Dow Recovers After 343-Point Decline

• August 16, 2007
• Darren Wong

U.S. markets initially sold off solidly with the Dow posting an
intraday loss of over 300 points when government reports
were released showing bigger than expected drops in July housing
starts and building permits as well as a bigger than expected
increase in weekly jobless claims. The data has added to the
recent concerns that problems in the credit markets could impact
the economy as a whole.

The markets have had a volatile final hour over the past week
and today’s strong 200 point last hour rally was no exception. The
Dow ended the day flat, while the S&P 500 gained 0.4% and the
Nasdaq lost 0.3%.

Crude oil futures for September delivery fell
3.2% to $70.98 a barrel. Gold
futures for December delivery fell 3.2% to $658.00 an ounce, the
largest drop in over a month.

Around Europe, Germany’s DAX fell 2.4% to 7,270.07, France’s CAC
40 index dropped 3.3% to 5,265.47, and Britain’s FTSE 100 index
lost 4% to 5,858.90.

Learn to Trade the New VIX Options!

Click Here to attend a free 45-minute presentation with Larry Connors on
Saturday.

This Saturday, August 18 at 9:00 AM Eastern Time (6:00 AM Pacific) we will be
holding a special online presentation for the TradingMarkets VIX Options Trading
Course.

Click here to register – This session is strictly limited to 50
participants.

Stocks in Motion

Countrywide ( CFC | Quote | Chart | News | PowerRating) Draws $11.5 Bln Credit Facility To Bolster Liquidity. CFC shares dropped 4.5%. Amgen ( AMGN | Quote | Chart | News | PowerRating) To Cut Up To 2600 Jobs; Cuts FY07 Earnings Outlook (full story). AMGN shares fell 2%. PetSmart ( PETM | Quote | Chart | News | PowerRating) Q2 Profit Rises On Higher Revenues, Benefit From Renegotiation Of Contract; Guides Q3, FY07; Reveals New Share Repurchase Program (full story). PETM shares rose 2%. Network Appliance ( NTAP | Quote | Chart | News | PowerRating) Q1 Profit Down 37.3%, Non-GAAP EPS Tops Consensus (full story). NTAP shares jumped 6%. Flowers Foods ( FLO | Quote | Chart | News | PowerRating) Q2 Profit Rises On Strong Bakeries Sales; Gives FY07 EPS View, Tightens Sales. FLO shares added 1%. Fannie Mae ( FNM | Quote | Chart | News | PowerRating) Reports 35% Fall In FY06 Profit; Files Form 10-K With SEC. FNM shares rose 6.5%. For more stories as they happen, go to our Breaking News section.

Market Snapshot

Dow -14.47 12,847.00 NASDAQ -7.76 2,451.07 S&P 500 +4.62 1,411.32 NYSE NASDAQ Volume 3,675,937,000 3,232,494,000 Advances 1040 1251 Declines 2283 1868 Up Volume 1176 909 Down Volume 2177 2121 New Highs 10 36 New Lows 1043 388

Strongest/Weakest Industry Groups

Strongest Industries Weakest Industries Insurance Brokers Energy Credit Services Internet Healthcare Insurance Brokers

Economic News

Housing Starts 1381K vs 1405K consensus, prior revised to 1470K from 1467K Building Permits 1373K vs 1400K consensus, prior revised to 1413K from 1406K Initial Claims 322K vs 315K consensus

Darren Wong

Associate Editor

darrenw@tradingmarkets.com

TradingMarkets subscribers have access to
16 quantitative
stock indicators and another

17 quantitative market bias indicators. These indicators are derived from
our proprietary database that includes millions of trades, and designed to give
you a short-term trading edge.

Start your 7-day Free Trial and see how a TradingMarkets subscription can
improve your trading.