Financial Market Summary Friday, January 19, 2008

Exchange Traded Funds Top 10 Percentage Gainers

DJIA down 59.91 points to 12099.30
NASDAQ down 6.88 points to 2340.02
S&P 500 down 8.06 points to 1325.19
10-year T-note down 1/32 at 105 02/32 yield 3.630
NYMEX Spot Crude up $0.44 at $ 90.57/bbl at close
Dollar/Euro down 0.0022 at 1.4620
Gold ETF (GLD) closed at $87.42 +0.92
Silver ETF (SLV) closed at $ 160.30 +3.13
Financial Sector ETF (SKF) closed up at $129.65 +8.15
Financial Sector ETF (XLF) closed down at $25.50 -0.30

MOST ACTIVE ETF (Symbol) LAST, NET CHG, PERCENT CHG
ProShrUSFnl SKF 129.65 +8.15 +6.7
iShrChina25 FXI 156.94 +7.92 +5.3
ProShrUSRlEst SRS 138.8 +6.80 +5.2
PwrShrDvMktTch PIZ 22.53 +0.96 +4.5
PwrShrJapan PSE PJO 44.9 +1.75 +4.1
ProShrRss2000Val SJH 113.43 +4.33 +4.0
PwrShrDynAPac PUA 24.35 +0.85 +3.6
iShrMSHK EWH 19.95 +0.68 +3.5
iPathNickelETN JJN 44.88 +1.51 +3.5
WisdmTrJpnSmCp PSE DFJ 42.25 +1.42 +3.5

The Volatility Index (VIX) market sentiment indicator spiked up today to 29, a level last seen just before the market rallied in late November 2007.

BUSH CALLS FOR STIMULUS PACKAGE OF UP TO $150 Billion
President Bush calls for tax incentives for businesses and "direct and rapid" tax relief for individuals, saying a stimulus package should be passed as soon as possible to shield the U.S. economy from a steep downturn. He also says plan should include business incentives. Treasury Secretary Paulson says that the biggest portion of the economic stimulus package should be targeted at consumers.

Economic growth will be weak this year, but a modest fiscal stimulus packageof $100 billion could lead to a rebound in the second half of 2008, an American Bankers Association panel says It puts the probability of a recession at 50%.

AMBAC LOSES AAA RATING FROM FITCH
Fitch downgrades troubled bond insurer to AA, saying decision reflects significant uncertainty with respect to its franchise, business model and strategic direction, after Ambac abandons plans to reinforce its capital base by selling $1 billion in equity.

US STOCKS DOWN ON NEW CONCERNS ABOUT BOND INSURERS
A U.S. stock rally dissipates, with equities selling off for a fourth day straight, as new concerns about bond insurers overrode cheer that came with solid results from IBM and GE. Also, President Bush calls further attention to the economic troubles roiling the globe. DJIA down nearly 100 points.

FANNIE MOVES ON PLAN TO CUT DIVIDEND 30%
Mortgage giant will proceed with a planned 30% dividend cut in the current quarter, lowering the payment to 35c a share. Firm said last month the board planned to approve the dividend cut in January. Shares fall 7%.

GE 4Q NET UP 4% ON INFRASTRUCTURE STRENGTH
Conglomerate's net income of $6.7 billion, or 66c a share, is buoyed by booming global demand for big-ticket items such as aircraft engines and wind turbines, as well as strength from its NBC Universal unit. Shares up 4%.

SPRINT SLIDES 25% ON SUBSCRIBER FIGURES
Shares plunge 25% as wireless carrier reports worse-than-expected losses in cellphone subscribers and issues a gloomy outlook for 2008. Sprint also says it will streamline operations to reflect slowing growth, beginning with 4,000 job cuts.

EMBATTLED SALLIE MAE TO LAY OFF 350
A collapsed $25 billion buyout offer and higher borrowing costs have prompted Sallie Mae, the nation's largest student lender, to lay off about 3% of its work force nationwide as part of an effort to cut costs 20% by 2010.

TROUBLED, BUT TEMPTING
With its mortgage business in turmoil and legal clouds gathering, Washington Mutual still is a tempting target, with investors sending its shares up 6% on speculation that the bank could be an acquisition target.

BOND INSURER ACA FACES DEADLINE ON PACT
At midnight, the clock runs out on a regulator demand that ACA get signed forbearance letters from clients of its financial guarantee business, allowing ACA to avoid posting nearly $1.7 billion in collateral on credit default swaps.

BROADENS EMPLOYMENT-DISPUTE REVIEW
The U.S. Supreme Court has broadened its review of employment disputes in the workplace by adding three new appeals to an already busy employment-law docket.

US CONSUMER SENTIMENT INDEX RISES
The Reuters/University of Michigan preliminary January consumer sentiment index moves to a reading of 80.5, from 75.5 in December. Forecasters surveyed by Dow Jones Newswires had expected to see a reading of 74.5.

CARLYLE CO-FOUNDER STILL SEES GOOD DEALS
With the buyout market slowing down because of the credit crisis, Carlyle Group co-founder David Rubenstein says to expect much smaller buyouts, non-leveraged deals where firms take a minority stake and overseas transactions.

US OIL FIRMS' 4Q SEEN LIFTED BY HIGH OIL PRICES
Energy ETF: XLE +0.15 closing at $68.90
Energy ETF: USO +0.051 closing at $71.54
Energy ETF: OIL +0.26 closing at $52.64

Over the next two weeks, major oil companies will report banner-headline profits for the 4Q, led by a sharp rise in oil prices. Earnings for the group are expected to be 15% above the same period last year and up 10% sequentially.

SCHLUMBERGER 4Q NET UP 22% ON GLOBAL ACTIVITY
Shares fall 7% as oilfield-services company reports net income of $1.38 billion, or $1.12 a share. Revenue, which is seen as a bellwether for the sector, climbs 17% to $6.25 billion. Analysts expected EPS of $1.13 a share on $6.1 billion in revenue.

Bond Insurers Defending Ratings Raises Fears
Investors in bond insurers' stock, who have worried for weeks industry leaders like MBIA and Ambac would lose their key AAA credit ratings, found something new to fret about: That the companies would actually try to defend them.

ANALYSIS
Firms Exposed Heavily To Bond Insurers
Merrill Lynch opens the door a crack on how seriously banks may be exposed to the spiraling decline of companies that insure bonds and complex structured securities, such as collateralized debt obligations.