The PremiereTrade Market Wrap for 10/10/07

The Dow dropped lost ground today, one session after ending at an all-time high, as investors considered Dow component Alcoa's earnings miss as well as a big setback for Boeing.

Former Fed chairman Alan Greenspan said that while U.S. economic data look good in the third quarter, the growth rate will continue to slow and the housing market will weaken further.
Meantime, Federal Reserve policy makers signaled they are in no hurry to reduce interest rates again because they aren't convinced the U.S. economic expansion is coming to an end. Officials didn't want investors to conclude extra cuts were guaranteed.
Inventories at U.S. wholesalers remained at the leanest levels ever in relation to sales in August. Wholesale sales increased 0.4% in August, while inventories rose 0.1%.
According to the National Association of Realtors, the decline in 2007 sales of existing homes will be steeper than previously anticipated. The eighth straight downwardly revised forecast calls for U.S. existing home sales to be 10.8 percent lower than last year as housing market struggles persist.
According to the Mortgage Bankers Association's weekly application survey shows mortgage application volume increased 2.4 percent during the week ending Oct. 5th.
MGM Mirage (MGM) said its board approved the development of a major resort casino project at Renaissance Pointe in Atlantic City, N.J.

In Earnings News

Alcoa Inc. (AA) said its third-quarter profit edged up more than 3 percent, helped by the sale of its stake in China's largest aluminum maker. But the results fell short of Wall Street expectations.

Chevron Corp. (CVX) shares came under pressure after the oil giant warned investors to expect third-quarter net earnings "significantly below" the record $5.4 billion it posted in the previous quarter.

Meanwhile, Valero Energy Inc. (VLO) joined other big oil refiners issuing profit warnings, becoming the latest victim of higher crude prices squeezing margins.

Costco Wholesale Corp. (COST) said its fiscal fourth-quarter profit climbed 5 percent on increased membership fee revenue and higher same-store warehouse sales.

Monsanto Co. (MON) posted a fiscal fourth-quarter loss, weighed down by charges related to its acquisition of cotton company Delta and Pine Land Co.

Shaw Group Inc. (SGR) reported a profit in its third quarter on strong demand for power generation capacity and petrochemicals processing.

Scheduled Economic Reports (Thursday)

Initial Jobless Claims (Week of October 6th), Import/Export Prices (Sep), Trade Gap (Aug)

Scheduled Earnings Reports (Thursday)

Meade Instruments, Safeway, Samsung Electronics, Winnebago Industries, Bank of the Ozarks, Pepsico

Stocks in the News

International Paper Co. (IP) warned that disappointing land sales will push third-quarter profit below Wall Street's target.

iRobot Corp (IRBT) said its third-quarter financial results will be weakened by initial production delays on its vacuum-cleaning robot product.

99 Cents Only Stores (NDN) expects to report a fiscal second-quarter net loss because of short-term operating-margin and execution issues.