The PremiereTrade Market Wrap for 11/15/07

The consumer price index increased 0.3% in October, driven by a 1.4% gain in energy prices. This was the fastest increase in energy prices since May. Food prices rose 0.3%. The core CPI, which excludes food and energy costs, was up 0.2% in October. The number of initial claims in the week ending Nov 10 rose 20,000 to 339,000. It's the highest level since the week ended Oct. 13. OPEC said it sees a modest downturn in the U.S. economy in the fourth quarter due in part to record high oil prices, but booming growth in China and the Middle East will keep world oil demand strong. Barclays Group PLC took a $2.7 billion write-down for losses on securities linked to the U.S. subprime mortgage market collapse -- less than the market had expected. Ralcorp Holdings Inc. (RAH) said it will purchase Kraft Foods Inc.'s Post cereals unit, the nation's third largest with brands like Spoon Size Shredded Wheat and Post Raisin Bran. The companies said the deal includes Ralcorp stock valued at about $1.65 billion. Pitney Bowes Inc. (PBI) is cutting 4 percent of its work force, about 1,500 jobs, and taking a charge of between $300 million and $400 million as it begins to provide fully digital equipment. In Forex News Today The dollar rose against the euro but slipped against the yen as fears about the effects of the credit crunch and falling equity markets led investors to pare back on profitable trades. After a report showed core U.S. consumer inflation in October was in line with forecasts, dealers began cutting their bets against the dollar, which had become quite stretched. The yen rose versus the euro and dollar and high yielding currencies dipped as concerns about the effects of the credit crunch and falling equity markets led investors to pare back risky carry trades. The Japanese currency extended gains as weaker Asian stock markets were followed by a slide in European equities and by futures pointing to a lower open on Wall Street, which led investors to sell high yielding currencies in favour of safe haven assets. Options bets signal that the Canadian dollar's 19 percent surge versus its U.S. counterpart this year to a record high may fade as interest-rate differentials lessen and commodity prices stabilize. Traders are paying the largest premium since January for Canadian dollar put options, granting the right to sell the currency, over calls providing the right to buy. The risk- reversal rate for one-month options, which hadn't favored Canadian dollar puts in a month, reached a 0.45 percent percentage point premium. Scheduled Economic Reports (Friday) Industiral Production (Oct), Capacity Utilization (Oct) In Earnings News J.C. Penney Co. (JCP) said its third-quarter profit fell 9 percent, hurt by weak sales in September and October, and the department store operator slashed its fourth-quarter outlook. Williams-Sonoma Inc. (WSM) said net income for the fiscal third quarter fell 7 percent, hurt by falling same-store sales and higher expenses. Net income for the quarter ended Oct. 28 fell to $27.1 million, or 25 cents per share. Brewer SABMiller PLC posted a 21 percent increase in first-half profits , but warned of tougher trading conditions in the second half due to the rising cost of raw materials. Scheduled Earnings Reports (Friday) Jack in the Box, Ann Taylor Stores, Johnson Outdoors, Carrington Labs Stocks in the News Delta Air Line's (DAL) Chief Executive Richard Anderson said the carrier is not talking to United Airlines about a merger, throwing cold water on merger speculation. Merrill Lynch (MER) named John Thain chairman and chief executive, effective Dec. 1. PetSmart Inc (PETM) reported third-quarter net income of $29.5 million compared with $31.7 million in the year-earlier period.

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The PremiereTrade Market Wrap for 11/15/07 is an episode from JDfn™ - The PremiereTrade Market Wrap by The James Dicks Financial Network.

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This episode was published on Nov 15, 2007.

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