The PremiereTrade Market Wrap for 11/16/07

The output of the nation's factories, mines and utilities fell 0.5% in October, the biggest decline since January. The factory sector was weak across the board, with civilian aircraft as one of the few bright spots. Factory output fell 0.4%. Capacity utilization - a gauge of inflationary pressures -- fell to 81.7% from 82.2%.

Cisco Systems Inc. (CSCO), the world's largest network equipment company, said Friday it plans to buy back up an additional $10 billion of its shares, expanding its total stock repurchase program to $62 billion. As of Sept. 7, the company had about 6.09 billion shares outstanding.

Royal Caribbean Cruises Ltd. (RCL) said it will apply a fuel surcharge of $5 per person per day on some of its voyages due to rising fuel prices. It will be effective on voyages departing on Feb. 1, 2008.

AT&T Inc. (ATT) said it completed its acquisition of Dobson Communications Corp., a provider of wireless communications services under the Cellular One brand. The acquisition extends AT&T's coverage area in rural and suburban areas in 17 states.

Google (GOOG) may be preparing to bid on wireless spectrum at a Federal Communications Commission auction in January, paving the way for creation of its own mobile network.

In Forex News Today

U.S. Treasury Secretary Henry Paulson expects more of the losses in the U.S. mortgage industry that have hit the dollar, but predicted a long-term recovery for the battered currency. Paulson was in South Africa to address a U.S.-Africa business summit and for a weekend meeting of finance ministers and central bankers from the G20 group of developed and big developing nations. The dollar has suffered in past months, as losses in the U.S. mortgage industry have led the U.S. Federal Reserve to cut interest rates to protect economic growth.

Some hawkish comments were delivered by Fed officials today. Fed Governor Randall Kroszner said that economic indicators in the coming months will reflect a "rough patch" However, that is not enough to guarantee additional rate cuts. Poole said that Fed must lead, but not follow the markets on rate policy. Even though subprime problem take time to resolve, he doesn't expect a recession yet and he doubts the need for more rate cuts.

The dollar and yen fell as an increase in U.S. stocks made investors more comfortable holding higher-yielding currencies. Canada's dollar rose from a five- week low as prices of the nation's commodity exports increased, boosting the currency's appeal. Crude oil exceeded $95 a barrel after Venezuela's oil minister said OPEC shouldn't increase production at its next meeting in December. Gold also advanced. Commodities account for about half of Canada's exports.

Scheduled Economic Reports (Next Week)

Home Builders? Index (Nov), Housing Starts (Oct), Consumer Sentiment (Nov), Leading Indicators (Oct)

In Earnings News

FedEx Corp. (FDX) cut its earnings expectations for the fiscal second quarter and full year, citing soaring fuel costs and a troubled U.S. freight market. FedEx expects to earn $1.45 to $1.55 per share, compared with a previous forecast of $1.60 to $1.75 per share.

Starbucks Corp. (SBUX) fell in morning trading after the coffee-shop operator posted a rise in quarterly profit, but trimmed its fiscal-year forecast.

AnnTaylor Stores Corp. (ANN) said fiscal third-quarter profit rose to $40.8 million, or 66 cents per share. Analysts expected 60 cents.

The J.M. Smucker Co. (SJM) net income for the quarter ended Oct. 31 climbed to $50.2 million, or 87 cents per share. Analysts expected 91 cents.

Scheduled Earnings Reports (Next Week)

Barnes & Noble, Perry Ellis International, Nordstrom, Benihana, Campbell Soup, Lowes Companies, Borders, Limited, Hot Topic, Target, Zale, Abercrombie & Fitch, Deere & Co., Krispy Kreme

Stocks in the News

BP Plc (BP) intends to sell its U.S. convenience stores over two years.

Intuit?s (INTU) fiscal first-quarter net loss narrowed to $20.8 million or 6 cents a share, from the year-earlier $58.9 million, or 17 cents a share.

Jack in the Box (JBX) fourth-quarter net income fell to $27 million or 43 cents a share, from $33.2 million, or 46 cents a share.