The PremiereTrade Market Wrap for 10/11/07

Initial jobless claims dropped by 12,000 to 308,000 in the week that ended Oct. 6th, from a revised 320,000 a week earlier; the four-week moving average, a less volatile measure, decreased by 3,000 from the previous week.

The U.S. trade deficit declined to $57.6 billion in August, down 2.4 percent from the July imbalance. It was lowest gap between exports and imports since January.

Warm weather and an uncertain economy kept consumers out of malls and stores in September, leaving many of the nation's big retailers with disappointing sales for the month and forcing several to cut their earnings forecasts.

The number of foreclosures across the country dropped in September, falling 8 percent from a 32-month high in August. Delinquencies and defaults fell as well.

Countrywide Financial Corp. (CFC), the nation's largest mortgage lender, said its mortgage fundings for the month of September fell 44 percent from the same period a year ago.

The Bank of Japan kept its benchmark interest rate steady after a two-day policy meeting ended amid concerns U.S. credit worries may hurt economic growth in Japan. The central bank's policy board voted to keep a key interest rate unchanged at 0.5 percent. The decision was in line with expectations.

In Earnings News

Wal-Mart (WMT) reported a moderate increase in September sales at its stores open at least a year, but also raised its earnings guidance for its third quarter. .

PepsiCo Inc. (PEP) said its third-quarter profit rose 17 percent on double-digit growth in international sales.

Safeway Inc. (SWY) said its third-quarter profit jumped 12 percent due to cost reductions and strong performance from its newly remodeled stores. The results matched Wall Street analysts' expectations.

Winnebago Industries Inc.'s (WGO) fourth-quarter earnings surged 59 percent, a reflection of increased sales of its larger and higher-profit motor homes.

Scheduled Economic Reports (Friday)

Retail Sales (Sep), Producer Price Index (Sep), Business Inventories (Aug), Consumer Sentiment

Scheduled Earnings Reports (Friday)

General Electric, Pinnacle Financial, United Securities Bancshares

Stocks in the News

Costco Wholesale (COST) reported that fiscal fourth-quarter net income rose 4.7% on 5% higher same-store sales and 3% higher total sales.

Vonage Holdings Corp (VG) said it filed a motion for a court panel to review the decision in its patent litigation with Verizon.

Compellent Technologies (CML) shares rocketed up 79.2% on its IPO day.