Today’s session was plagued by whipsaw action, accompanied by an extensive period of time from around 11:00 am ET until 3:00 pm ET that market momentum was all but flat. Day Traders and investors struggled today for trades that were worth while. On a positive note, the DOW ended the session with another record close. At the end of the trading session, here is how the major indices ended the day: the DOW (Dow Jones Industrial Average) moved higher by 51.99 points to end the session at 12673.68; the NYSE (New York Stock Exchange) moved higher by 72.88 points to end at 9327.61; the NASDAQ moved higher by just 4.45 points to close at 2468.38; the S&P 500 gained 7.70 points to end at 1445.94 and the RUSSELL 2000 gained 7.43 points to close at 807.77. 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 worlds investable market capitalization) moved higher by 1.48 to close at 243.42 and the FTSE RAFI 1000 moved higher by 36.27 points to close at 6061.89.
As we are in a very active earnings season, Exxon Mobile posted its largest annual profit ever by a U.S. company in 2006. The record earnings are mainly attributed to the high energy prices experienced last year. The net income for Exxon Mobil was $39.13 billion which was higher by 9.3% as compared to last year and revenues increased by 1.9% to $377.64 billion.
Comments from Chairman of the White House Council of Economic Advisers (CEA) Edward Lazear: expect some reversion in profit levels; profits seen falling to more normal levels; don't see significant falloff in investment; so far not seeing tremendous wage pressures and not seeing impact of wages in inflation.
Economic data released for the day:
Monster Employment Index: Job postings from 1,500 web sites create an index of job availability. This index is similar to The Conference Board’s help wanted index however; Monster Employment Index is not seasonally adjusted. For January, reading came in at 168.
Challenger Job-Cut Report: Corporate layoffs comprised in a monthly, not seasonally adjusted report which indicates a trend in the labor market. For January, Announced Layoffs were reported at 168.
Jobless Claims: A weekly compilation of new unemployment claims to show the number of individuals who filed for unemployment insurance for the first time. The condition of the labor market is determined by an increase of the number of claims which suggests a deteriorating labor market. U.S. Jobless Claims fell 20K to 307K for week of January 27th compared to survey of a drop by 10K and U.S. Continuing Claims for week of January 20th rose by 71K to 2,553,000.
Personal Income and Outlays: Personal Income, received from all sources by individuals, is the dollar amount of income. Personal Outlays include purchase by consumers for both durable and non-durable goods and services. December PCE Price Index excluding food and energy rose by 2.2% rate versus a year ago; December PCE Price Index excluding food and energy rose by 0.1% rate versus a month ago; November Spending was left unrevised at an increase by 0.5%; November Personal Income was left unrevised at an increase of 0.3%; U.S. Personal Spending rose 0.7% in December as compared to consensus of an increase by 0.7% and U.S. Personal Income rose by 0.5% in December compared to consensus of an increase by 0.5%.
ISM Non-Manufacturing Survey: Compiled from approximately 400 non-manufacturing firms from 60 sectors across the United States. Included in the survey are retail trade, construction, agriculture, mining, transportation, wholesale trade and communications. U.S. ISM Jan Inventories came in at 39.9 versus December reading of 48.5; U.S. ISM January Production Index came in at 49.6 versus December reading of 52.4; U.S. ISM January New Orders Index came in at 50.3 versus December reading of 51.9; U.S. ISM January Prices Index came in at 53.0 versus December reading of 47.5; U.S. ISM January Manufacturing Business Index was expected at 52.0 and U.S. ISM January Manufacturing Business Index came in at 49.3 versus December reading of 51.4. January Manufacturing ISM Report On Business(R): PMI At 49.3%; New Orders Growing; Production, Employment and Inventories Contracting and, deliveries are slowing.
Pending Home Sales Index: Reported by the National Association of Realtors, leading indicator of housing activity. U.S. Pending Home Sales came in at 4.4% which is below December 2005.
EIA Natural Gas Report: Weekly information provided by the EIA (Energy Information Administration) on natural gas stock piles in underground storage in the United States and three regions of the country. Prices for natural gas products are determined by the level of inventories. For week of January 27th, weekly change in Natural Gas supplies fell by 186 BCF.
On the commodities markets, the trend was lower across the board today for the Energy sector: Light crude moved lower by $0.84 to close at $57.30 a barrel; Heating Oil closed lower by $0.02 today to close at $1.66 a gallon; Natural Gas moved lower by $0.14 to end the day at $7.53 per million BTU and Unleaded Gas closed lower by $0.01 again today to end the session at $1.68 a gallon.
Metals Market ended the session mostly higher across the board today: Gold moved higher by $5.00 to close at $663.00 an ounce; Silver closed higher today by $0.16 at $13.73 an ounce; Platinum posted a nice gain of $10.50 to close at $1,192.80 an ounce and Copper ended the day lower by $0.06 to close at $2.53 per pound.
On the Livestock and Meat Markets, the trend was mostly lower across the board today: Lean Hogs closed lower by 0.53 to close at 67.70; Pork Bellies closed the day higher by 1.10 to close at 102.60; Live Cattle closed lower by 0.28 to end the day at 92.90 and Feeder Cattle ended the day lower by 1.08 to close at 94.78.
Other Commodities: Corn fell sharply by 6.00 to close at 398.00 and Soybeans moved higher by 2.00 to close at 721.50.
Bonds were lower across the board today: 2 year bond closed lower by 2/32 at 99 27/32; 5 year bond closed lower by 4/32 at 99 20/32; 10 year bond closed lower by 11/32 at 98 11/32 and the 30 year bond closed lower by 10/32 at 93 12/32.
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 4,668,630. Open Interest for Futures moved higher by 90,308 to close at 9,412,268 and the Open Interest for Options moved higher by 131,974 to close at 7,704,056 for a total Open Interest of 17,117,495 for a total gain on the day by 222,282.
The mini Dow ended the session with another nice gain today of 44 to close at 12704. The total Dow Exchange Volume for the day came in at 138,832 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.
New York Stock Exchange movers for the day: Chicago Mercantile Exchange Holdings Incorporated (CME) rallied higher today by 14.51 points to end the session at $577.81 for the day; SRA International Incorporated (SRX) fell by 4.14 points to close at $21.16; Archer Daniels Midland Company (ADM) posted a gain of 3.47 points for a closing price of $35.47; CARBO Ceramics Incorporated (CRR) rallied higher by 8.10 points to close at $44.98 on the day and Kookmin Bank (KB) made a nice gain of 5.45 points to end at $84.98 at the close.
On the NASDAQ today, advancers came in at 1,958; decliners totaled 1,079; unchanged came in at 154; new highs came in at 375 and new lows came in at only 24.