The PremiereTrade Market Wrap for 11/20/07

The Commerce Department reported that housing construction rose by 3 percent in October, the first increase after three months of declines and the biggest advance since a 6 percent rise last February. Applications for building permits fell for the fifth straight month in October.

According to the eighth annual holiday-spending survey by the Consumer Federation of America and the Credit Union National Association, the highest percentage of consumers in eight years says they will ease back on holiday shopping this year, with many Americans citing rising gas and home-heating costs, plus gift prices, as top reasons for their stricter budgeting.

H&R Block Inc. (HRB) replaced Mark Ernst as chairman and chief executive officer after a yearlong effort to sell its money-losing subprime home lending unit neared collapse. Richard Breeden, the former chairman of the SEC who won a proxy fight to get on the company's board, was named chairman.

In Forex News Today

Despite calls from Iran and Venezuela - OPEC's steadfast bashers of the U.S. government - experts say there's little chance the cartel will shift from pricing oil in dollars to something like the Euro. At a summit of leaders from Organization of Petroleum Exporting Countries members in Riyadh, Saudi Arabia, over the weekend, Venezuelan head Hugo Chavez and Iranian President Mahmoud Ahmadinejad indicated the historic link between crude oil and the dollar should be severed.

The dollar fell to a record low against the euro and Swiss franc on concern credit-market losses will slow economic growth, prompting the Federal Reserve to lower interest rates again this year. Currencies in New Zealand, the U.K., Australia and Norway gained on speculation a group of six Arab nations will change their fixed exchange rates from the U.S. currency.

The rising cost of using currency options to protect returns on carry trades is helping push traders to exit the strategy, which involves borrowing in countries such as Japan where interest rates are low. Volatility implied on options for major exchange rates reached a three-month high last week. Traders use implied volatility as part of setting options prices. The yen surged against all 16 major currencies yesterday as traders dumped carry-trade bets amid concern that losses in credit markets will increase and trigger a U.S. recession.

Scheduled Economic Reports (Wednesday)

Initial Jobless Claims (Week of November 17th), Leading Indicators (Oct), Consumer Sentiment (Nov)

In Earnings News

Hewlett-Packard Co. (HPQ) reported a 28% rise in its fourth-quarter earnings as the computing and printing giant saw growth across all its main business areas, leading to revenue of $28.3 billion.

Freddie Mac (FRE) rocked the credit markets further as it reported a large loss along with an $8.1 billion drop in the value of its assets, as it set aside $1.2 billion to cover credit losses.

D.R. Horton Inc. (DHI) reported a loss in the fiscal fourth quarter from a year-ago profit, as the nation's largest homebuilder by deliveries took massive charges to write down inventory and the value of land options.

Target Corp. (TGT) reported an unexpected 4.4% decline in third-quarter profit, hurt by sluggish sales of apparel and home goods.

Office Depot Inc. (ODP) said its third-quarter profit fell 9 percent, hurt by lower consumer spending, an economic slowdown in the U.K. and higher costs in North America.

Scheduled Earnings Reports (Wednesday)

Abercrombie & Fitch, The Gap, Trans World Entertainment, Children?s Place Retail Stores

Stocks in the News

QLogic Corp (QLGC) said its chief financial officer, resigned, effective upon completion of the company's third-quarter earnings announcement in late January.

Countrywide Financial (CFC) fell after Moody's affirmed ratings on Countrywide and kept its outlook on the company at negative.

Perry Ellis International (PERY) fiscal third-quarter profit rose 3.6% to $8.53 million, or 55 cents a share, from $8.24 million, or 53 cents a share, in the prior-year period.

Tyson Foods (TSN) plans to revise labels that say its fresh chicken is ?raised without antibiotics? after the USDA said it made a mistake in approving the labels.