The PremiereTrade Market Wrap for 12/06/07

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.