Market Summary 10-11-07 "Pummelled"

Index	Last	Change	% Chg
DJ Industrials	14015.12	-63.57	-0.45%
Nasdaq Comp	2772.2	-39.41	-1.40%
S&P 500	1554.41	-8.06	-0.52%
DJ Wilshire 5K	15706.85	-91.38	-0.58%
Russell 2000	834.98	-10.21	-1.21%
Nasdaq 100	2140.92	-36.06	-1.66%
Issues	NYSE	Nasdaq	Amex
Advancing	1,271	893	512
Declining	2,050	2,075	684
Unchanged	84	143	84
Total	3,405	3,111	1,280
New 52 Wk High	383	200	203
New 52 Wk Low	35	54	39
Futures	Last
Crude Oil	83.08
Natural Gas	6.87
Gold, Dec.	752.4

COMMENTS:
tr.v. pum·meled also pum·melled, pum·mel·ing also pum·mel·ling, pum·mels also pum·mels

Verb

1.

pummel - strike, usually with the fist; "The Nasdaq pummeled the investor" ; deal a blow to, either with the hand or with an instrument; "Mr Market hit her hard in the face"

From Briefing.com:

Moving the Market		Sector Watch
Wal-Mart raises Q3 EPS guidance Weekly initial jobless claims down to 308k (consensus 315k); August trade deficit down to $57.6 bln from $59.0 bln July Tech sector sells off, carries market lower European Central Bank member warns of European inflation risk		Strong: automobile manufacturers; auto parts & equipment; agriculture products; fertilizer & agriculture; hypercenters & supercenters; gold; tires & rubber; education services; drug retail; apparel retail Weak: internet retailers; IT consulting & other services; department stores; diversified metals & minerals; real estate management & development; steel; apparel & accessories; semiconductors; home entertainment software; insurance broker

Reportedly, the sell-off was prompted by inflation warnings made by Axel Weber, a European Central Bank Council (ECB) member. Weber stated that although the ECB has temporarily paused its rate hikes, in his opinion the ECB may need to raise rates to a "restrictive" level due to European inflation risks.

Market participants used Weber's comments as a reason to take profits, which shouldn't be a complete surprise. After all, the indices have made a remarkable, and unsustainable, run off their lows since August 16. To this point, at their highs today, the Nasdaq, Russell 2000, S&P 500 and Dow, were up 17%, 16%, 15% and 13% from their August 16 lows.

The Dept. of Energy weekly inventory report showed that crude had a draw compared to an expected build. Crude oil futures were already trading up on supply concerns and then had further gains following the report. Crude oil finished the day up 2.0% to $82.91. OIH popped but fell off, still holding a gain into the close of 0.5%

Wal-Mart (WMT 46.87, +1.28 ) reported weaker than expected same-store sales, but still raised its third quarter earnings per share guidance. Caused a quick morning spike in RTH, nice, albeit short-lived.

Tomorrow's Possible Market Movers:

• Sept. retail sales and PPI reports will be released
• Univ. of Mich. Consumer Confidence for October
• General Electric reports its third quarter earnings before the open
• Fed’s speaking: Bernanke, Fisher, Yellen, Kohn speaking and (HRL)