STOCK MARKET WATCH, Tuesday October 24

[ozymandius]

Tuesday October 24, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 818 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2127 DAYS
WHERE'S OSAMA BIN-LADEN? 1833 DAYS
DAYS SINCE ENRON COLLAPSE = 1794
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 23, 2006

Dow... 12,116.91 +114.54 (+0.95%)
Nasdaq... 2,355.56 +13.26 (+0.57%)
S&P 500... 1,377.02 +8.42 (+0.62%)
Gold future... 582.90 -13.50 (-2.32%)
30-Year Bond 4.95% +0.05 (+0.98%)
10-Yr Bond... 4.83% +0.04 (+0.88%)






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 Rob Kirby

A BLAST FROM THE PAST AND MORE

Former Fed Chairman Alan Greenspan had a few “choice” words for his Russian counterparts late last week when he warned them that their refusal to allow the Ruble to meaningfully appreciate against the dollar may have inflationary consequences.

Greenspan Warns Russian Authorities Against Investing in U.S. Dollar
Created: 20.10.2006 12:52 MSK (GMT +3), Updated: 15:43 MSK
MosNews

Russia should be wary about the inflationary impact of buying U.S. dollars to insulate its economy from an influx of foreign earnings from oil exports, former Federal Reserve Chairman Alan Greenspan said on Thursday, Oct. 19.

-cut-

Anyhow, Greenspan goes on to “speculate” about the Ruble’s future prospects as a “potential” Reserve Currency – and he points out how important the “rule of law” is – as a fundamental precondition for such an occurrence. Me wonders, again, speaking of rules in law - if he might be referring to such fundamental things as “habeas corpus” – an inalienable, basic human right since the 12th century that the U.S. recently discarded. Who knows, Greenspan always did have a way with words – didn’t he?

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

[Demeter]

28. Greenspan Used Words As Walls

to build little mazes for the masses, and to keep all the information away from the public eye.

[ozymandius]

2. Crude oil futures edge lower in London

LONDON - Crude futures fell Tuesday as expectations of ample inventories eased supply concerns and markets were unimpressed by OPEC's decision to cut production.

Light sweet crude for December delivery fell 30 cents to $58.51 a barrel in electronic trading on the New York Mercantile Exchange. December Brent crude futures on London's ICE Futures lost 17 cents to $59.04.

"The market's reaction would seem to be a no confidence vote in OPEC's ability to cut 1.2 million barrels a day from output," Mike Fitzpatrick, an analyst with Fimat USA in New York, said in a daily note.

-cut-

The Energy Information Administration is to issue weekly U.S. oil data Wednesday. Crude oil inventories are expected to grow for the fourth week in a row, by 2.7 million barrels, according to a survey of analysts by Dow Jones Newswires. Distillates stocks, which include heating oil, will likely fall by 1.6 million barrels to 143.8 million barrels, the survey showed.

more

[ozymandius]

3. BP says Q3 profits jump 58 pct on asset sales

LONDON (Reuters) - Oil producer BP Plc's (BP.L) third-quarter replacement cost net profit rose 58 percent to $6.975 billion thanks to asset sales but still undershot analysts' forecasts as production and refining margins fell.

BP said in a statement that it was setting aside another $400 million to cover compensation claims related to a fatal blast at its Texas City refinery last year, pushing the total bill, including repairs and lost profits to around $2 billion.

The world's second-largest fully-quoted oil company by market capitalization also ditched its 2006 oil and gas production target, saying it would produce only 3.95 million barrels of oil equivalent (boepd) per day this year compared to an original target of 4.1-4.2 million boepd.

more

[ozymandius]

4. Oil and gas discovered in Zambia

The discoveries were made in western Zambia, near the border with Angola, already a major oil exporter.

President Levy Mwanawasa said that samples from 12 sites have proved positive in tests conducted in Germany.

-cut-

'Strengthen the economy'

Mr Mwanawasa said the government would now appoint a special cabinet committee to select foreign oil firms to conduct comprehensive exploration.

"These results confirm the presence of oil and gas in the sub-surface of the two districts of Chavuma and Zambezi," he said.

http://news.bbc.co.uk/2/hi/business/6076636.stm

[ozymandius]

5. OPEC's Cuts Signal Pricing Worries

OPEC delivered a stronger-than-expected message to skeptical oil markets at its "emergency" meeting in Doha, Qatar, on Oct. 19. The 11-nation cartel said that it would cut production by 1.2 million barrels per day -- some 200,000 more than the oil ministers had been tipping to the market in recent weeks.

In an attempt to convince traders that it was serious about slashing output, OPEC said that the cuts would come from current production of around 27.5 million barrels per day (plus 2 million in Iraq) rather than from quotas, which have become somewhat fictional. OPEC also published a detailed list of cuts down to the nearest thousand barrels. They range from 380,000 barrels per day for Saudi Arabia to 39,000 in Indonesia.

The move shows that OPEC is very worried about the sharp fall in prices of around 25% from the July peak of more than $78 per barrel for West Texas Intermediate (WTI) crude. Many analysts think that unless OPEC slashes production substantially, inventories will build up rapidly in the coming months, further depressing prices. So far, OPEC's unexpectedly hard-line position has not had much impact on the market. Prices for WTI, the benchmark U.S. crude, were at $58.75 per barrel on Oct. 20.

-cut-

The Saudis could live with a lower price than the current level of around $60 per barrel but agreed to go along with the plan to achieve consensus on both prices and production levels (see BusinessWeek.com, 10/4/06, "Why Are Saudis Approving Cheaper Oil?"). Yet the Saudis don't want to have to absorb the bulk of the cuts, as they have at other times of weakening demand. In this case, they are only pledging to cut 380,000 barrels per day, bringing their total production to about 8.7 million barrels per day, or roughly one-third of OPEC output.

http://news.yahoo.com/s/bw/20061023/bs_bw/gb20061020427606

[54anickel]

48. Bush warns OPEC not to cut oil output too far

http://www.msnbc.msn.com/id/15390209/

President Bush told CNBC Monday that recent drop in oil prices was the result of speculators reversing course after contributing to the run-up in prices. And he warned OPEC producers that curbing production in an effort to keep oil prices high could backfire.

"I would hope that the OPEC nations understand that high prices of oil could wreck economies," he said. "And if they wreck economies, it means the purchasers will be fewer."

Bush said that, despite the recent drop in oil prices, America needs to continue to invest in new technologies and develop alternatives to fossil fuels.

snip>

“The strength of this economy depends upon the strength of the small business sector,” Bush said at a round-table early in the day, where he talked about his administration’s role in reducing taxes and limiting regulation and lawsuits that he says impede the entrepreneurial spirit in America.

“The role of the government, it seems to me, is to make sure that dreamers are rewarded for their hard work and their ingenuity and success. And the best way to do that is to reduce taxes on people,” Bush said.

more...

[ozymandius]

6. FTSE marks time in quiet trading

London equities were little changed on Tuesday on another subdued trading day in the market.

The FTSE 100 was up 10 points, or 0.1 per cent, at 6,175.3 in late morning trade, while the mid-cap FTSE 250 gained 14.1 points, 0.1 per cent, to 10,374.1.

Trading volumes were light, as they had been in the previous session.

The muted performance was despite the Dow Jones Industrial Average hitting an all-time high overnight.

http://news.yahoo.com/s/ft/20061024/bs_ft/fto102420060644522079

[ozymandius]

7. Tokyo stocks mixed on mobile price fears

Fears of a price war between Japan's mobile carriers counterbalanced positive earning results, leaving the Japanese market almost unchanged on the day by the close of trading on Tuesday.

The Nikkei 225 fell 0.1 per cent to 16,780.47 while the broader Topix rose 0.2 per cent to 1,662.53.

The decision by Softbank, the number three player in Japan's mobile market, to announce price cuts Monday night provoked share price falls among the three main mobile carriers.

Softbank itself closed down 1.1 per cent at Y2,655, after rising in morning trading. The onset of a price war drove shares in NTT DoCoMo (NYSE:DCM - news), Japan's dominant mobile carrier, down 2.1 per cent to Y184,000.

more

[ozymandius]

8. Defaults highest this month since last September

Company defaults this month will be the highest since September last year in what is a possible early danger sign of trouble ahead for the global economy, bankers have warned.

The five companies, which have either defaulted or are predicted to, account for about $2.2bn of debt between them, according to research by Deutsche Bank.

-cut-

Moody's junk grade default rate for September stood at 1.5 per cent, the lowest since May 1997.

It means that only 1.5 per cent of the junk or speculative grade companies in its survey have defaulted in the past year.

a few more one-sentence paragraphs

[ozymandius]

9. Government bonds fall amid caution ahead of Fed meeting

Government bonds round the globe fell on Monday amid investor caution ahead of the US
Federal Reserve's two-day rate-setting meeting that starts on Tuesday.

The US central bank is widely expected to keep rates unchanged at 5.25 per cent on Wednesday. However, some investors are increasingly nervous that the Fed might be reluctant to cut rates and may even resume raising them. A survey for the FT has suggested that most US fund managers believe the Fed will resume increasing interest rates in the coming months.

-cut-

The US Treasury market was further weighed down by the prospect of this week's $41bn supply of new government paper. In late trading in New York, the two-year US Treasury yield was up 3.5 basis point to 4.914 per cent while the 10-year US Treasury was yielding 4.827 per cent, up 3.6bp.

"With the Fed starting its two-day meeting , we will probably find that most markets remain subdued until the reveals its decision tomorrow evening," said David Brown, chief European economist at Bear Stearns.

more

[Ghost Dog]

19. FOREX-Dollar inches up but hemmed in ranges ahead of Fed

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061024:MTFH54879_2006-10-24_10-20-41_L24274340&type=comktNews&rpc=44

LONDON, Oct 24 (Reuters) - The dollar was confined to narrow ranges on Tuesday, edging up slightly against most major currencies as traders geared up for the Federal Reserve's policy decision and statement on Wednesday.

The Fed's Open Market Committee is widely expected to leave interest rates on hold at 5.25 percent for the third consecutive time but to reiterate concerns on inflationary pressures.

Meanwhile, the yen remained under light selling pressure after Japan's top financial diplomat indicated he wasn't too concerned with the level of the yen, which has sold off heavily in recent months.

Euro and sterling traders were on the look out for speeches by European Central Bank Governing Council member Guy Quaden and the Bank of England's chief economist Charles Bean later in the day.

The market's spotlight, however, stayed on the dollar and the FOMC's two-day meeting which gets under way on Tuesday.

"With a dearth of significant data so far this week it seems the path of least resistance is to continue buying dollars," Bank of America currency strategist Kamal Sharma said.

/...

[ozymandius]

10. Former Enron Chief Executive Officer to serve 24 years

Former Enron CEO (Chief Executive Officer) Jeffrey Skilling was ordered on Monday to serve 24 years and four months in prison, the harshest punishment by far in Enron's scandalous collapse and one that capped a string of tough sentences for top executives in corruption cases.

-cut-

Judge Lake, who told the US Bureau of Prisons to recommend when Skilling should report to prison, suggested the 52-year-old be sent to the federal facility in Butner, North Carolina, for his role in a case that came to symbolise corporate fraud in America.

The judge said Skilling's crimes had resulted in lifetimes of poverty for thousands of people.

Outside the courthouse, Skilling vowed to appeal his sentence and also asked that his restitution money of about 45 (m) million US dollars go straight to victims, instead of being seized first by the federal government. "The word 'Enron' conjures up some really awful things," he said. "I don't fault the judge for what he did. I believe I'll be vindicated."

more

[Ghost Dog]

17. Enron's Skilling gets 24 years prison for fraud

http://www.afp.com/english/news/stories/061024064629.z56fzllu.html

HOUSTON, United States (AFP) - Former Enron chief executive Jeffrey Skilling was sentenced to more than 24 years in prison for fraud and conspiracy in one of the biggest corporate scandals in US history.

"Crimes of this magnitude deserve severe punishment," Judge Sim Lake said when announcing the 292-month sentence.

"Today's sentence is a measure of justice for the thousands of people who lost their jobs and millions of dollars in investments when Enron collapsed," said Assistant Attorney General Alice Fisher.

"Jeffrey Skilling will now spend more than 24 years in prison for committing one of the largest frauds in the history of corporate America," Fisher said.

Skilling, 52, who had faced a possible 185 years in jail, showed little emotion as his sentence was handed down.

/...

[ozymandius]

11. AT&T is telecom’s top political patron with $2.4M in donations

WASHINGTON—AT&T Inc. and BellSouth Corp., awaiting final federal action on their $79 billion merger and key stakeholders in the telecom reform debate on Capitol Hill, have been among the most generous donors to federal candidates and political parties in the 2006 election cycle.

Indeed, AT&T is king of the hill, having spent more—$2.4 million-plus through Sept. 11—than any other company in the telecom, Internet and media industries, according to Federal Election Commission data compiled by the Center for Responsive Politics. BellSouth is not far behind, contributing $1.1 million during the same period to help congressional incumbents and other candidates fund their campaigns.

Verizon Communications Inc., parent to No. 2 wireless operator Verizon Wireless, is just a notch under AT&T in political money spending, giving 59 percent of its $1.7 million to Republicans.

-cut-

AT&T has steered two-thirds of campaign contributions to Republicans, while BellSouth has put 59 percent of its donations toward the GOP. The allocation of political money could change next year if Democrats reclaim control one or both houses of Congress and the likelihood telecom reform legislation will still be in play.

http://rcrnews.com/news.cms?newsId=27596

[ozymandius]

12. IBM Takes On Amazon

In a legal case that could have broad implications for e-commerce and patent law, IBM sued Web retailer Amazon.com on Oct. 23, accusing the company of violating five patents that were filed in the late 1980s and early 1990s. IBM is seeking an injunction that would stop Amazon.com from using the patents, which Big Blue claims are at the heart of the retailer's online business.

The patents cover basic methods for conducting commerce online. These include storing data and presenting advertising in an interactive service; using hypertext links in connection with user goals and activities; and ordering items using an electronic catalogue. "These are fundamental patents," says John E. Kelly III, senior vice-president of IBM Technology and Intellectual Property. "If you're doing e-commerce in any way similar to what Amazon.com is doing, you're using this intellectual property."

-cut-

EXAMINING THE LAW

The Amazon conflict was given the internal code name Scyphia, named after the land of the Amazons, the fierce warrior women, in Greek mythology. The patents were filed in 1988, 1990, and 1992, and most were granted in the mid-1990s. The advertising patent was granted this year.

Lawyers and intellectual property experts say this case could help clarify the law concerning Internet patents, some of which have been criticized for being overly broad. "It's helpful to get good cases for courts to decide on, and this could be one of them," says Ashish Aurora, a professor of economics at Carnegie Mellon University's H. John Heinz III School of Public Policy and Management.

more

[ozymandius]

13. Google unveils ‘custom’ searches

Google will on Tuesday launch a customisable search engine that users can carry on their own blogs and other websites, a move that potentially opens up a big new market for its search listings and related advertising.

Marissa Mayer, vice-president of search products and user experience, said it was the most significant launch that Google would announce in the final months of this year. By letting companies and individuals build their own specialised search engines, it will also create competition for the many new “vertical” search products that have recently been launched on the web, she added.

These sites, which deal with narrow areas of interest from job vacancies to information technology, have become one of the industry’s big new growth areas.

Users of Google Custom Search Engine will be able to select the websites they want to be included in their searches, and add to this list in future by “tagging” websites they visit. Any searches will then return results just from that slice of the Google search index.

http://www.ft.com/cms/s/a53ea278-62e9-11db-8faa-0000779e2340.html

[Hugin]

30. Interesting concept...

So, using these customizable search engines will be a little like setting
a list of favorite links in a browser.

Sounds useful.

[Ghost Dog]

14. (FAUX) Bush to Trumpet Strength of the Economy

http://www.foxnews.com/wires/2006Oct23/0,4670,BushEconomy,00.html
Monday, October 23, 2006

By DEB RIECHMANN, Associated Press Writer

WASHINGTON — President Bush on Monday trumpeted the strength of the economy, an important issue in about two dozen congressional races that will determine whether Republicans retain control of the House.

Faced with difficult midterm elections and a deteriorating situation in Iraq, Bush is stressing the positive.

"The strength of this economy depends upon the strength of the small business sector,"Bush said at a round-table where he talked about his administration's role in reducing taxes and limiting regulation and lawsuits that he says impede the entrepreneurial spirit in America.

"The role of the government, it seems to me, is to make sure that dreamers are rewarded for their hard work and their ingenuity and success. And the best way to do that is to reduce taxes on people,"Bush said.

White House advisers, who think the president should get more credit for recent positive economic news, insist that Bush is not trying to change the subject away from the unpopular war. The president will continue to talk about Iraq and the war on terrorism as the Nov. 7 election nears, they said.

Eighty-eight percent of likely voters say the economy is an important issue _ on a par with the percentage of people who view the situation in Iraq and terrorism as crucial matters, according to an Associated Press-Ipsos poll earlier this month. The poll found that 37 percent of likely voters say they approve of Bush's handling of Iraq overall. More voters _ 42 percent _ approve of his handling of the economy.

(Story continues below)...

[Ghost Dog]

16. Is Housing Out of the Woods?

http://www.businessweek.com/investor/content/oct2006/pi20061023_963590.htm?chan=rss_topStories_ssi_5

A growing chorus of experts says the worst may be over for home sales. But the recovery may not be smooth—or quick

by Marc Hogan
Related Items

* Slide Show: America's 50 Most Affordable Housing Markets
* Slide Show: Ten Housing Markets Headed for Decline

Depending on whom you ask, the winds may already be shifting for the housing market. All year, economists have warned of a bursting housing bubble and its potential impact on economic growth (see BusinessWeek.com, 8/21/06, "Why Housing Looks a Little Rickety"). However, a recent stream of encouraging data has some prominent prognosticators changing their tune.

One of the first in line was Alan Greenspan. As recently as May 18, the former Federal Reserve chairman put an exclamation point on the housing slowdown when he declared, "The boom is over." But now, the "worst may well be over," Greenspan was quoted as saying Oct. 7, after mortgage applications posted their biggest weekly gain since June, 2005.

A growing number of economists and analysts have come around to the ex-Fed chief's view. Some investors may see sunnier skies too, as homebuilding stocks such as Lennar (LEN), DR Horton (DHI), and Pulte Homes (PHM) have rebounded since touching 52-week lows in July. Reports on existing home sales for September, scheduled for release Oct. 25, and new home sales Oct. 26 could shed more light on housing's status.

/... :barf:

[Hugin]

31. People must have 'living wages' before the housing market will recover.

Can't buy a house on a potato-chip salary.

[Ghost Dog]

22. (Perfectly Rovian) It's The Economy, Stupid MSM

http://www.captainsquartersblog.com/mt/archives/008352.php

Investor's Business Daily took the mainstream media to task over its coverage of the economy in its editorial yesterday, making the case that media outlets have a political bias against Republicans. Despite an economic boom that has created 6.6 million jobs, increased federal tax revenues, and tamed inflation while generating strong growth, the media has relentlessly focused its coverage on negative, anecdotal stories (via Newsbeat1):

You are v-e-r-y tired. . . . You will believe everything I say. . . . Just keep your eye on President Bush's sinking polls. . . . Pay no attention to that low jobless rate . . . or the shrinking budget deficit . . . or the record Dow.

That, it seems, is the spell that's again been cast over a strangely receptive public as the Nov. 7 election nears. Despite an economic boom that's nothing short of amazing, especially given the obstacles it's had to overcome, many Americans still think we're on the verge of recession. Or at least that's what some polls say.

Why the disconnect? We keep scratching our heads. Beyond the grumbling over gas prices and some concern about what lies ahead in the war on terror, the only thing we can come up with is the unremittingly negative coverage the economy gets in the mainstream media.

You'd think that after a while people would put two and two together — that if things are pretty good for them and most people they know, the economy itself must be pretty good, despite what they read in the papers or hear on TV.

How do we know there's a disconnect? Because we see it in our own polling. When we ask Americans about their own financial situations, they're upbeat. When we ask what they think of the economy in general, the response is much less bullish.

And why is that? IBD says it reflects the media coverage of the economy, a trend they see going all the way back to the 1992 election. In that contest, in which James Carville coined the phrase "It's the economy, stupid," the media failed to report that the recession of 1990-1 -- touched off in part by a tax increase -- had ended and that the economy had begun to expand. IBD notes that 90% of the economic coverage in October 1992 were negative, but that decreased to 14% in November ... after the election had concluded, and Bill Clinton won.

In 2000, however, the media completely missed the economic slowdown that eventually turned into a recession in the first quarter of 2001. George Bush pointed it out in his campaign, but it received scant media coverage. In 2004, however, the opposite happened: the media mostly missed the 2003 recovery, fueled by the Bush tax cuts. Remember the "jobless recovery"? Recall how the media echoed the John Kerry campaign that the recovery was an illusion that would burst shortly after the 2004 election? Two years later, it's created over 6 million jobs and generated enough revenue, even with the tax cuts, to cut the projected deficit in half. (Imagine where it would be if we could quit spending money.)

/... Keep your eye on (and your mouths open about) this spin, folks...

[AnneD]

32. As one DUer put it....

are you going to believe me, or your lying wallet. I think folks are finally looking into their wallet and seeing that nasty little surprise the GOP have left them.

[Hugin]

34. Spotting Recessions is like detecting killer asteroids...

Oddly enough they show up best in the rear view mirror.

Except to those most vulerable... In the case of finances it's those Americans
living close to the median wage who have the most exposure.

[54anickel]

47. Good economic data fail to lift Bush party - It's the credibility dumb-arse

http://www.iht.com/articles/2006/10/24/business/usecon.php

snip>

"I don't know of another election cycle in which the economy was so good, yet the election prospects for the incumbent party looked so bad," said Frank Luntz, a Republican strategist. "If something goes wrong, Republicans are to blame. If something goes right, Republicans don't get credit." :eyes:

The only place where the economy has emerged as a major campaign theme has been in the aging industrial heartland around the Great Lakes, whose bleak economic prospects are being deployed against incumbents, Republicans and Democrats alike.

But where the economic winds seem to be blowing their way, voters appear unwilling to hear that Republican policies have made it so.

Disenchantment about the war in Iraq has morphed into disillusionment about the direction of the country, breeding distrust in the administration's policies, surveys suggest. Moreover, concerned by weak wage growth, costly health care and eroding benefits, many middle-class voters do not see the economy improving for them.

"Voters overwhelmingly don't approve of the president on the economy," said Amy Walter, a senior editor at The Cook Political Report, a nonpartisan newsletter that handicaps political races. "It comes down to the issue of credibility. And so many voters feel so pessimistic about the direction of the country."

more...

[Hugin]

49. People are smart enough to see deficit spending, especially on the scale...

practiced by the current administration is bound to have negative consequences.

Most people are capable of understanding the long-term.

[Ghost Dog]

26. (The Economist) America drops, Asia shops

Asia and the world economy
The alternative engine

Oct 19th 2006 | HONG KONG
From The Economist print edition
http://economist.com/business/displaystory.cfm?story_id=8049652



A sharp slowdown in the American economy could be offset by the growing and largely unrecognised power of Asia's consumers.

AMERICAN consumers have been one of the main engines of global growth for the past decade. But now, as America's housing boom threatens to turn into a bust, many forecasters expect household spending to stall. A few even worry that America could come perilously close to a recession in 2007. Previous American downturns have usually dragged the rest of the world economy down, too. Yet this time its fate will depend largely upon whether China and the other Asian economies can decouple from the slowing American locomotive.

/facts, analysis...



The determined to spend look

("When America sneezes, the rest of the world's economies may no longer catch a cold")

[Ghost Dog]

27. And what about Europe?

And what about Europe?
Standing on its own feet
http://economist.com/business/displaystory.cfm?story_id=8049665

Oct 19th 2006
From The Economist print edition
Developments in America matter less than those at home—or in Asia

FOR years continental Europe has been regarded as the weakling of the world economy, wheezing along behind healthy, trim America and young, gambolling Asia. Only with the occasional piggy-back from American consumers can the decrepit Germans, French and Italians make any progress at all. The thought of what an American slowdown, especially if coupled with a falling dollar, might do to the old continent is enough to make you shudder.

Save your sympathy. This year the strength of the euro area's economies has continued to surprise even optimists: GDP grew by 0.9% in the second quarter and may have managed 0.7% or so in the third, judging by robust data on industrial production and retail sales, and by business surveys. In 2006 the zone looks sure to chalk up its strongest growth rate since 2000. Best of all, for the past year or so it has been relying mainly on its own legpower: most of the growth has come not from trade but from domestic demand.

....

None of this means that a slowdown in America will leave Europe untouched. It will matter, but domestic affairs will count for more. And if they do worry about what goes on abroad, Europeans will perhaps be looking east rather than west. Last year, goods exports to America were, at €185 billion ($230 billion), only a little more than in 2001 (in euro terms; in dollars, they grew by more). Sales to Asia were, at €244 billion, €44 billion up over the same period.

On the import side, the change has been even more dramatic. In 2001 the euro zone's purchases from China alone, at €57 billion, were less than half those from America. In 2005 China sent €118 billion-worth of goods to the euro area, a whisker behind America's €120 billion-worth. Since the third quarter of last year, indeed, China has outstripped America as a supplier to the zone; now only Britain lies ahead.

/..

[Ghost Dog]

51. BTW: Superb photographic art, I thought.

I speak as an also eyes-open (Leica) photographer. Is there a Nobel for this?

[54anickel]

53. Strange...is he playing Taps? There's hardly anything hitting the wires

on the great economy so far, aside from those couple of Rovian propaganda type articles.....plenty on Iraq though. The economy is coming in like 5th place today when you google on Bush. Musts be the damned Liberal media again. Bwahahahaha!!!!

http://news.google.com/news?hl=en&ned=us&ie=UTF-8&q=bush

[ozymandius]

15. Economic Report: Job Creation Weak, Real Income Down $3000

10/24/06 | Economic Report
By Doug Cunningham

As working families consider whether the economy has been good or bad to them two weeks before the elections they’re not feeling as rosy about the economy as Wall Street or Bush administration. According to the Economic Policy Institute, working family real income has dropped by $3,000 since 2000. And while jobs are paying less in inflation-adjusted wages job creation for September was the weakest since Hurricane Katrina. As EPI puts it, the pie being baked by U.S. workers grows bigger each year while the slices they get grow smaller.

http://www.laborradio.org/taxonomy/term/39

[bronxiteforever]

18. This is the real story of the economy! Wonder if this will be featured

on Karty Couric's free speech segment:eyes:

[Hugin]

37. Haven't seen this on a scroller anywhere...

Only blather about how 'stellar' the DOW is... the DOW is... the DOW is...
Nothing can go wrong... Go wrong... Go wrong...

[AnneD]

33. OOPS...

there is that nasty little GOP surprise in your wallet I was talking about earlier.:tinfoilhat:

[Hugin]

36. That's 10x more than any 'tax cut' most people have received during...

the same time period.

Oh... and remember. There are *no* benefits such as new roads or better education with
this kind of tax.

[Ghost Dog]

20. Saudi riyal surges against US dollar but revaluation unlikely

http://www.arabtimesonline.com/arabtimes/business/Viewdet.asp?ID=7041&cat=a

Saudi riyal surges against US dollar but revaluation unlikely; Thin liquidity exaggerating forex moves: traders

LONDON (RTRS): The Saudi riyal surged to a 5-1/2 month high against the US dollar on Monday amid speculation it will be revalued over the Eid holidays but economists say politics as well as economics make such a move unlikely for now. With Saudi and Gulf markets closed for the Muslim holiday of Eid al-Fitr for much of this week, all dealings in the currency were offshore and traders said thin liquidity was exaggerating moves. The riyal traded up to 3.7420 per dollar, its highest since early May when investors bet Saudi Arabia would revalue its currency in line with a move by Kuwait. The gains follow an even bigger move on Friday, which saw the biggest one-day riyal rise in eight years, according to Reuters data.

...

[UpInArms]

21. daily dollar watch

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

Last trade 86.79 Change +0.06 (+0.07%)

Dollar Rallies as Recent Fed speak Hint at Hawkish FOMC

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Dollar_Rallies_as_Recent_Fed_1161637784665.html

US Dollar



Traders have bid up the US dollar as the stock market continues to power ahead and oil prices continue to fall. The lack of any meaningful US economic data today and for the most part tomorrow as well has most traders already looking ahead to Wednesday’s Federal Reserve rate decision. Interest rates are set to remain at 5.25 percent, but as we explored on Friday, the main focus will be on whether the central bank puts greater emphasis on the drop in headline inflation or the rise in core prices. It seems that the markets have already made up its mind about which way the Fed will swing. The rally in the US dollar suggests that the Fed will opt to focus on the sustained strength of core price inflation on both the consumer and producer level, which represents slightly hawkish comments. The odds are certainly in favor of this possibility as Fed official after Fed official has warned about inflation since the beginning of the month. Starting with Hoenig who is a non-voter, he characterized the current level of core inflation as too high. Fed Vice Chair Kohn said that the upside risks to the outlook for inflation warrant continued vigilance while Philadelphia Fed President Plosser and Richmond Fed Lacker hinted that policy may actually need to be firmer if core inflation continues to remain at current levels. Even Fed Chairman Bernanke said that inflation is still above what they would consider price stability. The comments range from cautiously hawkish to very hawkish with no one we have heard of late shying on the side of dovishness. When central bankers speak, we listen and their recent message has been quite unanimously clear. However we do want to point out that hawkish comments will not open up the risk for a rate hike. Instead, it will simply keep on the Fed on hold for a longer period of time with the market bias still looking for a rate cut before a hike as the next likely policy change.

...more...

Tomorrow's Economic Releases: Richmond Fed Expected To Follow Philly's Steps

http://www.dailyfx.com/story/calendar/key_events/Tomorrow_s_Economic_Releases__Richmond_Fed_1161648855636.html

Richmond Fed Manufacturing Index (OCT) (14:00 GMT; 10:00 EST)

Consensus: 8
Previous: 9

Outlook: The Richmond Fed’s manufacturing survey is expected to show factory activity over the month of October slowed slightly as demand from the consumer and business sectors slows. Traditionally holding a significant correlation to the nationwide ISM indicator released later, expectations for this month’s release are more aligned with the Philly regional release rather than the Empire release. Released last week, the Philadelphia regional report of manufacturing unexpectedly contracted for the first time since April of 2003 on a drop in prices received, unfilled orders, and employees all while inventories rose. However, like the Philly report, the Richmond number may be more interesting for its forecast components. In the forecast aspect, both of the previous regional releases improved as managers saw the drop in gasoline as a means to stoke demand in the coming months. Traders will watch for the Richmond index to offer a more consistent read of manufacturing trends in the nation to help offset the weak industrial production read for the previous month.

Previous: Factory activity in the Richmond area picked up modestly in September to produce a 9 read on the regional Fed’s read versus the 3 printed the month before. From the breakdown of the survey, the improvement for the month came from a general rise in demand, even as price trends deteriorated. Over the month, shipments grew to a positive 9 from a negative 8 in August, while the future demand indicative from new orders volume advanced 5 points to a read of 10. From the prices components, prices paid for raw material grew 3.18 percent, while those received for finished goods slowed to 2.55 percent. The forecast section of the survey showed managers expected the recent trends to continue for the coming six months. The forward looking new order volume sub-gauge grew 19 points to 25 while the new order backlog grew 8 points. Similarly, expected prices paid accelerated to 3.7 percent growth while received also grew to 2.47 percent.

...more...

[54anickel]

39. Morning UIA, Ozy and all. Hope everyone's doing well. I stumbled

across a couple of fairly recent articles on my old "buddy" Mahathir when looking for some of the older articles on Dimson's messiah complex. Thought I'd share.

This first one is a rather biased opinion article, but it looks like Mahathir was calling for a dollar/pound boycott during the Lebanon bombings.
http://www.thousandreasons.org/get_article.php?article_id=291
Mahathir’s Long March to the Sea

Since the start of the most recent Israeli killing spree in Lebanon and Gaza, the world has stood helplessly by and watched as the IDF casually butchered innocents and systematically destroyed vital civilian infrastructure. Any conscientious observer of the continuing Israeli carnage should have no problem agreeing that “The destruction and killings by Israeli terrorists would not be possible without the support and collusion of the United States of America and Europe.” These precise words were part of a statement issued by Dr Mahathir Mohamad, the former Prime Minister of Malaysia.

But Mahathir’s statement did not stop at condemning the slaughter of Palestinians and Lebanese. Unlike other people of good will, the ex-Prime Minister offered a prescription to put an end to this nonsense. He went on to point out that “the oil-producing countries can stop these atrocities by stopping all transactions in US dollars or British pounds. If the world is sincere in helping the Lebanese and Palestinians, they should reject the use of the dollar in international trade. When the demand for the dollar falls, America will be weakened and it will lack the ability to act as a bully in the global stage."

snip>

Mahathir’s call for a popular international insurrection against the dollar can and will change the course of history. It is a beautiful and elegant solution that will immediately attract serious attention from Washington and London. It will expose to Americans and Arabs alike that their leaders are taking them for fools.

snip>

Once the ‘dollar’ issue is part of the public debate – the role of the American peace movement will be to educate our fellow citizens to make them understand the real motives behind American military intervention in the region. The average American is bewildered by the Iraq war and deliberately manipulated by the Likudnik activists who pass themselves off as journalists in the mass media brothels. This explains why Mahathir’s unprecedented call for passive resistance to American hegemony and Israeli brutality was completely ignored by virtually every media outlet in both the United States and the Middle East.

snip>

Mahatma simply urged his countrymen to make their own salt. Mahathir is asking much less of us. “I appeal to the world to take this simple action. Reject the dollar and the pound.” It is an elegant, peaceful, legal proposition and can be very financially rewarding to those who bail out of the dollar first.

The greatest current challenge to Mahathir’s call for passive resistance is the Stalinist news blackout in the West and the Middle East. We need to breach that barrier through the power of the Internet and through protests burning effigies of the dollar and the pound. Our first task is to get the subject on the table and generate an international discussion of Mahathir’s Long March to the Sea. We would have done no less for Mahatma.

more...

'Father' of Malaysia Savages Bush and Blair
Mahathir brands US a rogue nation terrorising innocents and stands by claim that Jews 'rule the world by proxy'
http://www.commondreams.org/headlines05/0527-05.htm

snip>

Earlier in the day, he had lectured students at his Perdana Leadership Foundation on the importance of education and development in the Muslim world to defend the Islamic faith. The problem was not Islam itself, he said, but the many incorrect interpretations of the Qur'an that were exploited by extremists.

"Islam is a positive, not a negative force. Today most Muslim countries seem incapable of developing good governments, they are always fighting each other, assassinating each other and doing all the wrong things." Distortions of the Prophet's teachings had held back the peoples of many Muslim countries, he said.

snip>

"The US is the most powerful nation," he said. "It can ignore the world if it wants to do anything. It breaks international law. It arrests people outside their countries; it charges them under American law. It kills them.

"The US war on terror is a way of terrorizing people. If you are an Iraqi and you are expecting to be bombed, aren't you terrified? If you have done nothing, if you are an innocent Iraqi citizen and you are expecting any time a rocket to fly in and blow you to pieces, aren't you terrified?

"That is terror the US is as guilty of terrorism as the people who crashed their planes into the buildings ... Bush doesn't understand the rest of the world. He thinks everybody should be a neocon like him."

snip>

"Even if you get Bin Laden, you can't be sure there won't be another Bin Laden. You cannot get terrorists to sign a peace treaty. The only way to beat terror is to go for the basic causes.

"They don't blow themselves up for no reason, they're angry, they're frustrated. And why are they angry? Look at the Palestinian situation. Fifty years after you created the state of Israel, things are going from bad to worse.

"If you don't settle that, there will be no end to the war on terror. For how long are you going to go on examining people's shoes?"

more...


Ahhh, but that's all yesterday. This is from the most recent news. The great Mahathir is loosing clout as the wise Father of Malaysia....

Cabinet ministers rally behind Malaysian leader, express shock at Mahathir's attack
http://www.iht.com/articles/ap/2006/10/24/asia/AS_POL_Malaysia_Mahathir_vs._Abdullah.php

KUALA LUMPUR, Malaysia Top government members on Tuesday rallied behind Malaysia's prime minister in his spat with former leader Mahathir Mohamad, whose vitriolic criticisms have shaken the country and damaged investor confidence.

In his most personal attack yet, Mahathir on Monday accused Prime Minister Abdullah Ahmad Badawi of nepotism, corruption and mismanaging the country's economy — but as before, Mahathir gave no proof.

Mahathir's remarks came just hours after he and Abdullah held a private two-hour meeting that many had hoped would lead to reconciliation and persuade the elder statesman to end his one-man campaign to oust the prime minister.

"I was shocked by the statements made by (Mahathir) immediately after the meeting had concluded," Deputy Prime Minister Najib Razak told reporters.

"Most people thought that this was the beginning of trying to work things out between the P.M. and Tun," Najib said, referring to Mahathir with the nation's highest civilian title, given him for his service to the nation.

Mahathir's actions appear to have little overt support in the ruling United Malays National Organization party, but it is difficult to gauge his behind-the-scenes influence. The Cabinet has consistently supported Abdullah during the past year, as he has faced Mahathir's ire.

more...

[54anickel]

44. How does the US Dollar Defy the Law of Gravity?

http://www.321gold.com/editorials/sirchartsalot/dorsch102406.html

Trading in foreign exchange is akin to judging a reverse beauty contest. The trick is to buy the "least ugly" currency at the right time. Nearly every central bank is engaging in some sort of manipulation of its currency, from outright intervention in the marketplace, such as in Brazil and China, to pumping up the money supply to inflate local stock markets, such as in Australia, China, England, the Euro zone, and India. Other central banks engage in "verbal jawboning" to keep traders in check.

Central banks are key players in the $2 trillion-a-day currency market, and traders are always on the lookout for signals that central banks are diversifying their FX reserves away from the US dollar. Global central bank reserves have more than doubled to $4.9 trillion in just three years, with particular focus on the massive US dollar stockpiles built up by Asian central banks, which could be switched into other currencies such as the Euro, Japanese yen, British pound, or Gold.

The US dollar accounted for 66% of foreign currency reserves held by global central banks in 2005, with 25% stashed in the Euro, 5% in the British pound, and 4% in the Japanese yen. In London, the world's largest FX market, the Euro accounts for 35% of its average daily trading volume of $942 billion. Traders often look to the Euro, yen, and pound to gauge the mood of the global currency markets.

For the past six months, the Euro, Japanese yen, and British pound have been remarkably stable against the US dollar, locked into a 4% to 5% trading ranges. So the big question is: How did the big-4 central banks and their finance officials pull off such remarkable currency stability, at a time of enormous global trade imbalances, and 10% to 25% swings in global commodity and stock markets?

more...

[Ghost Dog]

23. Foreign investment (in Russia) increases 41.9% in first six months - Putin

http://www.interfax.ru/e/B/politics/28.html?id_issue=11609575

ST. PETERSBURG. Oct 24 (Interfax) - Russian President Vladimir Putin has noted the ever-increasing foreign investment in the Russian economy.

"The growth amounted to 41.9% in the first six months of 2006," the president said at a meeting on the implementation of investment projects in St. Petersburg.

/..

[Ghost Dog]

24. Europe Outraged by Putin

http://www.themoscowtimes.com/stories/2006/10/24/012.html
The Associated Press

European media expressed outrage over the weekend at comments made by President Vladimir Putin during a one-day summit with EU leaders in Finland last Friday.

Asked about the killing of Anna Politkovskaya and the problem of corruption in Russia. Putin fired back, saying among other things that "mafia is not a Russian word," Italy's L'Unita reported.

"As far as we know, President Putin, speaking about criminality, did effectively criticize some European countries," a statement issued by Italian Prime Minister Romano Prodi's office said. The statement stressed, however, that "no direct criticism was made against Italy."

Putin was especially angry with Josep Borrell, the Spanish president of the European parliament, who asked him whether Russia "was still a democracy," France's Liberation reported.

Putin replied that all Spanish mayors were corrupt and in jail and that he had no lessons to learn from Borrell, Liberation said.

/.. ROFL, were it not so sad... I'm here in Spain, and I can confirm that what Putin said is not at all entirely false...

[54anickel]

40. Is the US still a democracy? n/t

[UpInArms]

25. Louisiana-Pacific third-quarter profit $9.5 mln vs $168 mln

http://www.marketwatch.com/News/Story/Story.aspx?dist=newsfinder&siteid=mktw&guid=%7B67F4183A%2D5BF1%2D452A%2D945D%2D529DED9E72D4%7D&symbol=

NEW YORK (MarketWatch) -- Louisiana-Pacific Corp. (LPX : 20.07, -0.32, -1.6% ) Tuesday reported third-quarter earnings of $9.5 million, or 9 cents a share, down from a year-ago profit of $168.2 million, or $1.53 a share. On a continuing operations basis, the Nashville, Tenn., building materials provider posted a profit of $9.9 million, or 9 cents a share. The company said its latest results were hurt by continued declines in oriented strand board pricing. Sales in the latest three months fell to $534.5 million from $621.3 million in the same period a year earlier. The average estimate of analysts polled by Thomson First Call was for a profit of 9 cents a share in the September period on revenue of $569.3 million. Looking ahead, the company said it sees little short-term relief in the difficult market environment facing the building products industry across North America. The stock closed Monday at $20.07, down 1.6%.

[AnneD]

29. Morning Marketeers

:donut: I really hope Bush continues to tout the economy. I don't know about you all, but when he touts how good it is-he sounds more and more like Bagdad Bob. I mean, the disconnect is glaringly obvious and I get increasingly pissed! :mad:

I am hanging on, paying my bills down, setting aside a bit for retirement and all, but I won't be able to help my daughter with her college costs. The fact that I have a pension now is a saving grace otherwise, the future would be abyssmal. I don't know how the rest of America is doing-but I am afraid I am better off than most...and that's a scary thought.


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

[Hugin]

35. Morning AnneD!

It'll be a busy day for the DU Marketeers as the Bush Administration has decided
to focus on the economy... Uh,oh!

:hangover:

cheers! :D

[AnneD]

54. Hello Prag

:hi: the good thing about him focusing about the economy is that it will piss off more folks than Iraq and Mark Foley..... They are so utterly clueless. And I can't remember the name of the eCONomist I was listening to the other day, but he was so full of happy talk I was ready to :puke:. And they have the nerve to chastise ME 'cause I don't feel the same? Kinda like that old saying. The beatings will continue until the moral improves.:eyes:

[LetsThink]

38. ..you are better off than most, sadly........

Fewer Americans have access to health insurance / health care basics- including children.

Many Americans don't even get hourly pay that is enough to subsist- day to day, not to mention being able to afford illness, retirement.

Many seniors do not have adequate monthly incomes to cover their basic needs- injury or illness is a nightmare worry for them, not to mention the uncertain costs of necessary prescription drugs.

Debt is way up over all records- both consumer and government borrowing- which brings with it the looming scenario of high interest rates and stagnant economy...

Infrastructure is aging -needs to be repaired, maintained, replaced.

......... and there's more..... don't want to start the day on a REALLY negative note......

[54anickel]

41. A big year for buyouts

http://money.cnn.com/magazines/fortune/fortune_archive/2006/10/30/8391804/index.htm?postversion=2006102408

(Fortune Magazine) -- Hardly a day goes by without another marquee-name public company being bought out by one of Wall Street's private-equity goliaths. You've seen the headlines: HCA (Charts), Harrah's (Charts), Albertson's (Charts) - they're just a few of the big names in the cross hairs.

By any measure this trend is gaining momentum. Four of the five biggest announced buyouts in history have gone down this year (No. 1 is still RJR in 1988, according to Dealogic). As stock market returns have drooped in this decade, institutional investors have jacked up their allocation to what is known as "alternative investments" (read hedge funds and buyout funds).

No wonder the likes of KKR, Carlyle Group, Bain, Texas Pacific and others are able to raise huger and huger funds - the most recent superlative being Blackstone's $15.6 billion (Olympic-sized) pool.

It is almost certain to be a record-breaking year for the buyout masters: Through September, U.S. private-equity firms had raised $172.2 billion, just a tad under the $177.9 billion they amassed in 2000. (This according to the monthly Private Equity Analyst - a must-read these days.) And in another sign that private equity has gotten powerful - perhaps too powerful - the Justice Department is said to be looking at possible anticompetitive behavior in the industry.

snip>

It got me wondering where all this was headed. Seems like buyout firms are creating a private-company parallel universe - one that is beholden to an altogether separate body of law, and conceivably a distinct code of conduct.

Not long ago I had dinner with Paul Danos, dean of the Tuck School of Business at Dartmouth, and we talked about this very issue. "Going private is very top-of-mind with corporate directors these days," said Danos, who's on the board of General Mills. The private-equity guys, says Danos, like to argue that if one company in an industry goes private, it gains advantages, and others in the industry may feel compelled to follow suit.

more...

[54anickel]

42. Watch out for ballooning credit-card fees

Credit card companies are always looking for ways to charge you more. Here's what you need to know.

http://money.cnn.com/2006/10/23/pf/saving/toptips/index.htm?postversion=2006102312

NEW YORK (CNNMoney.com) -- Americans are drowning in credit card debt - over $5,000 on average. And credit card companies aren't helping the situation.

A recent study by the Government Accountability Office found that credit card companies do a poor job disclosing fees. In today's tips we're going to tell you what you need to know about fees and disclosures.

1: Fees are Doubling

Fees are everywhere! And according to the GAO report, they might not be disclosed.

Here are some fees you need to look out for: Fees for making payments over the phone, fees for balance transfers, fees for increasing your credit line, over-limit fees and cash-advance fees. They can range from $10 to over $30.

And penalties are far stiffer than they were in the past. Late fees have more than doubled in the past 10 years. And if you miss a payment - even by a few hours - your interest rate could increase to 30%, according to Curtis Arnold of cardratings.com.

more...

[Hugin]

43. Must be nice to invent fees out of thin air...

I should come up with some.

It reminds me of those old stories of 'elevator fees' and other pranks of High School bullies.

[AnneD]

55. All the more reason to give up

credit cards totally. I gave mine up three years ago and we have been doing just fine. All those fines and fees remain in MY pocket. Adds up to a large chunk of change over time.

[54anickel]

45. Don't Get Excited About CPI and Housing Data

http://www.321gold.com/editorials/schiff/schiff102006.html

This week it was announced that both producer and consumer prices dropped by 1.3% and .5% respectively, while housing starts unexpectedly increased by 5.9%. Not surprisingly, Wall Street celebrated the apparent good news, sending the Dow Industrials into uncharted territory. As has been its recent tendency, the market is unconcerned with recent bad news, instead championing it as confirming the highly touted "soft-landing." September's much weaker than expected non-farm payroll data and the Philadelphia Fed survey that showed an unexpected deterioration in manufacturing, are two recent examples. However, a closer look at the supposed good news reveals just how unwarranted the hype really is.

The inflation data was largely a function of the sharp decline in gasoline prices. In the first place, this decline will likely prove to be temporary, as it merely reflects a correction in an ongoing bull market. The confluence of events behind the correction will soon fade, and gasoline prices will resume their upward march.

More importantly, while oil price declines have claimed center stage, few have noticed other commodities price rallies that are surging in the wings. For example, during the past month industrial metal prices have surged, led by zinc and nickel prices which have both increased by more than 20%. Even more impressive has been the rise in agricultural commodities, led by skyrocketing wheat and corn prices that have risen by 33%. Given that food prices are conveniently absent from the "core" measures of inflation, I would expect that these agricultural price gains will receive scant attention from government economists and financial pundits. And although many of these theoreticians would prefer otherwise, we all have to eat. Unfortunately, doing so is about to get a lot more expensive.

So as the temporary relief at the gas pump will soon end, pain at supermarket checkout counter will soon begin. These higher costs, combined with rising mortgage payments created by upwardly resetting rates on adjustable home mortgages, will result in severe strains on the consumer's ability to spend on discretionary items. Of course, if the consumer stops spending, there goes the ball game for an American economy whose GDP is 70% consumer spending.

more...

[Hugin]

46. Interesting find...

At least it's an honest assessment.

[Ghost Dog]

56. Anyone here 'surprised' by rising agricultural commodities prices?

what a load of dumbed-down dump.

[54anickel]

50. 12:51 numbers and yada

Dow 12,107.23 DOWN 9.68 (0.08%)
Nasdaq 2,338.24 17.32 DOWN (0.74%)
S&P 500 1,373.86 3.16 DOWN (0.23%)
10-yr Bond 4.8260% 0.0000
30-yr Bond 4.9500% DOWN 0.0020
NYSE Volume 1,469,260,000
Nasdaq Volume 977,112,000

12:30 pm : Little has changed since the last update as traders cautiously work their way through the lunch hour. The market's holding pattern has been further evidenced in the A/D line. Advancers and decliners on the NYSE remain evenly matched while declining issues hold a slim 17-to-12 advantage over advancing issues on the Nasdaq. A split ratio of down-to-up volume paints even more of a mixed picture at the Big Board and the Composite. DJ30 +3.35 NASDAQ -10.10 SP500 -1.53 NASDAQ Dec/Adv/Vol 1710/1207/870 mln NYSE Dec/Adv/Vol 1534/1598/760 mln

12:00 pm : The major averages are struggling to gain much traction midday as a sense that strong earnings have already been priced into the market leaves little room for error and the door open for some profit taking. As a reminder, stocks have run virtually uncontested since bottoming out in mid July, lifting the Dow, S&P 500 and Nasdaq up 13.7%, 12.5% and 17.0%, respectively, over the last three months. Investors are also exercising a sense of caution ahead of tomorrow's Fed decision and potentially hawkish wording in the accompanying policy statement.

Among today's biggest names beating expectations has been DuPont (DD 46.34 +0.89). The Dow component opened at a new 52-week high after swinging to a profit in Q3 and reaffirming its full-year outlook. As a result, the Materials sector -- today's best performer (+1.2%) -- remains on pace to displace Energy as this quarter's largest contributor to S&P earnings growth. Unfortunately for the bulls, since Materials ranks as the least influential of the 10 S&P 500 sectors, the absence of leadership in more notable areas like Technology, Health Care, Consumer Staples and Financials.

Technology has been under pressure after Texas Instruments (TXN 31.25 -0.63) matched Wall Street's expectations but missed on revenues and lowered its Q4 sales growth forecasts. The stock's 2.6% sell-off is weighing on other chip stocks and offsetting a 1.2% in Intel (INTC 21.71 +0.26). Intel, a suggested holding in Briefing.com's Active Portfolio, is at its best levels since January following reports that Apple Computer (AAPL 80.95 -0.51) will equip its MacBook Pros with Intel's new Core 2 Duo chip.

Health Care has been in focus after Amgen (AMGN 74.90 +1.53) reported a 14% rise in Q3 earnings to beat expectations and raised its FY06 EPS outlook. Nonetheless, an analyst downgrade on the sector's most influential component -- Pfizer (PFE 27.24 -0.49) -- is acting as an offset and stalling follow-through buying in last quarter's best performing sector. BTK -0.4% DJ30 +3.12 DJTA +0.2% DJUA -0.4% DOT -0.1% NASDAQ -9.09 NQ100 -0.5% R2K -0.3% SOX -0.7% SP500 -1.36 XOI +0.8% NASDAQ Dec/Adv/Vol 1750/1098/772 mln NYSE Dec/Adv/Vol 1541/1546/660 mln

11:30 am : Market rebounds some but not nearly enough to make a significant change in the standings. The Dow has limped back above the flat line but with 16 of its 30 components still trading lower, the price-weighted index's recovery offers little conviction on the part of buyers. General Motors (GM 35.80 +0.61) is pacing index gains (+1.7%) for a second straight day, up in anticipation of a surprisingly strong report tomorrow and following an analyst upgrade on rival Ford Motor (F 8.13 +0.23). Notable laggards include PFE (-2.0%) and MO (-1.7%).DJ30 +2.80 NASDAQ -8.62 SP500 -1.52 NASDAQ Dec/Adv/Vol 1770/1027/660 mln NYSE Dec/Adv/Vol 1567/1463/546 mln

11:00 am : Not much has changed for the blue chip averages since the last update. Even though oil prices are now at session highs and back above $59/bbl, subsequent leadership throughout the Energy sector is somewhat offsetting consolidation in retail and transportation. The Nasdaq, though, is hitting fresh session lows as the PHLX Semiconductor Sector Index turns negative. Currently, a 1.1% gain in Intel (INTC 21.69 +0.24), amid reports that Apple Computer (AAPL 80.75 -0.71) will equip its MacBook Pros with Intel's new Core 2 Duo chip, has not been enough to compensate for losses in 14 of the SOX Index's 19 components.DJ30 -10.12 NASDAQ -11.42 SOX -0.7% SP500 -3.02 NASDAQ Dec/Adv/Vol 1755/1004/520 mln NYSE Dec/Adv/Vol 1612/1365/410 mln

10:30 am : Recent recovery efforts are short-lived as the Dow slips back below the flat line almost as fast as it set a new intraday all-time high. Oil prices turning positive are adding to the uncertainty about the sustainability of recent gains. A reversal in Tech has removed some notable leadership, earmarking the Nasdaq as today's worst performer among the majors. Qualcomm (QCOM 37.17 -0.91), the third most heavily-weighted component on the tech-heavy Composite, is down 2.4% amid reports that an appeals court sent back for review a ruling in its patent case against Nokia.DJ30 -10.16 NASDAQ -6.89 SP500 -2.98 NASDAQ Dec/Adv/Vol 1625/1021/360 mln NYSE Dec/Adv/Vol 1603/1278/262 mln

[54anickel]

52. OT- Even dad worries besieged Bush

http://www.theaustralian.news.com.au/story/0,20867,20640488-601,00.html

US President George W. Bush tried to talk to voters yesterday about the economy, an issue on which his administration has a positive story to tell. But even if an angry electorate were ready to listen, few will have heard him.
Instead, with just two weeks to go before elections for control of Congress, the President's message was drowned out by ever grimmer news from Iraq. October has become the US military's deadliest month this year, with 89 servicemen killed. Civilian deaths are running at more than 40 a day.

Back home, errant spokesmen and even Mr Bush's father were digging him deeper into a hole, and the White House was forced to deny reports Mr Bush had set the Iraqi Government deadlines for taking over responsibility for security from US forces.

The Iraq Study Group, led by former US secretary of state James Baker, is believed to be charting a new direction for the war that will differ from the Bush "stay the course" strategy.

A White House spokesman said tactics were always reassessed and claimed Mr Bush had never advocated "stay the course". Critics promptly produced half-a-dozen quotations from the President using the phrase.

The President's father, George HW Bush, then said that if the Republicans lost their Congress majorities, "I would hate to think what my son's life would be like".

This prompted an admonishment from the President, who said: "He shouldn't be speculating like this - they're not going to." :freak:

more...

[AnneD]

57. Hey 54anickel...

:hi: you missed the best quote.....

One man unlikely to apologise for his remarks is Kevin Tillman, brother of Pat Tillman, a US Army Ranger shot dead by his own side in Iraq in 2004.

His verdict on the Bush administration: "Somehow the same incompetent, narcissistic, virtueless, vacuous, malicious criminals are still in charge of this country."


I think Kevin summes it up nicely.

[54anickel]

58. Thanks AnneD. Was hoping someone would catch that....I was already

pushing the limit on those single sentence paragraphs :grr:

He left out "profiteering, war-mongering robber barons", but yeah other than that it's a damned good summary.

[AnneD]

59. It is a shame...

that many of our DEM leaders don't have the balls to stand up and say the same thing. I recommend we take over Congress and then take over the DEM party. If Leiberman looses out this next election-it will be the first salvo in the war to take back the party. The GOP can't maintain this 'culture' they have created-It is just not in the American nature.

[ozymandius]

60. Fork-stickin' time

Dow 12,127.88 Up 10.97 (0.09%)
Nasdaq 2,344.84 Down 10.72 (0.46%)
S&P 500 1,377.38 Up 0.36 (0.03%)
10-Yr Bond 4.8240% Down 0.0020
NYSE Volume 2,715,726,000
Nasdaq Volume 1,935,150,000

4:20 pm : Per usual the day before the Fed makes its policy decision known, investors erred on the side of caution Tuesday as the major averages traded in relatively tight ranges all day. Even though there is virtually no chance that policy makers will change the fed funds target from 5.25% tomorrow, worries that the policy statement will reflect continued and perhaps even heightened concern about the trend in core inflation kept blue chip gains to a minimum and left the Nasdaq in consolidation mode.

On a positive note, investors were again greeted with another batch of better than expected earnings reports across a diverse set of industry groups. However, with investors having already priced in another strong quarter of double-digit profit growth with little room for error, it only took a few disappointments to provide an excuse to lock in some recent gains.

Texas Instruments (TXN 30.52 -1.36) had anotherwise solid quarter, but its acknowledgment that Q4 semiconductor growth will be below the seasonal average sent the stock to three-month lows. That weighed on the semiconductor group and removed notable leadership from Technology -- the day's worst performing sector.

Of the four sectors trading higher and helping the broader market close relatively unchanged, Energy turned in the best performance as a rebound in oil prices played into the argument that oil stocks are still oversold on a short-term basis. While that bodes well for Energy sector profits, higher energy prices also acted as an obstacle for the bulls to overcome Tuesday.

Materials also surged more than 1.0% after Dow component DuPont (DD 46.00 +0.55) swung to a profit in Q3 and reaffirmed its full-year outlook. However, as the least influential of the 10 S&P 500 sectors, Materials struggled to offset the absence of leadership from more notable areas like Technology, Consumer Staples and Health Care.

With regard to the latter, it was in focus after Amgen (AMGN 74.94 +1.57) reported a 14% rise in Q3 earnings to beat expectations and raised its FY06 EPS outlook. An analyst downgrade on the sector's most influential component -- Pfizer (PFE 27.28 -0.45) -- acted as an offset. In fact, if it wasn't for a 52-week high on General Motors (GM 36.15 +0.96) of all stocks, the Dow would not have closed at another record high. For a second straight day, the auto maker paced index gains, surging 2.7% in anticipation of a surprisingly strong report tomorrow and following an analyst upgrade on rival Ford Motor (F 8.31 +0.41). BTK -0.8% DJ30 +10.97 DJTA +1.1% DJUA -0.1% DOT -0.1% NASDAQ -10.72 NQ100 -0.7% R2K -0.1% SOX -1.1% SP400 +0.3% SP500 +0.36 XOI +1.1% NASDAQ Dec/Adv/Vol 1756/1277/1.89 bln NYSE Dec/Adv/Vol 1461/1815/1.65 bln

[UpInArms]

61. Comverse ex-CFO pleads guilty in options case: reports

wasn't this guy protesting how he was so very very innocent?

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B3D5ACA6B%2D844C%2D472C%2D8616%2D193513C1D747%7D&siteid=mktw&dist=bnb

SAN FRANCISCO (MarketWatch) -- Former Comverse Technology Inc. (CMVT : 21.65, -0.12, -0.6% ) Chief Financial Officer David Kreinberg has pleaded guilty to securities-fraud charges in federal court, according to media reports Tuesday. Kreinberg is the first person to plead guilty in the stock-options backdating scandal that broke earlier this year, the Wall Street Journal reported on its Web site. Kreinberg agreed to cooperate in the government's investigation and testify against Kobi Alexander, Comverse's former chief executive, who is fighting extradition in Namibia. The U.S. government filed an extradition request for Alexander yesterday, the report said. Kreinberg faces up to 15 years in prison.