STOCK MARKET WATCH, Friday January 5

[ozymandius]

Friday January 5, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 745 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2201 DAYS
WHERE'S OSAMA BIN-LADEN? 1906 DAYS
DAYS SINCE ENRON COLLAPSE = 1867
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 7
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 January 4, 2007

Dow... 12,480.69 +6.19 (+0.05%)
Nasdaq... 2,453.43 +30.27 (+1.25%)
S&P 500... 1,418.34 +1.74 (+0.12%)
Gold future... 623.90 -3.20 (-0.51%)
30-Year Bond 4.72% -0.04 (-0.90%)
10-Yr Bond... 4.62% -0.05 (-0.99%)






GOLD, EURO, YEN, Loonie and Silver


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Martin Goldberg

INSTITUTIONS BUY HOMEBUILDERS, WHILE INSIDERS PASS
You Call This Scraping Along the Bottom?

With a lot of talk in press releases about homebuilders scraping along the bottom, investors would be well advised to emulate the sector’s corporate insiders and stay away. Indeed while key homebuilders have rallied since mid-July, corporate insiders have purchased but 100 shares, total. The insider selling, while not overwhelming, has been significant in some cases. The rally has been fueled by institutional purchases netting almost 18 million shares using other people’s money, and in many cases this buying has resulted in significant increases in institutional holdings of individual homebuilder stocks. These stats, collected from Yahoo Finance, are summarized in the table below.

-see table-

Scraping along the bottom? The preponderance of the evidence suggests that the pain in the homebuilder sector is far from over. Have the worst been reflected in the stocks already? While with trailing low P/E’s, homebuilders are a somewhat kosher choice for institutional value investors forced to find value in a market where there is none. The longer term technical view of the homebuilders is bearish. Here is the much-referenced weekly chart of the Dow Jones US Homebuilder index. As can be plainly seen, there is a completed head-and-shoulders (HAS) reversal pattern. Yet since the completion, since July, the index has rallied back to near the neckline of the pattern.

-cut-

Today's Market

The Nasdaq and the transportation index – two of the market’s most recent laggards, led the market higher. Participating sectors in the rally consisted of transports, semiconductors, internet stocks, some retail stocks and biotechnology stocks. The catalyst appeared to be an analyst upgrade of Intel. Oil was whacked again along with many great stocks selling at reasonable valuations and oil now sits upon an important long term technical crossroad. As you can see in the monthly chart below, light crude oil is now at an important support level near 57.5; that is the potential neckline of a head and shoulders reversal pattern. Support is expected to occur within a couple of dollars per barrel. If not, then all bullish long term bets would have to be off.

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

[ozymandius]

2. Today's Reports

8:30 AM Nonfarm Payrolls Dec
Briefing Forecast 115K
Market Expects 100K
Prior 132K

8:30 AM Unemployment Rate Dec
Briefing Forecast 4.5%
Market Expects 4.5%
Prior 4.5%

8:30 AM Hourly Earnings Dec
Briefing Forecast 0.4%
Market Expects 0.3%
Prior 0.2%

8:30 AM Average Workweek Dec
Briefing Forecast 33.9
Market Expects 33.9
Prior 33.9

http://biz.yahoo.com/c/e.html

[UpInArms]

7. 8:30 reports (lots o' jobs !?!?!?!)

14. U.S. Oct. Nov. nonfarm payrolls revised up total 29,000
8:30 AM ET, Jan 05, 2007 - 19 minutes ago

15. U.S. Dec. professional business service jobs up 50,000
8:30 AM ET, Jan 05, 2007 - 19 minutes ago

16. U.S. Dec. residential construction jobs down 16,000
8:30 AM ET, Jan 05, 2007 - 19 minutes ago

17. U.S. Dec. manufacturing jobs fall by 12,000
8:30 AM ET, Jan 05, 2007 - 19 minutes ago

18. U.S. 2006 payrolls up 1.84 million
8:30 AM ET, Jan 05, 2007 - 19 minutes ago

19. U.S. Dec. average workweek steady at 33.9 hours as expected
8:30 AM ET, Jan 05, 2007 - 19 minutes ago

20. U.S. Dec. average hourly earnings up 0.5% vs. 0.3% expected
8:30 AM ET, Jan 05, 2007 - 19 minutes ago

21. U.S. Dec. jobless rate 4.5% as expected
8:30 AM ET, Jan 05, 2007 - 20 minutes ago

22. U.S. Dec. nonfarm payrolls up 167,000 vs. 100,000 expected
8:30 AM ET, Jan 05, 2007 - 20 minutes ago

[54anickel]

8. Treasuries Decline as Jobs Report Reduces Rate Cut Speculation

http://www.bloomberg.com/apps/news?pid=20601087&sid=ahYCv_h.3pZM&refer=home

Jan. 5 (Bloomberg) -- Treasury 10-year notes fell the most in almost a month after a government report showed the U.S. added more jobs in December than economists forecast and incomes climbed by the most in eight months.

Yields on two-year notes, more sensitive to expectations of changes in monetary policy than longer-maturity debt, rose the most in two months, as the report squashed expectations the Federal Reserve will cut interest in the next few months.

``It suggests the momentum of the U.S. economy is more vigorous than some in the market presume,'' said Jack Malvey, chief global fixed-income strategist in New York at Lehman Brothers Holdings Inc., one of the 22 primary dealers that trade with the Fed. ``The Fed isn't going to do anything this quarter.''

snip>

Employers in the U.S. added a greater-than-expected 167,000 workers to payrolls in December and incomes grew by the most in eight months, adding to evidence the economy is weathering a slump in housing and manufacturing.

The gain in employment followed a 154,000 rise in November that was larger than previously estimated, the Labor Department reported today. The jobless rate held at 4.5 percent.

snip>

Traders were ``revising down their estimates ahead of the number and looking for the Fed to ease and this puts a little strain on that,'' said Martin Mitchell, head government bond trader at the Baltimore unit of Stifel Nicolaus & Co., a St. Louis-based brokerage.

more...

[54anickel]

9. And the buck catapults along with the propaganda

Last trade 84.71 Change +0.37 (+0.44%)

Settle Time 15:00 Open 84.31

Previous Close 84.34 High 84.75

Low 84.15 2007-01-05 09:27:40, 30 min delay

52wk High 91.16 52wk High Date 2006-03-10

52wk Low 82.24 52wk Low Date 2006-12-05

[54anickel]

10. 167,000 Jobs Added to Payrolls in Dec.

U.S. Companies Add 167,000 Jobs to Payrolls in December, Keep Unemployment Rate at 4.5 Percent

http://biz.yahoo.com/ap/070105/economy.html?.v=10

WASHINGTON (AP) -- Employers stepped up hiring last month, boosting payrolls by a healthy 167,000 and keeping the unemployment rate steady at a still historically low 4.5 percent. Workers' wages grew briskly.

The latest snapshot of the nation's employment climate, released Friday by the Labor Department, showed that the jobs market ended 2006 on a strong note and provided fresh evidence that the troubled housing and automotive sectors aren't dragging down employment across the country.

The tally of new jobs added to the economy last month exceeded analysts' forecasts for a gain of around 115,000 and was the best showing since September. Analysts were predicting the politically sensitive jobless rate would remain unchanged from November, which it did.

snip>

Many employers showed not only a greater appetite to hire in December but also more willingness to boost compensation to workers.

Workers, many of whom had seen their paychecks eaten by inflation, saw wages grow robustly last month. Average hourly earnings jumped to $17.04, a sizable 0.5 percent rise from the prior month. Analysts were forecasting a more modest, 0.3 percent increase.

Over the last 12 months, wages grew by a strong 4.2 percent. That matched the annual gain registered in November and was exceeded only by a 4.3 percent annual increase in November 2000.

Growth in wages should support consumer spending -- a force that helps drive the economy. But a rapid and sustained advance -- if not blunted by other economic forces -- can stoke concerns about inflation.

more...

[Roland99]

15. Mfg jobs DOWN; construction jobs DOWN. Late holiday hiring?

[54anickel]

17. Here's another "take" on it...

http://www.finfacts.com/irelandbusinessnews/publish/article_10008591.shtml

Dr Peter Morici: US Economy added 167,000 jobs in December - Growth picking up, Stock Market rally will continue

Today, the US Labor Department reported the economy added 167,000 payroll jobs in December. The revised figure for November was 154,000 up from 132,000.

In the fourth quarter, the economy added 456,000 payroll jobs. This was 11,000 less than in the third quarter, when GDP grew at a tepid 2.0 percent annual rate.

Somewhat slower fourth quarter employment growth does not indicate that the pace of economic growth has slowed further. Consumer spending grew rapidly in October and November, and productivity growth has likely recovered from its poor third quarter showing. Look for fourth quarter GDP growth to be about 2.4 percent.

The probability of a recession in 2007 has receded to 25 percent.


Unemployment and Hidden Unemployment

Separately, the household survey, which includes the self employed, shows the unemployment rate at 4.5 percent in December, unchanged from November. More importantly, the survey indicates another 123,000 adults left the labor force, as the labor force shrunk for the second consecutive month.

Differences between the payroll data and household survey likely indicate that many people who have been displaced from positions with regular employers have sought refuge in home-based consulting and blue collar pickup jobs.

Comparing the two surveys indicates that the ranks of the self employed increased by about 159,000 in December. It is unlikely that the economy, growing at less than a 2.5 percent annual rate, is providing attractive new self-employment prospects for so many workers.

Increasingly the polite answer to what to what do you do is: “I have a home-based business,” or “I’m consulting, I like being my own boss.” The real answer may be “I can’t find a boss.”

more...

[Roland99]

23. Nice comment there, eh? But note how they try and tout 456,000 jobs in Q4 as a positive....

when in reality, that's merely keeping pace with population growth.

But, looking further we find that mfg jobs dropped quite a bit again and my experience (at least for the IT industry) is that you find VERY LITTLE Q4 hiring going on so these new jobs were probably from retailers' holding off holiday help until the last few weeks of Christmas.

Note the lack of the holiday season hiring spike here:

[54anickel]

21. Today's Pfennig - A Jobs Jamboree Friday!

http://www.kitcocasey.com/displayArticle.php?id=1150

Good day... And a Happy Friday to one and all! A Jobs Jamboree Friday to boot! This jobs report ought to be a doozy, given the fact that the experts have forecast a measly 100K jobs created in December, and the ADP report on Wednesday indicated that the job creation could be negative... Of course we know that the Bureau of lies and massaged numbers, I mean, the Bureau of Labor Statistics, won't let a negative number enter into the picture!

A kind of nothing day in the currencies yesterday; although there was a bias to buy dollars, the trading range remained tight. The data yesterday didn't give the markets any firm direction, as the ISM Services Index fell from the previous month's number of 58.9, but remained in line with the forecast of 57... The Weekly Initial Jobless claims jumped up to 329K from the previous week's 319K. Factory Orders came in weaker than expected, and Pending Home Sales fell...

None of that seemed dollar friendly, but the moves were so small that given the fact that these are 2nd-tier economic reports, the markets shrugged them off... Today, however, is a Top of the Tier economic report, for sure! I mean where else can you see if there will be future wage pressures? The Average Hourly Earnings... And Average Weekly Hours... I bet you thought I was going to talk about the jobs created, didn't you?

snip>

Commodities have experienced a rough go of it this week... The base metals, oil, and stuff have all been taken to the woodshed this week... A lot of this is tied to the strength of the dollar this week... So, again... Think about whether this is a new trend or a dead-cat bounce...

Of course, if fundamentals in the U.S. had changed in line with this move in the dollar this week, it just might be a new trend... But fundamentals haven't changed... The Fed is still on tap to cut rates in the face of "real inflation," not the trumped-up stuff the CPI report shows, and the deficits of both Budget and Current Account continue to be a big albatross around the U.S.' neck...

Speaking of the Fed and cutting rates in 2007... Bill Gross of PIMCO (recall, I told you that PIMCO is the world's largest bond fund), believes the Fed will cut rates to 4.25% THIS YEAR! The current rate in the U.S. is 5.25%... So, using new math, I calculate that to be 100 Basis points... Or for those of you keeping score at home... 1%! That's a huge move downward, don't you think? But then there are those that have been telling us for over 6 months now that the U.S. will enter into a recession in 2007... If we were listening then, we would have done things to protect our investments... But did we? Not gauging from the stock market's performance... But oh, never mind... It's a Friday and I want to be in a good mood today!

more...

[Eugene]

28. W.House adviser: U.S. economy set for "soft landing"

W.House adviser: U.S. economy set for "soft landing"

WASHINGTON (Reuters) - A strong reading on December jobs growth suggests
the U.S. economy is poised for a "soft landing," a top White House economic
adviser said on Friday, crediting good monetary policy at the Federal Reserve.

"They've definitely got it right so far," Allan Hubbard, director of the
White House National Economic Council said of the Fed in an interview with
CNBC television.

"It looks like we're going to have that soft landing that we've all been
hoping for," he added.

-snip-

http://today.reuters.com/news/articlenews.aspx?type=politicsNews&storyID=2007-01-05T162612Z_01_N05492525_RTRUKOC_0_US-USA-ECONOMY-BUSH.xml

[54anickel]

29. Bwahahaha! The last paragraph certainly has my mind at ease

"Ben Bernanke and the whole Federal Reserve Board is very attuned and paying a lot of attention to inflation. The president has total confidence that they will make certain that inflation remains contained," he said, noting inflation had been "drifting down."

Everything else the Dimwit has been confident about has turned out so well :sarcasm:

http://www.google.com/search?hl=en&q=Bush+confident

[AnneD]

14. Morning Marketeers...

:donut: and lurkers. Are these jobs 'real', or some of those theoretical jobs they like to create. I guess I am hard to convince. I see too many lay offs and the Feds know that to cut rates or increase rates would be suicide. I think they will stay the course for a while, too risky otherwise. They don't want the housing market to totally go belly up and drag everything else with them.

I payed the rent and electricity. Dang, it's going to take a month to wipe the smile off my face...B-)

Old Rent New Rent
$450 $402

Old Elec. New Elec.
$250 min usage $38 as comfy and cozy as one could want

Can't wait to see what it will be in the summer. The old electricity bills in the summer were almost equal to the rent-and I wasn't even cool-just sweat ed less.
I'm going to be :rofl: all the way to the bank.

Happy hunting, and watch out for the bears.

[ozymandius]

3. Oil prices fall amid warm winter temps

LONDON - Oil prices dipped further Friday, a day after plunging more than $2 a barrel as warm U.S. winter weather contributed to higher-than-expected U.S. inventories of gasoline, heating oil and diesel fuel.

Light, sweet crude for February delivery dropped 14 cents to $55.45 a barrel in electronic trading on the New York Mercantile Exchange at midday in Europe.

-cut-

Ministers of the Organization of Petroleum Exporting Countries are waiting to see whether the lower price trend continues before taking any further action, the chairman of Libya's oil company said Friday.

"We are concerned - of course," Shokri Ghanem told Dow Jones Newswires from Tripoli. "We need to see if this trend continues as it has only been for two days so far."

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

[ozymandius]

4. Crude Oil May Fall as Mild U.S. Weather Curbs U.S. Fuel Demand

Jan. 5 (Bloomberg) -- Crude oil may fall next week, extending its biggest decline since April 2005, as mild U.S. weather reduces heating-fuel demand in the world's biggest energy consumer.

Fourteen of 29 analysts, traders and brokers, or 48 percent, said prices will drop, according to a Bloomberg News survey. Eight expected an increase and seven forecast little change. It was the most bearish response since the week ended Sept. 22. Last week, 46 percent of respondents said prices would rise.

Above-normal temperatures will cover the eastern U.S. from Jan. 10 through Jan. 14, the National Weather Service said yesterday. The Northeast accounts for 80 percent of the nation's heating-oil use. U.S. inventories of gasoline and distillate fuel, a category that includes heating oil and diesel, surged last week, an Energy Department report showed yesterday.

-cut-

Supplies of distillate fuel, a category that includes heating oil and diesel, jumped 1.97 million barrels to 135.6 million last week, the biggest increase since the week ended Sept. 22, the Energy Department reported yesterday. Gasoline stockpiles rose 5.68 million barrels to 209.5 million barrels, also the biggest one-week gain since the week ended Sept. 22.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aPQ8VxvCfCvQ&refer=home

[ozymandius]

5. Stock Futures Fall Ahead of Payroll Data

LONDON (AP) -- U.S. stock futures on Friday dropped before statistics expected to show slowing payrolls growth during December, with a profit warning from handset maker Motorola Inc. and a move by China to limit growth also affecting sentiment.

S&P 500 futures dropped 3.7 points at 1,423.70 and Nasdaq 100 futures dropped 5.5 points at 1,806.75. Dow industrial futures dropped 39 points.

On Thursday, investors moved out of energy sector, while technology stocks advanced, leading to a 6 point rise for the Dow industrials and a 1.7 point rise for the S&P 500, but a 30 point rally in the Nasdaq Composite. A number of retailers missed sales expectations for December, including Limited Brands and Federated Department Stores.

Friday's attention turns to the nonfarm payrolls in December, which is expected to slow to 100,000 from 132,000 in November.

http://biz.yahoo.com/ap/070105/wall_street.html?.v=2

[ozymandius]

6. Have a wonderful day all!

:donut: :donut: :donut:
Yesterday's day off from work was great. I was able to spend some quality time with you folks and rest. But it's back to work with me this morning.

I'll check in after the close.

Ozy :hi:

[54anickel]

11. 10:04 numbers and yada

Dow 12,437.03 43.66 (0.35%)
Nasdaq 2,437.84 15.59 (0.64%)
S&P 500 1,412.83 5.51 (0.39%)
10-yr Bond 4.6880% 0.0700
30-yr Bond 4.7820% 0.0580
NYSE Volume 448,838,000
Nasdaq Volume 331,681,000

10:00 am : The indices are extending their reach to the downside as the bulk of industry leadership remains negative. Of the nine sectors losing ground, Technology (-1.1%) is pacing the way after Motorola (MOT 18.05 -2.50) cutting its Q4 guidance prompts several analysts to lower their ratings. The stock is down 12% and below its lows in mid-July, around the same time the rest of the market bottomed and the 2006 rally began. Analyst downgrades on Intel (INTC 20.86 -0.31) and Dell (DELL 26.04 -0.20) are also taking a toll on tech. A sell-off in the Treasury market lifting yields across the curve, fueled by the Dec. employment data, is also removing some notable leadership from the rate-sensitive Financials sector. Catching a bid for the first time in four days, though, is Energy as oil prices recovering from their largest two-day decline (-8.9%) in two years sparks some bargain hunting interest in Drillers, Explorers and RefinersDJ30 -59.55 DJTA -0.6% DJUA -1.1% DOT -0.7% NASDAQ -19.45 NQ100 -0.5% R2K -0.9% SOX -1.6% SP400 -0.7% SP500 -7.58 NASDAQ Dec/Adv/Vol 1896/610/200 mln NYSE Dec/Adv/Vol 2043/652/94 mln

09:40 am : As expected, stocks stumble out of the gate as surprisingly strong jobs growth is not enough to offset reduced expectations of a Fed easing anytime soon. A profit warning in the tech sector, some notable analyst downgrades and a burgeoning sense that the market is ripe for a pullback of some sort are also contributing to the negative disposition.

Before the bell, the Labor Dept. showed that nonfarm payrolls unexpectedly rose 167K, easing worries about a weakening economy. However, with the Fed concerned that the high level of resource utilization has the potential to sustain inflation pressures, a larger than expected rise in hourly earnings, and what it can mean for Fed policy, is acting as an offset to the biggest payroll gain in eight months. DJ30 -31.94 NASDAQ -14.40 SP500 -4.90 NASDAQ Vol 84 mln NYSE Vol 46 mln

09:15 am : S&P futures vs fair value: -5.0. Nasdaq futures vs fair value: -4.0.

09:00 am : S&P futures vs fair value: -4.8. Nasdaq futures vs fair value: -3.8. Early sentiment continues to strengthen heading into the open bell, but futures still languishing below fair value indicate a weak start for equities. Employers providing more evidence that the U.S. economy continues to weather weakness in housing and manufacturing, and that wage gains remain supportive for consumer spending, are helping investors pare early losses. However, hourly earnings rising the most since April, which in turn will push inflation higher over time and reduces the likelihood of a Fed easing in early 2007, lends little conviction on the part of buyers trying to extend yesterday's tech rally.

08:35 am : S&P futures vs fair value: -5.0. Nasdaq futures vs fair value: -6.5. The futures market has improved following an unexpectedly strong gain in nonfarm payrolls of 167K; but a higher than expected 0.5% increase in hourly earnings (consensus 0.3%) leaves the stage set for the cash market to start the day on a downbeat note. Payrolls figures for October and November were upwardly revised to show a combined 29K in additional jobs while the unemployment rate held steady at 4.5%. Bonds, meanwhile, have reversed course as the surprise payroll gain diminishes hopes the Fed will cut interest rates anytime soon. The 10-year note is tumbling, down 16 ticks to yield 4.66%.

08:00 am : S&P futures vs fair value: -6.9. Nasdaq futures vs fair value: -9.0. Early indications suggest stocks will open sharply lower. With earnings season officially beginning next week, a Q4 warning from Motorola (MOT) exacerbates ongoing concerns about decelerating profit growth. Throw in some analyst downgrades on Dow components ExxonMobil (XOM) and Intel (INTC), as well as Dell (DELL), Aetna (AET) and Nokia (NOK), and traders' typical wait-and-see attitudes ahead of monthly employment data (8:30 ET) are more reminiscent of overall discomfort than mere hesitation. With investors looking for some assertion that the economy isn't slowing too much, the Dec. nonfarm payrolls figure will be closely watched while the Fed's concerns about inflation risks will keep hourly earnings in the spotlight as well.

[54anickel]

12. Fed warned it faces tougher scrutiny under new Congress

http://news.yahoo.com/s/ft/20070104/bs_ft/fto010420071325109740

The Democratic Congress will take a tougher approach to supervising the Federal Reserve than did its Republican predecessor, Barney Frank, the incoming chairman of the House financial services committee, has ­signalled.

His remarks came as the Fed released minutes from its December 12 policy meeting showing it was largely unmoved by signs of economic weakness in the final months of 2006 and remained defiantly focused on the risks to inflation. The minutes sent US equities sharply lower, although bond yields fell slightly.

In a speech to the National Press Club on Wednesday, Mr Frank rejected the idea the Fed was beyond scrutiny. "There are people who think the Fed should be above democracy. We can debate the most fundamental questions in human existence, but God forbid anybody in elected office should talk about whether or not we need a 25 basis-point increase from the Fed."

Mr Frank said interest rates were a matter of "public policy" and suggested the Democratic Congress would be more hands-on and less deferential in its scrutiny of the Fed than was the outgoing Republican Congress.

However, Fed insiders do not expect Mr Frank or his party to be hostile to the central bank.

snip>

Nonetheless, an increase in political scrutiny would come at an awkward time, with the Fed at odds with the bond market over the prospects for the US economy. The Fed minutes show the December 12 meeting viewed near-term weakness as primarily the result of short-term factors that would not significantly affect the forecasts on which it bases its policy decisions.

more...

There's those damned bond vigilantes again! :evilgrin:

[54anickel]

13. CEOs get big bucks, even if they fail

http://www.ajc.com/business/content/business/stories/2007/01/04/0105bizdepotsev.html

The $210 million severance package for former Home Depot chief Bob Nardelli shocked some, but most Fortune 500 bosses have agreements coming into the job about what they will get when they walk out.

And in most cases they, like Nardelli, are guaranteed much of the payout no matter how well they perform, according to several people who keep tabs on corporate pay.

Elson, the director of the Weinberg Center for Corporate Governance at the University of Delaware. "That's a problem."

Elson said shareholders want to know: "Why should you pay someone a lot of money to leave" if they are performing poorly?

snip>

looming. It's difficult for outsiders to estimate potential severance price tags. But new reporting requirements effective this year are intended to make it easier for shareholders to determine not only how much corporate leaders are making but how much they will get if they leave.

"The light switch is going on," said Dennis Beresford, a University of Georgia accounting professor who served on the board of WorldCom as the company tried to rebuild itself. "Now the whole room is lit, and now some of the stuff that might have been in one of the dark corners will be illuminated."

more...



http://www.cfo.com/article.cfm/8505684/c_8506517?f=home_todayinfinance

The SEC Stirs the Pot on Executive Comp

The commission miffed politicians and investor groups by changing the reporting of stock options cost right before Christmas.

Before the Securities and Exchange Commission announced an amendment to its new executive compensation rules at 5:15 PM on the Friday before Christmas Eve, it left Barney Frank out of the loop.

That might have been a big mistake. Frank, a Massachusetts Democrat who assumed chairmanship of the powerful House Financial Services Committee on Thursday, was clearly miffed that the commissioners failed to let him know about the change before it was made official. He also felt that he wasn't the only one who would be irate. In the end, he said, "I think they just may not understand how greatly they have pissed off America over stock options."

Indeed, the substance of the amendment, as well as the timing of its announcement, raised a few eyebrows. In its December 22 press release, the SEC stated that it wanted align the compensation-disclosure rules it had just passed in July more closely with Financial Accounting Standard No. 123R, Share-Based Payment. The FASB rule requires a company to report the costs of stock and option awards "over the period in which an employee is required to provide service in exchange for the award," according to the release.

To be fair, there was a hefty amount of praise for the SEC's amendment, which will become effective when it's published in the Federal Register. The change will, in fact, enable companies to reveal the costs of awards listed in the Summary Compensation Table of proxy statements over the period during which the awards vest. Previously, companies were required to report those costs all at once.

snip>

After the SEC's announcement, Rep. Frank fired off a press release calling the "loosening" of reporting "regrettable both substantively and for not having been open to more public discussion." He also promised that Congress would revisit the issue of executive compensation, which he thinks is now constrained only by "the self restraint of top executives, a commodity that is apparently in insufficient supply."

Frank told CFO.com that while "there’s no perfect answer" to the question of how to report stock option awards, "given the sensitivity to the excessive pay of executives and the recent shenanigans about stock options," it’s better to err on the side of more disclosure than less.

more...

[VegasWolf]

16. Whoa! Who let the water out of the swimming pool? Dow down 100! nt

[54anickel]

18. 12:06 lunchtime check-in

Dow 12,393.93 86.76 (0.70%)
Nasdaq 2,427.01 26.42 (1.08%)
S&P 500 1,408.42 9.92 (0.70%)
10-yr Bond 4.6700% 0.0520
30-yr Bond 4.7580% 0.0340
NYSE Volume 1,342,098,000
Nasdaq Volume 994,336,000

12:00 pm : Stocks are bouncing off session lows midday, but the indices remain noticeably weak as investors weigh reduced expectations of a Fed easing anytime soon against surprisingly strong jobs growth. A profit warning in the tech sector and a burgeoning sense that the market is ripe for a pullback of some sort are also contributing to the negative disposition.

With earnings season officially beginning next week, Motorola (MOT 18.85 -1.70) saying it will miss Q4 targets has revived worries about corporate profit growth. The preannouncement prompting several analysts to lower their ratings and estimates has brought the valuations of other tech names into question. Not surprisingly, as evidenced by the tech-heavy Nasdaq earmarked as today's worst performer (-1.1%) among the majors, the Tech sector is pacing the way lower among all 10 sectors posting losses. Of the 147 S&P industry groups, 142 are losing ground.

While oil prices building on the largest two-day decline (-8.9%) in two years might typically be bullish for stocks, the subsequent absence of leadership from the profit engine that is Energy serves as another reminder that earnings growth is likely to decelerate. Aside from expectations for warm weather across the Northeast still underpinning concerns about less demand for heating oil, crude for February delivery near $55/bbl is also the result of strength in the dollar.

The greenback has surged to a six-week high against the euro after the Labor Dept. showed that nonfarm payrolls unexpectedly rose 167K in December, easing worries about a weakening economy. However, with the Fed concerned that the high level of resource utilization has the potential to sustain inflation pressures, a larger than expected 0.5% rise in hourly earnings and what it can mean for Fed policy is acting as an offset to the biggest payroll gain in eight months.

A sell-off in the Treasury market lifting yields across the curve, fueled by the Dec. employment data, is also removing some notable leadership from the rate-sensitive Financials sector. The 10-year note is down 16 ticks to yield 4.66%. BTK -0.6% DJ30 -89.97 DJTA -1.1% DJUA -1.9% DOT -1.0% NASDAQ -29.18 NQ100 -1.0% R2K -1.8% SOX -1.6% SP400 -1.1% SP500 -10.45 XOI -0.6% NASDAQ Dec/Adv/Vol 2259/632/934 mln NYSE Dec/Adv/Vol 2541/589/680 mln

11:30 am : A renewed wave of selling interest within the last 30 minutes now leaves the major averages trading at their worst levels of the day. The inability by the Dow, S&P 500 and Nasdaq to find support above key technical levels of 12393, 1407, and 2427, respectively, is adding to the market's recent struggles to find a bottom. In a nod to the historical predictive quality of the yield curve, Boston Fed President Minehan recently noting that the inversion "may be flashing yellow," in it's projection of slowing economic growth, is taking an added toll on the rate-sensitive Financials sector. Minehan is one of the four rotating Fed officials now eligible to vote on the Federal Open Market Committee this year. A reversal in Energy, as further deterioration in oil prices (-0.8% near $55/bbl) spark more consolidation throughout the sector, also removes some notable leadership during what is shaping up to be a dismal day to own equities.DJ30 -104.80 NASDAQ -30.05 SP500 -12.01 NASDAQ Dec/Adv/Vol 2198/641/770 mln NYSE Dec/Adv/Vol 2344/691/516 mln

11:00 am : Not much has changed since the last update as the major averages appear to be settling into a relatively narrow range. Technology is off its worst levels, with pockets of leadership coming from Hardware (e.g. HPQ +0.7%, DELL +1.0%) and Internet (e.g. YHOO +1.3%). However, the 8% sell-off in Motorola (MOT 18.91 -1.64), and its Q4 warning bringing the valuations of other tech names into question, continues to act as an overhang. Declines on all 18 of the components in the PHLX Semiconductor Sector Index are also weighing on the sector and earmarking the tech-heavy Nasdaq as today's worst performer among the majors. DJ30 -55.28 NASDAQ -15.00 SOX -1.3% SP500 -5.57 NASDAQ Dec/Adv/Vol 2008/776/576 mln NYSE Dec/Adv/Vol 2266/715/402 mln

10:30 am : More of the same for stocks as sellers remain in control of the early action. Among the few areas attracting buyers, though, is Computer & Electronics Retail (+1.1%). After losing nearly 11% in Q4 as one of the worst performers, the S&P industry group ranks among today's top five performers as Best Buy (BBY 50.89 +1.05) is up more than 2% after reporting better than expected Dec. comps. Oil-related groups make up six of the remaining top ten performers while Autos (+0.6%), Biotech (+0.6%), and General Merchandise (+0.6%) are also bucking the bearish bias. DJ30 -52.95 NASDAQ -15.18 SP500 -5.41 NASDAQ Dec/Adv/Vol 1956/708/412 mln NYSE Dec/Adv/Vol 2319/592/234 mln

[54anickel]

19. Credit is Key to Today's Economy

http://www.prudentbear.com/articles/show/98

The image below reflects what I believe are the fundamental driving forces and interlocking relationships that have been sustaining the world economy over the past 10 years. As you can see, the credit creation process is at the heart of what drives our present-day economy.



When we think about the credit creation process, I think it really boils down to supply and demand (as in all markets). The demand for credit is fundamentally driven by the price of credit (the interest rate). I believe the supply of credit to be fundamentally driven by the profit margin earned on supplying that credit (which at this time seems to be inextricably linked to the yield curve spread--the difference between short term and long term interest rates). In essence, the "carry trade" is driving the supply of credit (which entails borrowing at a lower short term rate in order to lend at a higher long term rate). If the yield curve becomes negative, then the incentive for supplying additional credit diminishes rapidly.

There are two additional new elements that have been facilitating the credit creation process. The two most important risks that every financial institution faces are interest rate risk (as a result of mismatching the duration of their assets and liabilities through the carry trade) and default risk. We have observed enormous growth in outstanding derivatives contracts over the past 10 years (which are predominantly interest-rate related). I see the growth in the use of these contracts as being parallel to expansion of the carry trade, which is funding the creation of credit. The financial institutions are hedging their interest rate risk created by "duration mismatch" by using these contracts. Now secondly, as it pertains to default risk, they hedge that risk by using Fannie Mae/Freddie Mac, private credit insurers (such as MBIA, Ambac, etc.) and now they also employ credit default swap derivatives.

So in a nutshell, I see credit supply as driven by the yield curve, credit demand as driven by the long-term interest rate, while all of this is further facilitated by credit "insurance" and interest rate "insurance".

The creation of credit is what drives the value of assets. The way I look at it, is that the economy as a whole is like one giant balance sheet with assets on one side and liabilities on the other. It only stands to reason that as the stock of liabilities expands, then this in turn provides the financing for elevating asset values (real estate, stocks, etc). What is remarkable is how few people in the investment community actually comprehend this basic relationship.

snip>

However, the yield curve is defined by two interest rates, one of which is controlled by the Federal Reserve. The Federal Reserve may very well be aware of the huge threat that a negative yield curve would pose to the world financial system (in spite of all protestations to the contrary) and act to thwart this process by halting their current program of increasing interest rates (and even go back to lowering the rate). In this case, the positive yield curve spread will be maintained and the credit will keep flowing.

What would eventually happen in this circumstance? The economy would continue to grow, however the issue of world natural resource contraints would eventually come into play. The trade deficit would continue to expand, and larger quantities of cheap offshore labour would be brought into the system of world production, but then this would place increasing demands on the world's finite natural resources. The result would be rapidly escalating oil prices which would feed into rapidly accelerating inflation. That in turn will cause the US bond market to sell off hard, foreign capital to flee, with the attendant dislocations to interest rates, the real estate market and the world economy.

So the world economy as I see it is now presented with a fork in the road. Both paths lead to very unpleasant outcomes, and Federal Reserve chairman Ben Bernanke will be forced to choose. Bernanke can choose Option A, which is to keep raising the Fed Funds rate and cause a negative yield curve (which would affect the supply side of the credit creation process and result in a deflationary scenario). Or he can choose Option B, which is to stop raising the Fed Funds rate and prevent a negative yield curve (eventually resulting in inflation and a huge spike in long term interest rates--which would disrupt the demand side of the credit creation process). At this time, it would appear that Mr. Bernanke has chosen Option A and as such, we are currently seeing the resulting deflationary consequences (the November core CPI reading came in at 0.0%). All this is appears rather ironic given Bernanke's previous stated commitment to use whatever means necessary to combat deflation (in his infamous "printing press" speech).

more...

[54anickel]

20. Freddie Mac sees $550 mln loss in third quarter

Results reflect interest-rate environment; fourth-quarter loss also seen

http://www.marketwatch.com/news/story/freddie-mac-sees-550-mln/story.aspx?guid=%7B64DFBB1A%2DFD08%2D479A%2D9A12%2D980F4A40A1AB%7D&siteid=yhoo&dist=yhoo

WASHINGTON (MarketWatch) -- Freddie Mac, the second-largest buyer of U.S. home mortgages, said Friday that sinking interest rates resulted in a net loss of $550 million in the third quarter, compared to a profit of $880 million in the year-ago period.

Shares of Freddie Mac were recently down almost 2%, to $66.70, after opening fractionally lower Friday.

CEO Richard Syron said the results reflect interest-rate volatility. In a press release, the company explained that the third-quarter results reflect a reversal of mark-to-market gains on derivatives and credit guarantee assets recognized in the first half of the year. The reversal was a result of a decline of about 50 basis points in long-term interest rates over the third quarter, Freddie Mac said.

At the same time, Freddie Mac reported $2.5 billion in net income for the first nine months of 2006, versus $1.4 billion in 2005.

"While our quarterly results reflect the volatility we see quarter-to-quarter in response to movements in interest rates, we remain encouraged with the underlying progress of Freddie Mac's business," Syron said in a press release. During a conference call with investors Friday morning, Syron also said the U.S. housing market is improving and that demand will go up over time. "We are pretty comfortable in the long-term view," he said.

more...

[54anickel]

22. New Year's Implosion

http://www.kitco.com/ind/maund/jan052007.html

For commodities the new trading year did not start off with a bang or a whimper, but rather with an implosion. After moving higher in a most deceptive manner in the early trade commodities across the board went into a dramatic retreat, ending the day at or close to their lows. Damage was widespread and severe, and we will now quickly review it on a range of charts. The early rally is thought to have been an orchestrated campaign to shake out shorts ahead of the big drop.

snip>

A major precipitating factor behind the carnage in commodities yesterday was the action in the US dollar, which rose strongly. The last thing you want to be part of in this business is a very large crowd, and dollar bears are a VERY large crowd. Over the past few months dollar bulls have been almost as hard to find as mahogany trees, while you could probably fill a thousand baseball stadiums with dollar bears, at a conservative estimate. This is a situation that creates the potential for an explosive advance, and it is the dawning perception of this possibility that is believed to be a contributing factor behind the extraordinary action yesterday. A glance at the long-term dollar chart quickly reveals that there is plenty of scope for a substantial advance, even if the fundamentals appear to rule it out, especially as it has recently been flirting with multi-year lows.

snip>

So, what does all this mean? There has been a sudden shift in perception and massive change is afoot - what is driving it? A suspected reason for this shift is the dawning realization in the markets that the long-threatened attack on Iran is not going to happen, at least not for the foreseeable future. This would explain the breakdown in oil prices. The Neocons were seriously weakened by the election results last November, and even with their massive propaganda machine and vote rigging, failed to swing the pendulum far enough to stay in office. Most Americans are fed up with the waste and stupidity of the Iraq invasion, and those who know are also not at all happy with those who were really behind it, a narrow self-serving elite who regard most of the American population and everybody else for that matter as “goy cattle” - i.e. corruptible, gullible, expendable morons, and are in no mood for yet another Vietnam - one at a time is enough. This even includes a good many corrupt and compromised Congressmen of both parties, who are beginning to get restive beneath their masters’ yoke.

The most dangerous mistake made by many dollar bears it to underestimate the Federal Reserve. When it comes to financial wizardry the Federal Reserve has on its payroll some of the sharpest minds on the planet. Stop and think about it; they have succeeded in seducing the rest of the planet into trading in US dollars. This has conferred enormous disproportionate power upon the United States, and made it possible to run trade balances of astronomic proportions as goods imported are paid for with an endlessly expanding supply of electronically created money. The trading partners of the US have been duped, and have been left holding a very big bag. There is an old saying ”Never give a sucker an even break” and the Fed certainly don’t intend to.

The reasons why the dollar might rally from here are not known, but one plausible explanation might be a progressive ‘beggar thy neighbour” policy of competitive devaluations by other countries and trading blocs battling to keep a competitive edge. With other factors weighing in, the dollar could end up being “king of hell” if money supply expansion elsewhere outran the dollar.

more...

[54anickel]

24. Euro Key to US$ Decline (Willie)

http://www.321gold.com/editorials/willie/willie010507.html

snip>

Inside word has it that the Beijing Summit was a colossal failure. Chinese leaders will permit the yuan currency to rise at a slow pace to their liking. They will open their bank system at their own pace and pleasure. They will collude with Wall Street firms to conceal the damaged financial books on banks to undergo initial public offering. They will dribble income for US intellectual property in a slow laughable trickle, as dictated for software, movies, books, music, and patents. They will diversify to EuroBonds and gold as they damned well please. They will continue with extraordinary energy projects with Iran, much to the displeasure of the USGovt, whose embassy delivered a warning to Beijing just last week. Games will continue until it is clear who is in charge, the credit master! Such signal might put an exclamation point on the nice warm fuzzies from the summit itself. In my view Beijing wants four things. First, they want their own regional Asian currency which would stand as the foundation for an Asian credit market. Second, they want a seat at the G8 Finance minister meetings, deserved from good trade behavior or not (see the World Trade Org complaints). Third, they want to expand their military, to be bought with USTBonds sitting around and perhaps assisted by giant Korean shipbuilders (provided technology is donated). Fourth, they want unfettered unobstructed access to the US markets for selling products. Be sure that the USGovt will comply on all counts, all in time.

snip>

CONCLUSION
The biggest risk detectible on my radar is for the US Federal Reserve to remain stubborn. As long as they extol the mythical strength of the USEconomy, as long as they cry wolf at the ravage of price inflation threats, the risks rise for investors of gold, silver, and crude oil. The longer the buffoons at the USFed hold back on interest rate cuts, the more damage will be born by the housing market, and by the upside down consumption-based economy, and by investors of commodities (whether physical or stocks). In a reckless policy execution, the USFed is playing a grand game of chicken. They want demand destruction, but risk economic downward momentum led by housing. They truly believe they are controlling price inflation, but they are actually risking a situation which might not respond and take to the next low rate medicine. Their next move is to cut rates.

Blather from the USFed to cite an inflation threat and their vigilance to fight it speaks not to rising wages and rising prices from cost push. It addresses, nay screams, to their fear of a falling USDollar and the associated systemic rise in prices. Why? Because the United States has become fatally dependent on foreign finished products, foreign energy supply, and foreign credit, reminiscent of a Third World nation. All that is missing is the goose step among marching military columns. The gold price and silver price and oil price all will rise with a falling USDollar. And let's not forget the mind numbing destructive failed policy in the entire Middle East, from each and every corner. Iraq is the quicksand. Iran is the powderkeg. Israel is the friction. Europe stands in the crossfire. Russia lies in wait, in far more control than the sleepy lapdog US press & media choose to report. For that would be to proclaim a return to the Cold War.

That icy belligerence of conflict is surely here, but on the energy front, which has earned the title the Global Energy War by me since 2003, ignited by the Shock & Awe of the Iraqi War. The only thing shocking is the degree of failure. The only thing of awe is the stubbornness to continue the course. The words mindnumbing fit more and more with each passing day. Ironically, the decisions not to bomb Iran have kept the USDollar up, and the crude oil price down. The decisions not to resume bombardment of Beirut have kept the USDollar up, and the crude oil price down. In the meantime, the USDollar remains fatally wounded, yet Uncle Sam, who leaks bills from his wallet, continues to walk upright. He is a hollow replica of his former robust self. Numerous friends and foes alike prop him up. One must actually check his pulse to see if he is alive. It might just be a skull & crossbones under the royal robes worn thin by the years. The price of gold, silver, and oil will benefit from the inevitable repeated USDollar declines, which will occur less often than expected for practical reasons.

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[54anickel]

25. From the WTF files - The £7 million guide to a tidy desk

http://www.timesonline.co.uk/article/0,,2-2532326,00.html

Red tape has given way to black marker tape for thousands of bemused civil servants as part of a £7 million paperclip revolution aimed at ensuring that they keep the tools of their trade in the right place.

Office workers have been given the tape to mark out where they should put their pens and pencils, their computer keyboards and to indicate where to place their phones.

National Insurance staff have been chosen as guinea-pigs for the latest phase of the “Lean” programme brought in by the logistics consultants Unipart. The programme prohibits workers from keeping personal items on their desks.

snip>

The National Insurance department at Longbenton, Northumberland, has been picked as a pilot site for the latest clear-desk concept. Revenue & Customs declined to say how much Unipart had been paid for the project. But a PCS spokesman said that the project was costing £7.4 million nationally.

snip>

“We had a situation in some offices in Scotland where staff were asked, ‘Is that banana on your desk active or inactive?’, meaning were they going to eat it? If not, it had to be cleared away.”

Kevin McHugh, PCS branch secretary, said that some staff at Longbenton shared a desk, and had had to rearrange their workspace, regardless of the tape. “If the person coming in after you has longer arms, he will have to move the markers,” he said. “This office has been open for 60 years and people have managed to find their pens and staplers without consultants helping them.”

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[54anickel]

26. 1:04 update

font color=red]Dow 12,389.36 91.33 (0.73%)
Nasdaq 2,428.70 24.73 (1.01%)
S&P 500 1,408.03 10.31 (0.73%)
10-yr Bond 4.6720% 0.0540
30-yr Bond 4.7630% 0.0390
NYSE Volume 1,654,316,000
Nasdaq Volume 1,208,453,000

1:00 pm : The major averages are still on the defensive as the absence of spirited leadership from a number of blue chips keeps buyers on the sidelines. On the Dow, 27 of 30 components are trading lower. Caterpillar (CAT 60.02 -0.98) is pacing the way with a 1.6% decline as dollar strength makes large exporters less attractive. The dollar sitting at six-week highs against the euro is also weighing on the likes of Alcoa (AA 28.70 -0.40) and DuPont (DD 48.15 -0.55) while an analyst downgrade on Intel (INTC 20.90 -0.27) gives investors a reason to lock in some of yesterday's 4.4% gain on the chip giant. DJ30 -77.97 NASDAQ -22.52 SP500 -8.89 NASDAQ Dec/Adv/Vol 2228/724/1.14 bln NYSE Dec/Adv/Vol 2501/660/856 mln

12:30 pm : The indices continue to pare their intraday losses entering the afternoon session; but sector leadership remains predominantly negative. A recent turnaround in Energy is the most noticeable reason behind the market's recovery efforts. Even though sector gains are modest at best, crude oil prices inching back into positive territory is renewing interest in a sector that has been hammered all week as hedge funds entered the New Year liquidating positions. Oil's rebound is also lending some reassurance that energy profits will again be a large contributor to the overall earnings picture for the S&P 500. DJ30 -79.91 NASDAQ -23.87 SP500 -9.22 NASDAQ Dec/Adv/Vol 2229/701/1.03 bln NYSE Dec/Adv/Vol 2537/600/760 mln


peek at the buck
http://quotes.ino.com/chart/?s=NYBOT_DX&v=s

Last trade 84.74 Change +0.40 (+0.47%)

Settle Time 15:00 Open 84.31

Previous Close 84.34 High 84.81

Low 84.15 2007-01-05 12:38:21, 30 min delay

52wk High 91.16 52wk High Date 2006-03-10

52wk Low 82.24 52wk Low Date 2006-12-05

[54anickel]

27. Dollar Dethroned By Red Ink (Paul Craig Roberts)

http://www.globalresearch.ca/index.php?context=viewArticle&code=ROB20070102&articleId=4312

snip>

Foreigners are worried about their large dollar holdings, because there is no indication that the US can reduce either deficit. The war against Iraq has run up the US budget deficit, and the practice of US corporations of producing offshore for their US markets has increased the US trade deficit. Every time a US company moves its production abroad, domestic output is turned into imports.

China has indicated that it will continue to accumulate dollars, but at a slower rate by trading some of the dollars for other currencies.

On December 18 Iran announced that it will cease to use the US dollar as reserve currency.

On December 28 United Arab Emirates, a close US ally, announced that the weakening US dollar has caused its central bank to move some of its foreign exchange reserves from dollars to Euros.

The decisions of foreign central banks to reduce the rate at which they acquire dollars implies higher US interest rates at a time when the US economy is slowing, making it difficult for the Federal Reserve to ease monetary policy and more expensive for the US to borrow.

If foreigners take the next step and begin dumping their dollar holdings, there is nothing the US government can do to avert the catastrophe. Washington must take steps before it is too late.

The only timely solution is to reduce the US budget deficit. This requires Congress to cut spending or raise taxes or both. Raising taxes on a weakening economy is not a good idea. As entitlements (Social Security and Medicare) comprise most of nondefense spending, the easiest step for Congress to take is to stop funding Bush’s pointless war. With less red ink to be financed, there would be less pressure on the dollar.

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[54anickel]

30. Heading into the final hour

Dow 12,384.64 96.05 (0.77%)
Nasdaq 2,429.72 23.71 (0.97%)
S&P 500 1,408.30 10.04 (0.71%)
10-yr Bond 4.6500% 0.0320
30-yr Bond 4.7450% 0.0210
NYSE Volume 2,373,935,000
Nasdaq Volume 1,691,434,000

3:00 pm : With only an hour left of trading during this holiday-shortened week, selling remains the name of the game. Out of 147 S&P industry groups, 137 are trading lower. In fact, of 10 groups attracting buyers, six are tied to the Energy sector as oil prices finished the session up 1.2%. Even though the commodity is down nearly 8% in just three days -- its biggest weekly decline since April 2005, today's rebound has added further pressure to transports, leaving 19 of 20 components on the Dow Jones Transportation Average trading lower. Norfolk Southern (NSC 49.07 +0.66), however, is the index's lone winner, turning in a 1.4% advance after it was upgraded to Buy from Hold at Citigroup based on valuation. DJ30 -90.05 DJTA -1.5% NASDAQ -20.73 SP500 -9.52 NASDAQ Dec/Adv/Vol 2296/738/1.60 bln NYSE Dec/Adv/Vol 2477/754/1.25 bln

2:30 pm : More of the same for stocks as the Nasdaq continues to outpace the Dow and S&P 500 to the downside. It is worth noting, though, that even if the tech-heavy Composite closes at current levels (-0.9%), it is still up nearly 0.7% for the week/year while its blue-chip counterparts are down fractionally. Nine out of 10 sectors are still under selling pressure, but fortunately for the bulls, today's two biggest disappointments -- Utilities (-1.7%) and Telecom (-1.2%) -- are also among the least influential sectors on the S&P 500. DJ30 -90.25 NASDAQ -22.13 SP500 -9.66 NASDAQ Dec/Adv/Vol 2287/739/1.48 bln NYSE Dec/Adv/Vol 2463/753/1.13 bln

2:00 pm : Little changed since the last update as investors find few catalysts to push the indices more aggressively in either direction. The market has been in a holding pattern all afternoon waiting to hear from Fed Chairman Ben Bernanke. However, since he hasn’t commented on the current economy or monetary policy, his remarks have been a nonevent. Oil prices, though, have spiked to session highs and are back above $56/bbl amid speculation OPEC will call for further production cuts to bolster prices. Be that as it may, with investors more focused on earnings growth than oil’s potential to sustain inflation pressures, the Energy sector (+0.8%) climbing to session highs in sympathy is so far acting as an offset.DJ30 -76.91 NASDAQ -19.50 SP500 -8.08 XOI +0.3% NASDAQ Dec/Adv/Vol 2267/737/1.37 bln NYSE Dec/Adv/Vol 2503/710/1.06 bln

1:30 pm : Sellers remain an active bunch as the lack of virtually any industry leadership to the upside continues to weigh on the proceedings. Bearish breadth figures further underscore the uphill battle bulls are facing at the moment. As reflected in the A/D line, decliners are outpacing advancers at the NYSE by nearly a 4-to-1 margin while those on the Nasdaq hold a more than 3-to-1 edge. A convincing ratio of more down volume to up volume on both the Big Board and the Composite also reflects the sense of nervousness among buyers. DJ30 -77.55 NASDAQ -20.07 SP500 -8.73 NASDAQ Dec/Adv/Vol 2271/708/1.27 bln NYSE Dec/Adv/Vol 2529/653/968 mln

1:00 pm : The major averages are still on the defensive as the absence of spirited leadership from a number of blue chips keeps buyers on the sidelines. On the Dow, 27 of 30 components are trading lower. Caterpillar (CAT 60.02 -0.98) is pacing the way with a 1.6% decline as dollar strength makes large exporters less attractive. The dollar sitting at six-week highs against the euro is also weighing on the likes of Alcoa (AA 28.70 -0.40) and DuPont (DD 48.15 -0.55) while an analyst downgrade on Intel (INTC 20.90 -0.27) gives investors a reason to lock in some of yesterday's 4.4% gain on the chip giant. DJ30 -77.97 NASDAQ -22.52 SP500 -8.89 NASDAQ Dec/Adv/Vol 2228/724/1.14 bln NYSE Dec/Adv/Vol 2501/660/856 mln

Wasn't Intel the darling yesterday?

[54anickel]

31. Fork stickin' time!

Dow 12,398.01 82.68 (0.66%)
Nasdaq 2,434.25 19.18 (0.78%)
S&P 500 1,409.71 8.63 (0.61%)
10-yr Bond 4.6460% 0.0280
30-yr Bond 4.7430% 0.0190
NYSE Volume 2,917,553,000
Nasdaq Volume 2,122,271,000

4:20 pm : Stocks closed lower across the board as reduced expectations of a Fed rate cut anytime soon and revived worries about corporate profit growth overshadowed surprisingly strong jobs growth. A burgeoning sense that the market is ripe for a pullback of some sort also contributed to a day of broad-based consolidation.

With earnings season officially beginning next week, Motorola (MOT 18.94 -1.61) cutting its Q4 guidance kicked things off on a sour note, pushing the stock down as much as 12% in early trading before shares closed down nearly 8% - the biggest one-day decline in about four years. Motorola's preannouncement prompted several analysts to lower their ratings and estimates, which brought the valuations of other tech names into question as well. Seventeen of 18 companies in the PHLX Semiconductor Sector Index losing ground, due largely to multiple analyst downgrades (e.g. INTC, BRCM, NVDA, MRVL) also weighed on the sector and contributed to the tech-heavy Nasdaq turning in the day's worst performance among the majors.

The biggest news item of the day, though, was the closely-watched employment report given its influence on the market's outlook for the economy and Fed policy. At 8:30 ET, the Labor Dept. showed that nonfarm payrolls unexpectedly rose 167K in December and that the unemployment rate held steady at a still historically low 4.5%. Thus, it appears the Fed is still on pace to engineer a soft landing, as the data assuaged previous concerns about the severity of the economic slowdown.

However, with the Fed more concerned that the high level of resource utilization has the potential to sustain inflation pressures, a larger than expected 0.5% rise in hourly earnings, and what it can mean for Fed policy, acted as an offset to the biggest payroll gain in eight months. Even though wage gains remain supportive for consumer spending, the fact that hourly earnings rose the most since April, which will push inflation higher over time, diminished the likelihood of a Fed easing in early 2007.

Fed funds futures now show only a 6% chance of a rate cut in late March, down from 17% a day earlier, and price in only a 50-50 possibility of a rate cut through the first half of 2007.

Aside from profit taking across the board in Technology on the heels of yesterday's 1.8% tech rally, the absence of notable leadership from the rate-sensitive Financials sector further underscored the uphill battle faced by the bulls Friday.

Treasuries, which were pricing in a weaker than expected read on payrolls, completely reversed course in early action. Bond yields surging across the curve, with the spread between the 2 and 10-year note slipping deeper into inversion, took an added toll on banks borrowing money at short-term rates. Boston Fed President and voting member Cathy Minehan noting that the inversion "may be flashing yellow," in it's projection of slowing economic growth, exacerbated the lack of enthusiasm to own Financials.

Energy, though, was a bright spot for investors for the first time in three sessions. However, renewed interest in beaten down energy stocks came at the expense of a 1.2% rebound in oil prices following their largest two-day decline (-8.9%) in two years. While oil's recovery lent some reassurance that energy profits will again be a large contributor to the overall earnings picture for the S&P 500, the commodity's potential to sustain inflation pressure served as a reminder about the Fed's concerns about inflation risks and merely added uncertainty as to when policy makers will ease. BTK -0.7% DJ30 -82.68 DJTA -1.3% DJUA -1.7% DOT -0.4% NASDAQ -19.18 NQ100 -0.4% R2K -1.8% SOX -1.1% SP400 -1.1% SP500 -8.63 XOI +0.4% NASDAQ Dec/Adv/Vol 2274/807/2.09 bln NYSE Dec/Adv/Vol 2451/813/1.67 bln

3:30 pm : Indices continue to languish near their lows of the session as buying interest remains scarce across the board. Bonds, however, made a late session run to better levels, closing the yield on the 10-year note (-11/32) at 4.64%. That is a 4-basis point improvement from where it stood right after the surprisingly strong payrolls figure hit the wires and took the wind out of a Treasury market anticipating a softer read. Nonetheless, with the curve between the 2 and 10-year notes still deeply inverted, rate-sensitive issues like banks (BKX -1.0%) still trading sharply lower removes some notable leadership.DJ30 -89.97 NASDAQ -21.65 SP500 -9.01 NASDAQ Dec/Adv/Vol 2333/717/1.79 bln NYSE Dec/Adv/Vol 2507/725/1.41 bln

Have a great week end! :hi:

[citizen snips]

32. Stocks Fall on Interest Rate Concerns

NEW YORK (AP) -- Wall Street and the Treasury market ended the first week of 2007 with sharp losses Friday after a surprising surge in new jobs and wages diminished investors' hopes for an interest rate cut.

The markets shuddered at the Labor Department's report that U.S. employers increased their payrolls by 167,000 in December and boosted workers' hourly wages by 0.5 percent. The unemployment rate, meanwhile, held steady at a historically low 4.5 percent.

The report suggests the economy won't be slowing as much as investors anticipated -- news that should prove positive for stocks in the long-term, but which raised concerns Friday that the Federal Reserve might use it as a reason to raise interest rates. A rise in rates could crimp consumer spending, and further weaken the housing market by making mortgages pricier.

At this point, though, economists see policy makers keeping rates steady.

more...
http://biz.yahoo.com/ap/070105/wall_street.html?.v=38

[54anickel]

33. Baucus, Grassley introduce bill to repeal AMT

Leading Senate Finance Committee members call for an end to the wealth tax that threatens middle-income taxpayers.

http://money.cnn.com/2007/01/04/pf/taxes/amt_legislation_introduced/index.htm?postversion=2007010418

NEW YORK (CNNMoney.com) -- A bipartisan group of senators on Thursday introduced a bill calling for the death of the stealth tax that lawmakers on both sides of the aisle have criticized.

Senate Finance Committee Chairman Max Baucus (D-Mont.), ranking Republican and former committee chairman Charles Grassley (R-Iowa) and three other committee members introduced legislation to fully repeal the alternative minimum tax (AMT) as of 2007.

"This bill is really a bellwether for one of the Finance Committee's biggest priorities this year. This Congress intends to provide tax relief to middle-income Americans in a fiscally responsible way, and the AMT is the right place to start," Sen. Baucus said in a statement.

The bill is similar to one the group introduced in 2005.

On the House side, Charles Rangel (D-NY), the new chairman of the Ways and Means Committee, has said repeatedly that fixing the AMT is a priority.

The AMT imposes a higher bill on taxpayers than the regular tax code. The tax, originally intended for the wealthy, now threatens to catch tens of millions of middle-class taxpayers unless lawmakers increase the AMT adjusted gross income exemption levels, since the original levels were never adjusted for inflation. (For more on how the AMT is calculated, see below.)

more...

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34. Falling Oil Prices May Benefit Drivers

NEW YORK (AP) -- U.S. drivers could start seeing lower prices at the pump as early as this weekend, thanks to the cascading price of crude oil and a seasonal dip in gasoline, analysts say.

A gallon of regular unleaded gasoline costs an average of $2.325 across the country, according to the AAA.

"That's probably going to be the highest price you pay in January," Oil Price Information Service analyst Tom Kloza said. "We're going to get a nice little energy price dividend in January: If you're buying heating oil, you're going to pay a lot less than last year, and we're definitely going to be paying less for gasoline than we did in December."

Gasoline prices typically fall in January amid weaker demand, Kloza said, before perking back up around Valentine's Day and rising through the summer.

Also helping to temper gasoline prices is the recent slide in crude oil prices. Light, sweet crude for February delivery dropped as low as $54.90 Friday -- the lowest price in 19 months -- before climbing back to settle at $56.31, up 72 cents on the New York Mercantile Exchange.

more...
http://biz.yahoo.com/ap/070105/oil_prices.html?.v=31

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35. Best Buy, Circuit City Sales Rise

MINNEAPOLIS (AP) -- December was good to Circuit City. It was better to Best Buy.

The nation's two largest consumer electronics retailers both turned in strong December sales on Friday. Circuit City said sales at stores open at least a year rose 4.2 percent for the month, roughly in line with analyst estimates. Best Buy, the larger chain, said sales for the month rose 7 percent at stores open at least 14 months, significantly better than the 5 percent estimate by analysts.

Measures of sales growth at existing stores are a key retail barometer.

Lehman Brothers analyst Alan Rifkin said Best Buy's same-store performance was even more impressive considering that each of its locations already bring in about twice as much revenue as those of Circuit City Stores Inc.

"Clearly, both companies bounced back in the latter part of December, and we think the momentum has really carried through in the early days of January," he said. "Gift card redemption takes on a frenetic pace after the holiday."

more...
http://biz.yahoo.com/ap/070105/electronics_sales.html?.v=12

[54anickel]

36. The 5% Solution

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2007/IO+Janaury+2007.htm

Is the Fed impotent now – a 110-pound weakling getting sand kicked in its face by the global financial community as it creates massive liquidity? Or to put it more politely, can Bernanke continue to control the U.S. economy and inflation – or is he, like everyone else, at the mercy of the recycling of Asian and BRIC reserves, the reinvestment of petro-dollars, and the hardnosed capitalistic proclivities of hedge funds and investment banks? It’s not an outrageous question you know, and its answer may help guide asset managers in their quest for profits in 2007 and beyond. Even the Fed itself has admitted that it sometimes resembles Nicole Richie as opposed to Arnold Schwarzenegger these days. After all it was Ben Bernanke who coined the phrase “global savings glut” and used it to explain why intermediate and long-term yields in the U.S. (and by implication worldwide) were as much as 1% lower than they should be. Still, while a case can be made that much of the U.S. and other global yield curves have been almost permanently reshaped by yield insensitive recycling of U.S. balance of payment deficits, it seems to me that the Fed actually has a stronger hand to play in 2007 than it has for several years now and that determining where the future Fed Funds rate should be is a key for bond and stock market performance in the months and quarters ahead. With Asian central banks more concerned about currency levels than reinvestment returns, petrodollar recipients more worried about parking their burgeoning wealth in perceived safe haven bond markets than debating whether the U.S. 10-year belongs at 4.7% or 5.7%, and multinational corporations still leery of deploying their huge cash reserves in capital spending alternatives, the one and perhaps only major player that is particularly price sensitive is the Fed. If 5¼% is the right rate for a goldilocks economy then there it will stay. If it generates accelerating inflation then it’ll go up; if accelerating unemployment then it’ll go down. And because the Fed is the most price-sensitive participant in the credit markets they, not private market players, will guide other yields upward or downward much like the North Star has guided mariners for centuries. Where, then, will Fed Funds be at the end of 2007?



Rather than digress into a micro discussion of the U.S. housing market and implications for a growth “disconnect” between the American and global economies, I find it most helpful to analyze the current restrictiveness of 5¼% short-term yields by comparing that benchmark to the growth rate of nominal GDP. Many investment managers are almost oblivious to nominal U.S. GDP levels these days – as a matter of fact, the Commerce department itself nearly buries the nominal number 8 or 9 paragraphs deep in its quarterly press releases. There are times when you can’t even find it in the text. But it is nominal, not real GDP that reflects the return on a nation’s capital, and nominal GDP that points towards our ability to pay our bills. Since almost all yields reflect a real plus an inflationary component, it stands to reason that the ability to pay debts expressed in nominal terms should be viewed in a similar fashion when analyzing growth. By so doing one can understand, for instance, why a deflationary environment can be so deadly to a modern-day, debt-ladened economy. It might be growing in real terms, but if nominal growth sinks below the zero line then the servicing of debts becomes onerous and can lead to liquidity traps that implode financial markets.

snip>

Admittedly much has changed since the early 1990s or even over the past 5 years. Ben Bernanke’s savings glut has not only lowered all yields 100 basis points or so below historical norms, but the globalized economy which produced it appears to have a life of its own, relatively unaffected to date by the U.S. housing market and consumption implications. If so, then one might expect global growth (with its American export demand) to exert a moderating upward influence on U.S. nominal GDP growth rates. Still, if 5% is the magic number and 4% is where we’re likely to hang out in 2007, then the Fed will likely respond sometime within the next six months with a series of cuts intended to restimulate growth along with its key asset markets (primarily housing). What will be perhaps most interesting to observe in 2007 is not the level of Fed Funds by yearend, but whether or not the series of cuts has been successful in reattaining that required 5% growth rate. If homeowners do not take the bait and restart the summer/fall/winter/spring cycle typical of asset markets, then Fed Funds expectations will move lower still, no matter what the global growth scenario.



We at PIMCO look for a Fed Funds rate of 4¼% by December of 2007 with 5 and 10 year yields hovering at levels perhaps 25 basis points higher. While that by no means would be reflective of past bond bull markets in terms of magnitude, that is not to imply that 12/31/07 would mark its last gasp. With nominal growth in the U.S. economy dependent on asset appreciation more than ever before, the Fed will lower rates as far as they must in order to produce it. We, like everyone else, will be interested observers along that downward path as they attempt to push the nominal economy back to the magic 5% rate of growth necessary to pay this nation’s bills. Is the Fed impotent now? Not as powerful as it once was, but with private financial market participants more interested in other pursuits, it may be the only game in town, at least for 2007, and if it lowers rates sometime within the next six months then the U.S. bond bull market will gain renewed vigor.

more...

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37. Dollar Gains Against Euro, Pound

NEW YORK (AP) -- The dollar rose against the euro and pound Friday after the U.S. government released a better-than-expected employment report for December. But it failed to make gains against the yen as falling commodity prices propped up the Japanese currency.

In afternoon New York trading, the 13-nation euro bought $1.3009, down from $1.3086 late Thursday in New York. The British pound slipped to $1.9301 from $1.9443.

The dollar bought 118.60 yen, down from 119.10 yen late Thursday.

"The employment report prompted a knee-jerk reaction higher in the dollar as players were surprised at the unexpected gains in jobs as well as the accelerated pace of wage growth," said Michael Woolfolk, a senior currency strategist at the Bank of New York.

more...
http://biz.yahoo.com/ap/070105/dollar.html?.v=3

[54anickel]

38. 'Why the US should be worried'

http://www.hindustantimes.com/news/181_1887880,0093.htm

You always think that the United States of America is the only real superpower in the current world. Well… soon you may have to rethink about it. The "real superpower" title is going to become the mother of all lies and conspiracy theories that the world have had ever known. Don't accept it? Read the following facts and think again:

From the beginning of this 21st century, the United States is facing competition from beyond its borders as well as internal difficulties. Its lower and middle class families are slowly turning out to be the biggest losers of current globalisation. The United States, like ancient Rome, is beginning to be plagued by the limits of its power.

The current globalisation is heavily affecting its economy. In fact, the US has actively promoted the worldwide exchange of commodities like no other nation, and the result is that their local manufacturing industries have begun to be eroded.

Some manufacturing sectors such as furniture, consumer electronics, automobile part suppliers and computer manufacturers have had left the country for good. In the recent past, free trade has primarily benefited the very rival countries that are now mounting a heavy economic offence on the United States and the rival countries have cut off a large slice of America's global market share.

The financial position of the United States has declined dramatically in the last 15 years. The US federal budget is in the deep red, adding to America's dependency on debt.

The war in Iraq and Afghanistan is wiping out loads of dollars from US treasury. A government functioning so irresponsible with no sense of the prosperity of its own country and people is not really a superpower in any sense.

more...

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39. Motorola Among Wall Street's Big Movers

NEW YORK (AP) -- Stocks that were moving substantially or trading heavily Thursday on the New York Stock Exchange and Nasdaq Stock Market:
NYSE

Motorola Inc., down $1.63 at $18.92.

The world's second-largest cell-phone maker warned that fourth-quarter revenue and earnings estimates would be lower due to a shortfall in its cell-phone sales.

Best Buy Co., up 16 cents at $50.

The biggest U.S. consumer electronics retailer said sales for December surged 7 percent at stores open at least 14 months.

Circuit City Stores Inc., down 71 cents at $19.29.

more...
http://biz.yahoo.com/ap/070105/wall_street_stocks.html?.v=3

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40. Net Stocks Mixed in 1st Week

NEW YORK (AP) -- Shares of big-name Internet companies ended 2007's first trading week mixed, as analysts forecast a strong fourth quarter for Web portal business Yahoo Inc. but warned on slowing store-format listings at eBay.

"After 'difficult' earlier quarters in 2006, we anticipate Yahoo's strong finish in the fourth quarter," wrote Oppenheimer analyst Sasa Zorovic in a note to investors.

The analyst, who rates the stock "Buy" with a $32 price target, wrote that he expects Yahoo's long-awaited search advertising improvements are on track to be released in the first quarter, but that the company won't see a pronounced revenue increase until the second half of 2007.

Shares of the Sunnyvale, Calif.-based company gained 89 cents, or 3.3 percent, to close at $27.74.

more...
http://biz.yahoo.com/ap/070105/internet_sector_wrap.html?.v=2

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41. Analysts: Home Depot Must Change Culture

ATLANTA (AP) -- With Bob Nardelli gone as chief executive, the challenge facing Home Depot Inc. is to turn its stores back into the irresistible shopping destinations they were a decade ago -- making them more customer-friendly, with more knowledgeable employees, cleaner aisles and better stocked shelves. That, industry analysts say, will require a change in Home Depot's corporate culture.

The world's largest home improvement store chain has not revealed any of its plans since Wednesday's sudden announcement that Nardelli had resigned. Analysts hope to gain some insight into the Atlanta-based company's future at an investor conference next month -- but no one is expecting a miracle cure.

"They're not going to wave a wand and instantly have a change in course," said Jeff Sonnenfeld, a professor at Yale School of Management.

Nardelli believed in centralizing functions and running a tight ship. Profits and revenue soared under his six-year tenure, but customer service was often a sore spot. Some Home Depots looked tired and disorganized, and finding an employee to help locate items could be a chore at times.

more...
http://biz.yahoo.com/ap/070105/home_depot.html?.v=2

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42. Metals Pressured by Strong Dollar

NEW YORK (AP) -- A strong U.S. jobs report Friday scaled back market expectations for potential U.S. interest-rate cuts, sending the dollar to its highest levels since Thanksgiving and putting the precious metals under heavy pressure, analysts said.

The dollar index skyrocketed, climbing as high as 84.81, its strongest level since Nov. 22. Stop-loss activity and selling by managed-money accounts were reported in gold and silver.

Selling pressure quickly accelerated after the Labor Department said non-farm payrolls rose by 167,000 in December, topping the consensus forecast of 115,000. Furthermore, jobs growth in November and October were both revised higher.

February gold fell as far as $603, its weakest level since Oct. 27. March silver bottomed at $12.10, its weakest level since Oct. 26.

more...
http://biz.yahoo.com/ap/070105/commodities_review.html?.v=1

[citizen snips]

43. Motorola Cuts 4Q Outlook, Stock Dives

CHICAGO (AP) -- Motorola Inc.'s two-year, Razr-fueled resurgence in the global cell-phone market was in trouble Friday after the company warned of disappointing sales and earnings from the key holiday selling season.

Investors sent the company's stock down sharply amid a consensus that the trendsetting Razr has lost its buzz in the marketplace and Motorola's efforts to come up with a new killer product have so far not paid off, hindered by stiffening competition.

Motorola's pre-announcement Thursday night of worse-than-anticipated fourth-quarter results made it two straight quarters that the company has fallen short of Wall Street expectations. It also threatens to end eight consecutive quarters of market-share gains for a company that, despite improving to a 22 percent share from 16 percent in 2004, remains far short of its goal of recapturing the lead it held in the 1990s from Finland's Nokia Corp.

Shares fell $1.61, or 7.83 percent, to close at $18.94 on the New York Stock Exchange after sinking as low as $18 earlier in the session, matching their lowest price since July 2004.

more...
http://biz.yahoo.com/ap/070105/motorola_outlook.html?.v=19

[citizen snips]

44. Altus CEO Sells Shares

NEW YORK (AP) -- The president and chief executive of biopharmaceutical company Altus Pharmaceuticals Inc. exercised options for 9,750 shares of common stock, according to a Securities and Exchange Commission filing Thursday.

In a Form 4 filing with the SEC, Berkle Sheldon reported he exercised the shares Wednesday for $3.92 apiece and sold them the same day for $18.88 apiece.

The stock sale was conducted under a prearranged 10b5-1 trading plan which allows a company insider to set up a program in advance for such transactions and proceed with them even if he or she comes into possession of material nonpublic information.

Insiders file Form 4s with the SEC to report transactions in their companies' shares. Open market purchases and sales must be reported within two business days of the transaction.

more...
http://biz.yahoo.com/ap/070105/altus_insider_sale.html?.v=1

[citizen snips]

45. Corporate Profit Growth to Slow in '07

NEW YORK (AP) -- The age of double-digit profit growth for American companies appears to be over.

Investors made some pretty hefty portfolio gains in 2006 amid the stock market's record run, a rally fed in large part by nearly five years of unprecedented earnings growth. But it's universally accepted on Wall Street that U.S. corporations won't be able to deliver in the new year the kind of results shareholders have become accustomed to.

"It had to end at some point," said Jack A. Ablin, chief investment officer at Harris Private Bank. "There is distrust associated with the high level of profits, especially when you see 10 percent profit margins. That's just unsustainable."

For the most part, growth in the Standard & Poor's 500 as an index closely mirrors that of corporate earnings. The index finished last year up 15.8 percent, while all the S&P 500 members posted an average 16.2 percent profit gain.

more...
http://biz.yahoo.com/ap/070105/wall_main.html?.v=1

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46. Freddie Mac Predicts 3Q, 4Q Losses

WASHINGTON (AP) -- Home-mortgage financier Freddie Mac said Friday it expects to report losses for the third and fourth quarters of 2006, citing interest rates declines.

The government-sponsored company, emerging from a multibillion-dollar accounting scandal, forecast a loss of about $550 million for the third quarter, compared with a profit of $880 million in the third quarter of 2005. During the most recent July-September period, long-term interest rates declined by about half a percentage point.

A $550 million loss for the third quarter would be in line with analysts' expectations. For the fourth quarter, Freddie Mac also expects to report a loss, which company officials did not specify. Financial results remain volatile from quarter to quarter, and likely will continue to be in the future, they said in a conference call with analysts.

Freddie Mac, the second-largest financier of home loans in the country, also estimated that its net income would be $2.5 billion for the first nine months of 2006, up from $1.4 billion for the same period in 2005.

more...
http://biz.yahoo.com/ap/070105/freddie_mac_outlook.html?.v=16

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47. Beer Volume Up for Anheuser-Busch

ST. LOUIS (AP) -- The nation's largest brewery sold more beer than ever in 2006.
Anheuser-Busch Cos. said Friday that U.S. shipments to wholesalers rose 1.2 percent to 102.3 million barrels last year, up from 101.1 barrels in 2005.

August Busch IV, president and chief executive officer of the St. Louis-based brewery, said the increase was due to efforts to grow core brands like Budweiser, the best-selling full-calorie beer, and Bud Light, the best-selling light beer. He also cited the addition of the Rolling Rock brands and the imports Grolsch and Tiger.

Wholesaler sales-to-retailers grew 1.1 percent for the full year and 1.6 percent in the fourth quarter. Complete quarter and full-year earnings information will be released Feb. 1.

more...
http://biz.yahoo.com/ap/070105/anheuser_busch.html?.v=2

[citizen snips]

48. Pediatrix Under Stock Options Scrutiny

FORT LAUDERDALE, Fla. (AP) -- Health care services provider Pediatrix Medical Group Inc. said Friday the U.S. Attorney's office in Miami is in the initial stages of an investigation into the company's stock options granting practices.

The company, which is working to complete an internal audit committee review of the historical option grants, provides contract management for hospital neonatal and pediatric intensive care units.

Pediatrix is one of at least 197 companies under options scrutiny. At issue is a practice known as backdating, in which options are issued retroactively to coincide with low points in the company's stock price, boosting value of execs' payouts. Backdating, while not necessarily illegal, must be disclosed to investors and accounted for properly.

Pediatrix said it plans to cooperate fully with the U.S. Attorney's office.

more...
http://biz.yahoo.com/ap/070105/pediatrix_options.html?.v=1

[citizen snips]

49. Goodyear Closing Texas Plant

NEW YORK (AP) -- Goodyear Tire & Rubber Co. said Friday that it plans to close its Tyler, Texas, facility in the first quarter of 2008.

Goodyear said in a filing with the Securities and Exchange Commission that the closure, which was negotiated as part of the company's recently reached pact with the United Steelworkers union, will result in charges of $155 million to $160 million.

The estimate includes non-cash charges of about $75 million in pension and retiree medical costs, about $35 million in accelerated depreciation and asset write-offs, and severance related and other cash charges of $45 million to $50 million.

Goodyear recorded $107 million of the charges in the third quarter and expects to record an additional charge of about $10 million in the fourth quarter.

more...
http://biz.yahoo.com/ap/070105/goodyear_plant_closure.html?.v=1

[citizen snips]

50. Hot Stocks of the Week: Sirius Shines

NEW YORK (AP) -- In a trading week abbreviated by the New Year's holiday and President Ford's funeral, shares of well-known companies dominated the markets.

On Wednesday, Sirius Satellite Radio Inc. took center stage as investors got a chance to respond to Tuesday's news that the broadcast home of Howard Stern topped more than 6 million subscribers, 82 percent more than it had the prior year.

The results were at the midpoint of the New York company's previous forecast, which it lowered in December.

The numbers fueled heavy trading, with about 92.2 million shares changing hands, nearly three times the high average share exchange. Shares gained 5.6 percent, to close Wednesday's Nasdaq session at $3.74. The stock added another 3 cents in a more typical session Thursday and another 3 cents Friday, in a busy session that featured news rival XM Satellite missed its subscriber target.

more...
http://biz.yahoo.com/ap/070105/hot_stocks_of_the_week_mover.html?.v=1