The economy added 94,000 non-farm payroll jobs last month down from the 170,000 added in October. As a result of strong employment growth in household survey, the unemployment rate was steady at 4.7%.

Oil prices increased, as the U.S. government lobbied international powers not to back down on OPEC's second-largest producer, Iran, over its nuclear program.

December's consumer sentiment index, from the University of Michigan Consumer Sentiment Report, hit 74.5 in December, down from the prior month's reading of 76.1. Economists expected December sentiment to hit 75.0. It's the second lowest level since 1992.

Macrovision Corp. (MVSN) said it will buy television listings provider Gemstar-TV Guide International Inc. (GMST) for $2.8 billion in cash and stock.

JetBlue Airways Corp. (JBLU) will start offering limited e-mail and instant messaging services for free on one of its planes next week as airlines renew efforts to offer in-flight Internet access.

In Forex News

The yen headed for a weekly fall against 14 of the 16 most-active currencies after a rally in global stocks prompted investors to buy higher-yielding assets with funds borrowed in Japan.

The yen fell against the dollar and equity markets in Asia and Europe rose today after an announcement by U.S. President George W. Bush to freeze interest rates on some subprime mortgages, easing concern that defaults will hurt the worlds' largest economy.

Canada's dollar rose for a second day after a government report showed employers added more jobs last month than economists forecast. The currency rose 0.6 percent against the U.S. dollar.

New Zealand's dollar headed for its third straight weekly gain on the prospect interest rates will stay high as the nation's central bank battles inflation. Reserve Bank Governor Alan Bollard left the official cash rate at a record 8.25 percent yesterday, saying annual inflation may exceed the bank's 1 percent to 3 percent band until March 2009.

Scheduled Economic Reports (Next Week)

Wholesale Inventories, FOMC Meeting, Trade Balance, Import Price Index, Federal Budget, Producer Price Index, Retail Sales, Inventories, Consumer Price Index, Industrial Production, Capacity Utilization

In Earnings News

Kellwood Co. (KWD) reported a loss of $1.1 million, or 4 cents per share, versus profit of $8.1 million, or 31 cents per share in the prior year quarter.

And Palm Inc. (PALM) said it will post a net loss of 8 to 10 cents a share - excluding certain charges -- while analysts expected earnings of 4 cents a share.

Scheduled Earnings Reports (Next Week)

The third quarter earning season is coming to an end and next week?s schedule is a little short?.some of the marquee names include H&R Block, Vail Resorts, John Wiley & Sons, Cooper Companies, Kroger, CKE Restaurants, Ciena, Costco Wholesale, and Lehman Brothers

Stocks in the News

Fannie Mae (FNM) said it priced a sale of $7 billion in new preferred shares as the mortgage giant bolsters its capital after suffering subprime-related losses.

Halliburton (HAL) said Chief Operating Officer Andrew Lane is retiring and it will eliminate the position.

Yum Brands (YUM) said it expects earnings growth of at least 10% for 2008.

And Smith & Wesson (SWHC) posted a second-quarter profit of $2.94 million, or 7 cents a share, up from $2.85 million, or 7 cents a share, a year ago.

The European Central Bank held its benchmark rate unchanged at 4 percent, despite surging inflation and a stronger euro. Earlier, The Bank of England cut its key rate by a quarter of a point to 5.5 percent, worried about a slowing economy.

The Labor Department reported that applications for jobless benefits dipped by 15,000 last week to a total of 338,000. The decline was the largest since the level of claims had dipped by 22,000 in the first week of September.

The holiday shopping season got off to an uneasy start despite a big Thanksgiving weekend as consumers took advantage of big discounts and then pulled back, leaving retailers with mixed sales results for November. According to Thomson Financial, only seven merchants beat sales estimates, while 19 missed expectations.

Dell (DELL) announced that it will sell a variety of XPS and Inspiron notebooks and desktop computers through Best Buy (BBY) in the next few weeks.

Chevron (CVX) said its capital spending budget for 2008 will weigh in at $22.9 billion, up 15% from $20 billion last year.

Coca-Cola Co. (KO) named President and Chief Operating Officer Muhtar Kent to succeed E. Neville Isdell as chief executive officer in July. Kent has worked at Coca-Cola or its bottlers since 1978.

In Forex News

According to the Organization for Economic Cooperation and Development, China should let its currency rise faster to help it counter overheating in its booming economy. The OECD's latest Economic Outlook raised its forecast for China's economic growth this year to 11.4 percent, up from the earlier estimate of 10.4 percent. The economy grew 11.5 percent in the third quarter from the same period a year ago.

The report by the Paris-based OECD, an international non-governmental organization that collects and studies economic statistics and social data, said China's controls on its currency were hampering efforts to slow growth and ease inflation.

Beijing has pledged to loosen controls that keep the yuan trading in a narrow range, but says the country's developing markets and financial institutions require a stable currency. Meanwhile, the yuan has weakened against the euro, prompting complaints from EU trading partners about China's growing trade surpluses with that region. While the report did not directly criticize China's foreign exchange controls, it noted that efforts to tighten money supply to counter inflation were not having much impact.

Scheduled Economic Reports (Friday)

Non-Farm Payrolls (Nov), University of Michigan Consumer Sentiment (DEC), Consumer Credit (Oct)

In Earnings News

Toll Brothers (TOL) reported a net loss of $81.8 million, or 52 cents per share, for the three months ending Oct. 31, compared with a net income of $173.8 million, or $1.07 per share, a year ago.

And Krispy Kreme Doughnuts Inc. (KKD) said its net loss narrowed to $798,000, or 1 cent per share, compared to a net loss of $7.2 million, or 12 cents per share, a year earlier.

Eli Lilly & Co. (LLY) said it was holding onto its 2007 sales and earnings guidance and forecast 2008 earnings between $3.85 and $4 a share.

Scheduled Earnings Reports (Friday)

Kellwood Company, Star Gas Partners, Schick Technologies, C&D Technologies

Stocks in the News

Novastar Financial (NFI) said Wachovia extended until Dec. 7 a waiver of a covenant requiring the company to maintain a certain adjusted tangible net worth.

Conagra Foods (CAG) said earnings from continuing operations for the second quarter, ended Nov. 25, will be higher than planned.

And General Dynamics (GD) plans to buy back as many as 10 million, or 2.5%, of the 402 million shares outstanding.

Congressional aides say the Bush administration has hammered out an agreement with industry to freeze interest rates for certain subprime mortgages for five years in an effort to combat a soaring tide of foreclosures.

The Mortgage Bankers Association's index of applications to buy a home or refinance a loan increased 22.5 percent to 791.8, the highest level since July 2005.

Productivity in the non-farm business sector increased at a 6.3% annual rate in the quarter. A month ago, the government reported that productivity rose 4.9% annualized.

The ISM non-manufacturing index fell to 54.1% from 55.8% in October. The drop was larger than expected. Economists were looking the index to decline to 55.0%.

The Commerce Department reported that factory orders advanced by 0.5 percent in October, far better than the flat reading that had been expected.

ADP Employer Services reported that companies in the U.S. added 189,000 jobs in November, more than economists had forecast.

The Organization of Petroleum Exporting Countries decided to keep production unchanged. Reports from Abu Dhabi indicated that OPEC left output at current levels, with a meeting scheduled next month to discuss policy again.

U.S. retailers' sales rose 2.5 percent last month, starting off what may be the slowest-growing holiday shopping season in five years. Consumers scaled back purchases in the last week of November following Thanksgiving weekend discounts.

In Forex News

The British pound dropped sharply, as traders bet that the Bank of England will follow in the Bank of Canada's footsteps and cut its base interest rate tomorrow. The increasingly dovish stance in currency markets comes after measures released today showed declines in house prices, services-sector sentiment and consumer confidence.

The European Central Bank, which also decides interest rates tomorrow, isn't facing the same pressure to cut interest rates, with euro-zone inflation running at 3%.

Separately, the Australian dollar was lower against rivals after the Reserve Bank of Australia held interest rates unchanged but gave a more dovish outlook than it did in the preceding month.

According to Xinhua News Agency Reports, China will shift its monetary policy "from prudent to tight" in 2008 to prevent its already hot economy from overheating and to try to contain accelerating inflation that threatens social stability. Xinhua said the decision was made at a closed-door economic conference, which the country's Communist Party leaders hold every December to draft policy for the coming year.

Scheduled Economic Reports (Thursday)

Initial Jobless Claims (Week of Dec 1st)

In Earnings News

Sanderson Farms (SAFM) reported profit well above its year-ago results, although earnings still missed Wall Street expectations by a penny per share mainly due to squeezed margins.

Neiman Marcus, Inc. reported total revenues of $1.13 billion compared to $1.04 billion in the prior year.

And the Isle of Capri Casinos (ISLE) reported a quarterly loss of $24.6 million, or 80 cents per share. Excluding one-time items, the company posted a loss of 45 cents per share. Analysts expected a loss of 4 cents per share.

Scheduled Earnings Reports (Thursday)

Korn Ferry International, Toll Brothers, Fleetwood Enterprises, Hooker Furniture, Movado Group, Dave & Busters, and Smith & Wesson

Stocks in the News

Collective Brands? (PSS) fiscal third-quarter net income fell to $25.5 million or 39 cents a share, from $28.9 million, or 43 cents a share, a year earlier.

Intel (INTC) was upgraded to overweight from market weight with the broker seeing PC strength and benign selling price pressure next year.

Prudential Financial Inc (PRU) and India's real-estate developer DLF Group agreed to form a joint venture in Mumbai.

According to a survey from the International Council of Shopping Centers and UBS Securities, chain-store sales for the week ended Dec. 1st rose 3.1% from the year-ago period. On a week-over-week basis, sales dropped 2%.

Oil prices rose a bit today as investors placed bets on whether OPEC oil ministers would increase production during a meeting later this week. High prices were supported by comments from Iranian President Mahmoud Ahmadinejad that he opposes a production increase by the Organization of Petroleum Exporting Countries, as well as Libya's oil chief who said he does not think the cartel will raise output.

Yahoo Japan Corp. and eBay Inc. (EBAY) agreed to team up in online auctions, planning services for next year that will make it easier for consumers to buy things over the Internet from the U.S. and Japan. The move marks a return to Japan of eBay, which pulled out of the market in 2002.

Dow Chemical Co. (DOW) will close several operations, cutting 1,000 jobs, as part of its effort to improve the cost effectiveness of its global operations.

Cerberus Capital Management LP and H&R Block Inc. (HRB) announced they terminated their agreement for Cerberus to purchase H&R Block's mortgage subsidiary, which has now stopped accepting new mortgage applications.

In Forex News

The yen rose against the dollar and euro after comments from U.S. Treasury Secretary Henry Paulson failed to revive credit-market confidence, prompting traders to sell higher-yielding assets bought with loans from Japan. The yen advanced against 15 of the 16 most-active traded currencies after equity markets in Europe and Asia fell and U.S. stock-index futures slipped.

The euro was up against the dollar and the pound after a report showed European producer-price inflation accelerated in October to the fastest pace this year, stoking speculation the European Central Bank won't be able to cut interest rates.

The Bank of Canada said it's cutting its target rate by a quarter-point to 4.25%, citing inflation figures that were below expectations and downside risks to the bank's inflation projection. Officials said that global financial market difficulties related to the valuation of structured products and anticipated losses on U.S. sub-prime mortgages have worsened since mid-October, and are expected to persist for a longer period of time.

Scheduled Economic Reports (Wednesday)

Productivity (Q3), ISM Non-Manufacturing (Nov), Factory Orders (Oct)

In Earnings News

Nokia (NOK), the world's biggest maker of mobile phones, raised its forecast for profit margins while predicting a further decline in selling prices next year.

Merck & Co. (MRK) forecast higher profit for next year as it plans to boost sales of its cervical cancer vaccine and diabetes pill to offset lost revenue to cheaper generic competition.

AutoZone Inc. (AZO) said fiscal first-quarter earnings rose 7 percent on an increase in sales, particularly of parts with high profit margins.

Sanderson Farms Inc. (SAFM) said its fourth-quarter profit more than doubled due to higher chicken prices.

Scheduled Earnings Reports (Wednesday)

Casella Waste Systems, Neiman Marcus, Casey?s General Stores, Novell

Stocks in the News

Philips-Van Heusen?s (PVH) third-quarter net income rose to $60.8 million, or $1.05 a share, from $50.8 million, or 89 cents a share, in the prior-year period

AFC Enterprises (AFCE) named a director, John Cranor, chairman to succeed Frank Belatti, who is retiring.

Tower Semiconductor (TSEM) said that in an effort to increase profitability, it would cut jobs, diversify its sources of materials and parts.

U.S. manufacturing expanded in November as new orders and production improved, but the pace of growth was a touch weaker than the prior month. The Institute for Supply Management reported that its manufacturing index registered 50.8 last month, down from 50.9 in October.

If you've got a 7% adjustable mortgage that's about to skyrocket past 10%, getting a break may get a lot easier. One solution to the foreclosure problem gaining traction would freeze rates at lower levels. The Hope Now Alliance, coalition of lenders, servicers, investors and community groups, put together by the Treasury Department, is working on a version of a freeze that could be announced later this week.

Lennar Corp. (LEN) has sold a property portfolio to a new venture mostly owned by an affiliate Morgan Stanley (MS) for $525 million. As part of the deal, Lennar sold the entity about 11,000 home sites. The properties had a book value of about $1.3 billion.

Oil prices fell about $1 a barrel in a volatile market on speculation that OPEC may still boost output at this week?s meeting.

Lehman Brothers (LEH) said it plans to re-brand its Australian business, Grange Securities, to Lehman Brothers Australia as it seeks to build its brand name in the fast-growing region. It will also rename its Grange Asset Management arm Lehman Brothers Asset Management.

In Forex News

The yen rebounded from a two-week low against the dollar after Moody's Investors Service said it is preparing the biggest credit-rating cuts since subprime-mortgage defaults rocked financial markets.

The yen rose versus all 16 most-traded currencies as investors retreated from carry trades and sold higher-yielding assets bought with loans from Japan. The yen also advanced as Bank of Japan Governor signaled interest rates may have to rise.

At a time when everyone from billionaire investors such as Warren Buffett and Bill Gross to celebrities all want nothing to do with the dollar, a growing number of strategists say the stage is being set for a rally in 2008.

The U.S. budget and trade deficits are narrowing in tandem for the first time since 1995, when the currency gained 8 percent as measured by the Federal Reserve's U.S. Trade Weighted Dollar Index.

Scheduled Economic Reports (Tuesday)

None Scheduled

In Earnings News

MetLife (MET) forecast quarterly operating earnings per share between $1.40 and $1.45, up from $1.36 per share in the fourth quarter of 2006. Analysts expected $1.43 per share.

UnitedHealth Group (UNH) said it expects 2007 profit between $3.49 and $3.50 per share.

CH Energy Group (CHG) lowered its full-year earnings to the range of $2.50 to $2.70 a share.

Scheduled Earnings Reports (Tuesday)

AutoZone, Chico?s FAS, Layne Christensen, Payless ShoeSource, Sanderson Farms, Photronics

Stocks in the News

Activision (ATVI) traded higher after Vivendi said it will buy control of the videogame giant and merge its own game division into ATVI.

Jakks Pacific (JAKK) said the U.S. District Court for the Southern District of New York would dismiss a complaint filed against it by World Wrestling Entertainment Inc.

Goodrich Petroleum (GDP) launched a public offering for 5.2 million shares.

According to the Chicago purchasing managers' index, most firms in the Chicago region were growing in November. The index improved to 52.9% in November from 49.7% in October.

The Commerce Department reported that consumer spending edged up 0.2 percent in October, the weakest showing since a similar increase in June. Individual incomes grew by just 0.2 percent last month, the poorest showing in six months. A gauge of core inflation tied to consumer spending edged up just 0.2 percent in October and is up only 1.9 percent over the past year.

Federal Reserve Chairman Ben Bernanke gave investors more reason to believe further interest rate cuts are on the way. In a speech late Thursday, Bernanke said tight credit conditions, the housing slump and high energy prices will probably create some "headwinds for the consumer in the months ahead."

Spending on U.S. construction projects resumed a decline in October, reversing two months of gains as outlays on homes and other private building projects fell. September's gain was previously estimated to be 0.3%.

ConocoPhillips (COP) said it submitted a proposal to develop a pipeline in Alaska that would transport about 4 billion cubic feet per day of natural gas to the United States and Canada. The company said it is "prepared to make significant investments, without state matching funds, to advance this project."

In Forex News

The yen fell against the dollar after a rally in global stocks prompted investors to buy higher- yielding assets with funds borrowed in Japan through a practice known as the carry trade.

The dollar headed for a third monthly decline against the euro as traders started to bet the Fed will lower the target overnight lending rate between banks by as much as half a percentage point next month to bolster economic growth. Also, the U.S. Dollar Index was set for a third monthly loss as the six members of the Gulf Cooperation Council that includes Saudi Arabia may consider relaxing their fixed exchange rates to the U.S. currency at a meeting in Qatar starting Dec. 3rd.

China's yuan had the biggest monthly gain since a link to the dollar was scrapped in July 2005 as European and U.S. officials stepped up a diplomatic offensive to seek faster appreciation. The Chinese currency strengthened this week as European Central Bank President Jean-Claude Trichet led a delegation that met leaders in Beijing to push for faster appreciation in the yuan.

Scheduled Economic Reports (Next Week)

ISM Manufacturing and Services Index (Nov), Productivity (Q3), Factory Orders (Oct), Non-Farm Payrolls (Nov), Consumer Sentiment (Dec)

In Earnings News

Dell (DELL) earned $766 million, or 34 cents per share, in the three months ended Nov. 2nd. Analysts were expecting the company to post profits of 35 cents.

Tiffany & Co.'s (TIF) said net income climbed to $98.9 million, or 71 cents per share.

Mentor Graphics (MENT) reported a third-quarter loss of $9.2 million, or 10 cents a share, from a year-earlier profit of $2.5 million, or 3 cents a share.

OmniVision Technologies (OVTI) fiscal second-quarter net income rose to $20.5 million, or 36 cents a share.

Scheduled Earnings Reports (Next Week)

Guess, Isle of Capri Casinos, Readers Digest, AutoZone, Layne Christensen, Payless Shoes, Sanderson Farms, Novell, Korn Ferry International, and Toll Brothers

Stocks in the News

Freddie Mac (FRE) priced its $6 billion fixed-to-floating rate non-convertible non-cumulative perpetual preferred stock at $25 a share.

McDonald?s (MCD) said it named Neil Golden chief marketing officer of McDonald's USA, effective April 1st.

And Morgan Stanley (MS) said Zoe Cruz is retiring as co-president.

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.

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.

Prices of existing U.S. single-family homes slumped 4.5 percent in the third quarter from a year earlier, matching a record decline from the previous period as the housing downturn deepened.

Consumer confidence dropped to the lowest in two years in November as Americans struggled with surging fuel costs and falling home prices, economists project reports today will show. The consumer confidence index fell to 87.3 from 95.2, well below the 90.2 expected by economists.

The International Council of Shopping Centers-UBS Retail Chain Store Sales Index decreased by 0.1% in the week ended Nov. 24th from its level in the week before, on a seasonally adjusted, comparable-store basis.

According to a report compiled for the U.S. Conference of Mayors, rising foreclosures will lead to billions of dollars in lost economic activity next year in the nation's major metropolitan areas, but homeowners and financial institutions have the ability to work together to contain the effects. The report also stated that the current housing problem will drive down property values by $1.2 trillion next year and slash tax revenue by more than $6.6 billion.

Oil prices continued to fall on growing expectations that OPEC ministers will raise crude production following a meeting next week. Many traders believe Saudi Arabia is pushing for production increases against opposition from Iran, Venezuela and other OPEC members.

Sirius Satellite Radio Inc. (SIRI) announced that Ford Motor Co. (F) is looking to have its satellite radio services in approximately 70 percent of Ford and Mercury 2009 vehicles next year. More than 1 million Ford, Lincoln and Mercury cars have already shipped with factory-installed Sirius radios.

In Forex News

The premium for options on major economies' currencies over emerging ones fell from a four-year high as risk aversion increased amid speculation subprime mortgage-related losses will widen.

Emerging currency volatility is picking up relative to the majors amid concern a spreading economic slowdown will slow demand for the region's assets. Currencies in emerging countries, such as Brazil, have appreciated against the dollar this year. The swings in their exchange rates have trailed those of major currencies since September, when the Federal Reserve began cutting its benchmark overnight interest rate.

The dollar gained on the euro after last week's record lows as investors looked for clues as to what the European Central Bank might due with interest rates next week. In Asia, the dollar strengthened against the Japanese currency. Japanese authorities say the economy is recovering but are alert for possible fallout from the U.S. subprime mortgage crisis and high oil prices.

Scheduled Economic Reports (Wednesday)

Durable Goods (Oct), Existing Home Sales (Oct)

In Earnings News

Staples (SPLS) said net income for the three-month period ended Nov. 3rd was $274.5 million, or 38 cents per share.

American Eagle Outfitters Inc. (AEO) net income fell to $99.4 million, or 45 cents per share, from $100.9 million, or 44 cents per share in the prior year quarter.

Casual Male Retail Group Inc. (CMRG) reported a loss of $3.8 million, or 9 cents per share.

Scheduled Earnings Reports (Wednesday)

Jo-Ann Stores, TiVo, Coldwater Creek, Dollar Tree Store, Men?s Warehouse

Stocks in the News

Intuit Inc (INTU) will purchase Homestead Technologies Inc. for about $170 million.

Dick?s Sporting Goods (DKS) said it plans to buy closely held Chick's Sporting Goods for about $40 million.

Yahoo Inc (YHOO) said it had been suffering outages of its hosted online-shopping services during one of the busiest days of the year for Internet commerce.

Pulte Homes (PHM) affirmed its fourth-quarter pre-impairment earnings and cash-position outlooks, despite a weak housing market.

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.

Slower growth for the economy may be on the horizon, continuing after the holidays, the Conference Board said, reporting that a gauge of future economic growth fell 0.5% in October. Only three of the 10 leading economic indicators rose in October, with the largest positive contribution from stock prices.

First-time seasonally adjusted claims for state unemployment benefits fell in the latest week. The number of initial claims in the week ending Nov. 17th fell 11,000 to 330,000. Wall Street economists had expected claims to hit 330,000. Jobless claims in the previous week were revised to 341,000.

Toyota Motor Corp. (TM) announced that it has raised its 2007 sales projection for China on solid sales of small cars and aims to sell even more vehicles there next year. Toyota may be on track to beat General Motors Corp. as the world's top automaker as soon as the end of the year.

U.S. Treasury Secretary Henry Paulson said the number of potential U.S. home-loan defaults "will be significantly bigger" in 2008 than in 2007.

Standard & Poor's expects the U.S. Federal Reserve to cut interest rates to 3.5 percent in 2008 to deal with the fallout from the housing market.

Friday is the biggest shopping day of the year ? Black Friday. Retail experts predict that high energy prices and credit woes may curtail the urge to shop like crazy during the holiday season. Some retail analysts believe people who have money are going to spend at least some of it on holiday goods but that might not happen until after "Black Friday.?

In Forex News Today

The yen rose to the highest level in more than two years against the dollar on concern widening credit-market losses and record fuel costs will slow global economic growth.

Currencies in Australia, South Africa, Brazil and New Zealand tumbled at least 2.4 percent versus the yen as investors exited higher-yielding assets funded by loans in Japan. The dollar rebounded from a record low against the euro as traders sought safety in Treasuries. Global stocks fell, crude oil rose above $99 a barrel and the cost to borrow dollars increased.

Australia's dollar declined 3.3 percent to 94.89 against the yen, extending this month's decline to 12 percent. New Zealand's dollar weakened 2.4 percent to 82.11 yen and South Korea's won declined 2.3 percent.

The dollar was little changed against the euro, after falling earlier to the lowest level since the European currency started trading in 1999. The U.S. currency gained the most against the Australian dollar and South African rand, rising 2.1 percent and 1.6 percent, respectively.

The pound weakened to the lowest level since 2003 against the euro and fell versus the dollar on speculation the Bank of England may start cutting borrowing costs from 5.75 percent as soon as next month. The pound fell 0.4 percent while losing 0.3 percent to versus the euro.

Canada's dollar fell 0.8 percent to 98.75 Canadian cents per U.S. dollar and has dropped from 90.58 cents on Nov. 7, the highest level since Canada floated the currency in 1950.

Scheduled Economic Reports (Next Week)

Consumer Sentiment, Durable Goods, Existing Home Sales, Gross Domestic Product, New Home Sales, Personal Income & Spending, Chicago PMI, Construction Spending

In Earnings News

Deere & Co.'s (DE) reported that net income increased to $422.1 million or $1.88 a share. Analysts expected $1.52 a share.

Abercrombie & Fitch (ANF) reported that its profits rose 15 percent. Abercrombie said it made $118 million, or $1.29 per share.

Patterson Cos. Inc. (PDCO) said its second-quarter profit rose more than 11 percent, but the results did not meet Wall Street's expectations.

Scheduled Earnings Reports (Next Week)

Talk America, Skillsoft, Books A Million, American Eagle Outfitters, Staples, Dollar Tree Stores, Men?s Warehouse, TiVo, Del Monte, Dell, HJ Heinz, Smithfield Foods

Stocks in the News

Par Pharmaceutical (PRX) filed revised earnings reports for the first and second quarters and raised its earnings estimate for the year.

Foot Locker Inc (FL) a third-quarter loss of $33 million, or 22 cents a share, from a profit of $65 million, or 42 cents a share.

Mead Westvaco Corp (MWV) entered an agreement with Goldman Sachs to buy back $400 million of stock.