Stagflation; What Is It?

Daily Market Commentary for April 9, 2008 from Millennium-Traders.Com

Government officials are beginning to refer to the economic situation, the recession, as that of 'stagflation'. What is the meaning of stagflation? (Read More)

At the closing bell on the Stock Exchange, here is how the major world indices and major U.S. indices ended the session on the U.S. Markets:

DOW (Dow Jones Industrial Average) loss of 49.83 points on the day to end the session at 12,527.26

NYSE (New York Stock Exchange) loss of 75.81 points to end the session at 9,074.82

NASDAQ loss of 26.64 points for a close at 2,322.12

S&P 500 loss of 11.05 points for a close at 1,354.49

FTSE All-World ex-U.S. loss of 1.21 points to close at 245.11

FTSE RAFI 1000 loss of 66.32 points to close at 5,467.22

BEL 20 loss of 18.91 points on the day to end the session at 3,838.49

CAC 40 loss of 37.72 points on the day to end the session at 4,874.97

FTSE100 loss of 6.3 points on the day to end the session at 5,983.90

NIKKEI 225 loss of 138.5 points on the day to end the session at 13,111.90

News on the New York Stock Exchange (NYSE) today: advanced stocks 876; declined stocks 2,270; unchanged stocks 83; stocks hitting new highs 47; stocks hitting new lows 32. Daily Trading Range and end of day trading results for volatile NYSE stocks traded by active Day Traders today: Bunge Limited (BG) shed 1.86 points on the trading day, high on the trading day $104.94, low on the trading day $100.27, for a closing price at $101.25; Transocean, Incorporated (RIG) gained 4.34 points on the trading day, high on the trading day $149.47, low on the trading day $144.50, for a closing price at $148.19; SLM Corporation (SLM) shed 0.86 points on the trading day, high on the trading day $19.88, low on the trading day $17.76, for a closing price at $17.89; Goldman Sachs Group Incorporated (GS) shed 4.76 points on the trading day, high on the trading day $178.90, low on the trading day $173.15, for a closing price at $174.14; NVR Incorporated (NVR) shed 19.89 points on the trading day, high on the trading day $635.00, low on the trading day $595.30, for a closing price at $599.91; Shaw Group Incorporated (SGR) shed 1.00 points on the trading day, high on the trading day $57.00, low on the trading day $51.57, for a closing price at $54.80; Mechel Open Joint Stock Company (MTL) gained 12.78 points on the trading day, high on the trading day $144.00, low on the trading day $129.00, for a closing price at $142.88; Humana Incorporated (HUM) shed 2.44 points on the trading day, high on the trading day $45.07, low on the trading day $42.38, for a closing price at $42.76; United States Steel Corporation (X) shed 3.92 points on the trading day, high on the trading day $145.44, low on the trading day $140.71, for a closing price at $141.63; General Cable Corporation (BGC) shed 2.12 points on the trading day, high on the trading day $67.01, low on the trading day $64.22, for a closing price at $64.94; UltraShort Financials ProShares (NYSE: SKF) gained 3.96 points on the trading day, high on the trading day $109.39, low on the trading day $104.09, for a closing price at $108.96; Petroleo Brasileiro (NYSE: PBR) gained 0.74 points on the trading day, high on the trading day $116.25, low on the trading day $113.50, for a closing price at $114.64; CF Industries Holdings, Incorporated (NYSE: CF) gained 2.73 points on the trading day, high on the trading day $136.73, low on the trading day $131.51, closing price $133.75; CME Group, Incorporated (NYSE: CME) shed 11.59 points on the trading day, high on the trading day $517.20, low on the trading day $497.02, closing price $499.11; Mastercard Incorporated (NYSE: MA) shed 2.72 points on the trading day, high on the trading day $236.19, low on the trading day $226.81, closing price $228.75; Flowserve Corporation (NYSE: FLS) shed 1.64 points on the trading day, high on the trading day $110.00, low on the trading day $106.21, for a closing price at $108.17.

News on the NASDAQ today: advanced stocks 771; declined stocks 2,126; unchanged stocks 158; stocks hitting new highs 21; stocks hitting new lows 85. Trading range and end of day trading results for volatile NASDAQ stocks traded by active Day Traders today: FormFactor Incorporated (NasdaqGS: FORM) shed 0.57 points on the trading day, high on the trading day $19.04, low on the trading day $17.94, closing price $18.90; Nektar Therapeutics (NasdaqGS: NKTR) shed 1.80 points on the trading day, high on the trading day $5.71, low on the trading day $4.92, closing price $5.39; Intuitive Surgical, Incorporated (NasdaqGS: ISRG) shed 11.03 points on the trading day, high on the trading day $349.21, low on the trading day $331.89, closing price $336.07; Pantry Incorporated (NasdaqGS: PTRY) shed 5.64 points on the trading day, high on the trading day $20.05, low on the trading day $15.93, closing price $16.20; Focus Media Holding Limited (NasdaqGS: FMCN) shed 2.41 points on the trading day, high on the trading day $37.15, low on the trading day $33.01, closing price $34.64; Cephalon Incorporated (NasdaqGS: CEPH) shed 0.94 points on the trading day, high on the trading day $66.23, low on the trading day $63.63, closing price $64.22; First Solar, Incorporated (NasdaqGS: FSLR) shed 2.12 points on the trading day, high on the trading day $278.85, low on the trading day $269.05, closing price $269.87; Google Incorporated (NasdaqGS: GOOG) shed 3.62 points on the trading day, high on the trading day $457.54, low on the trading day $472.00, closing price $464.19; ***** Incorporated (NasdaqGS: AAPL) shed 1.40 points on the trading day, high on the trading day $153.89, low on the trading day $150.46, closing price $151.44; Baidu.com, Incorporated (NasdaqGS: BIDU) shed 7.14 points on the trading day, high on the trading day $298.45, low on the trading day $284.58, closing price $288.81.

News on the American Stock Exchange (AMEX) today: advanced stocks 478; declined stocks 685; unchanged stocks 118; stocks hitting new highs 13; stocks hitting new lows 18.

International Monetary Fund: Latin America 2008 GDP growth down to 4.4% with expected further slide in 2009; U.S. headed for mild recession, rest of world may follow; sees 25% chance of global recession or below 3% growth; cuts Japan 2008 GDP forecast to an increase by 1.4% versus an increase by 1.5%; cuts Japan 2009 GDP forecast to an increase by 1.5%; forecasts Japan 2008 CPI at increase by 0.6%; forecasts Japan 2009 at increase by 1.3%; lowers Japan growth forecast for 2008, warns of risks; economic risks remain to downside due to financial crisis; countries should prepare to coordinate fiscal stimulus; ECB can `afford some easing,` with inflation to fall; U.S. Federal Reserve's bias should remain toward easing; dollar, euro on strong side; yen still undervalued; emerging markets to slow modestly; inflation main concern; china would benefit from flexible exchange rate.

President Federal Reserve Bank of Dallas, Richard W. Fisher: U.S. economy will suffer bout of anemia; regulatory discussions must proceed; Fed must restore efficacy of financial system; Fed must do 'minimum and no more' to help; policymakers don't aim to eliminate risk; no bank is too big to fail; fed hasn't bailed out any institution; inflation must be constantly watched; Fed's toolkit not exhausted; weak period will be longer than expected; fed should oversee state member banks; efficiency of rate cuts is questionable; not against cutting rates; need insight into banks we're lending to.

Under Secretary for International Affairs David H. McCormick Sees U.S. Economic recovery in 2h, picking up in 2009; `significant' downside risks to U.S. growth; some countries should consider growth measures; IMF Global Economy outlook `unduly pessimistic'; to push for quick G7 action on FSF report.

U.S. Mortgage Bankers Association (MBA) Refinancing Index rises 3.4% to 2724.7 from 2636; U.S. MBA Purchase Index rises 8.1% to 384.7 from 356; U.S. MBA Market Index rises 5.4% to 725.6 from 688.3.

U.S. February Wholesale Inventories increased 1.1% compared to expectations of an increase by 0.5%.

Department Of Energy: U.S. Crude Oil Stockpiles fell by 3.2 Million Barrels at 316.0 Million Barrels; U.S. Gasoline Stockpiles fell by 3.4 Million Barrels at 221.3 Million Barrels; U.S. Distillate Stockpiles fell by 3.7 Million Barrels at 106.0 Million Barrels; U.S. Refineries ran at 83.0% versus 82.4% a week ago; U.S. Gasoline Stockpiles fell by 3.4 Million Barrels in the week compared to expectations of a drop by 2.3 Million Barrels; U.S. Distillate Stockpiles fell by 3.7 Million Barrels in the week compared to expectations of a drop by 1.2 Million Barrels; U.S. Refineries ran at 83.0% ;compared to expectations of an increase by 0.7 points at 83.1%.

Randall S. Kroszner Member of Federal Reserve Board, "The current U.S. economic turmoil is different than the stagnation that resulted in the so-called "lost decade" of economic growth for Japan during the 1990s." Responding to questions from U.S. House lawmakers, Kroszner said the "aggressive role" of the federal government in responding to the housing and credit crisis differs from what occurred in Japan during the collapse of their real estate bubble. He specifically cited the economic stimulus package enacted by Congress earlier this year, as well as the various programs and proposals put in place to help struggling homeowners.

Commodities Markets
Energy Sector: Light Crude (NYM) gained $2.37 on the day to close at $110.87 a barrel ($US per bbl.); Heating Oil (NYM) gained $0.12 on the day to close at $3.23 a gallon ($US per gal.); Natural Gas (NYM) gained $0.36 on the day to close at $10.06 per million BTU ($US per mmbtu.); Unleaded Gas (NYM) gained $0.02 on the day to close at $2.77 a gallon ($US per gal.).

Metals Markets: Gold (CMX) gained $19.50 to close at $937.50 ($US per Troy oz.); Silver (CMX) gained $0.49 to close at $18.20 ($US per Troy oz.); Platinum (NYM) gained $15.00 to close at $2,044.60 ($US per Troy oz.) and Copper (CMX) gained $0.11 to close at $4.00 ($US per lb.).

Livestock and Meat Markets (cents per lb.): Lean Hogs (CME) shed 0.73 to close at 70.55; Pork Bellies (CME) shed 1.38 to close at 72.60; Live Cattle (CME) shed 1.83 to close at 87.75; Feeder Cattle (CME) shed 2.03 to close at 100.83.

Other Commodities (cents per bu.): Corn (CBT) gained 16.50 to close the session at 620.00 and Soybeans (CBT) gained 61.50 to close the session at 1,316.00.

Bonds were mixed across the board today: 2 year bond gained 6/32 at 99 30/32 with a Yield of 1.77, Yield Change 0.10; 5 year bond gained 18/32 to close at 99 16/32 with a Yield of 2.60, Yield Change 0.12; 10 year bond gained 22/32 to close at 100 5/32 with a Yield of 3.48, Yield Change 0.08; the 30 year bond gained 27/32 to close at 100 28/32 on the day with a Yield of 4.32, Yield Change 0.05.

The e-mini Dow $5 ended the commodity session today at 12,540 with a loss of 70 point on the trading session. The total Dow Exchange Volume for the day came in at 124,085 which is comprised of Electronic, Open Auction and Cash Exchange. Futures Traders should review workshops available at the CBOT (Chicago Board of Trade). Educational in-person seminars schedules available on the CBOT (Chicago Board of Trade) website.

The end of day results for the CBOT (Chicago Board of Trade) which is comprised of the total Exchange Volume for Futures and Options (EVFO) including Electronic, Open Auction, Cash Exchange, Wholesale and Cleared Only ended the day at 2,785,629; Open Interest for Futures shed 32,906 points to close at 9,350,649; the Open Interest for Options shed 55,321 points to close at 8,861,491 and the Cleared Only gained 120 points to close at 28,739 for a total Open Interest on the day of 18,240,879 for a total Change on the day with a loss of 88,107 points.

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