STOCK MARKET WATCH, Thursday 3 November

[ozymandius]

Thursday November 3, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 80 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1778 DAYS
WHERE'S OSAMA BIN-LADEN? 1477 DAYS
DAYS SINCE ENRON COLLAPSE = 1439
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
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON November 2, 2005

Dow... 10,472.73 +65.96 (+0.63%)
Nasdaq... 2,144.31 +30.26 (+1.43%)
S&P 500... 1,214.76 +12.00 (+1.00%)
10-Yr Bond... 4.61% +0.03 (+0.72%)
Gold future... 464.60 +4.00 (+0.86%)






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

Treasury Auctions…AGAIN…Next Week!

With very little economic news in the markets today, stocks drew a bid on lower energy prices and a further bounce from what was considered an oversold condition two weeks ago. The bulls are convinced we will see a November-December stock rally to close the year, but many fear the Federal Reserve’s hawkish stance with higher interest rates will dampen the buying climate for stocks. Treasury bond and note prices are slightly lower today pushing the yield on the ten-year note marginally higher to 4.61%. The mantra on Wall Street appears to be that the economy is strong and inflation is well contained as the Fed continues to march-on toward higher rates. Folks keep wondering why the Fed is so absolute about raising interest rate; in my mind the answer is simple…we have mountains of new debt to sell in the very near future, and the Fed has to do everything possible to make U.S. debt attractive. I firmly believe the markets are being conditioned to sell Treasury debt next week.

Stocks could bounce higher through the end of this week, but I don’t expect the broad stock indices to do much next week while the Treasury auctions $44 billion for the quarterly refunding. Today the Treasury announced they will sell $18 billion of three-year notes on Tuesday followed by $13 billion of five-year and ten-year notes on Wednesday and Thursday respectively. Overall in the fourth quarter the Treasury plans to sell $96 billion worth of new debt, so the $44 billion next week is not even half of the nut needed for the quarter.

-cut-

Fed Target: Remove “Froth” From Housing Market

One of the Federal Reserve’s goals in raising interest rates is to take some of the “froth” out of the housing market. They are clearly winning the battle to slow down real estate. Today the Mortgage Bankers Association announced its applications index fell 4.8% with the purchase index down by 6.2% and the re-fi index lower by 2.8%. The 30-year fixed mortgage rose from 6.06% to 6.21% and the average one-year ARM moved two basis points higher to 5.39%. With the Fed move to 4%, banks have raised the prime rate to 7%. Housing should continue to slow.

-cut-

Tomorrow we will get non-farm productivity, initial jobless claims, the ISM non-manufacturing index and factory orders. Watch to see if bond prices move slightly lower on good economic news to make the yields even more attractive for next week’s debt sales. I’m still waiting for the dollar to roll-over when the current account deficits come back into full focus. All we’re hearing about right now is higher interest rates and higher bond yields. When the debt re-financings continue to grow larger and larger with each passing quarter global investors will have to ask themselves who, and for how much longer will investors and governments continue to loan money to the U.S.A. while our government shows absolutely zero regard for fiscal discipline. The Fed is continuing to raise interest rates because that is what they MUST DO to keep the fiat ponzi scheme we call money (Federal Reserve Notes) alive and functioning.-cut-

more...

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

[UpInArms]

8. U.S. Treasuries fall as refunding worries grow

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T201952Z_01_N02540666_RTRIDST_0_MARKETS-BONDS-UPDATE-2.XML

NEW YORK, Nov 2 (Reuters) - U.S. Treasury debt prices fell on Wednesday as early mortgage-related selling that brought benchmark yields to seven-month highs gave way to anxiety surrounding next week's $44 billion quarterly refunding.

The market was also beginning to focus on Federal Reserve Chairman Alan Greenspan's final congressional testimony on Thursday and on Friday's U.S. non-farm payrolls report.

Some traders said that given the rate outlook and with prices trending lower, the market was starting to reflect primary dealers' worries about next week's three-legged refunding of three-, five- and 10-year Treasury notes.

"No one wants to be a buyer in front of the refunding next week and additional Fed tightening. That's created a buyer's strike, and the path of least resistance for Treasuries is lower," said Mary Ann Hurley, a bond trader with D.A. Davidson & Co. in Seattle.

...more...

[UpInArms]

24. Treasuries rise as labor costs unexpectedly fall

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-03T134434Z_01_NYG000085_RTRIDST_0_MARKETS-BONDS-COSTS-URGENT.XML

NEW YORK, Nov 3 (Reuters) - U.S. Treasury debt prices rose on Thursday morning as unit labor costs unexpectedly declined in the third quarter, giving the Federal Reserve breathing room to carry out its "measured" increases in short-term interest rates.

Unit labor costs, a closely watched measure of job market inflation, fell 0.5 percent in the third quarter, the government said. Economists had expected costs to rise 2.0 percent. The government also revised down a rise in second-quarter unit labor costs to 1.8 percent from a preiously reported 2.5 percent increase.

Benchmark 10-year Treasury notes rose 5/32 for a yield of 4.59 percent, compared with 4.61 percent on Wednesday.

...more...

[UpInArms]

28. Treasurys lose post-data gains, await Fed chief, jobs data

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38659.3908704398-848653797&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

CHICAGO (MarketWatch) -- Treasurys turned lower, losing their post-productivity data boost as caution prevailed ahead of testimony from Federal Reserve Chairman Alan Greenspan and what's expected to be an improved monthly U.S. jobs report on Friday. The 10-year note was last 1/32 lower at 97 6/32, leaving its yield little changed at 4.61%. The yield closed above 4.6% Wednesday for the first time in six months.

[UpInArms]

33. Washed-Up Has-Been Partisan Hack: U.S. economic fundamentals remain firm

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38659.4173045833-848660459&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Federal Reserve Chairman Alan Greenspan presented an upbeat outlook on the economy but said there was uncertainty about the future course of inflation. In testimony before the Joint Economic Committee on Thursday, Greenspan said the econmoy has retained "important forward momentum" despite the hurricanes that struck the Gulf Coast and Florida over the past three months. Greenspan said there was "more uncertainty" surrounding the outlook for inflation. Greenspan said globalization and the fall of communism has helped hold down inflation as workers from China and Russia joined the gloabl economy. While these forces may persist for some time, at some point they will "gradually end."

10:00am 11/03/05 GREENSPAN WARNS BUDGET DEFICIT COULD CAUSE SERIOUS DISRUPTIO

10:00am 11/03/05 GREENSPAN: GLOBAL FORCES HOLDING DOWN INFLATION FOR A TIME

10:00am 11/03/05 GREENSPAN: UNCERTAINTY SURROUNDS OUTLOOK FOR INFLATION

10:00am 11/03/05 GREENSPAN: REBUILDING WILL BOOST GDP FOR A WHILE

10:00am 11/03/05 GREENSPAN: HURRICANES ADD TO UPWARD PRESSURES ON PRICES

10:00am 11/03/05 GREENSPAN: HURRICANES TO EXTERT DRAG ON JOBS, OUTPUT

10:00am 11/03/05 GREENSPAN: U.S. ECONOMY HAS 'IMPORTANT FORWARD MOMENTUM'

10:00am 11/03/05 GREENSPAN: U.S. ECONOMIC FUNDAMENTALS REMAIN FIRM

[UpInArms]

45. Has-Been Partisan Hack: Current Account deficit at 6 pct of GDP can't last

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-03T164312Z_01_WAT004307_RTRIDST_0_ECONOMY-GREENSPAN-DEFICIT-URGENT.XML

WASHINGTON, Nov 3 (Reuters) - Federal Reserve Chairman Alan Greenspan said on Thursday the United States' ability to run a current account deficit of 6 percent of national output was a result of rapid globalization but it could not continue to do so indefinitely.

"The big puzzle for everybody is how is it possible for the United States to have a current account deficit of more than 6 percent of GDP. It's one of the major puzzles," Greenspan told the congressional Joint Economic Committee.

"The reason why I believe it exists is it is a market phenomenon which is reflecting globalization -- it can't go on indefinitely as I've indicated previously," he added.

"At some point globalization will slow down, but we're in a period where it's been undergoing an extraordinary expansion and has had effects we have yet to fully understand."

Greenspan said the increase in cross-border debt holdings, including huge foreign holdings of U.S. debt, goes some way to explaining the unexpectedly low long-term U.S. interest rates seen over the past year.

...more...

Oh.My.God - now the old fool is "puzzled" :crazy:

[AnneD]

47. Hummmmm.......

I guess when you reach 79, the defination of firm is relative :evilgrin:

[UpInArms]

56. Treasuries slip, anticipating more Fed rate hikes

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-03T185014Z_01_N03452361_RTRIDST_0_MARKETS-BONDS-UPDATE-3.XML

CHICAGO, Nov 3 (Reuters) - U.S. Treasury debt prices sagged on Thursday, hurt by comments by Federal Reserve Chairman Alan Greenspan seen in the market as hawkish and by strong data on the huge U.S. services sector.

Greenspan said in congressional testimony that the U.S. economy retains "important forward momentum" and said the inflation outlook was "uncertain," which some took as a coded warning that inflation is headed higher.

Benchmark yields, the highest in seven months, are testing resistance at the year's highs and traders are bracing for a wave of selling if yields, which move inversely to prices, rise to new highs for 2005.

The benchmark 10-year Treasury note fell 8/32 in price for a yield of 4.64 percent, equaling the closing high yield for the year and up from 4.60 percent late on Wednesday.

Weakness spilled over too from rate futures, where contracts from three-month Eurodollars to 30-year bonds sliced to new cycle lows.

...more...

[ozymandius]

2. Wall Street seen flat

LONDON (Reuters) - U.S. stocks futures pointed to a flat Wall Street opening on Thursday with some traders fearing hawkish testimony from
Federal Reserve Chairman Alan Greenspan later and Friday's non-farm payrolls numbers looming.

-cut-

Bullish earnings will boost sentiment, with decent early gains on European bourses also in focus. Japanese markets were closed for a holiday.

Greenspan testifies to the Joint Economic Committee in Congress at 1500 GMT after the Fed raised rates to 4 percent on Tuesday and kept to language suggesting further hikes to come.

"Alan Greenspan...will likely add flesh to the bones of the FOMC statement. We believe there can be little doubt that Greenspan's testimony will be hawkish, " ING economist Rob Carnell said.

more

[ozymandius]

3. Today's Reports

8:30 AM Average Workweek for Oct
Briefing Forecast 33.7
Market Expects 33.7
Prior 33.7

8:30 AM Hourly Earnings for Oct
Briefing Forecast 0.3%
Market Expects 0.2%
Prior 0.2%

8:30 AM Nonfarm Payrolls for Oct
Briefing Forecast 80K
Market Expects 100K
Prior -35K

8:30 AM Unemployment Rate for Oct
Briefing Forecast 5.2%
Market Expects 5.1%
Prior 5.1%

[54anickel]

16. Will it be a "Goldilocks" report day, or more surprised economists?

I saw on NBR lasat night that the P/E ratio is the lowest it's been since the 70's - at like 18. The guy was saying stocks are a bargain now!!! My question is can you even trust those earnings numbers?

[AnneD]

38. Morning Marketeers,

:donut: You bring up a VERY valid point. Wall St (ie Companies) and the government have not done much to satisfy the small investors of stock integrity. Now I know that I am essentially loaning these companies MY money to use as capital to expand and grow their companies. I see FAR to many companies pissing away that money on CEO perks and dubious acquisitions. They make their profit margin look good by cutting their workforce to give me an extra nickle. That is penny wise and pound foolish. Now the government, in the face of scandals (brought to knowledge by the NY state attorney general) have drug their feet on prosecuting the criminals and insist on putting foxes to watch the hen house (business friendly people in charge os SEC, etc). Well, for now they have enough of my money. My goal is a debt free lifestyle and all my resources are earmarked to that for the foreseeable future.

I had to share a good story with you. I was talking with my teenage daughter about what to get her for Christmas. She wants an IPod,MP3 player. What she wanted was well out of my range. We talked about jobs that she could do to earn extra (hard because she doesn't have a car). We were kicking around ideas when she remembered that she made good money making shirts for a local teen band. Now she goes to a local fine arts PHS (the 'Fame" school in Houston)and is a musician. She sold out all her shirts and has other groups wanting her to make them shirts too. I told her I would give seed money in the form of screens etc for her Christmas gift. We had one of the best discussion about business development. She developed a plan, we calculated expenses, designed ads, and web addy. She came up with a way to get additional seed money; bands put up half, which covers her costs, and they pay they remainder upon delivery (she is just out her labour- unless she can sell the shirts herself). She does the designs etc. One of our friends has a local arts website and will hired her (no money but a press pass and a chance to do interviews and free ad and link on her site) to do reviews of the local music scene. This was last weekend that I got her the equipment-she has 2 25 shirt orders as of yesterday! She found a niche. It is not big time, but it keeps her busy, she makes her own money, and she learns business at the age of 15. Best $115 dollars I ever spent.

Happy hunting and watch out for the bears....

Edited cause I hit post before spell check.

[UpInArms]

19. 8:30 reports tumbling in

8:30am 11/03/05 U.S. Q2 PRODUCTIVITY REVISED TO UP 2.1% FROM 1.8% PREV

8:30am 11/03/05 U.S. Q3 UNIT LABOR COSTS DOWN 0.5%, UP 2.7% YR-ON-YR

8:30am 11/03/05 U.S. Q3 PRODUCTIVITY RISES 4.1% VS. 2.6% EXPECTED

8:30am 11/03/05 U.S. CONTINUING JOBLESS CLAIMS DOWN 44,000 TO 2.82 MLN

8:30am 11/03/05 U.S. 4-WEEK AVG. JOBLESS CLAIMS DOWN 17,000 TO 350,500

8:30am 11/03/05 U.S. JOBLESS CLAIMS FALL TO LOWEST LEVELS SINCE KATRINA

8:30am 11/03/05 U.S. WEEKLY JOBLESS CLAIMS DOWN 8,000 TO 323,000

[UpInArms]

20. Jobless Claims at 323,000

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38659.3542681829-848644507&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) - First-time claims for state unemployment benefits fell 8,000 to 323,000 in the week ended Oct. 29, the Labor Department said. This is the lowest level of claims since the week ended August 27, just before Hurricane Katrina struck the Gulf Coast. The consensus forecast of Wall Street economists was for claims to inch higher to 329,000. A Labor Department official said only 18,000 of the claims this week were related to Hurricanes Katrina and Rita. A total of 520,000 claims have been filed since the deadly storms struck the Gulf Coast. The department said 1,400 claims were filed after Hurricane Wilma struck south Florida.

Note: Last week revised upward by 1,000

[UpInArms]

21. U.S. productivity accelerates to 4.1% - Labor costs down

http://www.marketwatch.com/news/story.asp?guid=%7B8F54181B%2D4CBC%2D4F69%2DBD13%2D0480CDC75912%7D&siteid=mktw

WASHINGTON (MarketWatch) - Productivity in the American workplace accelerated in the third quarter, rising at a 4.1% annual rate, the Labor Department estimated Thursday.

Unit labor costs - a key measure of inflationary pressures from compensation - fell 0.5% annualized, the biggest decline since the second quarter of last year. Read full survey.

Economists were expecting a 2.6% gain in productivity in the July-September quarter, according to a survey conducted by Marketwatch. See Economic Calendar.

Productivity is measured by units of output per hour worked. It's an essential factor in long-term economic health, but is extremely difficult to measure in the short-run.

In the third quarter, output increased 4.2% while hours worked rose only 0.1%, the government agency said.

Real hourly compensation (adjusted for inflation) fell 1.4%, the biggest decline since the fourth quarter of 2002.

In the manufacturing sector, productivity increased 4.5% while unit labor costs fell 1.6%.

...more...

[UpInArms]

35. 10:00 reports in:

10:00am 11/03/05 U.S. AUG. FACTORY ORDERS RISE REVISED 2.9%

10:00am 11/03/05 U.S. SEPT. FACTORY ORDERS FALL 1.7%, MORE THAN EXPECTED

[UpInArms]

36. U.S. Sept. factory orders fall 1.7% - more than expected

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38659.4167886806-848660060&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) - Orders for U.S.-made goods fell 1.7% in September, led by a drop in orders for capital goods, the Commerce Department said Thursday. Overall orders for capital goods including defense and non-defense products fell 7.8% in September. Orders for computers and transportation also fell, by 3.9% and 5.5% respectively. Economists surveyed by MarketWatch were expecting factory orders to fall 0.6%.

[ozymandius]

4. Oil Prices Stay Near $60 on Supply Data

VIENNA, Austria - Crude-oil prices held near $60 a barrel Thursday after the U.S. government released data that showed rising supplies of oil and gasoline, but hinted that gasoline demand could soon rise.

Relatively mild temperatures in the U.S. Northeast and recovering refinery capacities also helped contain prices, even though they rose slightly.

-cut-

In its weekly petroleum supply report, the U.S. Energy Information Administration said Wednesday that U.S. crude inventories rose by 2.7 million barrels last week to 319.1 million barrels, or 12 percent above year-ago levels. Gasoline inventories grew by 1 million barrels to 196.9 million barrels, or 3 percent below year-earlier levels.

The EIA data also showed that average daily gasoline demand over the past four weeks was 1.7 percent below year-ago levels. However, the gap is narrowing because consumption has been rising week to week since the start of October.

more

[UpInArms]

7. Energy fall leads to short-covering

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T215039Z_01_N02601087_RTRIDST_0_MARKETS-CREDIT.XML

NEW YORK, Nov 2 (Reuters) - The easing of energy prices has led some investors to cover short credit positions on paper and packaging and chemical companies, though some analysts say the sectors still look set to deteriorate.

In October, rising energy prices led some investors to speculate that higher raw material costs coupled with weaker consumer demand would adversely impact the chemical and paper sectors, said Frank Berritto, global head of credit sales and trading at Banc of America Securities in New York. This led to a widespread sell-off in many of the credits, he said.

But falling energy prices since then, coupled with strong economic data, have reversed some of the weakness and investors that went short in October have scrambled to cover their positions, Berritto said. Some of the weaker credits that fell anywhere between 8 and 12 percentage points have retraced around a third of those losses, he said.

...more...

[UpInArms]

29. Frontier Oil earns $1.91 vs. 43 cents

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7B8CFE9FE3-B02C-4EA8-ACBD-67AF69F9C744%7D&

NEW YORK (MarketWatch) -- Frontier Oil Corp. on Thursday reported its most-profitable quarter ever with earnings of $109.2 million, or $1.91 a share, compared to $23.8 million, or 43 cents a share in the same period a year ago. Revenue grew to $2.85 billion, compared with $2.06 billion a year ago. Frontier said "outstanding" diesel and gasoline crack spreads, wide crude oil differentials and improved refinery utilization fueled results despite outages from hurricanes. The average estimate of analysts polled by Thomson First Call was for earnings of $1.57 in the quarter. Shares in the Houston-based refiner rose $1.31 to $38.04 on Wednesday

[UpInArms]

34. Dec Crude @ $60.40 bbl - Dec NatGas @ $11.69 mln btus

10:03am 11/03/05 DEC CRUDE CLIMBS 65C TO $60.40/BRL IN EARLY NY TRADE

10:03am 11/03/05 DEC NATURAL GAS UP 9C AT $11.69/MLN BTU AHEAD OF SUPPLY DATA

[UpInArms]

52. Dec Crude closes $61.78 bbl - Dec NatGas @ $11.689 mln btus

2:57pm 11/03/05 DEC CRUDE CLOSES AT ONE-WEEK HIGH NEAR $62 A BARREL

2:57pm 11/03/05 DEC CRUDE CLIMBS $2.03, OR 3.4%, TO FINISH AT $61.78/BRL

2:52pm 11/03/05 DEC NATURAL GAS CLIMBS 0.7% TO END AT $11.689/MLN BTUS

2:51pm 11/03/05 DEC HEATING OIL UP 2.8% TO CLOSE AT $1.8336/GAL

[UpInArms]

55. Sunoco profit triples; company plans capacity expansion

http://www.philly.com/mld/philly/news/breaking_news/13064983.htm

{free registration or try www.bugmenot.com)

Buoyed by record profit, Sunoco Inc. said yesterday that it would invest $1.8 billion over the next three years in its oil refineries, with an emphasis on increasing capacity by 11 percent to one million barrels per day.

The announcement came as the Philadelphia company reported that third-quarter net income tripled to $329 million, from $104 million in the same period last year, as gasoline prices spiked after Hurricanes Katrina and Rita.

Oil refiners have come under intense political pressure to use their strong profit in recent years to boost refining capacity. That would help reduce volatility in the prices of gasoline, diesel and other fuels.

<snip>

The percentage increase in earnings was so much bigger than that in revenue because the temporary loss of 10 percent of the nation's refining capacity in September caused refining profit to skyrocket, even as crude-oil prices were relatively stable.

...more...

[UpInArms]

5. G'morning Ozy!

Great 'toon - gave me a definite shiver right down my spine :scared:

check your PM :hi:

[UpInArms]

6. daily dollar watch

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

Last trade 89.78 Change +0.06 (+0.07%)

Majors Try To Unseat The Dollar

http://www.dailyfx.com/index.php?option=com_content&task=view&id=4622&Itemid=39

Traders Corner:
As a trader one of the hardest lessons I learned is humility and how to be humble when trading the market. When the trader becomes successful he or she feels invulnerable that is when the market will remind you who you are. The best trade sometimes is the one not taken. The best thing to do sometimes is too walk away. Always be humble, no matter if you are running a $10,000 mini account and a multi-billion dollar hedge fund, the market will take your money equally, it does not discriminate. As a trader I always treat the market with respect, because if you respect and listen to the market it will give you the answers that you seek, always remember that in a market you are alone, its only you and the market no matter what happens the market is always right, it’s the trader who can be on the wrong side of it. Learn humility and be humble, respect and listen to the market and in turn you will be a successful trader, but never let success go into your head because the market will punish you for your arrogance and always be thankful for the lessons the market teaches you, no matter what the price is. Please feel free to email me at [e-mail] with your comments.

...more...

China cenbank adviser wants more yuan flexibility-FT

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T225309Z_01_L02354477_RTRIDST_0_ECONOMY-CHINA-YU-UPDATE-1.XML

LONDON, Nov 2 (Reuters) - China should allow greater flexibility in the yuan's exchange rate, an influential economist and adviser to China's central bank said in comments published on Wednesday.

"I think that we should allow a bigger band, greater fluctuation and more flexibility," Yu Yongding said in an interview with Britain's Financial Times newspaper.

He also said that exporters needed to learn to deal with currency volatility and long-term revaluation of the yuan against the dollar.

<snip>

China's economic growth means the yuan's revaluation is theoretically inevitable in the long term in the absence of high inflation, the FT paraphrased him as saying in the report on its Web site (http://www.ft.com).

...more...

[UpInArms]

9. Seven charged with conspiracy at Ahold unit

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T193335Z_01_WBT004185_RTRIDST_0_FOOD-AHOLD-CHARGES-URGENT.XML

WASHINGTON, Nov 2 (Reuters) - Seven people were charged by the U.S. Attorney in New York with criminal conspiracy to falsify the books and records of Ahold's (AHLN.AS: Quote, Profile, Research) (Koninklijke Ahold N.V.) U.S. Foodservice subsidiary, the U.S. Securities and Exchange Commission said on Wednesday.

The SEC also said that the seven, who were either employees or agents that supplied U.S. Foodservice, settled civil charges brought by the commission, each agreeing to a permanent injunctions and payment of a $25,000 penalty.

The seven neither admitted or denied the SEC charges as is customary in such civil settlements.

[UpInArms]

10. Warner Bros. aims to cut 5 percent of staff

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T192807Z_01_N02352095_RTRIDST_0_MEDIA-WARNER.XML

LOS ANGELES, Nov 2 (Reuters) - Warner Bros. aims to lay off about 5 percent of its staff from movie, television and other operations in an effort to cut costs as it faces slower growth in DVD sales despite a solid year at box offices.

Some 250 to 300 people were given pink slips on Tuesday, and as many as 150 more jobs will be excised from the studio over the next few days.

The studio employs around 4,500 workers in the Los Angeles area and 8,000 worldwide.

Warner Bros. said in a statement it was taking the action "to position the company for growth."

The cuts come as the film and TV studio's corporate parent, Time Warner Inc. (TWX.N: Quote, Profile, Research), on Wednesday posted an 80 percent jump in quarterly earnings that beat Wall Street expectations, and a 6 percent rise in revenues.

...more...

[UpInArms]

11. U.S. mortgage rates rise Wednesday - BestInfo

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T220140Z_01_N02608428_RTRIDST_0_FINANCIAL-MORTGAGES-BESTINFO.XML

NEW YORK, Nov 2 (Reuters) - The average rate on a 30-year U.S. mortgage with no upfront points rose 1/8 of a percentage point on Wednesday to 6-5/8 percent, according to BestInfo Inc.

If the mortgage market on Thursday continues in its current direction, rates may remain the same.

The 30-year mortgage rate with one upfront point rose 1/8 of a percentage point to 6-3/8 percent.

The 30-year mortgage rate with two upfront points rose 1/8 of a percentage point to 6-1/8 percent.

...more...

[UpInArms]

44. US 30-year mortgage rates up 8th straight week

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-03T175409Z_01_N03314207_RTRIDST_0_ECONOMY-MORTGAGES.XML

WASHINGTON, Nov 3 (Reuters) - Average U.S. interest rates on 30-year mortgages jumped to 6.31 percent in the week ending Nov. 3, a level not seen for over a year, mortgage finance company Freddie Mac said on Thursday.

The week of June 17, 2004 was the last time interest rates on 30-year mortgages were higher, when they averaged 6.32 percent. For the last two months the rates have been propelled upward, reaching 6.15 percent last week.

Average rates on 15-year mortgages also experienced a sharp increase, hitting 5.85 percent in the week ending Nov. 3, compared to 5.69 percent a week ago, and 5.08 percent a year ago.

On Tuesday, the Federal Reserve raised its federal funds rate, to 4.0 percent, an act that normally drives up mortgage costs.

...more...

[UpInArms]

57. US pending home sales index dips slightly in Sept

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-03T193200Z_01_N03311553_RTRIDST_0_ECONOMY-USA-HOMESALES-UPDATE-1.XML

WASHINGTON, Nov 3 (Reuters) - Pending sales of previously owned homes dipped slightly in September from record levels in August, but a surge of purchase contracts in the hurricane ravaged Gulf Coast helped stave off a bigger decline, data from the National Association of Realtors showed on Thursday.

The Pending Home Sales Index stood at 128.8, down 0.3 percent from the record 129.2 in August but up 3.3 percent from a year ago.

Hurricanes Katrina and Rita provided a lift to pending home sales during the month, helped by Gulf Coast-area companies buying homes in southern states to house their employees, the trade group said.

"To a certain extent, this is masking a market in the early stages of transition," said Walter Molony, a National Association of Realtors spokesman. "We're going from a boom market to one which has a more sustainable level of activity."

The slight decline in the September index coincides with other recent data that show mounting evidence of a cooler U.S. housing market.

...more...

[UpInArms]

12. Big Three need more discounts (and better vehicles) to sell cars -analysts

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-02T222221Z_01_N02207431_RTRIDST_0_AUTOS-INCENTIVES.XML

DETROIT, Nov 2 (Reuters) - The Big Three U.S. automakers will have to effect more discount programs and increase the quality of their vehicles to regain market share in the United States, which fell to an all-time low last month, several analysts said on Wednesday.

General Motors Corp. (GM.N: Quote, Profile, Research), Ford Motor Co. (F.N: Quote, Profile, Research) and DaimlerChrysler AG's (DCXGn.DE: Quote, Profile, Research) (DCX.N: Quote, Profile, Research) Chrysler Group saw their U.S. market slip in October, as sales fell in the wake of high gasoline prices, fears about the economy and consumer resistance to buying cars without the summer's big discounts.

"The outlook does not look very positive for domestic automakers," Jesse Toprak, senior analyst for Edmunds.com, said on Wednesday. "If the trend from the last three years repeats itself in the next decade, Japanese automakers will outsell domestic automakers by 2015."

<snip>

Sanfilippo said the U.S. automakers need to improve their product. "They need to lower the prices, and they need to have more fuel-efficient products. Then, they need to market those, so people focus more on the cars and less on the deals. But that will take a long time."

...more...

[UpInArms]

13. CFTC Objects to Any Refco Sale That Shields Officers

http://www.bloomberg.com/apps/news?pid=10000103&sid=afNB9fYH9tz0&refer=us

Nov. 2 (Bloomberg) -- The Commodity Futures Trading Commission objected to a Refco Inc. plan that would shield the bankrupt broker and its officers from liability for past conduct as a condition of the sale of its regulated assets.

The CFTC, which regulates U.S. futures markets, today said it would oppose any transaction that insulates Refco and its officers from liability and fails to protect customer funds, according to papers filed with U.S. Bankruptcy Court in New York.

``The commission objects to any term of sale that would require Refco LLC and its officers to be insulated from liability for any past wrongdoing,'' the agency said in the papers. ``While we do not intend to suggest anything negative about the conduct of the firm, no person or company is above the law.''

The CFTC's objection, should it be sustained by the judge in charge of Refco's bankruptcy, may affect existing and planned bids for Refco's assets, which were based on existing sale terms. An auction of Refco's regulated assets is scheduled for Nov. 9. Bidders have until Nov. 4 to advise Refco of their opening bids.

...more...

[UpInArms]

14. Mercury Interactive - 3 execs quit in option scandal

http://www.mercurynews.com/mld/mercurynews/business/personal_finance/13069226.htm

A financial scandal at Mercury Interactive deepened Wednesday when three of the software company's top executives resigned after an internal investigation revealed that the company had manipulated stock options to the advantage of executives and employees over the past decade.

The Mountain View company's stock tumbled 27 percent Wednesday, falling $9.34 a share to close at $25.66.

As a result of the options scandal, the company said it must file amended current and past financial statements and it faces delisting from the Nasdaq if it can't file restated reports by Nov. 30. The company was unable to release third-quarter results Wednesday, as scheduled.

Mercury, which makes software to test corporate software applications, said it named Tony Zingale, previously president and chief operating officer, as its new chief executive, replacing Amnon Landan.

Landan, chief financial officer Douglas Smith and general counsel Susan Skaer resigned after a special committee of board members determined that executives had manipulated the dates of option grants from 1995 to the present to boost their odds of profiting or to reduce their tax liability.

...more...

[UpInArms]

15. Novell to lay off 600 as part of bid to save $110m yearly

http://www.boston.com/business/technology/articles/2005/11/03/novell_to_lay_off_600_as_part_of_bid_to_save_110m_yearly/

Linux software company Novell Inc. of Waltham confirmed yesterday that it is laying off about 600 workers, or 10 percent of the company's worldwide workforce of 5,800. The layoffs, long rumored within the software industry, are part of a restructuring plan that aims to cut Novell's annual operating expenses by about $110 million.

The company has been under severe criticism from investors for its failure to cash in on the growing popularity of the Linux operating system. Novell also said it's considering a plan to sell or spin off its Celerant technology consulting business. The company will take a charge of $30 million to $35 million for its fourth quarter, which ended Monday.

Novell spokesman Bruce Lowry said that fewer than 30 workers at the company's Waltham offices would be affected. The biggest concentration of Novell workers, about one-third of the total, are based in Utah, where the company was founded. About 200 Utah workers would be hit by the layoffs, with other job losses to come from Novell facilities around the world.

<snip>

Once the world's leading maker of computer networking software, Novell stumbled badly in the 1990s, after rival Microsoft Corp. added networking features to its Windows software. In 2001, Novell chief executive Jack Messman launched a turnaround plan based on migrating Novell's products to run on top of Linux. In 2003, Novell acquired SUSE AG of Germany, the world's second-largest Linux distributor.

...more...

[RawMaterials]

25. The sad thing here

is that novell is a knowledge company and they are laying off assets, just because the finical officers look at people as an expenses instead of a commodity.

[UpInArms]

27. I think that all of these layoffs figure into the "higher productivity

and lower employment costs" - the fear factor for the remaining workers and the fact that off-shoring and outsourcing leads to lower costs have a one-two punch for the remaining employees.

[AnneD]

48. And the lady wins ...

a kewpie doll. The economists may be supised, but we aren't.

[54anickel]

17. Avian Flu Outbreak May Kill 1.9 Million Americans (be afraid)

http://www.bloomberg.com/apps/news?pid=10000103&sid=aMOPS2OXMkfw&refer=us

Nov. 2 (Bloomberg) -- A U.S. outbreak of avian flu may kill as many as 1.9 million Americans and hospitalize 9.9 million, according to estimates in a U.S. plan released today that's intended to protect Americans against a pandemic.

Medical personnel and workers in drug-manufacturing plants should receive vaccines first, under the plan fleshed out by Health and Human Services Secretary Michael Leavitt. President George W. Bush yesterday proposed spending $7.1 billion on vaccines and drugs, medical research and training for public- health officials worldwide. More than 90 percent of the money would go to Leavitt's department.

``We're in a race against nature,'' said Harvey Fineberg, president of the Institute of Medicine, a U.S. government advisory group. If a bird flu outbreak did occur, ``we would all be in jeopardy, and it is possible that millions of people would die,'' Fineberg said in an interview today.

Bush proposed spending as much as $1.5 billion for the government to buy and stockpile enough vaccine for 20 million people; $1 billion for stockpiling anti-viral drugs to reduce the flu's severity; $130 million to help drugmakers prepare for increased production capacity; $2.8 billion to develop news ways to manufacture vaccines; and $583 million to help state and local governments prepare response plans.

snip>

More than 140 million birds have died or been destroyed in Asia as a result of the avian flu, and 62 of 121 people infected by the virus have died, the World Health Organization said. Most human cases have occurred as a result of contact with the blood or feces of infected birds, the WHO said.

snip>

Researchers say they don't expect the virus to mutate into a form capable of transmission among humans in the next year or two, if it happens at all. Health officials said preparation for a pandemic may help boost U.S. efforts against the annual flu.

``If we do all this work, and there's no pandemic, you still have 36,000 people die every year of seasonal flu, and you could make a big dent in that,'' said Georges Benjamin, executive director of the American Public Health Association, in an interview yesterday. ``Wouldn't that be wonderful?''

I don't quite get his logic there, other than people may not ignore the early flu stages

more....

[RawMaterials]

26. I guess this is the game plan for 2006

People you must vote for republicans because the democrats cant protect you from the bird flu. :puke:

o and rumsfield is making a killing with his stock in the company that is going ot get a majority of the billions of new money that their going to print for this project.

[Mojorabbit]

41. There are over a thousand

people under observation in Thailand alone according to promed. Cross your fingers on this one. Husband who is a physician is slowly bringing home medical supplies just in case for this. He is beefing up his office supplies too. It might just decimate the poultry industry once it arrives in birds here or it might go pandemic. Nothing to panic over but definately something to prepare for then relax keeping an eye on developments.

[54anickel]

18. Bush Faces Rising Anti-U.S. Sentiment at Summit of Americas

http://www.bloomberg.com/apps/news?pid=10000087&sid=ajoRk4GwjPtA&refer=top_world_news

Nov. 3 (Bloomberg) -- President George W. Bush will confront rising anti-U.S. sentiment and doubts about his goals for expanding trade and democracy as he meets with Western Hemisphere leaders this week.

The 34-nation Summit of the Americas, opening tomorrow in Mar del Plata, Argentina, takes place at a time when U.S. policies are being challenged by President Hugo Chavez of Venezuela, which has South America's third-largest economy, and when U.S. relations with allies such as Argentina have cooled.

``It is fair to say that confidence in President Bush's `freedom agenda' in the Americas has eroded, as masses and leaders alike doubt his intentions,'' said Roger F. Noriega, who was assistant U.S. secretary of state for Western Hemisphere affairs until earlier this year.

snip>

Since the last Summit of the Americas in Mexico two years ago, there's been ``a kind of unraveling of consensus,'' Hakim said. ``The best they can hope for is a reaffirmation of some basic principles: the importance of democracy, importance of social justice, importance of trade openings.''

Mostly, the administration wants to emphasize that the U.S. focus on the Middle East, the war on terrorism and Bush's own domestic political difficulties haven't detracted from attention to Latin America, said Arturo Valenzuela, a professor at the Center for Latin American Studies at Georgetown University in Washington.

``There's a kind of rejection of U.S. foreign policy generally, and the U.S. must recompose its image. And that's going to be a tall order,'' he said.

more...

[punpirate]

23. Hah! Roger Noriega says...

... the "freedom agenda" has eroded. No mention from him of his role in that.

From ZNet: "One certain loser is Assistant Secretary of State Roger Noriega whose rightwing policies have alienated the leadership of Latin America, with the region's pro-U.S. faction being reduced to little more than the Central American Banana Republics of Costa Rica, El Salvador and Honduras. Within living memory, the U.S. has never been as isolated in the region as it is today throughout Latin America."

http://www.zmag.org/content/showarticle.cfm?SectionID=54&ItemID=7787

And Roger Noriega was just the guy to do that. :)

[UpInArms]

22. Printing Press Report: Fed adds temporary reserves via 14-day system RPs

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-03T132755Z_01_N03303229_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Nov 3 (Reuters) - The Federal Reserve said on Thursday it was adding temporary reserves to the U.S. banking system through 14-day system repurchase agreements.

The benchmark federal funds rate last traded at 4.00 percent, at the Fed's target for the overnight lending rate.

Further details of the operations are available at: http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[UpInArms]

46. Printing Press: U.S. Treasury Dept to sell $36 bln bills on Monday

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-03T161111Z_01_WBT004196_RTRIDST_0_ECONOMY-BILLS-URGENT.XML

WASHINGTON, Nov 3 (Reuters) - The U.S. Treasury Department said on Thursday it will sell $19 billion of three-month bills and $17 billion of six-month bills on Monday, Nov. 7.

The bills will be issued on Thursday, Nov. 10.

Proceeds from the sale will be used to refund about $31.026 billion of publicly held 13- and 26-week bills maturing Nov. 10 and to raise about $4.974 billion of new cash.

The three-month bills mature on Feb. 9, 2006, while the six-month bills mature on May 11, 2006.

Treasury said $5.40 billion of the three-month bills can be excluded when bidders calculate their net long positions. The net long reporting threshold for the three-month bills is $6.65 billion and for the six-month bills it is $5.95 billion.

...more...

[UpInArms]

30. pre-opening blather

9:16AM: S&P futures vs fair value: +4.3. Nasdaq futures vs fair value: +12.0. Expectations remain set for the cash market to open higher, as futures indications hold steady above fair value. However, while a strong gain in Q3 productivity and low unit labor costs (keeping inflation in check) continue to underpin a positive sentiment, Greenspan's comments beginning at 10:00 ET will be watched closely for any signals about the transition to Bernanke and what that might mean for how far the Fed will be hiking the fed funds rate.

9:02AM: S&P futures vs fair value: +4.6. Nasdaq futures vs fair value: +12.0. Still shaping up to be a higher open for the cash market, as futures indications continue to strengthen heading into the open following the jump in Q3 productivity. October same store sales, which have checked in surprisingly strong almost across the board, are perhaps also providing some early support for stocks. Notable names beating expectations include TGT, COST, GPS, JCP, ANN, AEOS, GYMB and JWN; disappointments include FD, LTD, BJ, BEBE and TJX, but overall it appears to be one of the more impressive months this year for retail comps.

8:35AM : S&P futures vs fair value: +2.5. Nasdaq futures vs fair value: +6.5. Futures trade gets a boost following upbeat economic data and now suggests a higher open for the indices. A preliminary Q3 productivity figure came in at a strong 4.1% (consensus +2.6%), the highest since Q204, while unit labor costs fell 0.5%, versus expectations of 1.8% and a prior read of 2.5%, suggesting inflation remains contained. Bonds, which were up ahead of the report have held relatively steady, as the 10-yr note is up 3 ticks to yield 4.59%. Initial claims fell 8K to 323K, slightly below forecasts of 330K; however, the claims data have had little impact on trading as investors remain more focused on tomorrow's influential jobs report.

8:00AM : S&P futures vs fair value: -0.1. Nasdaq futures vs fair value: +2.5. Futures market versus fair value suggesting a mixed open for the major indices as investors await a full docket of economic data and testimony from outgoing Fed Chairman Greenspan before the Joint Economic Committee at 10:00 ET to perhaps set a more definitive tone to trading. At 8:30 ET, investors will get a preliminary read on Q3 productivity (consensus +2.6%) and the latest initial claims data (consensus 330K). Meanwhile, investors are also sifting through another batch of earnings and Oct. same-store sales figures from more than 60 retailers.

[UpInArms]

31. 9:34 EST YeeHaw!

Dow 10,518.43 +45.70 (+0.44%)
Nasdaq 2,159.49 +15.18 (+0.71%)
S&P 500 1,220.26 +5.50 (+0.45%)
10-Yr Bond 4.608 -0.02 (-0.04%)

NYSE Volume 64,056,000
Nasdaq Volume 92,379,000

[54anickel]

32. YES!!! It may be another good day for the markets. Too bad I'll

miss most of the excitement today. Gotta run and make a few pennies for the day. :hi:

[AnneD]

50. Hope they are all shiny

:hi:

[UpInArms]

37. 10:09 EST numbers and blather

Dow 10,518.35 +45.62 (+0.44%)
Nasdaq 2,160.00 +15.69 (+0.73%)
S&P 500 1,221.43 +6.67 (+0.55%)
10-Yr Bond 4.608 -0.02 (-0.04%)

NYSE Volume 430,004,000
Nasdaq Volume 443,609,000

10:00AM: Broad-based buying efforts continue as nine of ten economic sectors trade in positive territory. Providing the bulk of influential leadership for the second straight day is Technology, led by continued momentum in Intel (INTC 23.79 +0.50) shares and a Citigroup upgrade on Qualcomm (QCOM 42.88 +2.50). Energy has also advanced more than 1.0%, benefiting from a rebound in oil prices, while Consumer Discretionary, amid surprisingly strong Oct. retail comps and strength in homebuilding, has extended yesterday's solid performance. Health Care has also provided leadership to the upside, as a 4.0% surge in Amgen (AMGN 77.01 +3.11), following positive Phase 3 trial results, offsets continued deterioration in Guidant (GDT 57.77 -2.63) shares. NYSE Adv/Dec 1844/705, Nasdaq Adv/Dec 1699/739

9:40AM: Strong follow-through seen in stocks as non-inflationary Q3 productivity data improves early sentiment. Earlier, the Labor Dept. provided a preliminary read on Q3 productivity, which was up at a strong 4.1% annual rate - the highest since Q204, above an expected 2.6% increase and up from 1.8% in Q2. Perhaps more notably was the fact that unit labor costs unexpectedly fell 0.5%, following a 1.8% gain in Q2, suggesting inflation remains well contained. Separately, Sept. Factory Orders (consensus -1.0%) and Oct. ISM Services (consensus 57.0) will be released at 10:00 ET as Greenspan begins his testimony on the economic outlook.

Gotta run - will try and check back in later :hi:

[RawMaterials]

39. Merck cleared in N.J. Vioxx trial

The verdict left Merck, which voluntarily pulled the drug off the market last year, with one win and one defeat in the first two Vioxx trials.

The case, which is the second Vioxx lawsuit to go to trial, took seven weeks to present, with complex testimony about the inner workings of the heart and detailed descriptions about the clinical studies Merck conducted before and after it began selling Vioxx in 1999.

Merck lost the first trial over Vioxx when a Texas jury awarded $253 million in damages to the widow of a Vioxx user. Texas law requires that award to be cut to no more than $26 million. Merck plans to appeal.




http://www.msnbc.msn.com/id/9910674/

[ozymandius]

40. 12:02 and yeehaw (*yawn*)

Dow 10,543.09 +70.36 (+0.67%)
Nasdaq 2,164.41 +20.10 (+0.94%)
S&P 500 1,222.08 +7.32 (+0.60%)
10-Yr Bond 46.30 +0.20 (+0.43%)
NYSE Volume 1,223,272,000
Nasdaq Volume 1,096,131,000

11:30AM: Holding steady at sharply higher levels as buyers rally around this morning's encouraging economic reports. Aside from the rise in Q3 productivity and accompanying decline in unit labor costs lending support, investors have also applauded an unexpected decline in weekly jobless claims, which has left underlying claims near 300,000. The data are reflective of an improving job market and bode well heading into tomorrow's more influential Oct. employment report. NYSE Adv/Dec 1912/1124, Nasdaq Adv/Dec 1813/983

11:00AM: Market gets a shot in the arm since the last update, following a favorable ruling in the second Vioxx case. Merck (MRK 30.43 +2.02), which was up about 1.0% ahead of the verdict, has surged an additional 6.0%, providing a boost to the influential Health Care sector. Shares of rival Pfizer (PFE 22.11 +0.51), the fifth most influential component in the S&P 500, has surged more than 2.0% in sympathy.NYSE Adv/Dec 1967/1008, Nasdaq Adv/Dec 1825/896

[ozymandius]

42. still yawning

1:01
Dow 10,543.25 +70.52 (+0.67%)
Nasdaq 2,166.24 +21.93 (+1.02%)
S&P 500 1,222.53 +7.77 (+0.64%)
10-Yr Bond 46.26 +0.16 (+0.35%)
NYSE Volume 1,508,222,000
Nasdaq Volume 1,343,150,000

12:30PM: As the afternoon session gets underway, the major indices have extended their reach into positive territory, despite oil prices ($60.50/bbl +1.3%) trading near session highs. In fact, the commodity's surge has been the Energy sector's gain, which has tacked 2.2% onto its already impressive 29.9% year-to-date advance. Even though it only accounts for about 10% of the total weighting on the S&P, the Energy sector continues to provide market leadership insofar as it is again expected to make the largest contribution to the overall EPS growth rate for the S&P 500. XOI +1.8, NYSE Adv/Dec 1891/1215, Nasdaq Adv/Dec 1875/1009

12:00PM: The market is trading near its highs of the day as investors embrace upbeat economic data (and no surprises in Greenspan's commentary), coupled with strong Oct. comps and a favorable Vioxx ruling. Before the bell, a report that showed Q3 productivity rose a stronger than an expected 4.1% - the highest since Q204 (consensus 2.6%), while simultaneously keeping inflation in check as unit labor costs unexpectedly fell 0.5%, improved underlying sentiment. Strong Oct. same-store sales have also lent support. Notable retailers like Target (TGT 57.10 +0.13), a rival to Wal-Mart (WMT 47.90 +0.34) which had already pre-announced a surprising 4.3% increase in Oct. comps, Costco (COST 49.00 +0.49) and Gymboree (GYMB 19.14 +1.01) - one of Briefing.com's suggested holdings for active investors - all contributed to the better than expected 4.4% increase in overall Oct. comps. With regard to sector leadership, Energy has paced the way higher, as a rebound in oil above $60/bbl has helped refiners gain ground.

[UpInArms]

43. Munich Re credit and debt ratings cut by A.M. Best

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38659.541865162-848691719&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Munich Re's (DE:843002) credit and debt ratings were cut by A.M. Best on Thursday because the rating agency is concerned about a decline in the capital of the world's largest reinsurer. Munich Re's issuer credit ratings dropped to aa- from aa and the debt rating of its Munich Re Finance subsidiary was lowered to a from a+, A.M. Best said. Munich Re's financial strength rating stays at A+, the agency added. Recent hurricanes and a reserve strengthening at American Re has reduced Munich Re's risk-adjusted capital, said A.M. Best, adding that it's also concerned that the company's high exposure to natural catastrophes will make its earnings more volatile. All ratings have a negative outlook, A.M. Best added.

[ozymandius]

49. Is this a resistance or an insurgency?

The numbers have barely moved in hours.

2:09
ow 10,545.09 +72.36 (+0.69%)
Nasdaq 2,164.56 +20.25 (+0.94%)
S&P 500 1,222.67 +7.91 (+0.65%)
10-Yr Bond 46.44 +0.34 (+0.74%)
NYSE Volume 1,820,017,000
Nasdaq Volume 1,600,226,000

1:30PM: Range-bound trading persists as stocks and bonds continue to trade in opposing directions. Equities continue to trade at higher levels across the board but the benchmark 10-yr note, which has been weak since Greenspan's prepared testimony confirmed that the Fed will continue to ratchet-up rates, is off 7 ticks to yield 4.63%. It may be worth noting that the highest closing level for the 10-yr in 2005 was 4.64%, which was reached on March 28 when the fed funds rate stood at 2.75%, 125 basis points ago. NYSE Adv/Dec 1917/1233, Nasdaq Adv/Dec 1845/1087

1:00PM: More of the same for the averages as buying remains prevalent across most industry groups. Bucking the bullish bias, however, has been Broadcast & Cable. While a better than expected Q3 earnings report from Time Warner (TWX 17.74 -0.16) provided a big boost yesterday, a Q3 disappointment from rival Comcast (CMCSA 27.27 -1.53) this morning has more than erased the group's Wednesday gain. Scientific-Atlanta (SFA 38.23 +1.83), a supplier of set-top boxes to both TWX and CMCSA and a suggested holding in Briefing.com's Active Portfolio, though, has soared 5.0% amid reports SFA has hired two investment banks to explore a sale that could value it at more than $4 bln.NYSE Adv/Dec 1964/1176, Nasdaq Adv/Dec 1861/1044

[ozymandius]

51. moving down

2:30
Dow 10,528.29 +55.56 (+0.53%)
Nasdaq 2,160.85 +16.54 (+0.77%)
S&P 500 1,220.61 +5.85 (+0.48%)
10-Yr Bond 46.38 +0.28 (+0.61%)
NYSE Volume 1,931,295,000
Nasdaq Volume 1,698,655,000

2:00PM: The major averages have slipped out of their afternoon range as oil prices surpass $61/bbl for the first time today after OPEC said October oil output fell 360k bbls/day, the first drop in output since January. Even though the commodity is down about 13% since hitting $70/bbl right after Hurricane Katrina made landfall, a 2.7% spike in oil has taken some steam out today's rally, but not enough to offset the comfort investors continue to find within the Energy sector's leadership.NYSE Adv/Dec 1894/1294, Nasdaq Adv/Dec 1815/1139

[UpInArms]

53. 3:12 EST Is the party over already?

Dow 10,498.90 +26.17 (+0.25%)
Nasdaq 2,156.16 +11.85 (+0.55%)
S&P 500 1,217.47 +2.71 (+0.22%)
10-Yr Bond 4.642 +0.32 (+0.69%)

NYSE Volume 2,185,423,000
Nasdaq Volume 1,905,648,000

2:30PM: Market continues to trade at improved levels, benefiting in large part from spirited leadership from a number of blue chips. Still celebrating its Vioxx victory is Merck (MRK 29.26 +0.85), whose shares pace the day's gains on the Dow. Other components advancing more than 2.0% include AA, IBM, INTC, MCD, XOM while telcos VZ and SBC have done the complete opposite. Both have lost nearly 2.0% amid concerns about the extent of the FCC's authority over the TV licensing process, leaving Telecom Services as the day's worst performing sector by far.NYSE Adv/Dec 1873/1348, Nasdaq Adv/Dec 1802/1168

[UpInArms]

60. 3:30 EST fairies clocking in on the dot

Dow 10,510.68 +37.95 (+0.36%)
Nasdaq 2,157.52 +13.21 (+0.62%)
S&P 500 1,218.70 +3.94 (+0.32%)
10-Yr Bond 4.644 +0.34 (+0.74%)

NYSE Volume 2,321,645,000
Nasdaq Volume 2,015,777,000

[UpInArms]

54. Comcast loses basic cable customers

Oh My! What a surprise! :sarcasm:

Crappy high priced commercial laden rerun bad programs.

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-11-03T163539Z_01_MAR344313_RTRUKOC_0_US-MEDIA-COMCAST-EARNS.xml

NEW YORK (Reuters) - Comcast Corp., the top U.S. cable operator, on Thursday posted lackluster quarterly profit and its stock fell 5 percent on worries about customers dropping its basic cable service.

The company reported profit for the third quarter of $222 million, or 10 cents per share, little changed from the $220 million, or 10 cents per share, it reported a year earlier.

Chief rival Time Warner Inc., by contrast, showed a bigger-than-expected 80 percent jump in earnings in its quarterly report on Wednesday.

"The results are nothing to write home about," said Craig Moffett, senior analyst with Sanford C. Bernstein, who said that the rate at which customers are dropping basic cable service was a "disappointment."

The cable industry has long argued that basic cable subscription is a misleading yardstick for cable company growth as these customers are also the lowest paying subscribers. Cable companies have spent the bulk of their marketing dollars courting customers who subscribe to pricier digital cable that let viewers order up movies with a click of their remote.

...more...

[Nickster]

58. This isn't taking into consideration all of the users that are forced to

have a basic cable line just to avoid the Comcast surcharge for not having cable tv with highspeed internet.

For example, I was paying 15 dollars a month extra for my high speed internet connection because I didn't have cable tv with them. So, I had them "install" a basic line which costs 8 dollars a month. I don't even have a comcast tv line in my house, but they count me as a subscriber anyways.

[AnneD]

59. This may also be one of those economic indicators......

the first thing I dropped when I knew I would soon be unemployed was cable. Once dropped, I realized I didn't miss it, but that is another story. When consumers get serious about tightening their belts, they cut what they perceive as luxuries. Money saved from a cable bill might be used for heating or food.

[UpInArms]

61. I cancelled my cell phone a year ago and the only thing that

I lost was a $45 monthly bill - I now have a pre-paid cell that is only used for emergencies (that was all that the cell phone was for anyway - so nothing was lost excerpt the $540 annual cost)

[ozymandius]

62. rounding the corner

3:36
Dow 10,503.62 +30.89 (+0.29%)
Nasdaq 2,155.88 +11.57 (+0.54%)
S&P 500 1,217.81 +3.05 (+0.25%)
10-Yr Bond 46.44 +0.34 (+0.74%)
NYSE Volume 2,368,550,000
Nasdaq Volume 2,053,559,000

[ozymandius]

63. closing numbers

Dow 10,522.59 +49.86 (+0.48%)
Nasdaq 2,160.22 +15.91 (+0.74%)
S&P 500 1,219.94 +5.18 (+0.43%)
10-Yr Bond 46.44 +0.34 (+0.74%)
NYSE Volume 2,690,965,000
Nasdaq Volume 2,346,256,000

blather to come...

[ozymandius]

64. blather

The market rallied for the fourth time in five days, as non-inflationary Q3 productivity data and strong October retail sales enticed broad-based buying efforts. Before the bell, a report showed Q3 productivity rose a stronger than an expected 4.1% - the highest since Q204 (consensus 2.6%), while unit labor costs unexpectedly fell 0.5%, keeping inflation in check and kick starting early buying interest. Meanwhile, investors sifted through monthly same-store sales figures from more than 60 retailers, coming to the realization that the arrival of cold weather, which helped Oct. comps rise a better-than-expected 4.4% (above the year-to-date average of 3.9%), also improved the outlook for holiday shopping. Speaking of, investors again found bargains across the board, as six of ten economic sectors closed higher. Leading the charge was Energy, as crude oil prices closed up 3.3% at $61.71/bbl after OPEC reported the first drop (-360K bbls/day) in output since January. In fact, Energy's leadership was largely responsible for the market's resilience to the commodity's surge, which took some steam out of the market late in the day. Technology also advanceed more than 1.0%, extending yesterday's leadership amid a 10% surge in Qualcomm (QCOM 44.02 +3.64), which was upgraded at Citigroup after it issued an upbeat Q1 outlook, as well as a rebound in hardware (+2.1%) and continued momentum in chip stocks. Reports that Merck (MRK 29.48 +1.07) won a total victory in the New Jersey Vioxx case eased drug liability concerns, helping the Health Care sector and the Dow Jones Industrials both turn in winning performances. A new historic high on the Dow Jones Transportation Average helped the Industrials sector minimize its 4.5% year-to-date loss while strength in drug retail, the day's best performing S&P industry group following solid FY06 guidance from CVS (CVS 26.44 +1.95), helped Consumer Staples. Telecom Services, however, merely extended its S&P sector leading year-to-date loss of 8.6% as shares of Verizon (VZ 30.88 -0.59) and SBC Communications (SBC 23.50 -0.41) plunged amid concerns about the extent of the FCC's authority over the TV licensing process. Financial was also a weak spot during an otherwise solid session, as banks continued to feel the brunt of a narrowing yield curve looming overhead. Making his last testimony in front of the Joint Economic Committee, Fed Chairman Alan Greenspan said that while the economy is retaining "important forward momentum" as economic fundamentals remain "firm," "uncertainty surrounds the outlook for inflation," words that confirmed the Fed will continue to ratchet-up rates. As a result, the 10-year note closed down 9 ticks to yield 4.64%, matching the year's highest closing level reached on March 28.DJTA +1.2, DJUA +0.3, DOT +0.1, Nasdaq 100 +1.4, Russell 2000 +0.3, SOX +1.9, S&P Midcap 400 +0.3, XOI +1.7, NYSE Adv/Dec 1656/1594, Nasdaq Adv/Dec 1669/1360