Boston College Investment Club

1
Market Update Oct. 31, 2006
2
Todays Agenda

• Pizza and Soda!
• 15 dues if have not paid already
• Look at Virtual Stock Exchange
• Market Update last week
• Earnings Overview for Q3
• Presentation on NYSE, NASDAQ, ECNs
• Sell Pitch of Winnebago (WGO)

3
Market Overview - DOW

• The Dow closed at 12,086.50 today.
• A common trend for the month of October is the
  increasing performance of technology stocks who
  previously had been underperforming

4
Oil

• Oil prices are continuing to decline
• Closed at 58.36/bbl today
• The drop in oil prices can be attributed to the
  warm weather predictions for the coming winter.
  In addition, it has been a warm fall so the oil
  supply remains in tact also forcing prices down.
  
• Heating oil futures are at a 15 month low.

5
Gold

• Gold closed today at 607.40 an ounce, a 4 week
  high
• The physical gold market has been experiencing
  high demand overseas, especially in India
• The physical demand is expected to increase as
  the Christmas season approaches

6
Real Estate

• The Real Estate market, both commercial and
  residential, continues to decline.
• Two schools of thought
• Decrease in Real Estate Value Unemployment is
  low job security leads to more consumer
  spending, thus an increase in overall economic
  health
• Increase in Real Estate Value My home is worth
  more take out a home equity loan, leads to more
  disposable income

7
Interest Rates

• As expected, the Federal Reserve held interest
  rates steady at 5.25
• Unexpected future of the economy slowing housing
  market and new car sales
• Warning against inflation and a slowing economy

8
Wal-Mart

• Wal-Mart made a statement today that the expected
  sales for October are up only 0.5, which is the
  smallest gain in nearly 6 years.
• Is this an indication of what the biggest
  consumer spending season will bring?

9
Consumer Spending up 0.1

• Consumers kept a tight grip on their wallets in
  September, increasing their spending by only 0.1
  percent.
• Not an overwhelmingly negative or positive
  number.
• Incomes, meanwhile, rose briskly.The Commerce
• However, spending on nondurable goods, including
  food, clothes and gas, fell. That at least in
  part reflected lower prices at the gasoline pump,
  analysts said.
• When consumer spending is adjusted for inflation,
  which is now easing, the spending picture looked
  a lot brighter. Spending rose by 0.4 percent in
  September, a turnaround from a 0.1 percent dip in
  August.