The PremiereTrade Market Wrap for 10/15/07

Growth in the New York manufacturing sector was widespread in October, a "substantial" improvement from September. The Empire state index rose to 28.8 vs. 14.7 in September. Manufacturers expect business conditions to remain favorable; the future index increased to 50.6.

The G7 finance ministers will meet behind closed doors on Friday. After that, officials will remain in Washington for the weekend annual meetings of the International Monetary Fund and World Bank.

Citigroup (C), Bank of America, (BAC), and JP Morgan Chase (JPM) and several other financial institutions confirmed plans to create a single master liquidity enhancement conduit to purchase qualifying highly-rated assets from existing structured investment vehicles. Investors have grown concerned recently about the size of bank-affiliated funds with huge sums invested in subprime mortgage-related securities and other assets.

In Earnings News

Citibank said its net income fell 57 percent to $2.38 billion, or 47 cents a share, in the July through September period, from $5.5 billion, or $1.10 a share, a year earlier.

Mattel Inc. (MAT) said net income for the quarter ended Sept. 30th slipped to $236.8 million, or 61 cents per share. Analysts expected profit of 70 cents per share.

Charles Schwab Corp. (SCHW) said its third quarter earnings multiplied from over the year-ago period, mainly due to its sale of U.S. Trust. Schwab reported earnings of $1.53 billion, or $1.28 per share.

W.W. Grainger Inc. (GWW) earned $109.2 million or $1.29 per share in the third quarter. Analysts expected profit of $1.26 per share on revenue of $1.64 billion.

Scheduled Economic Reports (Tuesday)

Retail Chain Index (week of Oct 13th), Industrial Production (Sep), Capacity Utilization (Sep), Home Builders Index (Oct)

Scheduled Earnings Reports (Tuesday)

Intel, Delta Air Lines, Yahoo, Crown Holdings, Johnson & Johnson, Dominoes Pizza, IBM, Seagate Technology

Stocks in the News

Bombay Company (BBAOE) was sold to a joint venture of two investment firms. The buyers plan to close the U.S. stores and maintain the Canadian stores in operation.

Biogen Idec?s (BIIB) board authorized management to evaluate whether third parties would be interested in buying the company and said it has received expressions of interest, including one from investor Carl Icahn.

Reddy Ice Holdings (FRZ) approved a proposed GSO Capital Partners LP-led takeover.