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Today's Market WrapUp 11.21.2007 Mon Tue Wed Thu Fri Panzner Archive Some
Might Say: "Thanks for What?" This morning, the Conference Board reported that its Index of Leading Economic Indicators fell by a worse-than-expected 0.5%. The year-on-year percentage change came in at -0.5%, not far off the six-year low of -0.6% seen last February. While some analysts discount the indicator’s predictive value, a chart comparing the LEI to U.S. Gross Domestic Product nonetheless suggests that the outlook for the economy remains less-than-sanguine.
For Americans investing overseas, the continuing slide in the dollar has been a boon, helping to turbocharge returns from various markets, many of which have also been very strong in nominal terms. However, for those foreigners who’ve been dabbling in U.S shares, it hasn’t been a particularly rewarding experience. What might appear to be a bullish breakout when seen through the eyes of a domestic investor looks a lot like an uninspiring correction in a bear market to those based elsewhere.
Many Americans are cynical about the veracity of government-reported inflation data, whether it is of the headline or “core” variety. Given the latest reading on the average price of a Thanksgiving turkey dinner, they might have good reason. According to the American Farm Bureau Federation, the cost to feed 10 people in 2007 is $42.26, up 10.9% from last year and the biggest year-on-year increase in over a decade.
Stocks finished near the day’s lows in choppy trading, as continuing weakness in financials, profit-taking in energy shares, and worries over the health of the economy weighed on prices. Big losers among financial shares included Countrywide Financial (-8.37%), MBIA (-8.32%), CIT Group (-6.88), Janus Capital (-6.13%) and T. Rowe Price (-6.12%). Patterson Cos, a distributor of dental, veterinary, and rehabilitation supplies, declined 23% after a profit warning. December gold futures rose $7.20 to $798.60 and the U.S. Dollar index drifted slightly lower. Ten-year Treasury bond yields lost 9 basis points to 4.01%. Michael Panzner Copyright © 2007 All rights reserved. CONTACT
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