STOCK MARKET WATCH, Monday 20 June

[ozymandius]

Monday June 20, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 215 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 183 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 246 DAYS
DAYS SINCE ENRON COLLAPSE = 1303
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 June 17, 2005

Dow... 10,623.07 +44.42 (+0.42%)
Nasdaq... 2,090.11 +0.96 (+0.05%)
S&P 500... 1,216.96 +6.00 (+0.50%)
10-Yr Bond... 4.08% +0.00 (+0.05%)
Gold future... 440.00 +2.10 (+0.48%)

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 Tim W. Wood

THE DOW REPORT
Bear Market Phasing

Tim W. Wood on FinancialSense.comAccording to Dow theory, each bull and bear market period has three separate phases. This phasing is an important aspect of the Dow theory that is most often overlooked. I have spoken many times in the past about this phasing and today I want to address this topic again. I will show you the three phases of the 1966 to 1974 bear market, as well as the rallies that separate each of these phases.

In 1942 the second great bull market was born and concluded in 1966. I call this period a great bull market because in the early days of the averages, these Dow theory bull and bear market periods consisted of single 4-year cycles--the bull market being the upside piece of the cycle and the bear market the downside piece of the cycle. This changed in 1921 with the birth of the first great bull market that consisted of two consecutive 4-year cycles that ended in 1929. The second great bull market, again, ran between 1942 and 1966. The third great bull market ran between 1974 and 2000.

But, it is not the bull market that I want to focus on here. No, it is the bear markets that always follow, and I specifically want to compare the three phases of the 1966 to 1974 great bear market to today’s ongoing secular bear market.

-more-

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

[UpInArms]

2. daily dollar watch

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

Last trade 88.05 Change +0.32 (+0.36%)

The “Burn Baby Burn” Balance Sheet

http://www.dailyfx.com/index.php?option=com_content&task=view&id=1671&Itemid=39

"It is my view that the U.S. economy continues to be operating at a strong, healthy pace, that should continue into next year. I think we can look forward to continued growth in the U.S. economy that this year will be about 3.5%."
Thomas Hoenig, president of the Kansas City Federal Reserve Bank.Friday, June 17, 2005 09:25 GMT

The “Burn Baby Burn” Balance Sheet

Think about it. Almost 200 Billion dollars. That was the amount of US Current Account deficit in Q1 2005. More accurately the figure was actually -$195.1 Billion which was well in excess of the -$190 Billion market expectations. Now with oil prices at record level of $58.50/bbl and the greenback fully 9% higher against the euro since the beginning of the year, next quarter’s Current Account deficit is almost assured of passing the -$200 Billion mark.

The FX market which has been duly ignoring the persistent US deficit problems for the past two months, suddenly woke up to the fact that US Balance Sheet position was rapidly deteriorating and rallied the euro against the dollar for over 200 points in matter of hours on Friday.

Undoubtedly, Friday’s rally was driven mostly by short covering, as the euro hardly presented a bastion of strength to the world, yet with only a smattering of 2nd tier economic releases, most of which are expected to compare unfavorably with the month prior, it’s reasonable to assume that the retracement in the dollar may continue.

...more...

Dollar Remains Under Pressure From Majors

http://www.dailyfx.com/index.php?option=com_content&task=view&id=1672&Itemid=39

EUR/USD – Euro showed surprising resiliency to the advances by the dollar longs after the greenback repeatedly failed to push the single currency below the psychologically important 1.2000 figure. As euro longs continue to push deeper into the dollar head territory, current retrace by the euro bulls will most likely be capped at 1.2460, summer of 2004 trading range high. Indicators signal a trend reversal with ADX (DMI) on the daily chart at 39.04. Stochastic is remains below oversold line on the daily chart at 15.96. The Stochastic on the dealer (4HR) chart is dipping below the overbought line at 69.37. RSI is neutral on the daily chart at 37.51 with the 4-hour chart RSI also neutral at 60.48. MACD made a bullish crossover deep below the zero line on the daily chart and is crossing above the zero line on the dealer (4HR) chart. In case the reversal fails greenback longs will most likely resume their advance and push the pair below the psychologically important 1.2000 figure.

<snip>

USD/JPY – Japanese Yen traders continued to ignore the price action in other majors as the pair hardly moved after breaking below the 10.00 figure. As trading remains subdued yen bulls will most likely fail to push the pair below the 108.00 figure and most likely give up recent gains to the dollar, with the pair most likely retreating back above the 109.00 figure. Indicators signal trend reversal, with ADX (DMI) dropping to 24.95. Stochastic is at the overbought line on the daily chart at 78.5 with Stochastic on the 4-hour chart climbing above the oversold line at 28.62, thus providing yen bulls with a chance to mount a counterattack. RSI is treading below the overbought line at 59.76 on the daily chart, with dealer (4HR) chart and is neutral at 43.42. MACD remains above the zero line on the daily chart, while treading along the zero line on the 4-hour chart.

...more...

Have a Great Day Marketeers!

[UpInArms]

3. Today's Report:

http://biz.yahoo.com/c/e.html

Jun 20	10:00 AM	Leading Indicators	May	-	-0.5%	-0.3%	-0.2%	-

[UpInArms]

22. Leading Indicators DOWN -0.5% in May

U.S. May leading economic indicators down 0.5%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38523.4168247222-836970233&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- The U.S. index of leading economic indicators fell 0.5% in May, the Conference Board said Monday. Nine out of the ten leading indicators fell in May. The drop was larger expected. The consensus forecast of Wall Street economists had expected a 0.2 percent fall. This is the fifth straight month without an increase in the leading index. In April, the index was revised to show no change compared with the initial estimate of a 0.2% decline. The coincident index rose 0.2%, while the lagging index rose 0.3%.

More "surprised" economists :crazy:

10:00am 06/20/05 9 OUT OF 10 U.S. LEADING INDICATORS FALL IN MAY

10:00am 06/20/05 U.S. APRIL LEADING INDEX REVISED FLAT VS FALL 0.2% PREV

10:00am 06/20/05 U.S. MAY LEADING ECONOMIC INDICATORS DOWN 0.5%

[AnneD]

30. Morning Marketeers

:donut: What an exciting week I had last week. Visited Bro and found a great investment opportunity, got AND lost a part-time job (they pulled offer), and met Howard Dean. The fun part was meeting Dean. The man is crazy......like a fox. He hit all the nails on the head. He was doing fund raising in Texas and I think he may have done well. He kept hammering on the point that WE have to frame the debate. He also went over election stats(off the top of his head-God I miss smart leaders) and gave ways to deal with objections, etc. He went over many things that I have read on DU, so it was old news-but he confirmed much. Well, I have to apply for that perfect part-time job. Happy hunting, and watch out for the bears.

[UpInArms]

4. Fund 'casinos' skim profits from investors' nest eggs -

http://www.marketwatch.com/news/story.asp?guid=%7B7D4D9DFE%2D460A%2D4ACC%2D9E18%2DD5562A6AA4A1%7D&siteid=mktw

ARROYO GRANDE, Calif. (MarketWatch) -- Flashing neon lights. Cirque de Soliel and Celine. Tony and Wayne. David Copperfield's magic. The Mirage and Circus-Circus. Cha-ching, cha-Ching!!

Welcome to the world's biggest casino! Vegas? Nope! But that image captures my imagination every time Vanguard's founder Jack Bogle analyzes America's fund industry, as he did in a recent speech at the American Association of Individual Investors. When Bogle talks, you can feel the red-hot world of Vegas casinos!

<snip>

People go to Vegas for the entertainment, expecting to lose. The fund casinos offers little entertainment. They survive by creating the opposite illusion -- that you're winning even when you're losing.

"The mutual fund croupiers rake huge sums off the stock market table," says Bogle. He estimates that management fees average 0.9%. Other expenses are 0.6%. So the average expense ratio is 1.5%, five to seven times the take for index funds.

Next deduct "hidden portfolio transaction costs of at least 0.8%" from managed funds says Bogle. Then deduct the long-term costs of "sales commissions on load funds, another 0.7%." So the total cost in an actively managed fund can run as high as 3%, leaving investors with just 4% on a 7% return.

...more...

[AnneD]

35. LOL LOL LOL

Thanks UIA, I always get a sour look when I mention index funds to my Mutual Fund advisor. The reason why index funds are not a bigger part of your paycheck investor is because.....they don't make money on them so these sharks in suits don't mention them to the paycheck investor. Thanks for the laugh, good article. So, I guess when all is said and done bonds may give as good a return as stocks, and are safer too.....hmmmmm.

[UpInArms]

37. Hi AnneD!

I thought it was pretty interesting that these people (who are supposed to be looking out for the consumer/investor's best interests) is always putting the consumer/investor after their own pockets have been filled and refilled.

:hi:

[AnneD]

40. BINGO....DING DING DING DING

This is why you don't want them into your Social Security account. Why is Bush still pimping that lame POS? Oh, wait, don't tell me, this is for his WS Investment contributers. Hey, who knows what middle of the night reform they will do...they managed to screw us with the senior citizen drug bill and the bankruptcy 'reform' measure. Hold on to your wallets marketeers.

[UpInArms]

5. Oil prices soar above $59

http://edition.cnn.com/2005/BUSINESS/06/20/oil.prices.reut/

SINGAPORE (Reuters) -- Crude oil prices soared to a record high above $59 a barrel on Monday, extending last week's surge as a threat against Western consulates in OPEC-member Nigeria jolted traders already worried about tight supplies.

Oil climbed more than 9 percent, or nearly $5, last week, drawing buying interest from trend-following hedge funds as prices surpassed the previous early April high.

U.S. light crude for July delivery hit a front-month record $59.18 per barrel, before paring gains to stand up 59 cents at $59.06.

The August contract rose 62 cents to $59.80 a barrel and contracts for the last four months of the year, when oil demand picks up in the northern hemisphere, were all trading above $60.

...more...

[UpInArms]

12. Oil peaks toward $60 on strong demand (hedge funds buying)

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-06-20T113730Z_01_SP21975_RTRIDST_0_BUSINESS-MARKETS-OIL-DC.XML

LONDON (Reuters) - Oil prices soared above $59 a barrel to a record high on Monday, extending last week's surge as a threat against Western consulates in OPEC-member Nigeria jolted traders already worried about tight supplies.

Oil climbed more than 9 percent last week, or nearly $5, drawing buying interest from trend-following hedge funds as prices topped the previous early April high.

U.S. light crude for July delivery hit a front-month record $59.23 per barrel, before paring gains to stand up 58 cents at $59.05 at 1112 GMT.

Contracts for delivery in the last four months of the year, when oil demand seasonally picks up in the northern hemisphere, all traded above $60.

...more...

[ozymandius]

15. Rise in crude set to weigh (futures)

Dow futures were down 31 points at 10,615, Nasdaq 100 futures fell 5 points to 1,543 while S&P 500 futures were off 3.30 points to 1,217.

"This morning's pullback won't be breaking any technical support levels, but we should see a pullback to the breakout point at Dow 10,600 and S&P 1,210," according to Marc Pado, U.S. market strategist at Cantor Fitzgerald.

"If crude can reverse back down after hitting $60, that should support the market holding onto recent gains."

On Friday, stocks ended higher, wrapping up a week of solid gains as a number of positive economic reports tempered the impact of a surge in oil prices.

more...

[ozymandius]

17. Crude-oil climbs above $59 a barrel (more info)

rude oil for July delivery rose 58 cents to $59.05 a barrel in recent trade ahead of pit trading on the New York Mercantile Exchange.

Lee Elliot, a broker at Man Financial, said oil prices were "ridiculous" at current levels, with speculators behind the gains. He said he could see technical momentum pushing crude up to $60 a barrel in the short term, but feels this may not last.

"The front-end of the market is well oversupplied," he said, adding the price was "unrepresentative" of the amount of oil out there.

Elliot said the price went up after the meeting of the Organization of Petroleum Exporting Countries in March, when it became clear that they could not bring down the price of oil through higher quotas, though crude has fallen about $10 a barrel over the last few months.

more...

[UpInArms]

29. Crude oil set to test $60 a barrel

http://www.marketwatch.com/news/story.asp?guid=%7B29E98684%2DA1A7%2D438F%2DB62E%2D13F8C3C3E69A%7D&siteid=mktw

DALLAS (MarketWatch) -- Crude-oil futures on Monday surpassed the $59 mark and appeared headed to $60 following a gain of more than 9% last week.

Crude oil for July delivery rose 38 cents to $58.85 a barrel on the New York Mercantile Exchange. August crude, which becomes the lead-month contract at Tuesday's closing, rose 27 cents to $59.45 a barrel after touching $60. Hear Citigroup analyst Kyle Cooper on oil prices.

"Crude oil remains well bid, with the prevailing sentiment that it is only a question of when, and not if, crude would hit $60," said Tim Evans, senior energy analyst at IFR Markets, in a note to clients. "While there is this confident bullish assumption at play that prices can only trend higher, there is also abundant fundamental risk that these prices cannot be sustained."

Kevin Kerr, president of Kerr Trading International, said he sees crude prices at $60, possibly ahead of the weekly U.S. supply data, which he expects to be bullish and therefore supportive to prices.

"Once $60 is breached, all hell could break loose," he said. "This week, we expect extreme volatility. Bringing crude to, at, or above the $60 level has significant consequences. One major tropical storm, one refinery outage, one disruption in the Gulf, and all bets are off."

...more...

ruh-roh :(

[UpInArms]

36. Crude holds gains Monday afternoon

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38523.507836331-836974002&siteID=mktw&scid=0&doctype=806&

DALLAS (MarketWatch) -- Crude-oil futures continued to trade higher Monday afternoon on the New York Mercantile Exchange. July crude rose 28 cents to $58.75 a barrel, and August crude, which becomes the lead month contract at Tuesday's close, added 32 cents to $59.50 a barrel. "If buying continues without consideration of the underlying fundamentals, there will probably be no new buyers to sell to when these elements determine to take profits," said Mike Fitzpatrick, energy analyst at Fimat, in a note to clients. "This is the classic overbought situation."

"taking profits" usually means some else get the loss - I wonder if anyone is considering how all of their casino crap shoot is dealing a major blow to the economy that they spew so much about? :shrug:

[UpInArms]

50. Crude closes at $59.37 - UP 90 cents bbl

2:59pm 06/20/05 CRUDE CLOSES AT A RECORD $59.37, UP 90 CENTS

Crude sets another record at Monday's close

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38523.634304537-836978291&siteID=mktw&scid=0&doctype=806&

DALLAS (MarketWatch) -- July-dated crude futures closed at an all-time high of $59.37 a barrel, up 90 cents, Monday on the New York Mercantile Exchange. Many analysts said it is only a question of when oil prices will hit $60 a barrel and not if. Supply concerns, particularly as they relate to distillate fuels, are driving the market.

(edited to add blurb and link)

[UpInArms]

6. China Construction Bank admits former chairman under investigation

http://www.forbes.com/work/feeds/afx/2005/06/20/afx2100313.html

BEIJING (AFX) - China Construction Bank said its former chairman was under investigation for wrongdoing just days after the lender announced a major deal with Bank of America worth three bln usd.

'Zhang Enzhao, the former Communist Party secretary and chairman of China Construction Bank, is being investigated by party disciplinary authorities for violation of discipline,' the bank said in a statement on its website, according to Agence France-Presse.

The statement, the first by the bank to openly acknowledge Zhang had broken the rules, provided no further details.

'Personal reasons' were cited when Zhang resigned as chairman of the nation's third-largest lender in March, but media reports, including in China, soon described corruption as the real explanation.

According to reports, Zhang allegedly received one mln usd in 'commission' from an American company selling its software system to the bank.

...more...

[UpInArms]

7. Fed's Stern sees no reason to end tightening- paper

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8835746

TOKYO, June 20 (Reuters) - Federal Reserve Bank of Minneapolis President Gary Stern sees no reason for the Federal Reserve to stop raising interest rates now as the economy expands at a desirable pace, a Japanese newspaper reported on Monday.

The Fed's target for the federal funds rate, the rate at which banks lend overnight money to each other, remained low despite a year-long credit-tightening campaign that has brought it up to 3.0 percent from 1.0 percent, the Nihon Keizai Shimbun quoted Stern as saying in an interview.

"We do not see any factors at this point to stop monetary tightening," the Japanese-language newspaper quoted the regional Fed chief as saying. "It's appropriate to raise rates at a measured pace, although we can't say to what level."

...more...

[RawMaterials]

8. UPDATE 3-Gold climbs above $440.00, hits 3-month high

By Veronica Brown

LONDON, June 20 (Reuters) - Gold soared to a three-month high above $440 per ounce in Europe on Monday and was seen nearing a 2005 peak as investors upped their exposure to the precious metal.

Dealers said bullion was seeing an undercurrent of fund buying on the back of last week's significant gains to seven-week highs.

"The market's just got the bit between its teeth and I wouldn't be one to stand in its way...clearly there are a lot of gold bugs around," SGCIB economist Stephen Briggs said.

Spot gold <XAU=> was quoted at $440.20/440.90 by 1020 GMT from $438.00/438.70 late in New York on Friday, having hit an intraday high of $441.00 earlier -- its highest since March 17. Gold priced in euros <XAUEUR=R> stood at 360.00/360.67 euros -- near its all-time peak of $361.25.

Other metals benefited from fresh investor interest, with copper moving to an all-time high and platinum hitting its highest since April 2004.

"The (gold) market is picking up steadily -- it is well bid and the funds are still buying," a trader said.

Dealers said the move was all the more significant as the market rose in defiance of normally unfavourable currency fundamentals, with the euro tumbling against the dollar.

The euro was approaching a nine-month low against the dollar after European Union leaders failed at the weekend to agree on a long-term budget. It was last at $1.2213.

"Investor interest in gold has been stimulated by the political problems overhanging the euro and the economic problems overhanging the dollar," HSBC metals analyst Alan Williamson said in a daily report.

A softer euro would tend to see non-U.S. investors shy away from dollar-priced gold, but analysts said that did not necessarily mean that funds were switching significant volumes of cash out of currencies.

"This is a gold move -- the fact that euro-denominated gold has moved up so much just reflects the relative strength of gold and relative weakness of the euro," UBS Investment Bank analyst John Reade said.

"Funds have taken a view that the price of gold in euros is going to go up and sure enough they've been right," SGCIB's Briggs added.

"Metals are trivially small markets -- if enough people decide the market is going to go up then it will go up."

Analysts say the average daily global trading volume in the gold market, at less than $10bn, is equivalent to about 0.5 percent of average daily global foreign exchange trading volume.

NEXT STOP, $445

Dealers and analysts said if the market continued to build on current momentum, $445 would probably be the next upside target, with the market then expected to consolidate before tackling this year's peak of $446.70 -- last seen on March 11.

"Further buying is likely to target $440-445 but the metal is now looking a little top heavy and after posting some solid gains a little consolidation will be healthy," James Moore of TheBullionDesk.com said in a report.

In other metals, platinum was feeling the benefit of gold's run higher. Platinum was fixed, or set, on Monday morning at $900 per ounce -- a fresh 14-month high.

Spot platinum <XPT=> firmed to $898.00/902.00 from $892.00/897.00 on Friday in New York. Sister metal palladium <XPD=> was flat at $186.00/190.00.

Silver <XAG=>, which normally moves hand in hand with gold, was fairly tame on Monday -- firming to $7.36/7.39 from $7.32/7.35 on Friday.

Dealers and analysts said that could be attributed to some unwinding of a previous gold/silver ratio play, where investors had bought silver and sold gold.

(Additional reporting by Martin Hayes)




http://www.fxstreet.com/nou/noticies/afx/noticia.asp?font=Reuters&pv_noticia=MTFH50063_2005-06-20_10-42-40_L20410524

[RawMaterials]

10. Investment newsletters value gold

Four gold-timing letters have beaten a buy-and-hold in the gold market on a risk-adjusted basis over the past five years, according to the Hulbert Financial Digest. They are: Corcoran's Chronicle, Mutualfundstrategist.com, No-Load Portfolios and Professional Timing Service.

All of these letters are currently holding gold, although Professional Timing Service is not fully invested.

Corcoran is an increasingly eccentric, elliptical letter with a wild pattern of success and disaster (See my May 25 column). Most recently, editor Craig Corcoran just says his gold model positive. Then, as has been his pattern recently, he appends what he calls a "cogent comment." This time it's from Tim Woods of Resource Investor, who was interested in the euro breakout, and concluded:

"Put very simply, gold has stopped, for now, being a mere beneficiary of a weak dollar. It is no longer just another dollar of yield antidote -- the metal is lately the currency unit of choice."

snip..

The reason for this new behavior is the rejection of the ECU constitution by France and the Netherlands ...The euro is in crisis, and currency traders are not moving into dollars with the enthusiasm one would expect. What do they want? They want the good old days of marks, gilders, francs etc. Without three alternatives, they are buying gold ... My advice is to hang on. These are long-term investment positions, not trading positions. In the long run, you are going to be happy you have them.

What's next for gold? The next upside objective is $450, and then it will be off to $500."

Interestingly, Hesler admits that his trading models have "not kicked in yet." He says frankly that they are momentum models, and thus won't move until the trend is well established. These models control his portfolios, which are what the Hulbert Financial Digest monitors.

But that doesn't stop Hesler from speculating. He has recently raised the specter of crude oil reaching $76 a barrel.

And on equities (where his record, according to Hulbert Financial Digest data is less good -- possibly a relief) Hesler is gloomy: "The stock market is heading for big trouble this summer. I don't expect to see a crash, but you shouldn't look for anything spectacular on the up side from here ... by the end of August, I expect the market will be back into full bear mode."




http://www.marketwatch.com/news/yhoo/story.asp?source=blq/yhoo&siteid=yhoo&dist=yhoo&guid=%7B36DD78D6%2D3F5B%2D4E58%2DAD8C%2D9EFCE7033B48%7D

[UpInArms]

23. Gold surges to three-month high ($441.30)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38523.4264755093-836970680&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Gold futures rose to a three-month high Monday morning amid concerns that record high oil prices may create inflation and an uncertain currency outlook. Gold for August delivery added $1.30 to $441.30 an ounce on the New York Mercantile Exchange, after earlier peaking at $443.20 an ounce, the loftiest level since March 18. July silver reversed its downward trend of last week, gaining 8 cents to trade at $7.415 an ounce.

[UpInArms]

9. MasterCard hack spawns phishing attack

http://www.theregister.co.uk/2005/06/20/mastercard_phishing/

Fraudsters have been quick to launch phishing attacks in a bid to cash in on the publicity surrounding a security breach involving MasterCard International that may affect up to 40 million credit card holders. The crude and misspelled phishing attack, spotted by Secure Computing, is unlikely to fool many but illustrates how fraudsters are quick to latch onto current events in instigating security assaults.

MasterCard International is notifying member financial institutions of possible fraud risks following a security breach at CardSystems Solutions, a third party processor of payment card data. The breach of payment card data "potentially exposed more than 40 million cards of all brands to fraud", MasterCard warns. Approximately 13.9 million of these are MasterCard-branded cards. CardSystems discovered a "potential security incident" on 22 May and notified the FBI about the problem the next day but the breach only became public on Friday (17 June) just a day before it was exploited in phishing attacks. These attacks made no specific reference to the security breach so it looks as if fraudsters used "one they'd prepared earlier".

...more...

[UpInArms]

11. US spending to slow -- just don't tell the shoppers

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2005-06-17T173858Z_01_N174052_RTRIDST_0_PICKS-ECONOMY-CONSUMERS-DC.XML

WASHINGTON (Reuters) - Economists offer any number of reasons why the U.S. consumer will soon start cutting back on spending -- high energy prices, rising interest rates and a predicted easing in the housing boom among them.

But consumers themselves aren't so sure.

<snip>

All that borrowing has burdened households. Data released this week by the Federal Reserve showed household debt rose at a 9.3 percent annual rate in the first quarter to $10.5 trillion dollars -- about the equivalent of the entire nation's economic output in a year.

<snip>

Still, when it does come, a slowdown in consumer spending, which accounts for two-thirds of overall U.S. economic activity, will be widely felt. While some economists grumble about American fondness for material goods and ever-increasing debt, that consumer appetite is what has kept the U.S. economy steaming ahead while Europe and Japan struggle to keep pace.

"Consumer spending is the 500-pound gorilla in the GDP account, so if consumer spending slows ... we'll have to accept growth will be a little weaker, it won't be the 4 percent plus that we had last year," said Chan.

...more...

[UpInArms]

13. Some hedge funds dump loss-making debt strategies

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-06-20T125044Z_01_L16352430_RTRIDST_0_MARKETS-DERIVATIVES-HEDGE.XML

LONDON, June 20 (Reuters) - The chaos in credit derivatives markets after the rating downgrades of big U.S. automakers last month has prompted some hedge funds to suspend use of complex strategies that led to losses, fund managers said on Monday.

Correlation trading, or betting on pricing similarities in a diverse portfolio, was a favoured strategy of sophisticated investors last year. But when Ford (F.N: Quote, Profile, Research) and General Motors (GM.N: Quote, Profile, Research) were downgraded in early May, the trades went sour.

"A lot of people had on the same trades, so when it went wrong, it went wrong very quickly," said Jon Laredo, a manager with Solent Capital Partners. "A few people generated large losses."

Some investors lost as much as a half a billion euros, according to banking sources. Now, despite a reversal that has allowed them to recoup some losses, many hedge funds say they would rather not trade credit derivatives for now.

<snip>

[UpInArms]

14. 'Contributions' a wise investment

http://www.wilmingtonstar.com/apps/pbcs.dll/article?AID=/20050620/EDITORIAL/506200301/-1/FRONTPAGE

Now we know why Justice Department lawyers suddenly slashed the amount they'd been demanding from the cigarette companies for 50 years of lying about the dangers of smoking.

Instead of the $130 billion penalty for racketeering that they'd been asking for at the end of a nine-month trial, the lawyers said $10 billion would be enough.

An internal memo published by The New York Times shows that they were ordered to do it – by a political appointee, Associate Attorney General Robert D. McCallum. He's a former partner in a law firm that did work for R.J. Reynolds. Since college, he's been a close friend of President Bush.

Of course, Mr. McCallum's ordering of career lawyers to do a $120 billion favor for the tobacco companies had nothing to do with the fact that those companies gave the Republican Party $2.7 million in "campaign contributions" last year, almost three times as much as they gave the Democrats. (Wise givers always make "contributions" to both sides; you can never be entirely sure who will win.)

...more...

[UpInArms]

16. Expert Says He Was Told to Soften Tobacco Testimony

http://www.washingtonpost.com/wp-dyn/content/article/2005/06/19/AR2005061900691.html

A top Justice Department official threatened to remove a government expert from its witness list if he did not water down his recommended penalties for the tobacco industry, the witness said in an interview yesterday.

Harvard University business professor Max H. Bazerman said a career trial lawyer told him senior Justice officials wanted him to change his recommendation that the court appoint a monitor to review whether it was appropriate to remove senior tobacco company management. Bazerman said the lawyer was passing along the "strong request" the week before Bazerman was to take the witness stand on May 4 in the government's landmark racketeering case against the industry.

The government says the tobacco industry engaged in a 50-year conspiracy to defraud the public about the dangers and addictiveness of smoking.

Bazerman said the lawyer told him the change -- opposed by the career lawyers on the case -- had come from Justice Department senior litigation counsel Frank J. Marine and Associate Attorney General Robert D. McCallum Jr.

...more...

[cthrumatrix]

24. I am sure we will be on "Harball" tonight so Americans know the

truth of how govt/big business work.

[ozymandius]

18. pre-open blather

9:00AM: S&P futures vs fair value: -4.8. Nasdaq futures vs fair value: -7.0. Still shaping up to be a lower open for the cash market as futures indications trade below fair value... While high oil prices remain the headline concern, slowing corporate profit growth - in question heading into Q2 earnings warning season - coupled with a lack of notable earnings and economic data to provide a more definitive tone to trading, has also added to the market's overall nervousness

8:30AM: S&P futures vs fair value: -5.1. Nasdaq futures vs fair value: -8.0. Despite some Monday deal making, futures market has been unable to gain any upside traction, still indicating a lower open for the indices... It has been reported that the Dolan family, which controls Cablevision Systems (CVC), plans to take CVC private for about $7.9 bln... Also, reports suggest Ameritrade (AMTD) is close to completing its $3.0 bln merger with TD Waterhouse while Heinz (HNZ) has agreed to acquire HP Foods for roughly $860 mln

[UpInArms]

20. and from ino.com

The September NASDAQ 100 was lower overnight as it consolidates some of the short covering rebound off last Tuesday's low and is challenging support marked by the 10-day moving average crossing at 1543.06. Stochastics and the RSI have turned bullish signaling that sideways to higher prices are possible near-term. Closes above last Tuesday's reaction high crossing at 1557 would signal that the decline off May's high has come to an end. If September extends this month's decline, the 38% retracement level of the April-June rally crossing at 1519.09 is the next downside target. The September NASDAQ 100 was down 4.50 pts. at 1543.50 as of 5:49 AM ET. Overnight action sets the stage for a steady to lower opening by the NASDAQ composite index later this morning.

The September S&P 500 index was lower overnight as it consolidates some of last week's rally, which led to a breakout above the 75% retracement level of this year's decline crossing at 1212. Stochastics and the RSI are overbought, diverging and are turning neutral to bearish hinting that a short-term top might be in or is near. If September extends this spring's rally, the contract high crossing at 1235 is the next upside target. Closes below the 20-day moving average crossing at 1206.23, would confirm that a short-term top has been posted. The September S&P 500 Index was down 3.20 pts. at 1217.30 as of 5:51 AM ET. Overnight action sets the stage for a steady to lower opening when the day session begins later this morning.

[ozymandius]

19. In early bond trading -

10-Yr Bond 40.92 +0.14 (+0.34%)

So I wonder where the money is headed today?

[UpInArms]

21. 9:47 EST numbers and blather

Dow 10,578.95 -44.12 (-0.42%)
Nasdaq 2,081.14 -8.97 (-0.43%)
S&P 500 1,212.24 -4.72 (-0.39%)
10-Yr Bond 4.121 +0.43 (+1.05%)

NYSE Volume 126,139,000
Nasdaq Volume 146,071,000

9:40AM: Market opens lower as oil prices trading near record levels provide little incentive for investors to extend five straight days of gains for the major indices... While a string of economic reports last week prompted investors to look past rising oil prices and lifted the S&P back into positive territory for 2005, crude oil futures approaching $60/bbl have renewed worries that high energy prices may hinder economic growth and diminish discretionary spending...

The commodity has climbed amid concerns related to refining capacity constraints, possible terrorism in Nigeria and a possible strike in Norway... Separately, May leading indicators (consensus -0.3%) will be released at 10:00 ET...

9:15AM: S&P futures vs fair value: -4.8. Nasdaq futures vs fair value: -8.0.

[UpInArms]

25. 10:42 EST numbers and blather (bounce in progress)

Dow 10,588.55 -34.52 (-0.32%)
Nasdaq 2,083.07 -7.04 (-0.34%)
S&P 500 1,213.33 -3.63 (-0.30%)
10-Yr Bond 4.135 +0.57 (+1.40%)

NYSE Volume 421,233,000
Nasdaq Volume 407,777,000

10:30AM: Bearish bias persists in stocks as the indices extend their reach into negative territory amid session highs for both oil prices and bond yields... Even though the Treasury market has read little into the larger than expected 0.5% decline in May leading indicators - as a fifth consecutive monthly decrease was widely anticipated - further deterioration in bonds, with benchmark yields recently surpassing 4.14%, has further weighed on investor sentiment... NYSE Adv/Dec 908/1971, Nasdaq Adv/Dec 961/1674

10:00AM: Equities still on the defensive as the bulk of sector leadership remains negative... Materials has paced the way lower, losing ground as the dollar rebounds against major currencies, while rising bond yields have provided additional pressure to interest-rate sensitive areas like Financial and Utilities... Broad-based consolidation has also weighed on influential leaders like Technology, Health Care, Industrials and Consumer Discretionary... Energy, however, has been the only economic sector to attract buyers, getting a boost as oil prices extend last week's gains of 8.5%... DJTA -0.7, SOX -0.9, NYSE Adv/Dec 758/1725, Nasdaq Adv/Dec 922/1487

[ozymandius]

28. bouncy ball losing jomentum

11:02
Dow 10,583.33 -39.74 (-0.37%)
Nasdaq 2,081.26 -8.85 (-0.42%)
S&P 500 1,212.89 -4.07 (-0.33%)
10-Yr Bond 41.19 +0.41 (+1.01%)

NYSE Volume 503,701,000
Nasdaq Volume 472,749,000

[UpInArms]

26. Treasurys fall amid demand for German bonds

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38523.441436713-836971333&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- Treasury prices remained lower and yields higher as a weak U.S. economic report was overshadowed by the impact from corporate and foreign bond activity on U.S. government debt. The benchmark 10-year note was last 16/32 lower at 99 30/32. The drop in price lifted its yield ($TNX) to 4.13% from 4.07% at Friday's close. The bond market largely ignored a report that showed the index of leading indicators dropped a larger-than-expected 0.5% in May. Treasury losses accelerated instead as speculation for a European Central Bank interest-rate cut sent investors out of U.S. debt into German bunds, traders said. So far, the 10-year yield has had trouble piercing last week's yield high of 4.14%.

[UpInArms]

51. Treasurys close lower; benchmark yield at 4.105%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38523.6366515162-836978445&siteID=mktw&scid=0&doctype=806&

CHICAGO (MarketWatch) -- Benchmark Treasury notes closed U.S. trading lower, although moved within a tight band Monday absent new major economic developments and little to argue against a widely expected Federal Reserve interest-rate hike on June 30. The 10-year note was down 8/32 at 100 6/32, yielding 4.105%, up from 4.070% at Friday's close. The 30-year bond fell 13/32 to 115 5/32, yielding 4.384%.

[UpInArms]

27. Adelphia's founder John Rigas and son face sentencing

http://www.newsday.com/news/local/wire/newyork/ny-bc-ny--adelphiafraud0620jun20,0,1734095.story?coll=ny-region-apnewyork

NEW YORK -- Adelphia Communications Corp. founder John Rigas and his son faced sentencing Monday, almost a year after they were convicted of stealing millions of dollars from the cable company and deceiving investors by hiding its crushing debt.

Rigas and his son Timothy, the company's former chief financial officer, faced up to 30 years in prison each on their bank fraud convictions alone. They were also convicted of securities fraud and conspiracy.

Federal sentencing guidelines would make the sentence far less than 30 years, but the Supreme Court also ruled earlier this year that federal judges should consider the guidelines as advisory, not mandatory.

The sentencings were set for Monday afternoon at a federal courthouse in downtown Manhattan. They come just three days after another major white-collar conviction: A state court jury found former Tyco International Ltd. CEO L. Dennis Kozlowski and former Tyco CFO Mark Swartz guilty of looting that company of $600 million.

...more...

[UpInArms]

53. Adelphia founder Rigas sentenced to 15 yrs -- WSJ

http://www.marketwatch.com/news/newsfinder/pulseone.asp?guid={6E4B282A-5D7A-452B-9B53-421FD6F6CA77}&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Adelphia Communications Corp. (ADELQ) founder John Rigas has been sentenced to 15 years in prison for fraud, the Wall Street Journal reported on its Web site Monday.

[punpirate]

31. Pixies will appear at 10:45 am...

... if you step out of line, you may not re-enter until the 2:00 pm show... no elbowing, no shoving, no spitting.

:P

[UpInArms]

32. Alcoa acquires full-ownership of Shanghai venture

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38523.4856039931-836973138&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- Alcoa Inc. (AA) said Monday that it has acquired full ownership in a joint venture in Shanghai by purchasing a 40% stake in the company. Terms weren't disclosed. Alcoa Shanghai Aluminum Products Ltd. was a joint venture with Shanghai Light Industrial Equipment Co. and formed in 1995 to produce foil products primarily aimed at pharmaceutical and other packaging applications in China

[UpInArms]

33. 12:02 numbers and (old) blather

Dow 10,590.85 -32.22 (-0.30%)
Nasdaq 2,086.61 -3.50 (-0.17%)
S&P 500 1,214.00 -2.96 (-0.24%)
10-Yr Bond 4.100 +0.22 (+0.54%)

NYSE Volume 719,442,000
Nasdaq Volume 645,747,000

11:30AM: Market continues to chalk up losses as investors remain cautious about waning earnings growth... With less than two weeks remaining in the quarter, the possibility of further earnings warnings - as negative pre-announcements this quarter have roughly doubled the number of positive announcements - has also weighed on the proceedings... On April 1, aggregate Q2 profit forecasts for the S&P 500 were about 9.0%; but a number of earnings warnings have since driven growth estimates lower - from about 8.0% on May 1 to roughly 7.0% today... NYSE Adv/Dec 1044/1964, Nasdaq Adv/Dec 1051/1727

11:00AM: Major indices back off their worst levels, but shows little signs of wholeheartedly rallying... While a lackluster showing from the influential financial sector has acted as a key source of resistance limiting the broader market's upside, renewed buying interest in some issues has somewhat improved sentiment... Notable S&P 500 Financials Index (-0.3%) components inching into positive territory within the last 30 minutes include WFC, MWD, FRE, CFC, MMC, EOP, EQR and ASN...NYSE Adv/Dec 1049/1930, Nasdaq Adv/Dec 1067/1661

[UpInArms]

34. noon blather

12:00PM: Stocks remain under pressure midday as oil prices near record highs and concern over waning profit growth incite broad-based consolidation following gains of more than 1.0% for the major averages last week... While a slew of economic data last week helped participants shrug off an 8.5% increase in oil prices, lifting the S&P back into the green for the year, reinforced concerns that surging energy prices may impede economic growth has kept all ten economic sectors underwater...

Oil ($58.90/bbl +$0.43) has climbed amid worries of inadequate refining capacity, reports of Nigerian oil workers being held hostage and a possible strike in Norway... Meanwhile, Materials - one of last week's best performing sectors has been today's worst performer - as a strengthening dollar prompts investors to lock in profits in steel and chemicals stocks... Also weighing on overall sentiment, especially interest-rate sensitive areas like Financial and Utilities, have been rising bond yields... The benchmark 10-year note has extended its two-week slide after Minneapolis Fed President Stern told a Japanese newspaper there was nothing to keep the Fed from continuing to raise rates...

Reports that the ECB may cut interest rates has also weighed on Treasurys, making European bonds more attractive... Also succumbing to broad-based consolidation, have been influential leaders like Technology, Health Care, Industrials and Consumer Discretionary, amid speculation of further earnings warnings heading into the end of the quarter... Even Energy, despite high oil prices, has struggled to maintain gains, as last week's 5.0% advance in the sector has prompted some early profit-taking...

[UpInArms]

38. Gillette grants CEO Kilts options on 800,000 shares

http://www.marketwatch.com/news/story.asp?guid=%7B2DEF42C6%2DB3BD%2D4921%2D8A50%2D50BDDC7A6E5A%7D

WASHINGTON (MarketWatch) -- Gillette Co. (G) Chief Executive James Kilts, whose pay in connection with the company's planned acquisition is the subject of regulatory scrutiny, was awarded 800,000 options on company shares, according to a regulatory filing Monday.

Gillette previously disclosed that its board approved stock-option awards to Kilts and other top officers under the consumer-product company's 2004 long-term incentive plan.

Kilts' 800,000 stock options were awarded last Thursday at a strike price of $51.96, according to a Securities and Exchange Commission filing.

In 2004, Kilts was awarded 2 million total stock options, consisting of 1 million options awarded in each of January and June. In its annual proxy statement, Gillette valued the options grants at $24 million.

Boston-based Gillette, the maker of razors, Braun appliances and Duracell batteries, agreed in January to be acquired by consumer-product giant Procter & Gamble Co. (PG) in a deal valued at $53 billion in stock.

...more...

[cthrumatrix]

39. so he can make ends meet ...makes sense to me

[AnneD]

41. Sooooo

did the package include KY jelly for the other stockholders. Why are these compensation packages so obscene. It really draws away from the profit (ie MY dividend). This party has got to stop....I am currently reading Pigs at the Trougth by Huffington...I am not amused.

[UpInArms]

42. PieHole Alert

1:16pm 06/20/05 BUSH REPEATS HE WANTS CHINA TO MAKE CURRENCY FLEXIBLE

[UpInArms]

43. Bailey Coates to shut main Cromwell hedge fund

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38523.5683078935-836976165&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Bailey Coates Asset Management LP is shutting its flagship Bailey Coates Cromwell hedge fund after losses this year, a person at the London-based firm said on Monday. The Cromwell fund, which oversaw about $1.1 billion at its peak, will close down at the end of June and return money to investors in July, the person said on condition of anonymity. The equity hedge fund, run by Jonathan Bailey and Stephen Coates, lost almost 17% in April and had dropped more than 20% during the first four months of 2005, according data from the Irish Stock Exchange, where it's listed.

[UpInArms]

44. Wyeth to restructure sales force (up to 750 job cuts)

http://www.marketwatch.com/news/story.asp?guid=%7B3F34EDD9%2DBB69%2D4B34%2DB6CF%2DF6DBD2A52029%7D&siteid=mktw

BOSTON (MarketWatch) -- Wyeth is planning to restructure its domestic sales force targeted at general practitioners, a move that could result in the drugmaker laying off several hundred workers.

According to Wyeth (WYE: news, chart, profile) , the Madison, N.J.-based company will institute a "pilot" restructuring program geared at reducing the number of visits that Wyeth sales representatives pay to the same doctors.

The Wall Street Journal reported early Monday said that the restructuring could result in the loss of up to 750 workers, but a Wyeth spokesman said that the actual number will be "far less."

"What we're doing is reducing headcount among our permanent primary-care sales people and also integrating in our flex-time sales force," said Wyeth's Douglas Petkus. "We're trying to make each visit more valued."

...more...

[UpInArms]

48. Wyeth to cut 30% of its US sales force (sounds more like 1500)

http://www.newratings.com/analyst_news/article_880724.html

NEW YORK, June 20 (newratings.com) – US-based drug manufacturing company Wyeth (WYE.NYS) Monday announced plans to slash 30% of its US primary sales work force in a bid to reduce costs.

Wyeth spokesman, Doug Petkus, said that the company has a total sales force of 5,000 in the US and that it has undertaken a plan to convert some of this workforce into part-timers. Earlier in the day, the Wall Street Journal reported that the company plans to convert some of its full time sales representatives into part-timers as per its plan to reduce about 750 jobs. Petkus said that the reason for the cut is to reduce the possibility of multiple visits to a single doctor. Wyeth’s share price appreciated $0.22 to $44.34 in morning trade at the New York Stock Exchange on Monday.

...very short blurb...

[UpInArms]

45. Yuan Revaluation may come later and be smaller than hoped

http://www.marketwatch.com/news/story.asp?guid=%7BC3EADAFE%2D12F0%2D4E1E%2DA4D8%2DBBF2F702A868%7D&siteid=mktw

NEW YORK (MarketWatch) -- As U.S. politicians turn up the heat on China to revalue its currency, cooler-headed market experts are cautioning that the U.S. might not get quite what it's clamoring for.

A majority of Wall Street analysts and strategists say they aren't expecting any move from China on its currency regime before the end of this year, according to a survey by MarketWatch. Instead, most forecast that Beijing will allow the yuan to appreciate by a small amount in the first half of 2006, falling far short of the 10% move Washington is seeking.

"The timing and size of the revaluation has become a political decision and has passed the point of economics," said David Gilmore, a partner at Foreign Exchange Analytics.

No move by China on its dollar peg until next year would spell political trouble for Treasury Secretary John Snow, who has assured restive members of Congress that White House pressure on China for a flexible currency would pay off by autumn.

...more...

[UpInArms]

46. 2:05 EST numbers and blather

Dow 10,587.85 -35.22 (-0.33%)
Nasdaq 2,086.70 -3.41 (-0.16%)
S&P 500 1,213.89 -3.07 (-0.25%)
10-Yr Bond 4.105 +0.27 (+0.66%)

NYSE Volume 1,069,426,000
Nasdaq Volume 914,826,000

2:00PM: Market still mired in relatively tight trading ranges, as the blue chip indices continue to outpace their Nasdaq counterparts to the downside... On the Dow, Boeing (BA 63.76 -0.86) leads the list of laggards amid reports that Air Canada has canceled a $6 bln order for 32 jets while a Banc of America upgrade has left shares of General Motors (GM 35.68) unchanged... Of the five components catching a bid, 3M Co. (MMM 77.19 +0.27), amid news of long-term clinical benefits for Aldara Cream, has been the best performer...NYSE Adv/Dec 1193/2015, Nasdaq Adv/Dec 1258/1660

1:30PM: Stocks continue to trade sideways as selling remains widespread across most areas... One area bucking the bearish bias, however, has been Airline... Even though oil prices have surpassed $59/bbl, initially weighing on a group where roughly 1/3 of total costs are tied to fuel prices, renewed buying interest has lifted the oversold AMEX Airline Index (+1.5%), which still trades nearly 9.0% off its June highs versus gains of 1.1%, 1.8% and 0.7% for the Dow, S&P and Nasdaq in the month of June...

Notable movers to the upside include CAL (+2.8%), JBLU (+2.7%), DAL (+2.2%), NWAC (+2.0%) and AMR (+1.5%)...NYSE Adv/Dec 1180/2013, Nasdaq Adv/Dec 1188/1708

1:00PM: Little changed since the last update, as the major averages continue to vacillate in roughly the same ranges... Meanwhile, Consumer Discretionary has been in focus following reports that the Dolan family, which controls Cablevision Systems (CVC 32.82 +5.95), plans to take CVC private for about $7.9 bln - about a 25% premium to Friday's closing price of $26.87...

[UpInArms]

47. 2:35 EST numbers and blather (pixie dust putting in appearance)

Dow 10,594.23 -28.84 (-0.27%)
Nasdaq 2,087.42 -2.69 (-0.13%)
S&P 500 1,214.40 -2.56 (-0.21%)
10-Yr Bond 4.110 +0.32 (+0.78%)

NYSE Volume 1,166,910,000
Nasdaq Volume 994,457,000

2:30PM: Equities still under pressure across the board, but the indices show some resilience even as oil prices hit another new all-time high... Heading into the close of commodities trading, crude oil futures have recently touched a new record high of $59.50/bbl, inching closer to $60/bbl... Note that open interest and total volume is now greater in the August contract, which closed at $59.90/bbl (+$0.72), as the July contract ($59.25/bbl +$0.78) expires this afternoon...XOI -0.1, NYSE Adv/Dec 1211/2003, Nasdaq Adv/Dec 1251/1705

[UpInArms]

49. 3:05 EST numbers and blather (all better now)

Dow 10,623.84 +0.77 (+0.01%)
Nasdaq 2,094.63 +4.52 (+0.22%)
S&P 500 1,217.02 +0.06 (+0.00%)
10-Yr Bond 4.107 +0.29 (+0.71%)

NYSE Volume 1,285,376,000
Nasdaq Volume 1,105,785,000

3:00PM: Buyers show some resolve, inching the Nasdaq above the flat line for the first time today... While strength throughout technology helped the Composite post a solid 1.3% gain last week, high oil prices have prevented follow-through buying interest since the open... However, now that the commodities market has closed, it appears early reaction to record high oil may have been overdone... Among the most actively traded issues assisting the tech-heavy index's recovery effort include leaders like MSFT (+0.8%), ORCL (+1.3%), GOOG (+1.3%) and YHOO (+1.1%)... NYSE Adv/Dec 1273/1956, Nasdaq Adv/Dec 1334/1643

[ozymandius]

52. edging up a bit

3:31
Dow 10,631.28 +8.21 (+0.08%)
Nasdaq 2,093.98 +3.87 (+0.19%)
S&P 500 1,218.27 +1.31 (+0.11%)
10-Yr Bond 41.03 +0.25 (+0.61%)

NYSE Volume 1,421,884,000
Nasdaq Volume 1,216,444,000

[AnneD]

54. Full of sound and fury....

signifying nothing. Hope you had a good day at the casino.

[UpInArms]

55. closing numbers and blather

Dow 10,609.11 -13.96 (-0.13%)
Nasdaq 2,088.13 -1.98 (-0.09%)
S&P 500 1,216.10 -0.86 (-0.07%)
10-Yr Bond 4.103 +0.25 (+0.61%)

NYSE Volume 1,682,025,000
Nasdaq Volume 1,445,736,000

Close: Stocks opened lower and closed just under the flat line, as investors weighed record highs in oil and worries about slowing profit growth against last week's strong market performance... Renewed buying interest late in the day sparked a modest rebound that lifted the major indices into positive territory; however, the recovery effort was short-lived, as the Dow closed lower for the first time in eight sessions and sector leadership was mixed...

While several economic reports last week helped investors shrug off an 8.4% increase in oil prices, the absence of notable economic data and a 1.5% surge in crude oil futures reinforced fears that high energy prices may curb economic growth and force economists to revise GDP forecasts lower... After closing above $59/bbl for the first time ever, the July contract, which expired this afternoon, closed at $59.37/bbl (+$0.90) while the August contract closed up $0.70 at $59.88/bbl... Crude oil surged amid concerns of inadequate refining capacity, reports of Nigerian oil workers being held hostage and a possible strike in Norway...

Also stalling follow-through buying interest after gains of more than 1.0% for the major averages last week was the possibility of further earnings warnings heading into the end of the quarter, as negative pre-announcements this quarter have been about twice as prevalent as positive announcements... On April 1, aggregate Q2 profit forecasts for the S&P 500 were about 9.0%; but a number of earnings warnings have since driven growth estimates lower - from about 8.0% on May 1 to roughly 7.0% today...

:hi: