The PremiereTrade Market Wrap for 11/14/07

JDfn™ - The PremiereTrade Market Wrap

The Federal Open Market Committee announced that it's taking a series of steps to give the public a greater understanding of the basis for its interest-rate decisions. In a statement, the FOMC -- charged with formulating U.S. monetary policy -- said it would provide more-timely information about the evolving outlook by releasing its economic projections four times each year, rather than twice as done previously.
U.S. businesses built up their inventories modestly in September but sold more goods than they kept. Sales at U.S. businesses rose 0.6% in September, the most in two months, while inventories increased 0.4%. The inventory number is a two-month high.
Wholesale prices rose 0.1% in October as food prices rose and energy prices fell. The core producer price index which excludes food and energy costs didn't grow at all.
Retail sales grew at a sluggish pace in October as many cash-strapped Americans continue to struggle with higher gas prices, less equity in the home and tighter credit availability. The Commerce Department said total sales rose 0.2 percent last month from a revised gain of 0.7 percent in September.
The Mortgage Bankers Association reported that mortgage application filings increased 5.5% last week on a seasonally adjusted basis compared to the prior week, driven by a jump in applications to refinance existing loans.
Three states, California, Florida and Ohio, continue to dominate new foreclosure filings, as most of the nation saw increases in the third quarter.
Bear Stearns Cos. (BSC) will take a $1.2 billion write-down in the fourth quarter related to weakness in its credit portfolios.
In Forex News Today
The dollar resumed its recent familiar pattern, gaining on the yen but slipping against other major rivals, as risk aversion faded in the shining light of a stock market rally. The dollar extended gains against the yen after data showed U.S. retail sales in October were in line with market expectations while producer price inflation was benign.
Japan's low interest rates make the yen a popular currency for carry trades, in which investors borrow lower-yielding funds to buy higher-yielding assets. Such trades are less popular when risk aversion rises. Japan's third-quarter gross domestic product data revealed that the nation's economy grew at a 2.6% annualized rate in the third quarter, but the prior quarter was revised down to a 1.6% contraction from a 1.2% contraction.
In China, the yuan fell nearly 0.3% versus the dollar -- its biggest daily drop since China stopped pegging its currency to the greenback in July 2005. The People's Bank of China set its official parity rate for the midpoint of yuan trading, compared with a record high rate the previous trading day. The central bank allows the yuan to trade in a band of 0.5% on either side of its parity rate.
In Europe, Sterling pared early gains after the Bank of England?s quarterly inflation report suggested UK interest rates would fall in 2008.
And in Canada, Paul Jenkins, senior deputy governor of the Bank of Canada, said a persistently high Canadian dollar could pose a threat to Canadian economic growth and push inflation lower. Jenkins said the rapid and significant decline of the U.S. dollar increased the risk of disorderly adjustments to global imbalances.
Scheduled Economic Reports (Thursday)
Initial Jobless Claims (Week of Nov 19th), Consumer Price Index (Oct), Philadelphia Fed Index (Nov)
In Earnings News
Macy's Inc. (M) reported a profit of $33 million in the third quarter in contrast to a slim loss a year ago.
Daktronics Inc. (DAKT) reported fiscal 2008 second-quarter profit fell 10 percent to miss Wall Street's expectations, hurt by supply chain issues at one of its manufacturing facilities.
Regency Energy Partners LP's (RGNC) posted a loss of $12.8 million, compared with $11.3 million a year earlier.
Scheduled Earnings Reports (Thursday)
JC Penney, Intuit, Agilent Technologies, Franklin Covey, Kohl?s, Starbucks, Tyco International
Stocks in the News
Ethan Allen Interiors (ETH) said its board increased the company's stock buyback authorization to 2 million shares.
Arvin Meritor (ARM) narrowed its quarterly loss on sales flat at $1.6 billion.
Eddie Bauer Holdings (EBHI) said its third-quarter loss narrowed to $16.4 million or 54 cents a share.
Longs Drugs Stores (LDG) said its board approved the buyback of up to $200 million of shares.