The PremiereTrade Market Wrap for 11/12/07

Oil prices fell more than $1 a barrel in Asia after reports that the oil exporter group OPEC would discuss increasing its output at an upcoming meeting in a bid to cool record crude prices. The next OPEC meeting is scheduled for December 5th in Abu Dhabi.

China's trade surplus jumped to a new all-time monthly high in October, despite government pledges to restrain export growth and adding to pressure for action on trade barriers and currency.

Countrywide Financial (CFC) warned in a filing that if its credit rating dropped below its current lowest rating, this would "severely," limit its access to the public corporate debt market and that could have repercussions on its business.

IBM Corp. (IBM) said it plans to buy Cognos Inc. for $5 billion in cash. The acquisition would follow similar moves in the same market this year. IBM said Cognos' portfolio will fit in its information management software division.

Airbus has scored a major victory over U.S. rival Boeing Co. (BA) with a series of major orders, worth close to $50 billion at list prices, from Middle Eastern carriers at the Dubai Aerospace Air Show. Emirates turned down the revamped version of the 747 in favor of Airbus' flagship A380.

Honeywell International Inc. (HON) said it signed a $1 billion maintenance contract with AirTran Airways (AAI) for its entire fleet through 2030. Honeywell will also be responsible for supplying avionics on up to 150 Boeing 737s. Maintenance services will be provided for all Honeywell equipment on up to 250 AirTran aircraft, including avionics, lighting, mechanical components, auxiliary power unit and wheels and brakes.

In Forex News Today

The yen sprinted to an 18-month high against the dollar as investors unwound risky carry trades due to nervousness over credit-related losses at U.S. financial firms and weak global equity markets. Worries about U.S. financial institutions' losses from the subprime mortgage crisis, and ensuing credit market turmoil, found a new focus on Friday when Wachovia reported a potential $1.7 billion loss on mortgage-related debt.

A currency strategist at Barclays Capital said the dominant theme for the FX market is risk reduction. That was translated into a reversal of carry trades, where investors borrow low-yielding currencies to fund purchases of higher-yielding assets. The analyst said we're seeing currencies like the yen and the Swiss franc appreciate whereas some of the higher-yielding, riskier currencies, like the Aussie or sterling, are selling off. Gold futures tumbled 3%, as a rebound in the U.S. dollar against most of the other major currencies gave traders reason to lock in profits following the metal's recent bullish run.

Japanese yen surged sharply higher as the week began, following tumbling Asian stock markets on concern of deepening in the credit market crisis. The MSCI Asia-Pacific Index of regional shares fell 3% today, largest drop since Aug. 17. USD/JPY reached an 18-month low. Higher yield currencies are the worst victims in carry trade unwinding with Sterling, Aussie, Kiwi and Loonie all tumbling in respective yen crosses as well as against the U.S. Dollar.

Scheduled Economic Reports (Tuesday)

Retail Chain Index (Week of Nov 10th), Federal Budget (Oct), Pending Home Sales (Sep)

In Earnings News

Blackstone Group LP (BX) reported a loss of $113.2 million, or 44 cents per share.

Tyson Foods Inc. (TSN) reported a profit of $32 million for its fourth quarter, but forecast earnings for this year below what analysts were expecting.

International Coal Group Inc. (IOC) has delayed filing its quarterly 10-Q report with the Securities and Exchange Commission and will restate earlier reports because it overstated certain items.

Scheduled Earnings Reports (Tuesday)

Linen N Things, Fossil, Home Depot, La Z Boy, Wal-Mart, Hughes Supply

Stocks in the News

Zale Corp (ZLC) said it would report proceeds, after expenses and payables outstanding, of $175 million on the sale of its Bailey Banks & Biddle brand to Finlay Fine Jewelry.

People?s United Financial (PBCT) said Chairman and Chief Executive Officer John Klein will take a temporary leave of absence to recuperate from cancer surgery.

And Lionsgate Entertainment (LGF) said its fiscal second-quarter net loss widened to $56.2 million or 47 cents a share, from $14.4 million, or 14 cents a share, in the year-earlier period.