Economic Reports & Observations 11/22/06

Initial Claims +12K @ 321K; continuing claims +14K @ 2.45M

EIA Inventories: crude +5.1MB, gasoline +1.4MB, distillates -1.2MB, the inventory rise caused crude to drop from over $60 to under $59.

Nov U of Mich Consumer Confidence DOWN to 92.1 vs prior 92.3

Odds & Ends: Dell issued a "preliminary" (due to SEC investigation) Q3 earnings report after the bell Tues. Revenue +3.5%, BELOW expectations and the SLOWEST growth in 4 years.

Shipments in Europe up and Japan/Asia +23%, however shipments to the Americas DOWN -4%. Dell stock up 10% on this really "good" news, amid multiple analyst upgrades and increased price targets.

Alcoa announced plans to slash 10% of its global workforce, stock up 3.6% on this "good" news.

Gold rising from $618 to $628 and loaded to test $650. 10 yr bond yield down to 4.55 again. 30 yr bond testing 113 and should break through to 115. This would send the 30 year yield to 4.50 (see TYX chart) and put the 10 year at 4.40.

The SP500 hit 1408 today, perhaps a small post turkey day dip to 1396-1400, then we anticipate one more spurt to 1415 range where a major test of the markets resolve awaits. Happy Day of the Gobbler.

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