MTdailynews
11-14-2007, 06:35 PM
The trading session posed as a constant struggle between the Bulls and the Bears, all day long. A very volatile session amidst moderate volume created a rather dismal trading session for the active day trader. During the late afternoon session, the markets moved strongly lower where they closed at or near their lows for the day, at the closing bell. Crude oil moved higher once again today, to close over $94 a barrel and expectations are for gas to reach $3.26 a gallon, in the next two weeks. Travelers preparing for the upcoming Thanksgiving Day holiday next week may face gloom at the next fill up at the gas pump. Across the board, tech stocks took it on the chin today amidst the strong selloff.
At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a loss of 83.16 points on the day to end the session at 13,223.93; the NYSE (New York Stock Exchange) posted a loss of 51.83 points to end the session at 9,809.15; the NASDAQ posted a loss of 29.33 points for a close at 2,644.32; the S&P 500 moved lower by 10.47 points to end at 1,470.58 and the RUSSELL 2000 moved lower by 6.68 points to close at 782.47. 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 0.94 points to close at 266.98 and the FTSE RAFI 1000 posted a loss of 45.33 points to close at 6,026.04.
U.S. October Producer Prices rose 0.1% versus consensus of an increase by 0.2%; U.S. October PPI Excluding-Food & Energy remain unchanged versus consensus of an increase by 0.2%; U.S. October PPI Intermediate Goods rose 0.1%; U.S. October Core PPI Intermediate Goods rose 0.1%; U.S. October PPI Crude Goods rose 2.4%; U.S. October Core PPI Crude Goods rose 1.4%; U.S. October Retail & Food Sales Excluding-Autos rose 0.2%; U.S. October Retail & Food Sales rose 0.2% versus consensus of an increase by 0.2%; U.S. October Passenger Car Prices rose 1.0%; U.S. October PPI Energy Prices fell 0.8%; U.S. September Retail & Food Sales was revised to an increase by 0.7% from an increase by 0.6% and U.S. September PPI was unrevised at an increase by 1.1%.
Federal Reserve Chairman, Ben S. Bernanke comments released today: inflation target `may be less well suited` to Fed; Fed to increase frequency of economic forecasts; to extend forecast horizon to 3 years from 2 years; to publish GDP, inflation forecasts quarterly; first set of forecasts to be released next week; inflation forecasts include headline, Core PCE; forecasts include 'narrative' explaining Fed views; new Fed strategy doesn't include inflation target; aging Of U.S. population poses big fiscal challenge and 'always open' to further transparency steps.
President of Federal Reserve Bank of Dallas, Richard W. Fisher comments released today: Fed in 'perpetual' effort to check inflation; economy weakened, but not derailed by housing woes; expects economy to 'expand at a sustainable pace'; food, energy gains cast doubt on further inflation fall; says Fed 'remains ready to act if needed' on rates; notes 'sense of discomfort' on headline inflation; sees 'mitigation' in inflation, price expectations; investors 'coming home from la la land'; markets moving to price by reason, not 'fantasy' and markets still tender, but are recovering.
Energy Information Administration Chief comments today: National average gas prices may hit $3.26/gallon in next 2 weeks; high oil price demand erosion minimal in U.S.; OPEC still needs to up crude output 400,000 B/D and new IEA growth numbers in line with EIA figures.
Deputy Assistant Secretary Valerie Abend Before the U.S. House of Representative Judiciary Committee Washington - Mr. Chairman, Ranking Member Smith, and Members of the Committee, it is my privilege to represent the Treasury Department today to discuss the Unlawful Internet Gambling Enforcement Act of 2006 (the "Act").
Proposed Rulemaking Process
The Act is designed to require the various payment systems to stop the flow of funds from gamblers to businesses providing unlawful Internet gambling services. To accomplish this, the Act requires the Treasury Department and the Federal Reserve Board, in consultation with the Justice Department, to jointly prescribe regulations requiring participants in designated payment systems to establish policies and procedures that are reasonably designed to prevent or prohibit such funding flows. On October 4, 2007 the Treasury Department and the Federal Reserve Board published a Notice of Proposed Rulemaking seeking public comment on the proposed rule. Our goal when writing this proposed rule was to faithfully adhere to the mandates set forth by Congress in the Act. I would like to take a moment to discuss the process the Treasury Department followed to develop this proposed rule. As you are aware, joint rule making requires extensive coordination. The Treasury and the Federal Reserve Board began this proposed rulemaking first by identifying individuals within our offices that have experience with rulemaking and payment systems' operations. At the Federal Reserve, this included individuals responsible for FedWire, one of the largest payment systems in the country. We have learned a lot since the passage of the statute by working with both the Federal Reserve Board and the Justice Department. Payment systems are complex and vary greatly. They are built to meet the needs of the particular participants and while some are modernized, others are paper-based systems. The complexity and differences necessitate different approaches to meet the requirements of the statute effectively. We expect to learn more from the comments that we will receive during the comment period, which runs through December 12, 2007.
Fulfilling the Act's Mandates
As I mentioned earlier, our overarching principle has been that the proposed rule should faithfully adhere to the Congressional mandates in the Act. First, the Act requires us to designate payment systems that could be used in connection with unlawful Internet gambling. The proposed rule designates the following 5 payment systems: Automated Clearing House Systems; Card Systems (e.g., credit cards, as well as stored value cards); Check Collection Systems; Money Transmitting Businesses; Wire Transfer Systems (i.e., CHIPS).
Second, the Act requires us to provide exemptions if the Treasury Department and the Federal Reserve jointly determine that it is not reasonably practical for participants in designated payment systems to prevent or prohibit unlawful Internet gambling transactions. No payment system is exempted completely from this proposed regulation. However, the proposed rule does partially exempt certain participants within some of the designated payment systems from having to establish policies and procedures. The Treasury and the Federal Reserve Board determined that this was the most appropriate way to implement the Act consistent with Congressional intent. Under the proposed rule, the gambling business's bank, or, if abroad, the first U.S. bank dealing with that bank, is not exempted because it could, through reasonable due diligence, ascertain the nature of its customer's business and ensure that the customer relationship is not used to receive unlawful Internet gambling transactions. Let me emphasize that there are requirements under the proposed rule for the bank in the United States that has a corresponding relationship with a gambling business's bank. The proposed exemptions generally extend to the gambler's bank. For example, in the case of checks, the check collection system is highly automated and it is not reasonably practical for the gambler's bank to know whether a check presented to it for payment involves unlawful Internet gambling. However, the gambling business's bank, or, if abroad, the first U.S. bank to receive the check under the proposed rule would need to have policies and procedures to block the processing of the check. Third, the Act requires us to provide nonexclusive examples of policies and procedures, which would be deemed "reasonably designed" to prevent or prohibit unlawful Internet gambling transactions. As a result, this proposed rule contains a "safe harbor" provision, as mandated by the Act that includes for each designated payment system nonexclusive examples of reasonably designed policies and procedures. Fourth, the Act requires us to ensure that certain transactions excluded from the definition of the term "unlawful Internet gambling" are not prevented or prohibited by the proposed rule. For example, the UIGEA states that "the term `unlawful internet gambling' shall not include any activity that is allowed under the Interstate Horseracing Act of 1978 (IHA). This provision was immediately followed by the Sense of Congress provision that states that the UIGEA was not intended to change the relationship between the IHA and other federal statutes. The IHA did not amend or repeal existing criminal statutes. Since the proposed rule only covers "unlawful internet gambling", it in no way requires participants to prevent or prohibit transactions that are lawful under the Interstate Horseracing Act and all other applicable federal statutes.
Conclusion
Through our efforts to date, we are making progress in reaching our objective of promulgating a final rule that strictly adheres to the statute. We expect to receive a large number of comments as we approach the close of the comment period. We have an open mind on all aspects of the proposed rule. We will be providing analysis of the comments received, and reasons for any decisions that will be made, as we publish the final rule. Let me assure you that we are committed to giving fair consideration to all relevant comments as we work toward promulgating a final rule. We have much work to do, but we understand the task ahead and what we will need to do to reach our objective. Thank you, I would be happy to answer your questions.
Commodities Markets
The trend was higher across the board today for the Energy Sector: Light crude moved sharply higher today by $2.92 to close at $94.09 a barrel; Heating Oil closed higher by $0.07 today at $2.57 a gallon; Natural Gas moved higher today by $0.06 to close at $8.38 per million BTU and Unleaded Gas moved higher today by $0.05 to close at $2.37 a gallon.
Metals Market ended the session higher across the board today: Gold moved sharply higher today by $15.70 to close at $814.70 an ounce; Silver moved higher by $0.46 to close at $15.07 per ounce; Platinum moved sharply higher again today by $33.80 to close at $1,446.10 an ounce and Copper moved higher by $0.19 to close at $3.11 per pound.
On the Livestock and Meat Markets, the trend was lower across the board today: Lean Hogs ended the day lower by $0.45 to close at $60.65; Pork Bellies ended the day lower by $1.50 at $88.43; Live Cattle ended the day lower by $0.33 at $98.05 and Feeder Cattle ended the day lower by $0.28 at $108.98.
Other Commodities: Corn moved nicely higher today by $8.00 to close at $399.75 and Soybeans moved sharply higher today by $23.25 to end the session at $1,080.00.
Bonds were mixed across the board today: 2 year bond moved higher by 1/32 to close at 100 5/32; 5 year bond moved lower by 1/32 to close at 100 3/32 today; 10 year bond moved lower by 1/32 at 99 26/32 and the 30 year bond closed higher by 4/32 at 106 9/32 for the day.
The e-mini Dow ended the session today at 13,306 with a loss of 24 points on the trading session. The total Dow Exchange Volume for the day came in at 198,782 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 3,975,851; Open Interest for Futures moved lower by 11,270 points to close at 10,181,283; the Open Interest for Options moved higher by 121,621 points to close at 9,379,503 and the Cleared Only moved lower by 156 points to close at 14,104 for a total Open Interest on the day of 19,574,890 for a total Change on the day with a gain of 110,195 points.
On the NYSE today, advancers came in at 1,286; decliners totaled 2,010; unchanged came in at 80; new highs came in at 43 and new lows came in at 188. Active trading stocks on the Big Board today: OM Group Incorporated (OMG) posted a favorable gain on the session by 5.63 points to move higher by 12.35% with a high on the trading session of $51.85, a low of $46.04 for a final trading price at the bell of $51.23; FTSE/Xinhua China (FXI) provided nice trading action for the active day trader with a gain of 5.57 points, with a high on the session of $192.50, a low of $182.11 for a final trading price at $187.68; Excel Maritime Carriers Limited (EXM) moved sharply lower on the session to post a loss of 5.75 points with a high on the day of $51.26, a low of $45.30 for a closing price at $46.84; Bear Stearns Company (BSC) was quite active on the session with a high on the day of $111.01, a low of $101.84 with a gain of 2.40 points for a closing price at $103.27 and Allegheny Technologies Incorporated (ATI) pounced higher on the day with a gain of 5.11 points with a high on the session of $97.11, a low of $91.12 for an end of day price of $96.02.
On the NASDAQ today, advanced totaled 1,197; decliners totaled 1,807; unchanged came in at 117; new highs came in at 42 and new lows came in at 143. Active trades for the day consisted of: Apple Incorporated (AAPL) moved lower on the session with a loss of 3.85 points with a high on the day of $177.57, a low of $163.74 for a final trading price of $166.11; Canadian Solar Incorporated (CSIQ) posted a favorable gain on the session of 3.29 points to tack on 29.27% with a high on the day of $17.10, a low of $13.05 for a close at $14.53; Daktronics Incorporated (DAKT) moved sharply lower on the session with a loss of 8.68 points to shed 30.28% with a final trading price at $19.89; MedCath Corporation (MDTH) took a hard hit on the session to post a loss of 4.60 points to shed 17.36% to end the session at $21.90 and Google Incorporated (GOOG) tumbled lower on the session with a loss of 18.87 points with a high on the day of $675.49, a low of $636.27 for a closing price at $641.68.
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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 loss of 83.16 points on the day to end the session at 13,223.93; the NYSE (New York Stock Exchange) posted a loss of 51.83 points to end the session at 9,809.15; the NASDAQ posted a loss of 29.33 points for a close at 2,644.32; the S&P 500 moved lower by 10.47 points to end at 1,470.58 and the RUSSELL 2000 moved lower by 6.68 points to close at 782.47. 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 0.94 points to close at 266.98 and the FTSE RAFI 1000 posted a loss of 45.33 points to close at 6,026.04.
U.S. October Producer Prices rose 0.1% versus consensus of an increase by 0.2%; U.S. October PPI Excluding-Food & Energy remain unchanged versus consensus of an increase by 0.2%; U.S. October PPI Intermediate Goods rose 0.1%; U.S. October Core PPI Intermediate Goods rose 0.1%; U.S. October PPI Crude Goods rose 2.4%; U.S. October Core PPI Crude Goods rose 1.4%; U.S. October Retail & Food Sales Excluding-Autos rose 0.2%; U.S. October Retail & Food Sales rose 0.2% versus consensus of an increase by 0.2%; U.S. October Passenger Car Prices rose 1.0%; U.S. October PPI Energy Prices fell 0.8%; U.S. September Retail & Food Sales was revised to an increase by 0.7% from an increase by 0.6% and U.S. September PPI was unrevised at an increase by 1.1%.
Federal Reserve Chairman, Ben S. Bernanke comments released today: inflation target `may be less well suited` to Fed; Fed to increase frequency of economic forecasts; to extend forecast horizon to 3 years from 2 years; to publish GDP, inflation forecasts quarterly; first set of forecasts to be released next week; inflation forecasts include headline, Core PCE; forecasts include 'narrative' explaining Fed views; new Fed strategy doesn't include inflation target; aging Of U.S. population poses big fiscal challenge and 'always open' to further transparency steps.
President of Federal Reserve Bank of Dallas, Richard W. Fisher comments released today: Fed in 'perpetual' effort to check inflation; economy weakened, but not derailed by housing woes; expects economy to 'expand at a sustainable pace'; food, energy gains cast doubt on further inflation fall; says Fed 'remains ready to act if needed' on rates; notes 'sense of discomfort' on headline inflation; sees 'mitigation' in inflation, price expectations; investors 'coming home from la la land'; markets moving to price by reason, not 'fantasy' and markets still tender, but are recovering.
Energy Information Administration Chief comments today: National average gas prices may hit $3.26/gallon in next 2 weeks; high oil price demand erosion minimal in U.S.; OPEC still needs to up crude output 400,000 B/D and new IEA growth numbers in line with EIA figures.
Deputy Assistant Secretary Valerie Abend Before the U.S. House of Representative Judiciary Committee Washington - Mr. Chairman, Ranking Member Smith, and Members of the Committee, it is my privilege to represent the Treasury Department today to discuss the Unlawful Internet Gambling Enforcement Act of 2006 (the "Act").
Proposed Rulemaking Process
The Act is designed to require the various payment systems to stop the flow of funds from gamblers to businesses providing unlawful Internet gambling services. To accomplish this, the Act requires the Treasury Department and the Federal Reserve Board, in consultation with the Justice Department, to jointly prescribe regulations requiring participants in designated payment systems to establish policies and procedures that are reasonably designed to prevent or prohibit such funding flows. On October 4, 2007 the Treasury Department and the Federal Reserve Board published a Notice of Proposed Rulemaking seeking public comment on the proposed rule. Our goal when writing this proposed rule was to faithfully adhere to the mandates set forth by Congress in the Act. I would like to take a moment to discuss the process the Treasury Department followed to develop this proposed rule. As you are aware, joint rule making requires extensive coordination. The Treasury and the Federal Reserve Board began this proposed rulemaking first by identifying individuals within our offices that have experience with rulemaking and payment systems' operations. At the Federal Reserve, this included individuals responsible for FedWire, one of the largest payment systems in the country. We have learned a lot since the passage of the statute by working with both the Federal Reserve Board and the Justice Department. Payment systems are complex and vary greatly. They are built to meet the needs of the particular participants and while some are modernized, others are paper-based systems. The complexity and differences necessitate different approaches to meet the requirements of the statute effectively. We expect to learn more from the comments that we will receive during the comment period, which runs through December 12, 2007.
Fulfilling the Act's Mandates
As I mentioned earlier, our overarching principle has been that the proposed rule should faithfully adhere to the Congressional mandates in the Act. First, the Act requires us to designate payment systems that could be used in connection with unlawful Internet gambling. The proposed rule designates the following 5 payment systems: Automated Clearing House Systems; Card Systems (e.g., credit cards, as well as stored value cards); Check Collection Systems; Money Transmitting Businesses; Wire Transfer Systems (i.e., CHIPS).
Second, the Act requires us to provide exemptions if the Treasury Department and the Federal Reserve jointly determine that it is not reasonably practical for participants in designated payment systems to prevent or prohibit unlawful Internet gambling transactions. No payment system is exempted completely from this proposed regulation. However, the proposed rule does partially exempt certain participants within some of the designated payment systems from having to establish policies and procedures. The Treasury and the Federal Reserve Board determined that this was the most appropriate way to implement the Act consistent with Congressional intent. Under the proposed rule, the gambling business's bank, or, if abroad, the first U.S. bank dealing with that bank, is not exempted because it could, through reasonable due diligence, ascertain the nature of its customer's business and ensure that the customer relationship is not used to receive unlawful Internet gambling transactions. Let me emphasize that there are requirements under the proposed rule for the bank in the United States that has a corresponding relationship with a gambling business's bank. The proposed exemptions generally extend to the gambler's bank. For example, in the case of checks, the check collection system is highly automated and it is not reasonably practical for the gambler's bank to know whether a check presented to it for payment involves unlawful Internet gambling. However, the gambling business's bank, or, if abroad, the first U.S. bank to receive the check under the proposed rule would need to have policies and procedures to block the processing of the check. Third, the Act requires us to provide nonexclusive examples of policies and procedures, which would be deemed "reasonably designed" to prevent or prohibit unlawful Internet gambling transactions. As a result, this proposed rule contains a "safe harbor" provision, as mandated by the Act that includes for each designated payment system nonexclusive examples of reasonably designed policies and procedures. Fourth, the Act requires us to ensure that certain transactions excluded from the definition of the term "unlawful Internet gambling" are not prevented or prohibited by the proposed rule. For example, the UIGEA states that "the term `unlawful internet gambling' shall not include any activity that is allowed under the Interstate Horseracing Act of 1978 (IHA). This provision was immediately followed by the Sense of Congress provision that states that the UIGEA was not intended to change the relationship between the IHA and other federal statutes. The IHA did not amend or repeal existing criminal statutes. Since the proposed rule only covers "unlawful internet gambling", it in no way requires participants to prevent or prohibit transactions that are lawful under the Interstate Horseracing Act and all other applicable federal statutes.
Conclusion
Through our efforts to date, we are making progress in reaching our objective of promulgating a final rule that strictly adheres to the statute. We expect to receive a large number of comments as we approach the close of the comment period. We have an open mind on all aspects of the proposed rule. We will be providing analysis of the comments received, and reasons for any decisions that will be made, as we publish the final rule. Let me assure you that we are committed to giving fair consideration to all relevant comments as we work toward promulgating a final rule. We have much work to do, but we understand the task ahead and what we will need to do to reach our objective. Thank you, I would be happy to answer your questions.
Commodities Markets
The trend was higher across the board today for the Energy Sector: Light crude moved sharply higher today by $2.92 to close at $94.09 a barrel; Heating Oil closed higher by $0.07 today at $2.57 a gallon; Natural Gas moved higher today by $0.06 to close at $8.38 per million BTU and Unleaded Gas moved higher today by $0.05 to close at $2.37 a gallon.
Metals Market ended the session higher across the board today: Gold moved sharply higher today by $15.70 to close at $814.70 an ounce; Silver moved higher by $0.46 to close at $15.07 per ounce; Platinum moved sharply higher again today by $33.80 to close at $1,446.10 an ounce and Copper moved higher by $0.19 to close at $3.11 per pound.
On the Livestock and Meat Markets, the trend was lower across the board today: Lean Hogs ended the day lower by $0.45 to close at $60.65; Pork Bellies ended the day lower by $1.50 at $88.43; Live Cattle ended the day lower by $0.33 at $98.05 and Feeder Cattle ended the day lower by $0.28 at $108.98.
Other Commodities: Corn moved nicely higher today by $8.00 to close at $399.75 and Soybeans moved sharply higher today by $23.25 to end the session at $1,080.00.
Bonds were mixed across the board today: 2 year bond moved higher by 1/32 to close at 100 5/32; 5 year bond moved lower by 1/32 to close at 100 3/32 today; 10 year bond moved lower by 1/32 at 99 26/32 and the 30 year bond closed higher by 4/32 at 106 9/32 for the day.
The e-mini Dow ended the session today at 13,306 with a loss of 24 points on the trading session. The total Dow Exchange Volume for the day came in at 198,782 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 3,975,851; Open Interest for Futures moved lower by 11,270 points to close at 10,181,283; the Open Interest for Options moved higher by 121,621 points to close at 9,379,503 and the Cleared Only moved lower by 156 points to close at 14,104 for a total Open Interest on the day of 19,574,890 for a total Change on the day with a gain of 110,195 points.
On the NYSE today, advancers came in at 1,286; decliners totaled 2,010; unchanged came in at 80; new highs came in at 43 and new lows came in at 188. Active trading stocks on the Big Board today: OM Group Incorporated (OMG) posted a favorable gain on the session by 5.63 points to move higher by 12.35% with a high on the trading session of $51.85, a low of $46.04 for a final trading price at the bell of $51.23; FTSE/Xinhua China (FXI) provided nice trading action for the active day trader with a gain of 5.57 points, with a high on the session of $192.50, a low of $182.11 for a final trading price at $187.68; Excel Maritime Carriers Limited (EXM) moved sharply lower on the session to post a loss of 5.75 points with a high on the day of $51.26, a low of $45.30 for a closing price at $46.84; Bear Stearns Company (BSC) was quite active on the session with a high on the day of $111.01, a low of $101.84 with a gain of 2.40 points for a closing price at $103.27 and Allegheny Technologies Incorporated (ATI) pounced higher on the day with a gain of 5.11 points with a high on the session of $97.11, a low of $91.12 for an end of day price of $96.02.
On the NASDAQ today, advanced totaled 1,197; decliners totaled 1,807; unchanged came in at 117; new highs came in at 42 and new lows came in at 143. Active trades for the day consisted of: Apple Incorporated (AAPL) moved lower on the session with a loss of 3.85 points with a high on the day of $177.57, a low of $163.74 for a final trading price of $166.11; Canadian Solar Incorporated (CSIQ) posted a favorable gain on the session of 3.29 points to tack on 29.27% with a high on the day of $17.10, a low of $13.05 for a close at $14.53; Daktronics Incorporated (DAKT) moved sharply lower on the session with a loss of 8.68 points to shed 30.28% with a final trading price at $19.89; MedCath Corporation (MDTH) took a hard hit on the session to post a loss of 4.60 points to shed 17.36% to end the session at $21.90 and Google Incorporated (GOOG) tumbled lower on the session with a loss of 18.87 points with a high on the day of $675.49, a low of $636.27 for a closing price at $641.68.
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)