STOCK MARKET WATCH, Tuesday February 27

[ozymandius]

Tuesday February 27, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 692LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2255 DAYS
WHERE'S OSAMA BIN-LADEN? 1959 DAYS
DAYS SINCE ENRON COLLAPSE = 1919
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 9
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 February 26, 2007

Dow... 12,632.26 -15.22 (-0.12%)
Nasdaq... 2,504.52 -10.58 (-0.42%)
S&P 500... 1,449.37 -1.82 (-0.13%)
Gold future... 689.80 +3.10 (+0.45%)
30-Year Bond 4.73% -0.05 (-1.02%)
10-Yr Bond... 4.63% -0.05 (-1.00%)






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. Today's Market WrapUp

More Refineries or New Refineries, When and How?
BY ROB KIRBY

Oil, the stuff that cures the squeaky wheel – seems like the world can never get enough of the stuff. Furthermore, everyone seems to have their own spin on it. Take, for instance, this Frank O'Donnell piece published in June of 2006:

“It’s tempting to not to let the facts get in the way of a good story, but even the oil industry itself admits this issue is a red herring. For example, the National Petrochemical and Refiners Association conceded at a May 23 Senate hearing on price gouging that gasoline supplies were temporarily tight. But the oil industry lobby went on to note that:

This situation will ultimately be addressed through announced additions to U.S. refinery capacity, estimated at 1.4 to 2.0 million barrels per day. This is an 8-11percent increase in U.S. capacity, which should be in place by 2010 at the latest…. over the past 10 years, domestic refining has increased by an average of 177,000 barrels per day of production each year or the equivalent of building one new, larger than average refinery each year. This fact should assuage some concerns about the fact that no new grassroots refinery has been built in the U.S. in over 30 years.

Indeed, at a Senate hearing last year, BP’s chief executive officer explained that “ margins over the last 10 to 15 years have not been high enough on average to justify building a new refinery.” And in a recent closed-door briefing with congressional aides, an Exxon Mobil official said that company foresees no need to build new refineries at least through the year 2030.”

While Frank O’Donnell just happens to be the president of Clean Air Watch, self described as being a non-partisan / non-profit organization – let’s look at some of the hard data contained within -- namely, the claim that domestic refining has increased 177,000 barrels per day, per year - over the past 10 years.

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

[Demeter]

16. Excellent Article! But then, it's Rob Kirby!

Thanks for the link, I've got the site bookmarked now.

[ozymandius]

2. Today's Reports

8:30 AM Durable Orders Jan
Briefing Forecast -3.0%
Market Expects -3.0%
Prior 2.9%

10:00 AM Consumer Confidence Feb
Briefing Forecast 109.5
Market Expects 109.0
Prior 110.3

10:00 AM Existing Home Sales Jan
Briefing Forecast 6.30M
Market Expects 6.24M
Prior 6.22M

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

[UpInArms]

18. US Jan Durable Goods down 7.8%

17. U.S. Dec durable orders revised to rise 2.8% vs 2.9%
8:30 AM ET, Feb 27, 2007 - 15 minutes ago

18. U.S. Jan. durable-goods inventories up 0.3%
8:30 AM ET, Feb 27, 2007 - 15 minutes ago

19. U.S. Jan. durable-goods shipments rise 0.2%
8:30 AM ET, Feb 27, 2007 - 15 minutes ago

20. U.S. Jan. durable ex-trans biggest drop since July 2005-
8:30 AM ET, Feb 27, 2007 - 15 minutes ago

21. U.S. Jan. durable-goods orders ex-transportation down 3.1%
8:30 AM ET, Feb 27, 2007 - 21 minutes ago

22. U.S. Jan. durable-goods orders down 7.8% vs. 5.5% expected
8:30 AM ET, Feb 27, 2007 - 21 minutes ago

[UpInArms]

26. 10:00 reports

13. Better labor market behind confidence rise, Conference Board
10:00 AM ET, Feb 27, 2007 - 15 minutes ago

14. U.S. Feb. inflation expectations fall to 4.6 vs 4.7 in Jan.
10:00 AM ET, Feb 27, 2007 - 15 minutes ago

15. U.S. Feb. consumer confidence highest since pre-9/11
10:00 AM ET, Feb 27, 2007 - 15 minutes ago

16. U.S. Feb. consumer confidence rises to 112.5 vs 110.2 in Jan
10:00 AM ET, Feb 27, 2007 - 15 minutes ago

17. U.S. Jan. existing-home sales down 4.3% year-on-year
10:00 AM ET, Feb 27, 2007 - 15 minutes ago

18. U.S. Jan. existing-home sales 'surprisingly strong': NAR
10:00 AM ET, Feb 27, 2007 - 15 minutes ago

19. U.S. Jan. existing-home median price off 3.1% year-on-year
10:00 AM ET, Feb 27, 2007 - 15 minutes ago

20. U.S. Jan. existing-home inventories up 2.9% to 3.55 mln
10:00 AM ET, Feb 27, 2007 - 15 minutes ago

21. U.S. Jan. existing-home sales up 3% to 6.46 mln vs. 6.27 mln
10:00 AM ET, Feb 27, 2007 - 15 minutes ago

[ozymandius]

3. Oil prices steady at $61 a barrel

SINGAPORE - Oil prices were steady in Asian trading Tuesday amid forecasts that data due the following day will show a decline in U.S. gasoline and distillate stockpiles.

Prices were also supported by worries over tensions between Western powers and
Iran, OPEC's No. 2 supplier, and snowy weather in the U.S. Northeast, the country's largest heating oil market.

-cut-

Analysts are expecting a U.S. government report due Wednesday to say both distillate and gasoline stockpiles fell in the week ended Feb. 23.

Distillate stockpiles, which include heating oil and diesel fuel, are likely to fall by 2.6 million barrels in the report by the U.S. Energy Department, according to a Dow Jones Newswires survey of analysts.

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

[ozymandius]

4. Venezuela to seize foreign oil projects

CARACAS, Venezuela - President Hugo Chavez ordered by decree on Monday the takeover of oil projects run by foreign oil companies in Venezuela's Orinoco River region.

Chavez had previously announced the government's intention to take a majority stake by May 1 in four heavy oil-upgrading projects run by British Petroleum PLC, Exxon Mobil Corp., Chevron Corp., ConocoPhillips Co., Total SA and Statoil ASA.

He said Monday that has decreed a law to proceed with the nationalizations that will see state oil company Petroleos de Venezuela SA, or PDVSA, taking at least a 60 percent stake in the projects.

"The privatization of oil in Venezuela has come to an end," he said on his weekday radio show, "Hello, President." "This marks the true nationalization of oil in Venezuela."

http://news.yahoo.com/s/ap/20070227/ap_on_re_la_am_ca/venezuela_oil_nationalization_3

[burf]

15. Now it makes sense

why CNN ran another report on Chavez last evening on Lou Dobbs program. Keep the ball rolling.

[Roland99]

162. Is that why gas shot up $0.25 here? Averaging $2.56-$2.59/gal now.

4 weeks ago, the average was about $1.90.

A $0.65 increase in one month.

34% jump.

[Ghost Dog]

37. UPDATE 7-Oil bounces back after China-led sell-off

http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=0b1c6e00-c33b-40c8-a8b0-274e86c012ab

LONDON, Feb 27 (Reuters) - Oil prices rose on Tuesday to the highest level this year, extending four straight days of gains as technical strength offset the impact of a deep fall on China's stock market.

By 1636 GMT U.S. crude <CLc1> was 47 cents higher at $61.86 a barrel, just off an intraday peak of $62.14 and well clear of a session low of $60.06.

London Brent crude <LCOc1> was 41 cents higher at $61.74.

U.S. crude has achieved a higher close for the past four sessions -- the first time it has done so this year.

Technical analysts, who study past price moves to gauge future direction, said the market had been poised for a short-lived correction lower, but remained strong.

"Bullish signals are lining up," said Barclays Capital technical analysts.

Selling was given impetus early in the session by news China's main stock index the Shanghai Composite <.SSEC> had fallen by nearly nine percent, its biggest drop in a decade, ahead of a parliament session next week rumoured to be considering higher interest rates to cool economic growth.

The sell-off triggered falls on other equity markets and across the commodities complex.

But analysts cautioned against calling the end of Asian or world growth for commodities and said the market had sold off too sharply.

/..

[ozymandius]

5. Chinese stock prices drop nearly 9 pct.

SHANGHAI, China - Shanghai's benchmark stock index plunged nearly 9 percent on Tuesday, its biggest drop in more than 10 years, as investors unloaded stocks to lock in profits after recent gains.

The Shanghai Composite Index tumbled 8.8 percent to close at 2.771.79, its largest single-day decline since it fell 9.4 percent on Feb. 18, 1997, just after the death of Communist Party elder Deng Xiaoping.

The Shanghai index had gained 1.4 percent on Monday to 3,040.60, extending a spate of record high closes.

-cut-

Chinese share prices doubled last year as investors piled into the market following the completion of shareholding reforms that helped to reduce worries over a potential flood of shares entering the market.

http://news.yahoo.com/s/ap/20070227/ap_on_bi_ge/china_markets

[Lucky Luciano]

12. Credit markets reacting to this big time!

Some really wild stuff happening in the credit markets right now...wild wild stuff....the HY index tracking the credit spreads of 100 high yield names widened from 219 to 237 bps or so - this is a big bear move for an index....off to the races. Let the games begin.

Gonna be a fun fun day!!

All market participants should try to do a little analysis of the credits of companies they are interested in. Credit spread info can be seen at http://www.markit.com - of course this will only have limited data for nonsubscribers, but it is worth checking if only for index levels.

[UpInArms]

14. Wall Street to open down after China shares plunge

http://news.yahoo.com/s/nm/20070227/bs_nm/markets_stocks_us_europe_dc

LONDON (Reuters) - Wall Street is set to open down on Tuesday with investors jittery after shares plunged in China and awaiting key clues about the strength of U.S. consumption from economic data and corporate earnings.

U.S. stocks could be ruffled if funds start to pull money out of emerging market equities after the Shanghai Composite Index (^SSEC - news) fell nearly nine percent, its steepest decline in a decade.

Another concern for investors will be oil prices, which have knocked Wall Street over the last week and remain above $61 on Tuesday on forecasts for a drop in U.S. fuel stocks and escalating
Iran nuclear tensions.

"This should be a warning shot across the bow that if you haven't taken some profits, you might want to do that," said Steve Previs of Jefferies International.

U.S. stock futures suggested the major indexes would all open weaker. At 1140 GMT Dow Jones industrial average futures , S&P 500 futures and Nasdaq futures were down 0.5-0.9 percent.

...more...

[citizen snips]

56. Europe Markets End Lower on China Slide

LONDON (AP) -- European stocks fell Tuesday as the spillover from the plunge in China hit markets across the continent, led by shares of major mining companies that do business in Asia.

The decline in the Shanghai index, the biggest since February 1997, was a result of what analysts said were efforts by investors to cash in on big gains over the last 20 months and avoid any government attempts to cool the markets after the index closed above 3,000 for the first time a day earlier.

Germany's DAX DAX Xetra 30 closed down 3 percent at 6,819.65, while the French CAC-40 index declined 3 percent to 5,588.39 and the U.K.'s FTSE 100 index surrendered 2.3 percent to 6,286.10.

Phillip Shaw, chief economist at Investec Securities, said the stock market decline in China was the catalyst for the European selloff but was surprised by the reaction of European investors.

more...
http://biz.yahoo.com/ap/070227/european_stock_roundup.html?.v=1

[ozymandius]

6. Gap Will Close Forth & Towne Chain After 18 Months (Update4)

Feb. 26 (Bloomberg) -- Gap Inc., the biggest U.S. clothing retailer, plans to close its 18-month-old Forth & Towne chain to focus on its struggling namesake and Old Navy shops.

The 19 Forth & Towne stores, which target women 35 and older, will be shut by end-June, the company said today in a statement. The chain employs 550 in cities including San Francisco and Atlanta, and the closures will cost the company $40 million in the first and second quarters before taxes.

The closure is Gap's first strategy change since January's departure of Chief Executive Officer Paul Pressler following five quarters profit declines. Interim CEO Robert Fisher will disclose this week how the company plans to revive Gap and Old Navy, which represented 85 percent of last year's sales.

-cut-

Gap started Forth & Towne in August 2005 under Pressler in an attempt to compete with Chico's FAS Inc. and Federated Department Stores Inc.'s Macy's chain. Gap had planned to have 30 stores by this year.

http://www.bloomberg.com/apps/news?pid=20601087&sid=abkoz6Zv3CBU&refer=home

[OrangeCountyDemocrat]

9. Paul Pressler Is A Repeated LOSER!

How do Idiots like him, get these high paying gigs? What did he do in his life to deserve these high paying positions, with these great salaries?

He manages to just screw up consistently, and then bonuses himself out at the end.

I go to Disneyland here in CA quite often, and I remember how much the Disney fans HATED him while he was in charge of the parks. People were literally cheering when he left Disney to pursue his venture at the Gap, along with Cynthia....can't recall her last name.

So, now he's managed to cause consecutive problems at different companies within the past 3-4 years. I'm sure he'll be rewarded with some high paying post at another company, which he'll eventually also cause damage to, and parachute out with some kind of lump sum payoff.

[ozymandius]

11. There is a tiny coterie of executives that takes turns mis-managing.

From a broadcaster's perspective (my former profession) the same rules apply. Rick Kaplan - former CNN chief - drove that company into the ground and was rewarded a golden parachute for his shitty performance. I think he's now at MSNBC doing the same. CNN has had a string of craptastic chief executives. Often I imagine these people sitting around a bar, discussing who will leave one company to mis-manage another.

[AnneD]

29. Morning Marketeers...

:donut: And lurkers. You bring up an excellent point. I don't know per say when we started getting sorry ass-ed 'captains of industry', but I noticed it around the time T Boone Pickens came on the scene.

I worked at Gulf Oil and the time. I was dumbfounded that he could actually borrow money to take over this large co. in order to basically destroy it. All of the workers were opposed (and hey, we are stockholders too). In the end we got sold to Chevron, folks got laid off, and stuff got sold. I foolishly thought that managers had a personal interest in their companies and took pride in them and wanted to build them up. I thought that Wall Street and financial companies loved to invest their money in a well run, profitable company. Silly me, that was such a 50's business mentality....

The managers of companies today are nothing more than glorified pimps, whoring their companies in the marketplace. They make money off of the prostituted companies, then sell them to another pimp-manager when they tire of the company. The workers are nothing more than bastard children.

Sorry for the crude language and metaphors, but that's the sleazy business that I see it as today. It is had to find integrity in the marketplace. They make the money changers at the temple look like boy scouts and they do more damage to more innocent people than they should morally should. Now I guess I need some coffee to calm down.

Happy hunting and watch out for the bears.

[DemReadingDU]

38. Big Business is sleazy

Excellent analogy!

[PassingFair]

121. Just like school superintendents!

:evilgrin:

Maybe they should crossbreed!

[AnneD]

Not only would the children be left behind...

but so would the workers........
OMG, IT'S ALREADY HAPPENED. GENETIC MUTATIONS.

[ozymandius]

7. Toyota to build SUV plant in Mississippi -paper

TOKYO, Feb 27 (Reuters) - Toyota Motor Corp. (7203.T: Quote, NEWS , Research) plans to build a sport utility vehicle plant in the U.S. state of Mississippi for around 100 billion yen ($830 million), a newspaper reported on Tuesday, the latest sign of its pressing need for capacity to keep up with booming demand.

The plant, to come on line in 2009, will build the Highlander model and is set to have an annual production capacity of 150,000 units, the Nikkei business daily paper said.

A separate report from Kyodo news agency put the investment figure at 200 billion yen and output capacity at 200,000 units a year. The plant will create about 2,000 new jobs, Kyodo also said, citing sources familiar with the matter.

http://today.reuters.com/news/articleinvesting.aspx?view=CN&storyID=2007-02-27T093828Z_01_T232139_RTRIDST_0_TOYOTA-US-PLANT-UPDATE-5.XML&rpc=66&type=qcna

[ozymandius]

8. GM, Ford to see escalating health-care costs in 2007 - Fitch

In a report issued Monday, credit-grading firm Fitch Ratings says health-care costs as a portion of each vehicle built in the U.S. are set to rise 11% on average this year from 2005 levels for GM and Ford. The punishing increase could heighten urgency surrounding medical expenses, which are said to be Detroit's primary cost disadvantage compared with Asian producers. Health care promises to be the top issue in UAW labor negotiations that kick off in less than five months, Fitch says.

Detroit's Big Three are struggling to restore profitability as they lose market share to non-U.S. manufacturers and battle escalating costs in numerous corners of their business.

Fitch estimates GM will spend $1,783 in cash health-care expenses per car this year, while Ford is seen dishing out $1,064. GM's costs are up 7% from the $1,660 a car it dished out in 2005, while Ford's costs are seen skyrocketing 20% from 2005's $888. In 2008, Ford's obligations will shrink nearly $100 compared with 2007 thanks to a recent blue-collar attrition plan that gave younger employees a buyout if those employees let Ford cancel future retiree pension and health-care obligations. GM's costs will jump because its plan was designed to only "nudge workers into retirement."

-cut-

Detroit's health-care burden is under fresh scrutiny as a barrage of reports related to DaimlerChrysler AG's (DCX) potential sale of Chrysler Group continues to emerge. Chrysler faces $21.1 billion in future retiree health-care liabilities, according to Merrill Lynch, and the majority of the obligation is not funded. The massive liability is one of the key hurdles DaimlerChrysler is seen facing as it tries to sell its U.S. unit.

http://www.marketwatch.com/news/story/gm-ford-see-escalating-health-care/story.aspx?guid=%7BF99E07A3-06BD-464F-ABB6-6A7240D0645E%7D

[Demeter]

17. Yes, Well, Have They Considered Supporting Universal, Single Payer Health Care?

What? What did I Say?

Enough tomatoes--I hate tomatoes!

[Lucky Luciano]

19. At this point, they probably do...

It would solve a lot of their problems....Why not start a campaign to get them to think about if they have not already thought about it. It would be good to have a big company lobby for that!

[roamer65]

64. They're pretty much for single payor, socialized medicine I have heard.

They have Canadian plants and are well aware of the cost differential between the US and Canada on health care. Toyota set up shop and is expanding in Ontario because of the lower healthcare costs.

[ozymandius]

10. Navistar stops production of Ford diesel engines

DETROIT (MarketWatch) -- Navistar International Corp. (NAVZ) said Monday that it will suspend production of a critical line of diesel engines that it supplies to Ford Motor Co. (F) for use in the auto maker's F-Series Super Duty pickup trucks.

The move is the latest escalation in an ongoing dispute between Ford and Navistar and raises the possibility of disrupting production of the Super Duty trucks, which are highly profitable vehicles for the struggling auto maker.

Ford, which is restructuring its North American operations after several quarters of heavy losses, said it has enough inventory for the near term.

-cut-

On Monday, Warrenville, Ill.-based Navistar said in a press release that it is halting production of the Power Stroke diesel engine. The engine is fitted in the majority of Super Duty trucks that Ford sells in the U.S. The truck has traditionally represented at least 300,000 vehicles worth of annual volume for Ford, and 70% of Super Duty trucks carry diesel engines.

http://www.marketwatch.com/news/story/navistar-stops-production-ford-diesel/story.aspx?guid=%7BF047017C-5056-4950-9A08-20B77299F528%7D

[UpInArms]

13. dollar watch

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

Last trade 83.65 Change -0.28 (-0.33%)

Dollar Mixed Before Data Floods The Wires

http://www.dailyfx.com/story/currency/eur_news/Dollar_Mixed_Before_Data_Floods_1172515975014.html

Starting this week off just as the last one ended, dollar traders found few fundamentals to make a market on. Instead, looming geopolitical risk has helped depress greenback volatility ahead of a string of indicators that are expected to offer less than impressive results.

For price action, EURUSD offered the only genuine dollar bullish move since the Asian session. From an overnight test right on the edge of 1.32, the pair pulled back all the way to 1.3150. The euro’s close cousin, the Swiss franc, put up a better fight with the pair trading in a 40 point range above 1.2295 for most of the day. The GBPUSD pairing has stuck to a 20-55 point range since the New York open on Friday, with resistance sited at 1.9665. Finally, yen bidding pushed USDJPY another 70 points lower to 120.35, though a sharp ‘v-bottom’ suggests the move lower has been put off for now.

Fundamentals were in short supply Monday morning, with many of the same influences from Friday holding over to today. The one fresh event for the market to incorporate into the dollar’s value was Federal Reserve member Bies’ speech to the Global Association of Risk Professionals on Basel II. The board member took the conservative line on a banking agreement that would require a higher capital minimum to cover default risk on some portfolios. She said that regulators were considering postponing the risk part of the agreement until 2009. While on the topic, Bies touched on the corrosion in the sub-prime mortgage market, which has added to the dollar’s ailment in recent weeks. However, she too was optimistic on this front saying adjustable rate, sub-prime mortgages accounted for a very small slice of the entire market. All in all, news sources reported few comments pertaining to monetary policy or the overall health of the economy, suggesting Bies will not attempt to jar the FX market before retiring at the end of March.

For the rest of the market, Iran and crude oil were once again the top headlines flashing across screens. Last week, the UN’s deadline for Iran to halt its uranium enrichment efforts expired without the Western world’s desired results. Since then there have been few official comments to suggest where both parties will go from here. However, there is considerable conjecture. Media outlets have easily satiated the quiet uncertainty with Iranian President Mahmoud Ahmadinejad’s comments that the nation’s atomic program has no brakes or reverse gear. While a direct impact on the dollar is not crystal clear, the correlation for crude and gold was. Crude has easily cleared $60 and $61 per barrel with few signs of slowing. Looking ahead, event-driven moves will be back on the menu as soon as tomorrow. Durable good orders for January will start the New York session off at 13:30 GMT with a negative consensus preparing traders for a weak turn. A little later in the day, existing home sales, the Conference Board’s consumer confidence survey and the Richmond Fed Reserve’s manufacturing survey will compete for the market’s attention.

...more...

Japanese Yen Rallies on Unwinding Carry Trades; Dollar Down and Out

http://www.dailyfx.com/story/dailyfx_reports/daily_brief/Japanese_Yen_Rallies_on_Unwinding_1172578781313.html

The markets have shifted in a big way over the course of Asian and early European trading today as the unwinding of carry trades have paced the Japanese Yen’s rally for the second day in a row while the US Dollar has plummeted on mounting global risks as a UN conference to discuss possible sanctions against Iran started yesterday.

Although the 100 point drop in USDJPY to the 119.50 level is nothing to scoff at, NZDJPY has precipitously plunged nearly 2 percent from yesterday’s New York close to a low of 84.17 as traders show a material deleveraging theme. Adding evidence to this idea is equity market action, which have taken a severe hit in Asia with China’s Shanghai Composite index down 9 percent – the sharpest single-session fall in 10 years – which has clearly shaken European traders a bit, sending the FTSE 100, Xetra Dax, and CAC 40 all down 1 percent by the London afternoon.

In economic news, the February reading of retail PMI for the Euro-zone surprisingly rose to a reading of 49.8 from 47.9 the month prior. The figure remains weighed down by Germany’s contribution, which was well below 50 at 45.0 – indicating contraction in the sector – while the readings out of France and Italy posted at 54.7 and 50.4, respectively. German PMI did manage to rise from the month prior, signaling that the VAT hike to 19 percent may be having less of an impact on spending. Meanwhile, M3 money supply for the Euro-zone unexpectedly edged up to 9.8 percent in January – just under a sixteen year high – from 9.7 percent. Estimates had been for a dip in the annual rate to 9.5 percent and the acceleration will underpin arguments for a rate hike by the European Central Bank in March, as money supply growth has been a major inflation concern cited by the central bank. However, 3.75 percent may cap ECB rates for much of 2007, as price growth has remained fairly tepid and the central bank will likely favor a wait-and-see approach in order to gauge the effect of higher rates on consumers, businesses, and the economy as a whole.

The US calendar is fully packed today with durable goods, existing home sales and consumer confidence all on tap. The broad consensus is that the data will not bode particularly well for the greenback, as a drop in Boeing orders will likely drag durable goods down while oil back above $60/bbl should weigh on consumer confidence. Home sales remain the wild card, however, as the stability of the housing market may be questionable. Nevertheless, the US session should be an exciting one as traders attempt to price the Federal Reserve’s next move.

...more...

[Ghost Dog]

28. UPDATE 2-Gold pauses for breath, off 9-month high

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=goldMktRpt&storyid=2007-02-27T110222Z_01_L27437296_RTRIDST_0_MARKETS-PRECIOUS-UPDATE-2.XML

LONDON, Feb 27 (Reuters) - Gold slipped as the market took a breather from its latest rally on Tuesday but was within sight of its highest level in nine months, supported by firmer oil prices, the weak dollar and geopolitical tensions.

Analysts said gold had the potential for a charge towards $700 -- a level last seen in May 2006 -- although it may first need to retrace as speculators bought heavily in recent weeks.
...

"The market looks overbought as recent rises have been a bit too rapid. Short-term players, who are keen to lock in their profits, are doing so now," said Akira Doi, director at Daiichi Commodities Co. Ltd.

"All the focus is on whether cash gold could touch $700. Sentiment for commodities as a whole is strong as funds are shifting broadly into oil and copper," he said.

/...

[Ghost Dog]

31. Gold, silver futures reflect broad metals decline

http://www.marketwatch.com/news/story/gold-silver-reflect-broad-metals/story.aspx?guid=%7B6FFCBD87%2D0192%2D459E%2DB254%2D9D39277EBD16%7D
Last Update: 10:29 AM ET Feb 27, 2007

SAN FRANCISCO (MarketWatch) -- Gold futures dropped as much as $12 an ounce and silver and copper futures fell to three-session lows, pressured by falling oil prices as well as hints that China may tighten monetary policy, which could reduce demand expectations for commodities.

Gold futures for April delivery were last down $9.20 at $680.60 an ounce after tapping a low of $677.50.

On Monday, the contract closed at a seven-month high as continued defiance by Iran over its nuclear program underscored the metal's safe-haven appeal. Prices had gained $6.80 over the past two sessions.
May silver also dropped 2.8%, or 41.2 cents, to $14.42 an ounce and May copper lost 2.1%, or 6 cents to stand at $2.81 a pound.

Rounding out the metals action, June palladium fell by $5.50 to $356 an ounce and April platinum traded $2 lower at $1,240 an ounce.

China was a key theme Tuesday after the Shanghai market closed down almost 9% overnight, its biggest single day decline in a decade. Concern that the government is planning restrictive measures to address fears of a bubble in the stock market and hints from the head of the central bank that it may tighten policy triggered the move.

Traders are concerned that measures that slow the Chinese economy will reduce demand for metals.

/...

[Ghost Dog]

35. Gold futures turn higher as oil prices recover

http://www.marketwatch.com/news/story/gold-futures-turn-higher-oil/story.aspx?guid=%7BF080AE07%2D19AB%2D4901%2D8A91%2D535E12ACD909%7D&tool=1&dist=bigcharts&
Last Update: 11:53 AM ET Feb 27, 2007

SAN FRANCISCO (MarketWatch) -- April gold was last up $2 at $691.80 an ounce after reaching a fresh seven-month, intraday high of $692.50. Prices recovered from earlier declines as oil prices moved up ahead of Wednesday's U.S. supply data. May silver pared losses to trade at $14.79 an ounce, down 4.2 cents after an earlier low of $14.42.

/.

[Ghost Dog]

30. Yen Gains Most in 10 Months as Investors Unwind Their Bets

http://www.bloomberg.com/apps/news?pid=20601083&sid=aHypgSwXVrXY&refer=currency

Feb. 27 (Bloomberg) -- The yen rose the most in more than 10 months against the dollar and advanced from a record low versus the euro as investors unwound trades betting on a decline in the currency.

Japan's yen also gained against the British pound and the Canadian dollar after International Monetary Fund Managing Director Rodrigo de Rato said carry trades, where investors borrow in Japan and buy higher-yielding assets, may cause ``exchange-rate misalignments.'' Emerging market stocks slumped and the dollar extended losses after a report showed orders for durable goods dropped.

``There is a perfect storm brewing against yen carry trade,'' said Paresh Upadhyaya, who helps manage $29 billion in currency assets at Putnam Investments in Boston. ``The yen has further scope to appreciate as people cut back their short yen positions.'' A short position is a bet on a currency's decline.

Japan's currency climbed 1.5 percent, the most since a 1.7 percent gain on April 24, to 119.07 against the dollar at 10:22 a.m. in New York, from 120.66 yesterday. The yen touched 118.69 per dollar, the strongest since Jan. 9. It also gained to 157.50 per euro from 159.13, rebounding from an all-time low of 159.65 on Feb. 23.

The Swiss franc, another so-called funding currency for the carry trade, also rallied against the dollar, euro, pound and Australia's currency.

/...

[Ghost Dog]

32. FOREX-Dollar falls on weak durables, rising risk aversion

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=usDollarRpt&storyID=2007-02-27T153851Z_01_N27378801_RTRIDST_0_MARKETS-FOREX-UPDATE-9.XML
Tue Feb 27, 2007 3:39 PM GMT

NEW YORK, Feb 27 (Reuters) - The dollar fell sharply against the yen and hit a two-month low versus the euro on Tuesday as soft U.S. economic data, a plunge in global stocks and growing tensions with Iran led investors to take some risk off the table.

The dollar steadied a little after reports showed that U.S. existing home sales rose at a faster-than-expected pace in January and consumer confidence edged higher in February.

But the greenback was still broadly lower against major currencies after an earlier report of a sharp decline in U.S. durable goods orders in January. That added to speculation the Federal Reserve may cut interest rates to shore up a slowing economy.

The dollar was also under pressure from worries about increasing defaults among high-risk borrowers in U.S. subprime mortgages, a plunge in Chinese stock prices and tensions with Iran, which have made investors wary of taking on risk.

"The dollar will continue to sell off, especially with the unwinding of the carry trades," said Firas Askari, head of foreign exchange trading at BMO Capital Markets in Toronto.

The dollar's losses were most pronounced against the yen, which surged across the board as some speculators unwound carry trades, in which they had borrowed cheap in yen to invest in higher-yielding currencies such as the dollar or sterling.

The euro <EUR=> was trading at $1.3230, up 0.35 percent from Monday and not far short of a 2-month high of $1.3250 hit earlier in the session.

/...

[Ghost Dog]

138. FOREX-Yen hovers near 10-wk highs, carry trades unwound

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070227:MTFH98703_2007-02-27_23-44-34_T262034&type=comktNews&rpc=44
Tue Feb 27, 2007 6:44pm ET

TOKYO, Feb 28 (Reuters) - The yen held near 10-week highs against the dollar on Wednesday after logging its biggest daily jump in a year the previous session as investors unwound risky trades on fears of rising volatility in financial markets. A tumble in global stock prices including the biggest daily fall in Chinese stocks prices in a decade, soft U.S. economic data and growing tensions with Iran jolted investors from complacency and prompted them to cut exposure to risk.

"There was a sharp decline in equities markets such as in China.... For speculators, when things fall into minus this tends to have a big impact on other positions as well," said Shuichi Kanehira, senior vice president at Mizuho Corporate Bank.

The yen felt the brunt of the impact and rallied across the board, given the popularity of carry trades in which investors had sold yen to invest in higher-yielding currencies.

"To put it simply, it was position adjustment of an intense nature," Kanehira said. The dollar stood at 118.11 yen <JPY=> as of 2338 GMT after falling to as low as 117.50 yen on electronic trading platform EBS on Tuesday, the lowest level since Dec. 15.

The yen rallied more than 2 percent against the dollar on Tuesday, its biggest daily jump in a year. The yen also jumped against the euro, sterling, Australian dollar and New Zealand dollar.

The euro stood at 156.30 yen <EURJPY=R>, up slightly from around 156.20 yen in late U.S. trading on Tuesday.

Against the dollar, the euro was slightly lower at $1.3230 <EUR=>, but still near a two-month high of $1.3260 hit on Tuesday.

Demand for the yen accelerated on Tuesday after a report showed an unexpectedly sharp drop in U.S. durable goods orders in January, adding to speculation the Federal Reserve may cut interest rates later this year to prop up a slowing economy.

/...

[Ghost Dog]

33. Dollar index 83.52 (-0.49%)

[Ghost Dog]

129. Canada dollar falls on commodity fears, bonds up

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2007-02-27T223330Z_01_N27410146_RTRIDST_0_MARKETS-CANADA-DOLLAR-BONDS.XML

TORONTO, Feb 27 (Reuters) - The Canadian dollar fell hard versus the U.S. dollar on Tuesday, dropping to its lowest level in nearly a week, due mainly to concerns that commodity demand from China will slow down.

Government bonds charged higher given a combination of economic and geopolitical worries, while global stock markets sold off after a plunge in the Chinese stock market.

The Canadian dollar closed at C$1.1664 to the U.S. dollar, or 85.73 U.S. cents, down from C$1.1606, or 86.16 U.S. cents, at Monday's session close.

Much of the Canadian dollar's drop was pegged to a massive sell-off in Chinese stocks that sparked concerns about growth and commodity consumption in the Asian giant. The fall in the Chinese market, its biggest sell-off in a decade, came ahead of a parliamentary session next week rumored to be considering higher interest rates to cool Chinese economic growth.

A cooler economy in China, a major consumer of oil, copper and aluminum, could spell trouble a resource-linked Canadian dollar that has taken advantage of lofty commodity prices.

"I think it really is a fear story that is sending all sorts of volatility though the market right now," said Eric Lascelles, strategist at TD Securities. "There's just a huge amount of volatility out there and the Canadian dollar seems to be on the losing end of a fair bit of it here."

/...

[Ghost Dog]

133. Aussie dollar retreats as carry trades unwind

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070227:MTFH97902_2007-02-27_23-00-25_SYD143921&type=comktNews&rpc=44
Tue Feb 27, 2007 6:00pm ET

SYDNEY, Feb 28 (Reuters) - The Australian dollar retreated from an eight-week high on Wednesday, after investors lost their appetite for risk amid a sharp rise in volatility and a paring of yen carry trades, sparked by a big fall in Chinese stock prices.

The local currency fell by more than 1 percent against the U.S. currency in offshore trade on Tuesday and dropped by more than 3 percent against the yen. But the Aussie appeared to have found tentative support on Wednesday around the $0.7870 level.

/..

[Ghost Dog]

130. Watch on Swiss Franc (CHF), Pound Sterling (GBP)

Hmm. CHF certainly strengthened... Blair/Brown's £ Sterling looks hesitant, shifty, maybe somewhat guilty there, to my eye.

[UpInArms]

20. futures are foreboding and some blather

08. Nasdaq 100 futures down 30.25 at 1,807.50
9:07 AM ET, Feb 27, 2007 - 9 minutes ago

09. Dow industrials futures down 107 pts at 12,547
9:06 AM ET, Feb 27, 2007 - 10 minutes ago

10. S&P 500 futures down 14.90 at 1,437.70
9:06 AM ET, Feb 27, 2007 - 10 minutes ago

09:00 am : S&P futures vs fair value: -12.5. Nasdaq futures vs fair value: -27.0. Both the S&P 500 and Nasdaq 100 futures continue to languish at morning lows, setting the stage for the cash market to endure hefty losses at the onset of trading. The sell-off in the Chinese stock market overnight continues to exacerbate an already growing sense of worry that the easy money has been made and that the U.S. market is primed for a correction. Renewed geopolitical tensions and weak durable goods data supporting former Fed Chairman Greenspan's recent comments regarding the possibility of a recession this year certainly also aren't helping the bulls' argument that valuations remain attractive.

08:33 am : S&P futures vs fair value: -10.8. Nasdaq futures vs fair value: -22.0. Durable Orders plunged 7.8% in January (consensus -3.0%). Non-defense capital goods orders excluding transportation, which provide a clearer read on underlying business capital investment, fell 6.0%. Futures trade has slipped even further below fair value, still suggesting a disappointing start for stocks. Bonds, though, have strengthened, pushing the yield on the 10-yr note (+10/32) to 4.58%.

08:00 am : S&P futures vs fair value: -9.2. Nasdaq futures vs fair value: -18.0. Early indications are pointing to a sharply lower open for stocks. The bearish disposition is an offshoot of what transpired in foreign markets overnight. The Shanghai Composite Index, which has surged an astonishing 174% since mid-2005, plunged 8.8% -- the biggest one-day decline in 10 years. Worries the Chinese government may step up its efforts to curb speculative buying interest also weighed on Hong Kong's Hang Seng Index (-1.8%) while the three major European bourses are all down at least 1.6% each. A Taliban suicide bomber reportedly targeting U.S. Vice President Dick Cheney and killing at least 14 people near the main U.S. military base in Afghanistan has also exacerbated geopolitical tensions.

06:22 am : FTSE...6355.90...-78.80...-1.2%. DAX...6942.02...-85.57...-1.5%.

06:22 am : S&P futures vs fair value: -7.0. Nasdaq futures vs fair value: -9.8.

06:22 am : Nikkei...18119.92...-95.43...-0.5%. Hang Seng...20147.87...-360.08...-1.8%.

[UpInArms]

21. 9:33 EST and flying like a lead balloon

Dow 12,551.67 80.59 (0.64%)
Nasdaq 2,461.31 43.21 (1.73%)
S&P 500 1,437.27 12.10 (0.83%)
10-Yr Bond 4.587% 0.044

NYSE Volume 128,531,000
Nasdaq Volume 131,069,000

[UpInArms]

22. 9:44 EST lower numbers and blather

Dow 12,502.24 130.02 (1.03%)
Nasdaq 2,460.10 44.42 (1.77%)
S&P 500 1,432.33 17.04 (1.18%)
10-Yr Bond 4.591% 0.04

NYSE Volume 316,693,000
Nasdaq Volume 260,730,000

09:40 am : As expected, stocks open sharply lower as the knee-jerk reaction to the meltdown in China overnight makes it clear that the bullish sentiment behind a seven-month rally is losing steam. The Shanghai Composite Index, which surged an astonishing 127% in 2006 and is up 13% over the last six session, plunged 8.8% -- the biggest one-day decline in 10 years. Worries the Chinese government may step up its efforts to curb speculative buying interest have been attributed to the consolidation that has aggravated ongoing worries about overbought conditions and talks of a correction.

With geopolitical concerns returning to the forefront in recent days, an assassination attempt on U.S. Vice President Dick Cheney which reportedly killing up to 23 people near the main U.S. military base in Afghanistan has exacerbated such tensions. DJ30 -120.36 NASDAQ -50.04 SP500 -17.62 NASDAQ Vol 112 mln NYSE Vol 60 mln

[UpInArms]

23. an assassination attempt on U.S. Vice President Dick Cheney

hmmmm......

[BenDavid]

24. Dow in for a bumpy ride

today with the Chinese market losing about 10% and bad numbers from the durable good section. At 9 a m central the market is down 124.76

[Ghost Dog]

25. Economic fears, NY pound European shares lower

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=londonMktRpt&storyID=2007-02-27T144218Z_01_L27370575_RTRIDST_0_MARKETS-EUROPE-STOCKS-URGENT.XML
Tue Feb 27, 2007 2:42 PM GMT

PARIS, Feb 27 (Reuters) - European shares hit five-week lows on Tuesday as worries about slower economic growth in the United States and China pushed investors to sell shares in economically-sensitive sectors such as mining and construction.

The FTSEurofirst 300 <.FTEU3> index of top European stocks accelerated losses to 2.8 percent at 1,507.02 points, its lowest intraday level since Jan. 23, shortly after Wall Street's opening dip and as stock indices in London, Frankfurt, Paris and Zurich fell between 2.4 percent and 3.2 percent.

fly by...

[Ghost Dog]

27. Shares slide on fears of global slowdown

http://www.ft.com/cms/s/399a04c8-c643-11db-be1a-000b5df10621.html

Global stocks slumped on Tuesday, with US and European markets driven sharply lower after Chinese equities plunged from record levels on fears of overvaluation, slowing growth and tensions over Iran.
...

In Europe, the FTSE Eurofirst 300 down 2.5 per cent to 1,511.09, Frankfurt’s Xetra Dax shed 2.2 per cent to 6,874.68 and the CAC 40 in Paris slid 2.4 per cent to 5,623.19. In London, the FTSE 100 was lower by 143 points, or 2.2 per cent, at 6,291.7 by mid afternoon with all but one stock trading in negative territory. The heavyweight commodity stocks that have dictated the market’s direction were hit by concerns over a potential ‘windfall’ tax in South Africa.

Earlier, China’s Shanghai Composite index tumbled nearly 9 per cent to 2,771.79, its biggest single-session fall in 10 years. The benchmark Chinese mainland index had hit a record high in the previous session.
...

The Hang Seng index in Hong Kong was down 1.8 per cent to 20,147.87, while Tokyo’s Nikkei 225 Average lost 0.5 per cent to 18,119.92.
...

Adding to the downbeat sentiment, former Federal Reserve chairman Alan Greenspan said on Monday that it was “possible” the US economy may fall into recession later this year. Greenpuke!
...

Rising aversion to other risky strategies, such as the carry trade – where investors sell low-yielding currencies to invest in higher-yielding assets – helped fuel gains for both the Swiss franc and the Japanese yen. The Swiss franc, which has traditionally been a safe-haven asset at times of heightened risk gained 0.4 per cent against the dollar to SFr1.2244. The yen gained 1 per cent to $1.1938 against the dollar and by 0.8 per cent to $1.5765 against the euro.

/...

[BluePatriot]

34. Hi everybody

I plan to lurk around this thread today -- is the Chinese market crashing? Yikes. I wonder what ramifications that would have in general? A preemptive thanks to all the great, detailed info always in this thread.

[AnneD]

39. Hi BluePatriot,

:hi: you can tell when the markets get crazy, we have more folks lurking in the shadows. This is a friendly group so hang around as often as you can. It is a great place to learn and the markets do effect politics and your daily life-so it is worth checking on a daily bases. We get great tid bits from all kinds of places.

Yeah, the market is not looking like a fun place. Guess we may not get our cake and a pony ride today.
Welcome

[saigon68]

36. 12:15 PM ET

Dow 12,447.52 Down 184.74 (1.46%)
Nasdaq 2,449.48 Down 55.04 (2.20%)
S&P 500 1,426.32 Down 23.05 (1.59%)

[Lucky Luciano]

40. VIX at 13.7 - Volatility Index

That is +2.55 for the day - a big move - it had languished at 10ish for a very long time boring options traders to tears....
Now, they are a lot less bored!

Typically a big upspike in the VIX is a bearish signal - like today.

What a day! My best day of the yezar after a dull February.

[Lucky Luciano]

41. VIX now at 14.6

There's blood in the streets, it's up to my ankles
She came
Blood in the streets, it's up to my knee
She came
Blood in the streets in the town of Chicago
She came
Blood on the rise, it's following me
Think about the break of day

She came and then she drove away
Sunlight in her hair

She came
Blood in the streets runs a river of sadness
She came
Blood in the streets it's up to my thigh
She came
Yeah the river runs red down the legs of a city
She came
The women are crying red rivers of weepin'

She came into town and then she drove away
Sunlight in her hair

Indians scattered on dawn's highway bleeding
Ghosts crowd the young child's fragile eggshell mind

Blood in the streets in the town of New Haven
Blood stains the roofs and the palm trees of Venice
Blood in my love in the terrible summer
Bloody red sun of Phantastic L.A.

Blood screams her brain as they chop off her fingers
Blood will be born in the birth of a nation
Blood is the rose of mysterious union

There's blood in the streets, it's up to my ankles
Blood in the streets, it's up to my knee
Blood in the streets in the town of Chicago
Blood on the rise, it's following me

[Buttercup McToots]

42. CNBC

hysteria is in the air...

[Lucky Luciano]

48. VIX at 15.9...that is +4.75...WOW!!!! nt

[Lucky Luciano]

68. VIX report.....VIX at 18.65 +7.5....insane!!!!!!!!!!!!!!! nt

[citizen snips]

43. Dow Industrials Plunge More Than 200

NEW YORK (AP) -- Stocks plunged Tuesday, hurtling the Dow Jones industrials down more than 220 points as Wall Street joined a global market decline sparked by growing concerns that the U.S. and Chinese economies are cooling and that equities prices have become overinflated. In midafternoon trading, the Dow Jones industrial average was down 221.99, or 1.76 percent, to 12,410.27.

The last time the index saw a one-day decline of more than 200 points was May 17, 2006. The Dow is now nearly 3 percent below its record high close of 12,786.64, reached just a week ago.

Broader stock indicators also fell sharply. The Standard & Poor's 500 index plummeted 33.62, or 2.32 percent, at 1,415.75, and the Nasdaq composite index dropped 72.44, or 2.89 percent, at 2,432.08.

A 9 percent slide in Chinese stocks, which came a day after investors sent Shanghai's benchmark index to a record high close, set the tone for U.S. trading.

more...
http://biz.yahoo.com/ap/070227/wall_street.html?.v=43

[Roland99]

44. Down 262. Look Out Below!!!!

[citizen snips]

45. Delphi Losses Widen in 4Q, All of 2006

DETROIT (AP) -- Struggling auto parts maker Delphi Corp. said Tuesday its losses widened to $853 million for the fourth quarter and to $5.5 billion for all of 2006.

The former parts-making operation of General Motors Corp. had lost $828 million in the fourth quarter of 2005 and it lost $2.4 billion for all of 2005.

The company said $3 billion in restructuring costs, mainly expenses related to buyout and early retirement offers to 20,000 unionized hourly workers, were responsible for a big chunk of the losses for the year.

The fourth-quarter loss included $200 million in noncash charges related to the company's assets, Delphi said in a filing with the U.S. Securities and Exchange Commission.

more...
http://biz.yahoo.com/ap/070227/earns_delphi.html?.v=6

[citizen snips]

46. Sirius Posts Narrower 4Q Loss

NEW YORK (AP) -- Sirius Satellite Radio Inc., which has agreed to acquire its rival XM Satellite Radio Holdings Inc., reported a narrower loss for the fourth quarter Tuesday as revenues more than doubled.

Sirius had a net loss of $245.6 million, or 17 cents a share, in the last three months of 2006 versus a loss of $311.4 million, or 23 cents per share, in the same period a year earlier.

Revenues more than doubled to $193.4 million from $80 million a year earlier.

Analysts polled by Thomson Financial were expecting a loss of 19 cents per share on revenues of $173 million.

more...
http://biz.yahoo.com/ap/070227/earns_sirius.html?.v=10

[DemReadingDU]

47. Dow down -260 at 2:33pm

I'm glad I got out of stocks last October. Went to a money market fund, for awhile.

[citizen snips]

49. RadioShack 4Q Profit Climbs 64 Percent

DALLAS (AP) -- Shares of RadioShack Corp. surged Tuesday after the electronics retailer said fourth-quarter profit jumped 64 percent, with lower costs more than offsetting a decline in revenue and same-store sales.

The Fort Worth, Texas-based company also offered a bullish prediction for 2007 based on lower costs and higher profit margins.

The shares rose $2.89, or 12.87 percent, to $25.34 in early afternoon trading on the New York Stock Exchange, after hitting a 52-week high of $26.24.

Seven months into a turnaround under a new CEO, RadioShack said fourth-quarter earnings rose to $84.5 million, or 62 cents per share, compared with $51.2 million, or 38 cents per share, a year earlier.

Analysts were looking for net income of 43 cents per share, according to a survey by Thomson Financial.

more...
http://biz.yahoo.com/ap/070227/earns_radioshack.html?.v=8

[citizen snips]

50. Coach Shares Decline As Market Falls

NEW YORK (AP) -- Coach Inc. declined Tuesday, following the market down a day after a Bear Stearns analyst initiated coverage of the handbag maker with an "Outperform" rating.

On Monday, Bear Stearns analyst Randal Konik praised the company in a note to investors.

"We find Coach's merchandise strategy attractive given its wide range of price points, classic and modern fashion perspectives, and varied store formats," Konik wrote. "The company's business model breeds new customers and fosters loyalty from existing ones. We believe this is a formula for sustainable growth and long-term success."

He gave the company an "Outperform" rating.

more...
http://biz.yahoo.com/ap/070227/coach_mover.html?.v=1

[citizen snips]

51. Sector Snap: Home Builders

NEW YORK (AP) -- Shares of home builders were down in Tuesday trading despite better-than-expected existing home sales data.

The National Association of Realtors said sales of existing homes grew 3 percent in January, to 6.46 million from 6.27 million in December. Analysts expected sales of 6.24 million. But that was not enough to lift the stocks, as housing prices fell for the sixth straight month and stock indexes were down.

Wachovia Securities analyst Carl Reichardt said Wednesday's announcement of new home sales will affect home builders more than existing home sales do. He added that struggles for subprime lenders -- who deal with borrowers who have poor credit -- were partly to blame for Tuesday's share decline.

"The major concern is the spillover of tightening credit standards," said Reichardt. "Home building stocks have been suffering a bit in the last couple of weeks, since the beginning of February."

more...
http://biz.yahoo.com/ap/070227/home_builders_sector_snap.html?.v=1

[citizen snips]

52. Sector Snap: Airline Stocks Slump

NEW YORK (AP) -- Airline stocks slumped Tuesday, as concerns about a possible slowdown in China's economy sent jitters through the U.S. market.

The Amex Airline Index fell 3.3 percent, with all 11 of its component stocks dropping. Most percentage swings were greater than 2 percent.

A 9 percent slide in Chinese stocks on Shanghai's benchmark index earlier sparked fears that the U.S. and Chinese economies are cooling and that U.S. stocks are about to embark on a major correction. Former Federal Reserve Chairman Alan Greenspan also warned a day earlier that the U.S. economy may be headed for a recession.

Airlines' fortunes are closely tied to economic growth, with corporate travelers who pay high fares an integral part of many carriers' business models.

more...
http://biz.yahoo.com/ap/070227/airlines_sector_snap.html?.v=1

[citizen snips]

53. Shares of Auto Parts Companies Fall

NEW YORK (AP) -- Shares of auto parts companies fell Tuesday on a bigger-than-expected drop in demand for durable goods, along with concerns about a possible slowdown in economic growth in the U.S. and China.

The Commerce Department reported demand for big-ticket manufactured goods fell by 7.8 percent in January, the sharpest drop in three months.

The drop was led by an 18 percent plunge in transportation orders, which included a 5.1 percent drop in demand for cars, trucks and parts.

The auto parts companies -- including manufacturers and retailers -- also felt the effects of a global stock decline sparked by worries that the U.S. and Chinese economies are cooling and that U.S. stocks are about to begin a major correction.

more...
http://biz.yahoo.com/ap/070227/sector_snap_auto_parts.html?.v=1

[citizen snips]

54. Heinz 3Q Profit Jumps 88 Percent

PITTSBURGH (AP) -- H.J. Heinz Co., a maker of ketchup and other packaged foods, said Tuesday its fiscal third-quarter profit jumped 88 percent on higher sales and improved margins. The results reflected the impact of discontinued operations.

For the quarter ending in January, earnings rose to $219 million, or 66 cents per share, from $116.6 million, or 35 cents per share, during the same period last year.

Revenue climbed 5 percent to $2.30 billion from $2.19 billion in the year-ago period, driven by growth in Heinz-brand products, Smart Ones meals, Classico pasta sauces, Plasmon baby food and ABC-brand products.

The Pittsburgh-based company was helped by better gross margins and a lower tax rate of 26 percent, down from 35.5 percent a year ago, excluding prior-year special items.

more...
http://biz.yahoo.com/ap/070227/earns_heinz.html?.v=4

[northernsoul]

55. Can someone explain (in plain English) what happened in the Shanghai Markets?

Chinese regulators trying to rein in rampant speculation? Is that the deal?

[citizen snips]

57. Investors pulled out their money to lock in earlier gains.

[Ghost Dog]

84. It's basicaly just mad-bubble mass-psychology, imho:

follow the crowd up; follow (fast as you can) back down.

The global fundamentals seem to remain: essentially, much liquidity; much trade; much growth; much redistribution of wealth (mostly amongst the already rich or relatively well-off); serious environmental/resource pressures and their increasing (and increasing foreseen) consecuences); and a rabidly warmongering rogue hyperpower (and cronies).

Bubble in China stockmarkets, sure. Bear in mind that just yesterday an all-time high was reached, and several popular stocks were being prevented from rising beyond the 10% daily limit. Today, many stocks were prevented from falling below that same 10% daily limit. Govt/Bank of China says since these last several months that there is too much liquidity, credit/debit, unconstrained overheating frivolity. Brakes were to be applied gently.

But now Japan carry unwinds; currencies shift value; bubble-investors around the world catch cold. Maybe some Americans wake up.

Tomorrow will be another day and time to judge.

Perhaps find more useful thoughts here: http://www.ft.com/cms/6c2bf1ce-91b7-11da-bab9-0000779e2340.html?a=tpc&s=646099322&f=191094803&m=8471072541&r=8471072541



edit to add:

You may like to consider, for example, these recent articles from Asia Times:

1. Feb 21, 2007 Fears over Shanghai's red-hot bourse

Before closing for the week-long Chinese New Year holiday, the composite index for the Shanghai Stock Exchange briefly broke through the 3,000-point mark for the first time in its history. On Friday, the index closed slightly below the psychologically important mark, but the unprecedented rise in Shanghai's exchange is increasingly becoming a cause for concern for the Chinese government.

After rising 130% in 2006, the Chinese stock market has continued its bull run into 2007 (it is up more than 12% since the start of January), causing Chinese officials to warn that the market is overheating. Cheng Siwei, vice chairman of the Standing Committee of the National People's Congress, told the Financial Times in a January 30 interview: "There is a bubble going on. Investors should be concerned about the risks." When other officials supported his warning, the Shanghai market slumped 11% before beginning its recovery on February 6.

Since then, the Shanghai and Shenzhen markets have surpassed previous record highs and are expected to continue the bull run when they reopen next Monday.

One reason for China's current stock-market boom is that it follows a five-year slump from 2001. Also, after a strong performance last year, corporate profits should be up by 20% this year, said Jing Ulrich, chairman of China equities at JPMorgan in an interview with The Economist.

However, other factors imply that the current run has less to do with the underlying profitability of Chinese companies and more to do with an increase in the demand among mainland Chinese for equities. Record numbers of individual brokerage accounts have been opened in recent months, reaching 80 million accounts last month, a 10% increase over the previous year. Retail investors control 60% of the shares on the Shanghai market, a level that also appears to be increasing.

/...

2. Feb 23, 2007 To get rich is not so glorious
By Candy Zeng

SHENZHEN - In traditional Chinese culture, being rich always meant being looked down on and hated, because a person should be respected not because of his wealth but because of his learning and moral virtue.

China had been an agrarian society for thousands of years with Confucianism as its dominant ideology until the turn of the 20th century. Under Confucian tradition, people were classified as either scholars, peasants, craftsmen or merchants. Scholars were the most respected, while merchants, despite their wealth, were looked down upon. The word "merchant" was often associated with "treacherous", "fraudulent" or "crafty".

Today, China has become an increasingly Westernized capitalist society, and almost everyone is keen on making money. However, it seems that newly rich business people still have a long way to go to win public respect. The rich now are being criticized for ignoring their social responsibility, making dirty money from sweatshops while sacrificing the environment.

Reflecting the rising public pressure for business enterprises to behave better, a leading lawmaker named Cheng Siwei recently slammed Chinese companies for desperately pursuing profit and ignoring social responsibilities.

" the theory and practice that money overrides morality can no longer be tolerated in China," Cheng, the vice chairman of the Standing Committee of the National People's Congress, wrote in an article published last month in the China Economy Weekly, a magazine run by the People's Daily - the Communist Party's flagship newspaper.

/...

3. Feb 28, 2007 SUN WUKONG China aims to diversify oil sources
By Wu Zhong, China Editor

HONG KONG - Diversification is a golden rule of doing business, hence the saying: "Don't put all your eggs in one basket."

In recent years, China has been making aggressive efforts to diversify its sources of oil imports, in an apparent move to reduce the risk of increasing reliance on oil from the Middle East.

But in China 's oil-security strategy, such variegation is not only to reduce business risks but also for geopolitical reasons.

China was self-sufficient in oil consumption until 1993. Since then, the country has become increasingly reliant on imported oil to fuel its rapid economic expansion. This situation is unlikely to change in the future as proven oil reserves in the country are not nearly enough to meet expected demand.

In 2006, China produced 183.68 million tons of crude oil, up 1.7% from the previous year. Its net oil imports amounted to 162.87 million tons, up 19.6%. The total net imports included 138.84 million tons of crude oil, up 16.9%, and 24.03 million tons of oil products, up 37.9%, according to the Ministry of Commerce.

Thus last year China 's dependence on imported oil rose to 47% of annual demand, or an increase of 4.1% over the previous year.

Industry analysts have predicted that in 2007, China's crude-oil output will grow by less than 2%, while the country's demand for both crude and oil products will rise about 6%. That means its dependency on imported oil will further increase this year.

Taking January for example, China imported 13.69 million tons of crude oil, an increase of 3.5% year on year, and 2.77 million tons of oil products, up 5.7%, according to statistics from the General Administration of Customs.

What has worried Chinese oil-security strategists in recent years is that most of the imported oil comes from the Middle East. Despite China's efforts to diversify sources of imports, it still relies heavily on Middle Eastern oil. In 2005, China's imports of crude oil from the Middle East accounted for 61.1% of its total crude-oil imports, making it the most import link in the country's oil-supply chain.

This amounts to putting most, if not all, the eggs in one basket, which is too fraught with risks for such a big country like China, analysts in Beijing say. If the supply of oil from the Middle East were interrupted, for any reason, the outcome for China would be disastrous beyond imagination.

And the danger of China's Middle Eastern oil supply being interrupted is very real. This could happen when oil reserves in the region are exhausted, although that is a long way off. But the region is well known as a powder keg, and a large-scale war there would seriously affect world oil supply.

Moreover, the Middle East is in the United States' sphere of influence, and many Chinese strategists see Uncle Sam's military occupation of Iraq and its threat to attack Iran as part of its ambition to monopolize oil supply in the region. It is beyond China's capability to contend with the world's sole superpower in the Middle East, analysts say. Nor will China want to contend with the US there under its current diplomatic strategy of "keeping its head down".

/...

'Nuff said?

Ah, and notice also this:

FX Trading - China Stocks Tank - That's Risk!

...
From Bloomberg on Tuesday morning:

This is part of that risk out of the blue stuff that can feed into global markets and force some changes elsewhere. As we talked on Monday, that "elsewhere" will likely be the yen and we've seen it this morning … $-yen down 100 PIPs …



Enough said!

[citizen snips]

58. Bed Bath Shares Fall on Downgrade

NEW YORK (AP) -- Shares of Bed Bath & Beyond Inc. declined on Tuesday after an analyst said the company's expenses were outpacing growth and downgraded the home furnishings and accessories retailer.

UBS analyst Brian Nagel wrote in a note to clients that while Bed Bath & Beyond has been performing strongly lately, recent expansion is pressuring shares.

"Aggressive investments have weighed upon earnings per share growth at Bed Bath & Beyond lately," Nagel wrote.

"We expect Bed Bath & Beyond to continue to reinvest any potential upside in sales/gross margins back into selling, general and administrative expense and thereby limit chances for meaningful upside earnings per share surprises at the company."

more...
http://biz.yahoo.com/ap/070227/bed_bath_beyond_mover.html?.v=1

[citizen snips]

59. Treasuries Rise Third Straight Day on Emerging-Markets Decline

Feb. 27 (Bloomberg) -- Treasuries advanced, pushing yields to the lowest level since December, as a drop in emerging-market assets and a rise in the perceived risk of subprime mortgage bonds bolstered demand for the safest debt.

Ten-year note yields fell for a third straight day as a rout in Chinese shares fueled concern investors will shy away from riskier assets. A rise in defaults on bonds backed by mortgage loans to people with poor credit histories offset a government report showing a recovery in housing.

``There is this reassessment going on in the market,'' said Kevin Flanagan, a Purchase, New York-based fixed-income strategist for Morgan Stanley's individual-investor clients.

The yield on the benchmark 10-year note fell almost 9 basis points, or 0.09 percentage point, to 4.54 percent at 2:25 p.m. in New York, for the biggest drop since Sept. 21, according to New York-based bond broker Cantor Fitzgerald LP. It touched 4.5363 percent, the lowest since Dec. 15. The price of the 4 5/8 percent security due in February 2017 rose 22/32, or $6.88 per $1,000 face amount, to 100 22/32.

more...
http://www.bloomberg.com/apps/news?pid=20601087&sid=agjoAn8eIifU&refer=home

[citizen snips]

60. Gold Falls on Concern Chinese Demand for Commodities May Ease

Feb. 27 (Bloomberg) -- Gold in New York fell after equities in China plunged the most in a decade, sparking speculation demand for the precious metal and other commodities may slow.

Investment demand for bullion jumped 29 percent last year in China, the second-biggest buyer of gold after India, according to the producer-funded World Gold Council. China's appetite for commodities helped drive the prices of copper and crude oil to records last year.

``A major down wave in Chinese markets would immediately and significantly affect the equally red-hot commodities sector,'' Jon Nadler, an investment-products analyst at Montreal-based Kitco Minerals & Metals Co., said in an e-mail. ``Gold would not likely be immune from a large-scale decline.''

Gold futures for April delivery dropped $2.60, or 0.4 percent, to $687.20 an ounce on the Comex division of the New York Mercantile Exchange. Prices earlier dropped as much as $12.60, or 1.8 percent. The metal closed at a nine-month high yesterday.

more...
http://www.bloomberg.com/apps/news?pid=20601012&sid=alqHJvT31Akw&refer=commodities

[citizen snips]

61. Sales of Existing Homes Jump in January

WASHINGTON (AP) -- Sales of existing homes rose in January by the largest amount in two years, raising hopes that the worst of the severe slump in housing may be coming to an end. Median home prices, however, fell for a sixth straight month.

The National Association of Realtors reported Tuesday that sales of previously owned homes rose by 3 percent last month, the biggest one-month increase since a 3.3 percent advance in January 2005, a time when housing was roaring toward the peak of its five-year boom.

The median price of an existing home sold in January dropped to $210,600, a decline of 3.1 percent from a year ago. It marked the sixth straight month that the median price has been down compared with a year ago. The January decline was the third-biggest drop in history.

In other economic news, the Conference Board, a private research group, said consumer confidence rose in February to its highest level in more than five years while the Commerce Department reported demand for big-ticket manufactured goods fell by a sharper-than-expected 7.8 percent in January, the biggest drop in three months.

more...
http://biz.yahoo.com/ap/070227/economy.html?.v=16

[w8liftinglady]

62. stupid question-is there a point where they will close the NYSE if stocks fall too much?

[AnneD]

66. Well,

they usually send out the faeries....but I haven't seen the faeries in a while. It is the PPT plunge protection team-started after the stock market crash in the late 80's. I don't think they have that much pixie dust-but ya never know.

Edited to add.

Plunge Protection Team, was originally the headline for an article in The Washington Post by staff writer Brett D. Fromson, published on Sunday, February 23, 1997. He did not invent the term. It was added later by a copy desk editor as a sensational nickname for the subject of the article, the President's Working Group on Financial Markets in the United States. It includes the Secretary of the Treasury, the Chairman of the Federal Reserve, the Chairman of the Securities and Exchange Commission and the chairman of the Commodity Futures Trading Commission.

Founded in 1988 after the 1987 stock market crash, it theoretically ensures the stability of the financial markets, prevents liquidity problems, and ensures that stock market hiccups do not cause bank runs. Some Wall Street bears believe that it buys stock index futures or uses other methods to help keep the American stock markets afloat.

Upon that suspicion, Plunge Protection Team or PPT for short, has become a catch phrase for those who warn about the danger of monetary inflation being used as a tool to more or less directly support stock market prices. In reaction to the poor reasoning of extremists of that suspicion, others have called it a conspiracy theory or an urban legend.

The term, Plunge Protection Team, has also been used to include high ranking private bank officials. Private bank risks have increased with growth in the use of derivatives. Trying to prevent a sudden drop in stock prices might be a way to alleviate some of those risks without cutting back on the derivative contract sales that certain banks make a large percentage of income from. So they, especially those banks associated with the Counterparty Risk Management Policy Group of 1999 and the more recent CRMPG II, have also been suspected of conspiring as part of a broader PPT. Please see the article on derivatives for further explanation.

http://en.wikipedia.org/wiki/Plunge_Protection_Team

[citizen snips]

69. No

[specimenfred1984]

86. Yes, but the public doesn't know where that is

Take 9/11 for example, they closed it for a week. They'll do it again to save their fascist asses if that's what they need to do.

The major stock markets have been blatantly rigged for a few years now, most notably for me since May 04 when I started seeing huge buys coming into the S&P futures. Corrupt banks, huge derivatives markets and lack of regulation and enforcement have combined to create the biggest fraud the U.S. has ever seen.

Call it a "bubble" or call it a fraud, it's not a fun place for the average person/investor.

[Lucky Luciano]

164. You don't know what you are talking about...

First of all, the post below mine gives the correct rules on Circuit Breakers.

There are some fascists indeed, but the markets needed to be closed for a week after 9/11. Call it a hardcore circuit breaker - this is good for the average investor. The place wehre trading gets done was broken that day - You might say that it was closed "due to technical difficulties."

You cannot rig the whole market. No one person has enough money to do that. The collusion would be too hard because one cheater would fuck it all up - and the types to collude would also cheat. Derivatives markets are an integral part of the markets. They are crucial in fact. They are insurance instruments, but they are not to be used by idiots.

The internet bubble was caused by lack of regulation when analysts put out glowing reports on crap companies to win investment banking deals. Those days are over.

There is a lot of regulation and compliance - compliance is a huge pain in the ass sometimes. If our investment bankers do a deal with company XYZ, then I am not allowed to trade XYZ - even if I have no clue what we are doing for XYZ or who specifically has insider knowledge as a result of working on a deal. That sucks, but those are the breaks - especially when you have a merger arbitrage business that gets blocked because our I-Bankers helped advise on the deal. Why would we be restricted? Because it would give off the APPEARANCE of a conflict of interest that may be hard to explain if we succeed with our trades. That appearance makes the stock restricted even if we do not in fact cheat......

Unfortuantely, Dickhead Cheney does not have to make HAL restricted from contracts even though it gives off warning bells as louds as a Mt St Helens explosions about a huge conflict of interest....That is quite a bit more than an appearance of a conflict if I do say so myself!

[xdk999]

97. NYSE Trading Halts:

Successive NYSE trading halts are triggered by 10%, 20% and 30% intraday declines of the DJIA from its previous closing value. More precisely, circuit-breaker threshold levels are specified in index points and are calculated at the end of every quarter as 10%, 20% and 30% of the average daily closing value of the DJIA in the preceding calendar month, with rounding to the nearest 50 points. New quarterly circuit-breaker levels are announced on January 1, April 1, July 1, and October 1.


http://www.cbot.com/cbot/pub/cont_detail/0,3206,1560+8704,00.html

and

http://en.wikipedia.org/wiki/Trading_curb

[citizen snips]

63. Copper Falls on Concern Demand to Weaken in the U.S., China

Feb. 27 (Bloomberg) -- Copper prices fell in New York on speculation demand may weaken in the U.S. and China, the world's two biggest consumers of the metal used to make pipes and wires.

China's stocks tumbled the most in 10 years on concern that a government crackdown on illegal investments will end a rally that drove benchmarks to records. Orders placed with U.S. factories for durable goods fell more than forecast in January as excess inventories prompted companies to limit spending.

``This morning's weakness in metals has been triggered by the steep slide in the Chinese stock market,'' Edward Meir, a commodities analyst at Man Financial Inc. in Connecticut, said in a report today.

Copper futures for May delivery fell 4 cents, or 1.4 percent, to $2.83 a pound as of 11:39 a.m. on the Comex division of the New York Mercantile Exchange. The price fell to $2.793 per pound earlier today. Copper prices have declined 30 percent from a record high of $4.04 a pound in May.
more...
http://www.bloomberg.com/apps/news?pid=20601012&sid=aCbAfZ8WfqJ4&refer=commodities

[saigon68]

65. 3:00 Pm EST Down 495 pts

Dow 12,136.85 Down 495.41 (3.92%)
Nasdaq 2,403.99 Down 100.53 (4.01%)
S&P 500 1,392.93 Down 56.44 (3.89%)
10-Yr Bond 4.5340% Down

[itsmesgd]

67. 3:02 PM down 500

[saigon68]

72. 3:04 Down 523

[lovuian]

70. 537 OMG

devastating

[CountAllVotes]

71. please tell me I am wrong!

Symbol Last ChangeDow 12,156.64 Down 475.62 (3.77%)
Nasdaq 2,403.99 Down 100.53 (4.01%)
S&P 500 1,389.83 Down 59.54 (4.11%)
30-yr Bond 4.6460% Down 0.0870
NYSE Volume 3,238,945,000
Nasdaq Volume 2,287,132,000

OMG! It has begun! :nuke:

[MilesColtrane]

83. 30-yr bond down too? WTF

Are people selling off and putting the money in a hole in their backyard?

[Ghost Dog]

90. DOW still above 12,000. ¿Weird or what?

[saigon68]

73. Heavy Volume

NYSE Volume 3,293,468,000
Nasdaq Volume 2,353,917,000

[lovuian]

74. Volume has'nt been this large since 2001

is the war looming???

[saigon68]

76. Not Yet

But someone is getting a Massive A$$ Kicking

[ramapo]

75. ho-hum

These things happen in the market. Ir is not a rational place. If it was, the Dow wouldn't have risen as much as it has over the past few years.

My broker called me last week with a gentle hint to be prepared for turbulance ahead.

Remember that in many ways our financial house is as stable as a house of cards and is now very dependant on what goes on in the Far East.

Put on your seatbelts!

[redqueen]

80. There seems to be a bit of a conflict

between your subject line and your last two sentences. ;)

[Roland99]

77. That *is* some big-time volume

[OhioChick]

78. Holy Cow! n/t

[lovuian]

79. Somebody is buying in the

its 393

[Roland99]

81. Program trades kicking in? Faeries? Chopper Ben?

[Cerridwen]

82. China rattling cages?

Just a little reminder for those who forgot?

[UpInArms]

85. 3:15 EST bloody numbers and blather

Dow 12,220.73 411.53 (3.26%)
Nasdaq 2,414.07 90.45 (3.61%)
S&P 500 1,402.32 47.05 (3.25%)
10-Yr Bond 4.519% 0.112

NYSE Volume 3,468,572,000
Nasdaq Volume 2,478,418,000

3:00 pm : No real change in sentiment as traders enter the final stretch of what is shaping up to be one of the worst days for stocks in recent memory.

The sell-off in China continues to have a profound effect on stocks across the board, since the largest unwinding in the Shanghai Composite Index since 1997 challenges the amount of liquidity on a global scale.
DJ30 -278.95 NASDAQ -84.22 SP500 -44.01 NASDAQ Dec/Adv/Vol 2805/258/2.13 bln NYSE Dec/Adv/Vol 2818/490/1.54 bln

2:30 pm : As presaged in the last comment, the S&P 500 is now down more than 2.0%. In fact, the mass exodus in equities now leaves the broader market down 2.4% on the session and only one of its 147 industry groups in positive territory -- Gas Utilities (+2.6%).

Further underscoring the bearish tone has been a 29% gain on the VIX (CBOE Volatility Index), surging it to its highest level since August. Known as the "investor fear gauge," the spike higher suggests investors were actively buying put options in anticipation that the market correction so many have been concerned about with so many indices hitting record levels of late is finally here. DJ30 -222.37 NASDAQ -75.08 SP500 -35.15 NASDAQ Dec/Adv/Vol 2759/274/1.91 bln NYSE Dec/Adv/Vol 2803/496/1.37 bln

2:00 pm : Sellers remain in complete control of the action as the major averages slip to their worst levels of the session. The S&P 500 is down for a fifth consecutive session, its longest losing streak in three years.

The broader market hasn't experienced a decline of 2% since May 2003, but it's currently down 1.95%. Its streak of nine straight months of gains is also in jeopardy as the S&P 500 is now in negative territory for the month and there's one more trading day left in February. DJ30 -211.08 NASDAQ -66.16 SP500 -28.00 NASDAQ Dec/Adv/Vol 2699/315/1.68 bln NYSE Dec/Adv/Vol 2771/509/1.21 bln

1:30 pm : More of the same for stocks as the Nasdaq continues to outpace its blue-chip counterparts to the downside. The tech-heavy Composite is now down 2.3%, erasing two-thirds of its year-to-date advance so far; decliners now outpace advancers by an 8-to-1 margin.

With regard to the NYSE, where trading collars have now been triggered due to the widespread bloodletting, declining issues hold a 5-to-1 edge over advancing issues. Down volume significantly overshadowing up volume further underscores the conviction on the part of sellers to take some money off the table amid so much lingering uncertainty. DJ30 -190.42 NASDAQ -57.84 SP500 -24.20 NASDAQ Dec/Adv/Vol 2662/332/1.54 bln NYSE Dec/Adv/Vol 2751/513/1.10 bln

1:00 pm : The indices bounce off recent lows but selling remains widespread across most areas. Treasuries, however, continue to catch a flight-to-quality bid as emerging-market woes, weak economic data, geopolitical tensions, and sub-prime lending concerns exacerbate the widespread panic out of stocks and into safe haven investments like bonds.

The 10-year note is now up 17 ticks to yield 4.55% as investors reassess their risk tolerance, especially in an environment of decelerating earnings growth. DJ30 -178.80 NASDAQ -53.34 SP500 -22.75 NASDAQ Dec/Adv/Vol 2649/343/1.41 bln NYSE Dec/Adv/Vol 2745/505/1.01 bln

12:30 pm : The bottom continues to fall out of stocks as stocks kick off the afternoon session at fresh session lows. The Nasdaq recently failing to find support near its 50-day moving average of 2458 has exacerbated the index’s move lower (-2.2%).

All three major indices are now averaging declines of 1.8% and the Dow is now in negative territory for the year; all 30 of its blue-chip components are in the red. DJ30 -181.57 NASDAQ -54.61 SP500 -22.71 NASDAQ Dec/Adv/Vol 2628/339/1.26 bln NYSE Dec/Adv/Vol 2714/509/892 mln

12:00 pm : As if stocks running virtually unabated since bottoming last July wasn't already creating a growing sense of nervousness that the market is primed for a correction, a meltdown in China overnight has made it clear that the bullish sentiment behind a seven-month rally is losing steam. The Shanghai Composite Index, which surged an astonishing 127% in 2006 and is up 13% over the last six sessions, plunged 8.8% -- the biggest one-day decline in 10 years. Worries the Chinese government may step up its efforts to curb speculative buying interest have been attributed to the consolidation.

With geopolitical concerns returning to the forefront in recent days, an assassination attempt on U.S. Vice President Dick Cheney in Afghanistan has exacerbated such tensions and contributed to the sidelining of buyers. In fact, 95% of the S&P 500 is in negative territory; decliners on both the NYSE and Nasdaq hold at least a 5-to-1 advantage over advancers.

With the stock market becoming more concerned about potential economic weakness as well, a disappointing read on durable orders earlier has increased underlying anxiety about the economic outlook. The headline read for January plunged 7.8% as demand across the board was weak. While the data have helped spark another rally in Treasuries, as fed funds futures now price in a 40% cumulative chance (up from 20% yesterday) of a rate cut over the next three FOMC meetings. The 10-year note is up 11 ticks, pushing the yield to a year-to-date low of 4.57%.

Throw in a nearly 3% turnaround in oil prices from session lows, and the failure by the Energy sector (-1.0%) to take full advantage of crude eclipsing $62/bbl (+1.0%) for the first time this year, is also weighing on sentiment.

Of the 147 S&P industry groups, 142 of them posting losses further underscores the broad-based nature of today's profit-taking efforts and overall lack of enthusiasm to own equities. All 10 sectors are losing ground, led by Materials (-1.8%), which isn't all that surprising since it has been the best performing S&P 500 sector this year (+10.7%). Financials, which is now negative for the year, Technology, Health Care, Industrials and Consumer Discretionary -- the five most influential S&P sectors -- are averaging intraday declines of 1.5%. BTK -2.4% DJ30 -161.02 DJTA -1.9% DJUA -0.8% DOT -1.4% NASDAQ -46.21 NQ100 -2.1% R2K -1.8% SOX -0.6% SP400 -1.7% SP500 -19.46 XOI -0.7% NASDAQ Dec/Adv/Vol 2555/375/1.06 bln NYSE Dec/Adv/Vol 2705/478/772 mln

[UpInArms]

87. 2 minute bounce?

Dow 12,264.07 368.19 (2.91%)
Nasdaq 2,418.93 85.59 (3.42%)
S&P 500 1,406.44 42.93 (2.96%)
10-Yr Bond 4.509% 0.122

NYSE Volume 3,498,474,000
Nasdaq Volume 2,493,391,000

[AnneD]

92. Hey UIA

"3:00 pm : No real change in sentiment as traders enter the final stretch of what is shaping up to be one of the worst days for stocks in recent memory."

Good thing these folks have the attention span of gnats-huh. Where is 54anickle and her artwork when you need it.

[Theres-a]

95. I was just thinking that....54 where are you?

[Ghost Dog]

109. Something twitched there at 15:00 EST.

Hiya AnneD, glad to know you're well out of it, and sanguine. Me I was/am a very little exposed, but have been cashing in some these last weeks. Sniffed it in the air.

Something like this image, perhaps (sorry, best I can do for now), suits?:

ed. or is it yet time for this?:

[AnneD]

137. Works for me...

Hi GD, glad to have you here for the excitement.

[wordpix]

100. 3:54 pm: Dow down -351 pts., yikes

[lovuian]

88. At one point it was down 684

WHOAH

[spotbird]

96. Really?!?

What is the exact mechanism they use to bring it back up?

[wordpix]

98. holy shit

[Renew Deal]

99. That doesn't sound right.

Yahoo says "The Dow fell 546.02, or 4.3 percent, to 12,086.06 before recovering some"

http://biz.yahoo.com/ap/070227/wall_street.html?.v=62

[lovuian]

124. Watched it on the TV and announcers announced it

its not telling you the minute by minute

[lovuian]

161. ok I know where I got that 684 thats the Largest drop in

one day on the stock Market after 9/11 they were talking about it when the glitch happened I either saw it on the ticker or heard the announcer...just all of a sudden we went from 300's to over 500 in a few minutes

Sorry about that heard wrong

[lovuian]

89. LOL!!! everybody panicked on Alan Greenspan's comment

RECESSION coming

Al will regret that comment
got to blame somebody

[high density]

91. Looks like it's time to start buying!

:)

[roamer65]

94. I wouldn't touch it with a ten foot pole right now.

I think there's much more downside.

[Xenotime]

134. You are going to see it drop below 10k...

When it does, * will take the blame.

[BluePatriot]

93. Yee-ha

Looks like I picked a good day to pop into this thread...

[spotbird]

101. CNN: No trades executed

On CNN there was a reporter on the floor in NY interviewing a trader. The trader complained he hadn't been able to get anything through for a while, and when he could it was slow.

Can they freeze it to run out the clock?

[Renew Deal]

103. There was a massive spike in action at 3PM when the market dropped

:wtf: was that?

[spotbird]

111. We'll never know.

But something happened.

[specimenfred1984]

113. Big trading houses dumped

The same houses pump on the way up. Sure it's illegal but who's regulating these Chimp-appointed markets?

[Roland99]

102. (DJIA) dropping 200 points in one minute around 3 p.m.

http://www.marketwatch.com/news/story/us-stocks-dive-china-jitters/story.aspx?guid=%7BA72936DE%2D8134%2D4476%2D97A9%2DFECE4F007426%7D



wow.



edit:

"Right now, there's not even a flight to quality into gold or the Swiss franc, which tells me that we're closer to the beginning than to the end of this," Sachs said.

[Renew Deal]

104. And volume at 3 was way high.

Is that manipulation? What is that?

[Roland99]

107. I would imagine program trades. Loss hits a certain point and institutions sell of huge amounts.

[Lone_Star_Dem]

110. They're saying it may have been a server outage

Orders backed up and then were all executed at the same time. Mind you that info is per CNN.

[girl gone mad]

156. If true, that will not do anything..

to restore confidence in the markets.

[saigon68]

105. At the close Down 415 Points

ow 12,216.96 Down 415.30 (3.29%)
Nasdaq 2,407.87 Down 96.65 (3.86%)
S&P 500 1,399.55 Down 49.82 (3.44%)
10-Yr Bond 4.5130% Down 0.1180
NYSE Volume 4,166,683,000
Nasdaq Volume 2,994,304,000

[SahaleArm]

106. Bloodbath complete - DOW closes -415, Nasdaq -97, S&P -48 *nt*

[Roland99]

108. -415 as the final close is jumbling around a bit.

[saigon68]

112. Look at the volumes

NYSE Volume 4,175,518,000
Nasdaq Volume 3,007,581,000

They are still going up the backlog must be tremendous

10 minutes later @ 4:12 pm


NYSE Volume 4,208,710,000
Nasdaq Volume 3,036,695,000

[SahaleArm]

114. NYSE Decline volume - 2,376,465,000, Advance volume 24,837,000 *nt*

[Roland99]

115. Was Greenspan speaking in some hidden code words the other day?

The "R" word was obvious but were there hidden messages in his phrasing the other day?

[Joanne98]

116. Blood bath continues New Zealand down 3.23 %

http://www.nzx.com/

CNBC is now saying there was a "computer glitch". :)

[citizen snips]

117. Sector Wrap: Stock Exchanges Fall

NEW YORK (AP) -- Stock exchanges were among the hardest-hit sectors Tuesday during a global stock sell-off sparked by a steep market decline in China.

Chinese stocks suffered their sharpest plunge in 10 years. Some investors attributed the decline to rumors that the Chinese government was poised to raise interest rates. But others said that was just an excuse for investors to bail out of a market with overblown stock values.

The 9 percent drop in the Shanghai Stock Exchange Composite Index spilled into other markets, including the U.S. The Dow Jones industrials and the Standard & Poor's 500 Index each fell about 3 percent Tuesday, with most types of stocks sinking.

Stock exchanges, which make money by charging corporations to list their stocks and earn fees for hosting trades, fell along with the market.

more...
http://biz.yahoo.com/ap/070227/stock_exchanges_sector_wrap.html?.v=1

[citizen snips]

118. Sector Wrap: Biotechnology

NEW YORK (AP) -- Shares of biotechnology companies fell sharply Tuesday, caught up in the severe downturn that punished all but a few shares in the U.S. stock markets.

Stock exchanges around the world suffered declines as investors feared the U.S. and Chinese economies are slowing down. Chinese stock indexes dropped almost 9 percent after Monday's record close, leading to downturns in Asian markets that echoed elsewhere.

The American Stock Exchange Biotechnology Index dropped 28.53, or 3.7 percent, to 754.08. The S&P 500 Index fell 3.5 percent, while the Nasdaq Composite dropped 3.9 percent. The Nasdaq 100 lost 74.32, or 4.1 percent, to end the day at 1,756.72.

Shares of Summitt, N.J.-based Celgene Corp. stock sank $4.05, or 7.1 percent, to $53.17 on the Nasdaq and pushed into negative territory for the year. Nonetheless, the maker of bone marrow cancer treatment Thalomid and the blood disease treatment Revlimid shows a 48.8 percent gain over the past 52 weeks.

more...
http://biz.yahoo.com/ap/070227/biotech_sector_wrap.html?.v=1

[citizen snips]

119. Corn Tumbles; Soybeans, Wheat Fall

NEW YORK (AP) -- Corn futures tumbled Tuesday on speculative selling amid worries over economic growth in China and technical liquidation.

On the Chicago Board of Trade, March corn ended 14.50 cents lower at $4.11 per bushel, while May corn settled 14.25 cents lower at $4.2425 and December finished 8.50 cents lower at $4.0950.

Soybean futures closed lower in a corrective break from recent gains and under pressure from fund liquidation. March soybeans closed 15.25 cents lower at $7.6350 per bushel, and May soybeans ended down 15.75 cents at $7.7875.

March wheat fell 12.75 cents to $4.7025 per bushel.

more...
http://biz.yahoo.com/ap/070227/commodities_review.html?.v=1

[citizen snips]

120. Chips Wrap: Semiconductor Stocks Fall

NEW YORK (AP) -- Chip stocks retreated amid global market declines on Tuesday, following the biggest drop in a decade for Chinese stocks and widespread concerns that the economies of both the U.S. and China are cooling.

Intel Corp., by far the world's largest semiconductor maker, saw its shares fall 82 cents, or 3.9 percent, to close at $20.03 on the Nasdaq Stock Market. In the past 52 weeks, the stock has traded between $16.75 and $22.50.

Shares of Advanced Micro Devices Inc. fell 60 cents, or 3.8 percent, to $15.08 on the New York Stock Exchange, having traded between $14.43 and $42.70 in the past year.

Dallas-based Texas Instruments Inc. saw its shares drop $1.08, or 3.4 percent, to $30.69 on the NYSE. The stock has traded in the 52-week range of $26.77 to $36.40.

more...
http://biz.yahoo.com/ap/070227/semiconductors_sector_wrap.html?.v=1

[Joanne98]

122. I HATE Larry Kudlow! He's the biggest professional brown-noser

on earth.

[DemReadingDU]

123. more market analysis

http://bonddad.blogspot.com/2007/02/what-hell-happened-today.html


some might know bonddad from dailykos...
http://www.dailykos.com/user/bonddad

[Joanne98]

125. NZX first to start trading on Wednesday opens 3.1% down.

The New Zealand Stock Exchange - the first in the world to start trading on Wednesday - posted a drop of 3.1 per cent in its top 50 companies index within minutes of opening.

Analysts said they were watching the New Zealand market carefully following falls on international bourses after Chinese stocks fell 9 per cent with the biggest losses in a decade on Tuesday.

The New Zealand index of top 15 companies quickly fell 3.46 per cent, the exchange reported.

© 2007 DPA
http://www.playfuls.com/news_09_3813-New-Zealand-Stock-Exchange-Opens-Down-3-Per-Cent.html

This is why that link I put up is slow... Who opens next?

[Ghost Dog]

126. NEXT UP-Risk-takers may think twice in days ahead

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070227:MTFH96141_2007-02-27_21-32-29_N27411824&type=comktNews&rpc=44

NEW YORK, Feb 27 (Reuters) - Only time will tell if Tuesday marked the end of the easy-money era or was simply a brief dry spell for global markets long accustomed to abundant liquidity.

Plunging global stock prices, U.S mortgage worries and rising tension with Iran spooked investors around the world on Tuesday, prompting many to cut back on risky assets in favor of safe-haven government bonds.

But while market players say it's too early to call an end to today's financial market mix of ample liquidity and rising asset prices, many warned that investors ignore Tuesday's turbulence at their own peril.

"The prudent investor should watch the market closely for signs of further deterioration. Now's not the time for heading for the beach in Florida," said David Powell, currency analyst at IDEAglobal in New York.

If global stocks -- particularly in big emerging markets such as China, Russia, Brazil and India -- continue to weaken throughout the week, "it might be hard to stop the momentum," he said.

/...

[Ghost Dog]

127. Nikkei futures plunge as U.S. stock selloff deepens

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070227:MTFH93159_2007-02-27_19-42-49_NYA000092&type=comktNews&rpc=44

NEW YORK, Feb 27 (Reuters) - Futures on Japan's Nikkei 225 stock average plunged 5 percent on Tuesday as a rout in U.S. stocks deepened and the impact of the Chinese stock market's biggest fall in a decade rippled through global markets.

Nikkei 225 futures <NKc1> on the Chicago Mercantile Exchange dropped 855.00 points, or 4.7 percent, to 17,380.

The Nikkei closed down 95.43 points at 18,119.92 on Monday.

/.

[Joanne98]

128. Do you know what time the Nikkei opens> i use to know but i forgot.

[Ghost Dog]

131. Let me get this right (hours were changed a year ago):

http://www.tse.or.jp/quote-e/beginner/index.html
Tokyo Stock Exchange's market is open from 9:00 am (GMT+9) to 11:00 am and from 12:30 pm to 3:00 pm, Monday through Friday, except on holidays.

So, I'm on GMT+1 here (in winter) - opens 1:00 AM my time.

Eastern Standard (ET) winter, for example, would be GMT-5, am I right?

So Tokyo market would open 7:00 PM ET for you.

(in other words, about 45 minutes to go right now...) :hi:

[Joanne98]

132. Thanx Ghost Dog!

:)

[Ghost Dog]

135. Kiwi Market Data - 28 February, 12:43

http://www.nzx.com/
Headline Indices
Index Value Movement (%)
NZX 50 3986.0 -2.85%
NZX 15 7303.2 -2.89%
NZX 50 Portfolio 2353.2 -2.72%
NZX SciTech 1380.8 -3.21%

[Ghost Dog]

136. Australia Stock Exchange...

http://www.asx.com.au/
... The connection to the server was reset while the page was loading.

[Joanne98]

140. the web traffic must be really heavy. I can't get NZ up either.

[Maggie_May]

141. Australia stock exchange down 181 points

so far

[Ghost Dog]

142. Aussie stocks fall as global markets tumble

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070227:MTFH98867_2007-02-27_23-54-49_SYD146570&type=comktNews&rpc=44
Tue Feb 27, 2007 6:54pm ET

SYDNEY, Feb 28 (Reuters) - Australian shares slumped 3.1 percent on Wednesday, joining a sell-off in stock markets worldwide after a tumble in China's main index stoked worries of a global economic slowdown.

The benchmark S&P/ASX 200 index <.AXJO> dived 185.8 points to 5,808.0 by 2339 GMT, posting its biggest one-day percentage fall since Sept. 17, 2001, when it fell 4.7 percent.

However, dealers said that the Australian market's fundamentals remained strong and any fall represents a good buying opportunity for investors.

"It is a fear-driven market but the good news is that nothing has changed in terms of the fundamentals," said Craig James, chief equities economist at Commonwealth Securities.

"It wasn't fundamentals that drove the Chinese market down, but rumours, so this is not a case for panicking for any investor," he added.

Resource stocks with exposure to the China market were among the biggest decliners.

BHP Billiton Ltd. (BHP.AX: Quote, Profile , Research) (BLT.L: Quote, Profile , Research), the world's top miner, slipped 5.6 percent to A$27.25, while rival Rio Tinto Ltd. (RIO.AX: Quote, Profile , Research) (RIO.L: Quote, Profile , Research) lost 5.6 percent to A$75.19 by 2335 GMT. Continued...

/...

[Ghost Dog]

139. Nikkei seen booking heavy losses, Nikko a focus

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070227:MTFH98466_2007-02-27_23-30-51_T261047&type=comktNews&rpc=44
Tue Feb 27, 2007 6:30pm ET

TOKYO, Feb 28 (Reuters) - The Nikkei average is seen booking heavy losses on Wednesday, with steel makers and other recent gainers hit by selling after U.S. stocks plunged on concerns about global economic growth.

Shares of Nikko Cordial Corp. (8603.T: Quote, NEWS , Research) will continue to be a focus for the market. The brokerage is likely to be delisted from the Tokyo exchange due to an accounting scandal, the Nikkei business daily said on Wednesday.

"We are likely to see the Nikkei fall 500 or 600 points today. It really can't be helped, given the sell-off in U.S. markets, and the decline in Nikkei futures," said Yutaka Miura, a senior technical analyst at Shinko Securities.

Shares of recent gainers such as steel stocks were likely to be hit by heavy selling, Miura said.

Nikkei futures pointed to a steep decline in the market. Contracts expiring in March <2NKc1> finished at 17,460 in Chicago, down 650 points from the close in Osaka <JNIc1>.

The Nikkei <.N225> is likely to move between 17,500 and 18,000 on Wednesday, market sources said.

The benchmark fell 0.52 percent to 18,119.92, on Tuesday, after booking its highest close in nearly seven years a day earlier.

/...

[UpInArms]

144. Japan's Nikkei 225 opens down 276.31 points at 17,843.61

CBSMarketwatch bulletin:

http://www.marketwatch.com/?siteid=mktw

BULLETIN
JAPAN'S NIKKEI 225 OPENS DOWN 276.31 POINTS AT 17,843.61
The China syndrome
U.S. stocks collapse in wake of Asia sell-off; drop looked like a glitch

world markets:

http://money.cnn.com/data/world_markets/

Asia Pacific & Australia
		Index	Change	%Change	Level	Last Update *

	Australia	ASX 100	-145.20	-2.97%	4,700.50	2/28 11:15am
	Australia	ASX All Ords	-187.90	-3.12%	5,789.70	2/28 11:15am
	Australia	ASX Mid-cap 50	-208.50	-3.33%	6,004.60	2/28 11:15am
	Hong Kong	Hang Seng	-360.08	-1.76%	20,147.87	2/27 5:59pm
	Hong Kong	HSCC Red Chip	-62.62	-1.73%	3,549.52	2/26 12:00am
	Japan	Nikkei 225	-584.86	-3.23%	17,535.06	2/28 9:15am

[Ghost Dog]

145. Nikkei tumbles as investors sell across the board

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070228:MTFH99079_2007-02-28_00-07-55_T232320&type=comktNews&rpc=44
Tue Feb 27, 2007 7:08pm ET

TOKYO, Feb 28 (Reuters) - The Nikkei share average tumbled 1.52 percent at the start of trade on Wednesday, falling below 18,000 for the first time in nearly a week, as investors sold stocks across the board following steep losses on Wall Street.

The Nikkei <.N225> was down 293.56 at 17,826.36 as of 0004 GMT. The broader TOPIX index <.TOPX> was down 1.47 percent at 1,784.72.

/.

[Ghost Dog]

146. Japan's industrial production down 1.5% in January on month

http://asia.news.yahoo.com/070227/kyodo/d8nicc300.html

(Kyodo) Japan's industrial production fell a seasonally adjusted 1.5 percent in January from the previous month, the government said Wednesday.

The index of output at mines and factories stood at 108.0 against the base of 100 for 2000, the Ministry of Economy, Trade and Industry said in a preliminary report.

The index of industrial shipments shrank 0.3 percent to 111.4 and that of industrial inventories lost 0.9 percent to 97.4.

Looking ahead, METI said manufacturers project a 1.8 percent drop in industrial production in February and a 2.4 percent growth in March.

/.

ed. Um. More or less normal, then...

[Ghost Dog]

149. Tokyo's Nikkei tumbles more than 3 percent

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2007-02-28T001845Z_01_T261156_RTRIDST_0_MARKETS-JAPAN-STOCKS-UPDATE-2.XML
Tue Feb 27, 2007 7:18pm ET

TOKYO, Feb 28 (Reuters) - Tokyo's Nikkei share average tumbled more than 3 percent soon after the start of trade on Wednesday, as investors sold stocks across the board following steep losses on Wall Street. The Nikkei <.N225> was down 3.26 percent, or 590.14 points, at 17,529.78 as of 0014 GMT.

The broad TOPIX index <.TOPX> was down 4.6 percent at 1,727.45.

/.

[Ghost Dog]

157. Tokyo's TOPIX index falls more than 5 percent

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070228:MTFH99364_2007-02-28_00-28-03_T264024&type=comktNews&rpc=44
Tue Feb 27, 2007 7:28pm ET

TOKYO, Feb 28 (Reuters) - Tokyo's TOPIX index <.TOPX> fell more than 5 percent on Wednesday morning as investors sold shares across the board following steep losses on Wall Street.

The TOPIX was down 4.6 percent at 1,728.14 at 0024 GMT after falling as low as 1,719.15, down about 5.1 percent a few minutes earlier.

The bourse said it had temporarily halted trade in TOPIX futures.

[Ghost Dog]

158. Tokyo bourse says to curb arbitrage on TOPIX

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070228:MTFH99499_2007-02-28_00-35-26_TKU002861&type=comktNews&rpc=44
Tue Feb 27, 2007 7:35pm ET

TOKYO, Feb 28 (Reuters) - The Tokyo Stock Exchange said on Wednesday it will limit arbitrage trade below 1,711.33 on the TOPIX index <.TOPX> of all first-section shares.

The TOPIX fell more than 5 percent on Wednesday morning as investors sold shares across the board following steep losses on Wall Street.

[Ghost Dog]

160. Tokyo bourse says halted trade in TOPIX futures

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070228:MTFH99588_2007-02-28_00-43-21_TKU002860&type=comktNews&rpc=44
Tue Feb 27, 2007 7:43pm ET

TOKYO, Feb 28 (Reuters) - The Tokyo Stock Exchange said on Wednesday that trade in TOPIX futures <0#JTI:> had been temporarily halted for 15 minutes until 9:22 a.m. after a large drop in prices.

Under TSE rules, trade in TOPIX futures is halted for 15 minutes if a fall or rise meets two conditions -- a move larger than a limit determined by the previous day's closing price and a move larger than a limit set by the "theoretical price" of futures.

The theoretical price is determined by the actual TOPIX price and such considerations as interest rates and dividend factors.

[Ghost Dog]

143. China not planning tax on stock gains -- report

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070227:MTFH98871_2007-02-27_23-55-03_SHA261291&type=comktNews&rpc=44
Tue Feb 27, 2007 6:55pm ET

SHANGHAI, Feb 28 (Reuters) - The Chinese government is not planning to tax stock gains, the Shanghai Securities News reported on Wednesday after rumours about such a tax drove domestic shares down 8.8 percent on Tuesday.

The China slide upset investment markets worldwide.

Officials at China's Finance Ministry and tax authorities denied the rumours, saying the government was not planning to levy such a capital gain tax, the official newspaper said in a front-page report.

China stopped taxing gains from stock trade in 1994 to promote the development of its stock market, the newspaper said.

Chinese stocks plunged nearly 9 percent on Tuesday, erasing about $140 billion of value in their biggest fall for a decade, amid fears that authorities would crack down on the speculation that had driven shares to record highs, analysts said.

The tumble came a day after the main index jumped to an all-time high, bringing its gains for this year to 14 percent. The market soared 130 percent last year, making it the world's best-performing major market.

The market was hit by several negative rumours in late trade, including talk that authorities would take strong steps to cool speculative activity, they said on Tuesday.

/...

[citizen snips]

147. Sector Wrap: Oil Stocks Pummeled

NEW YORK (AP) -- Shares of oil-related companies slumped Tuesday, as broader stock indexes plunged on fears that the U.S. and Chinese economies are cooling.

The Amex Oil Index dropped 3.5 percent, while the Philadelphia Oil Service Sector Index fell 3.3 percent. All 28 stocks in both indexes declined.

Investors fretted as stock markets across the globe sank, sparked by a 9 percent slide in Chinese stocks, and a U.S. Commerce Department report showing orders for durable goods in January dropped by the largest amount in three months. A day earlier, former Federal Reserve Chairman Alan Greenspan said the U.S. may be headed for a recession.

The Dow Jones industrials fell 546.02, or 4.3 percent, to 12,086.06 before recovering some ground in the last hour of trading to close down 416.02, or 3.3 percent, at 12,216.24, according to preliminary calculations.

more...
http://biz.yahoo.com/ap/070227/integrated_oil_sector_snap.html?.v=1

[citizen snips]

148. Sector Wrap: Steel Takes a Hit

NEW YORK (AP) -- Steelmaker shares suffered a steep slide on Tuesday, as the Dow Jones Industrial Average took its deepest dive in more than five years.

The steel sector was among the hardest hit as the broader market plunged on a sharp pullback in Chinese stocks and growing concerns that the U.S. and Chinese economies are slowing. Comments a day earlier from Federal Reserve Chairman Alan Greenspan that the U.S. could be headed for a recession also spooked traders.

The Dow Jones U.S. Steel Index dropped 25.47 points, or 7 percent, to close at 337.41.

The Dow fell 546.02, or 4.3 percent, to 12,086.06 before recovering to 12,216.24, down 416.02, at the close. It was the Dow's worst fall since the first day of trading following the Sept. 11, 2001 terrorist attacks.

more...
http://biz.yahoo.com/ap/070227/steel_sector_wrap.html?.v=1

[citizen snips]

150. Sector Wrap: Pharmaceuticals Fall

NEW YORK (AP) -- Shares of major pharmaceutical companies dipped Tuesday as the Dow Jones industrials closed down more than 400 points, but a few glimmers of good news managed to keep the sector above most other industries.

The Dow shed 416.02, or 3.3 percent, to end at 12,216.24, having fallen more than 500 points earlier in the session. The decline dragged the Nasdaq down more than 100 points in intraday trading. The American Stock Exchange's pharmaceutical index, which carries industry heavyweights such as Merck & Co. and Bristol-Myers Squibb, shed 8.69 points, or 2.5 percent, to end at 343.27.

The market plunge was triggered by a 9 percent drop in Chinese stocks followed by data suggesting the U.S. economy is slowing faster than anticipated. On Monday, former Federal Reserve Chairman Alan Greenspan suggested the U.S. could be headed for a recession.

Positive news on several fronts helped keep pharmaceuticals afloat relative to other sectors, including news that Pfizer Inc. won its patent dispute with generic drug developer Mylan Laboratories Inc. over the blood pressure drug Norvasc. The decision keeps Mylan from launching a generic version until September. The decision comes as Pfizer contends with several of its biggest moneymakers either going off-patent or nearing that date.

more...
http://biz.yahoo.com/ap/070227/sector_wrap_pharmaceuticals.html?.v=1

[citizen snips]

151. DJIA Leaders & Laggards: DIS, GM, PG

NEW YORK (AP) -- Walt Disney Co. suffered the biggest loss on the Dow Jones Industrial Average Tuesday as a severe drop in Asian markets extended to the U.S.

The index lost 416.02 to 12,216.24. All 30 stocks on the index fell.

Shares of Walt Disney gave up $2.01, or 5.7 percent, to close at $33.10 on the New York Stock Exchange. The company sued the city of Anaheim, Calif., this week over a residential project which would add low-cost housing in the city's resort district.

News of stronger competition and greater difficulties in a potential purchase of Chrysler Group helped send General Motors Co. stock down $1.81, or 5.3 percent, to $32.16 on the NYSE.

more...
http://biz.yahoo.com/ap/070227/djia_laggards_close.html?.v=1

[citizen snips]

152. Nasdaq Leaders & Laggards: MRVL, AKAM

Akamai and Celgene Decline; Marvell Technology Group Emerges As Only Winner on Nasdaq 100

NEW YORK (AP) -- Shares of Akamai Technologies Inc., which makes technology that allows companies to deliver online ads, video and other content, dropped Tuesday amid heavy losses on the Nasdaq 100 on a down day for many markets worldwide.

The Nasdaq 100, which includes 100 of the biggest non-financial securities traded on the Nasdaq, fell 74.32, or 4 percent to 1,756.27.

The broader Nasdaq composite index lost 96.65, or 3.9 percent, to 2,407.87, joining a slide that started in China and continued throughout world markets.

Akamai, slipping along with many other Internet stocks, tumbled $4.11, or 7.4 percent, to $51.37.

more...
http://biz.yahoo.com/ap/070227/apfn_nasdaq_100_laggards.html?.v=1

[citizen snips]

153. S&P 500 Leaders & Laggards: FCX, RSH

NEW YORK (AP) -- Freeport-McMoRan Copper & Gold Inc. was among other metals stocks dragging the Standard & Poor's 500 Index lower Tuesday after a severe drop in Asian markets set off a chain reaction in U.S. markets.

Freeport-McMoRan gave up $6.17, or 10 percent, to end at $56 on the New York Stock Exchange.

The S&P 500 Index was down 50.33 to finish at 1,399.04.

PMC-Sierra Inc. slipped with the rest of the technology sector, giving up 59 cents, or 8.1 percent, to close at $6.72 on the Nasdaq Stock Market.

more...
http://biz.yahoo.com/ap/070227/apfn_s_p_500_laggards.html?.v=1

[citizen snips]

154. Small Caps Get Hit Hard in Downturn

NEW YORK (AP) -- Small-cap stocks that have beaten the large-cap Goliaths for much of the past decade may have met their match in the market's plunge.

The Russell 2000 index of smaller companies took a painful 3.77 percent hit Tuesday, compared to a 3.47 percent drop in the Standard & Poor's 500. Just a day earlier, on Monday, the Russell was enjoying a 4.6 percent gain since the beginning of the year, while the S&P 500 index was up a comparatively small 2.2 percent.

With plenty of excess cash in the market, investors were willing to take a risk on fledgling companies. But throw in the uncertainties that took the market down sharply Tuesday -- the possibility of slowing economies in the U.S. and China, nervousness about the housing market and overall worries about a stock market correction -- and small caps suffered a bigger blow than other stocks.

For seven out of the past eight years, small cap stocks advanced further than large caps. Investors saw big benefits to these companies: Because they're young and under-the-radar, they are relatively inexpensive and have a lot of potential to grow.

more...
http://biz.yahoo.com/ap/070227/market_spotlight_small_caps.html?.v=1

[Ghost Dog]

155. US fund investors brace for effect of market drop

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=urn:newsml:reuters.com:20070228:MTFH99181_2007-02-28_00-15-43_N27423036&pageNumber=0&imageid=&cap=&sz=13&WTModLoc=HybArt-C1-ArticlePage2

BOSTON, Feb 27 (Reuters) - Millions of American mutual fund investors are bracing for losses in the wake of Tuesday's sharp market drop, which is likely to have hit Asian funds and small cap funds the hardest, portfolio managers, analysts, and advisers said.

"Whatever momentum we had for February has probably been erased. Many people will see the year's returns hit hard, if not erased completely," said Jeff Tjornehoj, an analyst at fund research firm Lipper Inc, a unit of Reuters (RTR.L: Quote, Profile , Research). Through last Thursday, the average U.S. stock fund returned 4.54 percent, Lipper data show.

...

Analysts and other managers agreed with Oberweis that the the 9 percent decline in China's market, where many companies had been trading at 40 times expected earnings or about double the valuations in Hong Kong, was long overdue.

But they are not yet sure how much further prices will fall and how vulnerable the roughly 52 China funds, which returned 6.23 percent on average this year, will be.

"There is the possibility that when things get going they get out of control, and the reaction in the U.S. market was some indication of that," Oberweis said, adding, "that is the one concern I have."

Even conservative investors who avoided China are likely to suffer the fallout from Tuesday's rout, because by the end of the day the trouble had spread to include U.S. household names, which are likely to affect more offerings in the $10 trillion mutual fund industry.

"Something happened between noon, when the China matter seemed to have been fully digested, and 3 pm," said Thomas Metzold, a vice president and portfolio manager at Eaton Vance, explaining that investors who gravely underestimated risk got a "wake-up call."

Metzold and others said fears about U.S. companies that make loans to riskier borrowers fed the decline and that funds holding shares of financial companies such as JPMorgan Chase (JPM.N: Quote, Profile , Research), which dropped 3.13 percent on Tuesday, or Citigroup (C.N: Quote, Profile , Research), which fell 3.95 percent, will be hurt.

Financial services funds have returned 3.05 percent this year, according to Lipper data, and analysts expected those gains to be wiped out. Also gains among small cap stock funds that specialize in companies that do a lot of business overseas may be erased, they added.

And funds that bet the U.S. dollar would gain against the Japanese yen or euro, like some of the Rydex offerings, are also likely to have taken a hit after the greenback suffered, analysts said.

/...

[Contrite]

165. Glad I cashed my MF out last week.

So I kept my gains.

[citizen snips]

159. Swiftness of Dow Drop Due to Computers

NEW YORK (AP) -- When the Dow Jones industrial average plunged to its low of the session Tuesday, it happened with incredible swiftness -- a matter of seconds -- because of a computer glitch that kept some trades from being immediately reflected in the index of 30 blue chip stocks.

Dow Jones & Co., the media company which manages the flagship index, said around 2 p.m -- just two hours before the New York Stock Exchange was to close -- it was discovered computers were not properly calculating trades. The company blamed the problem on the record volume at the NYSE, and switched to a backup computer.

The result was a massive swoon in the index that happened in the seconds it took Dow Jones to switch to its secondary computers.

"The market's extraordinary trading volume caused a delay in the Dow Jones data systems," said Dow Jones spokeswoman Sybille Reitz. "We decided to switch over to the backup system, and the result was a rapid catch-up in the published value of the Dow Jones industrial average."

more...
http://biz.yahoo.com/ap/070227/wall_street_what_happened.html?.v=5

[Ghost Dog]

163. They must mean, to add on the extra processing power.

(and I'm an ex-London 'Big Bang' stock-exchange systems engineer (from, oh, twenty+ years ago) :eyes:
) <- ed. closing bracket. And, watch now Tokyo's TOPIX melt down again...

Anyway. Automatic pilot set, here. I'll be getting some kip. :hi:

[ozymandius]

166. At long last - here's the closing blather

4:20 pm : With earnings growth expected to slow to near 5% for Q1, and perhaps check in at just 7% for Q2 and Q3, there were already concerns the market was getting ahead of itself, especially since stocks have run virtually unabated since bottoming in July.

Add to that concerns the Chinese government may step up its efforts to curb speculative buying interest, as evidenced by the biggest one-day decline on Shanghai Composite Index in 10 years, and stock markets across the globe that were primed for a correction witnessed one of the worst days in recent memory.

Throw in renewed geopolitical tensions (i.e. a failed assassination attempt on Vice President Dick Cheney), a weak durable goods report, and underlying sub-prime lending concerns, and a market long overdue for some sort of corrective activity sold off.

The Dow was down as much as 546 points (-4.3%), before bouncing back to close down 416 points. That was still the biggest one-day point decline since the markets reopened on September 17, 2001 (-7.1%), leaving the Dow in negative territory for the year; all 30 components suffered losses.

The S&P 500, where only one of its 147 industry groups closed in positive territory, finished lower for a fifth consecutive session - its longest losing streak in three years. The broader market, with all 10 economic sectors averaging losses of 3.5%, posted its first decline of more than 2% since May 2003.

The VIX (CBOE Volatility Index) and the VXN (CBOE Nasdaq Volatility Index) soaring 59% and 39%, respectively, further underscored the heightened anxiety witnessed in today's session. Known as "investor fear gauges," the spikes higher on both indexes suggested investors were actively buying put options in anticipation that too much money floating around will lead to more market declines, with things likely getting worse before they get better. BTK -3.69% DJ30 -416.02 DJTA -3.43% DJUA -2.88% DOT -3.96% NASDAQ -96.66 NQ100 -4.06% R2K -3.74% SOX -3.06% SP400 -3.08% SP500 -50.33 XOI -3.50% NASDAQ Dec/Adv/Vol 2834/285/3.05 bln NYSE Dec/Adv/Vol 2904/469/2.27 bln

[Robbien]

167. Stratfor: China's Engineered Drop

This was an engineered drop.

The Chinese government has become increasingly concerned about levels of investment in its economy or, more accurately, the sheer amount of money that is chasing projects. State firms with limitless access to subsidized capital from state banks have used that access to launch thousands of nonprofitable firms. This glut in "investment" money drives up the cost of commodities and adds industrial capacity without actually producing anything of much use, making life more difficult for the average Chinese and unduly harming relations with foreign powers that face a glut of otherwise noncompetitive Chinese goods.

This penchant for overinvestment has now spread to the stock market in two ways. First, the same politically connected government officials who started dud companies are taking out loans to buy shares, or are using shares they already hold as collateral for new loans. Second, ordinary Chinese citizens have started borrowing -- sometimes against their homes -- in order to play the market. In January, the number of total traders on the Chinese exchanges grew by 1.38 million, an increase of 134 percent from a month earlier, while stock turnover was up 700 percent from a year earlier.

The net result is an absurd stock surge with no basis in fundamentals. At present, some Chinese banks now have price-to-earnings ratios higher than financial behemoths such as Deutsche Bank and Chase, despite deplorable management and a history of highly questionable lending policies.

For the past few months, the government has been working to drive down this speculative investing. On Feb. 26, China's State Council launched a new "special task force" that accurately could be referred to as the "get-those-idiots-to-stop-borrowing-to-gamble-on-the-stock-exchanges" team. Its express goal is to get the Chinese domestic security brokers to lay off such speculative decision-making, while also putting a crimp in the source of the subsidized capital.

Day one started by the script, and Beijing is likely quite pleased with the way things are going (or at least it was until its actions unintentionally triggered a global meltdown). Also, since the Shanghai exchange is actually still up 3 percent for the past week despite suffering its largest drop in a decade, the State Council probably hopes for more drops in the days ahead.

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