The PremiereTrade Market Wrap for 11/29/07

A Department of Commerce report showed that new home sales rose 1.7 percent, but lower than expected, to an annual rate of 728,000 units in October from a revised 716,000 unit rate in the previous month. Economists had expected sales to come in at 750,000.

The Labor Department reported that new applications filed for unemployment insurance rose by a seasonally adjusted 23,000 to 352,000. It was the highest level since Feb. 10th.

The U.S. economy expanded at the fastest pace in four years in the third quarter, growing at a real annual rate of 4.9%. The upward revision to gross domestic product was due to larger inventory building and a better trade balance. It was in line with Wall Street expectations.

U.S. fixed-rate mortgages fell again in the latest week. The national average interest rate on the benchmark 30-year, fixed-rate loan averaged 6.10%
in the week ending Thursday.

U.S. foreclosure filings nearly doubled in October from the same month last year, the latest sign many homeowners are falling behind on mortgage payments and increasingly losing their homes.

E-Trade Financial Corp. (ETFC) disclosed it is getting a $2.5 billion capital infusion from a group led by Citadel Investment Group and said Mitchell H. Caplan has stepped down as its chief executive.

In Forex News

The dollar rose as investors bet that the likelihood of more U.S. interest rate cuts will help avoid a recession and attract more dollar-positive inflows into the U.S. equity market. Traders said moves were exaggerated by low liquidity, with some currency investors -- especially those who are in profit for 2007 so far -- showing reluctance to take new positions.

Canada's dollar fell the most in almost two weeks on signs currency appreciation has damped exporter competitiveness, slowing economic growth. A government report showed today Canada's current-account surplus at its lowest since third quarter 2003.

Goldman Sachs Group Inc. said the top trade for 2008 will be selling the dollar against a basket of currencies from Malaysia, Singapore and Taiwan as Asian central banks allow faster currency appreciation. Goldman, in its annual selection of the top 10 trades, also recommended that investors sell the pound against the yen as U.K. growth slows, pushing the Bank of England to cut its benchmark interest rate from 5.75 percent. Goldman?s Chief Economist believes the dollar's decline has reached a limit.

Scheduled Economic Reports (Friday)

Personal Income & Spending (Oct), Core Inflation (Oct), Chicago PMI (Nov), Construction Spending (Oct)

In Earnings News

Sears Holdings Corp. (SHLD) reported a 99 percent drop in third-quarter profit on weak sales at its Sears and Kmart department stores. For the first three quarters, profits were $394 million, or $2.66 per share.

H.J. Heinz Co. (HNZ) reported net income rose to $227 million, or 71 cents per share, for the three months ended in October.

Smithfield Foods Inc. (SFD) said its fiscal second-quarter profit dropped 61 percent. For the quarter ended Oct. 28th, net income fell to $17.4 million, or 13 cents per share.

TiVo Inc.'s (TIVO) narrower third-quarter loss is a welcome sign of progress for the maker of digital video recorders. TiVo on said posted a loss of $8.2 million, or 8 cents per share. Analysts expected a loss of 13 cents per share.

Scheduled Earnings Reports (Friday)

Big Lots, Kirklands, Tiffany, Eagle Broadband, Krispy Kreme Doughnuts

Stocks in the News

General Motors (GM) was upgraded to peer perform from underperform at Bear Stearns, with the broker citing a more balanced near-term risk/reward ratio.

Anadarko Petroleum (APC) said it increased its fourth-quarter and full-year production outlook.

Men's Warehouse (MW) reported its third-quarter net income rose from a year ago but issued a profit projection that fell short of Wall Street's target.