The PremiereTrade Market Wrap for 11/26/07

JDfn™ - The PremiereTrade Market Wrap

According to a UBS poll, investor optimism about the outlook for U.S. financial markets fell this month to the lowest since September 2005 after concern grew that the world's biggest economy is headed into a recession. The Index of Investor Optimism dropped to 44 in November from 70 last month.
The Federal Reserve Bank of New York announced it will conduct a series of term repurchase agreements that will extend into the New Year "in response to heightened pressure in money markets for funding through the year-end." The first operation will be arranged and settle on Nov. 28th and mature on Jan. 10th next year for an amount of about $8 billion.
There are news reports that Citigroup (C), the top U.S. bank by assets, is planning major job cuts over the coming months. No exact number had yet been set, though some jobs were already being eliminated but it is estimated that the cuts could total anywhere between 17,000 and 45,000.
Prospective buyers of online brokerage E*Trade Financial (ETFC) are battling over the value of its weakening mortgage portfolio. Analysts have previously said E*Trade will have to pursue strategic alternatives, such as a deal of some assets, after large losses in its mortgage business.
Sears Holdings Corp. (SHLD) is considering a tender offer to buy Restoration Hardware Inc. for $6.75 per share but said it is prohibited by the company's refusal to provide confidential information.
Defying concerns about gasoline prices and macro-economics, shoppers gave U.S. retailers some relief after initial sales and traffic from Black Friday weekend indicated a solid start to their biggest selling season. Sales on Black Friday rose 8.3% to an estimated $10.3 billion.
In Forex News
The euro rose slightly against the U.S. dollar as traders consolidated their positions following a volatile week that saw new highs daily for the 13-nation currency. The euro, the pound and other currencies have been climbing steadily against the dollar since August amid fears for the health of the U.S. economy, stoked by the subprime credit crisis.
The dollar has been further weakened by interest rate cuts, which can be used to jump-start an economy, but can also weaken a currency as investors transfer funds to countries where they can earn higher returns. The Federal Reserve has already cut rates twice and speculation is growing that as the subprime fallout continues, it will be forced into another cut.
Markets remain in narrow range as the quiet start of the week continues. Some volatility is seen in the Japanese yen following a strong Asian stock market and after news that China is going to invest a portion of its Foreign Exchange reserves in Japanese stocks. But the impact is expected to be brief and volatility in the yen is anticipated to decrease after European stocks markets turn flat at the beginning of the week.
Scheduled Economic Reports (Tuesday)
Retail Chain Index (Week of Nov 17th), Housing Starts (Oct), Building Permits (Oct)
In Earnings News
SkillSoft PLC (SKIL) reported net income in the quarter ended Oct. 31 fell to $6 million, or 6 cents per share, from $7.1 million, or 7 cents per share, in the year-ago period.
TAT Technologies Ltd. (TATTF) third-quarter earnings rose to $26.1 million, or $3.98 per share, from $1.7 million, or 27 cents per share during the same quarter a year ago.
Newell Rubbermaid (NWL) cut back its sales targets for the fourth quarter and year, but maintained its profit view, as it struggles with weakness in the office products retail market.
Scheduled Earnings Reports (Tuesday)
Staples, American Eagle Outfitters, Jackson Hewitt Tax Services, Dress Barn, Pep Boys, Talbots, Marvell Technology
Stocks in the News
Sony (SNE) traded higher after Dubai International Capital, a unit of Dubai Holding, said it bought a stake in the Tokyo entertainment giant.
Rio Tinto (RTP) said it would lift the dividend in 2007, 2008 and 2009, increase its divestment target by more than 50%.
Countrywide Financial (CFC) has turned to the Federal Home Loan Bank in Atlanta as its major source of funding and the bank?s borrowing stands at $51.1 billion.
Freddie Mac (FRE) is expected to announce a share offering of as much as $5 billion early this week.