The PremiereTrade Market Wrap for 11/02/07

Employers added more workers to payrolls in October, according to the government's closely watched jobs report that showed the labor market significantly stronger than Wall Street expectations. There was a net gain of 166,000 jobs in the month. Economists had forecast an 80,000 increase in the period. The unemployment rate stayed at 4.7 percent.

Treasuries fell after the government released the jobs report, suggesting that the U.S. economy is weathering the worst housing slump in 16 years. Investors sold bonds as the Labor Department data encouraged traders to reduce bets that the Federal Reserve will cut borrowing costs once more this year. This week the Fed said inflation and growth risks are ``roughly balanced.''

Orders for U.S.-made factory goods rose 0.2% in September on higher gasoline prices. Orders for durable goods, such as airplanes and computers, fell 1.7% on a big drop in orders for defense aircraft and other defense goods. Excluding defense goods, orders for factory goods rose 1.3%.

In Forex News Today

The U.S. dollar fell against the euro in early trading Friday as markets looked ahead to the release of non-farm payrolls data amid continuing worries about the credit crunch. The 13-nation euro bought $1.4471 Friday, up from the $1.4462 it bought in late New York trading, but down from Wednesday's record high of $1.4503.

The U.S. currency plummeted Wednesday after the Federal Reserve's decision to cut interest rates by a quarter of a point, and has continued to suffer from market jitters about the U.S. economy driven by the sub-prime market crisis as markets looked ahead to the release of information about the October U.S. non-farm payrolls data later Friday.

In addition, the euro has been helped by sentiment that the European Central Bank has yet to finish a gradual campaign of rate increases, while the pound has benefited from expectations that the Bank of England will leave rates untouched rather than follow the Fed in cutting the cost of borrowing.

Scheduled Economic Reports (Next Week)

ISM Services Index, Productivity, Wholesale Trade, Consumer Credit, Trade, Import Prices, and Consumer Sentiment

In Earnings News

Chevron (CVX) reported third-quarter net income fell 26%. The company said profit dropped to $3.7 billion, or $1.75 a share, from $5 billion, or $2.29 a share. Analysts expected $2.07.

International Paper Co. (IP) said its third-quarter profit declined. Profit declined to $217 million, or 51 cents per share, from $224 million, or 46 cents per share, a year ago. Analysts forecast earnings per share of 57 cents.

The New York Stock Exchange (NYX) reported its third-quarter profit more than tripled. NYSE Euronext said net income surged to $258 million, or 97 cents per share, from $68 million, or 43 cents per share, a year ago.

Martha Stewart Living Omnimedia Inc. (MSO) reported a loss of $4.4 million, or 8 cents per share, versus a loss of $25.2 million, or 49 cents per share, last year. Analysts predicted a loss of 13 cents per share.

Viacom (VIA-B), which owns MTV, VH1, Nickelodeon and Paramount Pictures, earned $641.6 million, or 96 cents per share, in the three months ending in September, up from $356.8 million, or 50 cents per share, in the same period a year earlier.

Scheduled Earnings Reports (Next Week)

Disney, Ford, Cox Radio, Burger King, Anadarko Petroleum, Valero, Avis Budget Group, Cooper Tire & Rubber, Papa Johns International, Cisco Systems, Time Warner, Ballard Power Systems, Dean Foods, Public Storage

Stocks in the News

Napster Inc (NAPS) reported a second-quarter loss of $5.1 million, or 12 cents a share, compared with a loss of $9 million, or 21 cents a share, a year ago.

Unilever Plc (UL) reported a 31% increase in profits helped along by lower taxes and financing costs. Sales also increased 1%, led by growth in the Asia-Africa region.

Callaway Golf (ELY) reported a third-quarter net profit of $1.27 million, or 2 cents a share, compared with a loss of $11.9 million, or 18 cents a share, a year earlier.