STOCK MARKET WATCH, Wednesday October 11

[ozymandius]

Wednesday October 11, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 831 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2114 DAYS
WHERE'S OSAMA BIN-LADEN? 1820 DAYS
DAYS SINCE ENRON COLLAPSE = 1781
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 6
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54


U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON October 10, 2006

Dow... 11,867.17 +9.36 (+0.08%)
Nasdaq... 2,315.43 +3.66 (+0.16%)
S&P 500... 1,353.42 +2.76 (+0.20%)
Gold future... 576.20 -6.60 (-1.15%)
30-Year Bond 4.88% +0.04 (+0.89%)
10-Yr Bond... 4.75% +0.05 (+1.06%)






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 Ike Iossif

WEEKLY CHARTS
New Pattern Emerging?

Last week we said:

"The major indices did take advantage of the "bullish set-up" the Dow and the SP rallied 1.4%, and NASDAQ rallied 1.8%. Going into next week there is still a bit of room left to the upside -roughly 0.5% to 1.0%- however, ultimately the indices will have to deal with the multiple negative divergences. Investors who are not very familiar with technical analysis might wonder what causes the negatives divergences and what they mean.

Negative divergences of the magnitude and nature we have observed during the latest rally are caused by its "narrowness." The rally has been very selective with most issues failing to participate. For example, although the Dow made new highs, the Transportation Index, the Mid-caps, the Russell 2000 -just to name a few- have failed to do likewise. Usually when a new bull move starts we see wide participation right at the very start. It is very-very rare for a new bull move to start narrowly and widen later on. Consequently, past history suggests that the latest rally is more likely the "end of something" instead of the "beginning of something."

(For the week of 10-10-06) The major indices did push a bit higher and now we have a new pattern emerging -although more confirmation is needed. Regardless of miniscule rallies early on, the pattern calls for a further decline lasting into the later part of next week, with another push rally back up towards last week's highs during options expiration week - the week ending 10-20-06. The pattern is supported by the current technical readings - most of which suggest lower prices next week - and by the fact that the SP is up against channel resistance that has prevailed for the last 3 years.

On a separate note we would like to point out that gold/gold stocks appear to have formed a short-term bottom.

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

[ozymandius]

2. Today's reports

12:00 AM Treasury Budget Sep (TBA)
Briefing Forecast $55.0B
Market Expects $52.0B
Prior $35.7B

10:30 AM Crude Inventories 10/06
Briefing Forecast NA
Market Expects NA
Prior 3355K

2:00 PM FOMC Minutes Sep 20

[UpInArms]

30. Meaningless Budget Deficit Report Released

Since everything is now "off budget" these numbers are worthless.

10:00 AM ET 10/11/06 TREASURY: FY '06 U.S. BUDGET DEFICIT TOTALED $248 BILLION

10:00 AM ET 10/11/06 FISCAL 2006 U.S. DEFICIT DOWN $71 BILLION FROM 2005

[ozymandius]

3. Oil slips below $59 in Asian trading

SINGAPORE - Oil prices fell further Wednesday after settling at a nearly eight-month low in the previous session as traders started to doubt that OPEC will cut output by a million barrels a day to prop up prices.

Light, sweet crude for November delivery dropped 11 cents to $58.41 a barrel in Asian electronic trading on the New York Mercantile Exchange. November Brent crude also slipped 11 cents to $59.23 a barrel on the ICE Futures exchange in London.

The Nymex crude contract declined on Tuesday by $1.44 to settle at $58.52 — the lowest close since Feb. 16.

Analysts said the 1 million barrel a day cut, amounting to almost 4 percent, sought by some OPEC members does not appear to have the support of Saudi Arabia, the cartel's largest producer, and is therefore unlikely to be implemented.

more

[ozymandius]

4. updating above: OPEC agrees to cut of one million barrels per day

LAGOS (AFP) - OPEC's member nations have collectively decided to reduce oil output by one million barrels per day, OPEC president and Nigerian Oil Minister Edmund Daukoru has told AFP.

"Our position to cut one million bpd (barrels per day) has received consensus. All members have agreed" on the figure, he said Wednesday, adding that the cut would go into effect next month.

very short

[ozymandius]

5. Iran's envisages 140,000 bpd oil output cut in line with OPEC

TEHRAN (AFP) - Iran will cut crude oil output by 140,000 barrels per day (bpd), if
OPEC decides to reduce its production by one million bpd to bolster prices.

"If all the OPEC members agree on the proposed cut of one million bpd of oil off the current ceiling, Iran's oil production will be cut by about 140,000 bpd," Javad Yarjani -- the oil ministry's head of OPEC affairs -- told the semi-official Fars news agency on Wednesday.

The cartel's current oil output ceiling stands at 28 million bpd, in which Iran, the second-largest producer, has a share of 4.11 million bpd.

more

[ozymandius]

9. Heating Bills Expected to be Less This Winter, DOE Says

(AXcess News) Reno, NV - According to the Department of Energy (DOE), Americans should see their winter heating bills lower than last year, mostly due to lower prices for heating oil and natural gas. But according to Southwest Gas Corporation, that doesn't apply everywhere as utility commissions set the rates differently according to each market.

In its monthly short-term energy outlook, the Department's Energy Information Administration said that heating prices should be lower or flat for the first time since the winter of 2001-2002, primarily for homes and businesses using natural gas.

Prices for petroleum products and natural gas are projected to increase from current levels as the winter season approaches. But, for the first time since the winter of 2001-02, residential heating fuel prices for most Americans are projected to be either lower than or close to prices prevailing during the previous winter, the DOE said.

The Department of Energy's short-term energy outlook says that under the baseline weather case, winter (October 1 to March 31) residential natural gas prices, which were hardest hit by last year’s hurricanes, are expected to average $12.23 per thousand cubic feet (mcf) compared to $14.64 per mcf last winter; heating oil prices are expected to average $2.46 per gallon compared to $2.45 per gallon; propane prices are expected to average $1.85 per gallon compared to $1.95 per gallon. Residential electricity prices are expected to average around 10.1 cents per kilowatthour (kwh) compared to 9.6 cents per kwh last winter.

http://www.axcessnews.com/modules/wfsection/article.php?articleid=11506

[Nickster]

26. "$12.23 per thousand cubic feet (mcf) compared to $14.64..."

Gee I'm so happy! Natural gas is only going to be twice the historical average, and twice what it's currently going for, but hey at least it's a little cheaper than last years outrageous spike!:eyes:

[AnneD]

32. Morning Marketeers....

:donut: and lurkers. Well, deregulation has been very successful-----for the energy companies. Last month, my electricity bill was almost equal to my rent:mad::nuke: Yeah, they got an earful from consumers. They are talking about reducing rates now. Well thanks fu nuttin .Now, was the apartment nice and chilly when I came home? Heck no, you could break a sweat just changing the TV channel. I am looking forward to winter. I told hubby he better get use to wearing thermals and bundling up 'cause we weren't going to heat until it drops under 40 degrees.



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

[WePurrsevere]

35. "Less" ONLY for those using Propane or Natural Gas.. NOT OIL or Electric.

This is going to hurt many folks up here since many (like us) have an oil furnace.

Although I would prefer to use electric because it's cleaner using electric in NY would be very expensive since we pay something outrageous like 14+ cents kwh (I'd have to look up our bill).

It's sure as heck not cheaper for us. We know that all it will take to make prices go wild is another stupid Bush /neo-con stunt like invading Iran and many will be hurting worse (and/or colder) then they were last Winter. :scared:

[stop the bleeding]

37. Crude futures extend loss, fall below $58

(Corrects day of the week)
SAN FRANCISCO (MarketWatch) -- Crude-oil futures fell Wednesday afternoon, touching a low under $58 a barrel as traders weighed an agreement by key oil producers to cut production against a monthly report that offered a lower oil-demand forecast and showed that world production fell in September.

On Wednesday, Edmund Daukoru, president of the Organization of the Petroleum Exporting Countries who also serves as Nigeria's oil minister, said OPEC has agreed to cut its global production by 1 million barrels per day in a move to boost prices, but members were still discussing how to share the cut, Dow Jones Newswires reported.
"The cut itself is agreed," Daukoru told reporters after a Cabinet meeting in the Nigerian capital, adding the cuts would begin at the end of the month.

"The volume is important, but unless it is from production or quotas are realigned, it is close to meaningless," said James Williams, an economist at WTRG Economics.

Crude oil for November delivery was last down 42 cents at $58.10 a barrel on the New York Mercantile Exchange after reaching a low of $57.90. The contract climbed to a high of $59.20 earlier, in volatile trading.

Among the products, November unleaded gasoline shed 0.88 cent to trade at $1.458 a gallon and November heating oil traded at $1.678 a gallon, down 0.29 cent.




http://www.marketwatch.com/news/story/Story.aspx?guid=%7B8F0DEFF2%2DA75B%2D4144%2D8E7B%2DAA3E6D65B89B%7D&siteid=

[stop the bleeding]

39. 3:02Nov. crude drops 93 cents, or 1.6%, to end at $57.59/brl

www.marketwatch.com

[ozymandius]

6. Fisher: will do what's needed to control inflation

LONDON (Reuters) - Dallas Federal Reserve Bank President Richard Fisher said on Tuesday that he's comfortable with current monetary policy but would be in favor of raising rates further, if needs be, to bring down inflation.

"I'm very comfortable with the policy of where we are today," Fisher said in a question and answer session in London after delivering a speech. But "if it appears that we haven't done enough to quell inflation, then obviously, I would be in favor of additional measures."

little blurb

[ozymandius]

7. Fed's Fisher says need better policy-making tools

LONDON (Reuters) - Central bank policy-makers increasingly must take into account data on the working of the global economy as they try to set domestic monetary policy, the president of the Dallas Federal Reserve Bank said on Tuesday.

Richard Fisher told a London investment seminar that spotty data on many emerging economies -- or no data at all -- showed the complexity of the task that policy-makers face, though they had to consider whatever was available.

"The bottom line is that we have a great deal of accounting and analytical work left to do as we seek to refine our ability to make monetary policy in a globalized world," Fisher said.

Fisher said that, for example, it was hard to properly gauge capacity utilization rates in any one country without taking into consideration rates in the global economy.

more

[AnneD]

33. I have a great idea for a policy making tool...

:evilgrin: (Lord please hold my tongue in check).

How about truthful data and accurate reports. I know it is one of those 'quaint' concepts, like the Bill of Rights and all, but real numbers can go a long way toward making better economic policies. Never mind, it was just another one of my crazy ideas. :crazy:

[ozymandius]

8. European bank stocks pull back

European equities were lower on Wednesday, as profit-taking followed the previous session's run-up to fresh five-year highs and banks giving back some recent gains.

By midday, the FTSE Eurofirst 300 fell 0.3 per cent to 1,418.93, Frankfurt's Xetra Dax slipped 0.4 per cent to 6,094.90, the CAC 40 in Paris lost 0.4 per cent to 5,288.27, while London's FTSE 100 shed 0.3 per cent to 6,053.3.

-cut-

Back in Europe, and Crédit Agricole, the French bank, fell 3.3 per cent to EU34.33 after downgrades from both UBS and ABN Amro.

UBS cut its rating from "buy" to "neutral" after Agricole spent around EU5bn on its purchase of 600 Banca Intesa branches. "Execution risk is increasing," the broker said, referring to the possibility of a complex stake swap in Nextra, the fund manager that Intesa sold to Agricole in 2005.

http://news.yahoo.com/s/ft/20061011/bs_ft/fto101120060710190470

[ozymandius]

10. Stock futures fall after Alcoa disappoints

NEW YORK (Reuters) - U.S. stock futures fell on Wednesday on concern about corporate earnings and economic growth after aluminum producer Alcoa Inc. (AA.N) missed Wall Street's profit expectations.

Alcoa, a Dow component and the world's largest aluminum maker, is the unofficial kick-off for the corporate earnings season and is often seen as a bellwether.

Investors were also nervous about the release of minutes from the Federal Reserve's September policy-setting meeting and what they may reveal about the outlook for interest rates.

Shares of Alcoa, one of the first big companies to report earnings, fell 3.7 percent in European trading as the company's profit almost doubled but missed expectations due to lower aluminum prices, higher costs and weakness in the North American automotive and home-building sectors.

http://www.washingtonpost.com/wp-dyn/content/article/2006/10/11/AR2006101100347.html

[radfringe]

11. white house is expected to

announce that the federal budget deficit has been reduced...

:eyes: but the numbers won't reflect the cost of the fiascos in Iraq (comma) Afghanistan

[ozymandius]

13. Hey Rad!

:donut: :donut: :donut:
Good to see you here today.

Ozy :hi:

[radfringe]

22. Hi back at you

great to see the stock thread still going...

I may not contribute much to it these days, but I still read it!

[UpInArms]

12. daily dollar watch

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

Last trade 86.93 Change -0.08 (-0.09%)

Dollar At Multi-Month Highs

http://www.dailyfx.com/story/dailyfx_financial_markets_headlines/Dollar_At_Multi_Month_Highs_1160503057826.html

Fundamentals were back on the menu for dollar traders Tuesday. And, while some event risk was present in this morning’s wholesales data, the real volatility drive came on the part of comments from Fed officials. With this mixture of hawkish commentary, strong data and the flush in liquidity from yesterday’s lulls, dollar traders have been able to capitalize on momentum and push many of the majors to new highs.

Against the euro, the 100-point dollar rally to 1.2515 has set a new 3-month low. The 180-point drop in the British pound was the most sizable, yet had only brought the pair to a two-and-a-half month low near 1.8525. Taking out round figures quickly, the dollar has run to 1.2700 from 1.2600 against the Swiss franc. Finally, garnering the attention of most market participants, the USDJPY advanced another 90 points to 119.80, the highest the pair has been this year.

The data flow this morning was light, but its strength was taken as a prelude to more market-moving indicators due later this week. Among the few indicators today, wholesales inventories and sales received the greatest amount of attention. Often used as a leading indicator to the retail sales gauge for the same month, August inventories at wholesalers grew 1.1 percent to $386.6 billion. This increase suggested business leaders were forecasting strong demand in the months ahead that would justify greater stores. While the outlook for demand was positive, sales during the month were already revealing the difficulty in keeping up with consumption. Sales over the same month had also grown 1.1 percent to $382.4 billion, leaving the inventories/sales ratio at its record low 1.15 for yet another month. Also, flying under most radars, today’s sentiment indicator from IBD was reflecting levels of optimism not seen in months. The headline figure for the October report rose to 52.4 from 50.5, the highest since at least February this year. Amongst the components, the outlook and Fed policy numbers had both hit highs similar to the overall read; and the personal financial health outlook actually marked a February high. Aside from this indicators however, the real strength in today’s move came on the part of regional Federal Reserve presidents. Kicking things off yesterday, San Francisco Fed President Janet Yellen had roused dollar bulls with remarks given at a independent banking forum in California. Consistent with the moderating tone of the central bank policy group, Yellen had said she was encouraged by the slight dip in core inflation reads and said interest rates current policy was “appropriate” to moderate inflation overtime. However, as has become common in many voting and non-voting members commentary, she went on to say, “it is clear that more progress is needed.” Dallas Fed President Richard Fisher was revealed much of the same from his own comments today. Fisher told a London investment seminar that inflation was still too high. Adding a new dimension to the cautious optimism that is now familiar, he had also weighed in on the sharp decline in the housing market by saying its slump won’t “overcome” the economy. Looking ahead to tomorrow, traders will take in the minutes from the September 20th meeting.

...more...

[UpInArms]

19. Dollar up on hopes for US economic soft landing

"Hopes" may not be reflective of reality :eyes:

http://news.yahoo.com/s/afp/20061010/bs_afp/forexus

NEW YORK (AFP) - The dollar rose on currency markets as market optimism increased that the US economy would glide to a soft landing after half a decade of sky-high growth.

The euro was lower at 1.2535 dollars at 2100 GMT compared with 1.2600 late Monday in New York.

The dollar was trading at 119.70 yen, up from 119.09 yen on Monday.

In earlier trading the euro had dipped to 1.2515 dollars, its lowest point against the US currency since July 19. The dollar had also reached 119.78 yen, its highest mark against the yen since late December 2005, before retreating.

Some analysts said the dollar has gained supported from mounting expectations that the US economy will avoid an economic hard landing or even recession.

That would encourage the
Federal Reserve to keep interest rates steady, rather than cutting them to support growth, and so undermining the dollar's appeal for foreign investors.

...more...

[NC_Nurse]

14. Ya know...

it's gotten to the point where I don't believe ANY of the numbers that come out anymore.
The game is truly rigged. :-(
I don't trust anyone in any branch of govt these days. * and his cabal have appointed a bunch of partisan hacks to cover up their financial catastrophe
and the dog and pony show just goes on and on....

[AnneD]

34. Imagine what it would be like...

if we pulled that crap in a hospital. You know, giving the Doc's and patient families the numbers that make them happy (and get great customer satisfaction numbers for us:sarcasm:). The patient would end up being deader than a door knob but by the charts he's in great shape. Well, either way they get discharged.(patented evil laugh).


Gee, I need to up my meds, I'm terribly sarcastic today.

[UpInArms]

15. Sprint discloses $4 Million in payments to chairman's relative

http://news.yahoo.com/s/nm/telecoms_sprint_payments_dc

NEW YORK (Reuters) - Sprint Nextel Corp. (NYSE:S - news) said on Tuesday it had amended its 2005 annual report to disclose about $4 million in payments that the No. 3 U.S. wireless company made to two companies owned by outgoing chairman Tim Donahue's brother in-law.

But Sprint Nextel said the disclosure was not related to its announcement earlier in the day that Donahue planned to retire at the end of 2006.

<snip>

Asked if there was any link between the timing of Donahue's retirement announcement and the disclosure, company spokeswoman Leigh Horner said: "The timing of the two is coincidental and one has nothing to do about the other."

In the same filing, Sprint Nextel also disclosed information about other board members and their business ties with the company.

...more...

[UpInArms]

23. Sprint Nextel's Chairman to Step Down Early

http://www.nytimes.com/2006/10/11/technology/11sprint.html?_r=1&oref=slogin

(free registration or try www.bugmenot.com)

Timothy M. Donahue, executive chairman of the Sprint Nextel Corporation, the third-largest wireless carrier, said yesterday that he would retire at the end of the year, in the latest shake-up at a company that has lost ground to its larger rivals Cingular and Verizon Wireless.

The announcement of Mr. Donahue’s departure came earlier than expected. In his employment agreement, filed with the Securities and Exchange Commission in March 2005, Mr. Donahue said he would remain as chairman through 2008. He was chief executive of the Nextel Corporation before it merged with Sprint more than a year ago.

In a statement yesterday from the company, Mr. Donahue, 57, said only that he looked forward to spending more time with his family and friends.

Sprint Nextel’s board did not immediately name a successor.

The announcement came less than two months after Len J. Lauer, the chief operating officer, left Sprint Nextel. Mr. Lauer, many analysts said, was a victim of the company’s poor performance in recent quarters.

...more...

[UpInArms]

16. Oracle to pay 98.5 mln dlrs to settle US pricing probe (PeopleSoft)

http://news.yahoo.com/s/afp/20061010/bs_afp/uscompanyitoracle_061010205729

WASHINGTON (AFP) - Oracle Corp. agreed to pay 98.5 million dollars to settle allegations that its PeopleSoft unit used "false pricing information" to win a federal contract, the Justice Department said.

The department said in a statement that the hefty corporate settlement by the US business software group was the largest ever obtained by the government in a civil settlement under the False Claims Act.

"The substantial recovery in this case will help to ensure that vendors provide truthful information and the government pays a fair price for products and services," said US Attorney Rod Rosenstein of the District of Maryland.

Justice Department officials said the case related to "defective pricing disclosures" made by PeopleSoft during the negotiation of a contract overseen by the General Services Administration (GSA).

<snip>

"As a result of the defective disclosures, most federal purchasers under PeopleSoft's ... contract paid inflated prices for purchases of software and services between March 17, 1997, and September 30, 2005," the department said.

...more...

[UpInArms]

17. US home loan demand falls, retreats from 9-mo high

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-10-11T110259Z_01_N11394185_RTRIDST_0_ECONOMY-MORTGAGES-UPDATE-1.XML

NEW YORK, Oct 11 (Reuters) - U.S. mortgage applications fell last week, retreating from a nine-month high as home loan interest rates crept up, an industry trade group's data showed on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and purchasing loans, fell 5.5 percent to 599.1, subtracting from the previous week's 11.9 percent surge to 633.9, which was its highest level since January.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.27 percent, up 0.03 percent from the previous week, but below a four-year high of 6.86 percent touched in June.

The MBA's seasonally adjusted purchase mortgage index, considered a timely gauge of U.S. home sales, fell 5.3 percent to 383.3, substantially below its year-ago level of 469.5.

The group's seasonally adjusted index of refinancing applications decreased 5.8 percent to 1,857.0. A year earlier the index stood at 2,004.9.

...more...

[UpInArms]

18. Cheerleader Rpt: Analysts rethink views on slowing of US economy

http://news.yahoo.com/s/ft/20061010/bs_ft/fto101020061855440429

Influential voices inside and outside the Federal Reserve are challenging the notion that the US economy is heading for a deepening housing-led slowdown, cheering equity investors and sending bears in the bond market into retreat.

The thesis, put forward by Fed vice-chairman Don Kohn last week, and endorsed by
Alan Greenspan, the former Fed chairman on Friday, argues that the trough in housing market activity could be near, and that the economy should come through it in reasonable shape.

Fed officials have also sought to lower expectations that rate cuts are imminent.

With financial conditions more broadly strongly supportive, energy prices falling and unemployment touching a new low of 4.6 per cent, financial market economists are reviewing their calls. Morgan Stanley has upped its growth forecast and predicted a rate rise early next year. Goldman Sachs still expects rates to be cut by 125 basis points next year.

The argument between economists mirrors a tug-of-war between different financial markets on the outlook for growth.

...more...

[UpInArms]

20. OT: Study: Small farms miss out on fed money

http://news.yahoo.com/s/ap/20061010/ap_on_bi_ge/farm_grants

WASHINGTON - Small- and medium-sized farms are missing out on the largest share of federal research and grant dollars for agriculture, according to a study released Tuesday.

Of $500 million spent on four Agriculture Department research and grant programs, only about 5 percent went to farmers with small- or medium-sized operations or beginning farmers, the Nebraska-based Center for Rural Affairs said.

Many projects that got funding "were essentially research and development initiatives for large food companies," the report concluded. Analysts looked at funding in 2001 and 2002.

The nonprofit group argues the programs are crucial to traditional, independent family farms and ranches, which are disappearing across America.

In Iowa alone, the number of mid-sized farms, those with sales between $100,000 and $499,999, dropped 19 percent from 1997 to 2002, the center said. Nationwide, the average age of farmers has seen an annual rise of one year since 1997.

"Given the demographics of agriculture in America ... the inability of major USDA research and grant programs to address the topic of beginning farmers and ranchers is disappointing," said the center's Kim Leval, an author of the report.

...more...

[UpInArms]

21. DOJ probes buyout funds on anti-competition: report

I bet that The Carlyle Group never ever gets named in this one.

http://news.yahoo.com/s/nm/20061010/bs_nm/financial_buyout_wsj_dc

NEW YORK (Reuters) - The U.S. Department of Justice has begun an inquiry into potentially anti-competitive behavior by private-equity firms, The Wall Street Journal reported on Tuesday, citing people familiar with the matter.

Justice Department officials have sent letters to private equity firms, including Kohlberg Kravis Roberts & Co. and Silver Lake Partners, the Journal said.

In a probe of anti-competitive behavior, the Justice Department is asking for information on deals and auctions, the paper said.

<snip>

Private equity firms buy companies and typically cut costs, restructure the businesses, and sell them three to five years later. Most firms keep about 20 percent of the profit from the exits and give the rest to their institutional investors -- pension funds, college endowments and wealthy individuals.

...more...

[texpatriot2004]

24. K & R nm

[UpInArms]

25. PIEHOLE ALERT: "press-conference" at 11:00 EST

8:53 AM ET 10/11/06 PRESIDENT BUSH TO HOLD PRESS CONFERENCE AT 11 A.M. EASTERN

[UpInArms]

27. pre-opening blather

09:15 am : S&P futures vs fair value: -4.6. Nasdaq futures vs fair value: -9.0.

09:01 am : S&P futures vs fair value: -4.8. Nasdaq futures vs fair value: -9.5. Bearish bias persists in pre-market trading as Alcoa's headline disappointment continues to act as an overhang and provide investors with an excuse to lock in some gains that lifted the Dow to another new record close yesterday. Aside from the market's focus on earnings, investors today will also key in on a speech (1:30 ET) from Richmond Fed President Jeffrey Lacker as well as details behind his dissention at the last Fed meeting when the FOMC Minutes are released at 2:00 ET.

08:30 am : S&P futures vs fair value: -5.5. Nasdaq futures vs fair value: -9.5. Still shaping up for the major averages to open lower as the S&P 500 and Nasdaq 100 futures continue to trade well below fair value. Even though some of the corporate news is welcoming for investors, like BMC Software (BMC) raising its Q2 outlook, downside FY07 guidance from Monsanto (MON), a warning from Legg Mason (LM) and the absence of economic data is placing even more emphasis on the misfortunes of blue chips like AA and DNA, so far leaving the market reluctant to regain momentum perhaps until the earnings picture becomes clearer over the next couple of weeks.

08:00 am : S&P futures vs fair value: -5.1. Nasdaq futures vs fair value: -8.5. Early indications suggest a sharply lower open for stocks as earnings season officially gets underway on a sour note. Kicking things off last night was Alcoa (AA), which badly missed Wall Street forecasts, pushing shares of the Dow component down 5% in pre-market trading even though an 89% year/year rise in Q3 earnings keep the S&P 500 on pace for a 13th consecutive quarter of double-digit growth. Topping estimates, though, was Genentech (DNA), which also raised its full-year 2006 outlook. Nonetheless, it too is under pressure in early trading and weighing on overall sentiment after sales for some of DNA's drugs fell shy of expectations.

[UpInArms]

28. McAfee CEO, president out after options probe

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B8007B2BC%2D25B7%2D4AF3%2DA7E6%2D4822607FF59E%7D&symbol=

WASHINGTON (MarketWatch) -- Two top executives of security-software maker McAfee Inc. were forced out of their posts after an internal probe found that the company improperly accounted for up to $150 million in stock-option costs.

McAfee (MFE : 25.79, +0.25, +1.0% ) said Wednesday that George Samenuk retired as chief executive and that Kevin Weiss was fired as president. Samenuk was replaced on an interim basis by board member Dale Fuller, a former Borland Software Corp. CEO who joined the company in January.

"After almost six years at McAfee, I have retired as chairman and CEO in the best interests of the company, its shareholders and employees," Samenuk said in a statement. "I regret that some of the stock-option problems identified by the special committee occurred on my watch."

The changes in the executive suite took place as McAfee said it would incur $100 million to $150 million in noncash charges to account for options-related expenses over a 10-year period. In July, McAfee said an internal review of options practices determined that financial revisions were likely.

The Santa Clara, Calif., company said that with its review now mostly complete, it plans to file restatements with the Securities and Exchange Commission as soon as possible.

...more...

[UpInArms]

29. 10:10 EST numbers, blather and bye!

Dow 11,831.31 35.86 (0.30%)
Nasdaq 2,306.85 8.58 (0.37%)
S&P 500 1,348.54 4.88 (0.36%)
10-Yr Bond 4.744% 0.004

NYSE Volume 373,813,000
Nasdaq Volume 268,331,000

10:00 am : Major averages continue to languish near morning lows as nine out of 10 sectors remain negative. Materials is pacing the way lower (-0.9%), due to Alcoa's disappointment as well as downside guidance from Monsanto (MON 43.30 -3.10). The absence of leadership from Financials (-0.7%), however, is taking an even bigger toll on early sentiment. Investment Banks (-1.3%) have been hit the hardest as online brokers (e.g. ET -8.2%, SCHW -6.0%) sell off amid reports that Bank of America (BAC 54.12 -0.51), which was downgraded at Bernstein, will offer free online stock trades. Asset Managers (-1.0%) are also under pressure after Legg Mason (LM 90.93 -14.38) warned Q2 earnings will fall well short of expectations. ..XBD -4.2%.DJ30 -42.26 NASDAQ -11.17 SP500 -4.97 NASDAQ Dec/Adv/Vol 1677/668/162 mln NYSE Dec/Adv/Vol 1879/755/72 mln

09:40 am : Stocks open lower across the board as earnings season begins with a whimper, leaving investors concerned that Q3 forecasts may be overly optimistic. Per usual, Dow component Alcoa (AA 26.65 -1.64) officially kicked things off last night, reporting an 86% year/year profit improvement, which keeps the S&P 500 on track for a 13th consecutive quarter of double-digit profit growth. Be that as it may, Alcoa's Q3 result falling well short of analysts' expectations questions the sustainability of the recent rally, especially with the Dow at all-time highs, and whether stocks have gotten ahead of themselves in pricing in good earnings news.DJ30 -44.66 NASDAQ -12.41 SP500 -5.43 NASDAQ Vol 96 mln NYSE Vol 48 mln

[OrangeCountyDemocrat]

31. Stating The Obvious - Media Shill Whores Are Completely DENSE!!!

My god, I can't believe what BS I just heard on CNBC. Or perhaps I can.

Liz was Pimping an upcoming report on how oil prices keep declining, and there are people saying it's a conspiracy. Then they cut to that older "IDIOT" who was at the NYSE. He says, if there are people out there effective at getting the price to decline so substantially, then WHY DID THEY LET IT RISE IN THE FIRST PLACE?" Then he goes, "BUT THAT'S JUST ME."

WHY DID THEY LET IT RISE IN THE FIRST PLACE? I'm more qualified to host this POS show than this SCHMUCK.

[specimenfred1984]

36. OPEC is a group whos sole purpose is to fix oil prices

Of course it's a conspiracy, that's why OPEC was formed. In the U.S., Goldman Sachs is the primary market rigging company and not just the energy markets.

[AnneD]

41. Hi OCD...

:hi: Isn't it amazing what you can see once your eyes are opened: colours are brighter, defination sharper....BULL SHIT MORE OBVIOUS (and pungent).:eyes:

[Maeve]

38. Blather update

Dow 11,818.51 Down 48.66 (0.41%)
Nasdaq 2,302.56 Down 12.87 (0.56%)
S&P 500 1,347.30 Down 6.12 (0.45%)
10-Yr Bond 4.7880% Up 0.0400
NYSE Volume 2,007,083,000
Nasdaq Volume 1,590,109,000

No, it wasn't the helicopter/plane crash that sent the Dow diving...

2:30 pm : Indices initially slip to afternoon lows following the release of the FOMC Minutes and in sympathy with a reversal in the Treasury market; but market losses currently remain modest at best. With the minutes noting that members "continued to see a substantial risk that inflation would not decline as anticipated," and are concerned about the Fed's credibility, bond traders appear less convinced of a possible Fed easing that has been priced into the Treasury market over the last couple of months. To wit, the 10-year, which was up 4 ticks to yield 4.73% before the report, is now down 8 ticks to yield 4.78%. On a positive note, members suggested the decision to pause on September 20 was "less difficult" than the "close call" in August and indicated that "real GDP growth would continue to slow into the second half of 2006," offering further evidence the Fed will remain on hold, "before strengthening gradually thereafter."
http://finance.yahoo.com/marketupdate/overview

[Maeve]

40. Final numbers and blather

Dow 11,852.13 -15.04 (0.13%)
Nasdaq 2,308.27 -7.16 (0.31%)
S&P 500 1,349.95 -3.47 (0.26%)

4:20 pm : Aside from another pullback in oil prices, investors found little to get excited about Wednesday, as some disappointments on the earnings front kicked off the Q3 reporting season on a sour note, as did a hawkish interpretation of the FOMC Minutes.

Before the market even opened, the underlying tone was bearish after Alcoa (AA 26.85 -1.44) officially kicked things off a night earlier by badly missing Wall Street's forecasts. Sure, the Dow component reported a solid 86% year/year profit improvement to keep the S&P 500 on pace for a 13th consecutive quarter of double-digit profit growth and lend support to our Moderately Bullish market view. Its huge seventeen cent miss, however, left investors questioning the sustainability of the recent rally, especially with the Dow closing at a new all-time highs a day earlier. Also taking a toll on sentiment and the Materials sector was Monsanto (MON 43.49 -2.92), which matched expectations but raised concerns about slowing profit growth after it issued downside FY07 EPS guidance.

The absence of leadership in Energy also stalled some of the recent momentum seen in blue chips. Crude oil futures extended Tuesday's 2.4% slide with a 1.5% decline, closing at a new 2006 low near $57.50/bbl. Even though a "considerably lower level of energy prices of recent weeks, if sustained, would help reduce overall inflation and damp increases in core prices," as was stated in today's FOMC minutes, further deterioration in oil renewed doubts about the Energy sector's ability to keep generating record earnings.

The FOMC Minutes indicated that "real GDP growth would continue to slow into the second half of 2006," which provides evidence the Fed will remain on hold, "before strengthening gradually thereafter." The FOMC minutes, though, also noted that members "continued to see a substantial risk that inflation would not decline as anticipated." Unfortunately for the stock market bulls still reaping the benefits of falling Treasury yields, Fed officials saying they're still "quite concerned" about inflation left bond traders less convinced of a possible Fed easing, which has been priced into the Treasury market over the last couple of months. The end result was more consolidation and a subsequent rise in interest rates.

As if a rise in borrowing costs weren't already a concern for rate-sensitive Financials, the sector was dealt an extra blow after asset manager Legg Mason (LM 87.02 -18.29) warned that fiscal Q2 earnings will fall well short of expectations. Investment Banks (-1.1%) were another sore spot as online brokers like E*Trade (ET 22.31 -2.15) and Charles Schwab (SCHW 17.20 -0.86) sold off amid reports that Bank of America (BAC 54.04 -0.59), which was downgraded at Bernstein, will offer free online stock trades.

Separately, reports that a small airplane crashed into a building in New York City sent the major averages to their worst levels of the day around 3:00 ET, but after most indications suggested it was not a terrorist act, the indices pared those losses merely to close with more modest declines.

[Tace]

42. The Masses Have Never Thirsted For Truth (Mogambo)

(Your weekly dose of Mogambo... better late than never : ))

Richard Daughty, the angriest guy in economics -- World News Trust

Oct. 11, 2006 -- With a bleary, jaundiced eye, I wearily note that Total Fed Credit was up $4.4 billion, to a total of $829.64 billion, making it look like they are moving back in the "inflation or die!" mode. But maybe not, as (judging by their track record of the last decade), TFC should be up to around $850 or so. Or more. But it ain't.

But this seeming lack of new TFC is important because, if you care to check, you will notice that the Fed stopped increasing TFC in February 2000, clearly coincident with the Crash of 2000, where lots of people lost tons of money. Now, something bad seems to be getting ready to happen again, and if the Fed does not start jamming money down somebody's throat pretty soon and making them spend it, the stock market will soon be toast.

Not surprisingly, then, I also note that foreign central banks put a whopping $13 billion into their accumulated Fed holdings of U.S. securities last week. $13 billion! In one week! After taking out $12 billion the week before! This is the same worrying kind of turbulence that fluid systems exhibit right before breaking up in a chaotic, catastrophic event.

Putting words in the mouth of Sol Palha of the Tactical Investor, he thus notes in his essay, "Dow 14,660 Has Come And Gone," that the handsome, dashing, charming Mogambo was right, both about how his blue eyes merrily twinkle under the starlight, and about this chaos/ turbulence/ volatility thing, too, when he says, "The next few months are going to be packed with extreme volatility; expect the volatility to increase by a factor of 2 to 3."

more

http://www.worldnewstrust.com/index.php?option=com_content&task=view&id=331