The PremiereTrade Market Wrap for 11/09/07

JDfn™ - The PremiereTrade Market Wrap

A surge in exports in September helped push the U.S. trade deficit down to $56.5 billion, the lowest in more than two years. U.S. exports rose 1.1% to a record $140.1 billion on record shipments of capital goods, industrial materials and foods. Imports into the United States increased 0.6% to $196.6 billion, the second highest ever. The weaker U.S. dollar has been boosting exports, especially in the past three months.
According to the University of Michigan consumer sentiment continued to fell in November. The November consumer sentiment index was 75.0 -- the lowest level since October 2005.
Merck & Co. (MRK) said it will pay $4.85 billion to end thousands of lawsuits over its painkiller Vioxx in what is believed to be the largest drug settlement ever. The deal becomes binding only if 85 percent of all plaintiffs in about 26,600 lawsuits agree to drop their cases.
In Forex News Today
The US dollar has weakened more to record new lows against major currencies. The turbulences in the stock markets along with some shocks in the economy due to weak US data readings resulted in the dollar downturn. Yet the weakening of the dollar is of advantage to the dollar backed commodities as oil and gold hence acting as a hedge for inflation. As for Mr. Bernanke's testimony Thursday, the conclusion for the statement all in all was dovish signaling a possible rate cut in December according to data noting the threat of soaring energy prices.
The US Dollar held above the important 112.0 technical support region in Asia despite a further fall in Asian stock markets. Dollar confidence remained weak and the yen strengthened further to highs near 111.0 after the 112.0 level broke in Europe. The yen gained support from a renewed increase in risk aversion on rumors of further debt write-downs in the global banking sector.
The Chinese yuan continued to strengthen as the central bank tolerated further gains. There was increased speculation that the Chinese authorities would increase interest rates and allow a faster pace of yuan revaluation. Chinese speculation will help underpin the yen. There is some speculation that the Japanese Finance Ministry is encouraging institutional yen selling near recent dollar lows with the government looking to maintain a firm competitive position to support the industrial sector.
Scheduled Economic Reports (Next Week)
Pending Home Sales (Sep), Federal Budget (Oct), Producer Price Index (Oct), Retail Sales (Oct), Inventories (Sep), Consumer Price Index (Oct), Empire State Index (Nov), Philadelphia Fed Index (Nov), Industrial Production (Oct), Capacity Utilization (Oct)
In Earnings News
Wachovia Corp. (WB) said the value of collateralized debt obligations in its portfolio fell about $1.1 billion in October, making it the latest financial institution to warn of sharp losses last month in the credit markets.
Fewer insurance claims and a tax gain pushed Allianz SE (AZ) third-quarter profits up 21 percent, offsetting a $76.26 million loss at its banking unit.
Walt Disney Co. (DIS) reported that net income was $877 million, or 44 cents a share, compared with $782 million or 36 cents a share from a year ago.
Scheduled Earnings Reports (Next Week)
Wal-Mart, Home Depot, Bob Evans Farms, EchoStar Communications, Fossil, Pilgrim?s Pride, Applied Materials, Longs Drug Stores, Kohl?s, Starbucks, Williams Sonoma
Stocks in the News
Chiquita Brands? (CQB) third-quarter loss narrowed on 2.8% higher sales, helped by the recovery of its value-added salads business and the stabilization of banana pricing in Europe.
Nasdaq Stock Market (NDAQ) fiscal fourth-quarter net income jumped to $157.7 million or $1.84 a share, from $2 million, or 2 cents a share, a year earlier.
Google Inc (GOOG) shares took a hit along with several technology stocks on worries that overall U.S. business spending could weaken.