STOCK MARKET WATCH, Tuesday 8 November

[ozymandius]

Tuesday November 8, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 75 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1783 DAYS
WHERE'S OSAMA BIN-LADEN? 1482 DAYS
DAYS SINCE ENRON COLLAPSE = 1444
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 7, 2005

Dow... 10,586.23 +55.47 (+0.53%)
Nasdaq... 2,178.24 +8.81 (+0.41%)
S&P 500... 1,222.81 +2.67 (+0.22%)
10-Yr Bond... 4.64% -0.02 ( -0.39%)
Gold future... 460.40 +2.50 (+0.54%)






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 Rob Kirby

What's Up Doc?

We all know the Fed is in a rate tightening mode – right? In fact, this past week the Fed raised their benchmark rate by twenty five basis points <.25> for the twelfth successive time to 4.00%. For those of you who might not have been keeping score – that would be an aggregate of 300 basis points of “tightening” over the past couple of years – from the ‘easy money days’ when overnight money could be had for a paltry rate of 1.00%.

-cut-

So, knowing all this - that the Fed is ‘on the job’ – so to speak – I guess we can all sleep well knowing that any inflation fires that might stir up will be quickly and efficiently doused by the custodians of sound money at the Federal Reserve – we can all see they are raising interest rates - right?

Whoa Nelly…Not So Quick

Looking under a few rocks, it’s amazing what one can see – or might find! This picture would seem to paint a different picture:


-cut-

Not only have ‘long term rates’ actually declined, it is also clear to see (through the green bars protruding from the bottom) that Securities Lending is and has been increasing at ever healthy (stealthy perhaps?) rates. So what is this Securities Lending all about anyway?

more...

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

[UpInArms]

7. great WrapUp, Ozy

it definitely explains what we've been seeing with the Fed "injecting liquidity" of late:

Now Securities Lending implies that someone ‘borrows’ and another entity ‘lends.’ If we take a look see at the latest of Fed Reserve Open Market Operations – they’ve been doing a fair amount of borrowing lately:



It is clear to see that the Fed has been injecting another round of virtually unprecedented “liquidity” into the financial market place. Repos or short term ‘borrowing’ of securities by the Fed temporarily injects cash into the coffers of financial houses who ‘lend’ the securities. This cash injected into the financial system then “looks” for a home – be it the stock market or bond market. This is perhaps better illustrated through this chart which provides a little more context to the latest Fed add which categorically serves as a flashing neon light signaling system stress in the financial system – the root cause of the malady being somewhat moot:

[AnneD]

25. Morning Marketeers,

:donut: Ok, I am going to show my 'knowledge deficit' as we say in nursing. Can you give me the Economy for idiots translation. I have read the article but am still scratching my head. I know this is important that I understand-so this is why I ask. Thanks for the patience in answering.
Oh and here is a scary thought. I signed up to teach a class for our after school program....The secret life of money. I will teach money fundamentals to grades 3-5. Should be interesting.
Happy Hunting and watch out for the bears.

[UpInArms]

27. Hi AnneD!

It has to do with the Printing Press Report that I have been posting - just recently I noticed that instead of Repos being reported about once a week, there were daily occurrences - if you look at the chart on the bottom, the S&P started moving upward in conjunction with those daily Repos :eyes:

It appears (at least to me - and what do I really know?) that those funds are being "injected" into the marketplace.

It's a very subtle(?) form of market manipulation and also carries another threat of inflationary measures.

[AnneD]

30. Let me dummy this down.....

they are printing or releasing extra money to the banks, diluting the money so to speak, thus making more available for investments, loans, etc. Is that it? Sorry to be thick.
If they add to the money supply I know what effect that has-like the Weimar Gov after WWI. Right? Inflation up value of the dollar down (bet China loves that!). The market really does like inflation because it post such gains and people flock to the market as a hedge. I remember the inflation during Ford and Carter. Is it time to pull my WIN button.

[UpInArms]

33. Sounds like you are right on the wooden nickel, AnneD!

:thumbsup:

[AnneD]

36. Thanks UIA

DOE:banghead: I suspected that was the gist, but sometimes I get lost in the jargon and my eyes glaze over (a common malady for non economic wonks). So, it is a fed shell game. They tighten up the credit to look good to everyone, but ink up the presses at night. Oh brother, that will only go so far...That can explain the market screwiness.....OK everyone...let's Whip Inflation Now.:tinfoilhat: :hurts:

[ozymandius]

2. Stocks rise as oil drops

NEW YORK (Reuters) - U.S. stocks rose on Monday after oil prices settled below $60 a barrel, easing concerns about higher oil costs and prompting investors to shift money out of energy shares and into the undervalued technology and financial sectors.

Technology bellwether Intel Corp. (Nasdaq:INTC - news) and Citigroup Inc. (NYSE:C - news), the world's largest financial services company, were among the biggest positive influences on the blue-chip Dow average.

-cut-

"Energy stocks have been the year's winners, but the weather's been gorgeous and there were a lot of overblown fears with the hurricanes," said Kevin Kruszenski, head of listed trading at McDonald Investments Inc. in Cleveland. "So sectors that have been out of favor, mainly technology and the financials, are now providing some leadership, the banks, in particular."

more

[ozymandius]

3. Oil slips toward $59

LONDON (Reuters) - Oil prices edged lower on Tuesday after two sessions of deep losses as mild weather dampened demand across the northern hemisphere.

U.S. light crude oil slipped 26 cents to $59.21 a barrel by 1122 GMT, while London Brent crude fell 31 cents to $57.73.

On Monday, U.S. crude touched an intraday low of $58.60 a barrel, the weakest level since late July, and prices had also fallen by more than a dollar on Friday.

"We started coming down at the end of August," said Christopher Bellew of Bache Financial in London. "So we've been coming down for about 10 weeks. Oil trends tend to go on for much longer than that, so we have got a continuation of the downward movement, whether on warm weather or on weak demand."

more

[ozymandius]

4. Survey: Gas drops 23 cents per gallon

(CNN) -- Prices at the pump fell 23 cents per gallon in the United States in the past two weeks, according to a survey released Sunday.

The average price of a gallon of self-serve regular was $2.43, the Lundberg Survey found.

That was about 20 cents lower than it had been a few days before Hurricane Katrina hit the Gulf Coast on August 29.

It was also 41 cents higher than the average a year ago.

more...

http://www.cnn.com/2005/US/11/06/gas.prices/index.html

[UpInArms]

17. Imports, Refineries Help Trim Gas Prices

http://www.washingtonpost.com/wp-dyn/content/article/2005/11/07/AR2005110701449.html

Gasoline prices have tumbled in recent weeks from their hurricane-induced highs, sliding 10 cents to a national average of $2.38 for a gallon of regular yesterday compared with a week ago, according to the U.S. Energy Information Administration.

Prices peaked at nearly $3.07 a gallon nationally after Hurricane Katrina struck oil operations in the Gulf Coast region. Hurricane Rita caused further damage, keeping prices elevated.

But since then, gasoline imports have increased, domestic refineries and oil production have been coming back on line, and consumers' thirst for gasoline has dipped. Gasoline prices, however, are still above levels of a year ago, when a gallon of regular was nearly 38 cents cheaper than it is today, according to the Energy Information Administration.



...more...

[ozymandius]

5. Energy Agency Sets Grim Oil Forecast

The International Energy Agency, in an unusually stark call for change that reflects rising anxiety over future energy supplies, urged the industrialized world to start weaning itself off oil.

The Paris-based energy watchdog for the U.S. and 25 other wealthy nations yesterday raised its long-term forecast for oil prices by as much as one-third and painted a pessimistic picture of the future economy if global use of oil and natural gas isn't reduced.

The IEA's call for change is especially notable because the agency is a mainstream economic agency whose views reflect a consensus among experts from the U.S., Japan and other member states. The report is the latest evidence that the continuing rise in energy prices and growing volatility in the Middle East are altering the conventional wisdom on the future of the world's energy use.

-cut-

The IEA sketched two scenarios for prices through 2030. Its deferred-investment scenario looks at what will happen if producers in the Middle East and North Africa don't immediately increase investment substantially. The average price of crude oil imported by IEA members would be unlikely to fall at all by 2010 from current high levels, and would rise to an assumed price of $86 a barrel in nominal terms by 2030, the IEA said. U.S. benchmark crude oil, which trades about $5 a barrel over the benchmark used by the IEA, was at $59.47 a barrel late yesterday.

more

[54anickel]

32. Hummer Overfloweth (heh-heh!)

http://themessthatgreenspanmade.blogspot.com/2005/11/hummer-overfloweth.html

The word around town was that the Hummers weren't moving. It looked like high gas prices and a White House reversal on fuel conservation meant that fewer "W" bumper stickers would find their exposed sticky sides mating gloriously with the smooth rear bumper of an H2, somewhere between the tow loop and the access hole for a Class 3 hitch.

We were skeptical at first. Sources can be unreliable, but the scuttlebutt was that inventory had been building for months now and the local Hummer dealer had panicked. He had begun storing his Hummer inventory at an undisclosed location, far from the dealer showroom so as not to spook jittery, prospective buyers with the mounting number of unsold H2s and H3s.

When an anonymous caller phoned in with the location, we were off. "The rear parking lot of the Hyatt Westlake Plaza Hotel", he said, just before the line went dead.

TMTGM investigative sleuths Erik Ustin and Ray Pizzuti grabbed your still somewhat skeptical editor, and after stopping at Human Resources to pick up a few "half-off at Togo's" coupons we scurried past security, through the main entrance, and out to the parking lot.

more with lotsa pictures...

[UpInArms]

34. those pictures are priceless!

and I recommend going to the link posted above to see them!

[54anickel]

35. Yet GM keeps tossin' money at 'em

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-03T163845Z_01_N03564587_RTRIDST_0_AUTOS-GM-UPDATE-1.XML

DETROIT, Nov 3 (Reuters) - General Motors Corp.(GM.N: Quote, Profile, Research) on Thursday said it will invest about $20 million in its Shreveport, Louisiana, truck assembly plant to increase production of the Hummer H3 sport utility vehicle and Chevrolet Colorado and GMC Canyon mid-size pickups.

snip>

Sales of the Colorado and Canyon have fallen steadily over the last three months, with Colorado sales slumping 41.7 percent in October and Canyon sales off 33.1 percent.

Still, on a year-to-date basis, Colorado sales have risen 17.6 percent while Canyon sales have soared 42.6 percent.

GM's total recent investments in Shreveport for all three vehicles top more than $1 billion

[loudsue]

43. I wish they'd send 'em to our troops in IRAQ!!!

They're badly needed over there.


But, NOOOOOOO! Our troops have to try to patch their hummers up with duct tape and plastic, or scraps from junk yards.

:kick::kick::kick:

[AnneD]

47. Thanks UIA, 54anickle...

I always wondered where you went when you are not on the SW thread. Diseminating economic discontent no less. Thanks for the pics and website.....too funny. Will Hummers be like toasters on day-open a checking account, get a Hummer...

[mojavekid]

52. Ha! Ha!,

I know exactly where that is, I grew up at Lake Sherwood, in the Santa Monica Mountains outside of Westlake Village. If they are not selling there...a very bad sign indeed.

Loved this little snip,

"the Hummer SUV, is a metaphor for America in the world today - overweight, overpriced, inefficient, and unloved."

Great find 54!

[UpInArms]

31. Dec Crude @ $59.25 bbl - Dec NatGas @ $11.59 mln btus

11:14am 11/08/05 DEC CRUDE FALLS 22C TO $59.25/BRL AFTER RISE TO $59.80 HIGH

11:14am 11/08/05 DEC NATURAL GAS AT $11.59/MLN BTUS, DOWN 28.3C, OR 2.4%

11:14am 11/08/05 DEC HEATING OIL FALLS 1.5%; DEC UNLEADED GAS DOWN 1%

[UpInArms]

51. Dec Crude @ $59.50 bbl - Dec NatGas @ $11.72 mln btus

2:01pm 11/08/05 DEC CRUDE UP 3C AT $59.50/BRL IN LAST HALF HR OF NY TRADE

2:01pm 11/08/05 DEC NATURAL GAS DOWN 15.3C, OR 1.3%, AT $11.72/MLN BTUS

[UpInArms]

57. Dec Crude closes @ $59.71 bbl - Dec NatGas @ $11.793 mln btus

2:55pm 11/08/05 DEC CRUDE CLOSES AT $59.71/BRL, UP 24C, OR 0.4%

2:55pm 11/08/05 DEC NATURAL GAS FALLS 8C, OR 0.7%, TO END AT $11.793/MLN BTU

[UpInArms]

38. Winter Heating Bills to increase 41% - DOE

(the headline they wrote sucked - so I made one more appropriate for the information included)

Energy Dept. revises winter heating bills lower

(See? Your bills are not going to be lower! They are going to be 41% higher! :banghead: What a crock!)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38664.5126480208-849428581&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- It'll cost U.S. consumers up to 41% more to heat their homes this winter than last winter, but not as much as assumed a month ago, the Energy Department said Tuesday. In its monthly short-term outlook, the government said heating a home with natural gas will cost $306, or 41%, more this winter. In the last forecast, natural gas heating bills were expected to rise $350. Heating with heating oil will cost $325 more, heating with propone will cost $230 more and heating with electricity will cost $38 more. While retail and wholesale prices have fallen faster than expected, the government now expects full recovery of Gulf of Mexico energy production to take until March, three months longer than assumed last month.

[ozymandius]

6. I hope you folks will pardon my absence.

Activities at work have cranked up several notches, making time to participate here quite scarce. My intended habit is to update once an hour and at lunch. However, recently, lunch has been taken while standing.

I heartily appreciate the outstanding flow of information from our regulars and the occasional participation among those who often tend to look. For the latter, I wholly encourage your increased participation. All we regular posters were once as you are: either occasional or simply lurking. This is a community. Please join the discussion.

all things good,

Ozy :hi:

:donut:

[plasticsundance]

14. Thanks for all the hard work Ozy

I really appreciate reading this thread at DU.

Cheers!

:toast:

[UpInArms]

8. daily dollar watch

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

Last trade 91.86 Change +0.57 (+0.62%)

Dollar hits 2-year high vs euro

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-11-08T113359Z_01_DIT841250_RTRUKOC_0_US-MARKETS-FOREX.xml

LONDON (Reuters) - The dollar hit a two-year high against the euro on Tuesday and held near a 26-month peak versus the yen as investors bet higher U.S. interest rates meant yield differentials would widen in favor of the greenback.

The spread of social unrest in France and pressure from European politicians on the European Central Bank not to raise interest rates in a hurry also undermined sentiment in the single currency.

With little major economic data due later in the day, euro selling snowballed after breach of a key technical level at around $1.1750 per euro.

"Sentiment is quite positive for the dollar. We are breaking levels so short term there is momentum. Fundamentally we are looking at interest rates," said Bilal Hafeez, currency strategist at Deutsche Bank.

...more...

Snow presses China on flexible currency

http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2005-11-08T113104Z_01_DIT840561_RTRUKOC_0_US-ECONOMY-SNOW.xml

MUMBAI (Reuters) - U.S. Treasury Secretary John Snow repeated on Tuesday that the Bush administration is continuing to press China to adopt a more flexible currency regime to help the global economy.

Speaking to a group of Indian reporters on the second day of a four-day visit to India, Snow also expressed his hope that next month's World Trade Organization (WTO) negotiations, in which he said India has a large stake, will be successful.

"Our main issues with China are intellectual property rights, counterfeiting, making sure WTO rules are enforced and moving to a more flexible currency regime," he said.

Snow, who is expected to seek India's support for broad tariff reduction at the Doha round talks, said India could benefit from measures to break down barriers to global trade.

Snow is to meet Finance Minister Palaniappan Chidambaram in New Delhi on Wednesday for talks that include discussion of the Doha round talks in Hong Kong in December.

"It seems India would gain significantly from the Doha round and the U.S. is clearly trying to encourage progress in the Doha round. I'm still hopeful on the Doha round," he said.

...more...

Dollar Pushes Majors Into 2003 Territory

http://www.dailyfx.com/index.php?option=com_content&task=view&id=4700&Itemid=39

Why do we trade? Money, financial freedom, recognition, success, maybe. Those all good reasons to trade, but they ultimately lead to vanity and greed and that leads to devastation. Greed is the worst motivation for trading; market will always punish greed and will always reward moderation. Never try to make all of the money in one trade; you can’t place everything on the outcome of one trade, if the trader does that, than I see no future for that trader, because he or she is not trading, but gambling. There is a fine line between traders and gamblers, because when there is money there are always those taking blind chances. If you want to succeed as a trader, do not think like a gambler, do not take blind chances and do not rely on luck because luck comes and goes just like a gambler, it’s the trader who remains. Please feel free to email me at [e-mail] with your comments.

...more...

[loudsue]

44. Hmmm. A really good time to buy Euros!!

I bought mine at a premium, but I think I'll buy some more at this sale price!

:kick::kick::kick:

[UpInArms]

9. Newspapers see circulation drop

http://www.suntimes.com/output/business/cst-fin-trib08.html

The Chicago Tribune's paid circulation fell 2.5 percent in mid-2005, part of an industry-wide decline in newspaper sales, according to a report issued Monday.

The Tribune sold an average of 586,122 copies on weekdays during the six-month period ended Sept. 30, down from 600,988 a year ago, according to the Audit Bureau of Circulations, a Schaumburg-based industry group.

<snip>

With more people getting news from the Internet, the erosion now appears to be accelerating. Average circulation across all U.S. newspapers fell 2.6 percent during the recent six-month reporting period, according to the Newspaper Association of America. Sunday circulation dropped 3.1 percent. During the last six-month reporting period, ending in March 2005, average daily circulation fell 1.9 percent, with Sunday down 2.5 percent.

<snip>

Among other large newspapers, the Wall Street Journal's circulation fell 1.1 percent, USA Today's fell 0.59 percent, and the Washington Post's fell 4.09 percent. The San Francisco Chronicle's plunged 16.4 percent.

...more...

[UpInArms]

10. (Comair) 315 jobs may go in first wave of cuts

http://www.mercurynews.com/mld/mercurynews/news/breaking_news/13111516.htm

CINCINNATI - Comair says 315 pilots and flight attendants could be laid off in the first wave of cuts as the regional airline tries to restructure under bankruptcy.

Most of the pilots and flight attendants are based at the Cincinnati-Northern Kentucky International Airport.

In a notice required by Kentucky state law, Comair said on Monday the layoffs would take place on Jan. 2 and could include up to 150 pilots and 165 flight attendants.

Comair's corporate parent, Delta Air Lines, also has begun warning workers of potential layoffs from its local operation as it too restructures under bankruptcy.

The job cuts are part of Delta's efforts to shrink its hub in Cincinnati, including a 26 percent cut in the flight schedule on Dec. 2.

Comair could drop another 650 jobs as it tries to cut $70 million from its annual costs.

...more...

[UpInArms]

11. Visteon posts larger-than-expected quarterly loss

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-08T123721Z_01_N08348038_RTRIDST_0_AUTOS-VISTEON-EARNS-UPDATE-1.XML

CHICAGO, Nov 8 (Reuters) - Auto parts maker Visteon Corp. (VC.N: Quote, Profile, Research) on Tuesday posted a bigger-than-expected third-quarter loss, pressured by North America vehicle production cuts and high raw materials prices.

The company said it expects to recognize a gain of up to $1.8 billion in the fourth quarter from former parent Ford Motor Co.'s (F.N: Quote, Profile, Research) bailout, but forecast an operating loss and negative cash flow because of commodity and customer pricing pressures.

The third-quarter net loss narrowed to $200 million, or $1.58 per share, from $1.44 billion, or $11.48 per share, in the year earlier quarter when Visteon took $1.3 billion in charges, mainly for deferred tax asset valuation allowances and asset impairments.

<snip>

Visteon on Oct. 1 returned 23 facilities to Ford under a massive bailout to avoid bankruptcy. The move slashed annual revenue by about 40 percent to $11.4 billion, but reduced the company's reliance on Ford business.

...more...

[UpInArms]

12. Refco Accounts Declined Following Bennett Disclosure, Bankruptcy

http://www.bloomberg.com/apps/news?pid=10000103&sid=aQAmPzJKzk44&refer=us

Nov. 8 (Bloomberg) -- Refco Inc., the No. 4 U.S. futures broker at the end of September, lost about half the value of its U.S. customer accounts before it filed for bankruptcy protection three weeks later.

Refco, which filed for bankruptcy Oct. 17, had $6.5 billion in customer accounts at its U.S. futures units as of Sept. 30, according to data posted on the Commodity Futures Trading Commission Web site yesterday. Customer accounts at the company's global futures units, including the U.S., tumbled to $3.4 billion as of Oct. 24, the most recent date for which data is available.

The customer accounts are the primary assets New York-based Refco plans to auction tomorrow based on confidential bids submitted last week. The company's disclosure that Refco Chief Executive Phillip Bennett's hid $430 million in debt prompted a customer exodus from Refco's regulated businesses, including the futures unit.

The reduced customer accounts may ``have a direct effect on depressing the price'' at the auction, said Lynn LoPucki, a bankruptcy professor at the law school at the University of California, Los Angeles. ``The disclosures and the bankruptcy happened very suddenly and there is no reason to believe we are at the bottom of things.''

...more...

[UpInArms]

13. (High-End Home Builder) Toll Brothers sees 2006 falling short of forecast

notice they blame this on "regulations" rather than the popping of the housing bubble :eyes:

Remember that they were blaming the energy gouging by Enron on the environmentalists.

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-08T103008Z_01_WEN3833_RTRIDST_0_PROPERTY-TOLLBROTHERS-URGENT.XML

NEW YORK, Nov 8 (Reuters) - Toll Brothers Inc. (TOL.N: Quote, Profile, Research) on Tuesday reported record fourth-quarter home-building revenue, but warned new home deliveries and earnings next year would probably fall short of its expectations.

The Horsham, Pennsylvania-based luxury home builder reported a 39 percent rise in fourth-quarter home-building revenue to $2.01 billion -- more than its annual production five years ago.

At the end of October, the company had a record backlog of $6.01 billion, up 36 percent. Also, fourth-quarter contracts rose 4 percent to $1.59 billion.

But a number of factors, including tougher land-review regulations in many states, has stretched out the time needed to complete and sell new homes.

...more...

[UpInArms]

49. U.S. stocks decline on dimmer housing outlook

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-08T185716Z_01_N08637466_RTRIDST_0_MARKETS-STOCKS-UPDATE-8.XML

NEW YORK, Nov 8 (Reuters) - U.S. stocks declined on Tuesday after leading home builder Toll Brothers Inc. (TOL.N: Quote, Profile, Research) gave a disappointing outlook for next year, raising concern that the housing sector, an important driver of economic growth, may be slowing.

Shares of Toll Brothers plunged 11.8 percent to $34.78 after the luxury home builder warned new home deliveries and earnings next year would probably fall short of its forecast.

The slide in Toll Brothers' shares helped push the Dow Jones U.S. Home Construction Index down 6.3 percent, its biggest one-day drop since November 2002.

"If the home builders are doing badly, it shows the housing market is slowing down," said Neil Massa, senior trader at John Hancock Funds in Boston. "Whatever happens to them determines how much the consumer will have to spend for the holiday season."

...more...

Froth or bubbles - is that the sound of popping noises in the background?

[UpInArms]

54. Toll Bros. selloff may signal bursting home bubble

http://www.marketwatch.com/news/story.asp?guid=%7B8A1AA627%2D2023%2D4020%2D802C%2D8DA6F8D44B3E%7D&siteid=mktw

Bell 'Toll-ing' for housing market?
Toll Bros. warning fuels worries bubble set to finally pop

BOSTON (MarketWatch) -- After years of heady gains driven by strong demand for housing and low mortgage rates, homebuilder stocks have been on a downtrend since August on jitters the housing market may finally be losing steam.

<snip>

"I think the homebuilders are finally showing a crack in their armor," said Art Hogan, chief market analyst at Jeffries & Co. Listen to broadband interview.

Perhaps an even more important question is how far the damage will spread in the U.S. economy since many sectors are linked to the health of home-construction industry.

http://www.marketwatch.com/news/image.asp?track=201&guid={8A1AA627-2023-4020-802C-8DA6F8D44B3E}

...more...

[UpInArms]

15. MBIA profit falls after charge for regulatory settlement (derivatives)

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7B1F6F01F4-AFAA-4490-86A1-5C441CBFB61C%7D&

NEW YORK (MarketWatch) -- Bond insurer MBIA (MBI) said Tuesday its net income fell 22% due to a $75 million accrual for the total amount it estimates it will have to pay regulators to settle issues regarding finite insurance transactions. The company said it earned $141.8 million, or $1.04 a share in the third quarter, compared to $183.2 million, or $1.27 a share a year ago. On an operating basis, the company earned $1.40 a share, up from $1.33 a share a year ago and slightly ahead of the average $1.38 a share estimate of analysts polled by Thomson First Call. The company also said it plans to restate earnings for several years, going as far back as 1998, to reflect its expected regulatory settlement and certain derivatives transactions.

[UpInArms]

29. MBIA restatements from 1998

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-08T160551Z_01_N08608853_RTRIDST_0_FINANCIAL-MBIA-EARNS-UPDATE-2.XML

NEW YORK, Nov 8 (Reuters) - Bond insurer MBIA Inc. (MBI.N: Quote, Profile, Research) on Tuesday said it would restate earnings since 1998 and set aside $75 million, as it prepares to settle accounting probes that have weighed on its share price for months.

Setting aside $75 million cut into the company's third-quarter earnings, which fell 23 percent.

MBIA said it would delay filing its quarterly financial statements with regulators until Monday, and its amended 2004 annual financial statement would be filed "as soon as practicable."

<snip>

But a bearish analyst who declined to be named said that MBIA was being investigated for other issues, as well, and it was not clear what the outcome of those probes will be.

...more...

7 years of cooking the books :argh:

[UpInArms]

16. Blockbuster posts loss; sees more cost-cutting

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-08T135325Z_01_N08595698_RTRIDST_0_RETAIL-BLOCKBUSTER-EARNS-UPDATE-1.XML

CHICAGO, Nov 8 (Reuters) - Blockbuster Inc. (BBI.N: Quote, Profile, Research), the nation's No. 1 video rental chain, on Tuesday reported a quarterly loss as it grapples with a downturn in the rental industry and a bruising battle with rival Netflix Inc. (NFLX.O: Quote, Profile, Research).

Blockbuster reported a third-quarter net loss of $491.4 million, or $2.67 per share, including asset impairment and other charges.

Excluding those items, the loss totaled $24.6 million, or 13 cents per share. Analysts, on average, had expected an operating loss of 12 cents per share, according to Reuters Estimates.

<snip>

It said it intends to cut costs by more than $100 million in 2006 and $50 million in 2007 by reducing overhead and marketing spending and selling non-core assets.

...more...

[UpInArms]

18. Wheeling-Pittsburgh quarterly profit drops 41%

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38664.3859633102-849405670&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Wheeling-Pittsburgh Corp. (WPSC) , a steel company, said it lost $21.1 million, or $1.47 a share, in the third-quarter. A year ago, Wheeling-Pittsburgh earned $35.5 million, or $3.42 a share. The discrepancy between the two quarters had to do with lower average selling prices per ton of steel products -- $623 per ton vs. $750 per ton a year ago -- and higher costs of sales. The company said it may not satisfy the covenants of its term loan agreement, amended Sept. 29, for the fourth quarter. The amended loan allowed Wheeling-Pittsburgh to contribute its coke producing facility to a new joint venture. The company had to reclassify the long-term portion of the loan as a current liability as of Sept. 30 and said it is trying to resolve the matter.

9:06am 11/08/05 WHEELING-PITTSBURGH MAY FALL OUT OF COMPLIANCE ON TERM LOAN

9:04am 11/08/05 WHEELING-PITTSBURGH Q3 REVENUE $374.9M VS $401.8M

9:05am 11/08/05 WHEELING-PITTSBURGH Q3 AVERAGE STEEL PRICE $623-TON VS $750

9:03am 11/08/05 WHEELING-PITTSBURGH Q3 LOSS $1.47 VS NET $3.42

[UpInArms]

19. Cooper Tire posts loss - Tire maker cities weaker demand, higher costs

http://www.marketwatch.com/news/story.asp?guid=%7B14C3F4A3%2D66FF%2D4D95%2DB1D9%2D7D4FEB5F1794%7D&siteid=mktw

NEW YORK (MarketWatch) - Cooper Tire & Rubber said Tuesday that lower sales and higher raw material costs offset higher selling prices in the third quarter, and said it would continue to curtail its production tires in North America in the fourth quarter.

<snip>

Industry demand for replacement tires in the quarter was soft, the company said, with shipments of light vehicle tires falling by 7%, more than the industry-wide decline of about 1%.

Operating profit for Cooper's North American tire segment fell to $17 million from $27 million. "The decline was largely the result of lower unit sales volumes, which can be partially attributed to a loss of broadline market share, and higher raw material costs," according to Cooper's news release. The gains were partially offset by price increases and improved product mix.

Findlay, Ohio-based Cooper said it will continue to operate its North American plants on reduced production schedules, crimping fourth-quarter operating profit and "obscure the progress we are achieving in production process changes and manufacturing efficiency."

...more...

[UpInArms]

20. 9:39 EST markets deep in the red with pre-opening blather

Dow 10,533.96 -52.27 (-0.49%)
Nasdaq 2,170.08 -8.16 (-0.37%)
S&P 500 1,217.10 -5.71 (-0.47%)
10-Yr Bond 4.594 -0.45 (-0.97%)

NYSE Volume 88,796,000
Nasdaq Volume 117,422,000

9:15AM: S&P futures vs fair value: -5.5. Nasdaq futures vs fair value: -5.0.

9:00AM: S&P futures vs fair value: -5.2. Nasdaq futures vs fair value: -4.5. Stage remains set for the cash market to open lower as futures indications continue to trade near their morning lows below fair value. Transocean (RIG), one of Briefing.com's suggested holdings, and Alcan Aluminium (AL) beat forecasts while Dynegy (DYN) and Visteon (VC) missed analysts' expectations; however, with earnings season coming to a close and more than 85% of the S&P 500 having already reported, none of the reports will not have much influence on the overall market.

8:30AM: S&P futures vs fair value: -4.7. Nasdaq futures vs fair value: -3.0. Still shaping up to be a sluggish start for stocks as pre-market action continues to lack catalysts to incite follow-through buying interest. Bonds, however, continue to attract buyers, as an extension of yesterday's recovery effort in the 10-yr note (+08/32) has pushed the yield to 4.58% which, in addition to a 60% year/year increase in Oct. mortgage loan fundings at Countrywide Financial (CFC), could help support the influential Financial sector.

8:00AM: S&P futures vs fair value: -4.6. Nasdaq futures vs fair value: -4.0. Futures trade versus fair value suggesting a lower open for the cash market as a dearth of notable economic and earnings data to set a more definitive tone provide investors with little incentive to extend the broader market's longest winning streak since late September. Oil prices continue to deteriorate, trading near three-month lows around $59/bbl, but an underlying sense that some profit taking may occur in the early going following four straight days of gains is acting as a limiting factor.

[UpInArms]

21. Printing Press Report: Fed adds temporary reserves via 2-day system RPs

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-08T143513Z_01_N08618543_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Nov 8 (Reuters) - The Federal Reserve said on Tuesday it was adding temporary reserves to the U.S. banking system through two-day system repurchase agreements.

The benchmark federal funds rate last traded at 4.00 percent, 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]

23. US Treasuries rise as market gets set for auctions

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-08T144321Z_01_N08334180_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, Nov 8 (Reuters) - Prices of U.S. Treasuries rose on Tuesday as money moved into U.S. debt from the euro zone to take advantage of higher interest rates and as investors prepared for a $44 billion quarterly U.S. debt refunding.

Traders were generally optimistic this week's three sales of U.S. Treasury debt would go well, largely because selling in the last few weeks had pushed up yields and lowered prices.

"I think the auctions will go fine. There's going to be continued foreign demand. We're up toward the high (yield) range for the year. I think we'll do OK," said Alan De Rose, a trader at CIBC World Markets in New York.

An $18 billion sale of three-year notes starts the quarterly refunding off at 1 p.m. (1800 GMT) on Tuesday, and will be followed by $13 billion sales of five- and 10-year notes on Wednesday and Thursday respectively.

...more...

[UpInArms]

42. Treasury Auction results:

1:06pm 11/08/05 <$TNX> TREASURYS HOLD BROAD GAINS AFTER FIRST LEG OF DEBT AUCTIONS

1:03pm 11/08/05 TREASURY 3-YEAR NOTE AUCTION BID-TO-COVER RATIO 2.42:1

1:03pm 11/08/05 TREASURY AUCTIONS 3-YEAR NOTES AT 4.458% YIELD

[UpInArms]

48. more info (scant foreign bank interest):

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-08T184409Z_01_N08486648_RTRIDST_0_MARKETS-BONDS-UPDATE-2.XML

NEW YORK, Nov 8 (Reuters) - U.S. Treasury debt rallied for a second consecutive session on Tuesday as downtrodden bulls seized on positive technicals in an effort to recover from a two-month slump.

The first leg of the government's quarterly refunding, a sale of $18 billion in new three-year notes, was a mixed blessing for the market.

Overall demand was solid. But interest from indirect bidders, a category that includes foreign central banks, was scant.

<snip>

But indirect bidders, often used as a proxy for offshore interest in Treasuries, bought only $5.26 billion, or 29.2 percent of the sale.

That was way below the 37.4 percent average in the prior three 2005 auctions and left primary dealers holding $12.12 billion, or 67.3 percent of the deal.

"The indirect bid was way below normal, so the foreign participation was not that great," said Frank Hsu, director of global fixed income at Fimat.

...more...

[UpInArms]

24. Treasuries investors more bearish in week - poll

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-08T145414Z_01_N08430101_RTRIDST_0_FINANCIAL-TREASURIES-JPMORGAN.XML

NEW YORK, Nov 8 (Reuters) - The number of investors who are bearish on Treasuries rose from a week ago with expectations the Federal Reserve has further to go in raising official interest rates, according to a survey released on Tuesday.

The share of investors polled on Sunday, Nov. 6 who said they were short on Treasuries rose to 40 percent from 33 percent last week, said J.P. Morgan Securities.

The number of outright shorts was the greatest since the end of September, J.P. Morgan said.

Among active clients surveyed, which include market makers and hedge funds, 3 percent said they were short Treasuries, up slightly from last week's 2 percent, the firm said.

The survey was taken after the Federal Reserve last week raised official interest rates by 0.25 percentage point and retained key language in their statement pointing to further monetary tightening.

...more...

[UpInArms]

22. Dec Gold @ $462.40 oz

9:44am 11/08/05 DEC GOLD CLIMBS $2 TO $462.40/OZ IN MORNING NY TRADE

[UpInArms]

46. Dec Gold closes @ $462.30 oz

1:40pm 11/08/05 DEC GOLD CLOSES AT $462.30/OZ, UP $1.90, OR 0.4%

[ozymandius]

26. 10:45 numbers and blather

:hi:
Dow 10,540.12 -46.11 (-0.44%)
Nasdaq 2,174.23 -4.01 (-0.18%)
S&P 500 1,218.24 -4.57 (-0.37%)
10-Yr Bond 45.65 -0.74 (-1.60%)

10:30AM: Major indices continue to trade near their lows of the morning, finding little comfort in the fact that oil prices ($59.59/bbl +$0.12) have turned positive. Be that as it may, Energy has taken notice and inched into the green; however, even though Energy continues to comprise one of the few pockets of strength for the broader market, the sector's 10.3% weighting on the S&P offers little influence on overall trading. XOI +0.3, NYSE Adv/Dec 859/1997, Nasdaq Adv/Dec 828/1807

10:00AM: Equities remain on the defensive as all ten economic sectors trade in negative territory. Hardest hit has been has been Consumer Discretionary as Toll Brothers' (TOL 34.63 -4.78) reduced FY06 deliveries guidance weighs heavily on homebuilding (i.e. PHM, CTX, KBH) and investors lock in some of retail's 8.0% surge over the last three weeks. Profit-taking in brokerage, just three days removed from hitting an all-time high, and Freddie Mac's (FRE 60.08 -1.16) $220 mln profit reduction for the first half of 2005, has weighed on Financial while Technology's more than 7.0% surge since mid October has also prompted consolidation efforts.DJTA -0.9, DJUA -0.6, DOT -0.6, Nasdaq 100 -0.3, Russell 2000 -0.6, SOX -1.0, S&P Midcap 400 -1.0, XOI -0.6, NYSE Adv/Dec 602/1698, Nasdaq Adv/Dec 738/1674

[UpInArms]

28. Wall St bonuses seen 5-10 pct higher-survey

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-08T154841Z_01_N08461745_RTRIDST_0_FINANCIAL-BONUSES.XML

NEW YORK, Nov 8 (Reuters) - Wall Street bankers and traders can expect to receive 5 to 10 percent more in year-end bonuses this year in the third straight year of higher incentive payouts, according to a compensation survey released on Tuesday.

Johnson Associates Inc., a compensation consulting firm, said the strong financial performance delivered by the major brokerage and investment firms in the third quarter should produce a third year of higher payouts which include cash bonuses and equity awards.

"While the fourth quarter may show signs of weakness, most firms are far enough into their fiscal year and business cycle to avoid any widespread negative impact on 2005 results," Alan Johnson, managing director of Johnson Associates, said in a statement.

Bonuses closely trace revenues and 2005 has been a banner year for mergers and acquisitions, fixed-income trading, prime brokerage and commodities.

Johnson said year-end bonuses would on average increase 5 to 10 percent over 2004 but there would be significant variations among companies and business lines with the big winners active in energy markets and hedge funds and successful in proprietary trading.

...more...

[AnneD]

37. Gee...

All we use to get was a turkey, and we don't get that anymore:shrug: Now remind me....how much money did I make on that cash I loaned you guys to use. All I remember getting was a dog and pony show and some kindling (annual report) from you guys.

[UpInArms]

45. CEO, director pay rising, studies show

http://www.marketwatch.com/news/story.asp?guid=%7BD648C961%2D2FA2%2D4608%2D9581%2D10A8081BC956%7D&siteid=mktw

NEW YORK (MarketWatch) -- The overall compensation of U.S. chief executives rose again in 2004 as generally good profit growth boosted bonuses, but a trend toward shifting away from stock options slowed the aggregate growth rate, according to a study published Tuesday.

"It's pretty much the same pattern as in prior years in that compensation has gone up, but it's not showing the dramatic increases that it did during the go-go stock market of the '90s where CEOs were getting huge option grants," said Charles Peck, compensation specialist at the Conference Board, a non-profit corporate research group.

After looking at data from more than 3,000 U.S. companies in 14 major industries, the median total compensation for CEOs rose in all industries in 2004, the latest year for which data are available, the Conference Board concluded.

By industry, total compensation -- including salary, bonus and long-term pay, such as restricted stock awards -- was the highest in construction at $2.8 million, while transportation saw the lowest at $803,000, the survey showed.

...more...

And the Congress will still not raise the minimum wage above $5.15 an hour because it would cost those poor corporations too much and it would hurt their profits.

[UpInArms]

39. GOPpiggies outline $60 Billion in Tax Cuts for Rich

http://www.marketwatch.com/news/story.asp?guid=%7BFCFEBF20%2D39AA%2D41CF%2DAE6C%2D126FF772D4C0%7D&siteid=mktw

WASHINGTON (MarketWatch) - The Senate Finance Committee will tackle a plan to cut taxes by a net $60 billion over the next five years, including the extension of lower tax rates for capital gains and corporate dividends, on Thursday.

The package will also include a one-year patch to keep the alternative minimum tax, or AMT, from encroaching on a growing number of middle-class Americans, said Senate Finance Committee Chairman Charles Grassley, an Iowa Republican. That provision will reduce expected revenues by $30 billion in fiscal 2006.

The securities industry has lobbied hard for the extension of the capital gains and dividends tax cut, which was enacted in 2003. The change lowered the tax rate on corporate dividends, which had been taxed at personal income tax rates as high as 35%, to 15%. The rate on most capital gains was lowered from 20% to 15%.

The changes are set to expire at the end of 2008. Grassley, speaking to an audience of lobbyists at the U.S. Chamber of Commerce, said he would seek to extend the cut until 2010.

<snip>

The House version of the spending bill cuts more deeply into key programs for the poor, including Medicaid. That's drawn protests from moderate Republicans worried they'll be punished at the voting booth next year for pressing for further tax cuts while cutting into low-income assistance programs.

...more...

[UpInArms]

40. 12:39 EST numbers and blather

Dow 10,553.81 -32.42 (-0.31%)
Nasdaq 2,177.65 -0.59 (-0.03%)
S&P 500 1,219.81 -3.00 (-0.25%)
10-Yr Bond 4.561 -0.78 (-1.68%)

NYSE Volume 978,083,000
Nasdaq Volume 898,646,000

12:00PM : Broad-based consolidation efforts following four straight days of gains continue to dictate market action midday, as six of ten economic sectors trade lower and leave the major averages mixed. Consumer Discretionary remains the day's worst performer as Toll Brothers' (TOL 35.32 -4.09) reduced FY06 outlook weighs heavily on homebuilding while investors use retail's 8.0% surge since mid October as an incentive to lock in gains. Despite a continued recovery in the Treasury market spurred in part by strong anticipation for today's 3-yr note auction, which has knocked the yield on the 10-yr note (+13/32) down to 4.56% - an improvement of 10 basis points from Friday's close, the rate-sensitive Financial sector remains an influential drag on the overall market. Freddie Mac's (FRE 60.15 -1.09) $220 mln profit reduction for the first half of 2005 and consolidation in brokerage and bank stocks are acting as the biggest restraining factors. Energy, however, has recouped some of yesterday's 1.6% drubbing, as a strong Q3 report from Transocean (RIG 59.91 +1.19), one of Briefing.com's suggested holdings, helps offset oil prices trading near session lows. Technology has also found pockets of strength in the Internet, semiconductor, software groups but has yet to completely counter early concerns that the outlook for earnings growth is already reflected in stock prices at current levels. DJTA -0.2, DJUA -0.2, DOT +0.3, Nasdaq 100 +0.4, Russell 2000 -0.7, SOX +0.4, S&P Midcap 400 -0.4, XOI +1.0, NYSE Adv/Dec 1064/2002, Nasdaq Adv/Dec 1022/1790

11:30AM : Market improves its stance over the last 15 minutes as oil prices fall to session lows near $59/bbl. Technology, amid strength in Internet (i.e. YHOO, EBAY), as well as rebounds in semi (i.e. AMAT, TXN) and software (i.e. MSFT, SYMC), has joined Energy, Telecom Services and Utilities in positive territory. However, sector gains remain modest at best and have yet to lift the tech-heavy Nasdaq into the green.DJUA +0.3, DOT +0.2, SOX +0.2, NYSE Adv/Dec 963/2033, Nasdaq Adv/Dec 967/1788

11:00AM : Little changed since the last update as selling remains widespread across most areas. Bucking the bearish bias, though, has been the Treasury market. The 10-yr note, up 14 ticks to yield 4.56%, is enjoying its first back-to-back gain this month as potentially strong demand for this afternoon's (1:00 ET) $18 bln 3-yr auction raises demand for the 10-yr.NYSE Adv/Dec 927/2015, Nasdaq Adv/Dec 961/1738

[UpInArms]

41. Bank of NY involved in FRAUD scheme

12:50pm 11/08/05 BANK OF NY: AGREEMENT STEMS FROM FRAUD SCHEME PROBE

12:48pm 11/08/05 BANK OF NEW YORK TO PAY $38M AS PART OF AGREEMENT

12:48pm 11/08/05 BANK OF NEW YORK ENTERS INTO NON-PROSECUTION DEAL WITH GOVT

link and blurb on edit

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38664.5389943056-849432912&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- The Bank of New York Co. (BK) said Tuesday it will pay $38 million as part of a non-prosecution agreement with the U.S. Attorney's Offices for the Eastern and Southern Districts of New York. The company said the agreement stems from investigations related to actions by bank employees that facilitated a fraudulent scheme by a former customer of one of the bank's branch offices, and certain funds transfer activities to and from Russia during the period of 1996 to 1999.

[UpInArms]

53. Foreign Loans Diverted in Monster Money Laundering?

http://www.worldbank.org/html/prddr/trans/julaug99/pgs11-13.htm

excerpt:

During an August 21 raid on the Bank of New York, U.S. federal investigators seized the files of Natasha Gurfinkel Kagalovsky, a senior vice president who supervised the bank’s East European division. She and the bank’s vice president in London, Lucy Edwards, were suspended. Ms. Kagalovsky is the wife of Konstantin Kagalovsky, Russia’s representative to the IMF in the early 1990s under Prime Minister Yegor Gaidar’s government. After Gaidar was replaced, Kagalovsky moved to Russia’s Bank Menatep, headed by Russian oil and banking baron Mikhail Khodorkovsky. Menatep snapped up a number of enterprises during Russia’s controversial "loan to share" privatization, including a controlling stake in the country’s second-largest oil company, Yukos. Menatep failed last year amid Russia’s financial crisis (see box on page 16). Kagalovsky is now deputy chairman of Yukos.

Investigators say Menatep and Kagalovsky increasingly are becoming a focus of the investigation. Federal and international law enforcement officials say they are looking into whether Kagalovsky helped construct a byzantine network of offshore corporations that politically connected or mob-linked Russians may have used to siphon hundreds of millions of dollars out of the country. Investigators say that sum may include part of foreign aid and funds pumped into Russia by the IMF to shore up the reeling Russian economy.

Yukos denies that it has been involved in transfer pricing schemes, but oil industry analysts calculate that its subsidiaries effectively lost hundreds of millions in revenue last year by selling its oil to the holding company at bargain rates. Yukos, like all petroleum companies battered by last year’s low world oil prices, itself reported a $79 million loss for 1998. A deal earlier this year scattered the ownership of Yukos’s two oil production companies among six separate offshore firms, from the British Virgin Islands to the windswept Pacific atoll of Niue in the South Pacific.

<snip>

Also under the scrutiny of U.S. federal and local investigators is Russian businessman Peter Berlin and his wife, Lucy Edwards. Berlin, British corporate records show, is listed as a director of Benex Worldwide Ltd., the company that kept several of the suspicious accounts at the New York Bank. Benex maintained close ties to Semion Mogilevich the alleged head of Solnetsevo, Russia’s largest organized crime group. Mogilevich has built a $100 million empire from arms dealing, extortion, prostitution, and other rackets. Before submerging in recent years, he lived in Budapest, Hungary, but is thought to have moved to Moscow in recent weeks. Mogilevich allegedly is the principal target of a strike force assembled in early 1998 by the U.S. government. The force is comprised of the FBI, the Treasury Department, the State Department, the Central Intelligence Agency, and the Hungarian Interior Ministry.

...more...

[UpInArms]

50. 2:07 EST fairies arrive on cue

Dow 10,551.89 -34.34 (-0.32%)
Nasdaq 2,174.71 -3.53 (-0.16%)
S&P 500 1,219.13 -3.68 (-0.30%)
10-Yr Bond 4.563 -0.76 (-1.64%)

NYSE Volume 1,266,886,000
Nasdaq Volume 1,136,056,000

1:30PM: Market extends its reach into negative territory, albeit slightly, as oil prices retracing session highs stall midday recovery efforts. A reversal in semi and software amid continued deterioration in hardware and networking, has so far erased what limited interest investors had shown for technology stocks, perhaps in anticipation of more influential market-moving data later in the week to set a more distinctive tone. Cisco Systems (CSCO 17.94 +0.09) reports Q1 (Oct) results after the close tomorrow while Dell (DELL 29.18 -0.42) reports Q3 earnings on Thursday. SOX -0.1, NYSE Adv/Dec 1222/1948, Nasdaq Adv/Dec 1078/1835

1:00PM: More of the same for stocks as market internals continue to reflect a bearish tone. Decliners on the NYSE, which earlier held a more than 3 to 1 margin over advancers, have seen their advantage narrow to a 19 to 12 edge, while declining issues on the Nasdaq, which at one point enjoyed a 2 to 1 margin over advancing issues, now hold a 17 to 11 lead. A split ratio of down to up volume, though, paints more of a mixed picture at the Big Board and the Composite. Adding to this afternoon's struggles on the Dow has been its inability to find initial support around 10570 while the S&P and Nasdaq have languished near respective support levels of 1219 and 2172. NYSE Adv/Dec 1235/1901, Nasdaq Adv/Dec 1168/1704

12:30PM: No change to the prevailing trend as the afternoon session gets underway. The Nasdaq still clings to a modest gain and remains on positive footing for the year. Chip stocks continue to provide the biggest impact behind the Composite's recovery efforts while gains in electronic manufacturing services (i.e. FLEX, SANM) and biotech (i.e. BIIB, GENZ and GILD) have also lent support.

[UpInArms]

55. Boeing says to lay off 250 employees in Wichita

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-08T192744Z_01_WEN3913_RTRIDST_0_TRANSPORT-BOEING-URGENT.XML

NEW YORK, Nov 8 (Reuters) - Boeing Co. (BA.N: Quote, Profile, Research) said on Tuesday that it would lay off 250 employees in Wichita, Kansas, from its defense unit and other businesses.

The No. 1 U.S. plane maker said the employees would be laid off as of Jan. 13, 2006.

[UpInArms]

56. U.S. Social Security overhaul unlikely before 2009

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-08T192040Z_01_N08604308_RTRIDST_0_RETIREMENT-CONGRESS.XML

WASHINGTON, Nov 8 (Reuters) - President George W. Bush's failure to win support for individual Social Security investment accounts means the U.S. Congress is unlikely to address the retirement program's long-term financial problems before 2009, a senior U.S. senator said on Tuesday.

Charles Grassley, the chairman of the Senate Finance Committee, told a business group he is unable to win agreement for a Social Security overhaul even among his fellow Republicans on the tax writing panel. Democrats remain fiercely opposed to Bush's initiative.

"I am very pessimistic about it in the future," Grassley told the U.S. Chamber of Commerce. "Probably the next bite at Social Security will come in 2009."

Bush made Social Security investment accounts a top domestic priority for his second term arguing it would help young people by putting the retirement program on a more sustainable financial footing.

But despite dozens of speeches around the country, public support for the idea fell. Last month Bush acknowledged that his plan to create individual accounts for workers to invest part of their taxes in stocks and bonds was going nowhere. He told a press conference "there seems to be a diminished appetite in the short term."

...more...

I'm not throwing a Ruby Red Shoe Party yet.

[UpInArms]

58. 3:19 EST numbers and blather

Dow 10,561.08 -25.15 (-0.24%)
Nasdaq 2,176.19 -2.05 (-0.09%)
S&P 500 1,220.62 -2.19 (-0.18%)
10-Yr Bond 4.563 -0.76 (-1.64%)

NYSE Volume 1,547,994,000
Nasdaq Volume 1,352,611,000

3:00PM: Indices continue to chalk up losses in the absence of spirited leadership from a number of blue chips. On the Dow, General Motors (GM 25.95 -0.80) remains the day's worst performing component while Home Depot (HD 40.59 -0.91), up 10% since bottoming out on Oct. 5, has traded lower in sympathy to TOL's disappointing outlook. Of the 12 components trending higher, SBC Communications (SBC 23.65 +0.24), benefiting from reports that S&P will raise AT&T's debt ratings following SBC's acquisition, is the only one gaining more than 1.0%.NYSE Adv/Dec 1201/2025, Nasdaq Adv/Dec 1150/1814

2:30PM: Major averages show some resilience even as oil prices approach $60/bbl heading into the close of commodities trading. Perhaps the realization that prices have fallen 14% over the last month, due in part to milder weather forecasts alleviating concerns about rising demand for heating-fuel, has kept oil's modest recovery in check. NYSE Adv/Dec 1229/1959, Nasdaq Adv/Dec 1165/1779

[UpInArms]

59. closing numbers and blather

Dow 10,539.72 -46.51 (-0.44%)
Nasdaq 2,172.07 -6.17 (-0.28%)
S&P 500 1,218.59 -4.22 (-0.35%)
10-Yr Bond 4.565 -0.74 (-1.60%)

NYSE Volume 1,965,049,000
Nasdaq Volume 1,640,288,000

Close: Stocks closed lower across the board, as widespread profit-taking following four consecutive days of market gains was exacerbated by a warning from Toll Brothers (TOL 34.14 -5.27) that raised concerns about a possible end to the housing boom. Perhaps placing even more emphasis on TOL's disappointing FY06 guidance, which weighed heavily on everything from homebuilding and home improvement to construction materials and household appliances, was the absence of noteworthy economic data. To wit, Consumer Discretionary, which Briefing.com has had an Underweight rating on since April 2004, took the biggest hit. Despite a nine basis-point drop in the benchmark 10-yr note's yield, which benefited from strong anticipation for today's 3-yr note auction, the Financial sector went on the defensive. Freddie Mac's (FRE 60.72 -0.52) revised $220 mln profit reduction for the first half of 2005 coupled with consolidation in brokerage, bank and insurance stocks acted as the biggest restraining factors. Technology also languished as failed rebounds in the semiconductor and software groups left the sector struggling to remain break even for the year. On a positive note, Energy managed to recover some of Monday's 1.6% sell-off, taking advantage of strong Q3 earnings from Transocean (RIG 59.94 +1.22), one of Briefing.com's suggested holdings, and a rebound in oil prices. However, as one of only two sectors to close higher, an overall bearish sentiment echoed early concerns that the outlook for earnings growth may already be reflected in stock prices at current levels.DJTA -0.5, DJUA -0.2, DOT -0.2, Nasdaq 100 -0.1, Russell 2000 -0.8, SOX -0.2, S&P Midcap 400 -0.7, XOI +0.8, NYSE Adv/Dec 1247/2011, Adv/Dec 1157/1861