The PremiereTrade Market Wrap for 11/28/07

Federal Reserve Vice Chairman Donald Kohn said recent market ``turbulence'' may reduce credit to businesses and consumers, suggesting he sees higher risks to economic growth than a month ago. Kohn's remarks indicate the performance of credit markets since the October Federal Open Market Committee meeting has shaped his outlook for growth and inflation.

The Commerce Department reported that orders for durable goods declined 0.4 percent last month, a weaker showing than expected.

Sales of existing homes fell further in October even as more homes came on the market, driving the supply of homes to the highest level in 22 years. The National Association of Realtors reported sales dropped 1.2% to a 4.97 million seasonally adjusted annualized pace in October.

Freddie Mac's (FRE) planned sale of $6 billion in special stock to help shore up its battered finances will be closely watched by investors gauging the damage inflicted by the turmoil this year in the credit and housing markets.

American consumers jammed online shopping sites on Monday, the official start of the holiday season for e-tailers, resulting in robust sales. Consumers spent $733 million online on Monday, a 21 percent gain from the same day a year ago. Analysts had expected that sales would exceed the $700 million figure.

According the trade group Mortgage Bankers Association's weekly application survey, mortgage application volume fell 4.3 percent during the week ending Nov. 23.

Al Hubbard, chairman of President Bush's National Economic Council, announced that he's leaving his post, joining a growing line of top presidential advisers exiting the White House as the Bush administration heads into its final year.

In Forex News

The dollar gained strength following the release of a consumer data report that showed the fourth consecutive month of slipping consumer confidence in Germany, Europe's largest economy.

The euro hit an all-time high on Friday, the latest in a string of recent records triggered by worries about credit and instability in the United States. A research group reported that consumer confidence in Germany fell for the fourth consecutive month despite the end-of-the-year holiday season, driven by fears surrounding the strong euro and high prices. That, and other economic developments, has led to speculation that the ECB will leave rates unchanged at its next meeting -- supporting the dollar.

The dollar fell versus the yen in Asia as short-term investors sold the greenback after a drop in Japanese stocks. The U.S. dollar climbed in early trade above 109 yen for the first time since last week but then dropped back a bit. Japanese stocks' failure to build on Wall Street's overnight gains prompted players to sell the U.S. currency for yen to cut their risk. Selling by Japanese exporters also pushed the dollar lower.

Scheduled Economic Reports (Thursday)

Initial Jobless Claims (Week of Nov 24th), Gross Domestic Product (Q3), New Home Sales (Oct)

In Earnings News

Brown Shoe Company?s (BWS) net income for the quarter rose less than 1 percent to $27 million, or 61 cents per share.

CBRL Group (CBRL) net income for the quarter ended Nov. 2 fell to $13.9 million, or 57 cents per share.

Pep Boys - Manny, Moe & Jack (PBY) said it cut approximately 550 jobs and closed 31 stores as part of a five-year restructuring plan, while its third-quarter loss widened partly on declining merchandise sales.

Scheduled Earnings Reports (Thursday)

Dell, H.J. Heinz, Sears Holdings, American Woodmark, Del Monte Foods, Smithfield Foods, Michael?s Store, Wet Seal, Bon-Ton Stores

Stocks in the News

Analog Devices Inc (ADI) reported fourth-quarter net income fell 29% to $97.9 million, or 31 cents a share, from $138.4 million, or 39 cents, in the year-ago quarter.

Wells Fargo (WFC) will set aside $1.4 billion during the fourth quarter to cover higher losses on home-equity loans caused by deterioration in the real estate market.

Target Corp (TGT) traded higher after Moody's Investors Service downgraded the retailer's long-term rating on debt.