STOCK MARKET WATCH, Thursday 12 May

[ozymandius]

Thursday May 12, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 254 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 150 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 207 DAYS
DAYS SINCE ENRON COLLAPSE = 1264
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
Other Arrests of Execs = 54


U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90

AT THE CLOSING BELL ON May 11, 2005

Dow... 10,300.25 +19.14 (+0.19%)
Nasdaq... 1,971.55 +8.78 (+0.45%)
S&P 500... 1,171.11 +4.89 (+0.42%)
10-Yr Bond... 4.20% -0.02 (-0.47%)
Gold future... 427.90 UNCH (UNCH)

GOLD, EURO, YEN, Dollars and Loonie




PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Mike Hartman

MEDIA SPINS "RISK AVERSION" TO SELL TREASURIES

The big news in the markets came from the Commerce Department when they announced the second quarter trade deficit unexpectedly shrank in March to $55 billion. Median forecasts called for a deficit of $61.9 billion with the lowest estimate at $58 billion. The number clearly came in much lower than expected. Bloomberg News describes the impact on the markets as follows: “Stock index futures gained, Treasury notes fell and the dollar rose as the report suggested a stronger economy.” The report did indeed suggest a stronger economy, especially on the heels of a much better than expected employment report last Friday. On face value, stocks should be headed higher today with less demand for bonds moving bond prices lower and yields higher, but just the opposite is happening. WHY???

Recent economic reports have more jobs being created in America than was expected and in March our exports unexpectedly surged higher by 2.5% indicating economic strength. Normally when the economy is strengthening, bond prices move lower. Today’s great news on the trade deficit sent the dollar higher against all major currencies, but bond prices reversed their initial declines from the announcement and have remained in positive territory for the balance of the session. The big spin in the financial media is claiming that today’s action with stocks down and Treasuries higher is because of “increased risk aversion.” All the recent good economic news and the market is still getting arm-wrestled into buying U.S. Treasuries. The “RISK AVERSION” spin is being used to sell Treasury debt as a flight to safety.

-cut-

News on Energy

Crude prices tumbled $1.52 to $50.55 a barrel today when the Energy Department said crude inventories grew by 2.7 million barrels and gasoline inventories grew by 200,000 barrels. At the same time the Energy Department announced higher inventories, the International Energy Agency reduced global demand for the fourth quarter on speculation China’s demand will decline. The IEA reduced its forecast for 2005 demand growth in China, the world’s second largest oil consumer, to 7.4% from the 7.9% increase expected back in March. Talk about expedient, this takes pressure off inflation and the dollar, not to mention it’s easier to sell Treasuries with a falling oil price.

Now let’s flip over to some other sources of information in the oil patch. First of all, the Energy Department claims crude grew by 2.7 million barrels, but the American Petroleum Institute reported crude inventories actually DECLINED by 6.1 million barrels. Who should we believe with such a large discrepancy in the numbers? Similarly, the government claims a build of 200,000 barrels of gasoline, but the API reported a build of only 84,000 barrels. The market expected a gasoline build of 800,000 barrels, so both inventory reports came in well below estimates, but the price of gasoline declined by more than 2% today to close at $1.479 a gallon. In my opinion, oil came down today because the dollar strengthened, not because of the bearish numbers from the Energy Department. Lower oil makes the dollar look better, and the dollar needs all the help it can get…even if it is pure propaganda.

much more...

http://www.financialsense.com/Market/wrapup.htm

[UpInArms]

27. here's that propaganda spin right now

Oil dives below $50 on plump U.S. stocks

http://www.reuters.com/newsArticle.jhtml?type=businessNews&storyID=8468443

LONDON (Reuters) - Oil dropped below the $50 threshold on Thursday as a strengthening U.S. dollar extended a heavy fall driven by rising U.S. crude stocks and signs of slowing global demand growth.

<snip>

Prices fell as the U.S. dollar hit a three-month high against the euro at $1.2741, extending gains made on a narrower U.S. trade deficit and as some investors bet on a strong U.S. retail sales report.

Oil has been reluctant to make a decisive break below $50, because big-money investment funds have viewed any price drop as a buying opportunity. Even so, further gains in the dollar could place more downward pressure on oil, traders said.

"It depends largely on what the U.S. dollar does. If the euro weakens to around 1.25, I think the funds will liquidate further length in oil," said Tony Machacek of Bache Financial in London.

Falls in the dollar's value this year and last have helped lift oil prices, by insulating non-dollar economies from the impact of higher oil prices. Investment funds have also switched from treasury markets into commodities and energy.

...more...

[UpInArms]

36. June crude falls below $50

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38484.4192008796-835302142&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

DALLAS (MarketWatch) -- June crude fell 95 cents to $49.50 a barrel at the open of New York Mercantile Exchange trading Thursday. "Will the momentum players be able to return prices back above $50?" said Kyle Cooper, energy analyst at Citigroup, in a note to clients. "We don't see a fundamental reason for that. But fear of what could happen, as opposed to the realities of what is truly happening continues to dominate market psychology."

[UpInArms]

2. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 85.14 Change +0.20 (+0.24%)

Dollar Gets Some Follow Through

http://www.dailyfx.com/index.php?option=com_content&task=view&id=1054&Itemid=39

Still enjoying the afterglow of a better than expected US Trade Balance deficit, dollar bulls pressed their trades in early European session and pushed the EUR/USD all the way to 1.2740 before serious buyers showed up on the bid and propped the pair back to the 1.2770 level. Euro-zone data, which included surprisingly strong GDP results from Germany (1.0% vs. 0.5% projected) and markedly weak Italian numbers (-0.5% vs. 0.2% expected) had little effect on trading tonight.
The market is now focused on US Advanced Retail Sales report due 12:30 GMT. Consensus estimate is for 0.7% gain vs. 0.3% increase last month. The last three pieces of US eco data from NFPs to Mortgage Applications to Trade Balance report have all surprised to the upside, providing nice buoyancy to dollar longs. If the Advance Sales result meets or beats the market’s expectation it will confirm the dollar bullish argument that US economy is running on all cylinders and higher growth will inevitably lead to further interest rate increases expanding the greenback’s carry trade advantage. However, if the number disappoints, the rally is likely to stall as the market once more tries to ascertain the true state of US economic health.

Certainly one currency that has shown signs of sickness recently is the British pound which reached a new monthly low today on the back of a story in London Times that suggested that BOE may actually lower rates in the near future in response to the drastic slowdown in growth over the past few months. While UK housing market still remains strong, registering double digit year on year gains, Retail Sakes and Industrial Production both widely missed their mark and there is now palpable concern that the vaunted UK economic miracle which has recorded 48 consecutive quarters of growth may be coming to an end.

...more...

Will The Euro Break Lower? Retail Sales May Be The Answer

http://www.dailyfx.com/index.php?option=com_content&task=view&id=1038&Itemid=39

US Dollar
The US dollar rallied against most of its major counterparts as the narrowing twin deficits give dollar bulls more cause for optimism. The US trade deficit narrowed from a downwardly revised $60.6 billion to $55 Billion in March. The monthly budget surplus also increased from $17.6 billion to $57.7 billion. Although this is slightly less than the consensus forecast, strong tax receipts in the month of April has helped the budget balance post a solid monthly number. With last Friday’s blockbuster non-farm payrolls release and today’s narrower trade deficit, it now seems that two sectors of the US economy may be once again on its way to recovery. Yet the dollar’s rally has remained cautious with the greenback still holding above critical support levels against the euro. Skeptics continue to warn that one month of strong data (in both releases) does not make a trend and more consistent strength needs to be seen before economists can say that the US economy is no longer in a soft patch. In terms of price action, it appears that traders may be waiting to see how tomorrow’s retail sales report comes out before backing an even stronger move higher in the dollar. Consumer spending, which accounts for two thirds of GDP is extremely important. Higher oil and gasoline prices have previously crimped consumer spending. With oil prices ending lower in the month of April, retail sales are expected to rebound strongly. If this is really the case, we could see the EURUSD test its February lows.

Euro

The strong economy / weak economy comparison has given the euro another good reason to sell-off against the dollar today. While economic data from the US painted a more optimistic picture for the dollar, today’s Eurozone releases confirmed the weakness across the Atlantic. Industrial and manufacturing production in France contracted for the second consecutive month. The Eurozone’s second largest country is seeing further deterioration with a more sharper than expected decline in production. Meanwhile consumer prices in Germany increased at a slower pace in the month of April than initially reported. According to the final CPI numbers, consumer prices remained pretty much unchanged on a monthly basis. The combination of lower inflation and weak economic data will continue to make the European Central Bank’s work particularly difficult. Earlier this month, ECB President Trichet has already informed the markets that a rate cut is not a possibility, therefore with fundamentals not supporting a rate hike either, the central bank will continue to stand pat. The OECD leading economic indicators also came in weaker for the month of March, falling to 105.3 from 105.5. According to the Financial Times, the OECD is expected to lower its 2005 growth forecast for the Eurozone from 1.9% to 1.6%.

<snip>

Japanese Yen

Hitting a low of 104.91, the Japanese yen vaulted to a 105.92 high during the session as leading indicator derived releases signaled that the world’s second largest economy may be stalling. Exiting out of recessionary conditions at the end of 2004, posting 0.5 percent annualized growth, economic releases out of the land of the rising sun have been rather tepid thus far. This has led the leading economic index for March to remain below the expansive 50 percent reference level, even though the figure increased from 18.2 percent reading in the previous month. Conversely, the Coincident index for the same month increased to a reading of 66.7 percent from a disappointing 30 percent figure last month. Based mainly on retail sales and production surveys, the inline rise lends some, if not little, optimism for brighter side future implications compared with the more consumer based leading indicators report. Capping the session’s events, economists witnessed official reserve assets for April continuing to rise to an actual print of $843.6 billion.

...more...

Have a Great Day Marketeers!

[UpInArms]

17. Korea Braces for Yuan Revaluation

http://times.hankooki.com/lpage/biz/200505/kt2005051217354311910.htm

A time bomb is ticking: the yuan revaluation. The Chinese currency appreciation is looming larger than ever before, overshadowing Korea's exports frontier.

Now, it's only a matter of time and it may be sooner than later. The currency adjustment comes more as a threat to South Korea than as an opportunity.

According to analysts, it is urgent for Korea to take all the preparatory steps necessary to make sure that a yuan revaluation does not undermine Korea's growth potential.

The revaluation is feared to spell more harm to the economy than good, even though it has some positives, they said.

The debate on the possibility of China revaluing the currency has lasted for the past two years, intensifying this year, as the U.S. and Japan, saddled with huge trade deficits with China, stepped up pressures for a yuan revaluation.



...more...

[RawMaterials]

20. Morning UIA ,Ozy,, and everyone

UIA i love the visuals. :hi:

[UpInArms]

25. that one just seemed to mirror

yesterday's chart - but it was the USoA's indebtness.

:(

(I really think that pictures tell a tale that words just never seem to capture)

[AnneD]

31. Morning Marketeers

:donut: When they announced that the deficit was reduced by 55 bil, the other day (and Wall St went gaagaa)....was it my imagination or did they say last month the IRS had collected 55 mill in estimated tax reciepts...hummm a million here a billion there and pretty soon it adds up to some real money. Happy Hunting and watch out for the bears.

[UpInArms]

3. New finite reinsurance rules coming

State insurance regulators plan changes by mid-June

http://www.marketwatch.com/news/story.asp?guid=%7B06670322%2DD3A0%2D4A3F%2DB69E%2DE1D3795AEB20%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Regulators proposed stricter state rules Wednesday governing finite reinsurance and said they plan to adopt the rules by the middle of June.

The proposed rules would require insurers to report to state insurance regulators any finite agreement that alters policyholder surplus by more than 3% or represents over 3% of premiums or losses, the National Association of Insurance Commission said in a statement.

Policyholder surplus is the money left over after an insurer's liabilities are deducted from its assets. Surplus and loss reserves provide financial protection to policyholders in the event of big losses.

Insurers will also have to tell regulators about the terms of their finite contracts and reasons why they arranged the transactions, said the NAIC, which oversees all state insurance regulators.

Chief executives and chief financial officers of insurance companies will have to sign a form saying that there are no separate agreements - known as "side letters" - that alter the amount of risk transferred by official finite reinsurance contracts.

...more...

[UpInArms]

32. Genworth gets SEC subpoena for reinsurance documents

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38484.4125924537-835301638&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- Genworth Financial (GNW) said Thursday that it has received a subpoena from the Securities and Exchange Commission for documents related to "certain loss mitigation insurance products." The company said that it will cooperate with the SEC's request. Genworth said that it conducted an internal review of its reinsurance business in the fourth-quarter and did not find any issues of concern, but said that the review will continue as a result of the subpoena and the ongoing government probe of the industry as a whole.

I'm with Spitzer. When will the WH come out and denounce this industry as corrupt and manipulative?

[UpInArms]

4. Third Gen Re exec gets 'Wells notice'

Dublin-based Houldsworth was involved in AIG deal

http://www.marketwatch.com/news/story.asp?guid=%7B36DE6CEF%2D6566%2D402C%2DA50E%2DF4FF5288969B%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- A third General Re executive faces a possible civil lawsuit by the Securities and Exchange Commission as part of the agency's investigation of a reinsurance transaction between the Berkshire Hathaway unit and American International Group.

John Houldsworth, former chief underwriter of General Re's international alternative solutions group in Dublin, Ireland, got a "Wells Notice" from the SEC in recent days informing him that the agency may take legal action against him, according to a person familiar with the situation.

Richard Napier, a senior vice president at General Re, and Elizabeth Monrad, the reinsurer's former chief financial officer, were also sent notices recently, the person added.

All three executives were involved in a so-called finite reinsurance transaction between General Re and AIG (AIG: news, chart, profile) in late 2000 and early 2001, the person said.

AIG has since admitted that the deal lacked risk transfer and should have been accounted for as a loan, rather than reinsurance. By recording the transaction incorrectly, AIG said it was able to artificially bolster its premiums and loss reserves by $500 million.

...more...

[UpInArms]

5. Hannover Re doesn't see financial hit from U.S. probe

http://www.marketwatch.com/news/story.asp?guid=%7BBDE2D5BC%2D5142%2D4DEE%2DAD69%2D8F4EB581F233%7D

FRANKFURT (MarketWatch) -- Hannover Re's (HNR1.XE) business in the second quarter continues to show the positive results of the first quarter, the company's chief financial officer told Dow Jones Newswires in an interview Thursday.

And in the absence of large natural disasters, the world's third largest reinsurer by gross premiums is on track for a continued good combined ratio in its non-life reinsurance business, Hannover Re CFO Elke Koenig said.

"Excluding large disaster claims, we had a non-life combined ratio of around 90% in the first quarter, and there's no reason why we shouldn't reach a combined ratio in the low 90%s in the second quarter, excluding large claims," Koenig said.

Koenig said that in the second quarter typically, there aren't major natural disasters.

Due to winter storms, two fire claims and a credit loss, Hannover Re had a net claims exposure of EUR93.3 million, or 11% of net premiums, above the long-term average of 5% that the company uses for its business calculations.

...more...

[UpInArms]

6. Wal-Mart Q1 earnings, sales miss

http://www.marketwatch.com/news/story.asp?guid=%7BACE61E76%2D3AEB%2D43EB%2D93A7%2DDCEF456DD062%7D&siteid=mktw

NEW YORK (MarketWatch) -- Shares in Wal-Mart Stores Inc. fell sharply in pre-market trading Thursday after the world's largest retailer said higher gas prices caused it to miss Wall Street's first-quarter earnings target and warned that next quarter's profit will fall short of expectations.

Wal-Mart's (WMT: news, chart, profile) stock fell 3.7%, or $1.80, to $46.80, in recent pre-market action. Shares closed Wednesday's regular session at $48.60, down 12 cents.

<snip>

Chief Executive Lee Scott said in a statement that "with higher gasoline prices and a cooler and wetter spring than normal, we missed our plan. We are making the necessary adjustments and I anticipate better results in the second half of the year."

Citing expectations that higher gasoline prices will continue to hurt retail spending and deliver below-plan sales, Wal-Mart said it projects second-quarter earnings to come in at 63 cents to 67 cents a share, below analysts' view for earnings of 70 cents a share.

...more...

[UpInArms]

8. check out Reuters spin-in-action!

http://www.reuters.com/financeNewsArticle.jhtml?type=businessNews&storyID=8469164

CORRECTED Wal-Mart profit rises
Thu May 12, 2005 07:31 AM ET
Please read in first sentence ... "missing lowered expectations as soaring energy prices ... instead of ... "beating lowered expectations despite soaring energy prices."

A corrected version follows.

CHICAGO (Reuters) - Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research) on Thursday reported a higher quarterly profit, missing lowered expectations as soaring energy prices and uncooperative weather that hurt sales.

...more...

[UpInArms]

7. Today's Reports: ... It's MaeveDay!

May 12	8:30 AM	Initial Claims		05/07	-	320K	325K	333K	-	
May 12	8:30 AM	Retail Sales		Apr	-	0.7%	0.7%	0.3%	-	
May 12	8:30 AM	Retail Sales ex-auto	Apr	-	0.7%	0.5%	0.1%	-

It's time for Truth to Power!

[UpInArms]

10. Reports coming in:

8:29am 05/12/05 U.S. CONTINUING JOBLESS CLAIMS UP 15,000 TO 2.60 MLN

8:29am 05/12/05 U.S. 4-WEEK AVG. JOBLESS CLAIMS UP 2,000 TO 324,000

8:30am 05/12/05 U.S. RETAIL SALES EX-AUTOS, EX-GAS UP 1%

8:30am 05/12/05 U.S. RETAIL SALES UP 8.6% YEAR-OVER-YEAR

8:30am 05/12/05 U.S. APRIL HARDWARE STORE SALES UP 1.2%

8:29am 05/12/05 U.S. WEEKLY JOBLESS CLAIMS HIGHEST LEVEL SINCE APRIL 2

8:30am 05/12/05 U.S. APRIL GENERAL MERCHANDISE STORE SALES UP 1.5%

8:30am 05/12/05 U.S. APRIL RETAIL SALES EX-GASOLINE UP 1.3%

8:30am 05/12/05 U.S. FEB., MARCH RETAIL SALES REVISED UP BY 0.3%

8:30am 05/12/05 U.S. APRIL RETAIL SALES EX-AUTOS +1.1% V 0.6% EXPECTED

8:30am 05/12/05 U.S. APRIL RETAIL SALES UP 1.4% VS. 0.8% EXPECTED

8:29am 05/12/05 U.S. WEEKLY JOBLESS CLAIMS UP 4,000 TO 340,000

[UpInArms]

11. U.S. jobless claims up 4,000 to 340,000

http://www.marketwatch.com/news/story.asp?guid=%7B459B3AF2%2D7F09%2D47A2%2DB11F%2D5C7B8B59E42C%7D&siteid=mktw

WASHINGTON (MarketWatch) - Initial claims for state unemployment benefits rose unexpectedly in the latest week, the Labor Department said Thursday.

The number of workers filing for state unemployment benefits for the first time rose by 4,000 to 340,000 in the week ended May 7. This is the highest level of claims since the week ended April 2.

The department could identify no special factors behind the increase.

The rise in claims was unexpected. Economists had been forecasting initial claims to fall to about 327,000, according to a survey conducted by MarketWatch. See Economic Calendar

Claims in the previous week were revised higher to a gain of 15,000 to 336,000, compared with the initial estimate of a gain of 11,000 to 333,000. Read the full report.

The four-week moving average of new claims rose by 2,000 to 324,000 in the week.

...more...

[UpInArms]

16. U.S. jobless claims unexpectedly rise

http://www.reuters.com/financeNewsArticle.jhtml?type=economicNews&storyID=8470108§ion=investing

WASHINGTON, May 12 (Reuters) - The number of Americans filing new claims for jobless compensation rose unexpectedly last week to its highest level in a month, a government report showed on Thursday.

Initial claims for jobless benefits rose for the third straight week, climbing to 340,000 in the week ended May 7 from an upwardly revised 336,000 for the previous week and to its highest since April 2, the Labor Department said.

Economists had expected claims to fall to 325,000 from the 333,000 the government originally reported in the week ended April 30.

<snip>

However, the four-week average of these so-called continued claims moved down for the fourth straight week, falling to 2.59 million, the lowest level since March 31, 2001, just as the U.S. economy was tumbling into recession.

...more at link...

[UpInArms]

12. U.S. April retail sales jump 1.4%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38484.3541882407-835297073&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - U.S. retail sales rose a better-than-expected 1.4% in April, the best gain in seven months, the Commerce Department estimated Thursday. The sales gains were widespread across most kinds of retail outlets, including autos, gasoline, department stores and hardware stores. Excluding autos, sales increased 1.1%. Excluding gasoline, sales increased 1.3%. Ahead of the report, economists were expecting a tamer-but-still-strong 0.8% rise in retail sales, with a 0.6% increase in sales excluding motor vehicles. Retail sales in the previous two months were revised higher by a total of 0.3 percentage points.

I know I'm spending more and buying less :eyes:

(edited for typo)

[MARALE]

29. Looks like people are jumping on the refinancing

bandwagon and buying things left and right. If you look at how the mortgage applications went up "surprisingly", I wasn't really surprised with this retail number. All the people that waited to refinance have decided to before the rates go up again and they are using that money to buy bigger ticket items. This is part of the bubble out there.

[AnneD]

33. Morning UIA

:spray: you are too clever.

[UpInArms]

35. Hiya AnneD!

glad that your adapter is hooked in and running!

I'm waiting for the spin about the strong jobs report versus the "surprising" rise in jobless claims.

Guess all those people are getting canned so that they can take their places in the "new economy" jobs of birth/death. :shrug:

[UpInArms]

24. filling in the blanks:

May 12	8:30 AM	Initial Claims		05/07	340K	320K	325K	336K	333K	
May 12	8:30 AM	Retail Sales		Apr	1.4%	0.7%	0.7%	0.4%	0.3%	
May 12	8:30 AM	Retail Sales ex-auto	Apr	1.1%	0.7%	0.5%	0.2%	0.1%

looks like they "adjusted" last week's unemployment claims up 3,000 - again :eyes:

[AnneD]

54. They must not think

that some of us have caught on to that little trick. But that begs the question why haven't others on Wall St caught on......Oh, silly me, I forgot. They only make tons of money when Main St buys in to the illusion. :puffpiece:

[UpInArms]

55. the facts must never get in the way of the illusion ..... eom

[UpInArms]

9. Fed's Geithner warns of structured debt risks-FT

http://www.reuters.com/financeNewsArticle.jhtml?type=economicNews&storyID=8462408§ion=investing

LONDON, May 12 (Reuters) - The growth in structured credit products may have left investors more vulnerable to losses if an unexpected economic shock hits the system, the New York Federal Reserve's president said in an interview on Thursday.

Timothy Geithner did not foresee such a shock, but warned of greater risks if the market does enter the "tail," a term used by bankers to describe the chance of a statistically rare event occurring.

"The growth of credit derivatives and other forms of risk transfer seem to have made the system more stable," Geithner was quoted as saying. "But these gains may have come at the price of increasing uncertainty and potential losses if we end up in the 'tail'."

<snip>

U.S. and European corporate bonds weakened this week amid rumours that Ford and GM's recent downgrades to junk status had forced hedge funds to unwind some $8 billion of complex credit derivatives trades.

...more...

[UpInArms]

47. Globalization has reduced inflation: Ferguson

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38484.4902637037-835306989&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Increased globalization of financial services may be a factor in lowering inflation rates around the world, Federal Reserve Vice Chairman Roger Ferguson said Thursday in a speech for delivery in San Francisco. In his prepared remarks, Ferguson said, "It may be that globalized financial markets are more effective at punishing inflationary policies and that increased competition in goods markets helps to tame inflationary pressure." He acknowledged that globalization has been blamed for economic instability, but he argued "the correct response is to get policy right, not to turn the clock back on globalization." Ferguson made no remarks about U.S. monetary policy or the current economic environment.

These blathering Fed-Heads make me :puke:

[AnneD]

56. UIA....let me help you with your nausea issues....

You need to relax, and try some yoga techniques of deep breaths and focused visualizations. Now, close your eyes and take some deep breaths, focus on Mr Fergusons statement....breath....now visualize every worker in the world...that's it....now envision all of them trying to grab at the same handful of coins thrown down from the luxury box seats...now breathe....now visualize the economic instability shaking the pillars of the luxury box seats til they come crashing down....now slow deep breaths.....now visualize every worker in the world taking a corrective response on those in the box seats....take a deep cleansing breath and open your eyes....feel better-I know I do.

[UpInArms]

59. thanks AnneD! The "corrective actions" really

made me feel so much better!

[UpInArms]

13. Layoffs planned by 2 area suppliers

http://toledoblade.com/apps/pbcs.dll/article?AID=/20050512/BUSINESS06/505120425

ThyssenKrupp Budd Co. plans to lay off 90 to 100 employees in its North Baltimore, Ohio, factory this summer, with most expected to be called back to work early next year, the auto supplier said.

The 250-employee factory makes composite auto body panels and pickup boxes. The layoffs are because of discontinuation or delay of customer contracts. The furloughs are expected to begin June 20, the company said.

Another northwest Ohio factory, Tower Automotive Inc. in Upper Sandusky, also said in the past few days it will lay off 59 of 170 employees for an indefinite period starting July 8 because of a production cut. The plant makes parts including brake backing plate assemblies, control arms, and heat shields.

[UpInArms]

14. SEC mulling reforms to securities offering process

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38484.3746894097-835298526&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- The Securities and Exchange Commission is considering reforms that would allow giving investors more access to information during the securities offering process, SEC Chairman William Donaldson said in a prepared speech Thursday. Donaldson also said the SEC is mulling a proposal that would require more disclosure about mutual funds at the point of sale. In a wide-ranging speech before a financial group, Donaldson also defended the Sarbanes-Oxley law and the agency's decision to register hedge fund advisers.

[converted_democrat]

15. Good Morning...........

And thank you so much UpInArms and Ozzy for your wonderful welcomes yesterday!!!!!Have a good day!!!!!!!!


Stacy

[UpInArms]

18. good morning converted_democrat!

Glad to see you this morning!

:hi:

[UpInArms]

19. CAFTA is a sour deal for sugar industry

http://www.miami.com/mld/miamiherald/news/opinion/11624568.htm

We remember the promises of all the economic and social benefits for the United States and Mexico if Congress would approve the North American Free Trade Agreement (NAFTA). Today, no one could say with a straight face that it worked out as promised. On the contrary, Florida suffered a net loss of 35,511 jobs as a direct consequence of NAFTA. Manufacturing jobs were lost across the country as factories moved over the border to take advantage of cheaper labor. And, in Mexico, workers' wages are even lower today than before NAFTA.

Incredibly, the ideologues who brought us the NAFTA debacle are trying again. The Central American Free Trade Agreement (CAFTA) is this decade's stalking horse for so-called free trade. If CAFTA passes, the people at fault will be those who were fooled a second time. Fortunately, this time, there are more doubters. The ''promises'' to improve the conditions of workers, the environment and democracy in CAFTA countries will turn out empty, just as they did in NAFTA.

Before NAFTA, we had a trade surplus with Mexico, today we have a $200 million trade deficit. Despite promises to the contrary, Florida farmers have been devastated by cheap, unregulated crops. Florida's tomato crop is all but gone, and hundreds of farms are out of business. And, none of the promised consumer savings has been realized. Despite the promises to ship American corn and corn products to Mexico in exchange for Mexican sugar shipped here, Mexico has not allowed one grain south. CAFTA will be the same snare and delusion because despite the well-known impacts of NAFTA, free traders believe that ``we are always one free-trade agreement away from prosperity.''

...more...

That "giant sucking sound" :eyes:

[UpInArms]

40. Bush meets CAFTA leaders

Seeking to jump-start trade pact in skeptical Congress

http://www.marketwatch.com/news/story.asp?guid=%7B9B2BF428%2DA8D6%2D4E0C%2DB61E%2D47657D95535A%7D&siteid=mktw

WASHINGTON (MarketWatch) - President Bush is meeting with five Central American presidents and the president of the Dominican Republic on Thursday as part of an effort to jump-start the free-trade agreement that is stalled in Congress.

Urged by supporters of the Central American Free Trade Agreement to become personally involved, Bush will lobby for support of the deal from the White House's Rose Garden after meeting with the leaders.

Meeting with Bush are President Abel Pacheco of Costa Rica, President Leonel Fernandez of the Dominican Republic, President Elias Antonio Saca of El Salvador, President Oscar Berger of Guatemala, President Ricardo Maduro of Honduras and President Enrique Bolanos of Nicaragua.

Many Congressional Democrats are against the CAFTA agreement because they say it does nothing to improve the conditions of workers in the countries. They point to a study by the International Labor Rights Fund that found labor standards in the CAFTA countries were not up to international standards. See full story.

...more...

You can bet that if something is a bad idea, this buffoon will try to ram it through.

[UpInArms]

46. stupidity confirmation #783,472

11:44am 05/12/05 BUSH SAYS HE WILL JOIN EFFORT TO PASS CAFTA IN CONGRESS

[RawMaterials]

21. Survey: Many firms cut 401(k) matches

Three-quarters of Colorado employers offer 401(k) plans, but companies have downsized their generous matching contributions from three years ago.

"(In 2002) there was more competition for workers, and companies were using 401(k)s as a recruiting tool - saying, 'We're giving you money,' " said Patty Goodwin, director of surveys for the Mountain States Employers Council.

snip..

The 401(k) contributions come from company profits, meaning they're flexible, which is why companies like them. In recent years, companies haven't had profits to give away.

Other line items are taking a bite out of the employee benefit budget, said Daniel Nemmers, senior vice president of retirement services for the Lockton Companies of Colorado.

"Health care costs continue to go up, so it's kind of a balancing act in terms of 'What do we provide our employees?' " Nemmers said.

Reduced company contributions haven't deterred employees from joining 401(k)s, but they could affect the amount they save.

Seventy percent of eligible Colorado employees contributed to a 401(k) plan in 2005, about the same as in years past.

But data from the Profit Sharing/401(k) Council of America show that in 2003 the average percent of pretax salary deferral fell to 5.2 percent from 5.3 percent in 2001 and 5.5 percent in 1999.

Ledbetter said contribution levels are on the rise. "With all of the focus on Social Security . . . ," he said, "the most recent studies show that overall participation in 401(k)s has gone up

http://www.rockymountainnews.com/drmn/business/article/0,1299,DRMN_4_3770921,00.html

[UpInArms]

41. Economic nightmare for the poor, middle class

http://www2.townonline.com/braintree/opinion/view.bg?articleid=242894&format=text

At a rare TV press conference recently, President Bush called on Congress to pass his privatization plan for Social Security after weeks of telling the public that he would be "open" to other ideas as long as those ideas included personal accounts.

According to his past practice, President Bush has no intention of consulting the Democrats, who introduced Social Security to Americans under FDR, benefiting millions over the years.

President Bush is systematically dismantling all of the major social programs instituted by the Democrats: Medicare, Medicaid, etc.

President Bush talked about a "sliding scale" in his privatization plan, but offered no details. He said that he was concerned about lower wage earners getting a better return upon retirement, yet his administration refused to entertain a raise in the minimum wage, which would have helped the lower wage earners immediately and boosted their Social Security checks at retirement.

No way is this president concerned about the lower wage earners who are barely making it and now have to contend with cuts in domestic programs, including health care. The "sliding scale" gimmick is a ploy to make Social Security into a second hand welfare program, and privatization will eventually starve the trust fund out of existence for lack of adequate contributions.

...more...

[ozymandius]

51. The Bush non-plan: like lipstick on a pig

[UpInArms]

44. Is your retirement money safe?

http://www.post-gazette.com/pg/05132/503398.stm

excerpt:

It's with traditional pension plans, like the ones that United Airlines parent UAL Corp. wants to default on, where most of the problems occur. Companies terminate pension plans all the time, either because of a bankruptcy, a merger or a conversion into a 401(k)-type system. The problem is that pension money doesn't technically belong to an employee until it's paid out, and thus is sometimes vulnerable to the company's fortunes. Benefits are guaranteed by the Pension Benefit Guaranty Corp., a quasi-government agency that takes over failed pensions. Currently, it protects only up to $45,614 a year.

By contrast, defined-contribution accounts like 401(k)s legally belong to the employee. That means that you're generally protected even if your employer goes bankrupt. But there have been cases of fraud. In some situations, for example, an employer collects 401(k) contributions from workers' paychecks, then fails to deposit the money in the workers' investment accounts. There were 1,269 cases of missing 401(k) money reported last year, a sharp increase from the 34 cases reported in 1995.

There isn't much formal protection against 401(k) fraud, and recovering misused funds is extremely difficult. The federal government requires annual audits for retirement plans with at least 100 workers. But that leaves out most 401(k)s and other defined-contribution plans. According to the Labor Department's most recent statistics, 627,905 such plans covered fewer than 100 workers in 1999. Only 55,195 such plans fell under the rule that requires audits.

...more...

[RawMaterials]

22. China Issues New Restrictions on Real Estate Sales (Update5)

May 12 (Bloomberg) -- China said it will impose new taxes and restrictions on real estate transactions to curb speculation that's caused what the government calls a property price bubble.

Home buyers who sell within two years of purchase will have to pay a tax on the sale price starting June 1, the official Xinhua news agency said, citing rules announced by seven government agencies. The rate of tax wasn't specified. The government will revoke land-use rights for sites kept idle for more than two years to prevent hoarding by speculators.

Shares of China Vanke Co. and Shanghai Shimao Co. led a slump in property stocks on concern the measures will slow demand and reduce home prices, which jumped 13.5 percent in the first quarter from a year earlier. Premier Wen Jiabao is seeking to cool speculation without disrupting growth in China, the world's fastest-growing economy and its biggest consumer of steel, copper and cement.

snip..

`Flipping' Ban

China's government has imposed a series of measures this year to cool urban home prices, which jumped 19 percent in the first quarter from a year earlier in Shanghai, the nation's biggest commercial city and fastest-growing property market.

Under the rules announced today, buyers of unbuilt or unfinished properties will be banned from reselling before construction has been completed, a practice known as ``flipping,'' Xinhua said. Land idle for more than a year after purchase will also be taxed, according to the report.

``These measures are specifically targeted at property investors and speculators,'' said Sun Jianping, an analyst at Guotai Junan Securities Co in Shanghai. ``We expect house price increases will slow down this year. In some places, such as Shanghai, prices will go down.''

Social Tension

China's government is concerned that speculation has been pushing home prices beyond the reach of most buyers, fueling social tension and raising the risk of a collapse.

Rising property prices pose a threat to the stability of the economy, the State Council, China's cabinet, said in a March circular that ordered city governments to take measures to rein in growth. The government should encourage ``buying for living instead of investing,'' Zheng Jingping, spokesman the Beijing- based National Bureau of Statistics, said on April 20.

The Shanghai government on April 6 started requiring home owners to pay off mortgages before selling their properties, adding to a 5.6 percent capital gains tax imposed in March. New home prices in Shanghai fell 9 percent in April compared with March, eHomeday.com, the city's biggest property news Web site, reported on May 2.

snip..

Yuan Speculation

China imposed curbs on real estate starting in June 2003, when the central bank ordered domestic lenders to tighten property lending to reduce loan risk and avoid a bubble. The restrictions were expanded last year to include other industries, in a campaign to slow fixed-asset investment that the government blamed for causing raw materials shortages and fueling inflation.

Still, real estate investment climbed 27 percent from a year earlier to 232 billion yuan ($28 billion) in the first quarter, helping the economy to expand at a faster-than-expected 9.5 percent rate. The government has set an economic growth target of 8 percent for this year.

Speculation that China may relax the yuan's decade-old peg to the U.S. dollar has fueled overseas investment in property in cities such as Shanghai, according to analysts such as Ha Jiming.

``In some areas in China, especially in the Yangtze Delta Region, there's a serious property bubble,'' said Hai, of China International Capital Corp. in Beijing. ``I expect to see more measures, because as long as there's still speculation on a yuan revaluation, investors and speculators both at home and abroad will continue to channel money into China's property market.''

The measures reported by Xinhua were issued by the Ministry of Construction, the National Development and Reform Commission, the Ministry of Finance, Ministry of Land and Resources, People's Bank of China, the State Administration of Taxation and the China Banking Regulatory Commission. The announcements haven't yet been posted on any of the agency's Web sites.


http://www.bloomberg.com/apps/news?pid=10000080&sid=aNKV3_MtnE5s&refer=asia

[UpInArms]

23. Thomsen to be top SEC enforcement official: sources

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38484.3944511458-835300100&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- The Securities and Exchange Commission will name Linda Thomsen enforcement director Thursday, people familiar with the matter said. Thomsen served as a deputy to Stephen Cutler, who left the commission Wednesday for a job in the private sector. The SEC's enforcement division investigates securities fraud like insider trading and other schemes.

[UpInArms]

26. 9:36 EST markets are open and pre-opening blather

Dow 10,294.93 -5.32 (-0.05%)
Nasdaq 1,973.64 +2.09 (+0.11%)
S&P 500 1,170.69 -0.42 (-0.04%)
10-Yr Bond 4.222 +0.20 (+0.48%)

NYSE Volume 44,034,000
Nasdaq Volume 64,968,000

briefing.com

9:15AM: S&P futures vs fair value: +0.2. Nasdaq futures vs fair value: -0.5.

9:00AM: S&P futures vs fair value: +0.1. Nasdaq futures vs fair value: -0.5. Still shaping up to be a relatively flat open for the cash market, as futures indications trade close to fair value... While strong April retail sales, coupled with better than expected earnings from TGT and MYL and a $1.35 bln acquisition by 3M Co. (MMM), have improved sentiment, it appears the overall disappointment from WMT continues to keep larger market gains in check

8:34AM: S&P futures vs fair value: +0.3. Nasdaq futures vs fair value: -1.5. Futures trade ticks a bit higher following economic data and now indicate a mixed open for the indices... Apr. retail sales checked in up 1.4%, well above expectations and versus a revised prior read of +0.4% (up from 0.3%), while ex autos rose 1.1%, also well above forecasts and versus a revised Mar. figure of +0.2% (up from 0.1%)... Initial claims rose 4K to 340K, above expectations... In response to the data, bonds have extended early losses, as the 10-yr note is now down 7 ticks yielding 4.22%

8:00AM: S&P futures vs fair value: -1.5. Nasdaq futures vs fair value: -4.5. Futures market suggesting a lower open for the cash market as investors weigh a disappointing report from Wal-Mart against sub-$50/bbl oil prices ahead of economic data... Wal-Mart Stores (WMT) has missed analysts' Q1 forecasts by a penny due largely to high gas prices, issued downside Q2 guidance and said that achieving its FY05 earnings target will be difficult... Crude oil futures falling to $49.92/bbl (-$0.53), amid slowing demand growth and supplies at 6-year highs, have arguably minimized market weakness...

ino.com

The June NASDAQ 100 was steady in quiet trading overnight as it consolidates some of Wednesday's rally but remains poised to test this year's downtrend line crossing near 1471.20. However; stochastics and the RSI are overbought and have turned neutral hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 1437.85 would signal that the short covering rally off April's low has come to an end. The June NASDAQ 100 was steady at 1461 as of 5:43 AM ET. Overnight action sets the stage for a steady opening by the NASDAQ composite index later this morning.

The June S&P 500 index was slightly higher overnight due to short covering and is working on a possible inside day as it consolidates above the 10-day moving average crossing at 1169.96. Stochastics and the RSI have turned bearish signaling that a short-term top might be in or is near. However, closes below the 20-day moving average crossing at 1161.08 are needed to confirm that the short covering rally off April's low has come to an end. If June extends this month's rally, the 50% retracement level of the March-April decline crossing at 1185 is the next upside target. The June S&P 500 Index was up 0.50 pts. at 1173 as of 5:50 AM ET. Overnight action sets the stage for a steady to higher opening when the day session begins later this morning.

[UpInArms]

28. updating blather

9:40AM: Market opens in lackluster fashion, as Wal-Mart's disappointment counters better than expected monthly retail sales data... April retail sales rose a much stronger than expected 1.4% (consensus +0.7%) while a 1.1% gain in retail sales, excluding autos, more than doubled economists' forecasts of 0.5%, as the March data were revised slightly higher...

However, even though April's data provide strong support to the argument that the weak March economic data reflected a temporary soft patch rather than the start of a trend, a Q1 earnings miss and downside Q2 guidance from retail giant Wal-Mart (WMT 46.70 -1.90) has so far stalled follow-through buying interest in stocks...

Silly rabbits - tricks are for kids!

Wish these fools would take of their glasses and realize that this is what inflation looks like :grr:

[UpInArms]

30. 10:04 EST numbers and blather

Dow 10,283.70 -16.55 (-0.16%)
Nasdaq 1,971.11 -0.44 (-0.02%)
S&P 500 1,168.94 -2.17 (-0.19%)
10-Yr Bond 4.224 +0.22 (+0.52%)

NYSE Volume 211,261,000
Nasdaq Volume 240,925,000

10:00AM: Equities now on the defensive as the bulk of sector leadership remains negative... Energy has paced the way lower as oil prices trade below $50/bbl while interest-rate sensitive areas like Utility and Homebuilding have been weak amid rising bond yields... The Materials sector has been weak as the dollar rises to a 6-month high against the euro (1.2709) while weakness in Brokerage has minimized gains in Financial... Health Care and Technology, however, have seen strength across the board while Telecom Services has posted a modest gain... NYSE Adv/Dec 1275/1103, Nasdaq Adv/Dec 1417/846

(updating with blather)

[UpInArms]

34. Soft spot fears ease after strong retail

http://www.reuters.com/newsArticle.jhtml?jsessionid=MRVVCDHV34F0ACRBAE0CFEY?type=businessNews&storyID=8470983

WASHINGTON (Reuters) - Worries about a slowing in the U.S. economy receded on Thursday as spending across a wide range of sectors pushed April retail sales to their strongest showing in seven months.

A larger-than-expected rise in jobless claims presented a slight cloud on the horizon, but financial markets focused on the heavy spending of consumers as the second quarter began.

The Commerce Department said retail sales jumped 1.4 percent, double Wall Street forecasts, on broad-based gains.

The April sales number should add weight to contentions by Federal Reserve officials that a recent oil-induced tail-off in growth is likely to prove temporary.

Still, first-time jobless claims rose to 340,000 in the week ending May 7, versus forecasts for 325,000.

...more...

(linky now fixy :D )

[54anickel]

37. Linky no worky...eom

[UpInArms]

38. fixed that stubbon linky ....... eom

[54anickel]

45. Thank-ee...eom

[UpInArms]

39. Bonds quiet ahead of 10-yr auction

Earlier strong sales data sparked selling

http://www.marketwatch.com/news/story.asp?guid=%7B25560626%2D2315%2D4CBA%2D9899%2DBA93BD520DD4%7D&siteid=mktw

NEW YORK (MarketWatch) - Treasury prices were little changed Thursday morning as investors behaved cautiously ahead of an afternoon auction of 10-year notes.

The yield on the 10-year note was 4.22%, unchanged from its early morning level. In late trade Wednesday, the yield stood at 4.20%.

All eyes were trained on this afternoon's auction of 10-year notes.

"We suspect Thursday's sale will go off without a hitch. While it may not be stellar, safe haven flows, stretch for yield, and curve flattening trades provide support, even at rich yield levels," said Action Economics on its website.

Respective Treasury sales on Tuesday and Wednesday of three-year and five-year maturities were well received and appeared to attract large numbers of "indirect" bidders, a category that includes foreign central banks.

Indications of foreign central bank bidding cheered the fixed-income market, which in recent months has been undermined by fears that these institutions will diversify away from Treasurys and into euro-denominated assets.

...more...

[UpInArms]

58. auction results

1:11pm 05/12/05 TREASURY 10-YR. AUCTION PRODUCES MEDIAN YIELD 4.188%

1:11pm 05/12/05 TREASURY 10-YR. AUCTION PRODUCES HIGH YIELD 4.220%

1:10pm 05/12/05 TREASURY 10-YEAR AUCTION PRODUCES BID-TO-COVER OF 2.33

[UpInArms]

60. Treasury 10-yr auction draws 31% 'indirect' bidders

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38484.557647581-835311553&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) - A U.S. Treasury auction of new 10-year notes produced a bid-to-cover - or bids offered to bids accepted - ratio of 2.33%, a median yield of 4.22%, with 31.4% of the bids offered by "indirect" bidders. The category of "indirect" bidders includes foreign central banks. Action Economics on its website described participation by indirect bidders as "solid." Strong participation by foreign central banks generally was cheered by the fixed-income market because of recent worries that these institutions would diversify away from Treasurys and into euro-denominated assets.

I wouldn't exactly call 31% strong. I believe we need that number to be at or around 40%.

[UpInArms]

42. 11:02 EST numbers and blather

Dow 10,286.87 -13.38 (-0.13%)
Nasdaq 1,974.05 +2.50 (+0.13%)
S&P 500 1,168.61 -2.50 (-0.21%)
10-Yr Bond 4.220 +0.18 (+0.43%)

NYSE Volume 554,089,000
Nasdaq Volume 580,616,000

11:00AM: Choppy trading persists as stocks still struggle to find direction around the unchanged mark... Contributing to the volatile action early on have been wild swings in Financial... The influential sector has been in focus amid a proposal by former Morgan Stanley (MWD 49.80 -0.05) execs to spin off its Institutional Securities Business while Ameritrade (AMTD 13.71 -0.05) has said it is not for sale... Also weighing on sentiment has been a recent announcement by Ford (F 9.27 -0.37) that it will halt the trading of commercial paper... NYSE Adv/Dec 1514/1380, Nasdaq Adv/Dec 1541/1122

(added blather on edit)

[UpInArms]

43. U.S. mortgage rates inch higher

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38484.4587085069-835304695&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

PALM BEACH, Fla. (MarketWatch) -- U.S. mortgage rates edged up slightly in the week ending Thursday, Freddie Mac said, but fixed rates remained well below their year-ago levels. The national average interest rate on the benchmark 30-year mortgage was 5.77%, up from 5.75% a week earlier, the mortgage agency's (FRE) weekly survey showed. Rates on 15-year, five-year hybrid adjustable and one-year Treasury-indexed adjustable mortgages also all inched higher. Last year the 30-year loan stood at 6.34%.

[ozymandius]

48. 12:10 markets are mixed

Dow 10,292.35 -7.90 (-0.08%)
Nasdaq 1,977.28 +5.73 (+0.29%)
S&P 500 1,170.05 -1.06 (-0.09%)
10-Yr Bond 4.224% +0.02

NYSE Volume 844,662,000
Nasdaq Volume 835,454,000

12:00PM: Market still trades with a tinge of caution midday, as strong monthly retail sales data and plummeting oil prices struggle to offset Wal-Mart's disappointing quarterly report... April retail sales rose a much stronger than expected 1.4% (consensus +0.7%) and retail sales, excluding autos, surged 1.1% (consensus +0.5%), as the March data were revised slightly higher... Meanwhile, crude oil futures ($48.70/bbl -$1.75) have been under pressure all morning amid slowing demand, inventory builds and a stronger dollar...
However, even though a sharp decline in oil has eased pressures on discretionary spending and April's sales data - the best showing in seven months - indicate that the concern exhibited from weak March retail data was overdone, Wal-Mart's (WMT 47.42 -1.18) disappointment has weighed on sentiment and left sector leadership mixed... The retail giant missed analysts' Q1 estimates by a penny, issued Q2 earnings guidance below consensus and said that its FY05 outlook is "still possible, but far more difficult to achieve."...

Energy (-2.4%) has paced the way lower amid a 3.5% sell-off in oil while the Materials sector (-1.0%) has also been weak as the dollar has risen to its best levels so far this year against the euro (1.2708)... News that U.S. Steel (X 39.80 -2.30) has cut its forecast of 2005 domestic shipments for the second time in three weeks has also weighed on the sector... Interest-rate sensitive areas like Financial, Utility and Homebuilding have been under pressure amid rising bond yields... Treasurys have been weak following the strong retail data ahead of an upcoming $14 bln 10-year note auction, as the benchmark 10-year note is down 5 ticks to yield 4.22%...

[UpInArms]

50. Hi Ozy!

there we are - reaching for that shiny coin together again :hi:

[ozymandius]

52. Ha! You know I am mesmerized by shiny objects. n/t

[UpInArms]

49. Ford bonds hit by Moody's downgrade

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38484.5080909722-835308198&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Bonds issued by Ford Motor Co. (F) moved lower Thursday after Moody's cut the company's credit rating to Baa3, one level above junk status. Ford's 7.45% bond due 2031 was last yielding 10.063%, according to corporate bond tracker Market Axess. Its spread, or difference in yield to a comparable, lower-risk Treasury, widened 12 basis points to 550 basis points. Shorter-dated issues were also hit, with Ford's 7% note due 2013 yielding 9.263%. Its spread widened 7 basis points to 504 basis points over a Treasury.

[UpInArms]

53. GM, Honda pitted at the pump

http://www.marketwatch.com/news/story.asp?guid=%7B6CFBB89B%2DCAAC%2D4053%2D988F%2D869C33F8F602%7D&siteid=mktw

WASHINGTON (MarketWatch) -- When it comes to fuel economy, two of the biggest carmakers are aiming at vastly different markets - those who prize performance vs. those who value efficiency.

At a conference in Washington this week hosted by the Alliance to Save Energy, officials from General Motors (GM: news, chart, profile) and Honda Motor Co. (HMC: news, chart, profile) squared off over the issue.

For General Motors, the customer is king. The U.S. auto giant says it merely builds what customers want - larger, more power vehicles where fuel efficiency takes a backseat to other perks.

"Focusing on fuel efficiency misses the larger point about customer preference and the consumers are speaking loud and clear in the marketplace," said Keith Cole, GM's director of legislative and regulatory affairs.

While Honda thinks the internal combustion engine will remain at the heart of the auto industry for years to come, it is prepared to further boost the fuel economy of its fleet at any time.

...more...

Consumers are "speaking loud and clear" in that GM's sales tanked and they have been rated "junk".

sheesh!

[ozymandius]

57. The rivalry goes beyond fuel issues. It's also a reliability issue.

How often and how much will you have to pay to fix that car?

http://www.consumerreports.org/main/content/autos/atoz.jsp?FOLDER%3C%3Efolder_id=333137&ASSORTMENT%3C%3East_id=333137&CONTENT%3C%3Ecnt_id=25035&bmUID=1115916482706

GM's models fall to the wayside when compared to both Honda and Toyota.

[UpInArms]

61. 1:29 EST numbers and blather

Dow 10,287.47 -12.78 (-0.12%)
Nasdaq 1,975.87 +4.32 (+0.22%)
S&P 500 1,169.15 -1.96 (-0.17%)
10-Yr Bond 4.234 +0.32 (+0.76%)

NYSE Volume 1,085,746,000
Nasdaq Volume 1,028,380,000

1:00PM: More of the same for the averages as the blue chip indices and Nasdaq continue to trade in opposing directions... Helping the tech-heavy Nasdaq cling to modest gains has been broad-based buying in Semiconductor, as chip makers like Broadcom (BRCM 32.18 +0.70) and Marvell (MRVL 35.29 +0.94) - both with large exposure to Cisco Systems (CSCO 18.76 +0.21) - have surged... Other notable Nasdaq gainers include EBAY (+2.2%), ORCL (+2.1%), DELL (+1.1%) and YHOO (+1.0%)...NYSE Adv/Dec 1155/1958, Nasdaq Adv/Dec 1378/1510

12:30PM: Little changed since the last update, as the major averages continue to vacillate in roughly the same ranges... Within the last 30 minutes, Moody's has downgraded Ford's (F 9.47 -0.17) debt to Baa2 - its lowest investment grade rating - from A3... Earlier, Ford halted the trading of its commercial paper, reminiscent of the last time Ford made such a move (one week ago today) just before S&P subsequently downgraded its credit rating...

While a flight-to-safety bid is usually seen in Treasurys after a downgrade in auto makers, bonds have actually fallen even further, as the 10-year note is now off 9 ticks to yield 4.23%... Ford shares, however, have rebounded somewhat now that the already anticipated decision has come to fruition... NYSE Adv/Dec 1385/1685, Nasdaq Adv/Dec 1479/1389

[loudsue]

62. G'day Marketeers!

:hi: Just checkin' in with the Market Watch thread....

The market looks like it's tryin' to come down with a bug, or sumpin! It's not sick, exactly, but it sure doesn't look like it feels too great.

:hug: You guys are the BEST! And.... Thanks for the toon, Ozy! That one says it ALL!

:kick::kick::kick:

[UpInArms]

65. 1:48 EST - diagnosis (flu - as in the investors flu from the market)

Dow 10,260.35 -39.90 (-0.39%)
Nasdaq 1,970.44 -1.11 (-0.06%)
S&P 500 1,166.13 -4.98 (-0.43%)
10-Yr Bond 4.225 +0.23 (+0.55%)

NYSE Volume 1,157,473,000
Nasdaq Volume 1,088,966,000

[UpInArms]

63. Mass. subpoenas Gillette execs on P&G

http://www.businessweek.com/ap/financialnews/D8A1OFOG0.htm?campaign_id=apn_home_down

MAY. 12 12:44 P.M. ET The state's top securities regulator has issued subpoenas to four top Gillette Co. executives after the company said e-mail about its pending acquisition by Procter & Gamble Co. may have been deleted.

The subpoenas from Secretary of State William Galvin come amid a court battle over his attempts to examine documents and e-mail from Gillette in his investigation of the $57 billion deal. With both companies' shareholders scheduled to vote on the deal next month, Galvin has questioned whether P&G is paying too little for Gillette.

The four executives are expected to offer sworn testimony next week, according to copies of the subpoenas Galvin issued Wednesday.

<snip>

But Galvin is also seeking e-mail from Gillette executives to determine whether they withheld information from shareholders that might influence their vote on the P&G acquisition.

In a court filing Monday, Gillette said it was "possible" that senior executives deleted e-mail that may have included discussions of the deal. The filing said employees who may be subject to a subpoena from Galvin "simply did not retain e-mail and, instead, had a regular practice of deleting it."

...more...

curious :eyes:

[UpInArms]

64. Gillette execs to get huge payout after P&G purchase

http://cincinnati.bizjournals.com/cincinnati/stories/2005/05/09/daily32.html

The top brass at Gillette Co. stand to collect about $450 million in severance and other benefits when the razor maker is acquired by Procter & Gamble Co.

The sum, detailed in a regulatory filing, includes about $164 million for Gillette CEO James Kilts.

Kilts' platinum parachute has been a controversial issue, raising the ire and scrutiny of Massachusetts Secretary of State William Galvin, whose securities division is examining the proposed deal. Gillette in April filed court documents seeking to block a subpoena issued by Galvin.

The filing with the Securities and Exchange Commission detailed a severance and change-of-control pay out of $274 million for Kilts and Gillette's four other top-paid executives. Other top company executives will be paid about $176 million, according to the document.

...more...

no longer curious - the louts are just preparing the golden parachutes :eyes:

[ozymandius]

66. 2:09 flight from stocks to security - whatever security means anymore...

Dow 10,262.04 -38.21 (-0.37%)
Nasdaq 1,971.42 -0.13 (-0.01%)
S&P 500 1,166.44 -4.67 (-0.40%)
10-Yr Bond 4.209 +0.07 (+0.17%)

NYSE Volume 1,247,466,000
Nasdaq Volume 1,155,156,00

2:00PM: Sellers show some resolve, as the blue chip indices slip to session lows... Within the last 15 minutes, both the Dow and S&P have failed to find support near key levels of 10275 and 1167, respectively, and fallen further into negative territory, perhaps due to a futures related sell-off... Arguably providing the majority of the weakness has been a 2.5% decline in shares of ExxonMobil (XOM 55.85 -1.44) and a 1.9% drop in Wal-Mart (WMT 47.67 -0.93) - which combine for roughly 5% of the total weight on the S&P...
Other S&P constituents rounding out the top five laggards include: CVX (-2.5%), COP (-4.2%) and DOW (-3.3%)...NYSE Adv/Dec 1164/2041, Nasdaq Adv/Dec 1313/1645

[UpInArms]

67. 2:24 EST numbers - what happened? sinking like a rock

Dow 10,219.19 -81.06 (-0.79%)
Nasdaq 1,964.88 -6.67 (-0.34%)
S&P 500 1,161.80 -9.31 (-0.79%)
10-Yr Bond 4.206 +0.04 (+0.10%)

NYSE Volume 1,319,188,000
Nasdaq Volume 1,208,279,000

[UpInArms]

68. 2:33 EST numbers and blather

Dow 10,223.40 -76.85 (-0.75%)
Nasdaq 1,965.37 -6.18 (-0.31%)
S&P 500 1,162.23 -8.88 (-0.76%)
10-Yr Bond 4.202 0.00 (0.00%)

NYSE Volume 1,374,787,000
Nasdaq Volume 1,257,628,000

2:30PM: Bearish tone persists in stocks as the indices extend their reach into negative territory... Continued selling pressure across the board now have all ten economic sectors trading lower... Even though valuations have improved significantly over the past six months, as earnings have risen at a very good rate over the last two quarters, the fact that Energy (-4.1%) and Materials (-2.6%) - with year-over-year quarterly EPS growth of 42% and 64%, respectively - have been the worst performing sectors today, has further weighed on sentiment... NYSE Adv/Dec 1112/2122, Nasdaq Adv/Dec 1216/1746

Treasuries seem to be reversing course - wing-ed monkies flying in to the market?

(added blather on edit)

[ozymandius]

69. Al-Zarqawi has been seriously injured in Iraq again. Yeah...right.

[MARALE]

70. LOL!

I love that scene! "Come on back ya coward, I cun still take ya!"


What is happening? I step away from the computer and the floor drops! I have been reading all good news (spin) I am confused!

[UpInArms]

72. 2:51 EST (we need a doctor in here - stat!)

Dow 10,208.11 -92.14 (-0.89%)
Nasdaq 1,960.31 -11.24 (-0.57%)
S&P 500 1,160.09 -11.02 (-0.94%)
10-Yr Bond 4.184 -0.18 (-0.43%)

NYSE Volume 1,459,452,000
Nasdaq Volume 1,333,339,000

[UpInArms]

71. I can still spit on you! ........ eom

[UpInArms]

73. Enron defendants sentenced to 3 years

http://www.businessweek.com/ap/financialnews/D8A1PQCG0.htm?campaign_id=apn_home_down

MAY. 12 2:15 P.M. ET A former Merrill Lynch executive was sentenced Thursday to three years and a month in prison for participating in a sham deal that helped Enron Corp. fool Wall Street into believing it met earnings targets.

But after issuing the prison term, U.S. District Judge Ewing Werlein agreed to ask the Federal Bureau of Prisons to order Robert Furst of Dallas to report to prison after he celebrates his 20th wedding anniversary June 29.

Furst was among four former executives of Merrill Lynch & Co. and a former Enron midlevel finance executive convicted last year of conspiracy and fraud. They helped push through Enron's bogus 1999 sale to the brokerage of power plants mounted on barges so the energy company could disguise a loan as a sale on the books.

<snip>

The two most senior of the Merrill defendants were sentenced last month. Furst was the first of the remaining three to be sentenced Thursday. Dan Boyle of Houston, the former Enron executive, and William Fuhs of Denver, the least senior of the Merrill defendants, were to be sentenced Thursday afternoon.

<snip>

"Today is a new low for me," Furst told the judge in a choked voice. "All of my hard work, my reputation and character are down the drain."

...more...

[UpInArms]

74. 3:02 EST numbers and blather

Dow 10,214.68 -85.57 (-0.83%)
Nasdaq 1,963.21 -8.34 (-0.42%)
S&P 500 1,161.26 -9.85 (-0.84%)
10-Yr Bond 4.180 -0.22 (-0.52%)

NYSE Volume 1,524,890,000
Nasdaq Volume 1,389,351,000

3:00PM: Indices continue to languish near their lows of the session as buying interest remains scarce across the board... Treasurys, however, have witnessed a relief rally amid the ongoing sell-off in stocks and commodities, as the 10-year note is now up 6 ticks to yield 4.17%... Also providing support has been a respectable $14 bln 10-year note auction, which witnessed decent indirect bidder participation of 31.4% as well as unusually strong direct bidder participation of 18.9% - the largest since the Treasury began recording such data in May 2003... NYSE Adv/Dec 979/2267, Nasdaq Adv/Dec 1130/1846

did someone put a clamp on that brachial artery?

(added blather on edit)

[AnneD]

75. there is only so much you can do.....

then you turn it over to the faeries.

[UpInArms]

77. 3:18 EST and we have a gusher

Dow 10,194.00 -106.25 (-1.03%)
Nasdaq 1,959.15 -12.40 (-0.63%)
S&P 500 1,159.07 -12.04 (-1.03%)
10-Yr Bond 4.184 -0.18 (-0.43%)

NYSE Volume 1,605,602,000
Nasdaq Volume 1,454,620,000

[RawMaterials]

76. 3:16 EST Dow Down 101

Dow 10198.27 -101.98 (-0.99%)
Nasdaq 1959.16 -12.39 (-0.63%)
S&P 500 1159.62 -11.49 (-0.98%)
10-Yr Bond 4.182% -0.20

NYSE Volume 1,598,389,000
Nasdaq Volume 1,448,358,000

[ozymandius]

78. 3:35 - spurting red like the good Sir Knight

Dow 10,193.25 -107.00 (-1.04%)
Nasdaq 1,959.33 -12.22 (-0.62%)
S&P 500 1,158.76 -12.35 (-1.05%)
10-Yr Bond 41.84 -0.18 (-0.43%)
NYSE Volume 1,716,749,000
Nasdaq Volume 1,542,633,000

[UpInArms]

79. 3:37 - Sir Knight seems to have lost both legs

Dow 10,184.24 -116.01 (-1.13%)
Nasdaq 1,957.70 -13.85 (-0.70%)
S&P 500 1,157.80 -13.31 (-1.14%)
10-Yr Bond 4.184 -0.18 (-0.43%)

NYSE Volume 1,729,526,000
Nasdaq Volume 1,552,467,000

3:30PM: Selling remains the name of the game going into the close and ahead of Dell's earnings... While Dell (DELL 36.68 +0.14) has either matched or exceeded analysts' expectations over the last eight quarters, the market will arguably be more focused on guidance that could perhaps put IT spending concerns to rest... Even though DELL shares are down roughly 13.8% in 2005, pressured by concerns over its ability to meet fairly high forecasts, the stock has eked out a respectable gain in a down market...NYSE Adv/Dec 987/2295, Nasdaq Adv/Dec 1089/1916

[Roland99]

81. How's oil doing these days?

And there hasn't been much in the news the last day or so about China and the dollar.

[UpInArms]

83. got your oil right here - June crude loses almost $2 at close

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38484.638013588-835316220&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

DALLAS (MarketWatch) -- June-dated light sweet crude-oil futures dropped to a session low of $48.30 a barrel, but closed down at 3.8%, or $1.91, at $48.54 Thursday on the New York Mercantile Exchange. "With even the Energy Department confirming that revised crude oil data shows the latest 329.7 million barrel tally comparing with the figures from 1999, even the most stalwart bulls have to have their confidence shaken," said Tim Evans, senior market analyst at Alaron.com.

no word on the yuan at this time - seems like a quiet has settled over the planet - no one is talking or speculating (except S. Korea)

[Roland99]

85. Guess the Saudi/* handshake took a couple weeks to hit the market

[UpInArms]

88. it was those kisses that did the trick

:D

[ozymandius]

87. This story just hit the wires.

I am uncertain of its relevance to oil futures markets. However, it does sound an alarm about peak oil.

World Facing Energy Crisis Say Oil Producers

The world is about to face an energy crisis because the demand for oil keeps growing even though production is already at its maximum, Venezuelan President Hugo Chavez said yesterday.

Chavez, whose country is the world’s fifth largest crude oil exporter, said that all OPEC members were “producing at full steam.”

“There’s a worldwide energy crisis around the corner,” Chavez told reporters at the end of the first Summit of South American-Arab Countries in Brazil.

“Especially because the US and other developed countries, but more so the US, have built a way of life based on the wasteful consumption of oil, which is non-renewable.”

more...

http://news.scotsman.com/latest.cfm?id=4542302

[UpInArms]

89. *Co's response: White House wants oil price at $25 a barrel

http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=1463970

http://cnn.netscape.cnn.com/ns/news/story.jsp?id=2005051118340002871177&dt=20050511183400&w=RTR&coview=

The White House wants to see oil prices fall by about half to around $25 a barrel although reaching that goal may take time, President George W. Bush's top economic adviser said on Wednesday.

"We would like to see the price get back to around $25 a barrel, somewhere around there," Allan Hubbard, director of the White House National Economic Council, said in an interview with Reuters as crude oil prices hovered around $50, down from the record-high above $58.

Hubbard acknowledged: "It's going to take a while for the world energy supply to expand so prices can drop."

The administration has shied away in the past from giving a preferred target for oil prices.

An administration official said later that Hubbard was speaking "theoretically about a goal, but the White House is well aware that markets set the price for oil."

[ozymandius]

92. *: not a member of the Reality-Based Community.

Pardon me while I state the obvious.

[AnneD]

96. Yo Mama.....

:wtf: :rofl: Oh, Bush was making a joke....If he wants $25 a barrel, his lips need to be browner, he needs to be more serious with his man-date.

[Roland99]

101. Chavez may have a point but he also has an agenda and an axe to grind

[UpInArms]

80. 401k beneficiaries sue AIG over share price decline

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38484.6513388657-835316993&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- A group a beneficiaries of American International Group's (AIG) 401k saving plan have sued the company claiming the firm violated federal law and as a result their investment in AIG shares was damaged. The suit, revealed Thursday by lawyers at Mager White & Goldstein, charges that AIG's financial officers breached their fiduciary duty, leading workers to buy stock "while failing to disclose improper business practices, and disseminating false and misleading financial statements to investors." AIG is currently the target of several investigations. AIG shares have fallen about 25% in the last 3 months, while the broader S&P Insurance Index (IUX) has lost about 10% during the same period.

[UpInArms]

82. Irony Alert: Former RayGun budget director drives company into dirt

Collins & Aikman CEO Stockman resigns

http://www.freep.com/news/latestnews/pm4144_20050512.htm

David Stockman, the former Michigan congressman and Reagan budget director who tried to make a go of it as an auto executive, has left the struggling auto supplier he helped put together.

Collins & Aikman Corp., a Troy-based maker of plastic and fabric parts for the auto industry, said Stockman resigned Thursday as Chairman, CEO and member of the company’s board of directors.

Stockman is a partner at an equity fund called Heartland Industrial Partners that bought a majority stake in Collins & Aikman and then bought up other smaller suppliers in an attempt to build a supplier giant. Stockman is still a partner at Heartland.

He had been a director since 2001, chairman since 2002 and CEO since August 2003. The company did not provide a reason for his departure in a news release, but the company has been unable to make money for years and is now in the midst of an internal and external investigation over its accounting of various matters. That investigation is expanding into other areas, according to a C&A press release.

<snip>

The company said Thursday that preliminary indications are that its previous estimates of those accounting adjustments "will likely be understated."

In March, C&A identified at least $10 million to $12 million in improper accounting of supplier payments.

...more at link...

[UpInArms]

90. Standard & Poor's lowers ratings on Collins & Aikman

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38484.6588439352-835317465&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- Standard & Poor's Ratings Services on Thursday lowered its corporate credit rating for Collins & Aikman Corp. (CKC) to 'CCC-' from 'CCC+'. Standard & Poor's said it was concerned that the supplier of automotive interior products would seek bankruptcy protection in the near term because of severe liquidity pressures.

Long live Irony! Irony is Dead!

[54anickel]

102. Remember that article I posted about a month ago about Stockman?

David Stockman, Working-Class Hero
http://slate.msn.com/id/2087957


In 1981 the journalist William Greider laid out the economic self-deceptions of the Reagan administration, which would unbalance the federal government's books for the next two decades, in a classic Atlantic Monthly article titled, "The Education of David Stockman." David Stockman was President Reagan's budget director, a true believer in supply-side economics and the last powerful conservative to make a serious attempt at radically shrinking the size of government. His ambition to cut federal spending made him a poster child for Reaganomics and much-reviled by the left. (Click here for a representative Stockman caricature from that era.) Stockman told Greider he wanted to attack "weak claims," not "weak clients," but in the end, he couldn't prevent his budget cuts from falling disproportionately on the poor; the rich clients with weak claims proved too powerful to defeat. Ultimately, Stockman failed to achieve budget cuts of any kind sufficient to reverse a trend toward growing deficits fed by the Reagan administration's tax cuts. Greider's piece depicted Stockman as a brilliant young conservative idealist who gradually became disillusioned with the conservative movement's grand theories about how the world worked. In a memoir published five years later, Stockman expressed some disgust with the political process itself.

Greider's piece still makes for compelling reading today, not least because another White House in thrall to supply-side economics (or, more likely, cynical tax-cut politics) has once again created a huge federal budget deficit, today estimated by the Congressional Budget Office at $401 billion. Once again—remarkably, in this case, given President Bush's unwillingness to fund his much-vaunted compassion agenda—the size of government is growing. According to a new study by the Brookings Institution's Paul C. Light, the federal government employs, directly or through government contracts and grants, 12 million people, or a million more than it did under President Clinton. Surprisingly, these additional million people aren't working solely, or even largely, to fight the war on terrorism; they're divided roughly between employees working in defense- and non-defense-related areas, with slightly more in the latter category. The few conservatives who still want to shrink big government are up in arms about the fact that under Bush there's been an increase in "domestic discretionary spending" as a percentage of the nation's gross domestic product. Even Stockman managed to shrink that. To paraphrase Stockman (as quoted by Greider), the hogs are really feeding.

snip>

Greider's new book is an examination of the ways in which trends in the flow of capital have created opportunities to promote social justice. (Greider, who was a Washington Post editor when he wrote the Stockman piece, has moved leftward since then, or at least come out of the closet. He now writes for The Nation.) In some instances, Greider notes, these trends have promoted social justice themselves. Stockman, who now specializes in corporate buyouts, is apparently an example of the latter. You won't find any rhetoric on the Web site of Heartland Industrial Partners, the private equity firm Stockman founded, that sounds even vaguely socialist. But according to Greider, Heartland is one of "a handful of specialized investment firms committed to a 'worker-friendly' mode." Even its name, Greider posits, is borrowed from an investment fund started by Leo Gerard, now president of the United Steelworkers of America, called the Heartland Labor Capital Network. Gerard's fund invests labor pension funds in companies that agree to allow union organizing. So does Stockman's.

Here's how Greider tells it:

snip>

Heartland Industrial Partners' commitment to labor is sufficiently robust to have provoked a lawsuit from the anti-union National Right To Work Legal Defense Foundation objecting to what it calls "an illegal sweetheart arrangement that requires all companies acquired by the Heartland firm to help impose unionization on their employees." The lawsuit concerns Heartland's acquisition of Collins and Aikman Corp., which was nonunion when Heartland acquired it but is now being organized by the Steelworkers.

Stockman last month became CEO of Collins and Aikman. He promptly went into Reagan budget director mode, slashing payroll. But this time, there was a difference: The 750 jobs Stockman eliminated were management jobs. Chatterbox doesn't know whether these jobs represented weak claims, but they surely didn't represent weak clients. What Stockman couldn't do to the government, he appears to be achieving on Wall Street. This time, the left is applauding.

more...

[UpInArms]

103. I thought that all of his background

sounded really familiar - now I know why.

Thanks 54anickel!

[54anickel]

104. I'm thinkin he's not exactly a favorite among Wall St types these days.

[UpInArms]

84. SEC re-files insider trading charges vs. Nothern

http://www.marketwatch.com/news/story.asp?guid=%7B3E3B02B9%2D499A%2D4E6A%2DA7D7%2D4EDBE73DACB7%7D&siteid=mktw

WASHINGTON (MarketWatch) - The Securities and Exchange Commission re-filed insider trading charges against Steven Nothern in a Boston court Thursday, less than two years after dropping its original complaint.

The SEC's original 2003 charges against Nothern alleged that the Massachusetts resident traded U.S. Treasury 30-year bonds only minutes before the government's Oct. 31, 2001 announcement it would no longer issue those instruments.

The SEC attorney handling the case was not immediately available to comment about why the government re-filed charges.

The SEC said Nothern heard about Treasury's plan to cease issuance of the long bond from a Washington, DC-based consultant named Peter Davis. Before the news became public, Nothern and other managers of Massachusetts Financial Services Company bought $65 million in par value of 30-year bonds for funds that they managed, generating about $3.1 million in illegal profits.

...more...

[UpInArms]

86. 3:53 EST - teetering on the 10,200 highwire

Dow 10,201.16 -99.09 (-0.96%)
Nasdaq 1,962.71 -8.84 (-0.45%)
S&P 500 1,159.89 -11.22 (-0.96%)
10-Yr Bond 4.184 -0.18 (-0.43%)

NYSE Volume 1,855,013,000
Nasdaq Volume 1,657,627,000

will it stay at 10,200 or will it not?

[RawMaterials]

91. Closing Numbers and Blather

Dow 10189.48 -110.77 (-1.08%)
Nasdaq 1963.88 -7.67 (-0.39%)
S&P 500 1159.36 -11.75 (-1.00%)
10-Yr Bond 4.184% -0.18

NYSE Volume 1,967,500,000
Nasdaq Volume 1,739,503,000



Close: Stocks were weak across the board as investors struggled to decide which piece of data to use as the better indicator of broad consumer spending - strong monthly retail sales or a discouraging quarterly report from Wal-Mart... April retail sales rose a much stronger than expected 1.4% (consensus +0.7%) and retail sales, excluding autos, surged 1.1% (consensus +0.5%), as the March data were revised slightly higher...

However, even though April's sales data turned in the best showing in seven months, providing strong support to the argument that the weak March economic data reflected a temporary soft patch rather than the start of a trend, Wal-Mart's (WMT 47.65 -0.95) disappointment underpinned a sense of caution that helped close every economic sector in negative territory... Wal-Mart posted a record $70.9 bln in Q1 revenues, but the retail giant missed analysts' Q1 forecasts by a penny, issued downside Q2 earnings guidance and said that its FY05 outlook is "still possible, but far more difficult to achieve."...

Rival Target (TGT 48.82 +0.62), however, beat analysts' estimates by a penny and surged more than 1.0%; but with only one-fourth of the influence that Wal-Mart's top-ten weighting has on the S&P, Target's impact was barely noticed... Meanwhile, crude oil futures ($48.54/bbl -$1.91) got hammered, falling 3.8% amid slowing demand in US and China coupled with builds in crude oil supplies and natural gas inventories... But today's tumbling in oil, instead of providing the relief it has so often, merely invited aggressive selling interest in Energy (-4.2%)... Also weighing on Energy, as well as Materials (-2.9%) was a stronger dollar...

The greenback climbed to a six-month high against the euro (1.2704) and gained against the yen (106.78) following the strong retail sales report, surging 2.1% and 2.3%, respectively, since last Friday's strong employment report... The fact that Energy and Materials, which have paced profit growth on the S&P with year-over-year Q1 earnings growth of 42% and 64%, respectively, were the worst performing economic sectors only added to the bearish bias... Not even falling bond yields were enough to lift interest-rate sensitive areas like Financial, Utility and Homebuilding...

Treasurys, which were weak most of the day following the strong retail sales figures and ahead of an upcoming bond auction, turned the corner about two hours before the market closed... A flight-to-quality bid amid the sell-off in stocks and commodities, plus a strong $14 bln 10-year auction, closed the benchmark 10-year note up 8 ticks to yield 4.17%... Technology also traded lower, but losses were minimized as Semiconductor posted a modest gain ahead of Dell's (DELL 36.61 +0.07) Q1 earnings after the close...

Health Care, Industrials, Consumer Discretionary and Consumer Staples were also influential leaders to the downside, with Wal-Mart's disappointment preventing investors from getting more defensive about the latter (staples) in a down market... Also weighing on sentiment Thursday was the fact that Moody's downgraded Ford's (F 9.36 -0.28) debt to its lowest investment grade rating (to Baa3 from Baa1) - exactly one week after Standard & Poor's downgraded Ford and General Motors' (GM 30.69 -0.31) credit ratings to junk status...

Separately, initial claims rose 4K to 340K (consensus 325K), but since the weekly data have been extraordinarily volatile and provide a weak read on payroll growth, as hiring (not firing) provides the direction, the Labor Dept.'s report was overshadowed by the stronger than expected retail sales data... DJTA -2.7, DJUA -1.0, DOT -0.4, Nasdaq 100 -0.3, Russell 2000 -1.5, SOX +0.3, S&P Midcap 400 -1.4, XOI -3.7, NYSE Adv/Dec 936/2358, Nasdaq Adv/Dec 1138/1902



Blather on edit
Have a great night everyone :hi:

[ozymandius]

93. Play doctor and consider the markets your patient.

Your patient proclaims himself to be the picture of health. Yet he exhibits extreme symptoms of bipolar disorder, delusions of grandeur, avoidance and projection of one's problems and co-dependency. What is a doc to do?

[UpInArms]

94. great laughing blather!

:rofl:

who do you trust - the government's cooked books or the darling of the cheap Chinese products?

:rofl:

guess the investors have stopped drinking the kool-aid :eyes:

[54anickel]

100. Yikes! Just checking in for the close - wasn't expecting it to be down

THAT much, the news wasn't all that bad.

Of course the idiots haven't caught on to the fact that many folks are avoiding if not totally boycotting Wally World. They might want to check in with Main Street once in a while and adjust their stinkin' weightings. :eyes:

[UpInArms]

95. St Jude Medical to repatriate $500 mln, sees $35 mln tax charge

http://www.marketwatch.com/news/story.asp?guid=%7BA3CB377F%2DD579%2D4DC1%2D83F1%2D06BFA62B4AE2%7D

WASHINGTON (MarketWatch) -- St. Jude Medical Inc. (STJ) said Thursday that it will record a $35 million tax charge on the repatriation of $500 million in earnings.

The medical devices company said in a filing with the Securities and Exchange Commission that it will do the repatriation according to the American Jobs Creation Act of 2004, which allows companies a one-time repatriation of earnings of foreign subsidiaries at a favorable tax rate.

...more...

Don't hold your breath while you wait for those jobs to appear :eyes:

[fedsron2us]

97. Weird day

With oil prices falling sharply and retail figures stronger than expected you would have expected a more bullish market for shares. Instead, demand was very anaemic. This extreme caution from buyers makes me wonder whether there is any truth in the rumours that certain hedge funds have suffered some nasty losses in the past few weeks. The rise in treasuries suggests a flight to quality (although one hesitates to use that term about US government debt these days). It will be interesting to see how the market develops from here.

[antigop]

98. Heads up -- Republican Policy Comm. weighs in on cash balance plans

http://www.eric.org/forms/uploadFiles/36720000000F.filename.EER050205.html#Story7
Republican Policy Committee Weighs in on Cash Balance Plans; Boehner on Track to Introduce Hybrid Reform
>>
Meanwhile, ERIC has learned from congressional staff that House
Education and Workforce Chairman John Boehner (R-OH) is on track to introduce a pension funding and hybrid plan bill that will validate hybrid plan designs and include provision related to conversions.
>>


If you know anyone who is still covered by a defined benefit pension plan, please let them know.

This is NOT good.

[Robbien]

99. Thanks for the heads up

Yikes!