The PremiereTrade Market Wrap for 10/16/07

The Federal Reserve said that industrial output edged up 0.1 percent in September following no change at all in August. With the tiny increase in output in September, the nation's factories, mines and utilities operated at 82.1 percent of capacity, unchanged from August.

The International Council of Shopping Centers-UBS Retail Chain Store Sales Index was up 1.0% in the most current reporting week from its level the week before on a seasonally adjusted, comparable-store basis. Last week, the report was unchanged. On the year, chain store sales were up 2.5% in the week ended Oct. 13th.

Boston Scientific (BSC) is preparing to cut thousands of jobs to counter falling sales. Analysts predict it will cut between 2,000 to 3,400 jobs, or about 7 to 12 percent of its work force of 28,000.

Apple Inc. (AAPL) announced its next-generation operating system, Mac OS X "Leopard," will go on sale Oct. 26 for $129. Apple's online store is taking pre-orders.

Movie Gallery filed for bankruptcy, succumbing to a mountain of debt incurred when it bought rival Hollywood Entertainment for $1 billion in 2005.

In Earnings News

Johnson & Johnson's (JNJ) net earnings dropped 7.7 percent to $2.5 billion from the year-earlier quarter, and diluted earnings per share fell 6.4 percent to 88 cents.

Delta Air Lines Inc. (DAL) said it earned $220 million, or 56 cents a share. Analysts expected 42 cents.

Wells Fargo & Co. (WFC) said net income rose to $2.28 billion, or 68 cents per share. Analysts forecast earnings of 70 cents.

Genentech Inc. (DNA) reported that net profit was $685 million, or 64 cents per share.

Domino's Pizza Inc. (DPZ) reported income fell to $11 million, or 17 cents per share, from $24.5 million, or 39 cents per share in the prior-year quarter.

D.R. Horton (DHI), one of the nation's largest homebuilders, said fiscal fourth-quarter orders fell 39 percent as the housing slump worsened in September following a weak summer. Horton's cancellation rate hit 48 percent.

Scheduled Economic Reports (Wednesday)

Consumer Price Index (Sep), Housing Starts (Sep), Beige Book

Scheduled Earnings Reports (Wednesday)

Altria, Coca Cola, EBay, Abbott Labs, Gannett, E Trade Financial, Allstate, Manpower Inc, Piper Jaffray, and Washington Mutual

Stocks in the News

Steve Madden Ltd (SHOO) expects third-quarter sales to fall 8.3% to $113 million amid a 15% decline in same-store sales.

State Street Corp (STT) reported third-quarter earnings rose 29% on 48% higher revenue, and it said it expects to exceed its targets for earnings.

Adtran Inc's (ADTN) third-quarter net income fell 11% to $21.5 million, or 31 cents a share, from $24.2 million, or 33 cents a share, a year earlier.