MTdailynews
11-13-2007, 07:19 PM
The Bulls were back in control on the session today with the major indices moving into higher territory, into the close of the trading day. The gains were a sign of relief for investors and day traders merely turned their attention to playing stocks long with the usual, short sell during the market session. Oil took a tumble today however; it’s hard to imagine that as the reason for the rebound in market direction. Possibly, the markets began to turn higher after the selloff over the past few days, due to bottom fishing for potential good deals on recently bottomed out prices.
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 319.54 points on the day to end the session at 13,307.09; the NYSE (New York Stock Exchange) posted a triple digit gain of 291.01 points to end the session at 9,860.98; the NASDAQ posted a gain of 89.52 points for a close at 2,673.65; the S&P 500 moved higher by 41.87 points to end at 1,481.05 and the RUSSELL 2000 moved higher by 3.84 points to close at 789.15. 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 3.84 points to close at 265.07 and the FTSE RAFI 1000 posted a triple digit gain of 156.59 points to close at 6,071.37.
The International Council of Shopping Centers - UBS Retail Chain Store Sales Index decreased by 0.5% for the week ended November 10 from its level at the previous week, on a seasonally adjusted, comparable-store basis. This result followed a 1.0% increase in the prior week. "Over the last week, the shift toward considerably cooler weather than last year seemed to help apparel retailers as consumers began to shop for seasonal merchandise," said Mike Niemira, chief economist at ICSC who compiles the index. "For the four-week fiscal month of November, ICSC Research expects industry comparable store sales to increase about 2.5%." On the year, chain store sales were up 2.7% in the week ended November 10 compared with a rise of 2.4% in the prior week.
Redbook U.S. Retail Sales rose modestly in the first week of November. As a result, Redbook Research's Johnson Redbook Index said Tuesday in its latest report on the national retail scene that, sales rose by 0.3% in the first week of November which came in line with the target versus the previous month of October. The report also showed seasonally adjusted sales during the week ended November which came in at 7 versus the same week a year ago which rose 2.4%. "November began positively as falling temperatures triggered demand for apparel and other seasonal goods," the report said.
Federal Reserve Member Randall S. Kroszner comments released today: Market events show importance of bank risk management.
Regulatory Blueprint and the Rate of Innovation
After reflecting on these issues and hearing from investors, market participants, and public policy experts at a Treasury-hosted conference on U.S. capital markets competitiveness last spring, Secretary Paulson asked the Treasury Department to undertake a comprehensive review of the regulatory structure surrounding financial institutions and develop recommendations to modernize the U.S. regulatory system. The goal of this regulatory blueprint is to improve the effectiveness of the regulatory structure relating to financial institutions, to find the "right regulatory balance…marry[ing] high standards of integrity and accountability with a strong foundation for innovation, growth, and competitiveness." The Treasury Department will approach its review of the current financial services regulatory structure holistically, taking into account all financial services industry participants including insurance, securities, and futures firms, in addition to depository institutions, upon which most past Treasury Department studies have focused. One of the great challenges in undertaking this project will be to find a regulatory system ensuring consumer and investor protection and market stability and adaptive to the accelerating rate of innovation and complexity in the financial services industry. Having spent 30 years in the financial services industry prior to my appointment as Under Secretary for Domestic Finance, I witnessed considerable innovation in the capital markets. But, it was really my last few years in the financial services industry that this change accelerated at a nearly mesmerizing pace. When I began my career in the securities industry, technology was an infrequently-discussed skill or asset, thought of only as a processing tool. The capital markets were characterized by a nationalistic perspective and innovative vehicles, such as derivatives, were just appearing. Compare that with today when the skilled technologist is a key actor in the industry, markets are global - operating 24/7 without boundaries and innovation is a skill required for success. Technological developments have led to innovations in financial products and forever changed information flow. As a result, some have suggested the world has flattened; it has, at the very least, become more compressed. And, this compression will only increase with the passage of time. This past summer, I heard current AEI fellow and accomplished public servant, Newt Gingrich, discuss this rate of change in terms of science. "In scientific knowledge and advancement, we are experiencing today a rate of change that is four times greater than what we did during the last 25 years--making the scale of change we will experience in the 25 year period 2006-2031 at least equivalent to what we experienced in the 100 year period 1906-2006." I would posit that the financial services industry will experience similar accelerating rates of change. In my final five years in the financial services industry I saw as much innovation as I saw in my first 25 years. At the same time, financial innovation and complexity, propelled forward by globalization, will increasingly expose existing fissures and gaps as well as obstructions and inefficiencies in our regulatory system. What does this mean for policymakers? What does this mean for the Treasury Department's blueprint? We must work to find a regulatory system that fills these fissures and gaps, removes these obstructions, and nimbly allows for adaptation to innovation and complexity. To inform our work on the regulatory blueprint, the Treasury Department published a Federal Register notice last month seeking public comment on a number of topics impacting the regulation of financial institutions, including overlapping state and federal regulation, consumer and investor protection, and the strengths and weaknesses of having multiple regulators and multiple federal charters. The Federal Register notice also includes a section of general questions to enable consideration from a broad and integrated perspective, including questions regarding functional regulation, overall risk to the financial system, principles-based and rules-based regulation, and macro-level regulatory structure models. These matters should be very familiar to many of you in this audience. The Report of the Financial Services Roundtable's Blue Ribbon Commission on Competitiveness, the subject of the panels that have preceded and will follow my remarks, addresses several of these issues. Let me commend the Financial Services Roundtable and the Co-Chairs of the Roundtable's Commission on Enhancing Competitiveness, Richard M. Kovacevich and James Dimon, for their important work in this area, which will inform the debate as the Treasury Department moves forward. In past speeches, the Treasury Department has highlighted several issues that the Roundtable's Report considers, including the need for finding an appropriate balance between rules-based and principles-based regulation, enhancing the dialogue between the regulator and the regulated, and a continual and comprehensive regulatory cost-effectiveness analysis. The Treasury Department recognizes the urgency of updating U.S. regulatory structure. Although the regulatory blueprint initiative was contemplated well before the recent market events, the regulatory gaps and fissures these events revealed underscore its necessity. Unlike many of the regulatory studies the Treasury Department has undertaken in the past, which have been mandated by Congress, Secretary Paulson initiated this project. We fully intend to adhere to our friend Peter Wallison's advice to "be bold" when making our final recommendations. The reports and analysis of private sector organizations, such as the Financial Services Roundtable, reaffirm this sense of urgency. In the past, the United States has served as a model to other economies in its ability to achieve regulation effectively protecting consumers and investors, ensuring market stability, and fostering innovation. Federal policymakers should be obliged to work to update this model so that the United States can continue to lead a regulatory race to the top. Conclusion I mentioned at the beginning of my remarks that Secretary Paulson chose the setting of New York as his first speech as Treasury Secretary because of that city's being the financial capital of the world, home to several globally-dominant financial institutions. The Secretary also suggested another reason: "I also chose to come to New York because I know from experience that the solutions to our nation's challenges are not always found in Washington." I am delivering these remarks in Washington, populated with federal policymakers and departments and agencies, because I know from experience that the shared responsibility between the private sector and public sector of defining and implementing the optimal solutions regarding regulatory structure lies here in the city.
Commodities Markets
The trend was lower across the board today for the Energy Sector: Light crude moved sharply lower today by $4.17 to close at $90.45 a barrel; Heating Oil closed lower by $0.08 today at $2.50 a gallon; Natural Gas moved lower today by $0.05 to close at $8.28 per million BTU and Unleaded Gas moved lower today by $0.10 to close at $2.32 a gallon.
Metals Market ended the session mostly lower across the board today: Gold moved lower today by $8.70 to close at $799.00 an ounce; Silver moved lower by $0.15 to close at $14.61 per ounce; Platinum moved sharply higher today by $21.50 to close at $1,412.30 an ounce and Copper closed with no change at $3.11 per pound.
On the Livestock and Meat Markets, the trend was higher across the board today: Lean Hogs ended the day higher by $1.50 to close at $54.05; Pork Bellies ended the day higher by $2.75 at $89.93; Live Cattle ended the day higher by $0.43 at $98.38 and Feeder Cattle ended the day higher by $0.28 at $109.25.
Other Commodities: Corn moved lower today by $4.25 to close at $374.25 and Soybeans moved higher today by $10.00 to end the session at $1,055.50.
Bonds were mostly lower across the board today: 2 year bond moved lower by 7/32 to close at 100 4/32; 5 year bond moved lower by 12/32 to close at 100 4/32 today; 10 year bond moved lower by 12/32 at 99 27/32 and the 30 year bond closed higher by 28/32 at 106 6/32 for the day.
The e-mini Dow ended the session today at 13,327 with a gain of 337 points on the trading session. The total Dow Exchange Volume for the day came in at 231,931 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 977,974; Open Interest for Futures moved lower by 59,073 points to close at 10,192,553; the Open Interest for Options moved lower by 6,245 points to close at 9,257,888 and the Cleared Only moved higher by 297 points to close at 14,260 for a total Open Interest on the day of 19,464,701 for a total Change on the day with a loss of 65,021 points.
On the NYSE today, advancers came in at 2,606; decliners totaled 699; unchanged came in at 74; new highs came in at 33 and new lows came in at 262. Active trading stocks on the Big Board today: FTSE/Xinhua China (FXI) pounded higher on the trading session to post a gain of 12.61 points with a high on the day of $184.19, a low of $175.00 with a final trading price of $182.11; Uniao de Bancos Brasileiros (UBB) bolted higher on the day with a nice gain of 13.24 points with a high on the day of $151.93, a low of $142.02 for a closing price at the close of $150.58; CME Group (CME) pushed higher on the session for a gain of 14.70 points with a high on the day of $647.50, a low of $630.00 for a closing price at the bell of $647.50; Petroleo Brasileiro (PBR) tacked on 11.18% for a gain of 10.61 points with a high on the session of $105.52, a low of $99.73 for a closing price at $105.51 and MasterCard Incorporated (MA) posted a gain of 6.93 points with a high on the day of $192.23, a low of $183.42 for a closing price at $188.81.
On the NASDAQ today, advanced totaled 2,126; decliners totaled 895; unchanged came in at 118; new highs came in at 39 and new lows came in at 179. Active trades for the day consisted of: Bob Evans Farms Incorporated (BOBE) moved nicely higher on the trading session with a gain of 3.90 points with a high on the session of $30.60, a low of $27.85 for a final trading price of $29.60; Google Incorporated (GOOG) surged higher on the day to post a gain of 28.48 points with a high on the day of $660.92, a low of $642.00 with a closing price at $660.55; Baidu.com (BIDU) soared higher on the session to post a strong gain of 39.95 points with a high on the trading session of $341.50, a low of $312.40 with a closing price at $341.45 and BIDZ.com (BIDZ) moved nicely higher on the session with a gain of 3.20 points for a climb higher by 21.92% with a high on the day of $18.36, a low of $14.75 with a closing price of $17.80.
Thanks for reading
Millennium-Traders.Com (http://www.millennium-traders.com)
To view additional Daily Market Commentary's Click Here (http://www.millennium-traders.com/news/newscommentary.aspx)
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 319.54 points on the day to end the session at 13,307.09; the NYSE (New York Stock Exchange) posted a triple digit gain of 291.01 points to end the session at 9,860.98; the NASDAQ posted a gain of 89.52 points for a close at 2,673.65; the S&P 500 moved higher by 41.87 points to end at 1,481.05 and the RUSSELL 2000 moved higher by 3.84 points to close at 789.15. 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 3.84 points to close at 265.07 and the FTSE RAFI 1000 posted a triple digit gain of 156.59 points to close at 6,071.37.
The International Council of Shopping Centers - UBS Retail Chain Store Sales Index decreased by 0.5% for the week ended November 10 from its level at the previous week, on a seasonally adjusted, comparable-store basis. This result followed a 1.0% increase in the prior week. "Over the last week, the shift toward considerably cooler weather than last year seemed to help apparel retailers as consumers began to shop for seasonal merchandise," said Mike Niemira, chief economist at ICSC who compiles the index. "For the four-week fiscal month of November, ICSC Research expects industry comparable store sales to increase about 2.5%." On the year, chain store sales were up 2.7% in the week ended November 10 compared with a rise of 2.4% in the prior week.
Redbook U.S. Retail Sales rose modestly in the first week of November. As a result, Redbook Research's Johnson Redbook Index said Tuesday in its latest report on the national retail scene that, sales rose by 0.3% in the first week of November which came in line with the target versus the previous month of October. The report also showed seasonally adjusted sales during the week ended November which came in at 7 versus the same week a year ago which rose 2.4%. "November began positively as falling temperatures triggered demand for apparel and other seasonal goods," the report said.
Federal Reserve Member Randall S. Kroszner comments released today: Market events show importance of bank risk management.
Regulatory Blueprint and the Rate of Innovation
After reflecting on these issues and hearing from investors, market participants, and public policy experts at a Treasury-hosted conference on U.S. capital markets competitiveness last spring, Secretary Paulson asked the Treasury Department to undertake a comprehensive review of the regulatory structure surrounding financial institutions and develop recommendations to modernize the U.S. regulatory system. The goal of this regulatory blueprint is to improve the effectiveness of the regulatory structure relating to financial institutions, to find the "right regulatory balance…marry[ing] high standards of integrity and accountability with a strong foundation for innovation, growth, and competitiveness." The Treasury Department will approach its review of the current financial services regulatory structure holistically, taking into account all financial services industry participants including insurance, securities, and futures firms, in addition to depository institutions, upon which most past Treasury Department studies have focused. One of the great challenges in undertaking this project will be to find a regulatory system ensuring consumer and investor protection and market stability and adaptive to the accelerating rate of innovation and complexity in the financial services industry. Having spent 30 years in the financial services industry prior to my appointment as Under Secretary for Domestic Finance, I witnessed considerable innovation in the capital markets. But, it was really my last few years in the financial services industry that this change accelerated at a nearly mesmerizing pace. When I began my career in the securities industry, technology was an infrequently-discussed skill or asset, thought of only as a processing tool. The capital markets were characterized by a nationalistic perspective and innovative vehicles, such as derivatives, were just appearing. Compare that with today when the skilled technologist is a key actor in the industry, markets are global - operating 24/7 without boundaries and innovation is a skill required for success. Technological developments have led to innovations in financial products and forever changed information flow. As a result, some have suggested the world has flattened; it has, at the very least, become more compressed. And, this compression will only increase with the passage of time. This past summer, I heard current AEI fellow and accomplished public servant, Newt Gingrich, discuss this rate of change in terms of science. "In scientific knowledge and advancement, we are experiencing today a rate of change that is four times greater than what we did during the last 25 years--making the scale of change we will experience in the 25 year period 2006-2031 at least equivalent to what we experienced in the 100 year period 1906-2006." I would posit that the financial services industry will experience similar accelerating rates of change. In my final five years in the financial services industry I saw as much innovation as I saw in my first 25 years. At the same time, financial innovation and complexity, propelled forward by globalization, will increasingly expose existing fissures and gaps as well as obstructions and inefficiencies in our regulatory system. What does this mean for policymakers? What does this mean for the Treasury Department's blueprint? We must work to find a regulatory system that fills these fissures and gaps, removes these obstructions, and nimbly allows for adaptation to innovation and complexity. To inform our work on the regulatory blueprint, the Treasury Department published a Federal Register notice last month seeking public comment on a number of topics impacting the regulation of financial institutions, including overlapping state and federal regulation, consumer and investor protection, and the strengths and weaknesses of having multiple regulators and multiple federal charters. The Federal Register notice also includes a section of general questions to enable consideration from a broad and integrated perspective, including questions regarding functional regulation, overall risk to the financial system, principles-based and rules-based regulation, and macro-level regulatory structure models. These matters should be very familiar to many of you in this audience. The Report of the Financial Services Roundtable's Blue Ribbon Commission on Competitiveness, the subject of the panels that have preceded and will follow my remarks, addresses several of these issues. Let me commend the Financial Services Roundtable and the Co-Chairs of the Roundtable's Commission on Enhancing Competitiveness, Richard M. Kovacevich and James Dimon, for their important work in this area, which will inform the debate as the Treasury Department moves forward. In past speeches, the Treasury Department has highlighted several issues that the Roundtable's Report considers, including the need for finding an appropriate balance between rules-based and principles-based regulation, enhancing the dialogue between the regulator and the regulated, and a continual and comprehensive regulatory cost-effectiveness analysis. The Treasury Department recognizes the urgency of updating U.S. regulatory structure. Although the regulatory blueprint initiative was contemplated well before the recent market events, the regulatory gaps and fissures these events revealed underscore its necessity. Unlike many of the regulatory studies the Treasury Department has undertaken in the past, which have been mandated by Congress, Secretary Paulson initiated this project. We fully intend to adhere to our friend Peter Wallison's advice to "be bold" when making our final recommendations. The reports and analysis of private sector organizations, such as the Financial Services Roundtable, reaffirm this sense of urgency. In the past, the United States has served as a model to other economies in its ability to achieve regulation effectively protecting consumers and investors, ensuring market stability, and fostering innovation. Federal policymakers should be obliged to work to update this model so that the United States can continue to lead a regulatory race to the top. Conclusion I mentioned at the beginning of my remarks that Secretary Paulson chose the setting of New York as his first speech as Treasury Secretary because of that city's being the financial capital of the world, home to several globally-dominant financial institutions. The Secretary also suggested another reason: "I also chose to come to New York because I know from experience that the solutions to our nation's challenges are not always found in Washington." I am delivering these remarks in Washington, populated with federal policymakers and departments and agencies, because I know from experience that the shared responsibility between the private sector and public sector of defining and implementing the optimal solutions regarding regulatory structure lies here in the city.
Commodities Markets
The trend was lower across the board today for the Energy Sector: Light crude moved sharply lower today by $4.17 to close at $90.45 a barrel; Heating Oil closed lower by $0.08 today at $2.50 a gallon; Natural Gas moved lower today by $0.05 to close at $8.28 per million BTU and Unleaded Gas moved lower today by $0.10 to close at $2.32 a gallon.
Metals Market ended the session mostly lower across the board today: Gold moved lower today by $8.70 to close at $799.00 an ounce; Silver moved lower by $0.15 to close at $14.61 per ounce; Platinum moved sharply higher today by $21.50 to close at $1,412.30 an ounce and Copper closed with no change at $3.11 per pound.
On the Livestock and Meat Markets, the trend was higher across the board today: Lean Hogs ended the day higher by $1.50 to close at $54.05; Pork Bellies ended the day higher by $2.75 at $89.93; Live Cattle ended the day higher by $0.43 at $98.38 and Feeder Cattle ended the day higher by $0.28 at $109.25.
Other Commodities: Corn moved lower today by $4.25 to close at $374.25 and Soybeans moved higher today by $10.00 to end the session at $1,055.50.
Bonds were mostly lower across the board today: 2 year bond moved lower by 7/32 to close at 100 4/32; 5 year bond moved lower by 12/32 to close at 100 4/32 today; 10 year bond moved lower by 12/32 at 99 27/32 and the 30 year bond closed higher by 28/32 at 106 6/32 for the day.
The e-mini Dow ended the session today at 13,327 with a gain of 337 points on the trading session. The total Dow Exchange Volume for the day came in at 231,931 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 977,974; Open Interest for Futures moved lower by 59,073 points to close at 10,192,553; the Open Interest for Options moved lower by 6,245 points to close at 9,257,888 and the Cleared Only moved higher by 297 points to close at 14,260 for a total Open Interest on the day of 19,464,701 for a total Change on the day with a loss of 65,021 points.
On the NYSE today, advancers came in at 2,606; decliners totaled 699; unchanged came in at 74; new highs came in at 33 and new lows came in at 262. Active trading stocks on the Big Board today: FTSE/Xinhua China (FXI) pounded higher on the trading session to post a gain of 12.61 points with a high on the day of $184.19, a low of $175.00 with a final trading price of $182.11; Uniao de Bancos Brasileiros (UBB) bolted higher on the day with a nice gain of 13.24 points with a high on the day of $151.93, a low of $142.02 for a closing price at the close of $150.58; CME Group (CME) pushed higher on the session for a gain of 14.70 points with a high on the day of $647.50, a low of $630.00 for a closing price at the bell of $647.50; Petroleo Brasileiro (PBR) tacked on 11.18% for a gain of 10.61 points with a high on the session of $105.52, a low of $99.73 for a closing price at $105.51 and MasterCard Incorporated (MA) posted a gain of 6.93 points with a high on the day of $192.23, a low of $183.42 for a closing price at $188.81.
On the NASDAQ today, advanced totaled 2,126; decliners totaled 895; unchanged came in at 118; new highs came in at 39 and new lows came in at 179. Active trades for the day consisted of: Bob Evans Farms Incorporated (BOBE) moved nicely higher on the trading session with a gain of 3.90 points with a high on the session of $30.60, a low of $27.85 for a final trading price of $29.60; Google Incorporated (GOOG) surged higher on the day to post a gain of 28.48 points with a high on the day of $660.92, a low of $642.00 with a closing price at $660.55; Baidu.com (BIDU) soared higher on the session to post a strong gain of 39.95 points with a high on the trading session of $341.50, a low of $312.40 with a closing price at $341.45 and BIDZ.com (BIDZ) moved nicely higher on the session with a gain of 3.20 points for a climb higher by 21.92% with a high on the day of $18.36, a low of $14.75 with a closing price of $17.80.
Thanks for reading
Millennium-Traders.Com (http://www.millennium-traders.com)
To view additional Daily Market Commentary's Click Here (http://www.millennium-traders.com/news/newscommentary.aspx)