STOCK MARKET WATCH, Tuesday 30 May

[ozymandius]

Tuesday May 30, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 967 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1984 DAYS
WHERE'S OSAMA BIN-LADEN? 1684 DAYS
DAYS SINCE ENRON COLLAPSE = 1645
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 5
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 26, 2006

Dow... 11,278.61 +67.56 (+0.60%)
Nasdaq... 2,210.37 +12.13 (+0.55%)
S&P 500... 1,280.16 +7.28 (+0.57%)
Gold future... 651.00 +2.50 (+0.38%)
30-Year Bond 5.16% -0.02 (-0.29%)
10-Yr Bond... 5.05% -0.02 (-0.43%)






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 Tim W. Wood

THE DOW REPORT
A Brief Review of the Industrials

The May 10th peak in the stock market was expected and pretty much occurred right on time in accordance with the clustering of the various cycles that were due at that time. On May 11th the Cycle Turn Indicator produced a short-term sell signal warning of the recent decline. More recently, I have been telling subscribers that short-term cycles were coming due and that we should be expecting a bounce. That bounce is now underway and we are monitoring conditions in order to see if this bounce can evolve into a more substantial move or if it is destined to be a failure followed by more weakness. Our first line of defense and short-term guide on this is the short-term Cycle Turn Indicators. I have plotted the short-term Slow Cycle Turn Indicator along with the Industrials below and it has thus far not confirmed the current bounce. If this bounce should conclude prior to this indicator turning positive, then more weakness will lie dead ahead. On the flip side, if this bounce can turn the intermediate-term version of the Cycle Turn Indicator back up, then a run at the old highs will be underway.

-cut-

But, at the same time, there are troublesome issues that continue to plague the market. One issue is we have longer-term cycles that should begin to weigh on the market a bit later in the year as the 4-year cycle is scheduled to begin its descent. Another issue of concern is the poor internals. I have shown you this chart before, but it’s time for another look at it. Note that this indicator peaked in June 2003 and the first divergent top with price occurred in conjunction with the February 2004 price top. Since that time, every intermediate-term advance has occurred with yet another divergent high by my intermediate-term Advance-Decline line. This divergence or non-confirmation is not a healthy sign. In fact, this is exactly what happens as the market presses into the 4-year cycle top. So, not only do we have a significant cyclical turn ahead, we are also seeing the normal internal breakdown that typically occurs as the market moves into the 4-year cycle highs. The one difference this time around is the duration of this internal breakdown. The fact that the internals have not confirmed the recent highs makes this non-confirmation now 3 years in the making. I have said this before and I’ll say it again; the only reason that the market has been able to hold up under these conditions is because of the extreme amount of Liquidity that has been pumped into the system. This will not work forever as the underlying conditions will ultimately win out.

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

[Jack from Charlotte]

117. Inflation under Bush has boosted Dow....

From roughly 10,600 the day the AWOL/moron took office until now, 5 1/2 years later with ZERO growth and just the 2.5 % annual rate of inflation, the the Dow would be at 12,117.

Got that? Adjusted for inflation under these idiots the rate of return is still well below zero for these 5 1/2 years.

[UpInArms]

2. daily dollar watch

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

Last trade 84.27 Change -0.44 (-0.52%)

Euro Breaks Out on Snow Speculation

http://www.dailyfx.com/story/dailyfx_reports/daily_brief/Euro_Breaks_Out_on_Snow_1148982048566.html

The EUR/USD rose above the 1.2850 level in early European trade today spurred by speculation that Don Evans, the former Secretary of Commerce may be the new replacement for the Treasury Secretary John Snow. The FX market tends to divide the Secretaries of Treasury as “industrial” or “financial” types. Donald Regan and Robert Rubin both came from the financial sector and presided over periods of dollar strength which was beneficial to US capital markets. Whereas Former Secretary Paul O’Neil, current secretary John Snow and Mr. Evans (who hails from the oil and gas industry) are all viewed as “industrial” Secretaries of Treasury favoring a weaker dollar which in turn is of great help to the US manufacturing sector.

Speculation on Bush cabinet changes aside, the EUR/USD is also getting a lift from firm Euro-zone data which included yesterday’s sharp rise in German consumer confidence and today’s faster than expected growth in M-3 money supply. The money supply figures conform the need for aggressive ECB action to curtail the inflationary pressures building up in the system. Today’s US Consumer Confidence reading may push the pair higher yet, if as expected the number registers a sharp drop to 100 from prior months reading of 109.

Meanwhile in Japan today the data was relatively mixed, although the overall tone still suggests a bullish path as jobless rate remained at 4.1% with Job to Applicant ratio rising to 1.04. The news bodes well for future consumption trends in the Japanese economy as the prospect of more jobs and higher wages should continue to fuel the economic recovery. Other data printed slightly below forecast Industrial Production, Small Business Confidence and Overall Household spending all missed their marks. Nevertheless none of the results were materially weak and suggest more of pause in growth cycle, most likely caused by the appreciating yen, rather than any structural problem within the economy itself.

...more...

US Dollar Gets Punished

http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/US_Dollar_Gets_Punished_1148978755048.html

EUR/USD – EUR/USD continues to digest gains from the 1.1825-1.2971 rally. Since the 1.2971 high on 5/15, price has touched 1.2691/1.2700 4 on four separate occasions and immediately rebounded, arguing that a bottom may be in place for a test of resistance levels going forward. The latest test of the 1.2700 figure on Friday has led to a rally above 1.2800 with the next important resistance at the 5/24 high of 1.2890. Current price sits just above Friday’s high of 1.2832. Support stems from yesterday’s high at 1.2767. Hourly oscillators are overbought and price is approaching the downward sloping resistance line from 1.2971. This gives scope to some consolidation of the rally above from 1.2700 to above 1.2800 before a test of the mentioned resistance levels plays out.

<snip>

USD/JPY – The break below support from the upward sloping trendline on the hourly combined with the double top from the highs on Friday and tonight at 112.75/78 favor a bearish bias. Supporting this view is that 21 period RSI on the daily is turning over again and remains below its midpoint of 50. Support is at the confluence of the 38.2% fibo of 108.96-112.94 / 5/26 low at 111.42/44. We focused on the fact last week that the pair’s inability to break above 113.00 (making highs at 112.93 (5/22), 112.96 (5/24), and 112.94 (5/25)) was nothing but bearish for USD/JPY and this view is maintained. With hourly oscillators oversold (RSI < 30), a bounce to the psychological 112.00 level / 5/29 low at 112.15 is a possibility.

<snip>

USD/CAD – USD/CAD is breaking down and has also broken a supporting trendline on the hourly. The pair is currently testing the psychological 1.1000 figure. Oscillators on the daily are all bearish again after the recent decline from 112.64. MACD is sloping down and CCI is in negative territory. Further, the recent correction of the 1.1771-1.0969 decline topped at the 38.2% fibo at 1.1272 – compelling evidence of a top. The next level of support is the 5/9 low at 1.0969. If support holds at 1.0969, then it is possible that the overall correction is unfolding as an A-B-C flat pattern where all 3 waves within the correction are of similar length and time. The first wave up from 1.0969 to 1.1272 took 8 days and this is the 7th day of the decline from 1.1272. If this scenario plays out, then we would expect another test of 1.1272 late next week before the overall downtrend resumes. For more on USD/CAD, see Weekly Chart Analysis at http://www.dailyfx.com/story/charting_center/weekly_chart_analysis/Short_Term_and_Long_Term_1148656347381.html.

...more...

[UpInArms]

18. Dollar slides on talk of Snow's replacement-Evan/Oil&Gas - favors weaker $

http://news.yahoo.com/s/nm/20060530/bs_nm/markets_forex_dc

LONDON (Reuters) - The dollar fell against the yen and euro on Tuesday after a British newspaper reported that Don Evans, a possible successor to U.S. Treasury Secretary John Snow, was likely to favor a weaker dollar.

The Times said in an article in its online edition that Evans, a former U.S. commerce secretary, may fit the mold of past Treasury secretaries who have favoured a weaker dollar, given his political background.

The newspaper said that in the past 30 years "those with an industrial or political background ... have been quite happy, indeed eager, to see the dollar decline" in order to help American exports, and that Evans would fit in to that category.

Republican sources said last week that Snow will likely step down in June, and U.S. publications such as the New York Times and the Wall Street Journal have recently reported that Evans is a leading contender to succeed Snow.

<snip>

"I think it's driven by some speculation on a lower dollar ... The initial trigger was the Times today which says that Don Evans will likely be the next U.S. Treasury Secretary and that he will be unlikely to be a paid-up member of the strong dollar camp," said Benedikt Germanier, FX strategist at UBS in Zurich.

...more...

[UpInArms]

19. New Rumor? Goldman CEO Paulson in line for Snow's job

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B76010E14%2D9946%2D45DB%2DA874%2D04E8723D6009%7D&symbol=

NEW YORK (MarketWatch) -- Henry "Hank" Paulson, the chairman and chief executive of Goldman Sachs Group, is in line to replace Treasury Secretary John Snow, according to a report Tuesday by The Wall Street Journal.

The article cited a senior White House official as saying President Bush is leaning toward the appointment of Paulson to succeed Snow in the top Treasury post.

Calls by MarketWatch to Goldman Sachs' press office were not immediately returned.

The U.S. dollar rose off its lows against the yen, but still down 0.3% vs. yen at 112.19.

The euro rose 0.7% against the U.S. dollar at $1.2839.

Speculation has been rising that Snow would be replaced, and Paulson's been mentioned as a candidate. But a weekend report indicated that Don Evans, a Bush confidant and former Commerce secretary, was likely to take over from Snow.

The naming of Paulson could signal a shift away from the United States' strong-dollar policy as championed by Snow.

...more...

[UpInArms]

23. Treasury's Snow resigning, Paulson to replace - announcement at 9:15 EST

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-30T122328Z_01_WAT005685_RTRIDST_0_ECONOMY-BUSH-URGENT.XML

WASHINGTON, May 30 (Reuters) - President George W. Bush will announce on Monday that Treasury Secretary John Snow is resigning and that he will nominate Goldman Sachs chairman Henry Paulson to replace him, a senior administration official said.

The announcement will be made in the White House Rose Garden at 9:15 a.m. (1315 GMT).

[UpInArms]

24. Dollar off lows on reports Paulson to Treasury

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B77E768CF%2D6AB9%2D4E8A%2DA0D4%2DAEA59D828FA0%7D&symbol=

LONDON (MarketWatch) -- The U.S. dollar recovered some losses Tuesday, following reports that Goldman Sachs chief Henry Paulson will become the next Treasury secretary.

The dollar had been heavily sold off earlier in the session on concern that Donald Evans, the former Commerce secretary, would get the nod to replace John Snow at Treasury.

But The Wall Street Journal and CNBC television were reporting that Paulson, instead, will get the nod. See story.

The currency move may be tied to Paulson's background in the financial-services industry, rather than Evans' history as a Texas oil businessman, as Treasury secretaries with financial backgrounds tend to argue more vehemently of the need for a strong dollar.

<snip>

The dollar started the year at 117.57 yen, and the euro was at $1.1831.

...more at link...

[UpInArms]

26. Paulson "may stop paying lip services to a faux strong dollar policy"

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7BD3967B35%2D6C9E%2D44A2%2DB8F8%2D328F823E1E80%7D&dist=newsfinder&symbol=&siteid=mktw

NEW YORK (MarketWatch) - The dollar remained lower against major rivals early Tuesday, but was off lows of the day, following media reports that Goldman Sachs chief Henry Paulson will get the nod as next Treasury Secretary, and not Donald Evans as markets had previously expected. "I think that Paulson would be a good candidate. He's pro business and may push to relax some of the protectionist measures that the Bush administration is negotiating. In addition, he may stop paying lip services to a faux strong dollar policy," said Kathy Lien, chief strategist at FXCM. The dollar had been heavily sold off earlier in the session on concern that Evans would not resist a weaker dollar. The euro rose 0.6% to $1.282, while the dollar fell 0.1% to 112.39 yen.

[UpInArms]

32. PIEHOLE CRAPSPEW-FEST (get your barf bags!)

9:21 AM ET 5/30/06 SNOW LEAVES WITH 'GREAT SENSE OF SATISFACTION'

9:17 AM ET 5/30/06 BUSH: AMERICAN ECONOMY IS POWERFUL, PROSPEROUS

9:18 AM ET 5/30/06 BUSH: PAULSON WILL BE TOP ECONOMIC ADVISER

9:16 AM ET 5/30/06 JOHN SNOW HAS SHOWN STRONG LEADERSHIP, BUSH SAYS




(I brought a few extras)

[UpInArms]

38. NEWSMAKER-Tireless salesman Snow sometimes missed mark

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-05-30T133343Z_01_N30409511_RTRIDST_0_ECONOMY-SNOW-NEWSMAKER.XML

WASHINGTON, May 30 (Reuters) - John Snow, the former railroad executive who took over the U.S. Treasury Department in 2003 after the ousting of predecessor Paul O'Neill, will be remembered as a tireless salesman for the Bush administration.

Not all his efforts succeeded. His long bid to push a change in Social Security went nowhere and Republicans were relentless in their criticism that he had failed to convince Americans of the U.S. economy's strength.

But Snow, who the White House announced on Tuesday would step down, can point to progress in persuading China to at least begin moving toward a more flexible currency regime.

After two industrialist Treasury chiefs with mixed records, the administration turned to Wall Street for his successor. The White House said Goldman Sachs Chairman Henry Paulson was President George W. Bush's nominee to succeed Snow.

In early 2006, Snow took some heat for the administration's embarrassment over the Dubai Ports World deal, which caused an uproar over security that only subsided when DP World, owned by the United Arab Emirates, agreed to sell its U.S. terminal assets.

<snip>

O'Neill's skepticism of White House-backed tax cuts led to his ouster in December 2002.

...more...

Key word: Salesman

When you're selling snakeoil, the buying market is really limited to the stoopid.

[54anickel]

33. Wait a minute...Bush is passing up on his Texas buddy, the guy he

named as designated survivor for the '04 SOTU address? The old oil buddy from W's younger days? The 2000 campaign chairman?

:wtf: Are we in that much doo-doo? IS the "brown-matter" about to hit the fan? Or is he simply tossing a bone to Wall Street?

[UpInArms]

35. Maybe the tete-de-tete at Camp David was not so positive? .. eom

[KoKo]

48. Also odd in that Goldman Sachs signed onto the

Business Leaders calling for Rummy to be fired, that was in the NYT's last week. Goldman Sachs seems to support liberal causes and it would seem odd that Bush would appoint Paulson if that's the case. I don't know anything about Paulson, though.

Any of you remember the Business Leaders for Sensible Priorities ad..It was posted here on DU. I have so much scandal crap saved...but forgot to save that one...I'll look for it though if anyone is interested.

Would be a very odd move if Paulson isn't one of their "in crowd."

[UpInArms]

51. Paulson will play like TonySnowJob -

"I'm too new to answer that question" and the presstitutes will give him a pass :eyes:

[KoKo]

56. I found the group and site....."Business Leaders for Sensible Priorities"

They took out an ad calling for Rummy's resignation...and the Business leaders include some really good people. Goldman Sachs has also done some work for Al Gore. They are listed in the "About Us" link from the site.

Anyway...very strange things are going on. I imagine Paulson is a typical Bush sychophant...but still his company seems to have supported causes i.e. calling for Rummy to Resign that usually would cause retaliation from the Bush Bots. :eyes: :crazy:

-------------------------

Business Leaders For Sensible Priorities

Business Leaders for Sensible Priorities was formed in 1998 because top American businesspeople believe that the federal government's spending priorities are undermining our national security. Advised by retired admirals and generals, Business Leaders for Sensible Priorities' 650 members include the present or former CEOs of Bell Industries, Black Entertainment Television, Goldman Sachs, Men's Warehouse, and Phillips Van Heusen - as well as Ted Turner and Paul Newman.

Military Advisory Committee

Our Military Advisory Committee has decades of experience analyzing defense requirements. They have concluded that this shift can take place while still maintaining the world's strongest military, sufficient to meet America's vital interests. The MAC includes: Vice Admiral Jack Shanahan (USN, ret) former commander of the North Atlantic Fleet; former Assistant Secretary of Defense Lawrence Korb (under President Reagan); Admiral Stansfield Turner (USM, ret.) who served as CIA Director, and others.

http://www.sensiblepriorities.org/who_we_are.php

[UpInArms]

58. Goldman shares slip as CEO nominated to be Treasury chief

maybe the BFEE will just "punish Goldman Sachs"?

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B6C56A949%2D1955%2D4F08%2DB8DB%2D3FAD2F2E41C4%7D&symbol=

NEW YORK (MarketWatch) -- The nomination of Goldman Sachs Group Inc.'s top executive to succeed Treasury Secretary John Snow failed to lift financial stocks in early trading Tuesday, as financial markets retreated broadly.

President Bush officially tapped Henry Paulson, Goldman's chairman and chief executive, before the start of trading. Paulson had been viewed as a frontrunner to succeed Snow for months. See full story.

Shares of Goldman Sachs (GS : 151.25, -1.69, -1.1% ) fell 2% to $149.88 in morning trading.

...more...

:eyes:

[KoKo]

70. Maybe they just don't like a "Day Trader" replacing Paulson....

Sheesh...that would worry me, too...

BTW: Heard Gene Sperling on C-Span saying he thought Paulson would be good if Bush would listen to him and that was a question.. Sperling also mentioned that Bob Rubin was Goldman's top executive when Clinton tapped him...so that would seem to say Paulson isn't a Bush Bot... (I'm wondering if financial community is seeing recession coming that they would have forced Paulson on Bush.) :scared: Seems Don Evans would have been a better fit for the Bush family...
----------------------------------
Although Blankfein rose up the ranks as a trader, not an investment banker, "we do not expect any meaningful change in Goldman's strategy," Trone said. "We continue to believe the company will continue to vigorously pursue business where opportunities present themselves, whether trading, investment banking, private equity, asset management, etc.

[Roland99]

71. Well, you called it for Paulson a while back

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2196944&mesg_id=2197496


;)

[54anickel]

74. Yeah, but that was just a lucky guess and Evans wasn't even mentioned

as a "contender". I wonder if W wanted Evans, but someone else put the Kaboosh on it. Meanwhile, Zoellick has a hissy fit and plans to leave because he wanted that job and wasn't gonna get it.

http://uk.gizmodo.com/baby,crying,tantrum-thumb.jpg

[Roland99]

75. Good riddance to bad rubbish (Zoellick).

And, yeah, I was really surprised Evans didn't get the nod. While Paulson won't be an O'Neill, at least he isn't an example of just out and out pure cronyism.

[54anickel]

77. I'm guessing someone over rode Bush and his cronyism and are

hoping for a replay of the "Rubin years". :eyes:

[54anickel]

84. Mr. Wall Street goes to Washington

http://www.csmonitor.com/2006/0531/p01s03-uspo.html

snip>

"What the overall economic numbers show is that there's a particularly upper- and middle-income group that continues to do very well, and the economy reflects how that better-to-do group is faring," says Mr. Jacobe. "What is happening in terms of middle- and lower-income groups isn't reflected in average economic data as much as it is in polling data."

One way Mr. Paulson can help to change the perception of the economy is to work through Wall Street. A confident Wall Street could help boost confidence on Main Street. Analysts compare him to Robert Rubin, Treasury chief under President Clinton, and also a former chairman of Goldman Sachs. Mr. Rubin often stressed that it was in America's interest to have a strong dollar. The strong dollar helped spur the economy by providing less-expensive raw materials from abroad and lower prices for consumers.

"That policy was good in the 1990s because the Fed was experiencing a very strong economy - unemployment fell below 4 percent - and there was concern about rising prices and inflation," says Richard DeKaser, chief economist at National City Corporation in Cleveland. "A strong dollar helped control inflation and reduce prices."

Today, however, one of the major economic issues facing the administration is managing the large trade deficit. Under President Reagan, Treasury chief James Baker engineered a devaluation of the US dollar. "The US is confronting a risk of significant further declines in the dollar," says Mr. DeKaser. "For this reason is a very good selection at this point in time."

Paulson could well encounter some kind of financial crisis in the next year or two as the effect of rising interest rates courses through the economy, says Mark Zandi, chief economist of Economy.com. "There was always some concern about former Treasury Secretary John Snow's ability and stature to play that kind of role," says Mr. Zandi.

During a time of large federal budget deficits, Paulson may be under pressure to make the president's tax cuts permanent. "Making the tax cuts permanent is Bush's economic legacy, and therefore Paulson has to wake up every morning figuring out how to make that happen," says Michael Franc, an analyst at the Heritage Foundation, a conservative think tank in Washington.

more...

[UpInArms]

60. a peek at the "terminally ill" dollar

Last trade 84.16 Change -0.55 (-0.65%)

Settle Time 13:00 Open 84.72

Previous Close 84.71 High 85.21

Low 84.08 2006-05-30 10:42:12, 30 min delay

[54anickel]

88. The U.S. $ And It's Prospects

http://www.kitco.com/ind/AuthenticMoney/may262006.html

The O.E.C.D. has issued warnings that are positive for gold and silver and platinum. The O.E.C.D. has stressed that governments are unable to deal with deteriorating global current account balances, which could, if allowed to continue, lead to “an adjustment which could turn unpleasant” and even “brutal”.

The E.C.B. was advised by the O.E.C.D. against raising interest rates but the Fed was encouraged to continue its interest rate raising. China was urged to raise rates and allow its currency to appreciate.

The O.E.C.D. expects oil prices to stay high. They feel that the major downside of globalization was increasing oil and commodity prices.

We mention this as support for our own stance on the decaying global economy, a theme we have followed for some considerable time. We continue to do this as we see World leaders continue to posture their own nations interests in a global economy desperate for them to act in concert in the interests of the globe. We don’t see this happening as the very nature of national politics and leadership can only consider global interests, once national interests have been satisfied. As a prime example of this we include this item on John Snow, U.S. Treasury Secretary, where his very words could not have made this point clearer:

snip>

The chipping away at the use of the $ for all oil contracts worldwide is about to begin in earnest! The first place we expect the numbers will be reflected will be the figures of Treasury purchases each month. Last month saw the U.K. and Caribbean Banks buy a disproportionately large amount of U.S. Treasury assets. It appears that this is part of a international $ liquidity management programme. If this is correct the two centers will buy even more from now on, as other foreigners reduce their purchases of the U.S.$. The process may take some months to be fully visible, but we are watching to see just how the waning role as global reserve currency affects the U.S.$ exchange rate.

more...

[UpInArms]

3. Today's Report:

May 30 10:00 AM
Consumer Confidence May

Report -
Briefing.Com expects 104.0
Market expects 100.0
last report 109.2
revised -

[UpInArms]

45. U.S. May consumer confidence falls to 103.2 vs 109.8 April

10:00 AM ET 5/30/06 U.S. MAY CONSUMER CONFIDENCE ABOVE CONSENSUS 100.7

10:00 AM ET 5/30/06 U.S. MAY CONSUMER CONFIDENCE FALLS TO 103.2 VS 109.8 APRIL

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B01677CE7%2DC36A%2D4401%2DA6EA%2D02DF0D3F0C2A%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) -- U.S. consumer confidence slipped in May after hitting almost a four-year high in April, the Conference Board said Tuesday. The consumer confidence index fell to 103.2 in May from a revised 109.8 in April. The decline was not as large as forecast. Economists expected the index to slip to 100.7 from the initial reading of 109.6 in April. The present situation index fell to 132.5 from 136.2. The expectations index fell to 83.7 from 92.3, its lowest level since October.

[UpInArms]

50. Consumer Expectations @ 83.7 (lowest since October)

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B4E2536A1%2DF391%2D4529%2D8D52%2D9C548D4C6136%7D&symbol=

excerpt:

Consumers were less optimistic about the future.

The expectations index slipped to 83.7 in May from 92.3 in the previous month. It is now at its lowest level since October.

"Apprehension about the short-term outlook for the economy, the labor market and consumers' earning potential has driven the expectations index down to levels not seen since the aftermath of the hurricanes last summer," said Lynn Franco, director of the Conference Board's consumer research center.

...more...

[ozymandius]

4. Stock futures down after long weekend

LONDON - U.S. stock market futures were bid sharply lower Tuesday, with interest-rate fears, dollar weakness and Wal-Mart Stores' disappointing May sales combining to unsettle markets.

Dow Jones futures were recently down 49 points, S&P 500 futures dropped 6.3 points, and Nasdaq futures fell 12.8 points.

U.S. stock markets are coming off three consecutive gains after upgrades for companies including General Motors and Goldman Sachs, with the Dow industrials ending 67 points higher Friday.

But Wal-Mart Stores' lackluster 2.3 percent May same-store sales rise - at the low end of company forecasts - dented chances for a fourth rise in a row.

more

[ozymandius]

16. Economic news could trouble Wall Street

NEW YORK - Although Wall Street has shown signs of recuperating from its recent selloff, this week's batch of critical economic reports could easily shatter investors' fragile optimism and send stocks sliding again.

With few earnings reports due, the market will once again be fixated on economic growth and inflation as traders judge the possibility of more interest rate hikes from the Federal Reserve.

Ever since the Fed warned earlier this month that higher rates could be needed to thwart the impact of surging energy prices, investors have been more cautious than usual about letting their expectations build. Last week's erratic trading was evidence they're still hesitant about putting money in the market; stocks had simply fallen so much that they were due for a bounce.

Analysts say that uncertainty will linger until the Fed makes its next move on interest rates at its June 28-29 meeting. Until then, Wall Street can only guess the odds of more rate hikes, taking cues from reports like this week's data on worker productivity, job growth and manufacturing activity.

more

[UpInArms]

21. Wal-Mart sales disappoint - high cost of gasoline and utilities cited

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-05-30T121119Z_01_N30396577_RTRIDST_0_MARKETS-STOCKS-UPDATE-1.XML

excerpt:

Wal-Mart on Saturday estimated May sales rose 2.3 percent at its U.S. stores open at least a year, the low end of its forecast, and said sales were held back by steep gasoline and utility prices. The world's biggest retailer had forecast growth in the range of 2 percent to 4 percent. For details, see .

...more...

[UpInArms]

46. Wal-Mart feels pressure of weak same-store sales

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BCAED01F6%2D9733%2D41C8%2D9352%2D1CB313166EA7%7D&symbol=

CHICAGO (MarketWatch) -- Wal-Mart Stories Inc. estimated that May's same-store sales results rose only 2.3%, as customers struggled with higher energy and utility prices.

<snip>

On Saturday, the world's largest retailer repeated what Chief Executive Lee Scott said at least twice publicly last month: that his consumers were increasingly finding themselves in a paycheck-to-paycheck pinch, meaning that they run out of spending money just ahead of paydays at the first and middle of the month.

Retailers often see tics in what is referred to as a "paycheck cycle" and Wal-Mart said in its recorded sales message that the rotation had become "more pronounced" in May, as receipts at stores open longer than a year rang up at the low end of its previous projection of a 2% to 4% increase.

Wal-Mart saw this phenomenon hit hard three years ago as many consumers dealt with job cuts and the uncertainty surrounding the U.S. invasion in Iraq.

...more...

[kineneb]

73. MallWart customers

often don't have much slack in their budgets. When gas, food, and utilities go up, their extra cash goes away. I imagine WM will begin to show more losses as gas goes up and the dollar goes down.

...not one of their customers, but I now know what is meant by "situational poverty"...

[54anickel]

28. Walking on egg shells

Futures point to sharply lower open Tuesday on concerns about upcoming Fed minutes, lower dollar and new problems for shares of GM, Wal-Mart.

http://money.cnn.com/2006/05/30/markets/stockswatch/index.htm

NEW YORK (CNNMoney.com) - Stocks looked to have a rough start to the holiday-shortened week Tuesday on a lower dollar and concerns about what Federal Reserve minutes might suggest about its future rate hike plans.

U.S. stock futures were down sharply in early trading, indicating a lower open for U.S. markets. The dollar was lower against the yen and the euro amid reports that U.S. Treasury Secretary John Snow will announce his resignation this week and former Commerce Secretary Don Evans will be named to succeed him.

The Fed is due to release its minutes of its May 10 meeting Wednesday afternoon, and the anticipation of those minutes is already causing nervousness among investors returning to work Tuesday. Rising hopes last week that the Fed might pause its course of rate hikes at its June 29 meeting helped give stocks their first positive week after two weeks of decline. THAT'S what the rally was about? Simple hopes the Fed would pause?!!! I thought they said it was because stocks were oversold and P/E valuations were low, making them a good buy. Those lying bastards!!!! :evilgrin:

more...

[UpInArms]

5. BOJ injects funds again to stem overnight rate jump

http://today.reuters.com/news/newsarticle.aspx?type=businessNews&storyid=2006-05-29T074602Z_01_T154597_RTRUKOC_0_US-MARKETS-JAPAN-BOJ-OPERATION.xml&src=rss

TOKYO (Reuters) - The Bank of Japan injected funds into the banking system on Monday for same-day settlement, the second time in three sessions the central bank has used the rare operation to stem a jump in overnight rates.

The BOJ is playing a balancing act between letting yields on interbank lending inch higher to stir activity in the long-dormant money market, but keeping them from overshooting before it actually begins raising rates from virtually zero.

The BOJ has pledged to keep overnight rates near zero while soaking up the ocean of cash it had pumped into the banking system under its super-loose "quantitative easing" policy that ended in March, which it had adopted to help beat deflation.

The BOJ bought 1.5 trillion yen ($13 billion) of bills in a repurchase agreement expiring on June 1 in a same-day fund-supplying operation as the key unsecured overnight call money rate jumped to the central bank's official discount rate of 0.1 percent from around 0.08 percent on Friday.

The injection comes after a similar operation on Thursday, which was the first since March 3, 2005.

...more...

[ozymandius]

15. Economic data drags down Japanese markets

TOKYO - Japanese consumer spending in April dropped for a fourth straight month and industrial production was weaker than expected, government data showed Tuesday, sending Tokyo share prices lower.

But analysts remained optimistic about the outlook for Japan's economy, which has been recovering after more than a decade of stagnation.

Spending by households headed by salaried workers — a gauge of consumption, which accounts for more than half of Japan's annual economic output — fell a price-adjusted 4.3 percent in April from a year earlier, according to the Ministry of Internal Affairs and Communications.

That was worse than economists' expectations for a 2.1 percent decline and marked the fourth straight monthly decline.

more

[54anickel]

40. Looks like they could use a few more of these...

[ozymandius]

6. Oil prices rise as U.S. enters summer

LONDON - Oil prices rose slightly Tuesday, with the market watching for signals of higher demand as Americans entered the peak summer driving period.

Monday's U.S. holiday, Memorial Day, marks the traditional start of summer, when many families in the U.S. go on driving trips for vacation — and gasoline demand there peaks.

-cut-

"The market is really looking for direction," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "It came through a lot of volatility in the past couple of weeks."

Many traders believe gasoline demand will increase in the United States as Americans are more likely to take domestic vacations due to a weakening U.S. dollar and rising airline ticket prices, Shum said.

more

[UpInArms]

49. July Crude @ $72.45 bbl - July NatGas @ $6.33 mln btus

10:09 AM ET 5/30/06 JULY CRUDE TRADES AT ITS HIGHEST LEVEL SINCE MAY 12

10:09 AM ET 5/30/06 JULY CRUDE LAST UP $1.08 AT $72.45/BRL AFTER A $72.50 HIGH

10:09 AM ET 5/30/06 JULY NATURAL GAS UP 17.6 CENTS, OR 2.9%, TO $6.33/MLN BTUS

[UpInArms]

7. Bush put Lay on layaway as scandal erupted

http://www.post-gazette.com/pg/06148/693581-28.stm

WASHINGTON -- He started as "Kenny Boy."

Then he was a "supporter," an acquaintance who had not talked to President Bush in "quite some time."

Now he is a man convicted of conspiracy and fraud, and a symbol of corporate corruption.

This is former Enron chief Kenneth L. Lay's transformation in the words of President Bush and his spokesmen -- going from a personal and political ally to someone the White House sought to keep as distant as possible as his role in the multibillion-dollar collapse of the energy giant became clear.

In the 1980s, when Mr. Bush was working in the Texas oil industry, his firm invested in a drilling partnership with Mr. Lay's company, a predecessor to Enron. In 1992, Mr. Lay was co-chairman of the Republican National Convention in Houston that renominated President George H.W. Bush.

Later, Mr. Lay was a major fund-raiser for George W. Bush's political career. He delivered more than $300,000 for his two gubernatorial campaigns, according to Texans for Public Justice. In 1997, Mr. Bush wrote to Mr. Lay: "Dear Ken, One of the sad things about old friends is that they seem to be getting older -- just like you! 55 years old. Wow. ... Laura and I value our friendship with you. ... Your younger friend, George W. Bush."

...more...

[UpInArms]

10. The Other Legacy of Enron

http://www.nytimes.com/2006/05/28/weekinreview/28berenson.html?_r=1&hp&ex=1148875200&en=613e3be57912253f&ei=5094&partner=homepage&oref=slogin

(free registration or try www.bugmenot.com)

WITH Thursday's conviction of Kenneth L. Lay and Jeffrey Skilling, the books have finally closed on Enron, almost five years after the company's collapse. The guilty verdict is a resounding repudiation of the accounting gimmickry that swept through corporate America during the 1990's. With the former top executives of a half-dozen big public companies in, or headed for, prison for financial fraud, executives today appear more cautious about pushing accounting limits.

Yet in another, more fundamental way, Enron lives on.

Mr. Lay and Mr. Skilling built and championed a culture of trading, a belief that markets could and should price every product and service. Despite its notorious swagger, Enron failed repeatedly as it tried to build these new markets.

Even so, the company came to symbolize the transition to a world where practically anything can be traded, from weather predictions to broadband Internet connections to forecasts involving the housing market. Enron's vision played out disastrously in California in spring 2001, when manipulation in the state's newly deregulated electricity market helped cause recurring blackouts and soaring power costs. Nine months later, for reasons largely unrelated to the crisis in California, Enron had collapsed, leaving thousands of employees out of work and setting off a wave of prosecutions that culminated in Thursday's verdicts.

But just as junk bonds have thrived in the 16 years after the collapse of Drexel Burnham Lambert and Michael Milken's guilty plea for securities fraud, the culture of trading has only become more important since the California blackouts and Enron's bankruptcy.

For many Americans, the growth of these new markets, with their potential for manipulation and abuse, can seem alarming. Yet many economists and financial experts say that when markets work as they should, they can give individuals protection against the risks of the modern economy — at a price.

...more...

[54anickel]

62. Trading Rule May Contain Loophole for CEOs

http://www.latimes.com/business/la-fi-options30may30,1,5674078.story?coll=la-headlines-business

snip>

Almost six years after the Securities and Exchange Commission established the rule, a Stanford University business school analysis of trading patterns has uncovered a statistical link between executive sales under the rule and negative corporate news.

On average, executives participating in the programs initiated 10.4% of their stock sales before a negative earnings report that would send share prices lower. Sales were initiated only 5.2% of the time in advance of positive earnings news.

If the sales pattern was truly random, one would expect those percentages to be about equal, Stanford business professor Alan D. Jagolinzer wrote in the report, which is undergoing peer review. The study examined stock sales at 191 companies from October 2001 to the end of 2003.

Jagolinzer didn't find any conclusive evidence to prove that executives were gaming the system. But he speculated that executives could be timing the release of corporate news that might have an effect on their stock sales, given that insiders know when their trades are scheduled to occur.

snip>

The SEC established the rule to encourage executives to set up predetermined plans for unloading shares of stock and options awarded to them as part of compensation packages. Trades planned in advance under an automatic trading program are protected from civil or criminal penalties.

The rule was used by former Enron Corp. Chairman Kenneth L. Lay "to protect up to $100 million in personal stock sales prior to Enron's demise," Jagolinzer said.

more...

[54anickel]

86. Backdated options: The next great scandal

A growing number of companies are being investigated over the practice of backdating options so corporate insiders can reap millions essentially risk-free.

http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/BackdatedOptions.aspx

"Make money risk-free!" That's usually a costly come-on, as ordinary folks know. But corporate chieftains who sit on their stash of stock options have found a way to turn this unattainable fantasy into reality.

To begin this week's portrait of greed outdone by temerity, I'd like to reprise the following from my April 4, 2005, Contrarian, "Dear CEOs: Stop fudging your numbers:"

"It used to be that highly respected corporate chieftains were focused on building their businesses with an eye toward the future, and weren't overly concerned with the next 90 days' results. However, since the stock-options era of the mid-1990s, what has often appeared to matter most to those in charge is the business of managing their companies' stock price."

Execs proactive … in matters retroactive
As if that loss of focus weren't enough, we can now add a new one. To wit, regulators are investigating at least 22 companies regarding whether they may have improperly backdated stock-options grants. It's a subject that was presented clearly last Monday in a Wall Street Journal story headlined "Five More Companies Show Questionable Options Patterns." (Registration may be required.)

As the story correctly noted, if you backdate an option, you take the risk of the option out of the equation (and you get to make a whole lot more money). Therefore, you are not aligning the shareholders' and the executives' interest -- that alignment of interest being the supposed raison d'être for utilizing options.

more...

[Demeter]

66. Lay Is One of Those Suckers, Born Every Minute

or merely "born-again"?

Sucked up by BushCo, dragooned to steal for the campaign, played in the press, poisoned the policy pie, and dropped like a hot potato when everything went south.

[UpInArms]

8. Hundreds of Millions for Top Hedge Funders

http://abcnews.go.com/Business/story?id=2009133&page=1&CMP=OTC-RSSFeeds0312

May 26, 2006 — Where is the money and power on Wall Street? A new survey reports that it is firmly in the hands of those who run hedge funds.

How about an annual payday of $1.5 billion? According to a survey by Alpha, a magazine published by the highly watched Institutional Investor, that's just what James Simons, founder of Renaissance Technologies, made in 2005. His flagship Medallion Fund, with $5.3 billion invested, returned 29.5 percent, net of fees.

Hedge funds are lightly regulated funds that attract billions of dollars from institutions and millionaire private investors. Those funds favor nontraditional investments: They short stocks, put money into commodities and play currency markets. And until recently, the payoff has been huge.

According to Alpha, to make the list of top 25 hedge fund earners last year, hedge fund managers had to "take home" at least $130 million. Because of a tie, there were 26 hedge fund managers who made $130 million or more.

No. 2 on Alpha's list after Simons is the venerable T. Boone Pickens, the 78-year-old oilman. His 2005 earnings: $1.4 billion. No. 3 was legendary fund manager George Soros at $840 million.

...more...

[UpInArms]

9. Simons, Pickens Top $1 Billion for Managing Hedge Funds in 2005

http://quote.bloomberg.com/apps/news?pid=10000006&sid=ag0nXg6fS9Dk&refer=home

May 26 (Bloomberg) -- James Simons earned an estimated $1.5 billion last year, the most of any hedge-fund manager, followed by Boone Pickens at $1.4 billion, according to Institutional Investor's Alpha magazine.

The average pay of the top 26 earners rose 45 percent in 2005 to $363 million, the magazine said. Hedge funds returned 9.2 percent last year, double the Standard & Poor's 500 Index and about the same as in 2004, according to Chicago-based Hedge Fund Research.

``The founders and owners are taking the lion's share of the profit,'' said Henry Higdon, chairman of Higdon Barrett LLC, a New York-based executive search firm. ``These guys created firms and risked capital, you can't say they don't earn it.''

Hedge funds, private partnerships that typically require an initial investment of at least $1 million, try to make money whether financial markets rise or fall. While the average fund beat the S&P 500's 4.9 percent return in 2005, the industry continues to lag behind the 16 percent average gains in the 1990s.

<snip>

Henry Paulson, 60, head of Goldman Sachs Group Inc., was the highest paid Wall Street executive last year, earning $38.3 million in salary, stock and options, up 28 percent from a year earlier. Film director George Lucas brought home $290 million last year, and golfer Tiger Woods earned $87 million, according to Forbes magazine.

The highest paid chief executive in 2005 was Richard Fairbank of Capital One Financial Corp., who earned $249.4 million, according to Forbes.

...more...

[UpInArms]

11. Americans Living Abroad Get a Nasty Tax Surprise

http://www.nytimes.com/2006/05/30/business/30tax.html?ex=1306641600&en=6ff61b797eb4d3fa&ei=5088&partner=rssnyt&emc=rss

(free registration or try www.bugmenot.com)

HONG KONG, May 29 — In an effort to raise revenues, tax writers in Congress added a last-minute provision that retroactively increased taxes for Americans living abroad. But the sudden imposition of new taxes has surprised overseas taxpayers, and it has employers concerned about the added cost.

The increase for Americans abroad was added at the last minute to the $69 billion tax cut legislation that was signed last week. Americans living overseas paid almost $3.5 billion in United States income taxes in 2001, the latest year for which data is available, according to the Internal Revenue Service.

The change, which is retroactive to the beginning of 2006, is expected to raise taxes on Americans abroad by $2.1 billion over the next 10 years.

<snip>

For Kristine Kraabel, a gift shop owner in Singapore, and her husband, who is now the regional human resources director there for an American company, the new legislation will more than triple their American tax bill. Their tax adviser calculates that they will owe $20,000 to $25,000 more in United States taxes, up from $5,000 last year, even as they pay $20,000 in Singapore taxes.

...more...

[UpInArms]

12. Wal-Mart denies funding anti-union ads (they're lying)

http://www.businessweek.com/ap/financialnews/D8HRKGKO0.htm?sub=ap_news_up&chan=db

MAY. 26 2:25 P.M. ET Union-backed critics accused Wal-Mart Stores Inc. on Friday of being one of the undisclosed donors behind a new anti-union advertising campaign launched by a Washington, D.C., lobbyist with past ties to two of Wal-Mart's top public relations and lobbying figures.

The world's largest retailer denied providing any funds for the Center for Union Facts, a nonprofit group launched by lobbyist Richard Berman in February that has run television and full-page newspaper ads accusing unions of malfeasance, including discriminating against minorities and bankrupting companies.

Berman has declined to say who has donated over $3 million this year for the ads and a Web site, http://www.unionfacts.com. Berman said Friday supporters include corporations, trade organizations, foundations and individuals but that he will not name them for fear of possible union retaliation.

WakeUpWalMart.com, a campaign group funded by the United Food and Commercial Workers to pressure Wal-Mart, said years of professional ties between Berman and two key figures in Wal-Mart's drive to defend its reputation from union attacks suggest the retailer is one of those backers.

"It's pretty obvious, given these relationships, that Wal-Mart is funding the center either directly or indirectly," WakeUpWalMart.com spokesman Chris Kofinis said.

Bob McAdam, vice president of corporate affairs at Wal-Mart, and Lee Culpepper, Wal-Mart's top lobbyist in Washington, D.C., each worked with Berman in various capacities during their time as lobbyists for the restaurant and tobacco industries in the 1990s.

...more...

[JNelson6563]

25. If they're talkin', they're lyin'

and this misAdminstration has worked hard toward the same goal, breaking organized labor.

Julie

[Eugene]

13. Oil steady above $71 despite OPEC pledge - Reuters

Oil steady above $71 despite OPEC pledge
Tue May 30, 2006 6:34am ET

By Alex Lawler

LONDON (Reuters) - Oil held firm above $71 a barrel on Tuesday, despite OPEC's assurance
that it will do all it can to keep consumers well-supplied when it meets later this week.

<snip>

OPEC President Edmund Daukoru told Reuters on Monday the cartel will probably keep
output quotas unchanged at its ministerial meeting in Caracas on Thursday and keep pumping
as much as it can to ease concern of a shortage.

Prices are responding to growing tensions between Iran, OPEC's second largest producer,
and the U.S. over Iran's nuclear work, he said. They are also jittery over the forthcoming
hurricane season in the Gulf of Mexico and new environmental laws on motor fuels in the U.S.,
he added.

"These are all symptoms of a tight market where small disruptions have a disproportionate
response," he said. "It's a crazy countercyclical situation."

<snip>

Full article: http://today.reuters.com/investing/FinanceArticle.aspx?type=businessNews&storyID=2006-05-30T103434Z_01_SP244284_RTRUKOC_0_US-MARKETS-OIL.xml

Also: Chavez Calls for Cut In Oil Production - AP

[UpInArms]

14. More borrowers falling behind

http://www.mlive.com/printer/printer.ssf?/base/business-4/1148811320191200.xml&coll=2

Falling behind on mortgage payments and losing your home to foreclosure is every homeowner's worst nightmare.

It's an anguish more families in Washtenaw and Livingston counties are dealing with today than in recent years.

<snip>

The number of foreclosed homes going to the weekly Thursday sheriff's auction at the Washtenaw County Courthouse is on track to reach 600 this year, up from 433 in 2005 and 288 in 2004, according to the county clerk's office.

<snip>

People who regularly work with foreclosure situations - like area attorneys and credit counselors - tell stories that are often complicated and gut-wrenching: A mother begging her lender's attorney not to evict the family before her child's high school graduation party. Workers laid off from longtime jobs in the auto industry struggling to find new work, or juggling multiple minimum wage jobs to make ends meet.

...more...

[UpInArms]

17. Daewoo founder sentenced to prison term - Acctng Fraud - Embezzlement

http://news.yahoo.com/s/ap/skorea_daewoo_founder

SEOUL, South Korea - A Seoul court on Tuesday sentenced the founder and former chairman of collapsed conglomerate Daewoo to 10 years in prison for a range of charges including embezzlement and accounting fraud.

The Seoul Central District Court said it also ordered Kim Woo-choong, 69, to forfeit more than 21 trillion won ($22 billion) and pay a fine of 10 million won ($10,600).

Kim was indicted in June last year on charges of multi-trillion won accounting fraud, illegal financing and diverting funds out of the country. He was also accused of embezzlement and breach of trust.

<snip>

"It is doubtful whether (Kim) is truly repentant as he tries to dodge the responsibility and justify his actions," the ruling said.

<snip>

He was found guilty of the charges, including over 20 trillion won in accounting fraud, 9.8 trillion won worth of illegal financing, and diverting 19 trillion won out of the country, Judge Nho Yu-kyong said. He was also found to have embezzled $100 million, she said.

<snip>

Daewoo collapsed under massive debts in the wake of the 1997-98 Asian financial crisis, when the South Korean government was forced to accept a $58 billion International Monetary Fund bailout.

...more...

[UpInArms]

20. Mine casualties rise with coal prices

http://news.yahoo.com/s/ap/mine_explosion_safety

HARLAN, Ky. - In the coalfields of eastern Kentucky, it's known as the hoot owl shift. In those wee morning hours, while most people in this small eastern Kentucky town are sleeping, miners wearing hard hats, steel-toed boots and layers of black dust are still at work, deep underground.

With coal prices at record highs, mining companies have been pushing to increase production, adding overnight and weekend shifts and generating more overtime hours for miners who have some of the most physically grueling jobs in the country.

Industry groups and mine regulatory agencies are wondering if fatigue could be a common factor in the sharp increase in coal mining deaths this year. So far this year, 33 coal miners have been killed on the job in the United States, including 12 in January at the Sago mine in West Virginia and five on May 20 at Kentucky Darby No. 1. That's up from 22 coal miners killed throughout all of 2005, according the federal Mine Safety and Health Administration.

<snip>

Companies went in search of experienced miners about three years ago when prices for Appalachian coal skyrocketed. The region's coal is now selling for as much as $64 a ton on the spot market, a threefold increase in three years.

<snip>

Coal operators have been pressing miners to keep up the pace.

In a memo to employees last fall, Massey Energy Chief Executive Officer Don Blankenship roused controversy by saying production is the top priority.

...more...

Profits before everything - people are replaceable and disposable - get that coal!

[UpInArms]

22. Risks Close In on the Fed - Chopper Ben's Honeymoon is Over

http://www.topix.net/content/trb/2515094668142331216931812738043571560637

WASHINGTON - Ben S. Bernanke's honeymoon as the new Federal Reserve chairman is drawing to an end. Now comes the hard part. The Fed has reached a crunch point in its stewardship of the U.S. economy, and any misstep on Bernanke's part could have dramatic consequences.

Inflation is picking up just as economic growth and job creation appear to be slowing. The housing boom is ending, and rising mortgage rates threaten to depress home prices and throttle consumer spending. Gasoline prices are rising and the dollar is falling, portending increases in what Americans pay for foreign goods: energy and electronics, coffee and clothing.

What's a new Fed chief to do?

If Bernanke's Fed continues to raise interest rates, it risks choking economic activity, particularly the rate-sensitive housing sector, a prime engine of growth since the 2001 recession. But if it doesn't, Bernanke could get a rap as being soft on inflation - and prices could rise even more.

It's a predicament that would challenge the legendary Alan Greenspan, whom Bernanke replaced Feb. 1. 'Even the great Greenspan would have trouble figuring out the best policy,' said Nariman Behravesh, chief economist for consulting firm Global Insight. 'The Fed doesn't know - nobody knows - what the economy is going to do next.'

...more...

[54anickel]

27. They sure don't bother to mention a diminished appetite for bucks

by foreigners, do they? Oh, that's right, they'll always by our worth less and less treasuries to support our "consumerism" in their own interests. :eyes: :sarcasm:

[UpInArms]

52. Moskow says Fed ready to take on inflation (credibility problems)

http://today.reuters.com/misc/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2006-05-30T141727Z_01_N29142698_RTRIDST_0_ECONOMY-FED-MOSKOW-UPDATE-2.XML

SAN FRANCISCO, May 30 (Reuters) - The U.S. economy is strong but inflation is at the upper end of a level consistent with price stability, Chicago Federal Reserve President Michael Moskow said on Tuesday.

"We know the dangers of inflation getting built into the economy. We know that inflation can have a great deal of inertia and we have to be very diligent and very careful to make sure that doesn't happen," Moskow said in an interview on CNBC financial television.

Officials at the Fed, the U.S. central bank, fear letting inflation expectations start to rise, since stopping an inflationary spiral once it starts can be hard and painful.

The Fed's credibility was crucial to the process of fighting inflation, Moskow said. "If people do not have confidence in the Fed then I think inflation expectations could drift up, and that would be a very serious problem," he said.

Still, the Fed's current configuration, with new Chairman Ben Bernanke and some relatively new policy-makers, does not demand a "credibility premium," Moskow said. "I personally do not think the Fed has lost any credibility."

...more...

GWB/July 1, 2001/Philadelphia: "Who cares what you think."

[UpInArms]

53. Chopper Ben flaps lips inanely

10:20 AM ET 5/30/06 BERNANKE COMMENDS JOHN SNOW FOR YEARS OF SERVICE

10:20 AM ET 5/30/06 BERNANKE: PAULSON IS "HIGHLY RESPECTED' IN FINANCIAL WORLD

[UpInArms]

29. Treasuries prices stay down after Treasury Sec news

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-30T130431Z_01_N30398092_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, May 30 (Reuters) - U.S. Treasury debt prices were moderately lower on Tuesday as bond investors looked to other asset markets for cues and mulled news of Treasury Secretary John Snow's resignation.

President George W. Bush will nominate Goldman Sachs chairman Henry Paulson to replace him, a senior administration official said.

"Today we will look at the dollar, stocks and commodities and consumer confidence data, but I expect a relatively rangebound session," said John Canavan, market analyst at research company Stone & McCarthy in Princeton, New Jersey.

The Conference Board's Consumer Confidence report for May is due at 10 a.m. EDT (1400 GMT), with economists' median forecasts in a Reuters poll for 101.1 in May, down from 109.6 in April.

Bond investors were keeping a watchful eye on the dollar, analysts said. The greenback traded lower on the day overall, but pared losses after news that Paulson would be named to replace Snow.

Treasuries initially traded steady at lower levels after that news. Benchmark 10-year notes <US10YT=RR> were down 5/32 in price for a yield of 5.07 percent.

...more...

[UpInArms]

37. Printing Press Hums: Fed adds reserves through overnight system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-05-30T133141Z_01_N30342385_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, May 30 (Reuters) - The Federal Reserve said on Tuesday that it was adding temporary reserves to the banking system through overnight system repurchase agreements.

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

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

[UpInArms]

61. Treasurys weaken as Fed's Moskow notes inflation

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B9492BD00%2D2CEA%2D4F04%2D93CB%2D0E349CB6078E%7D&symbol=

NEW YORK (MarketWatch) -- Treasury prices were lower Tuesday morning, sending yields a bit higher, after Chicago Federal Reserve President Michael Moskow told CNBC that inflation is near the upper end of the Fed's comfort zone, about 2%.

The fixed-income market reacts negatively to any indications of inflation because it erodes the value of bonds and increases the likelihood that the Fed will continue lifting rates.

The benchmark 10-year Treasury last was 4/32 lower at 100-15/32 with a yield ($TNX : 50.76, +0.24, +0.5% ) of 5.064%. Prices and yields move in opposite directions.

The 30-year benchmark bond was under heavier selling pressure, trading down 6/32 at 89-29/32 and yielding ($TYX : 51.85, +0.28, +0.5% ) 5.169%. The 2-year note was 1/32 weaker at 99-27/32 with a 4.962% yield.

Price losses lightened after the Conference Board's May consumer-confidence report showed a decline to 103.2 from 109.8 in April.

...more...

[54anickel]

72. Inflation-Linked Bond Market to Top $1 Trillion as Prices Rise

http://www.bloomberg.com/apps/news?pid=10000087&sid=aECFG4OZwvOA&refer=top_world_news

May 30 (Bloomberg) -- The market for government bonds that protect against inflation may expand to more than $1 trillion this year as commodities rally and spur investor concerns that the rise in consumer prices will accelerate.

Sales of bonds that pay investors more when inflation quickens may increase 22 percent this year to $180 billion, according to Barclays Capital, the world's third-biggest underwriter. Germany issued its first inflation-linked debt in March and Turkey plans to resume sales that have been halted since 1999. The U.S. is the biggest market for inflation bonds, with $368 billion of Treasury inflation-protected securities.

Demand for bonds linked to the rate of inflation is rising as oil, copper, zinc and other commodities reach records and cause consumer prices in the U.S., Europe and Japan to increase. A total of 22 nations from Kazakhstan to Chile have $888 billion of inflation-linked debt outstanding, according to data compiled by London-based Barclays.

``Investors want to buy to protect against an inflation threat that is very real right now,'' said Wee-Khoon Chong, a fixed-income strategist at Bank of America Corp. in London. ``By showing a firmer commitment to inflation-linked debt, governments look more credible, because they have to keep inflation under control. Otherwise, borrowing costs will be very high.''

more...

[stop the bleeding]

30. thanks everyone for the information

much kudos!

[UpInArms]

31. pre-opening blather

09:15 am : S&P futures vs fair value: -4.4. Nasdaq futures vs fair value: -9.0.

09:00 am : S&P futures vs fair value: -4.3. Nasdaq futures vs fair value: -9.2. Stage remains set for last week's relief rally to stall amid the absence of solid earnings and encouraging economic data to keep whetting the appetites of bargain hunters and those hoping that the market low reached last Wednesday was in fact the bottom so many were hoping for. In fact, investors may be waiting to see what the FOMC minutes, which will be released tomorrow at 2:00 ET, might suggest about just how far the Fed plans to go with its tightening to keep inflation under control.

08:30 am : S&P futures vs fair value: -4.0. Nasdaq futures vs fair value: -10.0. Still shaping up to be a lower open for the cash market as futures indications continue to trade well below fair value. Aside from Wal-Mart's sales disappointment weighing on pre-market action is consolidation in this year's best performing Dow component -- General Motors (GM), which is giving up some of last week's upgrade-induced 14% surge following an analyst downgrade. Buyers may also be taking a breather amid another poor performance in European markets, with most indices down roughly 1.0%, and oil prices surging 1.3% and back above $72 a barrel.

08:00 am : S&P futures vs fair value: -4.4. Nasdaq futures vs fair value: -9.0. Futures versus fair value suggests that stocks will open sharply lower. Prompting investors to consolidate three straight days of market gains are concerns about the pace of consumer spending after Wal-Mart (WMT) said higher gas prices left its May sales gain of 2.3% at the low end of its earlier forecast (2-4%)

[UpInArms]

34. 8:35 EST opening with a thud

Dow 11,226.82 -51.79 (-0.46%)
Nasdaq 2,198.82 -11.56 (-0.52%)
S&P 500 1,275.25 -4.91 (-0.38%)
10-Yr Bond 5.066 +0.14 (+0.28%)

NYSE Volume 61,507,000
Nasdaq Volume 68,880,000

[54anickel]

36. Part 2 of Friday's pump and dump? eom

[specimenfred1984]

41. Late Thursday's Pump

At 3:58 thru 4:02 to be exact, in the S&P futures. Volume of 52,000 in 6 minutes as prices went up.

[JNelson6563]

39. 9:39 Dark clouds rolling in

Dow 11,222.60 -56.01 (0.50%)
Nasdaq 2,199.36 -11.02 (0.50%)
S&P 500 1,275.05 -5.11 (0.40%)
10-Yr Bond 5.068% +0.16

Apparently no one is to be spared at this point. Treasuries (we've got inverted yield curves BTW) and stocks. Ouch.

Julie

[UpInArms]

43. 9:49 EST Look Out Below!

Dow 11,200.65 -77.96 (-0.69%)
Nasdaq 2,191.67 -18.70 (-0.85%)
S&P 500 1,272.02 -8.14 (-0.64%)
10-Yr Bond 5.072 +0.20 (+0.40%)

NYSE Volume 186,645,000
Nasdaq Volume 170,006,000

09:40 am : Stocks take a breather as three straight days of gains prompt some early consolidation and kick off a shortened week on a downbeat note. With the market still extremely sensitive to weak economic data ever since the May 10 Fed policy statement, Wal-Mart (WMT 48.62 -1.03) saying that higher gas prices resulted in a May sales gain of only 2.3%, which is at the low end of its earlier forecast (2-4%), has piqued concerns about the pace of consumer spending. While weak economic data had at least some positive implications on the hopes that it might lead the Fed to end their rate hike cycle, weak data are now taken at face value for their bearish implications for earnings growth.DJ30 -55.35 NASDAQ -10.74 SP500 -4.59 NASDAQ Vol 98 mln NYSE Vol 76 mln

[UpInArms]

42. June Gold @ $656 oz - July Silver @ $13.17 oz - July Copper @ $3.765 lb

9:41 AM ET 5/30/06 JUNE GOLD CLIMBS $5 TO $656/OZ IN MORNING TRADING

9:41 AM ET 5/30/06 JULY SILVER RISES 44 CENTS, OR 3.5%, TO $13.17/OZ

9:41 AM ET 5/30/06 JULY COPPER FALLS 5 CENTS, OR 1.3%, TO $3.765/LB

[UpInArms]

59. Gold prices gain as the U.S. dollar falls ("terminally ill" dollar)

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BEF20370C%2D219C%2D40E9%2D967A%2D64C6E91773F3%7D&symbol=

SAN FRANCISCO (MarketWatch) -- Gold futures climbed Tuesday as weakness in the U.S. dollar steered investment demand toward the precious metals.
"The terminally ill U.S. dollar is heading in its only long-term path --south," said Peter Grandich, editor of the Grandich Letter. "This in turn should be most beneficial to gold's long-term path -- up."

Gold for June delivery rose $6 to trade at $657 an ounce on the New York Mercantile Exchange. August gold tacked on $6.10 to $663.50 an ounce.

"After being assured by the president (just last week) that Treasury Secretary John Snow was doing 'a fine job' and that the economy was doing also doing fine thanks to his efforts, the public told today that Mr. Snow is resigning," said Jon Nadler, an investment products analyst at bullion dealers Kitco.com. See full story.

"What little confidence there may have been left in the dollar is now going to be tested again and again," he said.

At last check, the dollar remained lower against major currencies, but was off the lows of the day, after news that Goldman Sachs Chief Executive Henry Paulson will become the next treasury secretary. See Currencies.

Overall, "the crowded exit door of the administration is making for some rather nervous global investors when it comes to the prospects of the dollar and the U.S. equity markets," said Nadler. He added that "the ones who seem to sleep a little better these days are the holders of (some) gold."

...more...

[UpInArms]

65. June Gold @ $658.50 oz - August Gold @ $665 oz

11:40 AM ET 5/30/06 AUGUST GOLD UP $7.60 AT $665/OZ IN LATE MORNING DEALINGS

11:40 AM ET 5/30/06 JUNE GOLD CLIMBS $7.50 TO $658.50/OZ

[54anickel]

69. Musing on a Gold Standard (van Eeden)

http://www.321gold.com/editorials/vaneeden/vaneeden053006.html

snip>

If we add together all the currency in circulation (notes and coins) in the US, Japan, China, Britain, Canada, Russia, Australia and the European Union, converted to US dollars for simplicity, we arrive at $2.6 trillion. These countries represent roughly 80% of the world's GDP so by extrapolation we can estimate that all the currency in circulation in the world today is approximately $3.25 trillion.

Total historical gold production is about 5 billion ounces and most of it is still around. If all the gold in the world were converted to money to replace existing notes and coins, it would imply a gold price of $650 an ounce.

snip>

Another model I have used to estimate the fair value of gold is based on relative inflation rates. According to that model (see http://www.paulvaneeden.com/Library/200304%20Gold.php), the gold price should be around $900 an ounce. I found it interesting that both these calculations came up with gold price values in the range of $1,000 an ounce, which is intuitively more acceptable than some of the deflationist models that predict gold at $300 an ounce or alarmist predictions of $8,000 to $10,000 an ounce. While either extreme is a possibility, I do not consider either one to have a very high probability. On the other hand, I believe there is a high probability of seeing gold at around $1,000 an ounce in the not-too-distant future.

Gold is currently less than that because the US dollar is over-valued on foreign exchange markets. A rise in the gold price from $600 to $900 an ounce purely due to weakness in the dollar would imply that the dollar lost 30% to 35%. Such a decline in the US dollar does not have to be uniform against all currencies, and I doubt that it would be; the dollar will probably fall most against the Chinese Renminbi, the Japanese Yen and other Southeast Asian currencies.

A newcomer to the ranks of The Dollar Bears is the Organization for Economic Co-operation and Development (OECD). The OECD was quoted in Forbes last week as saying the dollar had to fall by 35% to 50% in order to balance the US current account gap. I don't know how they came up with those figures, but they correspond incredibly well to my own expectation of how much the dollar should decline.

I still maintain that we are not currently in a gold bull market but that the gold price is merely adjusting to monetary inflation and foreign exchange rates. We might well enter into a gold bull market if the decline in the US dollar precipitates a crisis, but we are not there yet.

more...

[UpInArms]

80. June Gold closes @ $653.90 oz - July Silver @ $13.07 oz

1:53 PM ET 5/30/06 JUNE GOLD RISES $2.90 TO CLOSE AT $653.90/OZ

1:53 PM ET 5/30/06 AUGUST GOLD CLOSES AT $660.50/OZ, UP $3.10

1:53 PM ET 5/30/06 JULY SILVER CLIMBS 34 CENTS, OR 2.7%, TO END AT $13.07/OZ

[UpInArms]

44. CA delays results, to restate third quarter

http://today.reuters.com/investing/financeArticle.aspx?type=hotStocksNews&storyID=2006-05-30T132334Z_01_N30402331_RTRUKOC_0_US-CA-EARNS.xml

NEW YORK (Reuters) - Business software maker CA Inc. (CA.N: Quote, Profile, Research) on Tuesday said it would delay filing results with U.S. regulators and restate its prior quarterly report, largely due to incorrect accounting for sales commissions.

<snip>

CA said it posted a quarterly loss of 7 cents per share, compared with a previous forecast of a profit of 2 cents per share. Revenue rose to an estimated $947 million, at the higher end of a previously expected $940 million to $950 million.

Last month, CA warned investors that its quarterly results would miss an even earlier round of forecasts, blaming what it said were miscalculations in accounting for sales from recently acquired companies.

On Tuesday, the company said it would report "a material weakness in its financial controls" regarding its ability to forecast and track sales commissions. It said it was postponing a planned analysts' day on June 8, but did not give a new timetable.

...more...

[UpInArms]

78. CA warns of surprise loss, delays results

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BB6E759D5%2DA65C%2D46C7%2DA025%2DA74016E04D60%7D&symbol=

LOS ANGELES (MarketWatch) - CA Inc. on Tuesday delayed its quarterly results and warned that it would post a surprise loss after finding that it incorrectly accounted for sales commissions, dealing a fresh blow to the management software firm that has worked to turn around its business and put a multibillion-dollar accounting scandal behind it.

The company formerly known as Computer Associates said it needed the additional time to carry out work surrounding its sales-commission expense and income taxes before finalizing its fiscal fourth-quarter results. CA (CA : 21.44, -0.72, -3.2% ) also said it would restate results for the preceding fiscal third quarter and it postponed an analyst day that had been planned for next week.

"Clearly we are disappointed that what would have been a solid year was impacted by execution issues relating to commissions," Chief Executive John Swainson said. "We are making changes to ensure that these problems do no recur," he added.

A new sales-commission plan failed to appropriately align commission payments with the Islandia, N.Y., firm's overall performance, it said. CA estimated its sales commissions for the fiscal year would be about $70 million more than originally anticipated as a result.

CA will report a material weakness in its financial controls related to the "forecasting, processing and monitoring of sales commissions," it said, noting that its review is ongoing and further adjustments may be needed.

...more...

Same company, same fraud, different day :eyes:

http://www.usdoj.gov/opa/pr/2004/September/04_crm_642.htm

SEPTEMBER 22, 2004

FORMER COMPUTER ASSOCIATES EXECUTIVES INDICTED ON
SECURITIES FRAUD, OBSTRUCTION CHARGES

Former General Counsel Pleads Guilty, Company Enters Into Cooperation Agreement

WASHINGTON, D.C. - Deputy Attorney General James B. Comey, U.S. Attorney Roslynn R. Mauskopf of the Eastern District of New York, and FBI Director Robert Mueller announced today the unsealing of an indictment charging two former executives of Computer Associates International, Inc., for their alleged participation in a long-running, company-wide accounting fraud scheme and subsequent efforts to obstruct the government’s investigation.

The 10-count indictment, returned last Friday by a federal grand jury in Brooklyn, New York and unsealed today, charges Sanjay Kumar, the former Chief Executive Officer and Chairman of the Board of Computer Associates International, Inc. (CA), and Stephen Richards, CA’s former Head of Worldwide Sales, with securities fraud conspiracy, obstruction of justice and conspiracy to obstruct justice. Richards was also charged with one count of perjury, and Kumar was also charged with one count of making false statements to law enforcement officers.

In addition, Stephen Woghin, CA’s former General Counsel and Senior Vice President, pleaded guilty this morning to securities fraud conspiracy and obstruction of justice charges for his role in the fraudulent scheme. Woghin entered his plea before U.S. District Judge I. Leo Glasser at the U.S. Courthouse in Brooklyn.

Also today, the Department of Justice announced that CA has been charged and has accepted responsibility for the illegal conduct of its former executives, adopted significant corporate reforms, agreed to continue its cooperation with the government’s ongoing investigation, and agreed to pay $225 million to compensate victims of the fraud as part of a deferred prosecution agreement. If CA abides by the terms of the agreement, the United States Attorney’s Office has agreed not to prosecute CA. The agreement does not protect any individuals from prosecution.

<snip>

“The defendants are accused of perpetrating a massive accounting fraud that cost public investors hundreds of millions of dollars when it collapsed. Then they allegedly tried to cover up their crimes by lying,” said Deputy Attorney General Comey, who chairs the President’s Corporate Fraud Task Force. “If proven true, such conduct cannot be tolerated and the Corporate Fraud Task Force’s track record shows that it will be met with severe penalties.”

...more...

(edited to add that final paragraph regarding accounting fraud)

[UpInArms]

47. 10:05 EST no 10 o'clock bounce?

Dow 11,187.44 -91.17 (-0.81%)
Nasdaq 2,191.52 -18.85 (-0.85%)
S&P 500 1,270.18 -9.98 (-0.78%)
10-Yr Bond 5.072 +0.20 (+0.40%)

NYSE Volume 295,465,000
Nasdaq Volume 257,548,000

edited to add blather:

10:00 am : Major averages extend their reach to the downside as nine out of 10 economic sectors trade in negative territory. Pacing the way lower is Technology as CA Inc. (CA 21.15 -1.01) warning again that Q4 results will miss forecasts and saying it will restate its prior quarter prompts further deterioration in the software space. Consumer Discretionary is another influential sector losing ground, as rising bond yields continue to weigh on homebuilding and autos give up recent gains after valuation concerns prompted Deutsche Bank to downgrade General Motors (GM 27.25 -0.83). Energy, however, is extending its year-to-date leading 10% surge in sympathy with a 1.5% rebound in oil prices. DJ30 -82.36 NASDAQ -19.68 SP500 -8.46 NASDAQ Dec/Adv/Vol 1757/771/216 mln NYSE Dec/Adv/Vol 1678/832/180 mln

[stop the bleeding]

54. Energy seems to be the bright spot on the S&P with

materials lagging in second place, the oil sector seems to be doing quite well today with the price going up over the weekend even though there seems to be some mixed messages coming out of OPEC nations.

[UpInArms]

55. Weak dollar, higher oil take their a toll; GM, Wal-Mart under pressure

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7BDF1D259F%2D2E9F%2D414C%2D9ABE%2DBF6FFBD86822%7D&symbol=

NEW YORK (MarketWatch) -- U.S. stocks lost ground Tuesday as investors returned from a three-day weekend to confront dollar weakness, higher oil prices, disappointing May sales from Wal-Mart Stores, and a broker downgrade of General Motors Corp.

<snip>

"You have Wal-Mart sales that were somewhat lighter than expected and the fear is that the low-income consumer is finally succombing to gas prices," said Jim Awad, chairman of Awad Asset Management.

A downgrade of General Motors, the best performer on the Dow industrials since the start of the year was not helping matters, said Awad.

"Combine all that with oil being up today and a down day for overseas markets, you have fear of slowing growth and of inflation that may continue to tick up as energy costs are passed through."

...more...

[UpInArms]

57. 10:35 EST numbers and blather

Dow 11,176.31 -102.30 (-0.91%)
Nasdaq 2,189.52 -20.86 (-0.94%)
S&P 500 1,270.31 -9.85 (-0.77%)
10-Yr Bond 5.064 +0.12 (+0.24%)

NYSE Volume 475,644,000
Nasdaq Volume 401,011,000

10:30 am : Indices continue to languish near session lows, showing little reaction to a less than expected decline in consumer confidence. The Consumer Confidence index fell 6% in May to 103.2, but checked in above expectations (consensus 100.9) despite the drop from April's four-year high. Nonetheless, since the data do not correlate well with consumer spending plans and a decline from April was an understandable reaction to higher gasoline prices, the report has had little influence on overall market sentiment as bonds also held relatively steady following the release. DJ30 -95.12 NASDAQ -19.94 SP500 -9.26 NASDAQ Dec/Adv/Vol 1924/789/368 mln NYSE Dec/Adv/Vol 2024/881/312 mln

[ozymandius]

63. And the hits just keep on coming

11:27
Dow 11,165.43 -113.18 (-1.00%)
Nasdaq 2,182.21 -28.16 (-1.27%)
S&P 500 1,267.98 -12.18 (-0.95%)
10-Yr Bond 50.82 +0.30 (+0.59%)
NYSE Volume 749,374,000
Nasdaq Volume 642,654,000

11:00 am : Blue chip averages continue to vacillate near session lows while the Nasdaq recently failing to find initial support around the 2190 level has pushed the tech-heavy index even lower and back into negative territory for the year. Among the most influential Nasdaq-100 components losing ground are INTC (-1.3%), CSCO (-1.5%), QCOM (-2.5%), AAPL (-1.6%), EBAY (-2.4%), YHOO (-2.2%), SYMC (-1.9%), MRVL (-3.9%), and SNDK (-3.5%), as concerns that the Fed may go too far with its tightening policy diminishes the desire to own the aforementioned companies despite their strong financial, market, and product positions.DJ30 -96.21 DOT -1.1% NASDAQ -22.60 SOX -1.1% SP500 -9.76 NASDAQ Dec/Adv/Vol 1923/864/516 mln NYSE Dec/Adv/Vol 2134/874/430 mln

[ozymandius]

64. updating blather

11:30 am : Market slips even further into the red since the last update as today's losses have more than erased Friday's broad-based buying efforts which helped the market close in positive territory for the first time in three weeks. The absence of leadership from Energy (-0.5%), which was the only sector posting a gain earlier, and further deterioration in Treasuries lifting the 10-yr yield to 5.08% are contributing to the widespread weakness that now has all three major averages losing at least 1.0%. DJ30 -113.42 NASDAQ -29.09 SP500 -12.58 XOI -0.7% NASDAQ Dec/Adv/Vol 1976/858/644 mln NYSE Dec/Adv/Vol 2102/935/534 mln

[Roland99]

67. Owie.

[stop the bleeding]

68. lets see how much more blood will come out after Wednesday's

release of the minutes from the Fed's May 10th meeting

[Roland99]

76. 1:21pm EDT numbers (still bloody)

DJIA 11,157.18 -121.43 -1.08%
Nasdaq 2,180.08 -30.29 -1.37%
S&P 500 1,267.02 -13.14 -1.03%
Dow Util 403.06 -1.10 -0.27%
NYSE 8,157.74 -83.41 -1.01%
AMEX 1,941.02 -12.53 -0.64%
Russell 2000 717.98 -11.57 -1.59%
Semcond 462.15 -4.62 -0.99%
Gold future 659.00 +8.00 +1.23%
30-Year Bond 5.18% +0.02 +0.47%
10-Year Bond 5.07% +0.02 +0.44%

[UpInArms]

79. 1:49 EST sloppy bloody mess

Dow 11,133.66 -144.95 (-1.29%)
Nasdaq 2,175.47 -34.90 (-1.58%)
S&P 500 1,264.63 -15.53 (-1.21%)
10-Yr Bond 5.074 +0.22 (+0.44%)

NYSE Volume 1,287,733,000
Nasdaq Volume 1,073,886,000

1:30 pm : Little changed since the last update as selling remains widespread across most areas. However, there are a handful of industry groups attracting buyers amid all of the consolidation. Oil & Gas Storage (+8.1%) is pacing the way higher amid reports that an investment group is bidding to take Kinder Morgan (KMI 100.30 +15.89) private for about $13.4 bln. Publishing (+1.4%) is turning in the next best performance after Tribune (TRB 29.97 +2.08) said it plans to buy back 25% of its stock and sell $500 mln in non-core assets while Semiconductor Equipment (+1.1%) is up following multiple analyst upgrades (e.g. AMAT, TER, NVLS). DJ30 -124.23 NASDAQ -30.89 SP500 -13.39 NASDAQ Dec/Adv/Vol 2160/802/1.01 bln NYSE Dec/Adv/Vol 2266/923/866 mln

[54anickel]

82. Good news is low volume - according to the latest blather...2:47

Dow 11,154.13 -124.48 (-1.10%)
Nasdaq 2,180.67 -29.71 (-1.34%)
S&P 500 1,267.12 -13.04 (-1.02%)
10-yr Bond 50.80 +0.28 (+0.55%)
30-yr Bond 51.84 +0.27 (+0.52%)
NYSE Volume 1,518,418,000
Nasdaq Volume 1,252,813,000


2:30 pm : More of the same for stocks as a bearish bias remains firmly intact. As reflected in the A/D line, decliners continue to outpace advancers on both the NYSE and Nasdaq by more than 2 to 1. A 3-to-1 ratio of down to up volume paints an even more dismal picture. Fortunately for the bulls struggling to extend last week's relief rally, below average volume is lending little conviction behind the day's widespread profit taking. To wit, volume on the NYSE has only recently surpassed 1.0 bln shares while that on the Nasdaq is only closing in on 1.2 bln shares.DJ30 -132.56 NASDAQ -30.98 SP500 -13.59 NASDAQ Dec/Adv/Vol 2195/786/1.98 bln NYSE Dec/Adv/Vol 2295/913/1.03 bln

2:00 pm : Stocks maintain their downward trend as all three major averages continue to sport losses of more than 1.0%. The Nasdaq (-1.4%) still leads the way lower among the majors, paced by weakness in disk drive, networking, software, biotech, retail and trucking, while the Russell 2000 (-1.8%) is turning in the day's worst performance since higher rates greatly impact the borrowing power of small-cap companies. The 10-yr yield is currently at 5.07% while the 30-yr yield stands at 5.17%.DJ30 -133.88 NASDAQ -32.44 SP500 -14.10 NASDAQ Dec/Adv/Vol 2208/770/1.10 bln NYSE Dec/Adv/Vol 2301/898/956 mln

[Roland99]

83. What's the average volume these days?

Wonder how many people are still on vacation from the holiday?

[54anickel]

87. I dunno, but looking at the 5 day chart it looks like it's been headed

a wee bit down coming into the holiday weekend. My guess is that you're correct in wondering how many are still on holiday.

http://finance.yahoo.com/q/bc?s=%5ETV.N&t=5d

[alfredo]

81. Swan dive or belly flop? Dow down 137.04 Nasdaq down 37.79

S&P down 14.31 at

1421 EST Let's see where it will be at the final bell.

[ozymandius]

85. 12:42 and bye

Dow 11,132.93 -145.68 (-1.29%)
Nasdaq 2,177.79 -32.59 (-1.47%)
S&P 500 1,265.23 -14.93 (-1.17%)
10-Yr Bond 50.90 +0.38 (+0.75%)
NYSE Volume 1,594,339,000
Nasdaq Volume 1,317,170,000

2:30 pm : More of the same for stocks as a bearish bias remains firmly intact. As reflected in the A/D line, decliners continue to outpace advancers on both the NYSE and Nasdaq by more than 2 to 1. A 3-to-1 ratio of down to up volume paints an even more dismal picture. Fortunately for the bulls struggling to extend last week's relief rally, below average volume is lending little conviction behind the day's widespread profit taking. To wit, volume on the NYSE has only recently surpassed 1.0 bln shares while that on the Nasdaq is only closing in on 1.2 bln shares.DJ30 -132.56 NASDAQ -30.98 SP500 -13.59 NASDAQ Dec/Adv/Vol 2195/786/1.98 bln NYSE Dec/Adv/Vol 2295/913/1.03 bln

[alfredo]

119. A friend says this is a reaction to GM tanking.

He got out of GM years ago. He said they were toast. years ago he said they were not responding properly to the changes in the auto market.

[Roland99]

89. 3:43pm - Blood collecting into pools

DJIA 11,108.92 -169.69 -1.50%
Nasdaq 2,170.69 -39.68 -1.80%
S&P 500 1,261.40 -18.76 -1.47%
Dow Util 400.31 -3.85 -0.95%
NYSE 8,120.40 -120.75 -1.47%
AMEX 1,929.62 -23.93 -1.22%
Russell 2000 712.92 -16.63 -2.28%
Semcond 458.12 -8.65 -1.85%
Gold future 653.90 +2.90 +0.45%
30-Year Bond 5.19% +0.03 +0.62%
10-Year Bond 5.09% +0.03 +0.67%

29 of 30 DOW components trading in the red.

[JNelson6563]

90. PPT on longer weekend than everyone else?

one minute before the bell

Dow 11,097.23 -181.38 (1.61%)
Nasdaq 2,164.74 -45.64 (2.06%)
S&P 500 1,260.02 -20.14 (1.57%)
10-Yr Bond 5.086% +0.34
NYSE Volume 2,063,777,000
Nasdaq Volume 1,717,276,00

Like a horror movie.
:popcorn:

[54anickel]

91. But the rally the past 3 days was because the correction was over!

Right? Right?... *crickets*

I thought this article from last Wednesday was sort of interesting...

http://biz.yahoo.com/tm/060524/14346.html

It is starting to get really ugly now that the major indexes cannot rally or even bounce in a significant way. In early May, the major indexes posted heavy distribution, or professional selling and have not looked up since.

Commodity prices and many leading stocks have taken it on the chin since the market topped on 4/20 for the NASDAQ and 5/8 for the S&P 500. The S&P 500 closed below its 200-day moving average for the first time since October and trading below this key area of institutional support does not bode well for higher prices.

The best thing to do at this time is move money into one of two places. The first solid option is the sidelines; out of harm's way. If you are a stock picker, a down trending market can even de-rail solid leaders like Hansen Natural (NYSE:HANS - News).

bit more...

[JNelson6563]

94. Translation

The best thing to do at this time is move money into one of two places. The first solid option is the sidelines; out of harm's way. If you are a stock picker, a down trending market can even de-rail solid leaders like Hansen Natural

That is code for Run For Your Lives.

Good thing I'm fluent in these specialized dialects that have descended from the ancient Bullshit Tribes. :toast:

Julie

[54anickel]

96. Bwahaha "dialects" of "ancient Bullshit Tribes" - good one Julie!

:toast: back at ya

[Roland99]

92. Initial Closing numbers (NASDAQ nears lower support level)

DJIA 11,094.43 -184.18 -1.63%
Nasdaq 2,164.74 -45.63 -2.06%
S&P 500 1,259.87 -20.29 -1.58%
Dow Util 400.39 -3.77 -0.93%
NYSE 8,111.00 -130.15 -1.58%
AMEX 1,929.55 -24.00 -1.23%
Russell 2000 711.04 -18.51 -2.54%
Semcond 456.67 -10.10 -2.16%
Gold future 653.90 +2.90 +0.45%
30-Year Bond 5.19% +0.03 +0.62%
10-Year Bond 5.09% +0.03 +0.67%


NASDAQ lower support was, what, 2,147? I believe it was.

But, good ol' Paulson will cure the markets ills for sure! :D

[54anickel]

93. Earlier blather claims it's the "fear factor"

3:30 pm : The bottom continues to fall out of the market with every notable index now losing at least 1.4% going into the close. The Russell 2000 continues to pace the way lower, now shedding 2.1% of its year-to-date leading 8.4% gain. The absence of any notable leadership whatsoever, as all 10 sectors are at session lows, continues to weigh on the proceedings as Utilities, one of the least influential sectors, remains the best of the worst but still boasts a decline of 0.7%.DJ30 -164.49 NASDAQ -36.40 SP500 -17.48 NASDAQ Dec/Adv/Vol 272/751/1.42 bln NYSE Dec/Adv/Vol 2375/870/1.26 bln

3:00 pm : Range-bound trading persists but the market continues to chalk up substantial losses as sellers remain in control of the action. Further underscoring the nervousness behind today's broad-based decline has been a 23% surge on the VIX (CBOE Volatility Index). Known as the "investor fear gauge," the spike higher suggests investors are cautiously buying options to hedge against further declines in equities. The inability by the Dow, S&P and Nasdaq to find support above key technical levels of 11185, 1268 and 2188, respectively, are also adding to today's struggles.DJ30 -131.15 NASDAQ -31.71 SP500 -13.92 NASDAQ Dec/Adv/Vol 2213/796/1.28 bln NYSE Dec/Adv/Vol 2301/933/1.12 bln

[Roland99]

95. The wobbling is getting more severe. Someone get the defibrillator

[Oversea Visitor]

98. Oh Dear Me

The spin not working
Chimp and Poddle show must be bad
Oh well Reality is a Bitch.

[54anickel]

97. And the yada - hey didn't gold close up for the day?

4:20 pm : Stocks closed at their worst levels of the day, snapping a three-day winning streak and positioning the broader market for its worst monthly performance in nearly two years as renewed inflation fears prompted broad-based consolidation. All 10 economic sectors lost at least 1.0% as the Nasdaq paced the way lower among the majors with a decline of 2.0% that pushed the tech-heavy index back into the red for the year.

With the market still extremely sensitive to weak economic data since the Fed's last rate hike on May 10th, Wal-Mart (WMT 48.41 -1.24) attributing higher gas prices to a May sales gain of only 2.3%, which was at the low end of a previously guided range of 2-4%, piqued concerns about the pace of consumer spending. Even though weak economic data recently had some positive implications on the hopes that it might lead the Fed to end their rate hike cycle, weak data today were taken at face value for their bearish implications for earnings growth.

Playing into concerns about consumption was a 6% drop in May Consumer Confidence -- the biggest decline since last September. Although the index does not correlate well with consumer spending and had little initial impact on stocks, investors were bothered by the idea that the report's detail showed a much less-confident outlook for the next 6 months -- concerns we've echoed since lowering our market view rating to Neutral in February.

Despite another decline in the greenback, which typically makes dollar-denominated commodities more attractive, the Materials sector turned in the day's worst performance as falling gold and copper prices sparked more profit-taking. The dollar chalked up its biggest loss against the euro in six weeks amid uncertainty as to whether or not Goldman Sachs Group (GS 149.91 -3.03) CEO Henry Paulson, who was tapped by President Bush this morning to replace John Snow as Treasury Secretary, can tactfully defend the Bush administration's dollar policy without undermining investor confidence.

Benefiting from the weaker dollar, though, was oil, which closed above $72 a barrel amid continued nuclear tensions with Iran but fueled concerns about escalating gas prices, especially now that the summer driving season has begun. Further underscoring the nervousness was the Energy sector's inability to take advantage of oil's 1.1% surge, which merely exacerbated the sense of uncertainty behind the sustainability of recent market gains. Even as Oil & Gas Storage turned in the day's best performance amid reports that an investment group is bidding to take Kinder Morgan (KMI 100.30 +15.89) private for about $13.4 bln, Energy's long-term prospects failed to renew the enthusiasm which has lifted the sector to a year-to-date leading 10.3%.

Consumer Discretionary was also in focus after valuation concerns prompted Deutsche Bank to downgrade General Motors (GM 26.57 -1.51). The year's best performing Dow component, up 48% year-to-date on Friday, relinquished nearly half of last week's upgrade-induced 14% surge. Aside from Autos, Homebuilding was another weak spot for the sector as weakness in the Treasury market lifted the 10-yr yield to 5.08%. Bonds were weak across the yield curve following hawkish remarks from Chicago Fed President Moskow, who told CNBC that inflation is near the upper end of the Fed's comfort zone, at about 2%. DJ30 -184.18 NASDAQ -45.63 SP500 -20.29 NASDAQ Dec/Adv/Vol 2314/724/1.76 bln NYSE Dec/Adv/Vol 2519/761/1.55 bln

[Skink]

99. DJIA off 184 at close.

http://www.marketcenter.com/stocks/overview.action;jsessionid=tskV5MP7oK_IQW6g?s=%24INDU

:wow:

[iconoclastic cat]

100. Okay, I'm an idiot. What does that mean, exactly?

Why is your little blue jaw dropping?

[Skink]

102. I'm panicking.

[iconoclastic cat]

103. Could you please explain why?

I'm so bad with all of that. I have a 401k that I'm not even watching.

[Skink]

106. Start watching the 401 k

[merwin]

111. Much of my 401k is invested in the asian market. Doing a lot better

right now than ours.

[RedEarth]

108. When the stock market goes down, you lose money....

when it goes up, you make money.... provided you(or any other person) has money invested in the stock market...unless you buy short, but that's an entirely different discussion.

[Renew Deal]

109. Clear the sidwalks

Here comes Skink

[CountAllVotes]

113. what it means is this:

Just about everyone, no matter what you are "invested" in (other than insured savings accounts and Treasury bonds/notes and gold which was up a couple of bucks) lost a lot of money today.

I'd be learning what you are invested in if I was you and check my balance.

[iconoclastic cat]

114. D'oh!

[panader0]

104. Dow Jones Industrial Averages (I think )

[panader0]

101. Glad the only "stock" I own are 5 chickens, 4 cats & a dog

[RedEarth]

105. 5%-6% drop over the last two weeks....getting real ugly

[kenny blankenship]

107. Bush was talking up the economy today

just like he has been "jawboning" the A-Rabs throughout his Presidency into selling us their oil cheap.
(And we all know how that one turned out)

[Renew Deal]

110. Invest in Guns

:P

[ramapo]

112. So?

It goes up, it goes down.

Our economy is strong and based on ... oh yes ...sound economic and tax policies.

Our currency is strong and based on ..... uh printing more of it.

Our balance sheet is strong and ...ummmm owned by foreign banks.

Our job market is strong and filled with .... oops low paying service jobs.

Our housing market is healthy and ...ahhh homes are affordable for all that can qualify for an
absurdly high mortgage.

The United States is not dependent on the good will of other nation states....

Look out below!!!!

[54anickel]

115. Wall Street touts transparency, yearns for secrecy

http://today.reuters.com/news/newsArticle.aspx?type=reutersEdge&storyID=2006-05-30T151952Z_01_N30230481_RTRUKOC_0_US-ECONOMY-HEDGEFUNDS-SECRECY.xml

NEW YORK (Reuters) - Scandals like the one that toppled Enron have sparked calls for greater corporate transparency, but the outcry for openness ends where Wall Street's murkiest worlds begin.

Hedge funds and derivatives, both largely unregulated, are among the least understood arenas in the world of finance -- and look set to stay that way.

With recent extreme volatility in global commodities and stock markets boosting an aversion to risk on Wall Street, some worry that hedge funds and their affinity for highly complex trades pose a threat to the financial system.


In many cases, these secretive funds use even comparatively simple derivatives contracts for speculation rather than their intended purpose: mitigating financial risk.

The trend has supported a credit boom that continues to fuel global economic growth, but has also swelled the credit derivatives market to an estimated $17 trillion. Its sheer magnitude may also hold the seeds of disaster, say pessimists.

more...

[Ghost Dog]

116. .

[54anickel]

120. Heh-heh-heh...Hey Boo-boo, is that you? Let's go get that pic-a-nic

bas-ket!!!

Is that Ranger Smith or Ranger Snow chasing the boys down?

[Ghost Dog]

122. Yeah. But,

Isn't she terribly beautiful?

And worthy of great respect?

(ed: sticky keyboard).

[JNelson6563]

118. Futures are a bit erratic

[54anickel]

121. Gloomy Tuesday on Wall Street

Dow tumbles 184, Nasdaq sinks 2 percent as investors worry about slowing growth; all 30 Dow stocks in the loss column.

http://money.cnn.com/2006/05/30/markets/markets_newyork/index.htm

NEW YORK (CNNMoney.com) - The stock market got creamed Tuesday in one of its worst days so far this year as falling consumer confidence spooked investors already anxious ahead of a week packed with economic news.

snip>

Elsewhere, the dollar fell, oil rose and Treasury bond prices ended little changed.

Tuesday's stock market declines more than erased last week's tentative gains and probably mean the sell-off in the market isn't over -- at least for now. Duh! :crazy:

"We got that. Now what do you do?" said Tony Dwyer, chief stock market strategist at FTN Midwest, referring to last week's modest bounce. "There's not going to be a lot of buying going into a week flush with economic data."

snip>

Dwyer said he's not looking for much good news from this week's economic numbers, which include a manufacturing report, construction spending, auto sales and chain store sales all on Thursday, and the widely awaited May employment report, due Friday.

Not to be overlooked are the minutes from the last Fed meeting, set for release Wednesday afternoon.

Dwyer believes the minutes will contain language indicating that the central bank's long-awaited pause in its rate-hiking campaign is fast approaching.

That could eventually be positive for stocks in coming weeks though he held out little hope for the rest of this week.

more single sentence paragraphs...:grr: