MTdailynews
12-03-2007, 07:16 PM
As we begin the final month of the year on the first Monday of the month, trading activity was almost as sluggish as the roads currently are from the Midwest to the Northeast region during this the first major winter storm of the season. Trading volume was light and trading ranges were tight. During the mid-day trading session, the Bulls made an attempt to appear but, the Bears quickly waved them off with the markets moving sharply lower during the late afternoon trading session. Into the final bell, we saw the major indices move toward the lows of the trading session.
At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a loss of 57.15 points on the day to end the session at 13,314.57; the NYSE (New York Stock Exchange) posted a loss of 44.99 points to end the session at 9,811.86; the NASDAQ posted a loss of 23.83 points for a close at 2,637.13; the S&P 500 moved lower by 8.72 points to end at 1,472.42 and the RUSSELL 2000 moved lower by 7.80 points to close at 759.97. 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 0.95 points to close at 266.04 and the FTSE RAFI 1000 posted a loss of 31.51 points to close at 6,019.12.
U.S. Institute for Supply Management data released today: November Manufacturing Business Index came in at 50.8; November Manufacturing Business Index was expected to come in at 50.7; November Manufacturing Business Index came in at 50.8 versus October reading at 50.9; November Prices Index came in at 67.5 versus October reading at 63.0; November Employment Index came in at 47.8 versus October reading at 52.0; November New Orders Index came in at 52.6 versus October reading at 52.5; November Production Index came in at 51.9 versus October reading at 49.6 and November Inventories Index came in at 46.9 versus October reading at 47.2.
Remarks by Treasury Secretary Henry M. Paulson Jr. on Actions Taken and Actions Needed in U.S. Mortgage Markets at the Office of Thrift Supervision National Housing Forum
Washington, DC - The Office of Thrift Supervision plays an important role in our financial system, and I appreciate your leadership at this agency. Thanks, also, for hosting this second national housing forum and providing a timely opportunity for me to give an update on the U.S. economy and mortgage markets. I mention timeliness because housing issues are affecting citizens all across the country, and because Congress returns to Washington today. In the final days of this congressional session, there is much that Congress can do to help America's homeowners. As we are all aware, the housing and mortgage markets are working through a period of turmoil, as are other credit markets, as risk is being reassessed and re-priced. We expect that this turbulence will take some time to work through, and we expect some penalty on our short-term economic growth. The positive news is that we are confronting and managing these challenges against the backdrop of a strong global economy. And the U.S. economy remains fundamentally sound, core inflation is contained, continued job gains are providing a good foundation for household spending, corporate balance sheets remain healthy overall, and strong growth abroad is supporting U.S. exports. Our economy will continue to grow, but it is facing a number of challenges. And as I have said before, the housing market downturn is the biggest challenge to our economy. When home foreclosures spike, the damage is not limited only to those who lose their homes. Homes in foreclosure can pose costs for whole neighborhoods, as crime goes up and property values decline. Avoiding preventable foreclosures, then, is in the interest of all homeowners. Mortgage market financial innovation has benefited the U.S. economy and U.S. homeowners; it has also introduced some of the challenges we face today. Financial innovation led to the creation of mortgage products that put homeownership within the reach of more people. At the same time, innovation also made riskier loans with no down payments or minimal documentation more widely available. Similarly, securitization has brought benefits and challenges - making more capital available for mortgages, but creating greater market complexity. As a result, we now have an array of different market participants, often with different interests. Still, foreclosure is expensive for all participants - lenders and investors and this expense is an incentive to avoid foreclosure when a homeowner has the financial wherewithal to own a home. An appropriate role for government is to bring the private sector together when innovation has greatly increased the complexity of achieving beneficial solutions for all parties involved. The number of subprime mortgage resets is going to increase dramatically next year, and we need to make sure the capacity is there to handle it. And so, Treasury is aggressively pursuing a comprehensive plan to help as many able homeowners as possible keep their homes. We began by convening a diverse group of market participants, who represent all segments of the mortgage industry. Based on what we have learned, we are implementing a three point plan to avoid preventable foreclosures and to minimize the impact of the housing downturn on the U.S. economy. First, we are increasing efforts to reach able homeowners who are struggling with their mortgages. Second, we are working to increase the availability of affordable mortgage solutions for these borrowers. Third, we are leading the industry to develop a systematic means of efficiently moving able homeowners into sustainable mortgages. This morning, I will provide more detail on the three elements of this plan, an update on the private sector's efforts, the government's efforts, and the additional steps that are needed in each area.
Commodities Markets
The trend was mixed across the board today for the Energy Sector: Light crude moved higher today by $0.60 to close at $89.31 a barrel; Heating Oil moved lower today by $0.01 to close at $2.50 a gallon; Natural Gas moved lower today by $0.09 to close at $7.21 per million BTU and Unleaded Gas moved higher today by $0.02 to close at $2.25 a gallon.
Metals Market ended the session mostly higher across the board today: Gold moved higher today by $5.60 to close at $794.70 a Troy ounce; Silver moved higher by $0.05 today to close at $14.21 per Troy ounce; Platinum moved sharply higher today by $17.30 to close at $1,461.40 per Troy ounce and Copper moved lower by $0.11 to close at $3.08 per pound.
On the Livestock and Meat Markets, the trend was mixed across the board today: Lean Hogs ended the day lower by $1.08 to close at $61.23; Pork Bellies ended the day lower by $0.60 at $90.73; Live Cattle ended the day higher by $0.60 at $96.38 and Feeder Cattle ended the day higher by $0.35 at $108.05.
Other Commodities: Corn moved higher today by $2.00 to close at $403.50 and Soybeans moved lower today by $1.25 to end the session at $1,078.75.
Bonds were higher across the board today: 2 year bond moved higher by 9/32 to close at 100 16/32; 5 year bond moved higher by 21/32 to close at 100 18/32 today; 10 year bond moved higher by 25/32 at 103 8/32 and the 30 year bond closed higher by 1 1/32 at 111 7/32 for the day.
The e-mini Dow ended the session today at 13,344 with a loss of 78 points on the trading session. The total Dow Exchange Volume for the day came in at 195,371 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 9,707,714; Open Interest for Futures moved lower by 164,970 points to close at 10,044,055; the Open Interest for Options moved higher by 148,645 points to close at 6,669,152 and the Cleared Only closed moved higher by 840 points to close at 16,360 for a total Open Interest on the day of 16,729,567 for a total Change on the day with a loss of 15,485 points.
On the NYSE today, advancers came in at 1,340; decliners totaled 1,951; unchanged came in at 84; new highs came in at 74 and new lows came in at 98. Active trading stocks on the Big Board today: Decliners: Rio Tinto plc (RTP) down 18.09 points, high on session $455.94, low on session $445.00, closing price $449.39; iShares FTSE/Xinhua China (FXI) down 4.96 points, high on session $185.89, low on session $180.00, closing price $182.50; Veriphone Holdings Incorporated (PAY) down 21.38, high on session $30.12, low on session $23.67, closing price $26.65.
On the NASDAQ today, advanced totaled 993; decliners totaled 1,996; unchanged came in at 133; new highs came in at 42 and new lows came in at 138. Active trading stocks for the day consisted of: Advancers: UAP Holding Corporation (UAPH) higher by 8.37 points with a closing price $38.28 Solarfun Power Holdings Corporation Limited (SOLF) higher by 4.25 points, high on the session $21.85, low on session $16.05, closing price $20.60. Decliners: Research In Motion Limited (RIMM) down 9.07 points, high on the session $109.60, low on session $104.70, closing price $104.75; Google Incorporated (GOOG) down 11.47 points, high on session $695.00, low on session $681.14, closing price $681.53; First Solar Incorporated (FSLR) down 7.93 points, high on session $249.00, low on session $249.00, closing price $229.22.
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At the closing bell, here is how the major indices ended the session: the DOW (Dow Jones Industrial Average) posted a loss of 57.15 points on the day to end the session at 13,314.57; the NYSE (New York Stock Exchange) posted a loss of 44.99 points to end the session at 9,811.86; the NASDAQ posted a loss of 23.83 points for a close at 2,637.13; the S&P 500 moved lower by 8.72 points to end at 1,472.42 and the RUSSELL 2000 moved lower by 7.80 points to close at 759.97. 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 0.95 points to close at 266.04 and the FTSE RAFI 1000 posted a loss of 31.51 points to close at 6,019.12.
U.S. Institute for Supply Management data released today: November Manufacturing Business Index came in at 50.8; November Manufacturing Business Index was expected to come in at 50.7; November Manufacturing Business Index came in at 50.8 versus October reading at 50.9; November Prices Index came in at 67.5 versus October reading at 63.0; November Employment Index came in at 47.8 versus October reading at 52.0; November New Orders Index came in at 52.6 versus October reading at 52.5; November Production Index came in at 51.9 versus October reading at 49.6 and November Inventories Index came in at 46.9 versus October reading at 47.2.
Remarks by Treasury Secretary Henry M. Paulson Jr. on Actions Taken and Actions Needed in U.S. Mortgage Markets at the Office of Thrift Supervision National Housing Forum
Washington, DC - The Office of Thrift Supervision plays an important role in our financial system, and I appreciate your leadership at this agency. Thanks, also, for hosting this second national housing forum and providing a timely opportunity for me to give an update on the U.S. economy and mortgage markets. I mention timeliness because housing issues are affecting citizens all across the country, and because Congress returns to Washington today. In the final days of this congressional session, there is much that Congress can do to help America's homeowners. As we are all aware, the housing and mortgage markets are working through a period of turmoil, as are other credit markets, as risk is being reassessed and re-priced. We expect that this turbulence will take some time to work through, and we expect some penalty on our short-term economic growth. The positive news is that we are confronting and managing these challenges against the backdrop of a strong global economy. And the U.S. economy remains fundamentally sound, core inflation is contained, continued job gains are providing a good foundation for household spending, corporate balance sheets remain healthy overall, and strong growth abroad is supporting U.S. exports. Our economy will continue to grow, but it is facing a number of challenges. And as I have said before, the housing market downturn is the biggest challenge to our economy. When home foreclosures spike, the damage is not limited only to those who lose their homes. Homes in foreclosure can pose costs for whole neighborhoods, as crime goes up and property values decline. Avoiding preventable foreclosures, then, is in the interest of all homeowners. Mortgage market financial innovation has benefited the U.S. economy and U.S. homeowners; it has also introduced some of the challenges we face today. Financial innovation led to the creation of mortgage products that put homeownership within the reach of more people. At the same time, innovation also made riskier loans with no down payments or minimal documentation more widely available. Similarly, securitization has brought benefits and challenges - making more capital available for mortgages, but creating greater market complexity. As a result, we now have an array of different market participants, often with different interests. Still, foreclosure is expensive for all participants - lenders and investors and this expense is an incentive to avoid foreclosure when a homeowner has the financial wherewithal to own a home. An appropriate role for government is to bring the private sector together when innovation has greatly increased the complexity of achieving beneficial solutions for all parties involved. The number of subprime mortgage resets is going to increase dramatically next year, and we need to make sure the capacity is there to handle it. And so, Treasury is aggressively pursuing a comprehensive plan to help as many able homeowners as possible keep their homes. We began by convening a diverse group of market participants, who represent all segments of the mortgage industry. Based on what we have learned, we are implementing a three point plan to avoid preventable foreclosures and to minimize the impact of the housing downturn on the U.S. economy. First, we are increasing efforts to reach able homeowners who are struggling with their mortgages. Second, we are working to increase the availability of affordable mortgage solutions for these borrowers. Third, we are leading the industry to develop a systematic means of efficiently moving able homeowners into sustainable mortgages. This morning, I will provide more detail on the three elements of this plan, an update on the private sector's efforts, the government's efforts, and the additional steps that are needed in each area.
Commodities Markets
The trend was mixed across the board today for the Energy Sector: Light crude moved higher today by $0.60 to close at $89.31 a barrel; Heating Oil moved lower today by $0.01 to close at $2.50 a gallon; Natural Gas moved lower today by $0.09 to close at $7.21 per million BTU and Unleaded Gas moved higher today by $0.02 to close at $2.25 a gallon.
Metals Market ended the session mostly higher across the board today: Gold moved higher today by $5.60 to close at $794.70 a Troy ounce; Silver moved higher by $0.05 today to close at $14.21 per Troy ounce; Platinum moved sharply higher today by $17.30 to close at $1,461.40 per Troy ounce and Copper moved lower by $0.11 to close at $3.08 per pound.
On the Livestock and Meat Markets, the trend was mixed across the board today: Lean Hogs ended the day lower by $1.08 to close at $61.23; Pork Bellies ended the day lower by $0.60 at $90.73; Live Cattle ended the day higher by $0.60 at $96.38 and Feeder Cattle ended the day higher by $0.35 at $108.05.
Other Commodities: Corn moved higher today by $2.00 to close at $403.50 and Soybeans moved lower today by $1.25 to end the session at $1,078.75.
Bonds were higher across the board today: 2 year bond moved higher by 9/32 to close at 100 16/32; 5 year bond moved higher by 21/32 to close at 100 18/32 today; 10 year bond moved higher by 25/32 at 103 8/32 and the 30 year bond closed higher by 1 1/32 at 111 7/32 for the day.
The e-mini Dow ended the session today at 13,344 with a loss of 78 points on the trading session. The total Dow Exchange Volume for the day came in at 195,371 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 9,707,714; Open Interest for Futures moved lower by 164,970 points to close at 10,044,055; the Open Interest for Options moved higher by 148,645 points to close at 6,669,152 and the Cleared Only closed moved higher by 840 points to close at 16,360 for a total Open Interest on the day of 16,729,567 for a total Change on the day with a loss of 15,485 points.
On the NYSE today, advancers came in at 1,340; decliners totaled 1,951; unchanged came in at 84; new highs came in at 74 and new lows came in at 98. Active trading stocks on the Big Board today: Decliners: Rio Tinto plc (RTP) down 18.09 points, high on session $455.94, low on session $445.00, closing price $449.39; iShares FTSE/Xinhua China (FXI) down 4.96 points, high on session $185.89, low on session $180.00, closing price $182.50; Veriphone Holdings Incorporated (PAY) down 21.38, high on session $30.12, low on session $23.67, closing price $26.65.
On the NASDAQ today, advanced totaled 993; decliners totaled 1,996; unchanged came in at 133; new highs came in at 42 and new lows came in at 138. Active trading stocks for the day consisted of: Advancers: UAP Holding Corporation (UAPH) higher by 8.37 points with a closing price $38.28 Solarfun Power Holdings Corporation Limited (SOLF) higher by 4.25 points, high on the session $21.85, low on session $16.05, closing price $20.60. Decliners: Research In Motion Limited (RIMM) down 9.07 points, high on the session $109.60, low on session $104.70, closing price $104.75; Google Incorporated (GOOG) down 11.47 points, high on session $695.00, low on session $681.14, closing price $681.53; First Solar Incorporated (FSLR) down 7.93 points, high on session $249.00, low on session $249.00, closing price $229.22.
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)