PRZOOM - /newswire/ -
Somerset, PA, United States, 2006/11/28 - Written for day traders, active traders and investors. A review of the market activity for the day, economic data plus, world news.
The session today was a bit overwhelming for both day traders and investors. We experienced a serious bout of whipotile action which provided no firm guidance for either the Bulls or the Bears. The strange trading action may have been a result of economic data released such as the sale of existing homes taking its largest plunge in eight months. Manufacturing faced its worst drop in six years, per the Commerce Department. At the closing bell, the major indices managed to show a shade of green even after the dips through out the session: the DOW (Dow Jones Industrial Average) moved higher by 14.74 points to close at 12136.45; the NYSE (New York Stock Exchange) tacked on 31.05 points to end the day at 8851.64; the NASDAQ climbed higher by 6.69 points to end the day at 2412.61; the S&P 500 (Standard & Poor’s 500 Index) moved higher by 4.77 points and the RUSSELL 2000 managed a gain of 2.72 points to close the day at 774.82. 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 worlds investable market capitalization) moved higher by a mere 0.52 to close at 230.69 and the FTSE RAFI 1000 moved higher by 15.17 points to close at 5747.84.
Economic data released for the day:
ICSC-UBS Store Sales: Weekly measure of comparable store sales at major retail chains which is related to the general merchandise portion of retail sales, as reported by the International Council of Shopping Centers. This date accounts for approximately 10% of total retail sales. Stores Sales week over week change fell by 0.4% and Store Sales year over year came in at 2.6%.
Durable Goods Orders: Reflecting new orders with domestic manufactures for immediate and future delivery of factory hard goods. September Durable Goods Orders revised to an increase by 8.7% from an increase of 8.3%; October Durable Goods Orders excluding defense fell by 6.4%; October Durable Goods Orders excluding transportation fell by 1.7% and October Durable Goods Orders fell by 8.3% compared to consensus of a drop by 5.0%.
Redbook: General merchandise portion of retail sales covering only approximately 10% of total retail sales, this data is a weekly measure of sales at department stores, chain stores and discounters. Store Sales year over year change came in at 2.9%.
Consumer Confidence: A compilation by the Conference Board of a survey of five thousand consumer attitudes, across the country, on present economic conditions and expectations of future conditions. U.S. Conference Board November Consumer Confidence came in at 102.9 versus Oct 105.1; Conference Board November Present Situation Index came in at 123.6 versus Oct 125.1 and Conference Board November Expectations Index came in at 89.2 versus October 91.9.
Existing Home Sales: Previously constructed homes, co-ops and condominiums closed during the month are tallied as Existing Home sales as reported by the National Association of Realtors. Existing Home Sales account for a large share of the market compared to new home sales plus, indicates the trend in housing markets. U.S. October Existing Home Sales rose by 0.5% to 6.24M rate; U.S. October Existing Home Sales consensus of 6.12M rate; October median Existing Home Price fell by 3.5% on year to $221K and U.S. inventory of unsold U.S. homes at 7.4 months supply.
Richmond Fed: November Retail Revenues Index came in at 9 versus October reading of 27; November Services Revenues Index came in at 11 versus October reading of 5; November Manufacturing Shipments Index came in at 6 versus October reading of 7 and November Manufacturing Index came in at 7 versus October reading of 2.
Chairman of the FOMC, Ben S. Bernanke comments today: core inflation still 'uncomfortably high'; data understate housing inventory buildup; economy to grow modestly below trend near-term; especially troublesome if prices don't slow; housing stabilizing, but still a drag into 2007; inflation `somewhat better behaved of late`; labor force to cut economy's growth potential; still upbeat on long-term productivity trends and whether more tightening needed depends on data.
Former Fed Chairman Alan Greenspan spoke out today and here are his comments: Dollar value "fundamentally a protectionist issue"; not concerned on Dollar as long as economy remains flexible; worst of housing market adjustment is over; housing decline creating some impact on consumption; current account deficit already priced into Dollar; negative savings rate will change and gold prices "not a good measure of inflation".
Philadelphia Federal Reserve President Charles Plosser made following comments today: Hiring a 'bright spot,' labor demand is robust; possibility that inflation will stay too high; chance of tighter monetary policy may be needed; China will take decades to catch up to U.S. economy; current funds rate remains relatively low; economy on course for sustained expansion in 2007; economy trend growth rate now lower; expects economy to grow between 3% to 3.5% next year; expects more 'benign' headline inflation data; Fed must not let inflation expectations build; Fed will act to keep inflation in check; housing risk to outlook, spillover limited so far; lower headline inflation tied to energy; past Fed policy likely aided core inflation gains; 'predominant risks' are toward higher inflation; recent inflation data have been 'encouraging'; too high core inflation may be more enduring; unconcerned by China and U.S. treasury holding levels; unworried by market expectations of Fed rate cuts and Yuan not having big impact on U.S. inflation.
On the commodities markets, the trend was higher across the board again today: Light crude moved higher by $0.67 today to close at $60.99 a barrel; Brent Crude remained at $59.46 a barrel; Heating Oil closed higher by $0.02 at $1.78 a gallon; Natural Gas climbed higher by $0.20 to end the day at $8.56 per million BTU and Unleaded Gas closed higher by$0.03 at $1.63 a gallon.
Metals ended the session mixed across the board again today: Gold moved lower by $3.30 to close at $637.30 an ounce; Silver closed higher by $0.13 at $13.62 an ounce; Platinum gained $3.20 to close at $1,150.60 an ounce and Copper ended the day lower by $0.05 to close at $3.14 per pound.
On the Livestock and Meat markets, the trend was mixed across the board today: Lean Hogs moved lower by 1.23 to close at 64.53; Pork Bellies closed higher by 0.03 to end the day at 90.43; Live Cattle moved lower by 0.15 to end the day at 89.48 and Feeder Cattle ended the day higher by 0.95 to close at 98.58.
Other Commodities: Corn moved lower by 3.50 today to close at 384.75 and Soybeans moved lower by 1.75 to close at 686.25.
Bonds were higher across the board again today: 2 year Bond closed with a gain of 3/32 at 100 11/32; 5 year bond moved higher by 4/32 to close at 100 17/32; 10 year bond moved higher by 7/32 to end the day at 100 30/32 and the 30 year bond closed higher by 11/32 at 98 17/32.
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 6,389,135. Open Interest for Futures climbed higher by 324,521 to close at 9,409,865 and the Open Interest for Options moved higher by 140,180 to close at 5,288,825 for a total Open Interest of 14,698,690 for a total gain on the day by 464,701. The mini Dow ended the session with a gain of 16 to close at 12165. The total Dow Exchange Volume for the day came in at 154,715 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.