STOCK MARKET WATCH, Tuesday April 17

[ozymandius]

Source: DU

Tuesday April 17, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 643 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2298 DAYS
WHERE'S OSAMA BIN-LADEN? 2008 DAYS
DAYS SINCE ENRON COLLAPSE = 1968
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 9
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

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

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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 April 16, 2007

Dow... 12,720.46 +108.33 (+0.86%)
Nasdaq... 2,518.33 +26.39 (+1.06%)
S&P 500... 1,468.47 +15.62 (+1.08%)
Gold future... 694.50 +4.60 (+0.66%)
30-Year Bond 4.89% -0.04 (-0.73%)
10-Yr Bond... 4.74% -0.03 (-0.55%)






GOLD, EURO, YEN, Loonie and Silver

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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

---

Read more: DU

[ozymandius]

1. Today's Market WrapUp

Broken Promises
The Baby Boomer's Lament
BY TONY ALLISON

“How do we get around the promise that was made when people got into Social Security? How do you suggest that we tell the American people?”

Senator Jim Bunning posed these questions to Federal Reserve Chairman Ben Bernanke during his Senate testimony in January of this year. Mr. Bernanke had no real answer, because there is no “happy” answer. The promises that were made for both Social Security and Medicare will not be kept for the Baby Boom generation, at least not with dollars that have any buying power.

-cut-

A series of increases in FICA and Medicare taxes over the past 25 years was supposed to secure the retirement system for future generations. Unfortunately, those surplus funds that flowed into the system have all been spent, replaced with paper IOU’s worth less than the cost of the paper. Future retirees should understand that they can’t count on Social Security. It will be inflated and means-tested into oblivion. And later qualifying ages are already a reality.

The key point is that for those retiring in the next decade and beyond, the individual is going to be more and more responsible for providing for his/her well being in retirement. Your greatest security will ultimately come from how much you save, how well you invest, and how well you manage your own assets. This is not the message the average Baby Boomer wants to hear, but it is the reality of America in the 21st century.

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

[ozymandius]

2. Today's Reports-a-plenty

8:30 AM CPI Mar
Briefing Forecast 0.7%
Market Expects 0.6%
Prior 0.4%

8:30 AM Core CPI Mar
Briefing Forecast 0.2%
Market Expects 0.2%
Prior 0.2%

8:30 AM Housing Starts Mar
Briefing Forecast 1495K
Market Expects 1500K
Prior 1525K

8:30 AM Building Permits Mar
Briefing Forecast 1520K
Market Expects 1515K
Prior 1532K

9:15 AM Industrial Production Mar
Briefing Forecast 0.2%
Market Expects 0.0%
Prior 1.0%

9:15 AM Capacity Utilization Mar
Briefing Forecast 82.0%
Market Expects 81.9%
Prior 82.0%

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

[UpInArms]

18. 8:30 reports:

01. U.S. March CPI energy prices up 5.9%, biggest since 9/05
8:30 AM ET, Apr 17, 2007 - 52 seconds ago

02. U.S. CPI core up 2.5% in past 12 months
8:30 AM ET, Apr 17, 2007 - 52 seconds ago

03. U.S. March Midwest starts up 44%
8:30 AM ET, Apr 17, 2007 - 52 seconds ago

04. U.S. CPI up 2.8% in past 12 months
8:30 AM ET, Apr 17, 2007 - 52 seconds ago

05. Starts, building permits slightly higher than expected
8:30 AM ET, Apr 17, 2007 - 52 seconds ago

06. U.S. March CPI largest gain since April 2006
8:30 AM ET, Apr 17, 2007 - 52 seconds ago

07. U.S. building permits down 26% year-on-year
8:30 AM ET, Apr 17, 2007 - 52 seconds ago

08. U.S. March core CPI up 0.1% vs. 0.2% expected
8:30 AM ET, Apr 17, 2007 - 52 seconds ago

09. U.S. housing starts down 23% year-on-year
8:30 AM ET, Apr 17, 2007 - 52 seconds ago

10. U.S. March CPI up 0.6% vs 0.7% expected
8:30 AM ET, Apr 17, 2007 - 52 seconds ago

11. U.S. March single-family starts up 2% to 1.22 mln
8:30 AM ET, Apr 17, 2007 - 52 seconds ago

12. U.S. March building permits up 0.8% to 1.54mln
8:30 AM ET, Apr 17, 2007 - 52 seconds ago

13. U.S. March housing starts up 0.8% to 1.52 mln
8:30 AM ET, Apr 17, 2007 - 52 seconds ago

[UpInArms]

19. 9:15 reports:

06. U.S. March industrial production falls 0.2% vs -0.1 expected
9:16 AM ET, Apr 17, 2007 - 11 minutes ago

07. U.S. March motor vehicle output up 0.2%
9:15 AM ET, Apr 17, 2007 - 12 minutes ago

08. U.S. March business equipment output up 0.8%
9:15 AM ET, Apr 17, 2007 - 12 minutes ago

09. U.S. March utility output falls 7.0%
9:15 AM ET, Apr 17, 2007 - 12 minutes ago

10. U.S. March manufacturing output up 0.7%
9:15 AM ET, Apr 17, 2007 - 12 minutes ago

11. U.S. March capacity utilization falls to 81.4%
9:15 AM ET, Apr 17, 2007 - 12 minutes ago

[ozymandius]

3. Oil prices up slightly in Europe

VIENNA, Austria - Oil prices rose Tuesday as traders weighed the restart of a key U.S. oil refinery against expectations that U.S. gasoline inventories would keep falling.

The market was also poised to react to potential elections-related violence in Nigeria.

Light, sweet crude for May delivery was up 42 cents at $64.03 a barrel in electronic trading on the New York Mercantile Exchange by midday in Europe. Slow trading is not unusual ahead of a contract's expiration. The May futures contract expires Friday.

-cut-

Traders were looking ahead to Wednesday's weekly U.S. petroleum inventory report, which is expected to show rising crude stocks and falling gasoline and distillate supplies, according to a survey of analysts by Dow Jones Newswires.

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

[ozymandius]

4. Brazil defends ethanol deal at summit

PORLAMAR, Venezuela - Brazil is defending its ethanol agreement with the United States, despite efforts by Venezuelan President Hugo Chavez to undermine the deal using his country's vast reserves of oil and natural gas.

Chavez did not publicly discuss his dispute over ethanol with Brazilian President Luiz Inacio Lula da Silva at the start of a two-day energy summit Monday, but the Venezuelan leader has pledged to explain his objections to last month's U.S.-Brazil ethanol agreement.

Chavez, a staunch critic of U.S. President George W. Bush, has warned that Brazil's deal with Washington would monopolize arable lands and starve the poor — concerns shared by his Cuban ally Fidel Castro.

-cut-

The U.S. and Brazil are the world's two biggest producers of ethanol — the alcohol-based fuel made from crops such as sugarcane or corn. They signed an "alliance" last month to promote its production in the region and create international quality standards to allow it to be traded as a commodity like oil.

http://news.yahoo.com/s/ap/20070417/ap_on_bi_ge/venezuela_energy_summit_6

[Ghost Dog]

41. Expensive Ethanol Eggs (by The Mogambo Guru)

http://www.dailyreckoning.com/RSS/DR041607sec1.html

"And if the chickens are happier, see, then the eggs are not affected by, for example, stress hormones, and thus they are, somehow healthier! So, the eggs are of higher quality!"

by The Mogambo Guru

From Junior Mogambo Ranger (JMR) Ajit V. we get the link to NationalPriorities.org where we find the essay "Where Do Your Tax Dollars Go?" Well, as it turns out, this is not a rhetorical question, and we immediately learn where it goes:

Military ($558 billion), Health ($428.5 billion), Interest on the Debt ($398.6 billion), Income Security ($123.5 billion), which, "includes federal funds outlays on the function area income security with the exception of housing assistance, and food and nutrition assistance."

What?!? Well, before I could work up a good hissy-fit of confusion and indignation at the fact that the government is just giving people so much cash that it equals $1,000 for every non-government worker in the whole country, the list continues with Education ($93.2 billion), Veterans' Benefits and Services ($68.9 billion), Nutrition ($53.9 billion), Housing ($38.3 billion), Natural Resources and the Environment ($31.3 billion), and Job Training ($6 billion).

And if that's not enough, the category labeled "Other" was larded with $254.8 billion in spending, including "everything else not listed above and is comprised of the following function and subfunction areas: international affairs outside of international security assistance (included above in military); general science, space and technology; energy; agriculture; commerce and housing credit; transportation; community and regional development; labor and social services outside of training and employment services; justice; general government; and undistributed offsetting receipts."

I get a creepy, lost feeling, like I am in some kind of bizarre-world of strange, new laws of physics when I contemplate that the government is spending so much money on all this stuff that is mentioned nowhere, or even hinted at, in the Constitution, and then made even more horrifying by the brain-busting proposition that "undistributed offsetting receipts" is listed as "spending."

/...

Ah, and the full (last week's) text is now here: http://www.dailyreckoning.com/Writers/Mogambo/DREssays/MG041207.html

Inflation Induced Brouhaha

"In short, inflation in food prices, and all other prices, is everywhere you look, which is certainly understandable, since everywhere you look there are central banks creating more money and credit, and governments running budget deficits!"

[ozymandius]

7. ConocoPhillips, Tyson to Make Biodiesel from Fat

NEW YORK/HOUSTON (Reuters) - Oil company ConocoPhillips and meat producer Tyson Foods Inc. plan to work together to produce biodiesel from animal fat, the companies said on Monday.

Beef, pork and chicken fat from Tyson rendering plants will be processed at ConocoPhillips refineries to create transportation fuel.

ConocoPhillips, the third-largest U.S. oil company, said it plans to spend about $100 million over a 3 year to 5 year period to prepare several refineries to process the fuel. It said the diesel will first be produced at its Borger, Texas, refinery.

Tyson, the world's largest chicken, beef and pork processor, said it will make capital improvements this summer at some of its rendering plants so it can start pre-processing animal fat.

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=consumerProducts&storyID=2007-04-16T220235Z_01_N16293407_RTRIDST_0_SP_PAGE_016-N16293407-OISCP.XML

[Ghost Dog]

30. Oil rebounds following pipeline leak

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7Bbd2f5466%2D761f%2D4916%2D93f8%2D1186254ca23e%7D

Oil prices rebounded on Tuesday as news of a leak in a major Canadian pipeline which supplies the US helped crude recover after weakness on Monday. ICE June Brent rose 46 cents to $67.71 a barrel while Nymex May West Texas Intermediate added 44 cents at $64.05 a barrel in electronic trade. The disruption to supplies to the US mid-West was caused by a leak in the 450,000 barrels a day Line 3 pipeline on Sunday night. Embridge, the Canadian company would not say how long the disruption would last but said the pipeline was still pumping oil from terminals south of the leak. The news of the leak helped crude prices stabilise after a fall on Monday, prompted by reports that Royal Dutch Shell would resume production by the end of the month at its 380,000 b/d Forcados oilfield in Nigeria which has been closed since February 2006. Militants in the Niger Delta has disrupted oil production in Nigeria, the world’s eighth largest oil exporter. Violence errupted again over the weekend during state elections in the run-up to the presidential vote on April 21 amid allegations of voting rigging.

[ozymandius]

5. $2.8 million verdict against Allstate

NEW ORLEANS - Attorneys say a federal jury that awarded more than $2.8 million to a man who lost his home to Hurricane Katrina sends a strong message to insurers who refused to pay thousands of other homeowners for damage from the storm.

"Insurers should worry about taking any case to a jury," said David Rossmiller, a Portland, Ore.-based attorney who writes a Web journal on Katrina insurance cases and other industry issues.

The U.S. District Court jury decided Monday that Allstate Insurance Co. did not pay Robert Weiss, of Slidell, enough money to cover wind damage to his home. Allstate had claimed that most of the damage was due to storm surge, an event not covered in its policy.

But the jury concluded that the Northbrook, Ill.-based insurer owes Weiss $561,600 for wind damage to his home and its contents, plus another $2.25 million in damages and penalties for not paying the claim quickly enough following the Aug. 29, 2005, storm.

http://news.yahoo.com/s/ap/20070417/ap_on_bi_ge/katrina_insurance

[ozymandius]

6. Sallie Mae agrees to sell for $25 billion

A group of investors announced plans Monday to buy Sallie Mae, taking the nation's largest student lender private in a $25 billion deal that comes as some regulators call for tougher standards and lower federal subsidies for the $85 billion college loan industry.

Private-equity firm J.C. Flowers & Co. and three other investors will pay $60 per share for the Reston, Va.-based SLM Corp., commonly referred to as Sallie Mae. The sale price represents a nearly 50 percent premium for Sallie Mae's previously sagging stock before takeover rumors emerged late last week.

SLM shares traded up more than 17 percent on the New York Stock Exchange after the buyout was announced Monday.

J.C. Flowers and private-equity firm Friedman Fleischer & Lowe will invest $4.4 billion and own 50.2 percent of the company. Bank of America and JPMorgan Chase each will invest $2.2 billion and each will own 24.9 percent. The buyers will also provide Sallie Mae with $200 billion in backup financing.

http://seattlepi.nwsource.com/business/311865_salliemae17.html

[UpInArms]

11. Deal to Make Sallie Mae a Big Debtor

http://www.nytimes.com/2007/04/17/business/17sallie.html?ex=1334462400&en=c9aa405a18c9fa03&ei=5088&partner=rssnyt&emc=rss

Sallie Mae has long profited from making loans to college students. Now, the company will be saddling itself with debt in an effort to generate even more lucrative returns.

Yesterday, Sallie Mae, as the SLM Corporation is known, agreed to be taken private for $25 billion amid a private equity wave that has swept Wall Street and as calls are heard in Washington to reduce federal subsidies for student loans.

As the largest buyout of a financial services company, the deal has the potential to not only transform Sallie Mae but shake up the entire lending industry.

The buyout will put the company in the hands of two private equity investors, J. C. Flowers and Friedman Fleischer & Lowe, and two banking giants, Bank of America and JPMorgan Chase.

Although the buyers are investing a total of $8.8 billion of their own money, the remaining $16.2 billion will be financed with debt. Together, the two buyout firms will control 50.2 percent of the company, while the banks will provide Sallie Mae with up to $200 million in backup financing and own the remaining stake.

...more...

[AnneD]

43. Uh....

I think I mentioned that a day or so ago, and I mentioned it again yesterday. I wish I could say the crystal ball works, but this was independent thinking with the right facts. Flip that cash cow baby.

NPR had a really good story on this and I'll try to dig it up. I hope the deal gets nixed because middle class kids are going to be sold into slavery over this.

[AnneD]

44. Sallie Mae Sold to Private Group for $25 Billion

http://www.npr.org/templates/story/story.php?storyId=9605714

I am not sure how this will work. Hope it does. It is audio and a very good summary story.

[ozymandius]

8. Coca-Cola 1Q profit jumps 14 perent

ATLANTA — The Coca-Cola Co., the world's largest beverage maker, said Tuesday its first-quarter profit jumped 14 percent on a double-digit rise in sales despite problems in its North America unit.

The results, announced before the market opened, beat Wall Street expectations.

The Atlanta-based company said it earned $1.26 billion, or 54 cents a share, for the three months ending March 30, compared to a profit of $1.11 billion, or 47 cents a share, for the same period a year ago.

Excluding one-time items, Coca-Cola said it earned $1.29 billion, or 56 cents a share, in the quarter. On that basis, analysts surveyed by Thomson Financial were expecting earnings of 53 cents a share.

http://www.chron.com/disp/story.mpl/ap/business/4721619.html

[ozymandius]

9. Time Warner said to mull selling cable holdings

World's largest media conglomerate considering whether to unload cable TV stock because of competition from Internet, says report.

April 17 2007: 6:02 AM EDT

NEW YORK (Reuters) -- Time Warner executives are weighing whether the company should reduce its cable-TV holdings amid competition from the Internet, the Wall Street Journal reported on its Web site on Tuesday.

A complete exit from cable TV is the least likely course, the Journal said, citing unnamed sources.

-cut-

Time Warner Cable is the nation's No. 2 cable company behind Comcast.

http://money.cnn.com/2007/04/17/news/companies/time_warner.reut/index.htm?postversion=2007041706

[UpInArms]

10. dollar watch

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

Last trade 81.997 Change -0.136 (-0.17%)

G7 - Did Not Stand in the Way of Carry Trades

http://www.dailyfx.com/story/special_report/special_reports/G7___Did_Not_Stand_1176747006157.html

excerpt:

Nonetheless, subsequent comments were made in regards to the Chinese and emerging market economies, with policy makers stating that China in particular should adopt more flexible currency regimes. The sentiment was echoed by Secretary Paulson. However, the tone was surprisingly more aggressive compared to previously subtle tones issued by Paulson at the start of his tenure. “Greater exchange rate flexibility and stronger domestic demand in China are critical parts of rebalancing, and it is crucial that China move now with greater urgency.” The recent tone is seemingly a product of frustration as Chinese officials are now losing what seems to be its one friend in Washington.

Don’t Expect Anything from April 16 Washington Talks

Following the G7 meeting Chinese officials are scheduled to meet with US heads, including US Secretary Henry Paulson, in their own round of talks. The aim: recent US Commerce Department sanctions regarding Chinese exports. Although previously speculated to cover generic trade talks, the meeting has shifted to address the recent spate of tariffs headed towards the way of Chinese exporters. But will a separate meeting do any good to repair already rising widening tensions. The answer is a resounding no. Ahead of the weekend, both Finance Minister Jin Renqing and Central Bank Governor Zhou Xiaochuan announced their absence from this weekend’s G7 and Washington meeting, citing domestic issues. This will leave prominent understudies, Vice Finance Minister Li Yong and central bank Vice Governor Hu Xiaolian, attending the round of Washington negotiations in their absence. The fact that notable understudies will be in attendance will support the likelihood that nothing new will emerge this weekend as both Li and Hu have limited governance in overall economic and political policy. Ultimately, this will leave many with little expectations, hoping for the next time the two sides can meet. Subsequently, both sides continue to down play the speculated trade war with the most recent comments arising from US Commerce Secretary Carlos Gutierrez. Gutierrez has recently deemed the impending conflict “way overblown” and will likely end in both sides reconciling differences

Currency Market Implications

Given the lack of any real pertinent statements out of Washington this past weekend, the carry trade notion is going to persist, at least in the short term. With economic leaders not even citing recent under-appreciation in the Japanese yen, the market will likely continue to invest in higher yielding carry candidates while remaining on the yen shortside. It seems, as a result, that the Bank of Japan is the only one who can rescue the yen from continued bearish selling. But who would want to considering a lower currency is likely to boost export sector strength. The notion will comparably continue to support massive bidding for the sterling, Aussie, and Kiwi currencies. However, one caveat to near term buying will be the approaching technical tops and overextended environment. With traders on one side of the market, who’s left to push the currency pair higher? The looming bearish gloom will likely spark some concerns, rather than market fears, of a near term pullback before any further gains can be made.

...more...

Pound Clears 2.000 - Can it Stay There?

http://www.dailyfx.com/story/dailyfx_reports/daily_brief/Pound_Clears_2_000___Can_1176806536150.html

Hotter than expected UK CPI data fueled a massive rise in the pound tonight as the currency breached the 2.000 barrier for the first time since 1992. UK CPI rose to 3.1% from 2.8% forecast on the back of large price gains in furniture, clothing and footwear as UK’s red hot housing market is clearing putting upward pressure on consumer goods. In his letter to Chancellor Brown explaining why the CPI rate exceeded the MPC target by more than 1% BoE Governor Mervyn King noted that. “Spending in the UK economy, associated with continuing rapid growth of money and credit has recovered from the slowdown in 2005.” Tonight’s CPI news nearly guarantees a 25bp rate hike by the BoE at the May MPC meeting with many market participants now pricing in yet another rate hike before year end.

The inflation data proved positive for pound longs as the currency pushed through the 2.000 level erasing option barriers. However, no sooner did it break that level, cable quickly fell back as profit taking and fresh speculative short positions kicked in. When it hit the 2.000 figure in 1992 the currency spent only a brief amount of time at those price levels before being expelled from the ERM system. However, today’s price reaction is likely to be quite different. The US economy is mired in a housing led slowdown that will force US monetary policy to remain neutral for the foreseeable future. Meanwhile UK economic growth could produce two more rate hikes this year. As the interest rate differential between the two currencies begins to widen, GBPUSD may well remain above the 2.000 level for quite some time, especially is US data continues to falter.

In Euro zone today, the ZEW survey printed much better than expected at 16.5 versus 10 forecast. The news however was overshadowed by the developments in the pound and the euro actually sold off on the report driven by order flows in the EURGBP cross. Nevertheless, the rebound in the ZEW readings is a testament to the strength of the German economy and bodes well for further EURUSD gains as the pair targets all time highs at 1.3666 set in 2004.

Today, the US calendar contains CPI data which much like its UK counterpart could print hotter than forecast. However, the market will most likely focus on the Housing starts and Building Permits reports. Traders will want to see if the US housing sector continues to deteriorate. Certainly yesterday NAHB reading offered little cheer to dollar longs, but if today’s data shows a positive surprise the greenback may find some temporary reprieve from the constant selling of the past few days.

...more...

[Roland99]

21. Damn...brakes failing?

[Ghost Dog]

24. U.S. Dollar Index Breaking Down

http://usmarket.seekingalpha.com/article/32464
Posted on Apr 16th, 2007

http://imgred.com/

[AnneD]

45. Our theme song today....

I Love You for Sentimental Reasons

I love you for sentimental reasons
I hope you do believe me
I'll give you my heart

I love you
And you alone were meant for me
Please give your loving heart to me
And say we'll never part

I think of you every morning
Dream of you every night
Darling I'm never lonely
Whenever you're in sight

I love you for sentimental reasons
I hope you do believe me
I've given you my heart

I think of you every morning
Dream of you every night
Darling I'm never lonely
Whenever you're in sight

<snip>


I could do the obvious but I think Nat King Cole is a good call today.

[Ghost Dog]

26. Dollar falls to 2-yr low vs euro on soft CPI data

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=usDollarRpt&storyID=2007-04-17T143556Z_01_N17403448_RTRIDST_0_MARKETS-FOREX-UPDATE-10.XML
Tue Apr 17, 2007 2:36 PM BST

NEW YORK, April 17 (Reuters) - The dollar fell to a 2-year low versus the euro on Tuesday after a report showed core U.S. consumer prices rose by less than expected in March, which may make the Federal Reserve more inclined to cut interest rates.

The dollar also fell against the yen and sterling, which punched through $2 to hit its highest in almost 15 years.

Consumer prices rose 0.6 percent last month, the Labor Department said, although excluding food and energy costs, they expanded 0.1 percent, below economists' median forecast for a 0.2 percent increase. For details, see . In another report, U.S. March industrial output fell 0.2 percent.

The reports "are feeding into pre-existing dollar weakness," said Michael Woolfolk, a senior currency strategist at The Bank of New York. "There's less of an argument for the Fed to raise interest rates. It's decidedly dollar negative."

In midmorning trading in New York, the euro <EUR=> was up 0.4 percent on the day at $1.3576, after touching a two-year high of $1.3595, less than one cent below a record high of $1.3670. The dollar fell 0.5 percent to 119.10 yen <JPY=>.

Sterling <GBP=> was up 0.8 percent on the day at $2.0049, having hit its highest since September 1992. The pound breached the $2 level, last seen just before Britain exited the pre-euro Exchange Rate Mechanism in 1992, as data showed British consumer prices had accelerated at a 3.1 percent annual rate in March, its highest since comparable records began in 1997. Continued...

/...

[Ghost Dog]

28. European stocks hit new 6-yr high on tame U.S. data

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2007-04-17T124734Z_01_L17555002_RTRIDST_0_MARKETS-EUROPE-STOCKS-URGENT.XML
Tue Apr 17, 2007 12:47 PM BST

LONDON, April 17 (Reuters) - European stock markets bounced back into the black and a key index hit its highest level in more than six years after U.S. core consumer prices rose by less than expected and raised expectations of lower interest rates.

The pan-European FTSEurofirst 300 index <.FTEU3> hit an intra-day high of 1,573.2, up 0.1 percent, while U.S. stock index futures also rose.

Across Europe, the FTSE 100 index .FTSE index underperformed with a 0.4 percent drop after UK inflation topped 3 percent and the sterling punched through the psychological $2 mark to hits its highest in almost 15 years versus the dollar.

/..

[Ghost Dog]

34. UJ Inflation: what the analysts say

http://money.guardian.co.uk/businessnews/story/0,,-2059080,00.html
Tuesday April 17, 2007
Guardian Unlimited

Gavin Redknap of Standard Chartered Bank believes that the Bank of England's credibility will not be seriously harmed by the rise in the consumer price index to 3.1% in March.

He pointed out that Governor Mervyn King can cite a few excuses for this morning's sudden jump in inflation.

"Energy prices have started to rise again, and the rise in food prices – something being seen globally at the moment – is another thing that's virtually out of the BoE's control.

"Add to that the fact that education inflation is running at 14% year-on-year thanks to the impact of rising tuition fees and you have a situation that's embarrassing, but is not going to significantly harm the credibility of the Bank," he said.

...

"Favourable base effects should force down the annual rate of inflation by mid-2007, and the recent rise in the pound will do a lot to dampen imported goods inflation," he forecast.

Howard Archer of Global Insight agreed that interest rates will be raised to 5.5% next month, and predicted that the return of the two-dollar pound could prompt further rises.

"Although some of the spike up in inflation in March can be attributed to volatile items including a renewed firming in oil prices and higher food and milk prices, this cannot be used to explain away the whole jump. Worryingly core inflation climbed to 1.9% in March, while the rise in retail price inflation to a near 16-year high of 4.8% maintains the risk that wages could yet move higher," Mr Archer said.

...

"There is a very real risk that the retreat in inflation will be slower and less marked than currently anticipated given the evidence suggesting that firms are more confident in their pricing ability and are increasingly looking to raise prices to boost their margins, and oil prices firming markedly overall from their January lows," he said.

Gilles Moec of Bank of America pointed out that the inflation rise is broad-based, and said a 0.25% rise in interest rates next month was a "done deal".

...

He cautioned that wage pressure could prevent inflation falling back quickly, "since the RPI has also accelerated markedly, from 4.6% in February to 4.8% in March, which could prompt trade unions to upscale their wage claims".

/...

[54anickel]

27. Dollar Approaches Record Low Versus Euro After Inflation Report

http://www.bloomberg.com/apps/news?pid=20601083&sid=awwEz6n_6R.A&refer=currency

April 17 (Bloomberg) -- The dollar approached an all-time low versus the euro and declined against most major currencies as a government report on inflation added to concern the U.S. economy is slowing.

The dollar has lost 1 percent over the past four days, falling today to a more than two-year low on speculation Europe's economic performance will outpace that of the U.S. A British inflation report showing faster price pressure pushed the pound to advance above $2 for the first time in 15 years.

The U.S. data ``adds fuel to fire that the dollar will continue to trend lower,'' said Jeff Gladstein, global head of foreign-exchange trading in Wilton, Connecticut, at AIG Financial Products. ``The U.S. is going through a slowdown.''

snip>

Core consumer prices excluding energy and food rose 0.1 percent last month after a 0.2 percent rise in February, the Labor Department reported in Washington. The median forecast of 72 economists surveyed by Bloomberg was for a 0.2 percent gain in March. Core prices rose 2.5 percent from a year earlier, compared with a 2.7 percent increase in February.

`Not Friendly'

``The core inflation number is not friendly for the dollar,'' said Christian Dupont, a senior currency trader in Montreal at Societe Generale SA. ``Inflation is not threatening. It gives the Fed a little bit more room to move rates lower to spur growth later this year.''

more...

[54anickel]

29. Meanwhile - U.S. Foreclosures Double as Refinancing Gets Tougher (Update1)

http://www.bloomberg.com/apps/news?pid=20601103&sid=aUih6TnKypEg&refer=us

April 16 (Bloomberg) -- The number of U.S. homes entering foreclosure in the first quarter doubled from a year earlier as property prices stagnated and owners struggled to refinance mortgages.

Owners of 168,829 homes in the first three months of 2007 received notice that lenders had filed for foreclosure due to failure to pay loans or liens, Foreclosures.com said today in a statement. That compares with 83,154 homes in the same period of 2006, the Sacramento, California-based research firm said.

A four-year high in mortgage payment delinquencies and the failure or sale of 50 subprime mortgage companies, which provide loans to people with poor or limited credit histories, have made credit less available. The inability of homeowners to refinance their debt has added to the rise in foreclosures.

``A lot of folks have been borrowing and borrowing and borrowing to stay out of trouble,'' Foreclosures.com President Alexis McGee said in an interview. ``Now that there are less borrowers in the marketplace, where are they going to go? Unless lenders step up and offer money to these people, they'll be locked out.''

Riverside County, California, had a 172 percent rise in the number of homes entering the foreclosure process in the first quarter, the biggest increase of any county in the U.S., the company said.

more...

[Ghost Dog]

32. Canada's Dollar Rises to Four-Month High as Crude Oil Climbs

http://www.bloomberg.com/apps/news?pid=20601083&sid=aYeSsp_Jb5zE&refer=currency

April 17 (Bloomberg) -- Canada's dollar rose to the highest in more than four months as the prices of nation's main commodity exports increased.

The Canadian currency has gained 2 percent this month against the U.S. dollar on evidence of economic strength and amid increasing prices for commodities, accounting for 54 percent of exports.

``We've a nice push up in oil prices today,'' said Shaun Osborne, chief currency strategist in Toronto at TD Securities Inc. ``The backdrop is pretty supportive for the Canadian dollar.''

The Canadian dollar traded at 88.54 U.S. cents, reaching the highest since Nov. 28, at 10:25 a.m. in Toronto, from 88.37 yesterday. It reached a high of 88.59 cents today. One U.S. dollar buys C$1.1295.

Crude oil climbed in New York, trading above $64 a barrel, up more than 1 percent, on speculation of increasing demand before the summer driving season. Copper prices also advanced.

The currency is getting additional support from international acquisitions of the Canadian companies that fuel demand for the currency.

/...

[Ghost Dog]

35. Aussies bowl on as yen hits a ton

http://www.theaustralian.news.com.au/story/0,20867,21575479-643,00.html

WHEN the (Aussie) dollar touches 100 yen, as it looks likely to do within days, the Australian currency will have appreciated 19 per cent in 10 months, apparently a major change in terms of trade with our largest export customer.
Bulk mineral and energy exporters are obviously more concerned about the 12.5 per cent appreciation of the $A/$US in that time. But significant Australian export sectors are directly affected by the weak yen, particularly agriculture, inbound tourism and components manufacturing.

Australia is feeling the weak yen differently, however, from the European Union, South Korean and American manufacturers.

The obvious difference is that the others are major competitors with the Japanese exporters, whereas there's a high degree of complementarity between the Australian and Japanese traded-goods sectors. Clearly it's better to earn undervalued yen than to compete against it.

/continues...

[UpInArms]

12. Mattel's Profit Down 60%

http://www.nytimes.com/2007/04/17/business/17mattel.html?ex=1334462400&en=d295fadd4d7b425a&ei=5088&partner=rssnyt&emc=rss

LOS ANGELES, April 16 (AP) — Mattel reported a 60 percent decline in first-quarter profit Monday but beat Wall Street revenue expectations with strong sales, despite a decline in demand for Barbie dolls in the United States.

Mattel, the world’s largest toy maker, said earnings fell to $12 million, or 3 cents a share, from $30.2 million, or 8 cents a share, a year earlier when the company reported a $57 million gain from a foreign tax settlement.

Revenue climbed 19 percent, to $940.3 million from $793.3 million, topping the $848 million expected by analysts.

Domestic sales rose 10 percent, while international sales jumped 29 percent, the company said.

The company’s performance was off to a good start this year, with brands other than Barbie leading the way, Mattel’s chief executive, Robert A. Eckert, said during a conference call with Wall Street analysts.

...more...

[UpInArms]

13. I.R.S. Audits Middle Class More Often, More Quickly

http://www.nytimes.com/2007/04/16/business/16tax.html?em&ex=1176955200&en=dcbf0751b1afa212&ei=5087%0A

Middle-class Americans, listen up: the I.R.S. is much more likely to audit you this year. Those caught cheating can expect to pay about $4,100 more on average in income taxes.

Since 2000, authorities at the Internal Revenue Service have nearly tripled audits of tax returns filed by people making $25,000 to $100,000 as part of a broad change in audit strategy.

Audits of these middle-class taxpayers rose to nearly 436,000 last year, up from about 147,000 returns in 2000. For these 61 million individuals and married couples, who make up nearly half of all taxpayers, the odds of being audited rose from 1 in 377 to 1 in 140.

Kevin Brown, the I.R.S. deputy commissioner for services and enforcement, said the audits “were out of whack” in 2000, with far too little attention paid to the middle class and to the very highest income generators, those making $1 million or more. “We try to run a balanced audit program,” Mr. Brown said.

...more...

[UpInArms]

14. Profit Off 11% at Citigroup on Expenses of Overhaul

http://www.nytimes.com/2007/04/17/business/17citi.html?ex=1334462400&en=51ca7896e00f8626&ei=5088&partner=rssnyt&emc=rss

Citigroup said yesterday that its first-quarter earnings fell 11 percent because of a big charge for its recently announced overhaul. But the results showed progress in its expense management and strength in investment banking, and its shares rose 2.6 percent.

Signs of improvement come at a critical time for Citigroup’s chairman and chief executive, Charles O. Prince III. Under pressure from investors, Mr. Prince has vowed to reverse the company’s disappointing stock performance and rein in high operating expenses.

While championing a strategy of internal growth of existing business and international growth through acquisitions and expansion of existing business, Mr. Prince recently made some pivotal changes.

Over the last three months, he has shaken up his management team, bringing in a new finance chief and head of alternative investments. Last week, he announced the biggest overhaul in Citigroup’s nine-year history, streamlining its management ranks and eliminating 17,000 jobs.

<snip>

The performance of Citigroup’s global consumer businesses was more disappointing, dragged down by weaker credit quality and a tough interest rate environment. Profit in its United States consumer division fell 12 percent, to 1.77 billion, in the first quarter with every major business posting declines.

...more...

[UpInArms]

15. Managers Use Hedge Funds as Big I.R.A.'s

http://www.nytimes.com/2007/04/17/business/17hedge.html?ex=1334462400&en=c8676daf7e423a38&ei=5088&partner=rssnyt&emc=rss

Many Americans squirrel away as much as they can into retirement investment accounts like 401(k)s and I.R.A.’s that allow them to compound their earnings tax free. The accounts also reduce what they owe when tax day rolls around. For the average person, however, the government strictly limits the contributions to about $20,000 a year.

And then there are people who work at hedge funds.

A lot of the hedge fund managers earning the astronomical paychecks making headlines these days are able to postpone paying taxes on much of that income for 10 years or more.

The key to the hedge fund tax boon is that many managers of these lightly regulated private pools of capital have the ability to earn the bulk of their compensation offshore and invest it in their funds, where it grows tax-free.

“If you could compound your compensation tax-free, why wouldn’t you?” asked Stewart Massey, founding partner of Massey & Quick, a consulting firm.

Few people know the power of compounding better than hedge fund managers. Consider the following calculation done by Financial Engines, a financial advisory and portfolio management firm: A hedge fund manager makes $10 million in fees and defers it for five years, earning a return of 10 percent a year. When he pays taxes at the end, he walks away with $10.5 million. Another manager who makes the same $10 million pays his taxes immediately. He still earns 10 percent on what’s left, but over the same period he accumulates just $8.9 million.

...more...

[54anickel]

31. But thank Bob the IRS audits the middle class! Their audits of bidness ain't payin off

IRS Audits Not Paying Off, Says Study

http://www.cfo.com/article.cfm/9024044/c_9024377?f=home_todayinfinance

Nonproductive audit time, defined by the Internal Revenue Service as face-to-face examination hours that produced ''no change'' results, is reportedly growing for companies of all sizes.
Stephen Taub and Dave Cook, CFO.com
April 16, 2007
Internal Revenue Service agents are "spending substantially more of their time on corporate audits that produce no revenue for the government than they did in the recent past," according to a study by Transactional Records Access Clearinghouse.

TRAC, a data-research organization associated with Syracuse University, asserted that nonproductive audit time — defined by the IRS as face-to-face examination hours that produced "no change" results — was higher, year-on-year, for companies of all sizes.

advertisement Also troubling, according to TRAC, is that the relative growth in unproductive hours tended to rise as the size of the companies increased. In the past five years, for example, nonproductive audit time more than doubled for companies with assets of $250 million or more. Historically, the study pointed out, "the largest corporations produce the lion's share of all audit dollars."

Indeed, although audit-dollar recommendations for the largest companies increased substantially during fiscal years 2001 to 2005, they declined by about 15 percent, to $25.5 billion, last year. TRAC also noted that the correlation between nonproductive audit time and company size was puzzling "because the bigger the institution the more likely that the sheer volume and complexity of its business transactions will result in misreporting errors."

One reason for the correlation, the study suggested, might be shorter audits. According to TRAC, between 2001 and 2006 the average length of an audit dropped by 21 hours for companies of all sizes; for the largest companies, audit time dropped by an average 193 hours.

more...

[UpInArms]

16. GM to buy more auto parts from India

http://www.reuters.com/article/businessNews/idUSBMA00069920070417?feedType=RSS

NEW DELHI (Reuters) - General Motors Corp. (GM.N: Quote, Profile, Research) is looking at a "multiple increase" in auto parts sourcing from India, Chief Executive Rick Wagoner said on Tuesday.

Wagoner also said India would be the world's second-fastest growing auto market over the next decade.

"Half of (the population) is under 25 years, so there's a lot of potential buyers for everything," Wagoner said.

Annual passenger vehicle sales in India are forecast to nearly double to 2 million units by 2010, on the back of rising incomes and new launches from the world's top car makers.

<snip>

"We hope to increase our sourcing significantly over the current level, perhaps as much as five-fold over the next two years."

...more...

[AnneD]

57. Hope they work the bugs out

of quality control. Otherwise they will be useless, like all those latex gloves that we use to get. Fully 1/4 would snap before you put them on. We would take to double gloving just in case they snapped on us in a procedure. How much did WE save by doing that? Some bargain. Made me feel safe against AIDS.:eyes:

[UpInArms]

17. Big Funds, Not Individuals, Move Stocks

http://news.yahoo.com/s/ibd/20070416/bs_ibd_ibd/2007416investoreducation

Individual investors tend to overestimate how much impact they have on the stock market.

In fact, it's the big investors -- mutual funds, insurance companies, pension funds and banks -- that control 3/4 of the market's movement.

The big buying power of those professional investors can make or break a stock.

If they're grabbing shares, that demand can boost a stock's price. If they're unloading their position, their selling can send share prices tumbling.

As a rule, the more institutional sponsors, the better. But it also pays to look at the quality of those big-money investors.

...more...

[UpInArms]

20. OT: Foley, GOPers Pay for Scandal Lawyers With Campaign Funds

http://blogs.abcnews.com/theblotter/2007/04/foley_gopers_pa.html

Former Congressman Mark Foley has spent more than $250,000 of his campaign funds on lawyers since he was exposed for having inappropriate sexual conversations with minors online.

The law allows Foley to pay Zuckerman Spaeder LLP from his pot of over $1.5 million in campaign funds that he had amassed prior to the scandal. Federal politicians can spend campaign money on their legal defense if they are facing charges relating to their conduct in office.

Curiously, neither David Roth nor Gerald Richman, the two lawyers who have been cited in news articles as representing Foley, appear to be associated with Zuckerman Spaeder. Foley's campaign has been dissolved, and neither Zuckerman Spaeder nor the two men immediately returned calls for comment.

<snip>

Hastert has paid over $80,000 in funds raised for his re-election to the firm of McKenna, Long and Aldridge, which employs Evans. The former GOP leader's campaign still owes the firm $52,128, his election filings show. Hastert's office did not immediately respond to a request for comment.

And retired lawmaker Jim Kolbe from Arizona took a big hit in legal fees, paying out $120,000 in cash from his old campaign war chest to Wilmer Hale. The law firm employs former White House counsel Reginald Brown, whom Kolbe retained in December to represent him in twin investigations by the House Ethics Committee and the Department of Justice.

...more...

Just FYI ;)

[54anickel]

36. Hmmm, another transfer of wealth I see. From corporate/lobbyists

campaign war chests to some "evil" lawyers pockets. :evilgrin:

[AnneD]

73. Everyone was a bit pissed off in Sugarland....

seems like Tom DeLay was down here getting his palm greased and once he reached a certain amount, he announced he was withdrawing from the race-for the good of the party of course. It was funny how his campaign war chest equaled his legal fees. A lot of GOPeers noticed it too.:evilgrin:
Couldn't happen to a nicer group of folks.:rofl:
Best part is ...get this....
his lawyer is a staunch DEM :spray:
:rofl::rofl::rofl::rofl:

[AnneD]

22. Morning Marketeers...

:donut: and lurkers. The events of yesterday brought up some bittersweet memories. I remember when my Nurse Midwife told me that my baby would be born in late April. Call it mother's intuition but I knew she would be born well before April 28th. So I started fantasizing about the date. I didn't want her to be born on the first because I didn't want kids to tease her about being a fool. I didn't want her to be born on the 15th for obvious reasons. I figured April 20th Earth Day would work for me. April 18th and the beginning of labour started. I stay at home until later in the morning. Finally, after 24+ hours of labour (thank goodness you get breaks now and again), she was born on the 19th. Not Earth day, but as close as I could guess. All was well and I was happy with the date. Then, in a town I knew and went to school, over 80 people were killed at the hands of our government. The taking of the Branch Davidian compound needlessly took the lives of men, women, and children. I thought, well, she's a baby, most folks won't remember this. She won't have remembrances of this sadness around her birthday when she grows up. Then, there was the Oklahoma City bombing. That made it even more personal what with numerous family in Oklahoma. After that, I held my breath, hoping my daughter's joy was not drowned out by sad news. Then came Columbine. This time she was old enough to understand and discovered the other events that happened on her birthday. We have had a few quiet years for which we are thankful for. And then this. We were talking about it yesterday and she said,'Everyone gets work up about March Madness, but it's the April Madness they should be upset about'. All I could say was the words a mother wiser than I once said to her daughter...I can't promise you a just world, but I know you will make it a better place'.

I hope you have a good day. Hug and kiss those close to you.

Be careful and watch out for the bears.

[mojavekid]

23. The Daily Pfennig 4/17/06: The Tax Man's Day...

http://www.kitcocasey.com/displayArticle.php?id=1333

Well... I guess I'm the first to wear a lampshade on the desk... There was a day last year, when John Kaupisch said, "When yen gets to 110, I'll wear a lampshade on my head!" Well, that prompted me to say... I've been touting the pound sterling getting to "2" for so long, that I'll wear one when it finally gets there! The pound sterling is trading just below the 2 figure, but in overnight trading it did hit 2... But since no one saw it here, I wonder if I still have to wear the lampshade? No worries, the pound sterling will get back to 2 for everyone to see, and then head to 2.05, and maybe even 2.10!

The euro is also hitting some lofty levels that were last seen in December of 2004, and the first couple weeks of January 2005... Last Friday, I said it looked like a rout on the dollar because of the markets' collective fear that the Trade Deficit widened in February... Of course that didn't happen and as Chris told you yesterday, the Trade Deficit narrowed in February... Let me remind everyone here of something that shouldn't be forgotten that easily by the markets... FEBRUARY HAS FEWER DAYS THAN THE OTHER MONTHS! IF THE TRADE DEFICIT CAN'T NARROW IN A MONTH THAT HAS FEWER DAYS, I'D SAY WE HAD BETTER BATTEN DOWN THE HATCHES!

Let's see here, if I get out some paper and pencil, I see that February had 3 fewer days than January, which posted a $59 billion deficit... That's a $1.9 billion and change a-day ticket... So if we just add 3 more days of $1.9 billion to February to even it out... We see the trade deficit actually widened to $64 billion! Aye, Yi, Yi! But, hey, don't let the facts get in the way of a "feel good" story by the media!

more at link...

[54anickel]

25. British pound tops $2 for first time in 15 years

Dollar dips after core consumer price index rises less than forecast :eyes:


http://www.marketwatch.com/news/story/sterling-breaks-2-mark-first/story.aspx?guid=%7B42E858B5%2DBCA1%2D49B8%2D98D4%2D74F51E441B02%7D&siteid=yhoo&dist=yhoo

NEW YORK (MarketWatch) -- The British pound breached the $2 mark for the first time in 15 years on Tuesday, climbing over a landmark threshold after a report showed hotter-than-expected U.K. inflation, stoking speculation the Bank of England will hike interest rates next month.

A government report showed the U.K. consumer inflation rate surged 3.1% on an annualized basis in March, up from 2.8% in February. This put inflation more than 1% over the Bank of England's inflation target of 2% and triggered a letter to the U.K. government from the central bank explaining the move. See full story.

The U.K. inflation figures "came in significantly higher than virtually everyone in the market was expecting, and a push through $2 was inevitable after figures like this," said Martin Slaney, analyst at Global Forex Trading. "A rise at the May meeting is now a certainty, and some are even factoring in a half-point rise."

In New York trading, the British pound traded at $2.0049 vs. $1.9899, after earlier touching $2.0074, the highest level since September 1992. See live currency rates.

snip>

"Of course everyone in the market is now asking 'where next?' A close above $2 today would probably set the scene for a further push higher, with the next target being the high we saw after Black Wednesday of 2.0115," Slaney said.

Back in September 1992, a speculative attack led by billionaire investor George Soros shook the pound off the Europe's exchange rate mechanism on a day which later became known as "Black Wednesday," forcing the Bank of England to give up its interventionist buying to artificially maintain its exchange rate with the deutsche mark.

The pound tumbled substantially in the months following the "Black Wednesday."

Kathy Lien, chief strategist at DailyFX.com, said the pound still can go "quite a bit."

"The market is obsessed with the currencies of countries that are increasing interest rates and there is no better pick that the British pound," she said. "The British pound is the story of the week as we still have a number of key releases that could drive the pair even higher."

more...

[54anickel]

33. US regulators’ opinions differ on same instrument

http://www.ft.com/cms/s/75f71d06-ec4b-11db-a12e-000b5df10621.html

Is it a security? Is it a future? Is it an option?

These questions may seem irrelevant to anyone trading the various types of credit derivatives contracts available in the over-the-counter markets.

But for US markets regulators and two of the largest Chicago derivatives exchanges, they are at the centre of a regulatory row that highlights what, to many, is a fundamental flaw in the way the US capital markets are overseen: too many watchdogs and contradictory approaches to regulation.

For much of the past five months, the Securities and Exchange Commission – which regulates securities – and the Commodity Futures Trading Commission – which oversees commodity and financial futures – have been at loggerheads over how to define two new credit derivative contracts proposed by the exchanges.

In October, the Chicago Mercantile Exchange and the Chicago Board Options Exchange each applied to launch exchange-traded versions of the over-the-counter credit default products that are the fastest-growing segment of the derivatives markets. Small wonder that Chicago is in a hurry to get its products out.

Unfortunately, European derivatives operator Eurex got there first, last month launching the world’s first exchange-traded credit derivative.

How did this happen? Part of the answer lies in the fact that the US has one regulator for securities (the SEC) and another for futures (the CFTC). To launch its product, Eurex only needed board approval. Its regulator, in the exchange’s home state of Hesse, will only step in if it sees a problem with proposed products.

more...

[mojavekid]

37. House buyers driving discounts

http://www.jsonline.com/story/index.aspx?id=589824

Milwaukeeans' love of discounts is on full display in this year's housing market.

"With flooding inventory out there, it's not uncommon to see offers at 10 percent below asking price," said Greater Milwaukee Association of Realtors President Dave Schmidt Jr.

Double that price cut if the property is in danger of foreclosure, said Robert A. Jansen, president of the Milwaukee listing service ForeclosuresWI.com.

Post-boom conditions have put home buyers in the driver's seat, agents report, and they've flattened sales prices.

Metro Multiple Listing Service's Tuesday report on first-quarter 2007 existing-home sales in the four-county market showed the impact on prices:

more at link...

[mojavekid]

38. USA Today: Rising foreclosures reshaping communities

http://www.usatoday.com/money/economy/housing/2007-04-12-foreclose-cover-usat_N.htm

ATLANTA — If you're like most homeowners, you've probably never given much thought to whether your neighbors pay their mortgages on time. You've got enough to worry about.
Dannice Clark was like that. She'd skip newspaper articles about the trouble with "subprime" loans for people with risky credit. While fixing dinner, she'd tune out TV reports on how subprime defaults are accelerating the nationwide pace of foreclosures. Why should she care? She had a fixed-rate loan on a 5,000-square-foot home with two kitchens in Waters Edge, an upscale subdivision in Stone Mountain, just outside Atlanta

Here's why: Clark has been trying to sell her home for nearly five months and hasn't had one offer — even after cutting the price to $334,900 from $359,000. The problem is that her street is dotted with four foreclosed homes that lenders are trying to unload for less money.

"It's truly affecting the sale of my house," says Clark, 45, who works for the U.S. Postal Service. "Why pay full price for my house when you can pick up a foreclosure for $30,000 or $40,000 less?"

.....more at link - This might have been posted earlier, however the picture of the evicted renters belongings on the curb got to me. It looks to be a nice neighborhood. Spooky.

[mojavekid]

40. Detroit Blog: Wild Kingdom...

http://www.detroitblog.org/?p=287

The city of Detroit has a very strange, wild appearance, in some parts like a city of ruins many years older than it actually is, where nature reasserts itself in vegetation that spreads over the city’s crumbling structures.

Detroit is far greener than most major cities, as seen in the runaway vines swarming old mansions in Brush Park, trees sprouting from the rooftops of skyscrapers, tallgrass fields encircling the lone house still standing on a residential block, and abandoned homes swallowed by shrubs thriving unchecked.

Whole neighorhood blocks cleared of houses by arson and bulldozers have reverted to urban prairies, visible in satellite photos as unusually large green patches in the middle of the inner city. Sidewalks vanish beneath creeping grasses, while aluminum fences between homes become entwined with the branches of dozens of saplings growing as high as the droopy utility wires.

more at link with a series of great photos of Detroit returning to nature...

[AnneD]

47. Two really good interesting articles.....

The first pretty much shows secondary and tertiary effect of a RE crash and pretty much follows what I saw happening here in Houston in the '80's. Took us a long time to recover from this-years in fact.

The greening of Detroit was VERY interestingbut sad. Who would have thought that of the once vibrant Detroit.

[mojavekid]

56. Hi AnneD,

The pictures really got me. I have several friends - Chaldeans that settled in Detroit and they tell me how their neighborhood is losing residents and businesses basically ceasing to BE a neighborhood...

And like your experience in Houston in the 80's it will take a long time to come back - if ever, as Detroit was heavily industrial and we in America don't do that so well anymore.

In other areas, people simply bought too much house, that was way above their means, banking on it's value to go up forever, just like every other real estate boom and bust we have experienced...:sarcasm:

-mojavekid

[54anickel]

39. The unstructured 21st Century (Ugh)

http://www.prudentbear.com/articles/show/1992

snip>...It’s worth considering for a moment what in the latter case the world of say 2030 might look like.


In terms of income distribution, there would be a small elite of very rich people, managing hedge funds and private equity funds, whose reach would be worldwide. In theory, these would be the best and brightest of each generation, a true meritocracy. In practice, judging by hedge fund management’s current practices as well as by what appears to be acceptable in a World Bank president, nepotism and favoritism would be rife. The Funds’ resources would be raised from passive investor sources, notably in the pension and insurance sectors, but they would be wholly under the control of the Fund management elite.

As well as the truly rich who ran the Funds two penumbras would exist. One would be the gilded youth, chosen by the Fund elite as their minions and eventual successors, who would be paid superbly, but would have to abandon both their integrity and all semblance of a life outside their Fund in order to qualify for their largesse.

The other would be the managers employed by the Funds to asset-strip the companies they bought. These would be tough operators, probably military-trained, whose job would be to overcome the hostility of the masses whose lives they destroyed. Inevitably bomb threats and assassination attempts would be an accepted part of their existence. Their sole goal would be to extract “value” from the assets they oversaw, rather than to produce any operating improvements. They would be less well paid than the titans of the Funds, and would serve at their pleasure, but would still be hugely richer than everyone else.

There would be completely free migration around the globe, since the Fund titans would have paid off politicians to ensure that all barriers were removed, whatever the wishes of the electorate. In this way, labor would always be available at the lowest possible cost to carry out the Fund managers’ wishes. This free movement of labor and utilization of the near-infinite pool of Third World cheap manpower would be the most important weapon enabling Fund managers to “extract value” from all situations, breaking up or squeezing out any activities whose operating managers and staff appeared to be building a Fund-proof alternative power nexus.

Job security would be something that little people didn’t enjoy. Jobs would be available in most specialties, and career ladders would be dangled before the proletariat to ensure docility and hard work, but jobs would be terminable at a moment’s notice. They would be vulnerable to asset-stripping, when Fund managers wished to loot the operation for which you worked, to outsourcing, when the Funds found a cheaper source of labor for the work you did and to office politics, when the Funds or their tame top corporate managers decided you were subversive or they didn’t like your face. Once you lost your job, you might if lucky be able to find another in the same specialty, albeit probably worse paid, but most probably you would have to retrain expensively for whatever new specialty had become fashionable in the years since your last redundancy.

Naturally the masses would need to be kept in a state of passive discontent rather than outright rebellion, in spite of their modest living standards and lack of prospects. The Fund managers and their political allies would have a number of ways to achieve this.

The government would be large, supported primarily by taxing the labor force (the Fund titans would not pay taxes, like the Russian mafia and foreign bankers in today’s London.) As well as providing innumerable reasonably paid near-sinecures, the government would also provide social security and healthcare, available to all but revocable at the pleasure of the bureaucracy so that control could be maintained. Government economic statistics would be tailored to the Fund managers’ needs, disseminated by the Fund-controlled media so efficiently that any minion who attempted to disbelieve their universally sunny data would be unable to propagate his subversive opinions. Elections would be held, but only candidates acceptable to the Funds would get adequate campaign financing and access to the Fund-controlled media.

Internationally, an immensely powerful World Bank, supported by the West’s taxpayers but controlled by the Funds, would provide handouts for Third World governments to keep them in line with the Funds’ worldview and to ensure that sufficient labor was adequately educated and available for the Funds’ needs. Cooperating governments would find their people’s living standards modestly improving, and their leaders would be directly rewarded in person by Fund-controlled think tanks or the World Bank. If there were governments that refused to cooperate, they would be largely cut off from international trade and investment and World Bank subsidies. Military force would be controlled by the United Nations and other international bureaucracies, which would themselves be controlled by subsidies from the Funds and the World Bank.

Don’t like this future? Recognize aspects of it already appearing? Well then, pray that the present period of easy money and rapid-fire private equity acquisitions ends quickly. In that way a healthy recession will allow normal economic and democratic forces to retake control of the world economy, removing the more egregious capitalist cowboys to the jail cells where they belong.

more...

[Roland99]

42. CNBC just got "Sanjaya'd"!! LMAO!!!!

CNBC was showing someone reporting from a street location and some guy runs up to the camera and shouts something like,

"Is this about Sanjaya?

Vote for Sanjaya!!"

Then some, presumably, CNBC staffers grab the guy and try to drag him out of camera view and the guy is shouting "I'm an American. Vote for Sanjaya!"



:rofl:

[Theres-a]

46. Nice.

[citizen snips]

48. delete

[citizen snips]

49. Schwab 1Q Profit Increases 12 Percent

SAN FRANCISCO (AP) -- Charles Schwab Corp. posted its eighth consecutive quarter of double-digit earnings growth as an influx of customer deposits during the first three months of the year helped the discount broker shake off turbulent market conditions.

The San Francisco-based company said Tuesday that it made $273 million, or 22 cents per share, during the first quarter. That represented a 12 percent increase from net income of $243 million, or 19 cents per share, at the same time last year.

The earnings matched the average estimate among analysts surveyed by Thomson Financial.

Revenue for the period totaled $1.15 billion, a 9 percent improvement from $1.05 billion last year.

more...
http://biz.yahoo.com/ap/070417/earns_charles_schwab.html?.v=10

[citizen snips]

50. Wells Fargo 1Q Profit Grows 11 Percent

SAN FRANCISCO (AP) -- Wells Fargo & Co., the nation's fifth largest bank, reported Tuesday that first-quarter net income rose 11 percent, narrowly exceeding Wall Street expectations thanks to strong growth in commercial loans and core deposits divisions.

Still, like other banks, Wells Fargo saw some signs of worsening consumer credit and reported that net charge-offs and nonperforming assets rose in the January-March period from a year earlier. Rising interest rates have been making it more difficult for some borrowers to pay back loans, including mortgages.

On Monday, Citigroup Inc., which is headquartered in New York, and Wachovia Corp., of Charlotte, N.C., increased their provisions for loan losses in the first quarter. Both also held down the growth of expenses -- a typical strategy in a weakening credit environment.

San Francisco-based Wells Fargo posted profit of $2.24 billion, or 66 cents per share, in the first quarter, up from $2.02 billion, or 60 cents per share, a year earlier. Wells Fargo has reported double-digit earnings per share growth in 17 of the past 20 quarters.

more...
http://biz.yahoo.com/ap/070417/earns_wells_fargo.html?.v=9

[citizen snips]

51. J&J 1Q Profit Falls 22 Percent

TRENTON, N.J. (AP) -- Health care products maker Johnson & Johnson said Tuesday its first-quarter profit fell 22 percent as a big charge for an acquisition offset record sales.

The New Brunswick-based maker of contraceptives, contact lenses, prescription drugs and baby products reported net income of $2.57 billion, or 88 cents per share, down from $3.31 billion, or $1.10 per share, in the first quarter of 2006.

Excluding a charge of $807 million related to the acquisition of Conor Medsystems, J&J said net income was $1.16 per share. In the year-ago quarter, results were also boosted by an after-tax gain of $368 million from the breakup fee J&J received after medical device maker Guidant Corp. backed out of an acquisition agreement and instead was purchased by Boston Scientific Corp.

Analysts surveyed by Thomson Financial had expected earnings per share of $1.05 and sales of $14.44 billion.

more...
http://biz.yahoo.com/ap/070417/earns_johnson_johnson.html?.v=8

[citizen snips]

52. Sector Snap: Ethanol Shares Slump

NEW YORK (AP) -- Shares of ethanol producers slumped Tuesday, as an analyst urged investors to be "cautious" in the sector amid falling ethanol prices and historically high corn costs.\

After the market closed Monday, Goldman Sachs analyst Arjun N. Murti released a report lowering his stance on the biofuels sector to "Cautious" from "Neutral." Ethanol producers are facing the prospect of increasingly tight margins, as ethanol sells for less and corn costs rise.

The analyst also pulled Aventine Renewable Energy Holdings Inc. from the "Americas Buy" list and rated the stock at "Neutral."

Aventine shares have surged 39 percent from their low point in March and are trading 13 percent above the analyst's 12-month price target of $18.

more...
http://biz.yahoo.com/ap/070417/ethanol_sector_snap.html?.v=1

[citizen snips]

53. Sector Snap: Solar Cell Makers

NEW YORK (AP) -- Shares of solar panel makers were mixed Tuesday, after a CIBC World Markets Corp. analyst cut his rating on two Chinese suppliers.

Solarfun Power Holdings Co. Ltd. and JA Solar Holdings Co. Ltd. dropped after Jeff Osborne cut his rating on both stocks to "Sector Performer" from "Sector Outperformer."

"Both companies are currently trading above our previous price targets at valuations that we do not see as defensible for commodity PV cell/module suppliers," wrote Osborne, who removed his target prices.

The analyst said he prefers shares of Suntech Power Holdings Co. Ltd. in the solar sector, and advised investors to lock in profits following a recent share price increase for Solarfun and JA Solar.

more...
http://biz.yahoo.com/ap/070417/solar_cell_makers_sector_snap.html?.v=1

[citizen snips]

54. Soybeans Fall, Grains Mixed

CHICAGO (AP) -- Soybean futures retreated and grains finished mixed Tuesday on the Chicago Board of Trade.

Wheat for May delivery rose 2 1/4 cents to $4.77 1/2 a bushel; May corn fell 11 cents to $3.53 1/4 a bushel; May oats fell 1 3/4 cent to $2.67 a bushel; May soybeans fell 12 cents to $7.24 a bushel.

Beef futures increased while pork ended mixed on the Chicago Mercantile Exchange.

June live cattle rose .37 cent to 93.27 cents a pound; May feeder cattle rose .83 cent to $1.0935 a pound; May lean hogs fell .25 cent to 76.40 cents a pound; May pork bellies rose .03 cent to $1.0315 a pound.

http://biz.yahoo.com/ap/070417/board_of_trade.html?.v=3

[AnneD]

55. Thanks Matt...

I need a little vv&>> today.

[citizen snips]

58. how's it goin Anne?

[AnneD]

71. It's going ok...

but I work in an elementary school. I came in a bit sad over what happened, and some of the kids have been upset too. Little kids are wondering if they will get shot after they leave elementary school (they personalize everything). Little kids shouldn't have to worry about that. I've given out lots of mints and hugs to worried kids today. It takes a toll sometimes.

I have had to deal with this with my daughter for most of her life. I think that having her birthday this week offsets some of the bad news we seem to get this time of year. But again we alway approach her birthday with mixed feelings.

Thanks for asking Matt. :grouphug:

[citizen snips]

74. I am also a bit worried

because I will starting college this fall.

[AnneD]

75. You'll be fine...

It happens so rarely. Just be aware of your surrounding and make sure your campus has a security plan in place (most do). I am sure most schools are reviewing them now.

College is a difficult time and some kids have a harder time coping than others. If they don't have a good support network it can be hard. The shooter seemed to be on anti-depressants, he was away from home, isolated. Who knows what was going through his mind. Finals are coming up so maybe the pressure he felt was too much and he snapped. The shooter at UT was an ex marine sniper. It might have been PTSS (I think it may have been a tumour if I remember-I haven't thought about it in a while).

Go to school, make friends, and learn all you can. What an adventure you'll have. What is the major, etc. You can PM me if you want.

[citizen snips]

59. Sector Glance: Newspapers

NEW YORK (AP) -- Shares of newspapers publishers were mixed Tuesday, as Dow Jones & Co. reported a sharp decline in first-quarter earnings from a year-ago period that included a large accounting gain, but its latest adjusted income topped analyst expectations.\

The company, which publishes The Wall Street Journal, Barron's, Dow Jones Newswires and other publications, earned $22.6 million, or 27 cents per share, versus $61.5 million, or 74 cents per share, in the prior-year period.

The year-ago period included a gain of 60 cents per share. Dow Jones recorded a tax benefit of 2 cents per share in the recent quarter.

Excluding these items, earnings climbed to $20.5 million, or 24 cents per share, from $11.4 million, or 14 cents per share, last year.

more...
http://biz.yahoo.com/ap/070417/sector_glance_newspapers.html?.v=1

[citizen snips]

60. Coca-Cola Shares Hit Yearly High

NEW YORK (AP) -- Shares of The Coca-Cola Co. soared to a fresh 12-month high after the world's largest beverage maker said sharply-higher sales lifted its first-quarter profit by 14 percent.

The stock rose $1.37, or 2.7 percent, to $51.64 on the New York Stock Exchange, after hitting a yearly high of $52.18 earlier in the session.

Both profits and sales beat Wall Street expectations during the first quarter, and a number of analysts came away from the results somewhat more positive on the company's North American business.

Although the company said unit-case volume declined 3 percent in North American during the quarter, Chief Executive Neville Isdell forecast improvement in the segment.

more...
http://biz.yahoo.com/ap/070417/coca_cola_mover.html?.v=1

[citizen snips]

61. Sector Snap: Television Networks

NEW YORK (AP) -- Fox's "American Idol" remained the most popular show on television last week, while CBS still beat the network with overall primetime viewership totals, according to data from Nielsen Media Research.

During the April 9 through April 15 period, CBS Corp.'s CBS was boosted by programs such as "CSI" and "CSI: Miami." The network averaged 11.3 million viewers during each primetime period.

Fox, which has seen its season improve, thanks to continued popularity of the would-be diva face-off, averaged an audience of 10.3 million each night. Medical drama "House" also boosted viewership totals.

Walt Disney Corp.'s ABC averaged 9.3 million viewers. The network's most-viewed program last week was

more...
http://biz.yahoo.com/ap/070417/television_networks_sector_snap.html?.v=1

[citizen snips]

62. Railroad Stocks Fall on BNI Downgrade

NEW YORK (AP) -- Railroad stocks closed lower Tuesday, as an analyst with UBS Investment Research downgraded a key member of the sector and investors braced themselves for the sector's first quarterly earnings report.

Rick Paterson at UBS downgraded Burlington Northern Santa Fe Corp. to "Neutral" from "Buy," saying a recent rally by the stock exhausted much of its upside potential. The analyst added that the group no longer stands as a "buy 'em all" sector and investors should become stock specific.

Investors also sold off some rail stocks ahead of CSX Corp.'s first-quarter earnings statement, expected after the market close. Most analysts expect softer quarterly reports from Class I operators, due to weakened freight demand and bad weather. How pricing held up will likely determine their results, analysts have said.

Here's how key railroad stocks ended Tuesday on the New York Stock Exchange:

Burlington Northern, down $1.77 to $91.68.

more...
http://biz.yahoo.com/ap/070417/sector_glance_railroads.html?.v=1

[citizen snips]

63. Sector Glance: Beverages

NEW YORK (AP) -- Shares of most soft drinks companies and their bottlers rose Tuesday after Coca-Cola Co. reported its first-quarter profit jumped 14 percent while sales climbed 17 percent. Coca-Cola's gains even as the industry deals rising cost of corn and aluminum and a decline in consumer demand for carbonated soft drinks. The company did, however, struggle in the North America market, with unit-case volume down 3 percent for the quarter.

Here is how some key beverage stocks did on Tuesday:

Coca-Cola Co. rose $1.30, or 2.6 percent, to $51.57

PepsiCo Inc. added $1.24, or almost 2 percent, to $65.80

more...
http://biz.yahoo.com/ap/070417/sector_glance_beverages.html?.v=1

[citizen snips]

64. Sector Glance: Refiners Slip

NEW YORK (AP) -- Oil refiners' stock prices fell along with oil and gasoline prices Tuesday, as two refineries announced plans to restart gasoline production after being closed for maintenance and repairs.

Sunoco Inc. said its Philadelphia oil refinery is set to begin full gasoline production by the end of this week. Valero Energy Corp.'s McKee, Texas, refinery -- shut down since February due to a fire -- also announced a partial restart.

Oil prices ended the day lower after an earlier rally. Light, sweet crude for May delivery fell 51 cents to settle at $63.10 a barrel on the New York Mercantile Exchange.

Refiners also felt the squeeze from lower gasoline prices, which dropped about 6 cents to settle just shy of $2.56 a gallon on the Nymex as supply worries eased.

more...
http://biz.yahoo.com/ap/070417/refiners_sector_glance.html?.v=1

[citizen snips]

65. NYSE to Delist New Century Stock

LOS ANGELES (AP) -- The New York Stock Exchange will delist New Century Financial Corp.'s stock after concluding shares of the troubled subprime mortgage lender were no longer suitable for trading, according to a regulatory filing by the company Tuesday.

Irvine-based New Century will be removed from the exchange on April 27, according to the document filed with the Securities and Exchange Commission.

New Century had been the second-largest provider of home loans to high-risk borrowers. But its financial footing collapsed after a spike in mortgage defaults led its lenders to pull funding and demand that it buy back bad loans.

The company filed for Chapter 11 bankruptcy protection earlier this month.

more...
http://biz.yahoo.com/ap/070417/new_century_financial_nyse.html?.v=1

[citizen snips]

66. Sector Glance: Apparel Retailers

NEW YORK (AP) -- Apparel retailers' stocks closed mainly lower Tuesday, despite data being released indicating the consumer price index didn't rise as expected in March.

The Labor Department's core consumer price index rose just 0.1 percent in March, less than expected, easing some anxiety about the Fed's need to raise interest rates to curb costs. The overall consumer price index, which takes into account energy and food, rose 0.6 percent in March, in line with expectations.

Here is how some New York Stock Exchange-listed apparel retailers fared Tuesday:

Gap Stores Inc. shares fell 12 cents to end at $18.71,

AnnTaylor Stores Corp. shares slid 37 cents to $38.58,

more...
http://biz.yahoo.com/ap/070417/sector_glance_apparel_sellers.html?.v=1

[citizen snips]

67. Sector Glance: Big Stores

NEW YORK (AP) -- Shares in many of the nation's big-format stores, including department stores and discounters, rose on Tuesday, spurred by a rise in home construction in March.

Home-improvement retailers jumped on a Commerce Department report indicating that housing starts rose 0.8 percent in March. Investors had expected a decline.

Home Depot Inc. was among the biggest gainers, rising 88 cents, or 2.3 percent, to $39.44. The stock has traded between $32.85 and $42.01 during the past 52 weeks.

Here is how some key big-format stores fared Tuesday:

Wal-Mart Stores Inc., up 10 cents to $48.17

Target Corp., up 44 cents to $60.61

more...
http://biz.yahoo.com/ap/070417/sector_glance_big_stores.html?.v=1

[citizen snips]

68. Intel 1Q Surges 19 Percent

SAN JOSE, Calif. (AP) -- Benefiting from its rapid shift to a new chip-making process and a big tax benefit, Intel Corp.'s first-quarter profit surged 19 percent as lower production costs helped the company withstand another round in a fierce price battle with rival Advanced Micro Devices Inc.

Intel said after the market closed Tuesday that it earned $1.61 billion, or 27 cents per share, in the first three months of the year. That compares with net income of $1.36 billion, or 23 cents per share, in the same quarter last year.

The Santa Clara-based company said the latest profits include $300 million reversal of previously accrued taxes that were added back into the company's coffers. It increased the earnings per share by about 5 cents.

Intel said revenues for the quarter were $8.85 billion, down slightly from last year's $8.94 billion

more...
http://biz.yahoo.com/ap/070417/earns_intel.html?.v=4

[citizen snips]

69. Nasdaq 100 Leaders & Laggards

NEW YORK (AP) -- The Nasdaq 100 finished higher on Tuesday, boosted by Vertex Pharmaceuticals Inc.

The Nasdaq 100, which includes 100 of the largest nonfinancial securities traded on the Nasdaq Stock Market, rose 95 points to 1,834.91. The broader Nasdaq composite slipped 1.38 to 2516.95.

Shares of Vertex Pharmaceuticals rose $1.75, or 5.9 percent, to $31.68, a second straight positive trading session after Vertex presented a long-anticipated drug study at a conference during the weekend.

Costco Wholesale Corp. also climbed higher along with many of the nation's big-format stores, spurred by a rise in home construction in March. The stock gained $1.20, or 2.2 percent, to $55.60.

more...
http://biz.yahoo.com/ap/070417/nasdaq_100_laggards.html?.v=1

[citizen snips]

70. Sector Glance: Airlines

NEW YORK (AP) -- Airline stocks ended mixed Tuesday, as Mesa Air Group Inc. slumped on an analyst downgrade but crude oil prices eased.

Crude prices dropped 51 cents per barrel to settle at $63.10 on the New York Mercantile Exchange, lifting an industry that counts jet fuel among its top costs.

But a Calyon Securities downgrade of regional carrier Mesa sent the Phoenix-based company's stock to a new 52-week low of $7.18. Analyst Ray Neidl downgraded the stock to "Neutral" from "Add," citing higher maintenance costs and other issues.

The industry also is set to enter its first-quarter earnings season, with American Airlines' parent AMR Corp. on deck to report results on Wednesday.

more...
http://biz.yahoo.com/ap/070417/airlines_sector_glance.html?.v=1

[citizen snips]

72. DJIA Leaders & Laggards: Coca-Cola, GM

NEW YORK (AP) -- Coca-Cola Co. was the biggest gainer Tuesday on the Dow Jones industrial average after reporting higher first-quarter sales and profit.

The 30-stock index closed up 52.28, to 12,773.04.

The soft drink maker's quarterly earnings were better than analysts expected, and shares rose $1.30, or 2.6 percent, to finish at $51.57 on the New York Stock Exchange, after hitting a 52-week high of $52.18 during the session.

Health care products maker Johnson & Johnson reported a 22 percent lower profit, but adjusted results beat Wall Street expectations. The stock picked up $1.53, or 2.4 percent, to close at $64.55 on the NYSE.

more...
http://biz.yahoo.com/ap/070417/djia_laggards.html?.v=1

[ozymandius]

76. Waaay past time to put a fork in this one.

Dow 12,773.04 Up 52.58 (0.41%)
Nasdaq 2,516.95 Down 1.38 (0.05%)
S&P 500 1,471.48 Up 3.01 (0.20%)
10-Yr Bond 4.688% Down 0.047
NYSE Volume 2,921,439,000
Nasdaq Volume 2,016,685,000

4:20 pm : The major averages closed in split fashion Tuesday as investors weighed another round of upbeat earnings reports and tame inflation data against the temptation to lock in some of the market's recent gains. As a reminder, the Dow, S&P 500 and Nasdaq have climbed roughly 3.6% on average during the month of April amid heightened expectations Wall Street analysts may have revised their earnings estimates too low.

Meanwhile, with policy makers recently emphasizing their inflation concerns, and the monthly CPI report's ability to influence monetary decision making, early indications were signaling a lower start for stocks. The market's sizable gains a day earlier and the Dow less than 60 points away from its all-time closing high also contributed to the lack of buying interest at the onset of trading.

Core consumer prices rising a lower than expected 0.1%, though, helped to ease renewed fears about pricing pressures and provided a floor of buying support. In the end, however, the soft number, coupled with rising energy costs that left total CPI with its biggest increase (+0.6%) since last April, did not exactly signal that inflation is back under control. The recent uptrend in energy prices threatens to raise overall inflation pressures and keep the core trends above Fed targets.

Further proof of stabilization in housing, following unexpected 0.8% increases in monthly starts and permits, was also encouraging; but the data merely prompted bargain-hunting interest in Homebuilding (+2.8%), this year's worst performing S&P industry group (-17.9%).

The bigger story Tuesday was earnings. Coca-Cola (KO 51.62 +1.35) and Johnson & Johnson (JNJ 64.60 +1.58), which topped Wall Street expectations, were the biggest reasons behind the Dow briefly eclipsing its all-time closing high of 12,786.64 (Feb.20). While both blue chips acted as notable sources of support for their respective Consumer Staples and Health Care sectors, the defensive nature of both stocks suggested there was less conviction in today's follow-through buying efforts. Coca-Cola and J&J accounted for nearly half of the Dow's 52-point advance.

Technology was also in focus as investors placed their bets on solid earnings reports from tech bellwethers like IBM (IBM 97.16 +0.98) and Intel (INTC 20.97 +0.28). Average gains of more than 1.0% from each Dow component, which were scheduled to report after the bell, accounted for another 10 Dow points. DJ30 +52.58 NASDAQ -1.38 SP500 +3.01 NASDAQ Dec/Adv/Vol 1751/1278/1.92 bln NYSE Dec/Adv/Vol 1685/1589/1.47 bln

[UpInArms]

77. just arrived back ....

with a fork

:evilgrin: