STOCK MARKET WATCH, Thursday 11 May

[ozymandius]

Thursday May 11, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 984 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1967 DAYS
WHERE'S OSAMA BIN-LADEN? 1667 DAYS
DAYS SINCE ENRON COLLAPSE = 1628
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 3
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 May 10, 2006

Dow... 11,642.65 +2.88 (+0.02%)
Nasdaq... 2,320.74 -17.51 (-0.75%)
S&P 500... 1,322.85 -2.29 (-0.17%)
Gold future... 705.70 +4.20 (+0.60%)
30-Year Bond 5.19% -0.01 (-0.19%)
10-Yr Bond... 5.13% UNCH (UNCH)






GOLD, EURO, YEN, Loonie and Silver


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

MARKETS WAIT FOR THE FED

Markets have been lackluster throughout the morning as traders await the announcement from the Federal Reserve later today. It is widely expected the FOMC will raise the fed-funds rate for the 16th consecutive time to 5.0%. The markets are really waiting for the accompanying statement to look for clues whether or not the Fed will change their language to imply a pause in rate increases. Most analysts are expecting the Fed to pause at 5% after today’s increase, but with the failing dollar they may have to continue higher.

In one of today’s Bloomberg articles they say a majority of Wall Street’s biggest bond traders believe the Fed will pause on rate hikes until at least August as they wait to digest more economic data. We are certainly getting mixed data from the economy with a rising stock market, higher interest rates, a slowdown in the housing market and sluggish wage growth. Commodity prices have been going through the roof and trade tensions are on the increase with China. Later today the Treasury Department will release their budget statement and comment on whether or not China is considered a “currency manipulator.”

-cut-

Inflation Drives Political Unrest

The rampant money inflation by the Fed is resulting in markets that are reacting to political developments all around the globe. The same Bloomberg article mentioned above states, “Copper has gained as labor disputes and production threats from Mexico to Indonesia have dented global stockpiles.” That is an understatement, as the real issue is too much cash chasing too little copper around the globe. The excess cash also continues to drive demand which exhausts the available supply. They talk about global “stockpiles” of copper, but then state, “Mine closures and declining ore grades have helped cut copper stockpiles to the equivalent of about three days of global consumption.” I would hardly call a three-day supply a stockpile!

-cut-

Wait Around For Nothing!

I will work to refrain from too much sarcasm, but in my opinion the changes in the statement from the Federal Reserve are just a big joke! This FOMC is absolutely handcuffed on what they can do. They really said nothing, because if they did they would face a further collapse of the dollar or they would face a collapse of housing and the economy. To stop rate increases right here would say, “Bye, bye dollar” and big rate increases would kill stocks, housing and the economy.

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

[ozymandius]

2. Today's Reports

8:30 AM Business Inventories Mar
Briefing Forecast 0.5%
Market Expects 0.5%
Prior 0.0%

8:30 AM Initial Claims 05/06
Briefing Forecast 310K
Market Expects 315K
Prior 322K

8:30 AM Retail Sales Apr
Briefing Forecast 0.9%
Market Expects 0.8%
Prior 0.6%

8:30 AM Retail Sales ex-auto Apr
Briefing Forecast 1.1%
Market Expects 0.9%
Prior 0.4%

[UpInArms]

22. Reports tumbling in:

8:29 AM ET 5/11/06 U.S. CONTINUING JOBLESS CLAIMS DOWN 49,000 TO 2.39 MLN

8:29 AM ET 5/11/06 U.S. 4-WEEK AVG. JOBLESS CLAIMS UP 2,500 TO 317,250

8:29 AM ET 5/11/06 JOBLESS CLAIMS IMPACTED BY GOVT. SHUTDOWN IN PUERTO RICO

8:30 AM ET 5/11/06 U.S. RETAIL SALES UP 6.6% YEAR-OVER-YEAR

8:29 AM ET 5/11/06 U.S. WEEKLY JOBLESS CLAIMS DOWN 1,000 TO 324,000

8:30 AM ET 5/11/06 U.S. APRIL GENERAL MERCHANDISE STORE SALES UP 0.8%

8:30 AM ET 5/11/06 U.S. APRIL RETAIL SALES EX-GASOLINE UP 0.1%

8:30 AM ET 5/11/06 U.S. APRIL GASOLINE SALES UP 4.6%

8:30 AM ET 5/11/06 U.S. APRIL AUTO SALES FALL 0.4%

8:30 AM ET 5/11/06 U.S. APRIL RETAIL SALES EX-AUTOS UP 0.7% VS. 0.8% EXPECTED

8:30 AM ET 5/11/06 U.S. APRIL RETAIL SALES RISE 0.5% VS. 0.7 EXPECTED

[UpInArms]

23. Retail sales nearly flat excluding gas

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BFCC886E3%2DCF21%2D415F%2DA18D%2DF2C8978C4BC8%7D&symbol=

WASHINGTON (MarketWatch) - U.S. retail sales increased 0.5% in April, but most of the increased spending was at the gas pump, the Commerce Department said Thursday.

Gasoline sales surged 4.6% in April as the price rose toward $3 a gallon.

Excluding gasoline sales, seasonally adjusted retail sales rose 0.1% in April. The figures are not adjusted for inflation.

Auto sales fell 0.4% in April. Excluding autos, retail sales increased 0.7%.

Economists were expecting a larger increase of about 0.7% for overall sales and 0.8% excluding autos, according to a survey conducted by MarketWatch.

In the past year, sales are up 6.6%. Real retail sales began the second quarter on a weak note, in line with forecasts that the economy would slow somewhat from the torrid 4.8% annual pace seen in the first quarter. Consumer spending grew at a 5.5% annual pace in the first quarter.

...more...

[AnneD]

34. Morning Marketeers,

:donut: and lurkers. I have a question. Are the sales of say...gas, measured in dollar paid or gallons sold. I get the impression that it is in dollars sold and they deduct a certain amount to mitigate the increased seasonal increases, but then exclude it from the final number anyway. I think those consumer spending number increases are just the inflationary cost. They also had to exclude auto sales to get a positive retail number, but deduct gas to keep form getting too big a number and expose the bogus nature of their calculations (they want to show an increase,but not too much). Have they always excluded auto sales and gas. I know when they calculate inflation they leave off food and gas. I think they cherry pick to have a performance that is always slightly better than last year.

And speaking of calculating...those new tax law the Senate pass are special. Teachers can't deduct the school supplies they buy for the class. Can't deduct sales, city or state taxes. But I hear you may be able to deduct KY jelly. Yes, it's called the 'Grease the wheels of the Government's Friends' deduction. Dang but we are on the move.

Happy hunting, watch out for the bears.

[UpInArms]

24. Initial Unemployment Claims @ 324,000 - last wk rev'd up 9K

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B8576F705%2DFA71%2D4D1F%2D9728%2D38F8586E43ED%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - First-time claims for state unemployment benefits stayed up around its highest level of the year on layoffs associated with a partial government shutdown in Puerto Rico, the Labor Department reported Thursday. The number of initial claims in the week ending May 6 fell only 1,000 to 324,000. Last week was the highest level since Nov. 19. The consensus forecast of Wall Street economists was for claims to fall by 6,000 to 316,000. Claims in the previous week were revised to an increase of 9,000 to 325,000 compared with the initial estimate of a rise of 5,000 to 322,000. Excluding Puerto Rico, initial claims would be in the low 300,000 level, a Labor Department official said.

[UpInArms]

38. Inventories rise 0.7% in March (expected 0.5% increase) Feb Inv rev'd up

10:00 AM ET 5/11/06 U.S. FEB. INVENTORIES REVISED TO UP 0.1% VS. 0.0%

10:00 AM ET 5/11/06 U.S. March inventories rise 0.7% - By Rex Nutting

10:00 AM ET 5/11/06 U.S. MARCH RETAIL AUTO INVENTORIES RISE 1.7%

10:00 AM ET 5/11/06 U.S. MARCH RETAIL INVENTORIES RISE 1%

10:00 AM ET 5/11/06 U.S. MARCH INVENTORY-SALES RATIO STAYS AT 1.26

10:00 AM ET 5/11/06 U.S. MARCH BUSINESS SALES RISE 0.7%

10:00 AM ET 5/11/06 U.S. MARCH INVENTORIES RISE 0.7% VS. 0.5% EXPECTED

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BF399FC9B%2D6448%2D466F%2DBC65%2DCB41B519ABD1%7D&symbol=

WASHINGTON (MarketWatch) - U.S. business sales and inventories each increased 0.7% in March, keeping stockpiles of unsold goods at very lean levels, Commerce Department data released Thursday show.

The inventory-to-sales ratio remained at 1.26 in March, just above the all-time low of 1.25 set in January. The typical business had about 38 days of sales on hand in the backroom.

Economists expected inventories to rise 0.5% in March, according to a survey conducted by MarketWatch.

Inventories increased an upwardly revised 0.1% in February.

In the past year, sales are up 7.7%, while inventories are up 4.2%. The figures are not adjusted for price changes.

Inventories thus remain very tight and could create potential bottlenecks for scarce goods. In the past decade, businesses have adopted new inventory techniques that have reduced the level of unsold goods on hand, cutting their costs and making them more flexible to meet changing demand.

<snip>

Much of the data in the report had been released previously. The one new bit of information was the 1% rise in retail inventories in March.

...more...
The downside of tight inventories is that businesses could lose sales if they can't deliver. Customers might have to pay more for scarce goods.

[UpInArms]

54. Natural-gas supply up 85 billion cubic feet: Energy Dept

10:32 AM ET 5/11/06 U.S. NATURAL GAS SUPPLY UP 85 BLN CUBIC FT: ENERGY DEPT

10:32 AM ET 5/11/06 JUNE NATURAL GAS FALLS 9C TO $6.81/MLN BTU AFTER $7 HIGH

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BA09E01AD%2D8ADB%2D4BDE%2D91D8%2D6E1E611BA764%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- U.S. natural-gas inventories rose 85 billion cubic feet for the week ended May 5, the Energy Department reported Thursday. Analysts at Global Insight expected an increase of 75 billion. Total stocks now stand at 1.989 trillion cubic feet, up 488 billion cubic feet from the year-ago level, and 714 billion cubic feet above the five-year average, the government data said. June natural gas was down 12 cents at $6.78 per million British thermal units after trading as high as $7 earlier.

[ozymandius]

3. Oil rises toward $73 on gasoline fears

SINGAPORE (Reuters) - Oil climbed toward $73 on Thursday as dealers fretted that strong U.S. gasoline demand and outages at two refineries may quickly drain rising inventories.

-cut-

U.S. inventory data on Wednesday showed gasoline stocks had risen by 2.4 million barrels, double expectations, but also that demand for the motor fuel was starting to crank up head of the peak driving season, which begins in two weeks.

"Gasoline demand is at its highest since August last year, before the hurricanes hit the U.S. It's significant because it shows that U.S. consumers are not so deterred by the high prices," said Dariusz Kowalcyzk, the chief investment strategist at Hong Kong-based CFC Securities.

"Demand for crude is also expected to rise as refineries come back into full operation and ramp up production for the summer. Although the stock data is certainly bearish, I believe the market has already priced that in."

more

[ozymandius]

4. Bolivia, Brazil Create Gas Commission

LA PAZ, Bolivia - Bolivia and Brazil will form a commission to discuss the implementation of Bolivia's decision to nationalize its natural gas industry, a move that raised tensions between the South American neighbors.

Energy officials from the countries met Wednesday night to discuss Bolivia's decision last week to set gas prices and transfer majority control of all energy operations to its state energy company.

In a statement after the meeting, officials from both countries said the Brazilian government "reiterates its absolute respect for the sovereign decisions taken by the government and people of Bolivia" in the nationalization decree.

They also agreed to create a high-level commission and three sub-commissions to determine the operating conditions for Brazil's state-run petroleum company, Petrobras, in Bolivia within 180 days.

more

[ozymandius]

5. Bush's legacy at the gas pump (opinion)

With little time left in office, President Bush needs a big foreign-policy success. Iraq may not be it. Rather, his legacy may lie in a new strategy for stable oil supplies. A superpower can't afford to be superdependent on fickle oil sources.

A near tripling of oil prices in three years, caused in part by political uncertainties in both troubled and troubling oil nations, has the US scrambling for such a strategy.

-cut-

That diplomatic scramble was on full display last week during a trip to oil-rich Central Asia by Dick Cheney. Not only did the American vice president use his travels to criticize Russia for using its energy exports as "tools of intimidation and blackmail," he embraced the authoritarian ruler of Kazakhstan. Mr. Cheney was seeking ways for the oil of that Central Asian giant to bypass the clutches of the Kremlin. His trip comes just months after a similar tour to the region by Ms. Rice.

-cut-

Most of the world's top petroleum exporters aren't models of democracy. They all are reaping a bonanza of cash from current oil prices to help perpetuate their power. Iran and Saudi Arabia, for instance, are incubators for terrorists. Yet the instability of their rulers, caused either by internal dissent or US pressure, is actually helping keep oil prices high.

http://www.csmonitor.com/2006/0509/p08s02-comv.html

[UpInArms]

28. June Crude Futures @ $73.17 bbl

8:58 AM ET 5/11/06 JUNE CRUDE FUTURES UP $1.04 AT $73.17 A BARRELL

[UpInArms]

41. June Crude @ $73.70 bbl - June NatGas @ $6.95 mln btus

10:09 AM ET 5/11/06 JUNE CRUDE JUMPS $1.57 TO A 1-WK HIGH OF $73.70/BRL

10:09 AM ET 5/11/06 JUNE NATURAL GAS UP 5C AT $6.95/MLN BTU AHEAD OF SUPPLY DATA

[54anickel]

46. Putin proposes creation of ruble-denominated oil, gas exchange

http://en.rian.ru/russia/20060510/47915635.html

MOSCOW, May 10 (RIA Novosti) - President Vladimir Putin said Wednesday that a ruble-denominated oil and natural gas stock exchange should be set up in Russia.

Speaking before both chambers of parliament, cabinet members, and reporters, Putin said: "The ruble must become a more widespread means of international transactions. To this end, we need to open a stock exchange in Russia to trade in oil, gas, and other goods to be paid for with rubles."

wee-bit more....

[AnneD]

76. He's GOT to be kidding....

:rofl::rofl::rofl::rofl:. That is the best one I have heard in a while. He's such a comedian. That may be one of the reasons they are siding with Iran.

[54anickel]

103. I don't think he has a sense of humor Anne. My guess is, he figures

as worthless as the buck is becoming , any currency ought to be "usable" at this point. I agree. As a matter of fact, at our next town board meeting I'm going to recommend the local merchants start accepting these:



At least they're in limited supply, based on the number of game owners we have in town. :evilgrin:

[AnneD]

105. Oh look...

we have another comedian :spray:. We can go back to pre us and print our own and do trade and barter. I'll swap you some cheese for some brisket or some 'maters.:evilgrin:

[happyslug]

119. Even Worse, it becomes a stated value of the Euro.

Remember Russia is the number one provider of Natural Gas to Europe and thus is paid in EUROS. Russia also sells a lot of his oil to Europe, priced in Dollars but invoiced in Euros. Once you have a set market for these Russian sold items, priced in a currency other than Dollars, the attack on the Dollar can begin. While the US can still try to overthrow Putin, he is is a much stronger position than Iran, while the Red Army is a shadow of what it was in the 1980s, it is still powerful enough to prevent any US invasion of Russia (Especially if Europe refuses the use of Bases for fear of a natural Gas Cutoff).

Putin then will have a currency that has a fixed value as to the EURO without the sacrifices Europe had to make to get the Euro started.

[UpInArms]

108. Russia not ready for WTO, congressional leaders say

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B8C12C440%2D2AE0%2D49CC%2DB896%2D7B21E96F0F0E%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- The White House should demand that Russia take steps to enforce intellectual property rights and open its markets to U.S. farm goods before backing Russia's entry into the World Trade Organization, top congressional leaders told President Bush in a letter released Thursday. "We fully support the goal of Russia's accession to the WTO on strong, commercially meaningful terms," the letter said. "Every prospective WTO member, however, must demonstrate its willingness, ability, and commitment to abide by WTO rules. Unfortunately, Russia has not yet done so." The letter was signed by Sens. Charles Grassley, R-Iowa, and Max Baucus, D-Mont., and Reps. Bill Thomas, R-Calif., and Charles Rangel, D-N.Y. The four men are the leading members of the tax committees that have jurisdiction over trade policies.

He started it when he hit me back!!!

[Bushwick Bill]

57. What happened to Nymex crude?

Nymex Crude Future 65.65 -6.48 -8.98 10:08
IPE Crude Future 73.64 1.20 1.66 10:28
Dated Brent Spot 73.14 1.04 1.44 10:38
WTI Cushing Spot 73.70 1.57 2.18 10:14
http://www.bloomberg.com/energy/

On edit. Check that. Back to 73.75.

[UpInArms]

109. June Crude closes @ $73.32 bbl - June Unl Gas @ $2.2196 gal

2:58 PM ET 5/11/06 JUNE CRUDE UP $1.19 TO CLOSE AT OVER 1-WK HIGH OF $73.32/BRL

2:58 PM ET 5/11/06 JUNE UNLEADED GAS UP 2.3% TO END AT $2.2196/GAL

[ozymandius]

6. Wall Street seen firm, retail sales data in focus

PARIS (Reuters) - Shares on Wall Street looked set for a higher opening on Thursday as investors take the Federal Reserve's more-hawkish-than-expected stance on interest rates as a sign the U.S. economy is still on a firm footing.

Economic data will hog the limelight, with the publication of monthly retail sales at 1230 GMT and business inventories at 1400 GMT giving investors clues on what the U.S. central bank's next move might be.

"In the coming month expect all the economic data to play a huge role in the direction of U.S. indices," said Angus Campbell, strategist at Finspreads in London.

more

[ozymandius]

7. What Will Fed Do After Next Rate Hike?

WASHINGTON - Pause: n. a temporary stop in action. Stop. v. to bring to an end. After a widely expected interest rate increase Wednesday, the Federal Reserve may opt to take a pause in its two-year rate-raising campaign.

-cut-

The Fed chief hasn't specified when the central bank might take a break from boosting rates. But many economists predict it will be soon — at the Fed's June 28-29 meeting. Others think it will be later this summer.

"Bernanke has to walk a tightrope between raising rates too much and slowing the economy or pausing too soon and letting the inflation monster out of the bag," said Greg McBride, senior financial analyst at Bankrate.com.

more

[54anickel]

37. The Little-Noticed `Yet' in the Fed's Statement

http://quote.bloomberg.com/apps/news?pid=10000039&refer=columnist_berry&sid=aPlI8h6bUNok

snip>

It was in the statement explaining what may come next that ``yet'' appeared, signaling that after boosting the target at 16 consecutive meetings the committee probably will take a pass late next month.

After the previous meeting on March 28, the statement said, ``The committee judges that some further policy firming may be needed to keep the risks to the attainment of both sustainable economic growth and price stability roughly in balance.''

Yesterday it read, ``The committee judges that some further policy firming may yet be needed to address inflation risks but emphasizes that the extent and timing of any such firming will depend importantly on the evolution of the economic outlook as implied by incoming information.''

In March, the FOMC didn't want to say flatly that it intended to raise rates at its next meeting. On the other hand, that was what it wanted financial markets to anticipate, and they did.

This time, saying that ``some policy firming may yet be needed'' is intended to tell the market two things. First, the committee doesn't think, at this point, that a rate increase will be needed on June 29. Second, even if there were no move then, it wouldn't rule out one or more increases later in the year.

Another Key

more...

[54anickel]

40. Fed Faces `Credibility Test' in Deciding on June Move

http://www.bloomberg.com/apps/news?pid=10000103&sid=ahBmWLGKrVC0&refer=us

May 11 (Bloomberg) -- A Federal Reserve interest-rate increase next month hinges on any further sign that inflation, now at the edge of the central bank's comfort zone, is accelerating.

``This is absolutely a credibility test,'' said John Herrmann, director of economic commentary in New York at Cantor Fitzgerald LP, the world's second-largest bond broker. ``They have to protect their reputation as an inflation-fighting machine.''

Three months into his term, Fed Chairman Ben S. Bernanke is confronted with surging oil and metals prices that threaten to push consumer prices higher across the board. At the same time, the central bank's own forecast calls for slower growth, a prediction that's yet to be borne out by economic reports.

snip>

``The Fed wants to make sure that it does not give the market any opportunity to find guidance in the statement where none was intended,'' said Louis Crandall, chief economist at Wrightson ICAP LLC in New York. ``Greater clarity might have been inappropriate.'' :eyes: Just admit it - The Fed's clueless

more...

[UpInArms]

43. Oh, 54anickel! You're too funny!

the words "credibility" and "Fed" just cannot be in the same sentence unless the word "lacking" is there too!

:rofl:

[54anickel]

48. The incredible, credibility lacking, Fed? The incredible, diabolical Fed?

I've got that stupid little egg jingle stuck in my noodle now.

[54anickel]

69. Who Has Read Ben Bernanke's Book?

http://www.gold-eagle.com/editorials_05/gharris051006.html

snip>

I have written this essay to examine a more mysterious side of Ben Bernanke. Is Bernanke Really An Inflation Hawk? I have painstakingly read some of his previous work in order to examine his mindset with regard to inflation. In 1999, before he got so involved in "public service", he co-published a 382 page book called "Inflation Targeting". I haven't seen any mention of this book in the thousands of financial articles I have read over the last few years. There are many nuggets in the book that have already foreshadowed some of the actions of the Fed. At the time he felt free to address things that he apparently no longer feels comfortable discussing now that he is the big cheese. Luckily for him, the US Financial press has thus far been too lazy to read a 382 page book on inflation targeting. Luckily for you, I have dissected this obtuse book with the tenacity of a four-year-old-boy searching for bugs under rocks in the back yard.

One of the most intriguing things I found in the book is Bernanke's discussion of M-3 statistics and the negative effects on public perception. It is a fact some central banks have targeted inflation by making public announcements targeting M-3 data as well as some version of the CPI. In theory this has some appeal because it is understood by many economists that an increase in the money supply will eventually lead to an increase in overall prices. (Common sense right!?). Bernanke explains that in the second half of 1991, the German Bundesbank was faced with an inverted yield curve at the same time as "GDP growth began to slacken"(sound familiar?!). The "problem", as Bernanke described it, was that M-3 growth accelerated as people shifted funds into time deposits to take advantage of lower short term rates. Bernanke notices that although the Bundesbank has been pretty successful in meeting its CPI targets over the past 15 years, it has consistently missed its M-3 targets. Bernanke reasons that "changes in the demand for money" make M-3 targeting a misleading distraction when trying to control CPI inflation while also managing the other goals (unemployment and growth). His takeaway from past central bank experiences is to not make public goals for M-3 growth. He says the relationships between M-3 growth and central bank goals are statistically insignificant. One of the main lessons that he takes away from other inflation targeting regimes is to not confuse the public by targeting money supply stats in conjunction with CPI stats.

Bernanke leaves no doubt that he thinks the public has to have faith that the Fed is serious about controlling inflation. He repeatedly emphasizes the importance of conveying to the public that they are serious about inflation, and he has thought of dozens of different methods of doing so. It has apparently never crossed his mind, however, that to really convince us that he is against inflation, he has to actually be against inflation.

In his book Bernanke talks about two reasons for targeting inflation at greater than 0%.

more...

[UpInArms]

72. thanks for that post, 54anickel!

it becomes more apparent by the day that the inedibility and incredibility of the incredible, inedible Fed is accompanied by smoke and mirrors and hiding buttons under shells.

:eyes:

[ozymandius]

8. Markets edgy as Fed signals interest rates may rise again

FINANCIAL markets reacted edgily last night after the US Federal Reserve opened the door to a pause in its sustained campaign of interest-rate rises but said that more increases may still be needed.

The Fed’s signal that it may now pause in its drive to tighten US monetary policy came as it raised its benchmark Fed Funds rate for a sixtenth consecutive time, by a quarter point, to a five-year high of 5 per cent.

But while the Fed’s statement last night boosted investors’ hopes that it may call a halt to further rate rises, markets were left nervous by a less clear cut signal than some had anticipated that rates are at, or close to, a peak.

more

[ozymandius]

9. Tax-cut plan: economic boon or deficit disaster?

WASHINGTON — By week's end, Republicans in Congress are expected to send President Bush a $69 billion package that will extend lower tax rates for investors and temporarily spare millions of middle-class Americans from a creeping alternative minimum tax.

It also has heated up a recurring debate: Have the president's tax cuts been the salvation of the U.S. economy, or will they combine with spending policies to sink it?

That debate has divided starkly along partisan lines, with Republicans crediting tax cuts, first enacted in 2003, with a surging economy, millions of new jobs and booming tax revenues. Democrats counter that the tax cuts favor wealthy investors, do not have economic benefits as great as advertised, and will reduce revenues precisely when commitments for Social Security and Medicare benefits explode.

Meanwhile, the House is preparing to raise the federal debt limit for the fifth time in four years and the second time this spring, this time to nearly $10 trillion. That's almost double the $5.7 trillion gross federal debt of fiscal 2001, when Bush took office. The Senate hasn't scheduled action on the debt limit, but many economists fear a looming debt crisis that could menace the U.S. economy.

http://seattletimes.nwsource.com/html/nationworld/2002986402_taxcuts11.html

[UpInArms]

16. Tax Benefits to the Rich and Patient

http://www.nytimes.com/2006/05/11/business/11cuts.html?ex=1305000000&en=c564d378bb0a551a&ei=5088&partner=rssnyt&emc=rss

As what may be the last major tax-cut bill from the Bush administration nears final approval in Congress, studies show that most of the benefits will flow to high-income Americans.

The Tax Policy Center, a nonprofit venture of the Urban Institute and the Brookings Institution, two policy and research groups in Washington, estimated yesterday that 80 percent of the tax savings would flow to the top 10 percent of taxpayers and that almost a fifth of the benefits will go to the top one-tenth of 1 percent.

The official estimate of the bill's cost, on Monday, was $69 billion. But this assumed that the tax breaks would be in place for only a year or two. If they were to continue for the next decade — which President Bush and his Republican supporters want — the cost would be more than 15 times as great, estimates by the Congressional Budget Office, an arm of Congress, showed.

<snip>

The other major provisions in the bill primarily benefit Americans with much larger incomes and a small number of multinational companies.



...more...

[UpInArms]

59. WP: Bush, GOP Congress Losing Core Supporters

http://www.washingtonpost.com/wp-dyn/content/article/2006/05/10/AR2006051002040.html?referrer=email

Disaffection over spending and immigration have caused conservatives to take flight from President Bush and the Republican Congress at a rapid pace in recent weeks, sending Bush's approval ratings to record lows and presenting a new threat to the GOP's 12-year reign on Capitol Hill, according to White House officials, lawmakers and new polling data.

Bush and Congress have suffered a decline in support from almost every part of the conservative coalition over the past year, a trend that has accelerated with alarming implications for Bush's governing strategy.

The Gallup polling organization recorded a 13-percentage-point drop in Republican support for Bush in the past couple of weeks. These usually reliable voters are telling pollsters and lawmakers they are fed up with what they see as out-of-control spending by Washington and, more generally, an abandonment of core conservative principles.

There are also significant pockets of conservatives turning on Bush and Congress over their failure to tighten immigration laws, restrict same-sex marriage, and put an end to the Iraq war and the rash of political scandals, according to lawmakers and pollsters.

<snip>

It is now apparent that this floor has weakened dramatically -- and collapsed in places.



...more...

[UpInArms]

63. Commentary: A bang not a whimper: Bush&#8217;s Endgame Strategy

http://www.globalresearch.ca/index.php?context=viewArticle&code=CAR20060511&articleId=2421

Two of America’s savants have uttered pronouncements about the final days of the presidency of George Walker Bush. In his magisterial statement succinctly titled, “Bush’s Thousand Days,” Arthur Schlesinger, Jr. pointed out that we have just crossed a significant date, for now less than one thousand days remain of the beleaguered Bush presidency. Schlesinger raises grave issues facing the deeply unpopular president. In his analysis of “The Passion of George W. Bush,” Sidney Blumenthal dubbed this darkening period the “endgame.” Taken together, these two essays present a disturbing image of a presidency in the throes of decline and desperation. These two essays urge us to consider the likelihood of a political collapse that could lead to disastrous consequences for America and Britain.

Blumenthal dissected the faded and now tattered dreams of the president and his wunderkind, Karl Rove. Gone with the wind is their vision of an Imperial America modelled on the pompous presidency of William McKinley, whose dream of the transcendence of American corporate monopolies and global military hegemony was thrown into the incinerator by FDR when he re-wrote the American social contract in the first one hundred days of the New Deal.

Yet, that aching nostalgia for an Imperial Presidency boldly governing a global American Empire did not die: it merely smouldered and rolled over in its grave, nosferatu, undead, unforgotten and lurking its next opportunity to sink its fangs into the jugular vein of destiny.

Under the darkness of the Vietnam nightmare, the Imperial Presidency revived and possessed the mind of Richard Nixon and his leading lieutenants, only to face the cruel dawn during Watergate, whereupon it crept back into its mouldy crypt, mounted its creaking catafalque and hid itself once again inside its dusty casket. This second un-death of the baroque vision of an American Empire in the Nixon era seared the minds and sealed the fates of its youngest and most ambitious protagonists: Dick Cheney, White House Chief of Staff under Ford, and Donald Rumsfeld, Ford’s unruly Secretary of Defense. Like bereft twins of Frankenstein, these two true believers in the myth of the Imperial Presidency presided over the reinvigoration of its corpse yet again under the neoconservative ascendancy of Bush 43 in 2001.

...more...

Ratings of Cheney, Rumsfeld Sinking to New Depths

Favorable ratings for both have fallen 30 points in four years

The sour public mood that has led to decreases in ratings of the president, Congress, and overall national satisfaction is seemingly sparing no one who is affiliated with the Republican Party. The public's ratings of Vice President Dick Cheney and Defense Secretary Donald Rumsfeld have hit new lows. Americans' views of key Bush adviser Karl Rove have also been increasingly negative. Very few Democrats or independents have favorable impressions of Cheney, Rumsfeld, or Rove.

...more, but for subscribers only...

[UpInArms]

75. PIEHOLE ALERT:

per KeepItReal and this DU thread (thanks :hi: ) :

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x2277170

CNN: Bush & Co to talk about USA Today's story on NSA's Phone Records At 12 PM EST...

On Edit:
Also Gen. Hayden cancels meeting with Congressfolks today with no explanation.

Watch for falling dollars and stocks :eyes:

[UpInArms]

81. PIEHOLE OPEN: LIES, SPIN AND COVERUPS SPEWING FORTH

12:04 PM ET 5/11/06 BUSH: U.S. NOT TROLLING THROUGH PRIVATE LIVES OF AMERICANS

12:03 PM ET 5/11/06 BUSH: AUTHORIZED INTELLIGENCE ACTIVITIES ARE ALL LAWFUL

[ozymandius]

10. UPDATE 2-Gold hits quarter-century high, platinum at record

SINGAPORE, May 11 (Reuters) - Gold rose around 1.6 percent to hit a quarter-century peak on Thursday before retreating, and platinum reached an all-time high of $1,275 on persistent speculative buying.

-cut-

"The major bull trend remains intact. We're looking at $900 to $1,000 sometime this year. The price seems to be more and more realistic," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

Gold hit a record high of $850 in January 1980.

Gold has risen more than 37 percent this year, and 63 percent since the start of 2005, as investors diversify into precious metals as a hedge against global tensions, including those over U.S.-Iran relations, high energy prices and uncertainty about the dollar.

more

[UpInArms]

27. June Gold Futures up $14.30 @ $720 oz

8:58 AM ET 5/11/06 JUNE GOLD FUTURES UP $14.30 AT $720.00 AN OUNCE

[UpInArms]

29. RBC Gold Predictions (ya think?)

9:01 AM ET 5/11/06 RBC UPS '06 AVE. GOLD PRICE TO $620/OUNCE FROM $550/OUNCE

9:00 AM ET 5/11/06 RBC CAPITAL SEES GOLD AT $800/OUNCE WITHIN 12 MONTHS

[UpInArms]

32. Gold hits $728 oz - Copper $4 lb

9:24 AM ET 5/11/06 GOLD TOUCHES INTRADAY HIGH AT $728 AN OUNCE

9:23 AM ET 5/11/06 COPPER CLIMBS TO RECORD ABOVE $4 A POUND

9:24 AM ET 5/11/06 PLATINUM SETS RECORD AT $1,299.80 AN OUNCE

[Roland99]

50. $728?!?!

:wow:

[happyslug]

112. The pre-1982 cents in my pockets are NOW worth 2.75 cents each.

$4 a pound equals per 25 cents per ounce (4/16). A pre-1982 US Cents weighs 3.04 grams (.11 of an Ounce), so any pre-1982 Cent you have in your pocket is now worth 2.75 Cents (25 cents per ounce times .11 of an ounce).

For converting between pounds and grams:
http://www.sciencemadesimple.net/weight.php

[54anickel]

44. Record high metals prices crimp market liquidity

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2006-05-10T134047Z_01_L1063417_RTRUKOC_0_US-MARKETS-METALS-LIQUIDITY.xml

LONDON (Reuters) - Leading base metals have repeatedly scored record highs this year, with copper, zinc, aluminum and nickel far exceeding expectations, but these high prices are hurting liquidity on the London Metal Exchange (LME).

Traders said rapid and unprecedented price moves are being seen more frequently now, but the amount of actual business is much less than when the markets were lower a year ago.

snip>

"There are times during the afternoon -- around 1400 to 1500 -- when there is hardly any liquidity, and that's when it can be driven quite sharply," another senior floor trader said.

Base metals, precious metals gold, silver and platinum, oil and some agricultural products like sugar have all been swept higher in a two-year commodity bull market, fueled by asset-switching buying from hedge, macro and pension funds.

"It is dangerous for the exchange in the long-term, but there is not a lot that they can do. The funds are the flavor of the month at the moment, but what happens when they are not," MacMillan added.

The almost unbroken trend of rising prices has made selling, apart from profit-taking, risky. Many short-sellers have been burned, having to cover at loss-making higher prices.

more...

[54anickel]

60. Coins cost more to make than face value

http://www.usatoday.com/money/2006-05-09-penny-usat_x.htm

snip>

The Mint estimates it will cost 1.23 cents per penny and 5.73 cents per nickel this fiscal year, which ends Sept. 30. The cost of producing a penny has risen 27% in the last year, while nickel manufacturing costs have risen 19%.

snip>

The Federal Reserve, which distributes money to banks, pays face value for coins. If a coin costs less to manufacture than the face value, the Mint makes a profit.

Last year, the Mint's coin-making profit was $730 million. Mint officials estimate the added penny and nickel expenses will reduce the Mint's profit this year by $45 million.

Coin compositions, which are set by Congress, have been changed in the past because of rising costs. The penny has been altered several times since it was first changed from pure copper in 1837 to add other metals.

But Rep. Joe Knollenberg, R-Mich., one of the letter's recipients, says Congress is unlikely to consider changes, given that the Mint is still making money on other coins.

more...

[OrangeCountyDemocrat]

67. All This Gold Talk Makes Silver Feel Lonely!

It's only up 60 cents, and is now over $15.

[OrangeCountyDemocrat]

71. 2 Ounces Of P*T Or 1 Ounce Of Gold?

P-- is about $360/ounce. Gold is $720.

The first is illegal, but can be generated from a seed, water & light.

The second is legal, but is limited and cannot be manufactured from thin air.

[UpInArms]

77. June Gold @ $723 oz - July Silver @ $14.93 oz - July Copper @ $3.915 lb

11:54 AM ET 5/11/06 JUNE GOLD CLIMBS $17.30 TO $723/OZ AFTER A $728 HIGH

11:54 AM ET 5/11/06 JULY SILVER UP 65C, OR 4.6%, AT $14.93/OZ

11:54 AM ET 5/11/06 JULY PLATINUM ADDS $34.30, OR 2.7%, TO $1,294/OZ

11:54 AM ET 5/11/06 JULY COPPER JUMPS 22.7C, OR 6.2%, TO $3.915/LB

[UpInArms]

94. Gold closes @ $721.50 - Silver @ $14.935 - Copper @ $3.923 lb

1:47 PM ET 5/11/06 GOLD FUTURES CLOSE AT ANOTHER NEARLY 26-YEAR HIGH

1:47 PM ET 5/11/06 JUNE GOLD UP $15.80, OR $2.2%, TO CLOSE AT $721.50/OZ

1:47 PM ET 5/11/06 JULY SILVER UP 65.5C AT $14.935 AFTER 25-YR HIGH OF $15.20

1:38 PM ET 5/11/06 COPPER FUTURES CLOSE AT ANOTHER RECORD

1:38 PM ET 5/11/06 JULY COPPER ENDS AT $3.923/LB, UP 23.5 CENTS, OR 6.4%

1:38 PM ET 5/11/06 JULY PLATINUM UP $35.90 TO END AT A RECORD $1,295.60/OZ

[ozymandius]

11. Loss at Federated; Deal for May Company Cited

Federated Department Stores, the owner of Macy's and Bloomingdale's, reported a fiscal first-quarter loss yesterday on expenses related to its $11 billion purchase of May Department Stores.

The net loss was $52 million, or 19 cents a share. Excluding expenses, the company earned 2 cents a share. Sales climbed 62 percent to $5.93 billion, but sales at stores open at least a year were unchanged, the worst performance in almost three years.

Markdowns at May stores and integrating the companies cost $81 million in the period. Federated is clearing out merchandise at the May stores that it is closing or converting to Macy's as part of the acquisition.

http://www.nytimes.com/2006/05/11/business/11shops.html

[UpInArms]

12. daily dollar watch

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

Last trade 85.02 Change +0.03 (+0.04%)

Dollar Unchanged as Fed and Treasury Delay the Inevitable

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Dollar_Unchanged_as_Fed_and_1147296722164.html

US Dollar – Compared to its open price at the onset of US trading, the EUR/USD is basically unchanged. We actually saw only a mild amount of volatility today despite two major events on the US calendar. The day has been interesting, but the price action less so. Broadly speaking the US dollar is weaker on the day, losing the most ground against the Japanese Yen. If we needed to sum up the day’s activity in one line, we would say that the US is delaying the inevitable. The Federal Reserve is still leaving the door open for more rate hikes, but injected more cautious wording while the US Treasury refrained from naming China as a currency manipulator but toughened up their criticism by calling for more rapid progress. Specifically, the Federal Reserve raised interest rates by a quarter of a point to 5 percent, marking their sixteenth consecutive rate hike. To the shock of the market, the Fed did not tone down the FOMC statement significantly. They repeated that "some further policy firming may yet be needed," but if you read carefully, you will notice that the word “yet” is new. The reason why the dollar gave back all of its initial gains is because the market is divided on what to think feel about this new word. As a sign of hesitancy some say that it means the Fed will raise rates in June but pause in May while others say that a June rate hike is unlikely. We think that the statement still has an air of hawkishness and suggests that even though we are close to end of the tightening cycle, today’s rate hike will probably not be the last. Inflation pressures are still hanging over the economy and traders also tend to forget that a weak dollar also boosts inflation pressures by making imports more expensive, so the Fed is walking on a very fine tightrope. There are still two more CPI readings till the June meeting which means that they opted to postpone the inevitable by giving themselves a chance to first reviews upcoming economic data. For the time being, as the Fed has said in their statement, the extent and timing of further increases will indeed be data dependent. As for the Treasury, it seems that politics outweighed economics. The positive comments on the initiatives and promises made by Chinese President Hu and Premier Wen suggest that the US is trying to play nice and gain political favor with China at this critical time. In line with our introduction of a third scenario in yesterday’s Daily Fundamentals, the US chose the “middle ground” and refrained from branding China as a currency manipulator but toughened up their criticism. They felt that China was making “far little progress” on exchange rates and that the Treasury will “closely monitor” any developments. Should China not deliver any further changes, they could very well still be named in November, especially if geopolitical tensions subside by that time. The muted reaction on today’s reports indicate that the US dollar has become very oversold and there may not be any buyers left in the market. This suggests that if retail sales comes in strongly tomorrow, we see a deep relief rally in the dollar.

...more...

DailyFX Instant Insight Update: Treasury Does Not Name China as Currency Manipulator

http://www.dailyfx.com/story/special_report/special_reports/DailyFX_Instant_Insight__Dollar_Rallies1147286036547.html

**Treasury Report Update:

As we accurately predicted, the Treasury opted for the "Middle Ground" in their FX report. They refrained from branding China as a currency manipulator, but harshened their stance on the country. They nodded to China's previous move on July 21 and the slight appreciation in the Yuan since 2005. Some positive comments were also made about initiatives and promises by Chinese President Hu and Premier Wen, suggesting that they may have been trying to gain political favor with China. Clearly politics is the bigger factor at this point.

However, as expected they appeased their political constituents by criticizing China for making "far too little progress" and that they will "closely monitor" any developments. Should China not deliver any more moves, they could still be designated in November. In the meantime. the dollar is rallying modestly as traders betting on China being branded cut losses.

Treasury Secretary Snow also reiterated the Administration's strong dollar policy, but judging from the government's protectionism measures, they are probably just paying lip service to a policy they have long not cared much for.

**Fed Comments:

The Federal Reserve delivered its much expected 25bp interest rate hike today, bringing rates up to 5 percent. To the shock of the market, the Fed did not tone down the FOMC statement significantly. They repeated that "some further policy firming may yet be needed" which suggests that Bernanke may be regretting his previous comments for a pause and probably feels that the dollar has sold off enough for the time being. Unfortunately traders tend to forget that a weak dollar also boosts inflation pressures by making imports more expensive, so the Fed is walking on a very fine tightrope. They are very close to being done with interest rate hikes but unfortunately today's rate hike is probably not the last. We still have two more CPI readings till the June meeting and as the Fed has said in their statement, the extent and timing of further increases will be data dependent. Should data worsen, the uses of the words "may yet" gives them flexible to pause if needed, but for the time being, they are still hawkish.

[UpInArms]

14. US says China not manipulator; wants currency rise

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=businessNews&storyID=2006-05-11T020000Z_01_N10193052_RTRUKOC_0_US-ECONOMY-TREASURY.xml

WASHINGTON (Reuters) - The Treasury Department ruled on Wednesday that China was not a currency manipulator, angering lawmakers who say Beijing keeps its yuan undervalued at a cost to Americans in lost jobs and rising deficits.

Treasury said Beijing was moving, albeit too slowly, on currency reforms.

"Given our strong disappointment and the importance of China to the world economy, the Treasury Department will closely monitor China's progress in implementing its economic rebalancing strategy...and continue actively and frankly to press China to quicken the pace of renminbi flexibility," the Treasury Department said in a semi-annual report on currency practices of key trading partners.

The reaction from Capitol Hill was hostile as lawmakers protested China floods U.S. markets with cheaply priced goods.

"Once again, the Bush administration is doing too little, too late. As the U.S. trade deficit with China piled up, the administration failed at every opportunity to shrink this growing figure," said Rep. Sander Levin, a Michigan Democrat who is a senior minority party member of the House Ways and Means Committee.

<snip>

"If we don't have action by September 30, we're going to vote and it will unleash forces that I think need not be unleashed," said Sen. Lindsey Graham, a South Carolina Republican.

...more...

[UpInArms]

26. Dollar dips after retail sales, jobless claims data

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B5BF1DABD%2D06E0%2D4154%2D9196%2DB554FCA8220D%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- The U.S. dollar took a hit against its major counterparts after weaker-than-expected retail sales data for April softened the interest rate outlook. The euro was up 0.1% vs. the dollar at $1.2765, but had been as low as $1.2682 in overnight trading due to disappointing first-quarter GDP data from Germany. Against the yen, the dollar was down 0.5% at 110.68. The U.S. Commerce Department said April retail sales rose 0.5%, and increased 0.7% excluding automobile sales, vs. expectations of a 0.7% rise in overall sales and a 0.8% gain excluding autos. In addition, first-time claims for weekly jobless benefits fell 1,000 during the week ending May 6, less than the 6,000 decline expected by economist. The Federal Reserve had indicated late Wednesday that it may continue on its path of raising interest rates, but only if warranted by upcoming data.

[UpInArms]

30. a peek at the falling dollar

Last trade 84.80 Change -0.19 (-0.22%)

Settle Time 15:00 Open 84.99

Previous Close 84.99 High 85.28

Low 84.66 2006-05-11 08:44:48, 30 min delay

[UpInArms]

35. here's an interesting chart

for visualization of the steep slide the buck is in:

http://quotes.ino.com/chart/?s=NYBOT_DX&v=dmax

and here's a peek at the pitiful buck

Last trade 84.67 Change -0.32 (-0.38%)

Settle Time 15:00 Open 84.99

Previous Close 84.99 High 85.28

Low 84.63 2006-05-11 09:55:00, 30 min delay

52wk High 92.63 52wk High Date 2005-11-16

52wk Low 84.37 52wk Low Date 2006-05-10

[UpInArms]

61. dollar dropping like a hot potato (no one wants to hold it any longer?)

Last trade 84.42 Change -0.57 (-0.67%)

Settle Time 15:00 Open 84.99

Previous Close 84.99 High 85.28

Low 84.38 2006-05-11 10:38:52, 30 min delay

[54anickel]

73. Oops, someone dropped it - below it's 52 week low now

Last trade 84.30 Change -0.69 (-0.81%)

Settle Time 15:00 Open 84.99

Previous Close 84.99 High 85.28

Low 84.21 2006-05-11 11:51:49, 30 min delay

52wk High 92.63 52wk High Date 2005-11-16

52wk Low 84.37 52wk Low Date 2006-05-10

[UpInArms]

83. smokin' hot potato - no one wants to hold - still falling

Last trade 84.25 Change -0.74 (-0.87%)

Settle Time 15:00 Open 84.99

Previous Close 84.99 High 85.28

Low 84.16 2006-05-11 12:42:13, 30 min delay

52wk High 92.63 52wk High Date 2005-11-16

52wk Low 84.37 52wk Low Date 2006-05-10

[UpInArms]

13. Right for the Wrong Reasons: Why Galbraith Never Got the Prize

http://www.nytimes.com/2006/05/11/business/11scene.html?ex=1305000000&en=d5b23cf0229dd747&ei=5088&partner=rssnyt&emc=rss

(free registration or try www.bugmenot.com)

THE Nobel award in economics is not given posthumously. So John Kenneth Galbraith, who died last month at 97, will never receive one. Yet Mr. Galbraith was the most widely read economist of the 20th century and was also considered one of the most influential.

<snip>

Although many economists shared Mr. Galbraith's skepticism about prevailing spending patterns, they were also skeptical of his explanation of the imbalance. According to standard economic models, consumers survey available goods, then select those that best suit their preferences. But in Mr. Galbraith's account, the arrow traveled in reverse: firms first decide which goods are most convenient to produce, and then employ marketing wizardry to persuade consumers to buy them.

Most economists readily conceded that firms would gladly exploit consumers in this fashion if they could, yet most also doubted that firms had the power to do so in the long run. Mr. Galbraith's account, they felt, gave short shrift to the inventiveness of greedy rival capitalists.

<snip>

Psychologists sometimes describe economists who pose such questions as having "high I.Q. but no clue." One of the most well-documented findings in behavioral economics, a new field at the intersection of psychology and economics, is that consumers are often not nearly as sophisticated as traditional economic models assume. Had Mr. Galbraith studied behavioral economics, he might have poked fun at his critics for suggesting that normal people give even fleeting thought to how their own frames of reference might be shifted by others' spending.

...more...

[AnneD]

36. I dont know about that quote

"Most economists readily conceded that firms would gladly exploit consumers in this fashion if they could, yet most also doubted that firms had the power to do so in the long run. Mr. Galbraith's account, they felt, gave short shrift to the inventiveness of greedy rival capitalists". I have felt pretty exploited over the last 5+ years. And at the moument, I see no end to it. It is hard to change the system when it is rigged against you.

[UpInArms]

39. What the current set of quack-onomists neglect to talk about is the

lack of actual competition that has been created by the M&As (mergers and acquisitions).

Then the complete propagandization of the media into a form of product placement and hype of the crap that they push.

jmho

:hi:

[AnneD]

47. ITA, UIA.

There use to be a barrier between the news, entertainment, and the news. Now it is a sieve. ABC and Disney for example. When a Disney movie is doing well in the box office-they report movie box office takes (that's not news-that's a promotion, unless they report it in a business program or an entertainment program). I can't tell you haw many times I see this in a news cast. I am old enough to remember when a news report was a news report-but my daughter doesn't understand what I am talking about.

[54anickel]

53. Surprised Quack-onomist....

http://www.galleryone.com/images/bullas/bullas%20-%20element%20of%20surprise,%20the.jpg

[KoKo]

106. Fascinating. I think what we've been seeing lately proved Galbraith

was correct. Mass marketing seems to decide what folks purchase today than best value.

[UpInArms]

15. Judge in Enron Case Delivers a Serious Blow to the 2 Defendants (LOL!)

http://www.nytimes.com/2006/05/11/business/businessspecial3/11enron.html?ex=1305000000&en=78faf99fe8ae3384&ei=5088&partner=rssnyt&emc=rss

HOUSTON, May 10 — The judge in the Enron trial dealt a serious blow on Wednesday to the two former chief executives accused of defrauding investors by agreeing to allow jurors to find both men guilty for consciously avoiding knowing about wrongdoing at the company.

Judge Simeon T. Lake III said in court that a draft version of the charge that will be read to the jurors on Monday includes a "conscious avoidance" or "deliberate ignorance" instruction for both Jeffrey K. Skilling and Kenneth L. Lay, the former Enron chief executives. The standard, also known as the "ostrich instruction," offers a lower burden of proof to find the men guilty of conspiracy and fraud related to the company's collapse in December 2001.

Outside legal experts said they expected Judge Lake to allow the "conscious avoidance" instruction for Mr. Lay, who some witnesses claimed consciously avoided acting on information about potential improprieties at the company.

<snip>

Judge Lake allowed the instruction after the government opposed a defense motion to keep it out. The government said in a filing with the court last week that both Mr. Lay and Mr. Skilling asserted the "ostrich defense" by claiming they knew of no wrongdoing other than the crimes committed by the chief financial officer, Andrew S. Fastow.

"There is overwhelming evidence to support an inference of deliberate indifference," Sean M. Berkowitz, the lead prosecutor and director of the Justice Department's Enron Task Force, wrote in the filing.

...more...

I guess there is a law for conscious stoopity. Maybe we could apply it to all the kool-aid drinkers :evilgrin:

[UpInArms]

17. UnitedHealth stock options subject of SEC inquiry

http://today.reuters.com/news/newsarticle.aspx?type=businessNews&storyid=2006-05-11T104329Z_01_WEN7467_RTRUKOC_0_US-UNITEDHEALTH-INQUIRY.xml&src=rss

NEW YORK (Reuters) - Health insurer UnitedHealth Inc. (UNH.N: Quote, Profile, Research) said on Thursday that the U.S. Securities and Exchange Commission is conducting an informal inquiry into its stock options granting practices.

UnitedHealth, in a filing with the SEC, said it could be subject to regulatory fines or penalties or other contingent liabilities, at the conclusion of the inquiry.

[UpInArms]

113. UnitedHealth says may restate results Stock-option practices could force

adjustments

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B1207F920%2DDD79%2D43D4%2D8ACC%2D54F31533FD3A%7D&symbol=

LOS ANGELES (MarketWatch) -- Controversial stock-option practices may force UnitedHealth Group Inc. to restate up to $286 million in net income over the last three years, the company said Thursday in a regulatory filing.

The health-insurance giant also said that the Securities and Exchange Commission is conducting an informal inquiry into its option-granting practices. The company has appointed a special committee and counsel to look into the matter, the filing added.

Shareholders have accused the company of granting options to Chairman and Chief Executive William McGuire and other executives at times when UnitedHealth shares were at depressed levels and ready to make a run.

<snip>

Minnetonka, Minn.-based UnitedHealth (UNH ) faces a rash of lawsuits over the practice, including six derivative complaints and one class action. Many of the complaints have been filed within the last two months.

<snip>

The result restatement could cut as much as $150 million in net income, or 11 cents a share, from UnitedHealth's 2005 results. Another 6 cents and 4 cents a share could be cut from profits for 2004 and 2003, respectively.

...more...

[UpInArms]

18. American International Group Q1 Profit Falls 16%

http://www.tradingmarkets.com/tm.site/news/TOP%20STORY/251660/

(RTTNews) - After the bell Wednesday, American International Group Inc. (AIG | charts | news | PowerRating) announced financial results for its first quarter, reporting that its net income fell nearly 16% from a year earlier despite strong performance in its general insurance unit. However, the company said that excluding net realized investment gains and losses and accounting changes net income rose 4.6%. AIG stated that the quarter was primarily affected by one-time after tax charges of $115 million relating to expenses from the SICO compensation plans and the Starr tender offer. In addition, results were negatively affected by an additional allowance for losses in credit card operations in Taiwan of $88 million before tax or $57 million after tax, and an adjustment relating to deferred advertising costs in General Insurance of $59 million before tax or $38 million after tax.

<snip>

In recent years, AIG has become embroiled in two investigations that have rocked in the insurance industry. In February, the company agreed to pay $1.6 billion to resolve regulators' charges that it used fraudulent accounting techniques to artificially bolster results and helped rig bids for commercial insurance. It was one of the largest settlements ever involving a single company.

The accounting probes precipitated the departure of long time AIG Chairman and Chief Executive Maurice Greenberg last year. The split was acrimonious and Greenberg is now competing with AIG for some types of insurance through C.V. Starr, a private firm he heads that used to have links with AIG.

...more...

[the other one]

19. Platinum at record highs

Gold hits quarter-century high, platinum at record

http://www.ndtvprofit.com/homepage/news.asp?id=248709

May 11, 2006

By Lewa Pardomuan

SINGAPORE (Reuters) - Gold rose around 1.6 percent to hit a quarter-century peak on Thursday before retreating, and platinum reached an all-time high of $1,275 on persistent speculative buying.

Fund selling linked to a resurgent dollar dragged gold down to as low as $704.25 an ounce at one stage in Asian trading, but dealers said buying interest resurfaced around that level.

Spot gold rose as high as $712.50 an ounce before easing to $708.60/709.60 by 0630 GMT, still up from $701/702 late in New York on Wednesday.

"The major bull trend remains intact. We're looking at $900 to $1,000 sometime this year. The price seems to be more and more realistic," said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong.

Gold hit a record high of $850 in January 1980.



more...

[UpInArms]

20. AT&T, Verizon and BellSouth's Jeopardy - $130K fine per day per violation

http://www.azcentral.com/business/articles/0510phonerecords-ON.html

excerpt:

The NSA's domestic program raises legal questions. Historically, AT&T and the regional phone companies have required law enforcement agencies to present a court order before they would even consider turning over a customer's calling data. Part of that owed to the personality of the old Bell Telephone System, out of which those companies grew.

Ma Bell's bedrock principle - protection of the customer - guided the company for decades, said Gene Kimmelman, senior public policy director of Consumers Union. "No court order, no customer information - period. That's how it was for decades," he said.

The concern for the customer was also based on law: Under Section 222 of the Communications Act, first passed in 1934, telephone companies are prohibited from giving out information regarding their customers' calling habits: whom a person calls, how often and what routes those calls take to reach their final destination. Inbound calls, as well as wireless calls, also are covered.

The financial penalties for violating Section 222, one of many privacy reinforcements that have been added to the law over the years, can be stiff. The Federal Communications Commission, the nation's top telecommunications regulatory agency, can levy fines of up to $130,000 per day per violation, with a cap of $1.325 million per violation. The FCC has no hard definition of "violation." In practice, that means a single "violation" could cover one customer or 1 million.

<snip>

"They told (Qwest) they didn't want to do that because FISA might not agree with them," one person recalled. For similar reasons, this person said, NSA also rejected Qwest's suggestion of getting a letter of authorization from the U.S. attorney general's office. A second person confirmed this version of events.

...more...

[UpInArms]

82. Dimson attempting to stem the tide against whorporate criminal deeds

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BEEBAA737%2D842E%2D460C%2D8921%2D00B6D9EFDA84%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- President Bush on Thursday said federal authorities are "not mining or trolling through the personal lives of millions of innocent Americans." The statement, delivered from the White House, neither confirmed nor denied a report by USA Today that AT&T Corp. (T 26.15, -0.02, -0.1% ) , Verizon Communications Inc. (VZ 32.02, -0.32, -1.0% ) , and BellSouth Corp. (BLS 33.81, +0.02, +0.1% ) turned over records of millions of phone calls to the National Security Agency after the Sept. 11, 2001, terror attacks. The report has drawn bipartisan concern on Capitol Hill. Senate Judiciary Committee Chairman Arlen Specter, R-Pa., has said he would call phone company executives to appear before the committee "to find out exactly what is going on."

So, do I get $130,000 for every time they send my information in to the NSA illegally?

I think I smell some class action lawsuits :eyes:

[UpInArms]

21. Treasuries slip ahead of retail sales report

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-11T121903Z_01_N11295074_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, May 11 (Reuters) - U.S. Treasury debt prices eased modestly on Thursday ahead of data on retail sales expected to show the economy is still growing quickly enough to warrant further interest rate hikes from the Federal Reserve.

The Fed boosted its target federal funds rate to 5 percent on Wednesday, leaving the door open to a pause in monetary tightening but also not discounting the possibility that it might resume rate increases later if inflation picks up.

With the Fed clearly uncertain about the near-term path for rates, investors said Treasuries could be in for a bumpy ride as economic data push sentiment back and forth.

"They don't know if they are going to pause or continue, and we don't know" said David Sloan, senior economist at 4Cast Ltd.

This indecision left bonds in a tight range, with benchmark 10-year notes <US10YT=RR> off 5/32 and yielding 5.15 percent, up from 5.13 percent on Wednesday.

Treasury was slated to sell $13 billion in 10-year notes later in the session.

...more...

[54anickel]

58. Volatility Our No. 1 Export

http://www.321gold.com/editorials/ackerman/current.html

Glance at the chart below and you might think it was a hot new IPO on the Dubai stock exchange, or perhaps a coffee drinker’s EKG after he’s downed a triple espresso. But both guesses would be wrong, for it is in fact a bar chart of yesterday’s price action in the 30-Year T-Bond future. Some old timers may remember the T-Bond contract as one of the deepest and most liquid securities in the world. But that was before U.S. Treasury debt became mere side-action for what has grown into a $210 trillion global derivatives market. For comparison, consider that in 2005 the world produced real goods and services valued at just 25 percent of that amount, or $54 trillion. Clearly, making money the old-fashioned way has gone out of style.



If the chart were an EKG, a diagnosis of atrial fibrillation would send the patient to the hospital pronto. But in the ethereal world of debt and derivatives, it is just a gratuitous blip signifying nothing more than that investors were agitated yesterday when the Fed announced it would raise administered rates to 5%. A moment’s reflection tells us that a little atrial fibrillation in the T-bond market is not such a bad thing, considering that the primary source of the world’s economic growth is now, indisputably, volatility.

[UpInArms]

68. Fed Openly Kiting Checks - Buying Coupons Outright (WTF!?!)

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-11T151136Z_01_N11242837_RTRIDST_0_MARKETS-FED-OPERATIONS-URGENT.XML

NEW YORK, May 11 (Reuters) - The Federal Reserve said on Thursday that it was buying coupons outright, adding permanent reserves to the banking system.

The Fed said it bought coupons with maturities ranging from Dec. 15, 2008 to Sept. 15, 2009 for a total par amount of $1.098 billion.

For details on the three exclusions see http://www.ny.frb.org/markets/omo/dmm/perm.cfm

Earlier on Thursday, the Fed added temporary reserves to the banking system via overnight and 14-day system repurchase agreements.

[54anickel]

129. Permanent reserves, doesn't that equate to monetizing the debt?

http://economistsview.typepad.com/economistsview/2005/09/what_is_debt_mo.html

[UpInArms]

70. U.S. Treasuries slip ahead of 10-year note auction

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-05-11T153302Z_01_N11404157_RTRIDST_0_MARKETS-BONDS-UPDATE-3.XML

NEW YORK, May 11 (Reuters) - U.S. Treasury debt prices fell on Thursday as dealers looked to cheapen longer-dated issues before an auction of $13 billion of 10-year notes.

Data on retail sales proved weaker than forecasts but not enough to alter the market's outlook on official interest rates.

"We have a 10-year auction today and I think there was some expectation that economic data could have been worse -- all of a sudden, there was some selling," said Ted Ake, head of bond trading with Mizuho Securities USA in New York.

Benchmark 10-year notes <US10YT=RR> slipped 7/32 and were yielding 5.16 percent, close to a four-year high and up from 5.13 percent Wednesday.

...more...

[UpInArms]

93. Treasury prices extend losses after 10-yr auction

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-11T171642Z_01_NYG000216_RTRIDST_0_MARKETS-BONDS-URGENT.XML

NEW YORK, May 11 (Reuters) - U.S. Treasury debt prices extended losses on Thursday after an auction of benchmark 10-year Treasury notes suggested weak foreign demand.

The $13 billion of new 10-year notes were sold at a high yield of 5.140 percent and a bid-to-cover ratio -- an indication of demand -- of 2.53, compared with an average of 2.30 for the new 10-year note auctions held in 2005.

The 10-year note fell 10/32 in price with its yield moving up to a four-year high of 5.18 percent, versus 5.16 percent shortly before the sale and from 5.13 percent late on Wednesday.

Indirect bidders, which include customers of primary dealers and foreign central banks took $3.95 billion about 30 percent of the auction. That compares with an average 40.6 percent from indirect bidders in these auctions in 2005.

[UpInArms]

25. Morgan Stanley to cut 500 broker trainees

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B50E72EAC%2DDB3D%2D436C%2DB1C1%2D23CCFD3108B5%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- Morgan Stanley (MS 65.21, -0.54, -0.8% ) is cutting 500 brokers in its training program, company officials confirmed Thursday. The brokers were "not tracking toward" success, said brokerage chief James Gorman in a memo to staffers. Gorman was hired last year by Chief Executive John Mack to revive a unit that underperformed its peers. Shares of Morgan Stanley fell 54 cents to $65.21 on Wednesday.

[UpInArms]

31. pre-opening blather

09:00 am : S&P futures vs fair value: +0.7. Nasdaq futures vs fair value: -0.2. Futures are off their best levels of the morning, as caution returns to the Treasury market to lift the yield on the 10-yr note back above 5.14%, and now point to more of a mixed start for stocks. News Corp. (NWS.A) more than doubling Q3 (Mar) profits and doubling its buyback program to $6 bln may offer some support for blue chips, but with earnings season basically coming to a close, the market’s focus shifting to "incoming data" is leaving investors somewhat hesitant to look for bargains in recently underperforming areas such as tech.

08:33 am : S&P futures vs fair value: +1.7. Nasdaq futures vs fair value: +1.8. Futures indications improve slightly following economic data and now suggest a slightly higher open for the indices. April retail sales rose 0.5% (consensus 0.8%) and sales, ex-autos, rose 0.7% (consensus 0.9%); both were less than expected, underscoring that consumer spending remains solid but not growing too fast to raise inflation concerns. Initial claims fell 1,000 to 324K (consensus 315K). Bonds have also improved, turning positive across the yield curve, as the 10-yr note is up 1 tick to yield 5.11%.

08:00 am : S&P futures vs fair value: -0.1. Nasdaq futures vs fair value: -1.0. Futures versus fair value are signaling another sluggish start for the cash market. While a report at 8:30 ET may show that retailers had their largest sales gain in three months, the data come just a day after the Fed left the door open for more rate hikes should incoming data suggest strong economic growth will lead to inflationary pressures.

[UpInArms]

33. 9:43 EST opening with a thud

Dow 11,621.92 -20.73 (-0.18%)
Nasdaq 2,316.02 -4.73 (-0.20%)
S&P 500 1,321.85 -1.00 (-0.08%)
10-Yr Bond 5.147 +0.22 (+0.43%)

NYSE Volume 150,800,000
Nasdaq Volume 166,139,000

[UpInArms]

42. Goldman Sachs/Merrill Lynch: New arrest coming in insider trading probe

The headline stenographers are at it again :grr:

They say "Croatia" so that no one will think that this is a US WHORPORATE TRADE BIZ bullshit problem that is systemic throughout the corrupted marketplace :mad:

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-11T140415Z_01_N11170310_RTRIDST_0_CRIME-INSIDERTRADING-ARREST.XML

NEW YORK, May 11 (Reuters) - Federal prosecutors plan to announce on Thursday a new arrest in an insider trading ring involving a retired Croatian underwear factory worker.

The arrest is to be announced at noon EDT (1600 GMT) in New York, according to Michael Garcia, the U.S. attorney in Manhattan. Spokeswoman Heather Tasker declined to provide further details.

Last month, prosecutors arrested a bond analyst with Goldman Sachs Group Inc. (GS.N: Quote, Profile, Research), Eugene Plotkin, and an investment banker with Merrill Lynch & Co. (MER.N: Quote, Profile, Research), Stanislav Shpigelman.

Plotkin is accused of being the co-leader of a $6.7 million insider trading ring that traded off advance copies of BusinessWeek magazine and tips from Shpigelman.

The arrests broadened a case that began in August 2005 when regulators grew suspicious of options trading profits by a 63-year-old Croatian retiree, Sonja Anticevic.

...more...

[UpInArms]

45. 10:17 EST still bleeding on the floor

Dow 11,593.50 -49.15 (-0.42%)
Nasdaq 2,308.48 -12.26 (-0.53%)
S&P 500 1,318.46 -4.39 (-0.33%)
10-Yr Bond 5.157 +0.32 (+0.62%)

NYSE Volume 428,049,000
Nasdaq Volume 433,691,000

10:00 am : Major averages extend their reach into negative territory as eight out of ten economic sectors now trade lower. Follow-through consolidation in semiconductor has left Technology as the most influential leader to the downside again. The absence of leadership from Financial, following a Q1 earnings disappointment from American International Group (AIG 64.36 -2.18) and amid further deterioration in Treasuries lifting the cost of borrowing, has also weighed on the proceedings. Energy and Materials, however, are extending their double-digit year-to-date gains as the two best performing sectors in 2006 amid further appreciation in commodity prices across the board. DJ30 -51.99 NASDAQ -12.57 SOX -0.9% SP500 -4.11 XOI +0.7% NASDAQ Dec/Adv/Vol 1437/996/299 mln NYSE Dec/Adv/Vol 1403/1160/196 mln

09:40 am : Market opens with little fanfare as further analysis of this morning's weaker than expected data underpins a sense of caution. April retail sales rose 0.5% (consensus 0.8%) and sales, ex-autos, rose 0.7% (consensus 0.9%). Both figures came in less than expected, initially improving early sentiment. However, since steady growth in consumer spending keeps economic growth on a strong growth path, and the Fed remains focused on "incoming data" to determine Fed policy, uncertainty as to whether or not a pause is in the cards at the next FOMC meeting has sidelined buyers in the early going. DJ30 -15.70 NASDAQ -3.99 SP500 -0.88 NASDAQ Vol 134 mln NYSE Vol 68 mln

but I am certain that they will remember at some point the market is in the "rally" mode and it will recover nicely :eyes:

[Roland99]

49. Is there a chart showing historical daily Adv/Dec numbers?

Actually heard Jim Cramer, I think it was him, of CNBC saying that the market rise is not a broad event. Couldn't believe my ears that someone from CRNC was saying that the market rise was a selective event.

[Roland99]

51. 10:30am EDT - Tourniquet still not applied

DJIA 11,578.62 -64.03 -0.55%
Nasdaq 2,304.55 -16.19 -0.70%
S&P 500 1,317.02 -5.83 -0.44%
Dow Util 406.01 -2.69 -0.66%
NYSE 8,607.33 -24.26 -0.28%
AMEX 2,036.94 -4.70 -0.23%
Russell 2000 772.42 -3.52 -0.45%
Semcond 501.62 -5.43 -1.07%
Gold future 721.00 +15.30 +2.17%
30-Year Bond 5.23% +0.04 +0.73%
10-Year Bond 5.15% +0.03 +0.55%

[stop the bleeding]

52. Morning Everyone - Gold - 721 $$!!!

Lucky for me things went a little different from the overall market this morning

[54anickel]

55. August 15, 1971: Inflation Unleashed

So what have we got in the hat for our next trick?

http://www.321gold.com/editorials/barisheff/barisheff051106.html

The general public, the media and most financial observers were largely unaware of the momentous event that took place on August 15, 1971. However, the implications of that event have had an enormous impact on global financial conditions ever since. On that date, US President Richard Nixon "closed the gold window". In essence, this meant the US would no longer honour the Bretton Woods Agreement of 1944, which made the US dollar the world's reserve currency, and allowed other countries to convert their US-dollar holdings into gold. In simple terms, the US defaulted. Those who may have glanced at the announcement buried within the pages of their daily newspaper were unlikely to have understood the implications for their financial future.

Under Bretton Woods, there was some control over the money supply since other currencies were convertible into US dollars, and the dollar itself was convertible into gold. With the demise of Bretton Woods, the entire world found itself on a monetary system backed by nothing more than the faith and credit of individual governments for the first time in history - a pure fiat system. This meant there were no longer any restraints on the amount of money that individual governments could create at will. As a result, a flood of paper money was unleashed globally, a trend that has increased exponentially over recent years.

The official justification for Nixon's action was that foreign central banks were getting nervous about the dollar's strength caused by a growing US federal budget deficit, and were converting US dollars into gold in increasing amounts. The US gold reserves had declined from a peak of 21,682 tonnes in 1948 to 15,821 tonnes by 1960. By the time Nixon closed the gold window, US reserves had dropped below 8,500 tonnes. Nixon could not risk any further depletion of US gold reserves.

As a consequence of Nixon's move, the US dollar declined against most currencies over the following decade, and declined 95% against gold as the price of gold shot up from *$35 per ounce to a high of $850 per ounce in 1981. The situation finally stabilized when the US Federal Reserve raised interest rates to 18%, halting further declines in the dollar and triggering a 20-year bear market in gold.

more...

[UpInArms]

56. 10:51 EST Looks like it hit a vein - blood flowing freely

Dow 11,559.00 -83.65 (-0.72%)
Nasdaq 2,293.78 -26.97 (-1.16%)
S&P 500 1,313.94 -8.91 (-0.67%)
10-Yr Bond 5.151 +0.26 (+0.51%)

NYSE Volume 675,062,000
Nasdaq Volume 676,583,000

10:30 am : Market continues to weaken as sellers remain in control of the early action. Separately, investors have recently sifted through the day's last economic release. March business inventories rose 0.7% (consensus 0.5%) as the inventory-to-sales ratio remained at 1.26, still near the all-time low of 1.25 set in January. Retail inventories (the only unknown) showed a strong 1% gain, but since that was not a big enough swing to change the aggregate inventory profile and affect the GDP outlook, the market has basically ignored the report.DJ30 -62.93 NASDAQ -15.81 SP500 -5.75 NASDAQ Dec/Adv/Vol 1731/926/506 mln NYSE Dec/Adv/Vol 1701/1151/350 mln

[Roland99]

64. 11:29am EDT - Wasn't a vein. It was an artery!

"Catch me I'm faaaalling."

DJIA 11,532.35 -110.30 -0.95%
Nasdaq 2,284.07 -36.67 -1.58%
S&P 500 1,311.17 -11.68 -0.88%
Dow Util 404.56 -4.14 -1.01%
NYSE 8,575.84 -55.75 -0.65%
AMEX 2,026.84 -14.80 -0.72%
Russell 2000 767.19 -8.75 -1.13%
Semcond 495.18 -11.87 -2.34%
Gold future 720.00 +14.30 +2.03%
30-Year Bond 5.24% +0.05 +0.93%
10-Year Bond 5.16% +0.04 +0.72%

[54anickel]

62. On watch for the next LTCM (50/50 chance)

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BDA520BF5%2D1170%2D4CF0%2D8381%2D8EEF45655B05%7D&siteid=yhoo

snip>

Bridgewater also tried to show through a sophisticated analysis that hedge funds do tend to march in lockstep. That means, paradoxically, that they are vulnerable to the same things: "tight credit, widening credit spreads, and falling equity markets."

Bridgewater's summary: "We estimate that an unfavorable environment, in degrees comparable to 1994, 1998, and 2000/01 will cost ...equally to about 2/3 of the S&L crisis and twice the size of the Mexican default in 1994 - i.e. it is material, but not system threatening."

That's the good news. The bad news: "'the system can withstand a moderate economic crisis (like those that occurred post-1993) but not a major one (like 1974)."

snip>

And then there's the REALLY bad news: Bridgewater also expects a major international system crunch exactly like the collapse of the fixed exchange rate Bretton Woods system, which lead directly to the inflationary crisis of 1974. See my March 16 column

Wednesday morning, Bridgewater's Daily Letter was headlined, "The Tremors Before the Big One" and concluded: "We believe the odds of a dollar/ U.S. debt crisis in the next twelve months are elevated (say 50 percent)."

more...check out the closing comments on Chopper Ben.

[UpInArms]

65. 11:30 EST still dropping - now triple digit losses

Dow 11,531.95 -110.70 (-0.95%)
Nasdaq 2,283.81 -36.94 (-1.59%)
S&P 500 1,310.90 -11.95 (-0.90%)
10-Yr Bond 5.157 +0.32 (+0.62%)

NYSE Volume 935,913,000
Nasdaq Volume 951,881,000

11:00 am : The bottom continues to fall out of the market as the Nasdaq is now down 1.2% in just an hour and a half of trading while broad-based consolidation is keeping the Dow and S&P not far behind. Technology remains the biggest drag on stocks as this morning's 1.7% decline has now taken the influential sector into negative territory for the year. Inflation concerns fueled in part by record prices across the commodity complex, which initially provided support for Energy and Materials, continue to weigh on sentiment; but both sectors too have succumbed to profit-taking. Not even the defensive nature of Consumer Staples has attracted buyers as a bearish bias remains firmly intact. DJ30 -94.70 NASDAQ -27.18 SOX -1.7% SP500 -9.08 NASDAQ Dec/Adv/Vol 1907/842/726 mln NYSE Dec/Adv/Vol 1845/1115/497 mln

[Roland99]

66. SemCond down, what, nearly 5% since yesterday?

[Roland99]

80. 12:35pm EDT - I don't think the faeries are gonna show today

DJIA 11,515.14 -127.51 -1.10%
Nasdaq 2,281.86 -38.88 -1.68%
S&P 500 1,308.21 -14.64 -1.11%
Dow Util 402.53 -6.17 -1.51%
NYSE 8,550.87 -80.72 -0.94%
AMEX 2,023.20 -18.44 -0.90%
Russell 2000 762.20 -13.74 -1.77%
Semcond 495.63 -11.42 -2.25%
Gold future 724.70 +19.00 +2.69%
30-Year Bond 5.23% +0.05 +0.87%
10-Year Bond 5.16% +0.03 +0.62%

[UpInArms]

74. Have you been wondering why the music on the radio is so shitty?

Vivendi unit in $12 mln Spitzer payola settlement

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-11T153241Z_01_N11241568_RTRIDST_0_MEDIA-UNIVERSAL-SPITZER-URGENT.XML

NEW YORK, May 11 (Reuters) - A unit of Vivendi Universal (VIV.PA: Quote, Profile, Research) has agreed to pay $12 million to settle charges by New York Attorney General Eliot Spitzer that it made secret payments to radio stations in exchange for airplay, Spitzer said on Thursday.

Spitzer said the unit, UMG Recording Inc. (Universal), agreed to stop making payments and providing gifts to stations and their employees in return for programming of songs by some of its artists, including Nick Lachey, Lindsay Lohan, Brian McKnight, Ashlee Simpson and Big Tymers.

Universal's strategy included outright bribes, payments to cover expenses and contest giveaways, the use of middlemen as conduits for payments, and the purchase of "spin programs" or "time buys" under the guise of advertising, Spitzer said.

...more...

UIA to Eliot Spitzer: :yourock:

[Roland99]

78. Don't be dissin' on the Linds...

:rofl:

[AnneD]

86. How else could they explain

the short play list and shitty songs. Ipods are the wave of the future in music and internet the marketing. Speaking of which...as the wife of a musician, I'd like to encourage you to support your local musicians. See a show, and if you really like it-buy a CD or tee. Before they became famous I have seen: Selina, The Dixie Chicks, Kenny Chesney, Clint Black, and Lyle Lovett. There are others that escape me for the moment. There are many more that are good musicians I have seen that just haven't had the breaks yet.

[TrogL]

88. Then make the shows affordable

I like to watch local bands, but I also like to see big-name tours.

However, ticket prices have become totally unreasonable.

Arrowsmith/Cheap Trick was through recently and tickets started at CAN $135.

There's absolutely no reason for it. Their gear has been paid for for decades. They've got a loyal fan base.

[AnneD]

107. Support the LOCAL musicians....

Hubby charges $10 at a performance and gets half and venue gets half. He preforms at weddings, memorials, etc and those are about $100 per hour. And I can't tell you the number of time he plays gratis for friend, political fundraisers, etc. All of those prices are very reasonable. We really make our money on tours in Europe.

[TrogL]

79. Loonie Watch

Highlights

Current:



30-day and 90-day:



Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.H06&v=s

Current TSE



Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2006-04-10 Monday, April 10 0.872144 USD
2006-04-11 Tuesday, April 11 0.872829 USD
2006-04-12 Wednesday, April 12 0.871156 USD
2006-04-13 Thursday, April 13 0.868508 USD
2006-04-14 Friday, April 14 0.868583 USD
2006-04-17 Monday, April 17 0.87321 USD
2006-04-18 Tuesday, April 18 0.87558 USD
2006-04-19 Wednesday, April 19 0.87974 USD
2006-04-20 Thursday, April 20 0.878272 USD
2006-04-21 Friday, April 21 0.879353 USD
2006-04-24 Monday, April 24 0.879275 USD
2006-04-25 Tuesday, April 25 0.883626 USD
2006-04-26 Wednesday, April 26 0.887233 USD
2006-04-27 Thursday, April 27 0.890076 USD
2006-04-28 Friday, April 28 0.892618 USD
2006-05-01 Monday, May 1 0.898473 USD
2006-05-02 Tuesday, May 2 0.903424 USD
2006-05-03 Wednesday, May 3 0.903179 USD
2006-05-04 Thursday, May 4 0.903669 USD
2006-05-05 Friday, May 5 0.903261 USD
2006-05-08 Monday, May 8 0.899604 USD
2006-05-09 Tuesday, May 9 0.907276 USD
2006-05-10 Wednesday, May 10 0.908678 USD



Current values

Last trade 0.9110 Change +0.0020 (+0.22%)
Previous Close 0.9089 Open 0.9074
Low .9070 High 0.9121


Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The June Canadian Dollar was lower overnight as it consolidates some of this spring’s rally. The daily ADX (a trend-following indicator) is neutral to bullish hinting that a short-term top might be in or is near. Closes below the 10-day moving average crossing at .9037 would signal that a short-term top has been posted. Overnight action sets the stage or a lower opening in early-day session trading.


Analysis

And we're off to the races again.

The loonie's taking off like a rocket (at least compared to the greenback) again.

But if you look at the main site (below) you'll see it's been losing against most other currencies. Usually when that happens, investors are afraid that the Canadian economy is too closely tied to the disaster about to happen down south.

[Name removed]

90. Deleted message

Message removed by moderator. Click here to review the message board rules.

[TrogL]

102. Am I using the right figures?

If you look here, I've been quoting from the CD.M06 figures but there's also CD.Y$$ but the latter chart doesn't seem to get updated as often.

Which should I be using?

[ozymandius]

84. Today's numbers make a booger look like a dozen roses.

12:49
Dow 11,520.02 -122.63 (-1.05%)
Nasdaq 2,284.53 -36.22 (-1.56%)
S&P 500 1,308.99 -13.86 (-1.05%)
10-Yr Bond 51.59 +0.34 (+0.66%)
NYSE Volume 1,357,529,000
Nasdaq Volume 1,334,282,000

Just checkin' in. We're as busy as the NYSE floor at the moment.

Ozy :hi:

[saigon68]

85. Thanks for the update

We lurkers appreciate what you and your "Crew" do for us :-) :-) ;-)

[Haole Girl]

87. Dow drops 100 points!

http://money.cnn.com/2006/05/11/markets/markets_newyork/index.htm?cnn=yes

(sorry if this has already been posted)

[skids]

89. ...while the dollar was falling, no less...

...of course we never bother to factor in the value of a highly volatile dollar when looking at the pretty charts... if they are going up, it's a rally, dammit! :eyes:

[KoKo]

96. CNBC says Tech ETF's responsible...wonder if it has something to do with

USA TODAY DataMining revelations that broke this morning. Who was responsible for all that software and techno stuff that allowed every phone company except Quest to spy on us... :shrug:

[UpInArms]

91. 1:24 EST blood still flowing - no tourniquet in sight

Dow 11,507.88 -134.77 (-1.16%)
Nasdaq 2,278.98 -41.77 (-1.80%)
S&P 500 1,306.87 -15.98 (-1.21%)
10-Yr Bond 5.155 +0.30 (+0.59%)

NYSE Volume 1,531,990,000
Nasdaq Volume 1,486,651,000

1:00 pm : More of the same for stocks as a bearish bias remains firmly intact. As reflected in the A/D line, decliners on both the NYSE and Nasdaq still outpace advancers by an almost 3-to-1 margin. A more than 4-to-1 ratio of down to up volume on the Nasdaq further underscores the lack of enthusiasm, especially for tech stocks this week. Unfortunately for the bulls, above average volume on the Composite provides even more conviction behind the negative tone on the tech-heavy index. DJ30 -111.82 NASDAQ -35.78 SP500 -13.10 NASDAQ Dec/Adv/Vol 2271/684/1.36 bln NYSE Dec/Adv/Vol 2333/806/988 mln

12:30 pm : Broad-based weakness continues to pressure equities as all three major averages are now down more than 1.0%. Even though HD, HON and MRK have recently joined AA and JNJ to the upside on the Dow, the index is experiencing its biggest one-day decline since February. AIG's 4.7% drubbing continues to be the biggest drag, as evidenced by the influential Financial sector now down 1.2% at its lowest levels of the day, while one the Dow's best performing stocks of late -- GM -- is consolidating some of the 16% it had gained so far this week before today's 3.9% slide.DJ30 -124.39 NASDAQ -38.54 SP500 -14.11 NASDAQ Dec/Adv/Vol 2215/698/1.26 bln NYSE Dec/Adv/Vol 2245/867/894 mln

[stop the bleeding]

92. bleeding like a pig ---

squeal piggy squeal !!!!

[Roland99]

95. 2:04pm EDT - Faeries? Is that you? I can barely see you.

DJIA 11,521.88 -120.77 -1.04%
Nasdaq 2,281.23 -39.51 -1.70%
S&P 500 1,309.11 -13.74 -1.04%
Dow Util 403.96 -4.74 -1.16%
NYSE 8,554.00 -77.59 -0.90%
AMEX 2,020.12 -21.52 -1.05%
Russell 2000 761.80 -14.14 -1.82%
Semcond 496.01 -11.04 -2.18%
Gold future 722.00 +16.30 +2.31%
30-Year Bond 5.24% +0.05 +0.93%
10-Year Bond 5.16% +0.04 +0.72%

[UpInArms]

101. 2:21 EST faeries appear to be faint-of-heart today

Dow 11,513.30 -129.35 (-1.11%)
Nasdaq 2,280.64 -40.10 (-1.73%)
S&P 500 1,307.87 -14.98 (-1.13%)
10-Yr Bond 5.166 +0.41 (+0.80%)

NYSE Volume 1,786,489,000
Nasdaq Volume 1,709,301,000

2:00 pm : Little changed since the last update as the major averages continue to vacillate in roughly the same ranges well below the flat line. Meanwhile, gold futures have closed up $16.30 at $722 an ounce on the COMEX, up 2.3% to a new 26-year high. Even though the stock market has another two hours left in the trading day, the inflation concerns that record high commodity prices continue to have on the market have underpinned a sense of apprehension throughout the market that will carry into the close of trading.DJ30 -131.11 NASDAQ -42.56 SP500 -15.31 NASDAQ Dec/Adv/Vol 2362/658/1.62 bln NYSE Dec/Adv/Vol 2435/760 /1.19 bln

[Roland99]

104. Wings were breaking under the strain

[54anickel]

97. Wonder what prompted that 1:00 spike in the bond yields

10 year http://finance.yahoo.com/q/bc?s=%5ETNX&t=1d

Index Value: 51.70
Trade Time: 1:52PM ET
Change: 0.45 (0.88%)
Prev Close: 51.25
Open: 51.49
Day's Range: 51.17 - 51.79
52wk Range: 3.80 - 5.17



30 year http://finance.yahoo.com/q/bc?s=%5ETYX&t=1d

Index Value: 52.40
Trade Time: 1:54PM ET
Change: 0.52 (1.00%)
Prev Close: 51.88
Open: 52.12
Day's Range: 51.84 - 52.53
52wk Range: 4.15 - 5.26

[ozymandius]

98. 2:20

ow 11,513.63 -129.02 (-1.11%)
Nasdaq 2,280.52 -40.23 (-1.73%)
S&P 500 1,307.92 -14.93 (-1.13%)
10-Yr Bond 51.66 +0.41 (+0.80%)
NYSE Volume 1,782,585,000
Nasdaq Volume 1,704,725,000

[Roland99]

99. Fristian/Snow/McConnell spew

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x1157890

[54anickel]

100. Bankruptcy filings soaring again

http://moneycentral.msn.com/content/Banking/bankruptcyguide/P143823.asp

It looks as if last year's reform law did not really stem the enormous flood of bankruptcies after all. Here are the states with the highest bankruptcy rates.

By Liz Pulliam Weston

The lull in bankruptcy filings may already be a thing of the past.

Consumer bankruptcy cases plunged to a 20-year low in the first three months of 2006, reflecting the passage of a tough new bankruptcy law last year. But the pace of new filings is already on the rise.

Courts now see an average of 2,000 new filings a day -- four times the number that were filed in November 2005 after the bankruptcy law went into effect, according to Chris Lundquist, founder of Lundquist Consulting, which tracks bankruptcy trends.

If filings continue to rise at anything like this rate -- which is not a given, but certainly a possibility -- we could see close to 1 million filings by the end of the year.

more...

[UpInArms]

110. 3:04 EST sloshing deeper in the muck

Dow 11,493.85 -148.80 (-1.28%)
Nasdaq 2,273.30 -47.44 (-2.04%)
S&P 500 1,304.73 -18.12 (-1.37%)
10-Yr Bond 5.164 +0.39 (+0.76%)

NYSE Volume 2,000,262,000
Nasdaq Volume 1,934,468,000

[UpInArms]

111. Today's tune: Bob Marley Special

I shot the sheriff, but I did not shoot the deputy.
I shot the sheriff, but I did not shoot the deputy.

All around in my home town
They’re trying to track me down.
They say they want to bring me in guilty
For the killing of a deputy,
For the life of a deputy.
But I say:

I shot the sheriff, but I swear it was in self-defense.
I shot the sheriff, and they say it is a capital offense.

Sheriff john brown always hated me;
For what I don’t know.
Every time that I plant a seed
He said, kill it before it grows.
He said, kill it before it grows.
I say:

I shot the sheriff, but I swear it was in self-defense.
I shot the sheriff, but I swear it was in self-defense.

Freedom came my way one day
And I started out of town.
All of a sudden I see sheriff john brown
Aiming to shoot me down.
So I shot, I shot him down.
I say:

I shot the sheriff, but I did not shoot the deputy.
I shot the sheriff, but I did not shoot the deputy.

Reflexes got the better of me
And what is to be must be.
Every day the bucket goes to the well,
But one day the bottom will drop out,
Yes, one day the bottom will drop out.
But I say:

I shot the sheriff, but I did not shoot the deputy, oh no.
I shot the sheriff, but I did not shoot the deputy, oh no.

[stop the bleeding]

114. I hope that if anyone had plays today they got out, unless you were

shorting something - what a thud today

[mike923]

115. the market was below 11,200 just a couple weeks ago...

those of us who invest in the market shouldn't be worried about a minor correction after the last couple weeks.

[stop the bleeding]

118. minor or not - it is still a bad day to be going long

I am very aware where the market is and has been, my point was whoever had long plays today got a little hickup in their plans.

I invest in the market as well, 99% option plays at a level 3-5 trader depending on which brokerage house you consult with.

and you?

on edit: I don't think we have had a 1 day loss like this for 4-5 months, but I could be wrong

[mike923]

121. Re

I read this thread daily, and love it. It is very informative, accurate, and is easy to access information. But what makes it the most entertaining for me, is on days when the market retracts, posts are made all day long indicating that the market is completely crashing. Not that i have a problem with it, they are entertaining. It's just how can you rationalize posting the standard "market is in mid flush" or "circling the drain" when it's down, say, 30 points. When it was up 50 the day before? There are dozens of these posts just today.

I don't know if some people who post here truely understand what makes up the DJIA number, and how it works. I think some believe it is a poltiical measuring stick, and not the average stock price of a handful of large corporations.

[stop the bleeding]

122. I read this daily for the same reasons

However I don't recall saying that the market is crashing or in the can, I do recall saying that it is bleeding like a stuck pig which it did and does. I also recall saying that people who were going long today had a bad day, unless you are playing some sort of calender spread.

I have tried to tell people on other threads that when these days happen that it is good to know how to short your positions in the market - sometimes this will help take the panic out of their voice. I did not look at the final numbers but I am guessing that the DJIA lost about 125-140 points and the S&P about 15. Even with today's correction I was able to make 10-20% buying and selling calls, not as good as recent days and weeks but hey with a day like today I will take it. ;)

Can't wait for next Friday - expiration time for options - oh goody!!!! that is when the real paycheck comes :)

[mike923]

123. Re

I didn't imply my rant directly at you, just spouting off in generalities. My market aspirations are long term, decades in fact. So while i find the normal daily fluxuations interesting, the constant equating of the market to some sort of political scoreboard when it retracts is a minor frustration of mine with this thread.

For the record, my amateur opinion is this market is still considerably undervalued.

[stop the bleeding]

124. cool - point taken

I look forward to talking to you in the future.

Happy trading

[ret5hd]

128. What are the average returns for a market...

(over the following decade or two) that has a P/E ratio of about 20?

[UpInArms]

116. 3:35 EST heading for the close - badly wounded

Dow 11,483.28 -159.37 (-1.37%)
Nasdaq 2,270.74 -50.01 (-2.15%)
S&P 500 1,303.89 -18.96 (-1.43%)
10-Yr Bond 5.155 +0.30 (+0.59%)

NYSE Volume 2,216,962,000
Nasdaq Volume 2,140,838,000

3:00 pm : Indices are retracting their lowest levels of the day as selling remains widespread across most areas. Agricultural Products, however, is extending its leading year-to-date surge beyond 87% as more speculation on the ethanol front renews enthusiasm for Archer Daniels Midland (ADM 46.50 +1.50). Specialty Stores is also attracting buyers on a down day, getting a boost after Citigroup upgraded Office Depot (ODP 44.70 +1.46) to a Buy from Hold. DJ30 -149.76 NASDAQ -47.04 SP500 -18.20 NASDAQ Dec/Adv/Vol 2356/688/1.90 bln NYSE Dec/Adv/Vol 2417/822/1.39 bln

[ozymandius]

117. Buyers have just about given up.

3:38
Dow 11,489.61 -153.04 (-1.31%)
Nasdaq 2,271.93 -48.82 (-2.10%)
S&P 500 1,304.46 -18.39 (-1.39%)
10-Yr Bond 51.55 +0.30 (+0.59%)
NYSE Volume 2,244,428,000
Nasdaq Volume 2,168,150,000

3:30 pm : Equities are still on the defensive as sellers remain in full control of the action going into the close. The Dow is now on pace for its largest one-day point decline since January and has more than erased the 1.2% it gained in Friday's rally. The S&P 500, up more than 1.0% last Friday as well, is off an even larger 1.4% today while the Nasdaq and Russell 2000 are posting losses of more than 2.0%.DJ30 -160.24 NASDAQ -49.51 SP500 -19.28 NASDAQ Dec/Adv/Vol 2384/677/2.08 bln NYSE Dec/Adv/Vol 2480/755/1.53 bln

[spotbird]

120. Shit, shit, shit

I feel like I'm gonna puke.

Knowing it would happen doesn't make the reality any better.

[AnneD]

125. As my Mom is fond of saying

1. Some days you're the bug, some days the windshield.
2. Some days you're the dog, some days the fire hydrant.
3. Some days you're the pigeon, some days the statue.

[ozymandius]

126. at the end of the day

Dow 11,500.73 -141.92 (-1.22%)
Nasdaq 2,272.70 -48.05 (-2.07%)
S&P 500 1,305.92 -16.93 (-1.28%)
10-Yr Bond 51.55 +0.30 (+0.59%)
NYSE Volume 2,536,807,000
Nasdaq Volume 2,499,598,000

4:20 pm : The major averages closed sharply lower Thursday as soaring commodity prices and higher interest rates -- the main reasons behind our Neutral market view -- exacerbated concerns about inflation and Fed policy as aggressive selling efforts weighed on stocks across the board.

On the commodity front, gold prices closed at a new 26-yr high and copper was up 9% at one point early on and finished at another historic high. Further underscoring our Overweight rating on the Materials sector was silver, which closed at its best levels since January 1981. Also, crude oil prices continued to regain some upward momentum, closing up 1.6% at $73.25 a barrel amid ongoing geopolitical concerns tied to Iran and Nigeria as well as refinery outages adding to supply concerns. Neither oil's surge nor gold's gain, however, were enough to provide sector support for Energy and Materials. As this year's top two performers, investors still viewed today's overall bearish sentiment as an incentive to lock in recent gains.

Technology, though, was the biggest drag on the market from a sector standpoint. As if Microsoft (MSFT 23.22 -0.55) missing Q3 (Mar) forecasts by a penny two weeks ago and then warning for the current quarter wasn't enough, nervousness this week was renewed following Dell's (DELL 24.51 -0.38) disappointing guidance Monday night, which continues to weigh on PC stocks. Less than 24 hours later, continued weakness independent of inflation fears was exacerbated after a disappointing sales forecast from Cisco Systems (CSCO 20.05 -0.70) fueled concerns of slowing growth in tech. Further consolidation in the semiconductor group, which continues to exhibit a negative bias going into the seasonally slower months, also contributed to Technology's 2.4% drubbing that turned the sector negative for the year.

With the broad-based nature of upside surprises acting as a recent source of buying support for the market in the face of rising interest rates, a Q1 disappointment from Dow component American International Group (AIG 63.15 -3.39) garnered extra scrutiny that weighed heavily on Financials. The rate-sensitive sector also lost ground as more attractive yields in Treasuries prompted consolidation in large-cap bank stocks.

The yield on the 10-yr note hit a 4-year high of 5.17% before closing at 5.15%. One of the top five biggest days of corporate issuance, only mediocre foreign interest in a widely watched 10-yr note auction and still no clear indication from the Fed about further rate hikes weighed on Treasuries throughout the session. With the Fed now focused on "incoming data" to determine Fed policy, a lower than expected in April retail sales data briefly improved sentiment in both bonds and stocks before the bell. However, since steady growth in consumer spending keeps economic growth on a strong growth path, uncertainty as to whether or not a pause is in the cards at the next FOMC meeting kept buyers on the sidelines.

The Dow, which came within 80 points of hitting its all-time high just yesterday, is now more than 220 points away as 28 of 30 components post losses. The only component to post a gain was Johnson & Johnson (JNJ 58.84 +0.52), which was upgraded to Buy from Neutral at Banc of America. Alcoa (AA 36.02 -0.20) was the only other Dow stock catching a bid throughout most of the session, as aluminum prices hitting their highest levels since June 1988 lifted AA shares to a new 52-week high; but late-day consolidation efforts closed the stock lower.

Among only a handful of bright spots on a day where decliners outpaced advancers on both the NYSE and Nasdaq by a 3-to-1 margin was News Corp. (NWS.A 18.58 +0.58). A suggested holding in our Active Portfolio, the stock hit a new 52-week high after more than doubling Q3 (Mar) profits and doubling its share buyback program to $6 bln. Nonetheless, with earnings season coming to a close, as more than 450 companies in the S&P 500 have already reported, and the market's focus shifting to "incoming data" after the Fed provided no clear indication yesterday of a pause in its tightening efforts, an overwhelming sense of nervousness kept sellers in control of trading from the open to the close. DJ30 -141.92 NASDAQ -48.04 SP500 -16.93 NASDAQ Dec/Adv/Vol 2454/630/2.48 bln NYSE Dec/Adv/Vol 2577/690/1.81 bln

[Roland99]

127. Closing numbers - Managed to hold 11,500

DJIA 11,500.73 -141.92 -1.22%
Nasdaq 2,272.70 -48.04 -2.07%
S&P 500 1,305.92 -16.93 -1.28%
Dow Util 404.20 -4.50 -1.10%
NYSE 8,526.74 -104.85 -1.21%
AMEX 2,012.84 -28.80 -1.41%
Russell 2000 757.47 -18.47 -2.38%
Semcond 495.50 -11.55 -2.28%
Gold future 721.50 +15.80 +2.24%
30-Year Bond 5.23% +0.04 +0.75%
10-Year Bond 5.16% +0.03 +0.59%