STOCK MARKET WATCH, Friday 19 May

[ozymandius]

Friday May 19, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 978 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1973 DAYS
WHERE'S OSAMA BIN-LADEN? 1673 DAYS
DAYS SINCE ENRON COLLAPSE = 1634
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 18, 2006

Dow... 11,128.29 -77.32 (-0.69%)
Nasdaq... 2,180.32 -15.48 (-0.70%)
S&P 500... 1,261.81 -8.51 (-0.67%)
Gold future... 680.90 -10.90 ( -1.60%)
30-Year Bond 5.18% -0.09 (-1.78%)
10-Yr Bond... 5.07% -0.08 (-1.55%)






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 Martin Goldberg

MOMENTUM OF ALL TYPES PUNISHED IN SPITE OF FUNDAMENTALS

The broad sell off beginning last Thursday has spared no momentum trade, as all leading indices and sectors have been decisively taken down. In addition, no fundamental rational was given any amnesty over these 5-trading days. Previously, the bull market was especially suited to the faint of heart as the S&P was practically immune from any one day swoon of more than 12 points. When swoons of this nature did occur, the indices were quickly reversed, usually on the next day.

-cut-

But during this bull market, it was the companies with clear and visible present and future earnings and business conditions that were bid up to bubble valuations. Transportation stocks, chemical companies, retailers, and restaurants all routinely carry P/Es of more than 30 and no dividends. What propelled this rally was the collective necessity of money managers of all types to not miss a rally, and to not get burned too badly on bearish positions. During this bull market, market sentiment, traditionally a long- or intermediate-term phenomenon often changed on a weekly, daily, or even hourly basis from bullish to bearish and back to bullish again. What made these fluctuations in sentiment occur was that the present market action itself was the chief factor in determining sentiment in regards to the future market action. Fundamentals didn’t count. The bull market also exhibited a propensity to shrug off bad news with ease. And while it’s not appropriate to discuss this in detail here, the world has changed for the worse during the tenure of this bull market (expressed in terms of US dollars), and this has yet to be discounted in the stock market. The worsening of the world will not be ameliorated if Americans simply “take their family to Disneyworld.”

Yet, with such statements as encouragement from US’ political leadership, this seems to be the general approach that many Americans are now taking. In the wake of Enron, WorldCom, Tyco, and Martha, corporate America has re-settled into a world of pro-forma earnings, and one-time events. While a discussion of details will not be forthcoming tonight, all you need to know is that the average dividend payout of S&P 500 stocks is 1.6%. Viewed in the context of a century of stock market history, such valuations are laughable in their actual investment value. If you are a trader it may be a different story, but as stock investments, you should simply, “sell ‘em all!”

-cut-

With that said, you can bet that the markets will absorb whatever it takes in the short term to keep them propped up, because failure to levitate the financial markets will reduce the US consumer’s wealth effect, and this would cause the debt-based US economy house of cards to fall fast. This becomes even more important with the housing market cracking. For that reason, I’m looking for a rally in the near term. (Choose your favorite flavor of momentum.) But this won’t change the long term picture which, after special items and one-time events, is bleak.

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

[DemReadingDU]

26. So when does everyone predict that the house of cards

is going to collapse in this debt-based US economy?

[ozymandius]

39. It's impossible to predict.

Everyone wonders that every day here. The fact is, these sudden jerks (call them "corrections" or "crashes", what have you) always come out of the blue. If they could be predicted - then giant economic levers would be pulled to avoid even a 200-point Dow selloff that we saw this week.

[AnneD]

47. Morning Marketeers,

:donut: and lurkers. :hi: DemReadingDU and welcome. That is always the $64K question. I had it explained to me once this way. When you throw a ball up in the air it has an ascent and a descent. Of course the ideal is to buy at the start of the ascent (nadir) and sell off at the top (apex) of the curve. That is the ideal and we cannot calculate it as there are way too many variables. BUT, what we can do is see the ball rising once it is in the air and once it hits the apex and we see it start to decline-we get the hell outta dodge.

I tend to prefer to work on the left side of the curve. The way I look at it is that you never actually lose money getting out too soon-you just lose a bit more gain-and I can live with that. Another advantage of selling early is that the sales go in faster. If you sell on the down side-trades are slow, curbs put on, etc compounding your loss (I witnessed this during the 80's crash and had the fortune to get out a month or so before it hit). I have sold too soon and too late at different times and have learned from those experiences what I can tolerate.

Being older now has made me more cautious as my time line is growing shorter. What I invest for my daughter takes on a totally different tact (and I have to admit-I enjoy that more). I want to pass to her tangible fruits of what I have learned. Her world will be vastly different that what I have lived. If we continue as we have, I want to give her and my grandchildren to come a better chance to survive economically.

Happy hunting and watch out for the bears.

[Ghost Dog]

56. There's an interesting 'big picture' chartist's view here:

http://www.financialsense.com/editorials/bronson/2006/0517.html

<cut from long article full of charts>

Here is quite a different statement of facts that the financial media will not point out because it does not support today’s bullish and complacent consensus attitude of investors:

In the longest such stretch since the 10 years it took to make new highs from early 1973 to early 1983, and the 25 years it took from late 1929 to late 1954, the capitalization-weighted index of the stock market has closed below its March 24, 2000 all-time high for more than: six straight trading years; 24 straight trading quarters; 73 straight trading months; 317 straight trading weeks; and 1,520 straight trading days!

Over the next eight years or so, as we complete this Supercycle Bear Market Period, we fully expect the consensus mood to completely reverse and become extremely bearish. We expect the financial media will then broadcast data that match investors’ widespread and entirely predictable bearishness and disdain for investing in the stock market.

During recent weeks, the financial media has been pushing a bullish story of stock market indexes hitting five- and six-year new highs. However, not only are such new highs absolutely consistent with a continuing Supercycle Bear Market Period, but as we’ve have been continuously warning, they have broadly indicated the start of the most psychologically devastating second downleg of the Supercycle Bear Market, the largest bear market in a Supercycle Bear Market Period.

/much, much more...

[ozymandius]

2. Oil Prices Extend Gains in Asian Trading

SINGAPORE - Oil prices extended gains Friday in Asian trading as traders judged declines earlier this week as premature given persistent concerns about Iran's nuclear program and the upcoming summer driving season.

-cut-

"The concerns that drove prices down were premature, particularly in the U.S. market," said energy analyst Victor Shum of Purvin & Gertz in Singapore. "The market is rebounding and some participants are taking advantage of the lowered prices to get back into it."

Traders remain concerned about how the West's standoff with Iran will affect that nation's oil exports as well as supply disruptions in Nigeria and the Gulf of Mexico hurricane season.

The Organization of Petroleum Exporting Countries acting Secretary General Mohammed Barkindo said Friday that geopolitical tensions were causing up to a US$15-a-barrel premium on crude prices, and urged governments of both producing and consuming countries to ease the tensions.

more

[ozymandius]

3. Gas prices drive down demand

WASHINGTON — Gasoline demand dropped for the second-consecutive month in April, but drivers are showing early signs of bouncing back in mid-May, according to reports out Wednesday.

Deliveries of gasoline, a gauge of demand at the pump, fell 1.9% in April from the same month a year ago, the American Petroleum Institute said in a monthly report. It was the biggest decline since December 2000.

-cut-

"Sharply higher retail prices appear to be taking their toll on U.S. gasoline demand," said API, which represents companies in the oil and natural gas industries.

But that decline may be ending as consumers adjust to the higher prices. The government's Energy Information Administration said Wednesday that the four-week average gasoline demand was up 0.2% last week from the same period a year ago, after falling the previous week.

more

[ozymandius]

10. Automakers push lawmakers on ethanol fuels

MAY. 18 6:42 P.M. ET The Big Three automakers pressed Congress on Thursday to help make ethanol fuels more widely available, saying that would be an immediate step toward lessening U.S. dependence on foreign oil.

Leaders of General Motors Corp., Ford Motor Co. and DaimlerChrysler AG's Chrysler Group appealed to lawmakers for incentives to increase the number of gas stations offering blends of the corn-based fuel.

"If we want a game changer, and a game changer in very short term and in big numbers, then ethanol is a very good play for this country," said Ford's chairman and chief executive, Bill Ford.

more

[Ghost Dog]

40. Russia wields oil weapon on WTO

http://news.bbc.co.uk/2/hi/business/4994216.stm

(BBC) Russia has warned that US oil firms could lose business if the US discriminates against Russia in World Trade Organization (WTO) talks.

The news comes as Russia is selecting foreign firms to help Gazprom develop the Shtokman gas field, in the Arctic.

"If you discriminate against us in the WTO, you can't expect us to welcome you with open arms," the Kremlin said, reported Dow Jones.

<snip>

On Wednesday, Gazprom once again postponed choosing a partner firm for the gas field, moving the decision date to "this summer" according to Russia's Energy Minister Viktor Khristenko.

The gas project, which was scheduled to start in 2000, has been repeatedly delayed.

Also keen to partake in the project are French firm Total and Norwegian firms Statoil and Norsk Hydro.

The field is one of the largest in Russia, and could potentially supply both Europe and North America.

/more...

[Ghost Dog]

42. Russia holds all the aces in gas confrontation

http://business.timesonline.co.uk/article/0,,13130-2187904,00.html

(London Times) THE process of inter-governmental bargaining known as diplomacy is essentially no different from negotiations in business or everyday life. One party is denying something the other wants or asking a price the other reckons exorbitant. The second party replies by offering something of value, conditional on the first party improving its terms. If and when these sticks and carrots balance out, deals are struck.

The oil boom and the Putin Administration’s fiscal prudence deprive the US and Western Europe of the leverage they enjoyed over Russia during the 1990s. Russia is flush with cash, and no longer needs loans from the IMF or debt relief from Western governments. Nor does Russia want to join the EU or Nato.

For the first time since the collapse of the Soviet Union, Russia has some powerful cards to play — none more powerful than its gigantic reserves of natural gas. So it is no surprise to see a revival of the Cold War’s mutual suspicion.

<snip>

Raising the stakes in the run-up to next month’s G8 summit, Mr Putin’s message to President Bush appears to be: “We will postpone the decision on Shtokman until the eve of the summit, and include your companies in the project if you cut us a reasonable deal on the WTO in the meantime.”

But now that this message has become to all intents and purposes a public one, the US might be seen to lose face by complying with Mr Putin’s proposal. Diplomats know that the other side must be given a ladder to climb down, and in this situation there is no ladder in sight.

/more...

[Ghost Dog]

57. Kazakhstan plans expansion of major gas pipeline

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060519:MTFH26187_2006-05-19_14-36-29_L19756502&symbol=GAZPq.L&rpc=44

TBILISI, May 19 (Reuters) - Kazakhstan's state gas transport company KazTransGas plans to borrow $600 million from banks to invest in expanding the Central Asia-Centre gas pipeline running from Turkmenistan to Russia, a senior official said on Friday.

The Central Asia-Centre pipeline carries Turkmen and Uzbek gas through Kazakhstan to Russia and has become increasingly important to Russian gas giant Gazprom (GAZPq.L: Quote, Profile, Research) as it buys up Central Asian gas to offset declining output in West Siberia.

"We'll start building this year," Daniyar Berlibayev, first deputy general director of KazTransGas, told Reuters in the Georgian capital Tbilisi.

<snip>

He said the company would invest $82 million in modernising infrastructure and expected the project to break even in five years. He also said his company was still in talks with Kazazkhstan's neighbour Kyrgyzstan on buying Kyrgyzgaz's network and it was interested in natural gas powered electricity generation projects in Ukraine, but gave no further details.

/more...

[UpInArms]

71. Fill 'er up while you can

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B5EC5299F%2DED55%2D4F93%2DB335%2D12D9C06A4501%7D&symbol=

BALTIMORE, Md. (MarketWatch) -- Crude oil has backed off its recent highs as it takes a deep breath. But just ahead is the double whammy of hurricane season and summer driving season, two factors that could push crude to $80 and even $100 a barrel. Right now could be the best time to add some to your portfolio.

Some reports reflect that oil demand is dropping, but it seems clear to me that this is inaccurate or at the very least exaggerated. Global production capacity is roughly 85 million barrels per day, and that's when everything is good. Just last week the Paris-based International Energy Agency reduced its estimate of global demand by 15%. Even with this substantial reduction, the IEA estimated total global demand at 84.8 million barrels per day. High prices may have reduced demand, but even so, supply is just squeaking by. There is still very little room for supply disruptions bought about by weather, geopolitics, equipment failure or any combination thereof.

China is home to 1.2 billion people. India is home to another billion. Both these economies are growing fast -- and they all are thirsty for oil.

Supply line of chaos

The five major suppliers of crude oil to the U.S. are Canada, Mexico, Venezuela, Saudi Arabia and Nigeria. Four are in an area of the world author and analyst Rick Maybury calls "Chaostan," or "the land of Chaos." Rick believes incompetent U.S. meddling in Chaostan has ignited World War III and that we are still in the war's early stages.

Can't happen you say? That's what people said about $70 crude oil a year ago. Considering the U.S. War in Iraq has lasted nearly as long as the US involvement in World War II, Mr. Maybury may be proven right. If so, $200 crude oil is not out of the question.

...more...

[UpInArms]

75. June Crude @ $68.85 bbl - June NatGas @ $6.05 mln btus

12:54 PM ET 5/19/06 JUNE CRUDE STILL LOWER, BUT CUTS LOSSES IN AFTERNOON TRADING

12:54 PM ET 5/19/06 JUNE CRUDE LAST DOWN 60C AT $68.85/BRL AFTER A $68.01 LOW

12:54 PM ET 5/19/06 JUNE NATURAL GAS TURNS HIGHER, UP 5.3C AT $6.05/MLN BTUS

[UpInArms]

100. June Crude closes @ $68.53 bbl - NatGas @ $5.962 mln btus

3:00 PM ET 5/19/06 JUNE CRUDE ENDS AT $68.53/BRL, LOWEST CLOSE SINCE APRIL 4

3:00 PM ET 5/19/06 JUNE CRUDE FALLS 92C FOR THE DAY, DOWN 4.9% ON WEEK

2:56 PM ET 5/19/06 JUNE NATURAL GAS CLOSES AT A 16-MO LOW OF $5.962/MLN BTUS

2:56 PM ET 5/19/06 JUNE NATURAL GAS DOWN 3.5C ON DAY, DOWN 5.1% ON WEEK

[ozymandius]

4. Former Fed Chair Says Housing Boom Over (WUHBPH*)

NEW YORK - Former Federal Reserve Chairman Alan Greenspan said Thursday that Americans' consumption could taper off somewhat now that the U.S. housing market's "extraordinary boom" has ended.

Greenspan, in his first public U.S. speech since retiring in January from a storied tenure leading the Fed, predicted there is no danger of a total collapse of the housing market.

His comments come on speculation the Fed could pause its cycle of rate hikes as a housing slowdown feeds a cooling of the U.S. economy.

"This has been quite an extraordinary boom," Greenspan said in remarks at the Bond Market Association's 30th anniversary dinner in New York. "Home sales are off, applications are off, everything is going in the same direction. The boom is over, and you can say that with a fairly strong degree of confidence."

more

*washed-up has-been partisan hack

[Roland99]

8. Hmm...home equity drying up and consumption going down?

Could we have been right and Greenspan hiding the truth all along?

[AnneD]

50. Damn straight....

that's why all his pronouncements were cloaked in GreenSpin. It was used as a distraction to keep us from followind the the pea under the shell. Have you noticed how much more direct his speeches are now that he has left office.

[Roland99]

72. Shhhh....I'm not here....you didn't see this.

;)


I was talking to a friend of mine last night. He works for a mortgage broker here in town. He said some lenders are getting dicier with their loans. He knows of a program that takes stated income (apparently no verification) provided the credit score is above a certain level (probably 720). One guy in particular had a 738 and had a debt-to-income ratio of over 70%!! Granted, that included his old mortgage but he still got a loan to refi and now his debt-to-income is still over 60%! That's just madness.

He said he's tired of the business and wants a regular paycheck. Apparently, things are slowing down (even though this area has been and will probably remain rather immune to general, national downturns) and the commissions are drying up.

BTW, this is the same mortgage broker comp. that's filled with Freepers and I got into a long email battle with one day with the Sales Mgr even proclaiming I was a drain and that they were working to fuel the economy (yeah, like pouring gas on a fire).

[UpInArms]

74. hiya Roland99!

I happy to "not" see you here today ;)

:hi:

[Roland99]

80. Hi, back! Looks like the Faeries hath arrived.

They've had quite a vacation.

[AnneD]

84. Roland, this is the very thing ...

that will come back to bite them in the ass. This is equivalent to the Savings and Loan debacle we had in Houston. This time it will be called the Mortgage Lender Scandal. Come to think of it-the S&L scandal was headed up by the Neocons like Neil Bush. And if memory serves-taxpayers via the government got stuck with that one.

[Roland99]

90. Exactly. I even brought up that point to my buddy.

[UpInArms]

95. Jeb Bush, signatory on the PNAC Statement - S&L Looter also

http://www.campaignwatch.org/more1.htm#jebsl

Jeb’s defaulted loan from Broward Federal Savings and Loan in Sunrise, Florida transpired as follows.16 On February 1, 1985, Broward Federal loaned $4,565,000 to real estate developer J. Edward Houston, secured only by Houston’s personal guarantee. The same day, a company headed by Houston turned around and loaned the same amount to a partnership of Jeb Bush and Miami real estate developer Armondo Codina for them to buy a five-story building in Miami’s financial district.

Curiously, the Bush-Codina partnership was required to repay the loan from Houston “only as, if and to the extent that the cash flow from the building was sufficient to support those payments.” In fact, Bush and Codina made no payments at all on the loan prior to the final default settlement. In 1987 Houston defaulted on the $4.5 million Broward Federal loan, and the S&L sued both him and the Bush-Codina partnership. In an unusual settlement with the FDIC, Bush and Codina were obligated to repay just $500,000 of the loan and got to keep the building in the Miami financial district that collateralized the loan.

In 1991, federal regulators sued the officers and directors of Broward, charging that the loan used by Bush and Codina cost the savings and loan at least $4.97 million and was representative of the association’s negligent lending practices.17 The Bush-Codina loan contributed to the collapse of the Florida S&L, which cost taxpayers $285 million.18

[UpInArms]

20. CA: Cost Of Commuting Leading To Foreclosures

http://cbs5.com/topstories/local_story_137213853.html

(CBS 5) STOCKTON Mechelle Sanders is a foreclosure counselor. Today she's following up on as many as 14 leads in the Stockton area.

In many cases, Sanders says foreclosure victims are former Bay Area residents who underestimated the high cost of commuting.

"They commute, but with the prices being high in gas … they're going back because it's not making the difference," said Sanders.

The Westin Ranch development was the object of desire for Bay Area bargain hunters three years ago. But real estate agent Cynthia Carter says the number of homes here up for sale has quadrupled since last year. "The commute you can do for about a year," said Carter, "and then it becomes really hard on the body physically for people."

But this is no longer a sellers market.

In April of last year there were 935 homes on the market in the bedroom communities of Stockton, Tracy, Lathrop and Manteca. This April the number skyrocketed to almost 3,500 … a 270% increase.

...more...

[WhiteTara]

108. there are so many houses because really

who would want to live there? Dry dusty flat and somewhat ugly.

[ozymandius]

5. Locking in Prices No Promise to Cut Bills

Homeowners who signed on last winter with an energy marketer guaranteeing a fixed natural-gas price for the remainder of the year, or longer, may be kicking themselves right now.

The price of natural gas has fallen by more than 60 percent since wintertime highs above $15 per 1,000 cubic feet, and the long-term contracts available today are considerably cheaper.

For example, Columbia Gas of Ohio customers can today sign up for a one-year supply contract with Shell Energy Services and pay $12.70 per 1,000 cubic feet. Six months ago, Shell was offering a one-year fixed price of $15.60.

So is now a good time to lock-in a price for natural gas?

more

[AnneD]

54. It is like buying produce in the market....

you have to consider the season. Fruits out of season always cost more. Signing a year contract for gas in the winter is like buying watermelons on a contract that you sign in winter. Watermelons costs are prohibitive in the winter but less in the summer. It might be better to tough it out and go month to month in the winter just to get on a late spring early summer cycle. I think it might cheaper over the long run (even though the few months you tough it out will cost more). That is just a risk you pay with a contract. We are having to do that this year for the first time since they deregulated our electricity. Frankly all deregulation is is a way to shake down the consumer for more money. How much you are taken for depends on your ability to read the fine print, timing, and luck.

[ozymandius]

6. Europe's bourses seen extending slide into third day

Europe's bourses are see extending their sharp slide into a third day on Friday as Wall Street retreated further on inflation and interest rate worries.

CMC Markets were forecasting "the FTSE to start down 29 at 5,643, the DAX down 35 at 5,631 and the CAC down 39 at 4,870," Matthew Buckland of the spread better said.

-cut-

"We got a reassuring claims number saying job growth was weak. For stocks the big fear was this continued rise in rates. It seems to have gotten a little better," said Jim Paulsen, chief investment strategist at Wells Capital Management.

more

[Ghost Dog]

14. Bourses edge higher stemming sharp slide

http://news.ft.com/cms/s/d34ccc94-e701-11da-9046-0000779e2340.html
Published: May 19 2006 07:44 | Last updated: May 19 2006 12:10

Europe’s bourses edged higher on Friday confounding expectations they would extend their sharp slide into a third day after Wall Street retreated further on inflation and interest rate worries.

The FTSE Eurofirst 300 was fractionally higher at 1,305.67 with the Xetra Dax up 0.3 per cent to 5,681.08, the CAC-40 in Paris 0.7 per cent ahead to 4,943.06 but the FTSE 100 in London was down a fraction at 5,669.4.

/more...

[Ghost Dog]

21. FTSE flat, on way towards worst week in 3 years

http://yahoo.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?storyID=urn:newsml:reuters.com:20060519:MTFH20752_2006-05-19_11-07-29_SIL940052&symbol=.FTSE&rpc=44
Fri May 19, 2006 7:07 AM ET

LONDON, May 19 (Reuters) - UK stocks erased a stronger start on Friday to trade near flat as equity derivatives expired, putting the FTSE 100 <.FTSE> index on course for its heaviest weekly drop in over three years.

Concerns about inflation and the direction of interest rates have irked investors, along with the temptation to take profits after stocks reached 5-year highs.

<snip>

By mid-morning the FTSE 100 blue-chip index was up 4.6 points at 5,676.2 -- taking away most of its earlier rise to 5,715 points as equity derivatives expired, producing volatile trade. The index has fallen about 4 percent on the week, on track for its largest weekly retreat since March 2003 and adding to last week's 3 percent slide.

"At the moment we have to look at what's happened and the speed of the fall and say that the probability is that the market has had another of its healthy shakeouts," said John Smith, an investment director at private bank Brown Shipley. "We were back to end of last year's levels at the lows yesterday and I think at those sort of levels there is value again in the market but I see no sustained upmove in the short term. Certainly our policy is probably that it is going to be much later in the year."

/more detail...

[Ghost Dog]

35. French GDP picks up in Q1 but 2005 growth trimmed

http://news.ft.com/cms/s/b3f9ccec-e71b-11da-9046-0000779e2340.html
By Reuters 09:09

(FT) French growth picked up in the first quarter due to strong consumer spending and an improving trade performance, but economic activity in 2005 was revised down, national statistics office INSEE said on Friday.

The gross domestic product of the euro zone’s second biggest economy rose 0.5 percent in the first quarter from the previous three months, an acceleration from 0.3 percent in the fourth quarter and its best showing since the third quarter of 2005.

That was below consensus forecasts and slightly weaker than the performance of the wider euro zone, which grew at a quarterly rate of 0.6 percent in the first quarter.

Also, 2005 growth was revised down to 1.2 percent from the 1.4 percent rate reported previously.

However, the data -- the first detailed Q1 growth figures from a major euro zone economy -- left intact financial markets’ expectations that the ECB will raise interest rates in June.

/more...

[Ghost Dog]

59. German parliament backs tax rises

http://news.ft.com/cms/s/cfcfe9e8-e73d-11da-9046-0000779e2340.html

The German parliament on Friday adopted a controversial hike in value-added tax in spite of warnings from economists and business leaders that the move could snuff out Germany’s fragile economic recovery.

Legislators from chancellor Angela Merkel’s ‘grand coalition’ government forced through the three percentage point increase to 19 per cent, that is now scheduled to take effect from January 1 2007. Some 396 MPs voted in favour and 146 against. The measure has to be adopted by the Bundesrat, the parliamentary upper house, on June 16 but support here was assured, government officials said.

The VAT increase, along with related measures to reduce tax breaks for commuters, home builders and other groups were attacked by opposition parties as the “largest tax increase in Germany’s post-war history”. The government has admitted that economic growth – projected by some economists to double this year to 1.8 per cent from 0.9 per cent in 2005 – is likely to fall again in 2007 to around 1 per cent, partly due to the VAT rise.

Peer Steinbrück, finance minister, speaking in parliament, said the VAT rise was “painful but necessary” in order to consolidate Germany’s strained public finances and meet the criteria of the European Union’s stability pact. Germany hopes in 2007 to reduce its budget deficit to below 3 per cent of GDP for the first time in five years.

/more...

[Ghost Dog]

60. VAT Increase Puts Germany Closer to EU Average

http://www.dw-world.de/dw/article/0,2144,2026126,00.html

(Deutsche Welle) The 3 percent value-added tax increase that was part of Chancellor Angela Merkel's election campaign didn't come as a surprise to anyone in Germany, but that doesn't mean everyone is willing to accept it.

/more...

[Ghost Dog]

88. European stocks endure worst week since July 2002

http://investing.reuters.co.uk/investing/MarketReportArticle.aspx?type=eurMktRpt&storyID=2006-05-19T163759Z_01_L19794258_RTRIDST_0_MARKETS-EUROPE-STOCKS-UPDATE-3.XML&pageNumber=0&imageid=&cap=&sz=13&WTModLoc=3

LONDON, May 19 (Reuters) - European shares closed slightly higher on Friday but suffered their worst weekly points drop since July 2002, as worries over inflation, rising global interest rates and falling commodity prices dogged equities.

After settlement, Europe's FTSEurofirst 300 index <.FTEU3> of top shares closed 1.3 points or 0.1 percent up at 1,306.56.

<snip>

"We find sufficient similarities between the current economic and market conditions with those prevailing before the stock market crash of October 1987 to conclude that a similar outcome is not impossible in the months ahead," said David Woo at Barclays Capital.

<snip>

Commodity prices tumbled further as the weak dollar rose, with mining shares hit again while heavyweight oil stocks such as BP (BP.L: Quote, Profile, Research) generally ticked up despite crude futures dropping around a dollar to $68.50.

Strong U.S. consumer prices data on Wednesday was a trigger for the biggest one-day fall on European stocks since September 2002 as investor worried the Federal Reserve would have to continue hiking interest rates despite hopes of a pause in June.

ENGINEERING A SLOWDOWN

Worries about dollar weakness contrasting with inflationary pressures have led some analysts to fear the worst.

"It seems like markets are continuing to oscillate between two concerns: that the economy is already starting to slow and that the economy is not slowing yet, but that inflation pressure will force the Fed to engineer a slowdown," Goldman Sachs strategists said in a note.

"Either way, the market is not yet persuaded that the long run for growth-sensitive assets remains in place."

/more...

[Ghost Dog]

89. FTSE ends down, biggest week loss in nearly 4 yrs

http://investing.reuters.co.uk/investing/financearticle.aspx?type=londonMktRpt&storyid=2006-05-19T161221Z_01_SIL958344_RTRIDST_0_BRITAIN-MARKETS-STOCKS-UPDATE-3-CLOSER.XML

LONDON, May 19 (Reuters) - Britain's top share index ended a second week of heavy, inflation-inspired losses slightly lower on Friday, but British Airways (BAY.L: Quote, Profile, Research) soared on forecast-busting profits.

The FTSE 100 <.FTSE> ended the session 14.2 points lower at 5,657.4 points -- some 480 points, or 7.8 percent, below a five-year high reached in April which had been driven by surging commodity prices, rampant bid activity and solid earnings.

The slide has wiped out all of the FTSE's gains made since the start of the year.

The index finished the week 254.7 points, or 4.3 percent, lower -- its biggest weekly points drop since July 2002 and largest weekly percentage fall since March 2003.

It has fallen 7.3 percent in the last two weeks -- the largest such drop since January 2003.

"You cannot have oil and metals prices permanently going up and not impacting negatively on company profit margins," said Edward Menashy, economist and strategist at Charles Stanley. "It is something the market has been well aware of for many weeks and then suddenly decided to act on it."

/more...

[ozymandius]

7. Senators warn Bush on renminbi

US senators sharply criticised the administration of President George W. Bush yesterday for its continued refusal to cite China for currency manipulation, warning that Congress could run out of patience if the renminbi did not begin climbing sharply against the dollar.

"To say that China is not manipulating its currency defies all evidence, all logic, all common sense," said Richard Shelby, Republican chairman of the Senate banking committee.

The threats are aimed at getting the administration to adopt a more aggressive posture that senators hope will force China to move more quickly on revaluation. But Congress has so far demonstrated little willingness to force the administration's hand by passing legislation that would require tougher action against China.

more

[ozymandius]

11. Snow slammed for China 'dodge'

WASHINGTON — Treasury Secretary John Snow received a tongue-lashing Thursday from senators over what they said was the administration's failure to force China to adjust its overvalued currency.

Sen. Charles Schumer, D-N.Y., said Treasury's report last week that declined to brand China as a currency manipulator was ”a technical and legislative dodge.”

”China is a manipulator,” Mr. Schumer said at a Senate Banking Committee hearing, ”and the administration is afraid to say so.”

-cut-

Snow responded that while the department report did not find proof of manipulation — a finding that would have triggered talks between the two countries and possibly resulted in sanctions against China — ”we are extremely dissatisfied with the slow and disappointing pace of reform of the Chinese exchange rate regime.”

more

[UpInArms]

28. SnowJob Yapping Anew

8:12 AM ET 5/19/06 SNOW DENIES ANY SOFTENING IN U.S. STRONG-DOLLAR POLICY

8:08 AM ET 5/19/06 SNOW SAYS INFLATION 'WELL-CONTAINED' AND WILL REMAIN SO

editing to add:

US Treasury's Snow repeats backs strong dollar

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-19T122644Z_01_NYJ00089_RTRIDST_0_ECONOMY-SNOW-DOLLAR-URGENT.XML

NEW YORK, May 19 (Reuters) - U.S. Treasury Secretary John Snow on Friday repeated the United States backs a strong dollar policy and rejected a suggestion that the Bush administration's commitment to that policy has softened over the past year.

"I don't think so, it's the policy. It's in our interests," Snow said in response to questions on CNBC television.

"But we also say as well that currency values should be set in open, competitive currency markets, to be in line with underlying supply and demand and market forces," he added.

"It's a policy we've made clear, that Japan signed on to, the statement coming out of the G7 (finance) ministers' meetings, which said open, competitive markets are the best way to set currency values," Snow said, adding: "Say our policy is the strong dollar."

Snow says inflation is 'well contained' and will remain so

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B40A24A85%2D2E46%2D4A16%2DAE0F%2D4B1BB8ADCB29%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) -- U.S. inflation remains under control, said Treasury Secretary John Snow. "I think inflation is well contained and will be and inflationary expectations are well contained," Snow said in an interview on CNBC. Snow said global central bank governors have inflation figured out much better than in the past. Asked if the U.S. statements in favor of a strong dollar have become "less forceful," Snow replied: I don't think so. It is the policy. But we always say as well that currency values should be set in open, competitive currency markets to be in alignment with underlying demand and supply market forces." Asked if Japan followed the same policy, Snow noted that Japan has signed on to the G-7 statement favoring open and competitive currency markets.

[Ghost Dog]

22. Daily Chinese yuan and money market update

http://yahoo.reuters.com/investing/FinanceArticle.aspx?type=economicNews&storyID=uri:urn:newsml:reuters.com:20060519:MTFH20405_2006-05-19_10-50-32_YUAN&pageNumber=0&summit=
Fri May 19, 2006 6:50 AM ET

SHANGHAI, May 19 (Reuters) - Following is a summary of market
activity and news articles on Friday relating to the yuan and
China's money market.

DLR/CNY EUR/CNY YEN/CNY* 1-YR NDF** 1-YR VOLS**
Close 8.0220 10.2850 7.1794 7.6700 3.65/3.95 pct
Mid-point 8.0150 10.2981 7.2357***
Pvs close 8.0100 10.2703 7.2299 7.6750 3.60/3.90 pct

Sources: <CNYX=CFXS>, <CNYNDF=>, <CNYVOL>

* Yuan per 100 yen.

** Offshore NDF/VOLS figures as at 1010 GMT, compared with levels at around the same time in the previous session.

*** The mid-point is a benchmark set by the central bank. The yuan may rise or fall 0.3 percent from its mid-point versus the dollar each day and 3.0 percent for non-dollar currencies.

-- One-year onshore yuan forwards were quoted at 7.7500 against the dollar, the China Foreign Exchange Trade System said on its Web site (www.chinamoney.com.cn), anticipating that the yuan would be 3.4 percent stronger in a year's time. No deals were done.

<snip>

MARKET NEWS

** China's yuan slumps as dollar gains

- China's yuan slumped sharply against the dollar on Friday, as the U.S. currency maintained its strength globally.

/more...

[ozymandius]

32. How to deal with the US$ as a "spoiled child"?

The average exchange rate (middle price) of RMB Yuan against US dollars Monday broke 8:1 mark and hit 7.9982:1. This is a new record in the exchange rate of RMB since the reevaluation of Yuan on July 21 last year. Clearly, it is an important symbol of the increasing flexibility of RMB exchange rate mechanism.

-cut-

China is facing an increasingly conspicuous problem: how should it deal with the US dollars as such a "spoiled child"?

Excessive issuance of US dollars has led to an excess liquidity of the global economy and served as a macro background of the appreciation of RMB. To observe the exchange rate curve of the RMB against the US dollar, one must first study the dollar trend.

-cut-

From the view of global pattern with the massive issuance of US dollars, some Asian countries, taking China as a typical head, accumulate this kind of "junk currency" (whose purchasing power is continuously declining) through large scale of export. This is a very unfair pattern for these Asian countries.

http://english.peopledaily.com.cn/200605/19/eng20060519_267096.html

[AnneD]

65. One of the things I ponder about...

is what connections the Bush family has with China and how it affects us in America. I haven't gotten a good handle on it yet, but seeing as how their relationship with the Middle East has had an impact on us, I think it is prudent to assume the Sino-Bush relationship and the possible fall out is worth some mental energy. This article seems to be a good starting point.

http://www.usatoday.com/news/washington/2002/02/19/usat-prescott-bush.htm

CHICAGO — When President Bush arrives in Beijing on Thursday, he'll embrace a policy that's something of a family tradition.

Bush's approach centers on promoting U.S.-China economic ties. That's a course favored not only by his father, the first President Bush, but also by his uncle, Prescott Bush Jr., a longtime acquaintance of Chinese President Jiang Zemin.

<snip>
Prescott Bush, now 79, also developed a close working relationship with Rong Yiren, a former trade minister and vice president, who in 1993 introduced Bush to a group of Chinese business leaders as "an old friend." In 2000, Forbes publications reported that Rong, who has retired from government, was the richest man in China.

<snip>
He was criticized in 1989 for visiting China to meet with business and government leaders just three months after the Tiananmen Square massacre, in which army troops fired at pro-democracy demonstrators.
His Shanghai partnership with the Japanese firm Aoki in 1988 proved embarrassing when revelations surfaced that Aoki at the same time was allegedly trying to get business contracts by bribing Panamanian leader Manuel Noriega, whom the first President Bush later ousted from power.
His connections to an American firm, Asset Management, came into question in 1989, when the company was the only U.S. firm able to skirt U.S. sanctions and import communications satellites into China.
When Asset Management went bankrupt later that year, Bush's deal to arrange a buyout through West Tsusho, a Japanese investment firm, raised eyebrows. Newspapers reported that Japanese police were investigating West Tsusho's alleged ties to organized crime.
Bush declines to discuss those controversies. "That's old news. It's in the past," he says.

<snip>
Last fall, Bush hosted a well-attended trade conference in Chicago at which U.S. Trade Representative Robert Zoellick gave the keynote address. At a dinner he sponsored last month at the Yale Club in New York, the U.S. ambassador to the United Nations, John Negroponte, was guest of honor.

<snip>





This should provide much food for thought. Bon Appetite.....

[ozymandius]

9. Stock futures rise, Dell and AMD in focus

FRANKFURT (Reuters) - U.S. stock futures pointed to a strong opening on Wall Street on Friday, reversing after heavy losses on Thursday, with computer maker Dell on the rise and giving AMD a boost.

By 0921 GMT, U.S. stock futures were showing gains of between 0.3 and 0.5 percent for the three main indexes.

Dell will be in focus after it posted earnings in line with market expectations and said it would begin using chips from Advanced Micro Devices (AMD).

Both shares jumped after the bell, while AMD's larger rival Intel fell sharply.

more

[ozymandius]

12. Abbott Laboratories accused of inflating drug prices

Federal prosecutors in Miami announced Thursday a lawsuit against Abbott Laboratories, accusing the pharmaceutical giant of defrauding Medicare and Medicaid out of tens of millions of dollars.

The lawsuit accuses Abbott of grossly inflating prices of drugs, particularly injectables, for which it billed federal programs at least $175 million. In some cases, the taxpayer-funded programs were charged more than 10 times what others were paying for the drugs.

The implications concern not only large sums taken away from overburdened health plans but also serious medical issues involving the overuse of antibiotics.

http://www.miami.com/mld/miamiherald/14614324.htm

[ozymandius]

13. 4 firms hit by criminal probes over CEO options

Caremark, SafeNet, Affiliated Computer join UnitedHealth as targets of investigations into 'back-dating.'

NEW YORK (Reuters) - At least four more U.S. companies have become targets in a widening criminal investigation into potential stock-option abuses.

Pharmacy benefits manager Caremark Rx Inc. (Research) said Thursday that it received a subpoena from the U.S. Attorney's office in New York requesting records related to the company's granting of stock options.

-cut-

Companies are under scrutiny for potential "back-dating" of stock options. Back-dating occurs when a company sets the grant price for the stock option retroactively to maximize potential profit for executives.

Stock options, widely used to pay senior executives, are meant to give managers incentive to boost their company's share price. Each option usually gives the recipient a chance to buy a share of company stock at a certain price at a future date.

http://money.cnn.com/2006/05/18/news/companies/options_probe.reut/index.htm

[UpInArms]

15. daily dollar watch

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

Last trade 84.96 Change +0.45 (+0.53%)

US Dollar Shows Some Resolve

http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/US_Dollar_Shows_Some_Resolve_1148032315611.html

EUR/USD –The A-B-C zigzag correction that we focused on yesterday that ended at 1.2700 is now classified as one corrective wave with the move up to 1.2872 as the second wave of the larger 3 wave corrective pattern. Thus, we are now in the third wave, which could lead to a sharp drop in the pair. Fibonacci extensions of 138.2% and 161.8% of 1.2970-1.2700 lead to 1.2500 and 1.2434. Also of note is the 5/4 low at 1.2570. A return to strength within the corrective channel encounters yesterday’s high at 1.2872. Declining daily oscillators continue to favor shorts as do hourly oscillators, which are declining but not even close to being overextended.

<snip>

USD/JPY – Like EUR/USD, USD/JPY trades in a 3rd wave of a larger correction, having rallied just beyond the 5/11 high at 111.55. the break above the 5/17 high at 111.33 and the 111.55 high give scope to continued strength towards the 5/1 low at 112.33 as well as fibo extensions of 108.96-111.33 at 113.56 (138.2%) and 114.12 (161.8%). Immediate support is at 111.33 in the event some correction of the recent move up. However, a break below there would be damaging to this rally and possibly fail towards 110.29 – yesterday’s low.

<snip>

USD/CAD – USD/CAD blew by the resistance that was fortified by the “23.6% fibo of 1.1771-1.0969 / 5/2, 5/9, 5/15 highs / 20 SMA”. That break above bolsters the bullish bias and gives scope to a test of the 38.2% fibo of 1.1771-1.0969 at 1.1274. We’ll focus again on the long term picture and reiterate that long advances and declines can be broken into 5 waves. Dividing the wave near the end of a corrective 4th wave often projects the end of the decline (or advance) by a Fibonacci multiple (.382 or .618). The chart below shows that we are very close to the 131.8% fibo. However, a break below 1.0897 would suggest that the end of the decline is not until the 161.8% fibo at 1.0373 (calculations on the chart). With the break above 1.1175, the mentioned 1.1274 and the 3/2 low at 1.1297 are now resistance.

...more...

China yuan ends at 8.0100 to dollar vs 8.0025 in OTC trade

http://www.forbes.com/finance/feeds/afx/2006/05/18/afx2755675.html

BEIJING (AFX) - The yuan finished over-the-counter (OTC) foreign exchange trading at 8.0100 to the dollar, compared with yesterday's 8.0025, traders said.

Earlier on the exchange-traded market, the yuan ended at 8.0070 to the dollar.

Today's central parity rate for the yuan was set at 8.0180 to the dollar. The central bank has a yuan-dollar trading band of 0.3 pct on either side of the midpoint.

On Jan 4, China launched an OTC system in the interbank foreign exchange market, allowing two parties to make currency trades on credit without the intervention of a third party.

...more...

[ozymandius]

31. at 8:28am

$1 is worth
¥en 111.7550
Euro 0.7839
Loonie 1.1243

[UpInArms]

34. Dollar rallies across the board

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BB6C91E9F%2DFC75%2D4554%2DB2EC%2DFAF47AE9C9CE%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - The dollar climbed to an almost two-week high versus the yen and rallied against other major rivals early Friday after comments from Bank of Japan governor Toshihiko Fukui were viewed as less hawkish than expected. The BOJ on Friday kept interest rates unchanged at zero percent. Fukui damped expectations of a June rate hike and emphasized that "we did not specifically discuss the end to zero interest rates at this policy meeting," and that "We have no preset idea on the specific timing for exiting zero interest rates." The euro last traded down 0.8% at $1.2744. The dollar surged 1.1% to 111.8 yen. The British pound was down 1% at $1.8746, while the dollar rallied 1.3% to 1.2209 Swiss francs.

[Lydia Leftcoast]

87. Looks like the dollar has hit a new plateau

It's been fluctuating in the same range for about a week after its slide against both the British pound and the yen.

[Ghost Dog]

16. Japan's economic growth slows but beats forecasts

http://asia.news.yahoo.com/060519/afp/060519102836eco.html

TOKYO (AFP) - Japan said its economic growth slowed in the first quarter from the fast pace of late last year as consumer spending cooled and imports rose but it was still a better performance than expected. There were also signs of a further easing of deflationary pressures, which, together with an upgrade from the central bank on the economic outlook, reinforced expectations that an end to zero interest rates is close.

Japan's gross domestic product (GDP) grew 0.5 percent in the three months to March from the previous quarter, when the economy had expanded a revised 1.1 percent, the Cabinet Office said.

On an annualized basis, GDP grew 1.9 percent, slowing from a revised 4.3 percent pace in the previous quarter.

<snip>

The GDP figures were better than market expectations for a 0.3 percent quarterly rate and a 1.2 percent annualized pace.

<snip>

A slowdown in exports and consumer spending were partly behind the weaker overall growth, as were import costs which climbed on the back of rising oil prices and stronger domestic demand. Private consumption, which accounts for nearly 55 percent of the Japanese economy, grew 0.4 percent, stronger than expected but down from an increase of 0.6 percent in the previous quarter.

Japanese Finance Minister Sadakazu Tanigaki said the figures indicated the recovery remained intact but he stopped short of declaring an end to deflation. "The economy continues to grow, supported by demand from the domestic private sector, while individual consumption and business investment increased," he said. On the outlook for prices, he said: "It is improving slowly although I still cannot say the economy has overcome deflation."

The GDP deflator showed a slower year-on-year drop of 1.3 percent in the three months to March after a 1.6 percent decline in the previous quarter.

/more...

[Ghost Dog]

18. Japanese Stocks Rise; Dollar Up vs. Yen

http://asia.news.yahoo.com/060519/ap/d8hmpfao0.html

Japanese stocks rose Friday as investors welcomed Japan's stronger-than-expected economic growth in the first quarter, reversing an early slide.

The Nikkei 225 index added 68.27 points, or 0.42 percent, to finish at 16,155.45 points on the Tokyo Stock Exchange. The index closed 220.49 points, or 1.35 percent, the day before, the seventh decline in eight days.

Stocks got an afternoon lift after they digested a government announcement shortly before the market opened that Japan's economy grew at a better-than-expected 1.9 percent annual rate in the first quarter. It was the fifth straight quarter of expansion, signaling that a recovery is underway after suffering stagnation for more than a decade.

After falling below the 16,000 mark, the Nikkei index "rallied back above (that mark) relatively quickly," said Yuji Nakagawa, the head of the derivatives dealing division at Toyo Securities, referring to solid support around 15,900 sparking bargain hunting.

<snip>

The Topix index, which includes all shares on the market's first section, rose 6.49 points, or 0.40 percent, to 1,638.57 points.

/more...

[UpInArms]

17. HealthSouth to Pay $3 Million in U.S. Accounting Fraud Case

http://www.nytimes.com/2006/05/19/business/19health.html?ex=1305691200&en=a1014c359c33a65f&ei=5088&partner=rssnyt&emc=rss

(free registration or try www.bugmenot.com)

BIRMINGHAM, Ala., May 18 — The Justice Department announced Thursday that HealthSouth, the chain of outpatient rehabilitation hospitals, would pay $3 million and avoid prosecution over a giant accounting fraud discovered at the company three years ago.

"Prosecution would likely have pushed this company into bankruptcy," Alice H. Martin, United States attorney in Birmingham, said in a statement. "By taking this nonprosecution approach, jobs of thousands have been saved, and the company has an opportunity to rebuild shareholder value."

HealthSouth, which agreed to accept responsibility for crimes committed by its executives, must pay the money to the United States Postal Inspection Service's consumer fraud division, enact more stringent internal controls and commit no other illegal acts for three years. In essence, the company is on probation until 2009, Ms. Martin said.

The decision brings an end to an investigation that began in March 2003, when the investigators raided the company's headquarters. Since then, 15 executives, including 5 chief financial officers, have pleaded guilty or been convicted of participating in the fraud. According to more recent company estimates, the fraud's impact was greater than $4 billion.

...more...

[UpInArms]

19. U.S. Accuses Abbott of Inflating Drug Prices for Gov't Healthcare Programs

http://www.nytimes.com/2006/05/19/business/19abbott.html?ex=1305691200&en=2f31cfc99761d348&ei=5088&partner=rssnyt&emc=rss

WASHINGTON, May 18 (Reuters) — The Justice Department said on Thursday that it had joined a whistle-blower lawsuit accusing Abbott Laboratories of inflating the prices of drugs for government health care programs.

The department accused Abbott of reporting inflated prices as far back as January 1991 for pharmaceuticals, leading to higher government reimbursement rates.

Abbott's hospital products division reported prices that were more than 10 times the actual sales prices, the Justice Department said. Medicare and Medicaid had reimbursed Abbott's customers more than $175 million for the drugs, it said.

In 2004, Abbott spun off its hospital products business into an entity called Hospira Inc., according to the company's Web site.

...more...

[AnneD]

58. I'm shocked....

shocked to see there is price gouging here." :sarcasm:
"Your profits, sir." :eyes:
with apologies to Claude Rains....

[UpInArms]

23. Ex-Enron employees: Give 'em 'hard time'

http://money.cnn.com/2006/05/18/news/newsmakers/enron_opinions/

NEW YORK (CNNMoney.com) - "I was the one left holding the bag but Lay and Skilling are able to get their day in court," said Debra Johnson, who worked as a coordinator in the Enron International office until the company's 2001 bankruptcy. "I'm the one left with no insurance. I don't have anything. Nothing."

A jury is entering is first full day of deliberations into whether Enron founder Kenneth Lay and former CEO Jeffrey Skilling are guilty of fraud and conspiracy in the collapse of the Houston-based energy company, and former employees are hoping the punishment fits the crime.

"Skilling and Lay don't know what it's like to go get food stamps and welfare while looking for employment full time," said Johnson. "It's awful. Can I send my rent bills to Mr. Lay and Mr. Skilling?"

Johnson, who now volunteers at her grandchild's school while looking for full time work, fears lenient sentencing. "I'd like to see them do hard time. Where they're afraid to go to sleep at night for fear of what might happen."

Johnson, who worked at Enron from 1994 to 2001 and lives in Houston's inner city MacGregor/3rd Ward area, asks, "If I did what they did, where would I be?"

...more...

[UpInArms]

25. A 2nd Criminal Trial Begins for Former Enron Chief - Kenny Boy

http://www.nytimes.com/2006/05/19/business/businessspecial3/19enron.html?ex=1305691200&en=505af9d4e369fcf3&ei=5088&partner=rssnyt&emc=rss

HOUSTON, May 18 — As a jury spent its first full day deliberating the fates of the former Enron chief executives, Kenneth L. Lay and Jeffrey K. Skilling, a second criminal trial began yesterday, with prosecutors accusing Mr. Lay of repeatedly lying to banks about how he would use $75 million in loans.

Using testimony of a bank loan officer, an investment adviser and a personal assistant who still works for Mr. Lay, prosecutors tried to show that he borrowed millions of dollars and violated federal banking regulations by investing much of the money in stocks after he signed documents saying he would not do so.

He did so "not just a few times, but repeatedly and time and again," the prosecutor, Robb Adkins, said in brief opening arguments.

In an unusual compromise, Judge Simeon T. Lake III broke off these four charges from the main Enron case after Mr. Lay's defense team sought to have the entire case against him separated from Mr. Skilling's. Last year, Mr. Lay waived his right to a jury trial on the bank charges, in part because of the technical nature of banking statutes, meaning the case will be decided by the judge. The charges — one of bank fraud and three of lying to banks — are based on a cache of prosaic loan documents and personal financial records from the early 1990's to 2001. The charges are not related to the fraud and conspiracy charges Mr. Lay faces in the Enron case with his co-defendant, Mr. Skilling.

...more...

[UpInArms]

24. Dell profit falls 18% amid aggressive pricing

http://www.marketwatch.com/News/Story/5Ppf6LQvXkqCJlm76zH5DNj?siteid=mktw&dist=morenews

SAN FRANCISCO (MarketWatch) - Dell Inc. on Thursday reported an 18% drop in fiscal first-quarter profit as sales of its flagship desktop personal computers fell amid aggressive price competition from Hewlett-Packard Co. and other rivals.

Separately, the No. 1 PC maker said it would begin using chips from Advanced Micro Devices Inc. in some of its high-end servers, a major switch for a company that had used microprocessors from Intel Corp. exclusively.

Dell also said it would restructure its operations in a move that will cut costs by $3 billion this year, helping send its shares up more than 4% in evening trading after the results were released.

<snip>

Chief Financial Officer Jim Schneider said that Dell would no longer give specific quarterly earnings or revenue forecasts but said the company expects its fiscal second-quarter results to be "similar to" its first-quarter figures.

...more...

[UpInArms]

27. Commodities: a minor setback or full-blown retreat?

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B75CC641D%2D9544%2D4174%2DACBC%2D225418DE6D3C%7D&symbol=&print=true&dist=printTop

SAN FRANCISCO (MarketWatch) -- If something was on sale but still costs 65% more than it did a year ago, would you buy it?

That's exactly the dilemma traders are grappling with in the commodities markets -- wondering if prices have peaked, are headed for a steep correction, or just experiencing minor setback before moving even higher.

Gold futures rose to an almost 26-year high of $728 an ounce on May 12, up from around $440 a year earlier. Oil echoed the steep climb, peaking at a record above $75 per barrel on April 21 to trade nearly 40% above the same date a year ago. See a gold chart. See a crude chart.

<snip>

Doelling predicts some sort of "catastrophic event on the horizon" -- whether it's a meltdown in the global financial markets, a hedge fund debacle or a "geopolitical" event -- to spur a great deal of buying in precious metals.

"When it occurs, the precious-metals markets will surpass all of the historical highs and reach levels that are beyond belief," he said. "These short-term shakeouts are going to happen far less often than we've seen over the last few years."

...more...

[UpInArms]

49. Gold futures fall to a nearly three-week low

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BA2FA479F%2D9F1B%2D4278%2D8007%2DDEF014DE4F44%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- June gold fell to a low of $657 an ounce in morning trading, its weakest level since May 1, extending losses following a two-session decline of $12. The contract was last at $662.50, down $18.40, or 2.6%. July silver also fell 17 cents to $12.35 an ounce, after tapping a six-week low of $12.08. July copper dropped 17.1 cents, or 4.6%, to stand at $3.54 a pound. It fell to $3.435 earlier, its lowest level since May 8.

[OrangeCountyDemocrat]

62. Can Our Side EVER Win?

What a great Friday this is. No indictment for rover. He's able to continue his job and livlihood as if he has no care in the world.

And to top it all off? Gold is down $27. What a wonderful way to start the weekend.

So where exactly should I put my money? In the stock market, nope....it may crash. The Dollar.....yeah, like I have faith in that. Precious Metals....can I be wrong yet again? I thought this was the one safe area, but I look like a fool when it collapses. Down $80 points in a couple of days is too significant to ignore. I don't know if it's manipulation or what, but it's very very very disheartening.

Oh, the joys of being a Liberal.

[AnneD]

77. Don't be too hard on yourself....

remember:
1) gold always keeps up with inflation. Of course, you want to outpace inflation....BUT YOU WILL NEVER LOSE GROUND WITH GOLD. It can be part of an overall strategy. You now have a life vest (gold). All you need to do is build a boat and you'll be able to sail off into the sunset. Start looking for good startups...maybe in non petro energy (wind, solar), water (purification, location and distribution) to arrid region, or banks that give micro loans to individuals in the 3rd world. IMHO, these and other socially responsible investments can make you match your money to your philosophy.

2) the wheels of justice turn slowly but they do turn. And sometimes you may not think you see justice in this life time but everyone faces it wheither it is in this life, the next life, or at the throne of God. Have you ever wondered why some of these Neocons go through so much grief with their kids and grandkids? Look at the Bush twins and compare them to Chelsey Clinton. It is a drama that takes place all the time. Justice is served-it just may not be served in the way you may think.

[UpInArms]

78. using someone else's crystal ball

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BC88F7071%2D887B%2D4B86%2DA3DB%2DDF532628FDAF%7D&symbol=

From here, "gold remains vulnerable to revisit the $630 (or lower) levels," said Nadler, but there "appears to be no mad rush for the escape hatches" and even if it revisits that level, it won't likely sustain any permanent long-term damage.

"We do expect gold to once again become an attractive buy at the low end of the scale, as investors in the yellow metal are typically focused on the far horizon," he said.

Indeed, "the bulk of the correction in the metals market is now behind us," with the exception of copper, which "has a ways to go to the downside," said Peter Grandich, editor of the Grandich Letter.

He expects gold and silver to "bounce strongly early next week."

[AnneD]

79. UIA....

was it you that compared gold to an old pet dog...that is still one of my fav analogies.

[UpInArms]

98. I'd love to take credit for one your fav's, but I think that was

54anickel.

Me, I just prefer rings on my fingers and bells on my toes :) but I wouldn't mind petting a golden calf in my yard

[AnneD]

103. I knew it was either...

you or 54anickle. Every time gold goes down, I laugh and think of that old pet dog peeing in the house and snicker. I wouldn't get too close to that golden calf....remember what happened the last time some folks got to close...

edited for cautionary purposes.

[OrangeCountyDemocrat]

91. I'm Not Frightened

Fundamentals are still in place. Lots of strange stuff can happen in the remaining 2 2/3 years of this Misadministration. What's a 10% drop really, given the prior rise.

Just searching for some good news from here to start off the weekend, but this week has not provided much.

[UpInArms]

29. Pimco's Gross says Fed likely to pause at 5%

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BACA6BDD7%2DAE95%2D4C29%2D8E5A%2DF75D7B8A6C4C%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) Bill Gross, founder and chief investment officer of Pacific Investment Management Co, Friday said in a television interview that he believes the Federal Reserve is likely to pause in its rate tightening program, leaving the fed funds rate at its current 5% level. "Five percent is about as high as we can go," Gross said. The manager of the world's biggest bond fund noted that Fed Chairman Ben Bernanke's writings indicate that a neutral rate is lower than it has been in the past. Gross also said he does not believe there has been a fundamental shift in the inflation outlook.

[ozymandius]

30. early blather

08:00 am : S&P futures vs fair value: +2.4. Nasdaq futures vs fair value: +8.8. Futures versus fair value suggest the cash market will again try to regain some upside traction following several days of consolidation. Providing some early support, especially helping the Nasdaq get back on track following 8 straight declines, is Dell (DELL), which is up 4% in pre-market trading amid a $3 bln restructuring and a shift to use some AMD chips which could improve profits.

[ozymandius]

37. more

08:30 am : S&P futures vs fair value: +3.0. Nasdaq futures vs fair value: +9.0. A sense that the market is oversold on a short-term basis continues to underpin a positive early tone and signal a higher open for stocks. The absence of notable economic data, which has somewhat silenced activity in Treasuries, places even more emphasis on Dell's news and the impact it's having on the influential semiconductor space. AMD shares are still up more than 9% while rival Intel (INTC), Dell's sole supplier for 22 years, is off about 5.0%.

[UpInArms]

38. Stock set to rally as Snow soothes rate fears

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BDCAD92C5%2D1368%2D40C8%2D99FF%2D9B7108E4F976%7D&symbol=

LONDON (MarketWatch) -- U.S. stock futures pointed to a rebound Friday, after U.S. Treasury Secretary John Snow said in an interview on CNBC that inflation was well contained.

The technology sector may also provide support for gains, with Dell Inc. moving higher after reporting fiscal first-quarter results, but Intel's drop to a multi-year low limit the upside.

S&P 500 futures rose 6.10 points to 1,269.20 and Nasdaq 100 futures improved 9.00 points to 1,603.75.

Dow industrials futures hiked up 36 points to 11,185.

"I think inflation is well contained and will be and inflationary expectations are well contained," Snow said in an interview on CNBC. Snow said global central bank governors have inflation figured out much better than in the past.

Expiration of key futures and options contracts could add volatility into already-jittery markets.

...more...

[ozymandius]

41. It really amazes me that people who make their living in this bidness

actually believe a freakin' word that goomer, Snowjob, says. Di you read about the exchange between Snowjob and Barney Frank? Kos diarist docangel does a good job of relating the story here.

Our Treasury Secretary lies outright and by omission. How in the hell do his words soothe anything?

[UpInArms]

43. Ozy, in the article I cited in

Post #25 http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2294056&mesg_id=2294156

http://www.nytimes.com/2006/05/19/business/businessspecial3/19enron.html?ex=1305691200&en=505af9d4e369fcf3&ei=5088&partner=rssnyt&emc=rss

a question bubbled up - how many banks are loaning money to investors in violation of Regulation U? How leveraged is this market? How much of this is on "margin"?

Mr. Lay and his lawyers have said and repeated again Thursday, though not in the courtroom before Judge Lake, that the banking law Mr. Lay is accused of violating is an arcane Depression-era statute that has to the best of their knowledge, been used only once against a bank customer, more than a decade ago.

Congress passed the laws, now known as Regulation U, after the stock market crash of 1929 in an effort to make it harder for investors to speculate using borrowed money, said John C. Coffee, a law professor at Columbia University in New York. Also, lawmakers believed that it would be better for the economy and job creation if banks lent more money to farmers and manufacturers rather than investors, he said.

"These are standard parts of any loan agreement that you are not going to unlawfully use the proceeds," Mr. Coffee said. "These are not unknown and esoteric, they are plain-vanilla representations," he said about the statements signed by Mr. Lay in the course of obtaining his loan.

[54anickel]

33. Derivatives activity linked to share falls

http://news.ft.com/cms/s/f7f83818-e69c-11da-a36e-0000779e2340.html

The recent sharp falls in stock markets appear to have been exacerbated by an unusual wave of derivatives activity on the part of hedge funds and big banks, some traders on Thursday indicated.

In particular, some banks and big investors appear to have been forced into selling large amounts of equity futures because they have been taking large, leveraged bets on the direction of stock market volatility in recent months – and these bets are now unravelling because the equity markets have recently fallen sharply.

This forced selling has triggered falls in equity market futures prices – and thus hurt the value of the stock markets as well, some observers suggest. “This is an incredibly sensitive topic but it looks as if some big investors are being forced into big moves because they need to hedge these positions,” one senior trader said on Thursday.

It is impossible to track this type of derivatives trading with accuracy, since the investors and banks engaged in these markets are extremely anxious to keep their positions private.

more...

[UpInArms]

36. Treasurys lower ahead of Snow, Fed speakers

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B598D1F80%2D9C7A%2D4B5A%2DB78C%2DA7AF1DC42956%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - Treasury prices were lower in the early going Friday, sending yields slightly higher, as bonds gave back some of the gains registered on Thursday due to soft data reports. With no scheduled economic reports on tap, the market is likely to trade in response to speeches at the Bond Market Association's annual meeting in New York. Scheduled speakers include Treasury Secretary John Snow, Treasury official Randall Quarles and New York Federal Reserve President Timothy Geithner. Earlier Pacific Investment Managment Co. Chief Investment Officer Bill Gross said in a television interview he believes the Federal Reserve is likely to pause in its rate tightening program, leaving the fed funds rate at its current 5% level. Snow, also appearing on CNBC, said he believes inflation is "well contained" and will remain so. The benchmark 10-year Treasury note last was down 6/32 at 100-10/32 with a yield ($TNX 50.70, -0.03, -0.1% ) of 5.08%, up a bit from 5.075% at Thursday's close.

[UpInArms]

45. Printing Press Hums:Fed adds reserves through over-the-weekend system repo

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-19T133145Z_01_N19342384_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, May 19 (Reuters) - The Federal Reserve said on Friday that it added temporary reserves to the banking system through over-the-weekend system repurchase agreements.

Federal funds were trading at 5 percent at the time of the operation, the Fed's target for the benchmark overnight lending rate.

For details on the operation, see http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[UpInArms]

67. Presses Whirling: Fed buys coupons, adding permanent reserves

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-19T155325Z_01_N19427139_RTRIDST_0_MARKETS-FED-OPERATIONS-UPDATE-1.XML

NEW YORK, May 19 (Reuters) - The Federal Reserve said on Friday that it was adding $1.375 billion in permanent reserves to the banking system by buying coupons outright.

The Fed said the settlement date for the coupon purchases was May 22, 2006. The Fed bought coupons with maturities ranging from June 30, 2006 to April 30, 2007.

Five issues were excluded from the coupon pass.

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

Earlier, the Fed added temporary reserves to the banking system through over-the-weekend system repurchase agreements.

...more...

[UpInArms]

48. WTF? US's Quarles warns on large Treasuries positions

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-19T134934Z_01_WBT005410_RTRIDST_0_ECONOMY-TREASURY-MARKETS-URGENT.XML

WASHINGTON, May 19 (Reuters) - A senior U.S. Treasury official warned debt security traders on Friday that any traders who establish unusually large positions in Treasuries can expect close scrutiny from regulators.

"Questionable trading behavior has consequences and can result in increased regulatory scrutiny and referrals to enforcement authorities," Treasury Undersecretary for Domestic Finance Randal Quarles told the Bond Market Association meeting in New York.

"I would encourage any traders that establish especially large positions in any Treasury issues to tread very carefully," Quarles said. A copy of his prepared remarks were released in Washington.

[UpInArms]

63. Quarles says foreigners still love US Treasury debt

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-19T152159Z_01_N19122285_RTRIDST_0_MARKETS-TREASURIES-QUARLES-UPDATE-1.XML

NEW YORK, May 19 (Reuters) - A top official from the U.S. Treasury Department said on Friday there were clear signs U.S. government debt continues to lure foreign investors.

"We see clear evidence that the Treasury market and Treasury securities remain extremely attractive" to foreigners, said Randal Quarles, undersecretary for domestic finance at Treasury.

Foreign central banks have been huge buyers of Treasury bonds in recent years, and own over a quarter of marketable U.S. government debt.

For that reason, fears abound that any drastic pullout of the market could lead to a sharp upward movement in U.S. interest rates, which move inversely to bond prices.

But Quarles dismissed such concerns.

"Strong demand from foreign sources for Treasuries is a source of strength," Quarles said. "Different sources of demand will emerge," he added, offering no specifics.

...more...

[UpInArms]

64. US's Quarles-lower interest rates may come back

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-19T145521Z_01_WBT005412_RTRIDST_0_ECONOMY-TREASURY-RATES-URGENT.XML

WASHINGTON, May 19 (Reuters) - U.S. Treasury Undersecretary Randal Quarles said on Friday that debt markets should be prepared for a return to lower interest rates.

"I'm simply saying, as you look at the architecture of the market and how the Treasury market might evolve over time, that I do think that we do need to be prepared for any eventuality in the future, including the recurrence of low short-term rates," he said in an interview on Bloomberg television at a Bond Market Association conference in New York.

[AnneD]

104. His butt must be sore...

pulling so much cr*p out....:eyes:

[UpInArms]

92. Fed's Hoenig warns of rate overshoot risk-report

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-19T183336Z_01_N19216770_RTRIDST_0_ECONOMY-FED-HOENIG-UPDATE-1.XML

WASHINGTON, May 19 (Reuters) - Kansas City Federal Reserve Bank Chairman Thomas Hoenig said on Friday it was important for the central bank to take into account the lags with which interest rate changes affect the economy, saying inflation already looked set to slow.

"One of the things I've learned is ... that monetary policy works with a lag, but it's hard to appreciate that when you're in the midst of the cycle," Hoenig said in an interview with the Wall Street Journal, published on the newspaper's Web site.

"I'm still very much opposed to allowing inflation pressures to get out ... but you don't want to be so dogmatic that you're not taking into account ... how lagged (monetary policy's) effects are," he said.

Hoenig told the paper that while recent inflation readings were higher than he had anticipated, they were the result of prior accommodative monetary policy. He said the impact of the latest rate increases would be felt in the coming year.

"I thought, given the higher energy prices and strength of the economy, we would see some pass-through from the total (consumer price index) into the core and we've seen that," he said.

...more...

[UpInArms]

93. U.S. Treasuries mixed as curve flattens

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-05-19T180220Z_01_N19494572_RTRIDST_0_MARKETS-BONDS-UPDATE-2.XML

NEW YORK, May 19 (Reuters) - U.S. Treasury prices were mixed on Friday as investors bought long-dated issues and eschewed shorter-dated instruments on the view that the Federal Reserve would keep inflation low by raising short-term rates.

Short- and even medium-term issues, which are more sensitive to near-term changes in Fed monetary policy, fared poorly, possibly because the Fed's promised inflation vigilance -- a boon to long-dated fixed-income instruments -- might require the Fed to raise rates again in June.

Fed funds futures contracts have currently priced in a 66 percent chance of another Fed rate hike in June.

Investors' preference for longer maturities caused the yield curve to flatten, shrinking the difference between two- and 10-year yields to 9 basis points by midday on Friday from 19 basis points a week ago.

<snip>

"The remarks by (Richmond Fed Bank President Jeffrey) Lacker (on Thursday) led to a flattening of the yield curve," said William Sullivan, chief economist at JVB Financial Group. "If the Fed goes public more frequently in the period ahead in an attempt to bolster its inflation-fighting credentials, that could lead to more flattening of the yield curve."

...more...

[UpInArms]

96. Fed's Geithner sees role, limits for regulation

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-19T184320Z_01_N19285682_RTRIDST_0_FINANCIAL-FED-GEITHNER-UPDATE-1.XML

NEW YORK, May 19 (Reuters) - Banks and policy-makers must find the right regulatory balance in order to promote healthy financial activity but also sustain confidence in the system, New York Fed President Timothy Geithner said on Friday.

Speaking at a conference in New York, Geithner said profits in the financial industry remained strong despite the push for heightened regulation that followed a spate of corporate scandals beginning in 2002.

"This suggests that the incentives and opportunities for innovation in our market remain powerful despite concerns about the impact of changes in the overall regulatory environment," he said in prepared remarks.

The collapse of giant firms like Enron and WorldCom triggered a big push for greater regulatory oversight in Washington, culminating in the landmark Sarbanes-Oxley law.

But Geithner also warned of perils in the derivatives industry, citing anxiety over unconfirmed trades in particular.

...more...

[Buttercup McToots]

44. How

do you buy gold?
I have some stock in small/junior gold mining companies...but how do you buy gold?
If this is a stupid question, I apologize, but I am trying to learn...
ps...I love this thread
Thank you

[MsLeopard]

52. A couple of ways

First, I love this thread too and have learned a lot here. As for buying gold, coin shops sell the Golden Eagle (US), Golden Maple (Canadian), and Krugerands (SA) or you can also get them online. Here's a site that's been recommended on this thread before - https://online.kitco.com/sellprice/selling.html.

:hi: Wecome to DU!

[Buttercup McToots]

68. Thanks

Thanks MsLeopard
Is there anywhere that I can go to talk/ask advice
about certain stocks from those minds brighter than mine?
I appreciate the welcome...
B.

[MsLeopard]

76. Well......

Others on this thread can speak about this much better than me, but people here don't give investment advise as the thread is mostly for learning together about the casino, er, I mean stock market.

[Buttercup McToots]

86. Okey Dokey

I found a few sites that discuss...
I's just that I never feel as if I have enough info sometimes...

:hippie:

[T Roosevelt]

102. Try this thread

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=327x249

Also, the Personal Finance and Investing Group is probably a good (though rather slow) place to post questions...

[markam]

55. Apmex.com

Seems to have the lowest prices, fast service and takes credit cards. I have been very pleased with my purchases from them.

[UpInArms]

46. 8:42 EST numbers

Dow 11,147.10 +18.81 (+0.17%)
Nasdaq 2,186.36 +6.04 (+0.28%)
S&P 500 1,264.97 +3.16 (+0.25%)
10-Yr Bond 5.079 +0.06 (+0.12%)

NYSE Volume 147,532,000
Nasdaq Volume 174,384,000

[stop the bleeding]

51. Good morning everyone

thanks as always for the latest info, you guys put other news sources to shame. :)

[AnneD]

69. Amen.....

I watch other business news outlets (they seem to be sales pitches and self congratulatory crap)-but what I get hear is the real 411 that I feel helps me make intelligent choices.
Thanks guys :grouphug:

[UpInArms]

53. 9:16 update

DJIA 11121.98 -6.31
Nasdaq 2183.88 3.56
S&P 500 1263.77 1.96
Rus 2000 717.92 -0.55
10 Yr Bd 5.03 -0.03

(Yahoo is down)

[UpInArms]

61. 11:19 EST numbers and blather

Dow 11,099.95 -28.34 (-0.25%)
Nasdaq 2,170.64 -9.68 (-0.44%)
S&P 500 1,259.18 -2.63 (-0.21%)
10-Yr Bond 5.040 -0.33 (-0.65%)

NYSE Volume 1,109,008,000
Nasdaq Volume 981,231,000

11:00 am : Stocks try to regain some momentum as another sell-off in oil prices offers some relief on the inflation front. Crude oil futures are now down almost 2.0% and trading near session lows at $68.20 a barrel (-$1.25). Unfortunately for the bulls trying to get back into buying mode, the absence of leadership in Energy (-0.7%), as investors consolidate some the sector's year-to-date leading 7.3% gain, is stalling a more convincing rebound for the broader market. DJ30 +3.12 NASDAQ -0.87 SP500 +1.84 XOI -1.0% NASDAQ Dec/Adv/Vol 1379/1348/830 mln NYSE Dec/Adv/Vol 1548/1398/682 mln

10:30 am : Early morning recovery efforts lose some steam as Dow component Intel (INTC 18.13 -0.52) continues to plummet following Dell's decision to use AMD chips, ending a 22-year exclusive agreement with Intel. The stock is now down 2.8% and at its lowest level since April 25, 2003, and the absence of its leadership is preventing even stronger gains in the chip space and weighing modestly on the Dow and Nasdaq.DJ30 -6.73 NASDAQ -1.71 SOX +2.1% SP500 +0.47 NASDAQ Dec/Adv/Vol 1285/1325/674 mln NYSE Dec/Adv/Vol 1397/1431/530 mln

[UpInArms]

66. 11:49 EST - check out this blather - very interesting

Dow 11,099.23 -29.06 (-0.26%)
Nasdaq 2,173.79 -6.53 (-0.30%)
S&P 500 1,260.03 -1.78 (-0.14%)
10-Yr Bond 5.032 -0.41 (-0.81%)

NYSE Volume 1,336,014,000
Nasdaq Volume 1,157,190,000

11:30 am : So much for several days of consolidation creating a sense that stocks are oversold on a short-term basis as the bottom falls out of the market within the last 30 minutes. The Nasdaq was down as much as 0.7%, as investors consolidated some of the semiconductor group's initial 2.4% surge and S&P 500 broke slightly under its 200 day simple moving average at 1257.67. More notably, the Nasdaq, albeit recovering somewhat, is still losing ground and on pace for its ninth straight decline, something that hasn't happened since 1984, and volume has already exceeded 1.0 bln shares, lending some conviction behind bargain hunters' apprehension to find stocks attractive at current valuations. DJ30 -10.25 NASDAQ -3.77 SOX +1.7% SP500 -0.02 NASDAQ Dec/Adv/Vol 1811/947/1.05 bln NYSE Dec/Adv/Vol 1900/1102/876 mln

[UpInArms]

70. 12:41 EST must've been some good news in the past 10 minutes (?)

Dow 11,138.21 +9.92 (+0.09%)
Nasdaq 2,186.83 +6.50 (+0.30%)
S&P 500 1,266.44 +4.63 (+0.37%)
10-Yr Bond 5.040 -0.33 (-0.65%)

NYSE Volume 1,636,174,000
Nasdaq Volume 1,384,015,000

[stop the bleeding]

73. i just notice in uptick in quite a few charts as well

looks to be taking a breather right at the moment

[Roland99]

81. Faeries came back from a late spring break

[stop the bleeding]

82. no shit some of my charts just

went skyward :)

[UpInArms]

94. SpecimenFred has said that when all the TalkingFedHeads come out

to spray their crap - the weeds blossom.

Well, he didn't put it quite that way... but I'm certain that is what he meant :D

[AnneD]

105. Screen Clean Alert!!!

:spray: U so bad.....:rofl: Was that the Reader Digest version of the speech.

[AnneD]

83. Or...

maybe the pumps are finally keeping the water level to the C deck of the Titanic.:evilgrin:

[stepnw1f]

85. I'm Inclined to Believe That as Well

our system in fucking broke. The more they meddle, the more they harm the system. An old cartoon comes to mind where one person's fingers are used to plug all the many holes on a bursting dam.

[wordpix]

97. 2:50 numbers in black

Dow 11,146.14 +17.85
Nasdaq 2,189.93 +9.61
S&P 1,267.11 +5.30
10-Yr Note 100.50 +0.03

2:51 PM ET.

[UpInArms]

99. 3:15 EST TalkingFedHead MoJo wearing off?

Dow 11,113.39 -14.90 (-0.13%)
Nasdaq 2,181.84 +1.52 (+0.07%)
S&P 500 1,263.10 +1.29 (+0.10%)
10-Yr Bond 5.056 -0.17 (-0.34%)

NYSE Volume 2,535,110,000
Nasdaq Volume 2,114,057,000

3:00 pm : Might it be deja vu? It's hard to say, but right now, the market is following a similar course from yesterday where it struggled to hold gains. There is still plenty of time left in today's session to forge a winning effort, but in the past hour the major indices have been retracing the gains they have made in the afternoon trade. The pullback has been orderly, but fairly broad-based. At this juncture, the large caps are outperforming their small-cap brethren as evidenced by the 0.3% gain in the S&P 500 versus a relatively flat showing for the Russell 2000.DJ30 +7.68 NASDAQ +5.30 SP500 +3.96 NASDAQ Dec/Adv/Vol 1424/1561/1.99 bln NYSE Dec/Adv/Vol 1397/1814/1.69 bln

2:30 pm : Market is still holding onto the bulk of today's gains as buying remains widespread across most areas. Gold futures, however, recently closed down 3.5% and posted its first weekly decline in more than two months. Also succumbing to consolidation spurred by a rally in the greenback, which diminished the desire to own dollar-denominated commodities across the board, was Copper, which lost 6.5% and is now 14% off last week's highs. Rising commodity prices and rising interest rates are two reasons we've maintained a Neutral market view since early February. DJ30 +34.89 NASDAQ +15.28 SP500 +8.01 NASDAQ Dec/Adv/Vol 1317/1657/1.87 bln NYSE Dec/Adv/Vol 1202/2000/1.63 bln

[Roland99]

101. 4F: Friday Faeries Fall Flat

[UpInArms]

106. closing numbers and blather

Dow 11,144.06 +15.77 (+0.14%)
Nasdaq 2,193.88 +13.56 (+0.62%)
S&P 500 1,267.03 +5.22 (+0.41%)
10-Yr Bond 5.054 -0.19 (-0.37%)

NYSE Volume 3,063,672,000
Nasdaq Volume 2,585,983,000

The market bounced back after several days of losses as some upbeat news from tech giant Dell and a sense that the market was oversold on a short-term basis renewed some enthusiasm for stocks and attracted bargain hunters looking for reasonable valuations and a market bottom.

Providing the bulk of early momentum from a news standpoint, since there was nothing in the way of economic data scheduled, was Dell (DELL 24.57 +0.62). Despite merely matching lowered expectations, DELL surged 2.6% amid reports that a $3 bln restructuring and a shift toward using AMD chips for some its servers may improve profitability at the struggling PC maker. The stock, fresh off hitting a three-year low Wednesday and under pressure ever since it warned Wall Street last week that sales and profits would miss forecasts, eased some of the uncertainty about a possible slowdown in tech spending. More notably, even though the tech-heavy Nasdaq only posted a modest gain and is still in negative territory for the year, Dell's news helped the Composite snap an eight-day losing streak. The index has not fallen for a ninth straight day since 1984.

Also helping the influential Technology sector was the return of some convincing leadership from chip stocks. Even though Dell's decision to end an exclusive 22-year agreement with Intel (INTC 18.36 -0.29), which left INTC shares flirting with new lows not seen in more than three years before closing at a new 52-week low, Intel's decline was more than offset by an 11.5% surge in Advanced Micro Devices (AMD 34.95 +3.60). A 13% surge in shares of Marvell Technology Group (MRVL 56.22 +6.51), which beat forecasts and raised its FY06 revenue outlook, also helped the PHLX Semi Index claw its way back into the plus column for 2006 with a 3.2% gain. Marvel and Intel are both suggested holdings in our Active Portfolio.

With rising commodity prices and higher interest rates playing into why we've maintained a Neutral market view since early February, investors got some relief on both fronts. Gold futures closed down 3.5% at $657 an ounce and posted its biggest weekly decline since 1983, which could signal an end to the precious metal's rally and attraction as a hedge against inflation. Crude oil prices fell 1.4% to $68.45 a barrel amid eased worries about Iran's nuclear ambitions while Treasuries recorded their biggest weekly gain in more than a year, knocking the yield on the 10-yr note down to 5.04%. However, the lack of conviction on the part of buyers as reflected in the market internals, it's evident that investors are still somewhat cautious as we enter a seasonally sluggish period for stocks with inflation concerns and uncertainty about Fed policy still acting as an overhang. BTK +0.8% DJ30 +15.77 DJUA +0.9% DOT +0.2% NASDAQ +13.56 NQ100 +0.9% R2K +0.6% SOX +3.2% SP400 +0.2% SP500 +5.22 XOI +0.6% NASDAQ Dec/Adv/Vol 1331/1704/2.55 bln NYSE Dec/Adv/Vol 1315/1932/2.08 bln

[AnneD]

107. Looks

like a dead cat bounce to me.:evilgrin: I get a higher interest rate on my pass book savings account.