 1.45 points with a high of $77.85, a low of $74.15 for a closing price of $75.42 and Lululemon Athletica Incorporated (LULU) gained 3.40 points with a high of $48.50, a low of $43.53 for a closing price of $47.00.

Comments from U.S. Treasury: will "Take A While" for Market Events to Play Out; Encouraged Banks Working Through SIV Problems and "Significant Excesses" Built into Mortgage Market.

Institute for Supply Management: Manufacturing Revenue to Increase 6.8% in 2008; Manufacturing Capital Expenditures seen up 0.7%; Non- Manufacturing Revenues Expected to rise 2% in 2008 and Non- Manufacturing Sector to Grow in 2008.

Information released by the Energy Information Administration: U.S. 2007 Oil Demand revised down 30,000 B/D; U.S. Oil Stocks declined by more than 5-year average in November; U.S. First Quarter 2008 Oil Supply 20.99 Million B/D an increase by 1.2% versus year ago; U.S. First Quarter 2008 Oil Stocks seen down 5.1% on the year to 315.1 Million Barrels; U.S. Gasoline, Diesel to average more than $3 per gallon in 2008; U.S. First Quarter 2008 Oil use 20.99 Million B/D which is revised by an increase of 30,000 B/D; U.S. First Quarter 2008 Oil use 20.99 Million B/D versus 20.77 Million B/D year ago; U.S. 2007 Oil Supply Revised down by 60,000 B/D; U.S. Gasoline Stocks at 201 Million Barrels which is below 5-year average; U.S. 2008 Gasoline Demand seen increasing by 1% at 9.4 Million B/D; OPEC Oil Production to rise 400,000 B/D in First Quarter 2008; First Quarter 2008 Global Oil use revised down 250,000 B/D versus Month ago; $80 U.S. Oil Means 'Historically High Prices' for Fuel; First Quarter 2008 Global Stock Draw Estimate fell 22% versus Month ago; First Quarter 2008 Global Stock Draw Seen At 1.04M B/D with a drop of 28% on the year; First Quarter 2008 China Oil Use seen rose 5.4% versus Year ago at 7.83M B/D; First Quarter 2008 China Oil Use Cut 100,000 B/D versus Month ago and First Quarter 2008 Global Stock Draw Estimate fell 22% versus Month ago.

Commodities Markets
The trend was higher across the board today for the Energy Sector: Light crude moved higher today by $2.16 to close at $90.02 a barrel; Heating Oil moved higher today by $0.05 to close at $2.52 a gallon; Natural Gas moved higher today by $0.05 to close at $7.08 per million BTU and Unleaded Gas moved higher today by $0.04 to close at $2.29 a gallon.

Metals Market ended the session mostly higher across the board today: Gold moved higher today by $3.60 to close at $817.10 a Troy ounce; Silver moved higher by $0.02 today to close at $14.87 per Troy ounce; Platinum moved higher today by $1.00 to close at $1,467.30 per Troy ounce and Copper closed at $3.09 per pound.

On the Livestock and Meat Markets, the trend was mostly lower across the board today: Lean Hogs ended the day lower by $0.33 to close at $63.03; Pork Bellies ended the day lower by $0.68 at $91.80; Live Cattle ended the day higher by $0.13 at $97.25 and Feeder Cattle ended the day lower by $0.15 at $105.98.

Other Commodities: Corn ended the day higher by $6.25 at $423.75 and Soybeans moved nicely higher today by $9.75 to end the session at $1,134.50.

Bonds were higher across the board for the fourth day in a row today: 2 year bond moved higher by 14/32 at 100 11/32; 5 year bond moved higher by 1 2/32 at 100 8/32 today; 10 year bond moved higher by 1 15/32 at 102 6/32 and the 30 year bond moved higher by 2 10/32 at 108 15/32 for the day.

The e-mini Dow ended the session today at 13,460 with a loss of 291 points on the trading session. The total Dow Exchange Volume for the day came in at 111,531 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 3,625,980; Open Interest for Futures moved lower by 84,299 points to close at 9,675,526; the Open Interest for Options moved higher by 116,194 points to close at 6,653,070 and the Cleared Only closed higher by 66 points to close at 16,290 for a total Open Interest on the day of 16,344,886 for a total Change on the day with a gain of 31,961 points.

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Millennium-Traders