Daytrading, Eminis, Forex trading, Swing Trading MARKET ANALYSIS - 493276

A significant decrease in the weekly claims for unemployment benefit should encourage market participants to expect healthier payroll numbers for November.However, oil's recent climb and nervousness over the Bureau of Labor Statistics' monthly non-farm payroll report could keep the markets range bound with a slight negative bias. The major U.

S. averages spent most of Wednesday's session in negative territory following two consecutive sessions of gains. The Dow Industrials declined 22.

35 points or 0.18% to 12,309. The Nasdaq Composite fell 6.

52 points or 0.27% to 2,446 and the S P 500 Index lost 1.86 points or 0.

13% to 1,413. Gold prices took a tumble on Wednesday sending the Amex Gold Bugs Index down by 1.70%.

With the retreat, the Dow Industrials has moved further away from its all time closing record of 12,343. The index is about 0.27% lower than the level, but it has gained about 14.

85% in the year-to-date period. Given the fact that December is a very good period for the markets, one can expect the major averages to end the year with handsome gains. Positive sentiment and window dressing are the two main reasons for the outperformance during this point of the year.

There are some analysts who believe that the Santa Claus rally has arrived in the markets early this year. Therefore, those analysts expect consolidation throughout the rest of the year. Oil is easing $0.

02 a barrel and is currently trading at $62.17. Crude futures settled Wednesday's session down $0.

24 at $62.19 a barrel. Weather plays an important role in the determination of prices in the winter.

Apart from the weather, threats of further production cuts from OPEC and forward purchases in anticipation of higher prices in the future are also seen as reasons for the recent increases in the price of crude oil. Despite uncertainty over the price in the winter, the Energy Information Administration forecasts that the WTI crude oil price is unlikely to breach the $70-a-barrel mark and the average price of regular gasoline is not expected to reach $2.50 per gallon any time soon.

Gold futures, which ended Wednesday's session down $12 at $635.90, are currently down an incremental $1 at $634.90 an ounce.

The U.S. dollar is little changed against the euro as well as the yen.

A dollar is currently worth 115.14 yen. Against the euro, the dollar is trading at 1.

3287. According to estimates, about 65.4% of the official global reserves remained in dollar at the end of the second quarter of 2006.

This proportion has been holding almost steady over the past decade. The dollar's attractiveness as a reserve currency is due to the fact that the U.S.

is the world's largest economy and is politically stable. AG Edwards economist Bill O'Grady believes that the most likely reason for the dollar's weakness is the uncertainty in Washington following the mid-term elections. Accordingly, the economist is of the view that the greenback could recover if President Bush is able to bolster confidence in his policies.

Protectionism and a threat from Iraq or OPEC to reprice oil in a currency other than the dollar are seen as potential threats for the long-term strength of the dollar. Bill O' Grady expects the dollar to continue to weaken into 2007, although he expects the weakness to remain contained to the foreign exchange markets. The major Asian markets revealed mixed sentiment on Thursday.

The Japanese, Chinese, Indian and Singaporean markets ended higher, while the rest of the markets closed in negative territory. Japan's Nikkei 225 average hovered in positive territory throughout Thursday's session and ended up 102.08 points or 0.

62% at 16,473. Technology and export stocks rose significantly in the session. Chip equipment manufacturer Advantest rallied 2.

27% and Canon climbed 3.09%. Tire maker Bridgestone advanced 2.

94%. Robot manufacturer Fanuc and Kyocera gained 1.33% and 1.

94%, respectively. Fast Retailing was up 1.11%, while NEC rose 1.

99%. Sharp rallied 3.29%.

Japan Tobacco surged up 4.75% on reports that it may launch a bid for U.K.

's Gallaher. Toyota Motor advanced 0.72% compared to a 1% gain by Honda Motor.

However, Tokyo Electric Power, Taiheiyo Cement, Sojitz Corp., Shimizu, NTT DoCoMo, Nippon Express, Mitsubishi Corp., Japan Steel Work, Kuboto, Kajima, Furukawa Electric, Furukawa Co, Dowa Holdings and Comsys Holdings were all down over 1% each.

Hong Kong's Hang Seng Index, which was trading with slight losses till afternoon trading, fell sharply to close down 183.37 points or 0.96% at 18,843.

Weakness in the property space and China-related shares led to the slide. Index heavyweight HSBC Holdings was down 0.70%.

Cheung Kong declined 2.16% and Henderson Land fell 1.49%.

Swire Pacific and Shopping Property lost 1.03% and 0.89%, respectively.

However, Sino Land, Hang Lung Properties and Wharf Holdings bucked the downtrend in the property space and posted modest gains. China Mobile was down 2.55% compared to a 2.

34% fall by CCB. On the other hand, China Mercantile Holding advanced 2.32%.

CNOOC and China Unicom were up 0.29% and 0.21%, respectively.

South Korea's Kospi languished in negative territory for most of Thursday's session, except for a few brief appearances above the unchanged line. The index fell for the fourth consecutive session, dropping 3.43 points or 0.

24% to 1,410. The downside came amid the nation's central bank's decision to leave interest rates unchanged at 4.50%.

The Korean won continued to strengthen, resulting in a sell-off in the shares of exporters. Steel maker POSCO and Hyundai Motor fell 1.53% and 2.

23%, respectively. Samsung Electronics declined 1.42% compared to a 0.

14% slippage by Hynix Semiconductor. The Monetary Policy Committee of the Bank of Korea, which met on Thursday, decided to leave its uncollateralized overnight rate at 4.50%.

The central bank noted that private consumption is slowing down, while exports and facilities investment are growing. The bank also highlighted the fact that the stabilization measures of the government have succeeded in slowing the upward growth in real estate prices. On the whole, the bank felt that consumer prices as well as the core consumer prices are remaining stable.

Australia's All Ordinaries traded sharply lower in early trading before recouping most of the losses towards the close of trading to end at 5,451, representing a loss of 3 points or 0.06%. Almost all the sectors, barring financial, industrial, consumer staple, telecom and utility stocks, posted losses.

Miners BHP Billiton and Rio Tinto traded lower, while among the four major banks ANZ declined. In the retail space, Woolworths firmed up, while Harvey Norman and David Jones declined. Toll Holdings and Qantas gained ground in the session.

However, News Corp and Fairfax posted losses. The Australian Bureau of Statistics revealed today that the number of employed increased by 36,200 in November from the previous month, while the number of unemployed grew at a more modest 2,900 monthly rate. Annually, the number of employed edged up 2.

5% compared to a 7.4% decline in the number of unemployed. The unemployment rate remained unchanged at 4.

6% from September. India's Sensex, which moved back and forth across the unchanged line, gained 23.03 points or 0.

17% at the close of trading on Thursday to 13,972. In the broader market, small cap stocks outperformed their mid-cap and blue chip counterparts. Capital good, bank, consumer durable, metal, oil gas and public sector unit stocks saw some buying interest, while FMCG, healthcare, IT and technology stocks retreated.

The major European markets are trading with modest gains in Thursday's session. The French CAC 40 Index is gaining 0.76% compared to a 0.

33% advance by the German DAX Index. The U.K.

FTSE 100 Index is rising about 0.70%. Alcatel Lucent is surging up about 3.

5%. Suez, Bouygues and Michelin are gaining close to 2%. Bouygues reported today that its third quarter net income increased to 358 million pounds from 264 million pounds in the year-ago period.

The company also raised its revenue guidance for the group to 26.16 billion pounds from its previous estimate of 25.95 billion pounds.

Total is edging up. However, electric utility EDF, grocery retailer Carrefour and Scoiete Generale are posting significant losses. The banking space as a whole is witnessing some selling pressure.

Among Frankfurt stocks, Thyssenkrupp is up about 3.60% and is the top gainer thus far in the session. Fresenius Medical and Deutsche Boerse are up over 2%.

Other notable gainers include Volkswagen, Henkel, Adidas and Siemens. Chemical makers, utilities and bank stocks are currently trading lower. Deutsche Bank is bucking the downtrend in the banking space.

The German Federal Statistical Office revealed today that producer prices in Germany rose at a 0.1% pace in November from the previous month. The gain followed two months of declines.

On an annual basis, producer prices increased 3.7% in November compared to 2.9% growth in October and a 3% increase in September.

In the U.K, Gallaher is rallying over 19%, while other tobacco stocks such as Imperial Tobacco and British American Tobacco are also trading up. The optimism in the tobacco space followed reports of a take over offer for Gallaher.

Finance and utility stocks are also advancing, while mining and oil stocks are revealing some degree of weakness. The Bank of England announced on Thursday that its Governing Council voted to retain interest rates at 5%. The previous change in the bank rate was a 0.

25% increase implemented in November. Meanwhile, the European Central Bank raised the minimum bid rate on main refinancing operations by 25 basis points to 3.50%.

The bank also raised the rates on deposit facility and marginal lending facility by the same magnitude to 2.50% and 4.50%, respectively.

Jobless Claims data revealed that the first time claims for unemployment benefit declined 34,000 in the week ended December 2nd to 324,000. The previous week's figure was revised up by 1,000 to 358,000. Economists had expected claims to come in at 325,000 for the week.

The four-week average was increased by 3,500 to 328,750 in the recent week from the previous week's revised average of 325,250. Continuing Claims, which is compiled with a week's lag, increased 57,000 in the week ended November 25th to 2.524 million.

Consumer Credit, which is the dollar value of consumer installment credit outstanding, is scheduled for release at 3 PM ET on Thursday. Economists expect Consumer Credit to reveal an increase of $4.5 billion for the month of October.

Consumer Credit declined $1.2 billion in September, representing the sharpest drop since 1991. The August reading was revised upward to $9 billion from the originally reported $5 billion.

Softer car sales led to a $4.1 billion decline in non-revolving credit in September. Consumer credit rose at an annual rate of 3.

5% in the third quarter, a decline from a 6.8% rate in the second quarter. MFRI ( | | | ) is expected to trade higher after it reported that its third quarter net sales jumped 63% to $64.

18 million. Net income for the quarter was 48 cents per share compared to 14 cents per share reported in the year-ago period. G-III Apparel ( | | | ) may firm up after it said its third quarter net income increased to $1.

59 per share from $1.15 per share in the same period last year. Revenues were up 31% to $244.

7 million. The company increased its earnings estimate for the full year to 90-95 cents per share from its earlier guidance of 63-67 cents per share. Delia's ( | | | ) could also trade higher in reaction to its third quarter earnings, which rose to 11 cents per share from the year-ago earnings of 6 cents per share.

Revenues were up 12% to $65.7 million. Analysts, on average, had estimated earnings of 7 cents per share on revenues of $68.

2 million. Casella Waste Systems ( | | | ) may firm up after it said its second quarter earnings of 6 cents per share surpassed the consensus estimate of 2 cents per share, despite declining from the year-ago earnings of 13 cents per share. The company's top-line results revealed 8% growth to $147.

8 million. Tercica ( | | | ) is likely to gain some ground following its announcement that a jury has ruled that its rival Insmed ( | | | ) has infringed on patents used in its Increlex drug. The jury also ordered payment of $7.

5 million in damages plus 15% of royalties. Maxwell Technologies ( | | | ) is expected to see some buying interest after it revealed that it received an order for 3 million ultracapacitors from a European wind energy company. However, TVI ( | | | ) could retreat after it said it will restate results for the third quarter to correct an accounting error.

Accordingly, the company said earnings for the third quarter will be reduced to 3 cents per share from the previously reported 4 cents per share. Liquidity Services ( | | | ) is also expected to see some weakness due to its lackluster guidance. The company projects adjusted earnings to be 40-42 cents per share for fiscal year 2007 compared to the consensus estimate of 43 cents per share.

However, the company's fourth quarter earnings of 8 cents per share increased from the year-ago earnings of 7 cents per share. The consensus estimate had called for earnings of 7 cents per share. Parlux Fragrances ( | | | ) traded down in Wednesday's after hours trading after it revealed the resale of the Perry Ellis fragrance brand to Perry Ellis International.

Retail Ventures ( | | | ) may firm up after it said it is exploring strategic alternatives for its Value City department stores. Veritas ( | | | ) is likely to find buying interest after it said that its first quarter net income was 68 cents per share compared to 32 cents per share reported in the year-ago period. Revenues were up 37% to $230.

8 million, ahead of the consensus estimate of $201.2 million. DirecTV ( | | | ) could be in focus over reports that suggested that News Corp.

( | | | ) will transfer its controlling stake in DirecTV to Liberty Media Corp. The report also said that Liberty Media will get DirecTV, three regional sports networks and $550 million in exchange for its stake in News Corp. Vanda Pharma ( | | | ) is rallying sharply in the pre-market session after it said its schizophrenia drug candidate iloperidone was found to be effective in a late-stage clinical trial.

Brinker International ( | | | ) could react negatively to its same store sales results, which fell 2.6% in November. Home Depot ( | | | ) is likely to retreat after it announced that an investigation into its stock option practices revealed errors in the period from 1981 through the present.

However, the company said it believes that these errors will not have a material effect on its financial statements. Further, Home Depot said the correction of the errors will increase its paid-up capital by $200 million and decrease retained earnings by the same amount. Ace Ltd.

( | | | ) is expected to react to its announcement that it expects its fiscal year 2007 earnings to be $6.65-$7.15 per share.

This compares to the consensus estimate of $6.83 per share. Hershey Co.

( | | | ) could give back some ground after it lowered its earnings estimate for fiscal year 2006, citing weak sales and a product recall in Canada. Eli Lilly Co. ( | | | ) is expected to be in focus over its announcement that it reconfirms its sales growth guidance for 2006 in the high-single or low-double digit range.

The company also reaffirmed its earnings estimate of $3.25-$3.35 per share, which is above the consensus estimate of $3.

15 per share. Fairchild Semiconductor ( | | | ) could also react to its announcement that it is reiterating its fourth quarter revenue growth guidance for flat to 2% sequential growth. The company also said it expects a 50-200 basis point-sequential decline in gross margins.

Towards a restructuring initiative, the company expects to take a charge of $4 million in the fourth quarter and $0.5 million in the first quarter of 2007.