STOCK MARKET WATCH, Friday April 20

[ozymandius]

Source: DU

Friday April 20, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 640 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2301 DAYS
WHERE'S OSAMA BIN-LADEN? 2011 DAYS
DAYS SINCE ENRON COLLAPSE = 1971
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 19, 2007

Dow... 12,808.63 +4.79 (+0.04%)
Nasdaq... 2,505.35 -5.15 (-0.21%)
S&P 500... 1,470.73 -1.77 (-0.12%)
Gold future... 688.30 -5.00 (-0.73%)
30-Year Bond 4.84% +0.02 (+0.35%)
10-Yr Bond... 4.67% +0.02 (+0.34%)






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

---

more Radical Fringe here


Read more: DU

[ozymandius]

1. Today's Market WrapUp

Gold Stocks Ready to Surge?
Not All Signals Positive, Next Week Critical
BY MARTIN GOLDBERG, CMT

Gold, precious metals, and precious metals stocks are in a long term bull market and it appears that the Elliott Wave count is clear, readable, and legitimate. Also, the HUI Gold Bugs index is at a technically critical stage in the intermediate term. The action over the next 1 to 3 of weeks will likely provide a tip-off as to whether a full force resumption of the secular bull market in gold stocks is resuming, or whether gold stocks are now simply overbought and due for yet another painful correction. The long term basis for this determination is found within Elliott Wave theory. Yet shorter term, as the HUI appears that it might break into new high ground, not all signs point to an immediate surge. If the HUI breaks decisively above 370, that would signal the resumption of the bull market and it would even make sense to buy an overbought market. This would be the direct opposite of what worked since the beginning of 2006 which was to buy weakness and sell strength.

-chart-

Referring to the long term weekly chart above, Elliott Wave theory is that bull markets occur in three distinct “up” waves that are separated by “corrections” which move against the long term up trend. These three waves are separated by three distinct types of aggressive buyers. The first group that accounts for the first of the three up waves is the one most knowledgeable in the fundamentals behind the bull market. These intelligent folks and insiders are comprised of those who fundamentally understand the justification behind the new bull market. It is these individuals that are aggressively buying while the crowd is selling. In the case of gold stocks, this Wave I began in late 2000, and lasted until December of 2004. Bull markets never go straight up and therefore, there are corrections that follow each distinct long term up wave. The corrections re-instill the bearish sentiment in the crowd that existed before the beginning of the bull market, yet some, if not most, of the original gains made in Wave I still stand up in the face of this correction. In the case of the HUI bull market, this long term correction began in December of 2004 and lasted until the spring of 2005, a period of almost 1-1/2 years. While the beginning of the bull market carried the Gold Bugs index from about 35 to almost 260, the correction that followed only took the index back to about 164, thereby preserving most of the initial gains.

-cut-

Today’s Market

Precious metals and precious metals stocks took a significant hit today, especially silver which was down over $0.30 cents. Below is the long term weekly chart of silver. Since early 2006 silver has climbed slowly only to be hammered by a sharp painful correction. In spite of this, each of these sharp painful corrections has terminated in a higher low before climbing once again. Now with silver off by over 30 cents today, it would be logical to think that the same thing was happening once again. If silver produces behavior that is more bullish than what we have been conditioned to see for over a year, then this would be a strong indicator of the start of Wave 3. But until (and if) that happens, Wave 2 grinds on.

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

[ozymandius]

2. Oil prices mixed in Asian trading

SINGAPORE - Oil prices were mixed in Asian trading Friday ahead of the May futures contract's expiry.

Light, sweet crude for May delivery, due to expiry later Friday, rose 31 cents to $62.14 a barrel on the New York Mercantile Exchange midafternoon in Singapore.

"Today's modest rise comes due to short-covering ahead of expiry later, while June, July contracts are down on roll-over from May," said Ken Hasegawa of Tokyo brokerage Himawari CX. Short positions are bets that prices will fall, and when traders cover, or buy back, those short sales, prices rise.

The June contract, which moves to the front month Monday, slipped 17 cents to $63.15. Hasegawa said June crude prices are likely to remain lower with little news to prompt fresh buying.

-cut-

Prices were also weighed down by a consultant's report that Iraq oil reserves could be much larger than initially expected, and reports that China may take more serious steps to slow its economic growth, using less oil. China's gross domestic product grew 11.1 percent in the first quarter.

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

[ozymandius]

3. Nacchio convicted of 19 of 42 charges

DENVER - In the latest in a series of convictions against corporate executives, one-time CEO Joe Nacchio was found guilty of illegally selling $52 million in stock amid an accounting scandal that nearly sank Qwest Communications.

Nacchio left the federal courthouse with his wife and son Michael after Thursday's verdict, declining to comment yet determined to appeal the 19 insider trading convictions, each of which carries a sentence of up to 10 years in prison and a $1 million fine.

Nacchio is one of a handful of former Qwest executives who have been convicted of criminal charges stemming from a multibillion-dollar scandal that forced the Denver-based telecommunications company to restate $2.2 billion of revenue.

-cut-

The jury acquitted Nacchio of all 23 insider trading counts involving sales before April 2001 but convicted him on 19 counts tied to sales of 1.33 million shares for $52 million in gross proceeds from April 26 to May 29, 2001.

http://news.yahoo.com/s/ap/20070420/ap_on_bi_ge/qwest_nacchio_trial

[UpInArms]

4. dollar watch

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

Last trade 81.651 Change +0.028 (+0.03%)

China's GDP Accelerates, Spurs Speculation Of Possible Revaluation

http://www.dailyfx.com/story/dailyfx_reports/top_fx_market_movers/China_s_GDP_Accelerates__Spurs_Speculation_1177017091499.html

The Chinese yuan made a strong move in the overnight as traders pressed the underlying currency to a record trade following the delayed release of the country’s gross domestic product report. Trading at 7.7175 at the New York close, the currency is near the lows of the session, comparable to historic lows since the peg was scrapped back in ’05. Attributed to the day’s strength were more than impressive growth figures as the Chinese government revealed that the economy expanded at an 11.1% pace in the first quarter of the year. The pace accelerated over the 10.4% consensus estimate and was widely supported by a rise in exports and overall investment. Incidentally, retail sales, consumer spending measures, rose for the month at a whopping 15.3 percent pace, continuing the 16.9 percent growth rate seen last month. Although good for the economy, the report took markets by surprise and helped to lead selloffs in regional stock markets. The concern here lies in the fact that the recent rate of growth has spurred continued inflationary pressures in the economy. According to the most recent report, released in tandem with the GDP survey, consumer prices rose at an accelerated pace of 3.3 percent. The current rate, which exceeded the 2.7 percent consensus estimate for the month of March, is bolstering speculation that the People’s Bank of China will have no other way to calm price increases but to hike domestic interest rates. The increase in benchmark rates will soak up some global liquidity, which may cause pull backs in some riskier investments including equities. In the same token, recent findings also increase the likelihood that policy makers may turn to revaluation as the only means to put a dent in currently rising inflation. Such the rumor was actually circulating prior to the GDP release, helping to kick the yuan higher pre-announcement.

Comparably, the Hong Kong dollar lost some ground against the US dollar despite promising employment reports for the first quarter. According to the government’s report, the jobless rate remained unchanged at an eight year low of 4.3 percent as continued expansion, helped by domestic consumption, is creating a tighter labor market. Falling from a high of 8.6 percent, the unemployment rate is yet another example of how healthy and supported the Hong Kong economy remains, which is expected to expand at a 5.5 percent for the year after posting 6.8 percent growth in 2006. As a result, the decline in the HKD was widely attributed to lower stock market valuations as the Hang Seng benchmark proceeded to lose 477.38 or 2.3 percent to close at 20,299.71 in the overnight session.

...more...

US Dollar and Japanese Yen: Will the Wild Intraday Swings Continue?

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/US_Dollar_and_Japanese_Yen__1177018450049.html

US Dollar- Over the past few trading days, we have seen a great deal of intraday volatility in the currency markets. The battle between top pickers and carry traders has been fierce with Asian and European traders opting for the former and US traders opting for the latter. Carry traders aren’t giving up quite yet as we see evidence of consistent buying throughout the US trading session. This is the same sort of price pattern that we saw yesterday, which indicates that the battle is continuing with no clear winner in sight. What the price action does tell us is that there are strong players on both sides of the spectrum and should one triumph over the other, the reversal or continuation will be just as sharp as the rally that we have seen over the past month. Dollar bearishness is still the dominant force in the market as economic data continues to disappoint. Jobless claims were originally expected to drop significantly after the blip reported the prior week, but instead, claims only edged lower slightly. The Philadelphia Fed survey remained unchanged at 0.2, confirming the lack of growth in the manufacturing sector. With both the Empire State Manufacturing and the Philly Fed surveys falling short of expectations, the national ISM index for the month of April which is not due for release until a week and a half from now, will probably remain very close to the 50 boost / bust level. Looking ahead, we have zero data on the US calendar until next Tuesday. The only things to focus on are the speeches by Federal Reserve President Mishkin on the outlook for the US economy and Treasury Secretary Paulson at the China conference. Given the hot GDP numbers reported by China yesterday, we definitely expect some critical comments by the Treasury Secretary. With nothing on the calendar, the obsession with whether carry trades will or will not continue should remain dominant.

...more...

[Ghost Dog]

24. Euro hits 2-year high against dollar

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B5a6ebd84%2D5a01%2D41cd%2D9c27%2D9a7705089ca8%7D

The euro crept closer to its all-time high against the dollar, extending its two-year peak as stock markets steadied after Thursday’s anxious session. Comments from Axel Weber, the German central banker and member of the European Central Bank’s governing council, helped spur the single currency along. He mentioned an “extremely positive” outlook for the eurozone and added there were price risks in the medium term that needed to be countered. Against the dollar, the euro climbed 0.2 per cent to $1.3637 a new two-year peak and less than half a cent from a new record. Most notably, the yen was back under pressure after the previous session’s rally ran out of steam.

...

The euro climbed 0.2 per cent against the yen to Y161.57, while the dollar added 0.2 per cent to Y118.72 and the pound gained 0.3 per cent to Y237.87. The New Zealand dollar, which was among the biggest fallers against the Japanese currency on Thursday, rallied 0.1 per cent to Y88.23, while the Australian dollar, also a big faller in the previous session, added 0.2 per cent to Y99.02.

/..

ed. BTW:

[mojavekid]

32. Market Watch: Dollar steadies after overnight sell-off

http://www.marketwatch.com/news/story/dollar-steadies-after-overnight-sell-off/story.aspx?guid=%7B8A0087BE%2D5A5A%2D4687%2DB073%2DB8AB05DF1CB3%7D&siteid=yhoof

NEW YORK (MarketWatch) -- The dollar rose against other major currencies early Friday, recovering from a more than two-year low versus the euro it reached overnight, as traders adjusted positions ahead of the weekend.
The euro rallied to a high of $1.3636 in early European trade, the highest level in 28 months, benefiting from stronger-than-expected French consumer spending data and comments from eurozone officials that the strong currency is not threatening the region's economy.
"Sentiment remains favorable and a new all-time high near $1.3665 is awaited" reached in December 2004, said Marc Chandler, global head of currency strategy at Brown Brothers Harriman.

In early New York trading, the euro stood at $1.3602, compared with $1.3604 late Thursday, after touching an intraday high of $1.3636.
The dollar was last quoted at 118.74 yen, compared with 118.42 yen. The euro fetched 161.56 yen, compared with 161.11 yen.
The British pound traded at $2.0027 vs. $2.0016. The pound had climbed as high as $2.0133 on Wednesday, its loftiest level since 1981.
The dollar changed hands at 1.2073 Swiss francs, compared with 1.2051 francs. See live currency rates.
There is no economic data on the U.S. calendar Friday.

more at link...

[mojavekid]

74. The Daily Pfennig 4/20/07: Dollar Negativity Builds Steam...

http://www.kitcocasey.com/displayArticle.php?id=1340

Good day... And a Happy Friday to one and all! This has been a good week for the currencies and a bad week for the dollar... The dollar negativity is building steam... The question is: Will the steam be released in a relatively slow, coordinated manner, or will the top blow off "this sucker"?

I have to tell you that I came across some data yesterday that explains why this dollar negativity is building steam... We all know that the central banks of the world have truck loads of dollar reserves, right? Well... The proportion of dollars in central bank reserves continues to fall... Data from the IMF shows that the dollar proportion of central bank reserves fell to 64.75% in the 4th QTR of 2006, which doesn't look good given that the number was 66.75% in the 4th QTR of 2005. To my way of thinking... there is little reason to believe that this trend will change given the talk and actions in the past year by central banks.

The euro and sterling saw some profit taking yesterday, but that didn't last long, and soon those two were back to taking liberties with the dollar... You see, the U.S. data cupboard didn't give the dollar any love yesterday.

First, we had Leading Indicators for March... While the March number posted a .1% increase... February's -.5% showing was revised downward to -.6%... On the downside, capital goods orders fell (highlighting the fairly new concerns about business investment), and consumer expectations fell. I'm really concerned about the Capital Goods Orders falling...


More at link...

- I know this is late, thought I would throw it in anyway for those who might catch up later - An excellent weekend to you all!

[ozymandius]

5. Google 1Q profit rises 69 percent

SAN FRANCISCO - Google Inc.'s first-quarter profit rose 69 percent, maintaining the online search leader's penchant for obliterating analyst estimates.

The stellar results released Thursday left little doubt that Google has widened its lead over its closest rival in Internet search and advertising, Yahoo Inc. (Nasdaq:YHOO - news), whose first-quarter earnings eroded.

Google detailed its sparkling performance on the same day that several major U.S. newspaper companies announced another quarter of financial decay, underscoring an advertising shift that is enriching Internet upstarts at the expense of traditional media outlets struggling to adapt to a new order.

Born less than decade ago, Google now reigns as the most profitable — and probably most powerful — force on the Web.

http://news.yahoo.com/s/ap/20070420/ap_on_bi_ge/earns_google

[ozymandius]

6. UAW seen considering bid for Chrysler

FRANKFURT (Reuters) -- The United Auto Workers union is considering a proposal to seek a majority stake in DaimlerChrysler's Chrysler Group in return for cost concessions, the Wall Street Journal reported on Friday.

It said the proposal, first floated by a small group of workers, would entail swapping cuts in healthcare benefits and other cost concessions. It cited a person familiar with the matter for the information.

-cut-

Sources have told Reuters that bidders for Chrysler include private equity firms Cerberus Capital Management, Blackstone Group and Canadian auto parts maker Magna International.

http://money.cnn.com/2007/04/20/news/companies/uaw.reut/index.htm?postversion=2007042006

[ozymandius]

7. Stocks Point to Higher Open

NEW YORK (AP) -- Stocks pointed to a higher opening Friday as investors reacted favorably to stronger-than-expected earnings from Google Inc. and Honeywell International Inc.

Google reported a 69 percent increase in first-quarter profit and exceeded analyst expectations -- which the Internet search company has done in 10 of the 11 quarters since its initial public offering. The results, released late Thursday, helped assuage some investors who had been cautious about the technology sector after disappointing earnings earlier in the week from companies such as Yahoo Inc.

Investors were also pleased to see that earnings released Friday from Dow Jones industrial component companies Honeywell and Pfizer surpassed analyst forecasts. Honeywell, the diversified industrial conglomerate, said its profit spiked 21 percent. Pfizer, the world's largest drug maker, said its profit fell 18 percent due to one-time charges and weak sales of diabetes drug Exubera. However, excluding the one-time charges, the results easily beat predictions.

Caterpillar Inc. and McDonald's Corp., two other Dow component companies, will be releasing first-quarter earnings Friday as well.

http://biz.yahoo.com/ap/070420/wall_street.html?.v=4

[Roland99]

8. Morning, Marketeers! Just a reminder about today being VT Hokie Hope Day

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=711202&mesg_id=711202

[AnneD]

26. Morning Marketeers....

:donut: and lurkers. Frankly, I am glad today is the last day of the school week. The VT murders have been hard for students and educators to handle. It dredges up Columbine, Jonesbrough, Pearl, UT Tower, etc. The intense media coverage is not welcomed by anyone I know except OCD folks and people without a meaningful life. The kids at VT may or may not come back and either decision will be hard...
So I have been thinking about something that really bugs me. We spend so much time and money on metal detectors in high schools. Maybe if we spent money on social workers and counselors instead, metal detectors might not be needed. Maybe if Cho had received the help he so desperately needed he would not have committed this desperate act. Time and time again, I see this drama played out. The consequence may not always lead to mass murder-but these kids do strike back at society. Many suspect Hitler was abused. Saddam was beaten regularly. And how different George's life would have been if someone helped him know that Robin's illness and death was not his fault. This counseling would not have helped little Dick cause, well, he's still just a little dick. But humour aside, kids these days need a counselor as much as they need a Nurse. In small schools I wear both hats, but kids still need both: one for the injuries you see and one for the injuries you don't see.

Happy hunting and watch out for the bears.

[Roland99]

28. Well said. And, besides...

what good are metal detectors when a shooter can take out a guard in about 2 seconds?

At our courthouse downtown there are obviously metal detectors but there are also 5-6 armed Sheriff's Deputies there at any one time.

[AnneD]

34. I believe it was the great...

Carl Menninger, the proponent of modern day American Psychiatry on said that so many folks problems could be cured with ginger snaps. He kept a jar on his desk at all time and folks came in, have a ginger snap with him and start talking. When I first became a School Nurse, I remembered that.

I keep a jar of puffy peppermints on my desk at all times. It is truly amazing what can be cured with a peppermint and a few minutes of conversation. I have to deal now with the food nazis that say we can't have hard candy in school. I told my principal that I would be breaking the law. If the food nazis have a problem with that, they can take it up with me. By the time I get through with them, they'll be running out of my clinic like scalded dogs. I'll even call in a TV crew to record it.

The jar has been on my desk for 13 years now.

[Roland99]

35. A guy I worked with kept a jar of Jelly Bellies.

:)

[AnneD]

37. I am but a

poor civil servant and there are many children. Mints work best here.

[ozymandius]

9. Pfizer 1st-Quarter Profit Falls 18 Pct.

NEW YORK (AP) -- Pfizer Inc., the world's largest drug maker, said Friday its profit fell 18 percent in the first quarter, hurt by one-time charges and disappointing sales of diabetes drug Exubera. Adjusted results beat Wall Street expectations by a wide margin.

Net income grew to $3.39 billion, or 48 cents per share, from $4.11 billion, or 56 cents per share, a year ago. Excluding one-time items, the company reported adjusted profit of $4.8 billion, or 68 cents per share, up from $4.35 billion, or 59 cents per share, last year.

http://biz.yahoo.com/ap/070420/earns_pfizer.html?.v=3

[UpInArms]

10. Profit Climbs at Big Bank; Credit Cards Raise Concern

http://www.nytimes.com/2007/04/20/business/20bank.html?ex=1334721600&en=7bb6ddcb52d55eba&ei=5088&partner=rssnyt&emc=rss

Bank of America said yesterday that first-quarter profit rose 5 percent as growth in investment banking helped offset higher loan losses and deposit costs.

Earnings growth was the slowest since the fourth quarter of 2005, and profit fell in the bank’s three main business lines. Though earnings topped forecasts, revenue fell short. Analysts expressed concern about a 37 percent increase in credit card losses.

<snip>

But the rate of managed card charge-offs rose to 4.73 percent from 3.12 percent, and the rate of managed card loans 30 days past due rose to 5.32 percent from 4.54 percent.

Bank of America set aside $1.24 billion for credit losses, down 2 percent, but net charge-offs rose 74 percent to $1.43 billion.

“MBNA really increased their exposure to consumers on the unsecured side,” said Keith Davis, an analyst at Farr, Miller & Washington, which invests $560 million. “This could come back to haunt them if mortgage problems spread.”

...more...

[UpInArms]

11. 2 Subprime Lenders Announce Job Cuts; Call Centers Closed

http://www.nytimes.com/2007/04/20/business/20lender.html?ex=1334721600&en=73c6d18277ac7153&ei=5088&partner=rssnyt&emc=rss

General Electric’s subprime lending unit, WMC Mortgage, closed three centers yesterday and cut 771 jobs — about half of its remaining staff — while the Residential Capital home-lending unit of GMAC announced it would eliminate as many as 700 workers, or 5 percent of its American work force.

The moves were part of a broad retrenchment in the subprime lending industry amid mounting loan losses.

A WMC spokeswoman, Brandie Young, said that WMC Mortgage was tightening lending standards and reducing loan originations in the United States, and would have about 700 employees in two call centers after the cuts. The cuts, first reported by Reuters, are in addition to the reduction of 460 jobs announced in March.

Centers shut yesterday were in Cosa Mesa and San Ramon, Calif., and in Addison, Tex. Remaining centers are in Orangeburg, N.Y., and at WMC’s headquarters in Burbank, Calif.

At GMAC, about 600 to 700 workers will lose their jobs by midyear, and at least 300 vacant positions will not be filled, a spokeswoman, Gina Proia, said in an interview. Residential Capital, known as ResCap and based in Minneapolis, will have about 12,000 employees after the reductions are made, she said.

...more...

[UpInArms]

12. GE's WMC Mortgage to lay off half of staff

http://news.yahoo.com/s/nm/20070419/bs_nm/usa_suprime_ge_dc

BOSTON (Reuters) - General Electric Co.'s (NYSE:GE - news) WMC Mortgage subprime lending unit plans to lay off 771 workers, about half of its staff, a spokeswoman said on Thursday.

The layoffs will include the closing of facilities in Costa Mesa and San Ramon, California, as well as Addison, Texas. Following the cuts, WMC will employ about 700 people, spokeswoman Brandie Young told Reuters.

"We have realigned our resources to meet customer needs and we've announced a layoff, a work force reduction, which will include the closure of three smaller offices," Young said. "It certainly is in response to the changes across the industry and to align us to the current operating environment."

The Burbank, California-based lender in March disclosed layoffs of more than 460 people. At that time, WMC also stopped writing new loans to people who do not make any downpayment.

<snip>

GE, the world's second-largest company by market capitalization behind Exxon Mobil Corp. (NYSE:XOM - news), is best known for its industrial businesses -- making jet engines, gas turbines and the like. But its commercial and consumer finance arms are up a big slice of the pie, and last year kicked in $45.55 billion of GE's $163.39 billion in revenue.

...more...

[UpInArms]

13. China: Lenovo Plans to Lay Off 1,400

http://www.nytimes.com/2007/04/20/business/worldbusiness/20fobriefs-LENOVOPLANST_BRF.html?ex=1334721600&en=17975a6fc653cc3a&ei=5088&partner=rssnyt&emc=rss

The personal computer maker Lenovo Group said it would lay off 1,400 workers and move jobs to emerging markets to better compete with faster growing rivals. Lenovo, which leapt onto the world stage in 2005 when it bought the PC operation of I.B.M. for $1.25 billion, said it would cut a net 650 jobs worldwide. An additional 750 positions will be moved to Brazil, China, India and Slovakia, countries with lower labor costs that are close to Lenovo’s suppliers and manufacturing operations. Lenovo, which is based in China, said the plan would affect 1,400 workers including contractors, or about 5 percent of its work force. The company said it expected to take a pretax restructuring charge of $50 million to $60 million, mostly in the first quarter, and expected savings of about $100 million in the 2007-8 fiscal year, which began on April 1.

[UpInArms]

14. Wal-Mart Reports Its Chief Was Paid $29.7 Million in 2006

http://www.nytimes.com/2007/04/20/business/20walmart.html?ex=1334721600&en=f59a5064f3f12787&ei=5088&partner=rssnyt&emc=rss

Wal-Mart Stores, the world’s largest retailer, paid its chief executive, H. Lee Scott Jr., $29.7 million last year after sales grew at the slowest pace in more than two decades.

Mr. Scott, 58, received a salary of $1.3 million and stock valued at $15.3 million, Wal-Mart said yesterday in a regulatory filing. The company, based in Bentonville, Ark., also awarded him bonuses of $4.29 million and $8.08 million in stock options.

Mr. Scott’s pay trailed the $36.4 million earned by the chief executive of the Target Corporation, Robert J. Ulrich, who oversaw a 16 percent increase in net income last year. Wal-Mart’s profit was almost unchanged, and sales at stores open at least a year rose 2.1 percent, the smallest gain in at least 27 years.

A year earlier, Mr. Scott received $15.7 million in compensation, including stock options worth $5.07 million. Last year’s amounts are not comparable to those of previous years because a new Securities and Exchange Commission rule spreads the value of stock-option grants over time. Previously, companies reported the full value when options were awarded.

...more...

[Ghost Dog]

15. China ready for economic curbs, but many ask will it matter?

http://asia.news.yahoo.com/070420/afp/070420080307eco.html

BEIJING (AFP) - Chinese investors were ready Friday for what most considered to be inevitable government moves to rein in the economy, after first-quarter growth figures showed previous efforts had been far too little.

But questions also emerged if any further measures Beijing could realistically adopt would matter much.

The fact that China reported growth of 11.1 percent in the first quarter -- despite a slew of policies to slow down activity -- was seen as a sign the world's fourth-largest economy is becoming harder to manage.

"There have been three interest rate hikes over the past year and all of them proved to have little impact on the property market," said Joe Zhou, a Shanghai-based analyst with real estate consulting firm Jones Lang LaSalle.

"Developers won't stop construction just because of a small interest rate rise."

Property professionals were not the only ones looking at future government economic moves with an attitude bordering on apathy.

"It's not like we're working overtime or constantly monitor the central bank website," said Zhang Qi, a Shanghai-based trader with Haitong Securities.

"Even if there's a rate hike, it will be small, and like the others before it, it won't have a big impact on the market," he said.

Reflecting the coolness of the markets, the benchmark Shanghai Composite Index, which covers A and B-shares closed Friday morning up 3.9 percent, following a 4.5 percent tumble one day earlier.

/...

[Ghost Dog]

16. China May Raise Rates Twice This Year to Cool Economy

http://www.bloomberg.com/apps/news?pid=20601080&sid=af_Owd76.B08&refer=asia

April 20 (Bloomberg) -- China may raise interest rates twice this year and order banks to set aside more money to slow lending after economic growth accelerated to 11.1 percent in the first quarter, a survey showed.

The benchmark lending rate will be increased from 6.39 percent, according to 14 of 19 economists surveyed by Bloomberg News yesterday. Banks will be ordered to set aside more money as reserves at least three more times, 11 of 17 predicted.

Premier Wen Jiabao is trying to stop cash from a record trade surplus from overheating the economy, which grew at the second-fastest pace in 12 years even with borrowing costs near an eight-year high. His challenge will be to slow growth without prompting a property and stock market rout.

``The government will likely introduce another round of tightening measures very soon,'' said Mingchun Sun, an economist at Lehman Brothers Holdings Inc. in Hong Kong. ``On top of a rate hike, it may include further increases in the reserve requirement ratio and more administrative measures.''

China's GDP will grow 10.4 percent in 2007, according to the median estimate of 17 economists surveyed, up from 9.9 percent before the figures were released.

The People's Bank of China raised borrowing costs three times and increased the reserve requirement ratio six times in the past year. The government also curbed land use, restricted project approvals and cut export rebates for steel and textiles to discourage investment.

`Relatively Fast' Growth

China's growth is ``relatively fast'' rather than an ``overheating'' because energy resources are abundant and quarterly inflation excluding food prices was unchanged from a year earlier, Li Xiaochao, statistics bureau spokesman, told reporters in Beijing yesterday.

``This is consistent with our view that the government is not overly worried about the overheating of the real economy,'' said Ma Jun, senior economist at Deutsche Bank AG in Hong Kong.

Consumer prices rose 3.3 percent in March, the fastest pace in more than two years and breached the central bank's 3 percent target for 2007. Of the 2.7 percent increase for the quarter, 1.5 percentage points was due to food, Li said.

Fixed-asset investment in urban areas climbed 25.3 percent in the first quarter from a year earlier from 24.5 percent for all of 2006. It rose 29.8 percent in the first quarter last year.

/...

[Ghost Dog]

17. Yuan falls vs dlr, c.bank dampens outlook for gains

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070420:MTFH40973_2007-04-20_08-04-41_SHA58478&type=comktNews&rpc=44

SHANGHAI, April 20 (Reuters) - China's yuan was down against the dollar in late trade on Friday as market expectations of a quicker pace of yuan appreciation, fuelled by the prospects of an interest rate hike, were dampened when the central bank set a weaker mid-point, dealers said.

China's consumer prices rose 3.3 percent from a year earlier in March, the National Bureau of Statistics said on Thursday, confirming a rumour that had swirled in the market for more than a week and sparking speculation that the central bank would soon raise official interest rates again after an increase in March.

An interest rate hike would narrow the current gap of 2.46 percentage points between China's one-year yuan deposit rate <PBOCB> and the one-year U.S. dollar LIBOR <LIUSD1YD=>, inviting speculative fund inflows that would add pressure for the yuan to rise, dealers said.

In the offshore non-deliverable forwards market, one-year non-deliverable forwards <CNYNDFOR=> quoted the yuan at 7.2601/7.2651 at 0727 GMT, indicating appreciation of 6.30 to 6.38 percent from Friday's mid-point in a year's time. The figures were up sharply from 6.09 to 6.14 percent on Thursday.

The central bank set the yuan's daily mid-point <CNY=SAEC> at 7.7230 versus the dollar before trading began on Friday, down from a mid-point of 7.7199 on Thursday, the highest since the yuan was revalued and depegged from the dollar in July 2005.

"Signs again indicate that the pace of exchange rate changes may not necessarily be in line with interest rate movements in a largely closed foreign exchange market like China's," said a Shanghai-based dealer at a European Bank. "More likely, the central bank could even tighten its control over the pace of yuan appreciation when it focuses on the interest rate regime," he said.

/...

[Ghost Dog]

18. Asian Stocks Rise as Sell-Off Concerns Fade; China Mobile Gains

http://www.bloomberg.com/apps/news?pid=20601080&sid=at2nshLCEl68&refer=asia

April 20 (Bloomberg) -- Asian shares rose after a record close on the Dow Jones Industrial Average eased concern a slump in China yesterday would precipitate a global sell-off.

China Mobile Ltd. and BHP Billiton Ltd., whose Chinese sales account for almost 20 percent of revenue, led today's advance.

``The fact that stocks in New York managed to avoid a plunge allayed fears that we were headed for a rout,'' said Mitsushige Akino, who oversees $468 million in assets at Ichiyoshi Investment Management Co. in Tokyo.

China's benchmark CSI 300 Index rebounded 4.3 percent, set for the biggest gain since Jan. 15. The measure yesterday dropped 4.7 percent, the most since a decline on Feb. 27 that caused a worldwide slide in stocks. The Morgan Stanley Capital International Asia-Pacific Index climbed 0.5 percent to 147.64 as of 3:57 p.m. in Tokyo. Yesterday it fell 1.6 percent amid concern China would raise interest rates.

...

Japan's Nikkei 225 Stock Average climbed 0.5 percent to 17,452.62, while the broader Topix index added 0.2 percent. Mitsubishi Corp. and Itochu Corp. led shares of trading companies lower after Merrill Lynch & Co. cut its recommendation on the stocks.

Benchmarks advanced across the region. In the U.S., the Dow Jones Industrial Average rose to 12,808.63, a second consecutive record, after Merck Co. forecast second-quarter profit may beat analyst estimates.

...

China's gross domestic product rose 11.1 percent from a year earlier in the first quarter, exceeding the 10.4 percent growth forecast by economists in a Bloomberg News survey. Inflation last month accelerated to 3.3 percent, the fastest pace in more than two years, and breached the central bank's 3 percent target. Premier Wen Jiabao said the government will take steps to rein in lending and investment.

The slump in the CSI 300 yesterday was the biggest fall since Feb. 27, when it plunged 9.2 percent and sparked a global equities sell-off that wiped out $3.3 trillion of market value.

``The drop in China made investors worried about a possible slump in the global markets,'' said Nobuhiko Kuramochi at Shinko research Institute in Tokyo. ``What's different from February's slump is that we had a calm reaction in the currency and U.S. markets.''

/...

[Ghost Dog]

19. HK shares gain ground after Thursday sell-off

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070420:MTFH41000_2007-04-20_08-05-43_HFB078148&type=comktNews&rpc=44

HONG KONG, April 20 (Reuters) - Hong Kong blue chips rose 1.3 percent on Friday to recoup some of their losses from the previous session's sell-off, as China Mobile (0941.HK: Quote, Profile , Research) led the way before its first-quarter earnings report was due later in the day.

The benchmark Hang Seng Index <.HSI> ended at 20,566.59.

The China Enterprises index of H-shares <.HSCE>, or Hong Kong-listed shares in mainland companies, gained 1.5 percent.

[Ghost Dog]

20. S.Korea won up on shares; cautious of intervention

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070420:MTFH41260_2007-04-20_08-17-12_SEO250065&type=comktNews&rpc=44

SEOUL, April 20 (Reuters) - The South Korean won <KRW=> rose against the dollar on Friday, helped by exporters' demand for the local unit and as foreigners kept up a Seoul shares buying spree.

But the gains were capped after the country's foreign exchange authorities repeated warnings against suspected speculative trade and by importer deals.

The won is expected to rise further on bids from exporters and foreign equity investors next week, although market players remain wary of possible dollar buying intervention by authorities to check the strength in the local unit.

The South Korean currency was last quoted at 927.4/7.9 per dollar, compared to its previous closing bid of 928.4. It rose 0.16 percent against the U.S. unit for the week.

"Demand for the won from exporters and foreign investors outweighed the authorities' warnings, lifting the currency," said a foreign bank dealer.

"The South Korean unit is likely to rise further next week, but investors are reluctant to chase it after a slew of official comments."

/...

[Ghost Dog]

21. Key 10-year JGB price falls on rise in Tokyo stocks

http://asia.news.yahoo.com/070420/kyodo/d8ok70ho1.html

(Kyodo) _ The price of the benchmark 10-year Japanese government bond fell Friday on the back of rises in Tokyo stocks.

In interdealer trading, the yield on the No. 285, 1.7 percent issue grew 0.010 percentage point from Thursday's close to 1.685 percent.

The price of the key June futures contract for 10-year bonds declined 0.20 point to 133.70 on the Tokyo Stock Exchange, with the yield up 0.018 percentage point to 1.967 percent.

[Ghost Dog]

22. India inflation back over 6 pct before policy review

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070420:MTFH41261_2007-04-20_08-17-12_BOM303612&type=comktNews&rpc=44

NEW DELHI, April 20 (Reuters) - India's annual inflation rate unexpectedly jumped back above 6 percent in early April, driven by prices of food and manufactured goods, heightening the risk the central bank will again tighten policy at a review next week.

The wholesale price index rose 6.09 percent in the 12 months to April 7, data showed on Friday, well above the previous week's annual rise of 5.74 percent and a forecast of 5.79 percent in a Reuters poll.

"The bulk of the rise seems to have originated in primary articles, making it challenging for RBI to manage inflation expectations," said A. Prasanna, analyst at ICICI Securities.

"With manufacturing prices also rising steadily, we believe that further monetary tightening is necessary," he said.

The Reserve Bank of India (RBI) reviews policy next Tuesday. It has raised the reserve requirement for banks three times since December and has raised its main lending rate five times since early June last year to try to curb credit growth and inflation.

Annual inflation hit 6.7 percent, its highest in more than two years, in late January.

/...

[AnneD]

39. That is what we are hearing

from relatives. Thank goodness Hubby and his brother bought their home and apartment 5 years ago. I won't even tell you how much they have appreciated.

Hubby bought the apartment for widowed sister and her 2 kids and bachelor brother. He helped with the down payment for the other brother's house.

Sadly, the two other brothers did not buy and are now retired. India has a mandatory retirement age of 65. Ouch!

[Ghost Dog]

23. European stocks rally on merger talk

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B073a8500%2D8f97%2D4bcf%2D871d%2D7d744f46456e%7D

European equities recovered some of the previous session’s losses as bid speculation in the banking and utilities sectors overshadowed concerns over China’s likely actions to stem excessive growth. In mid-session trade, the FTSE Eurofirst 300 was up 0.9 per cent to 1,574.02, Frankfurt’s Xetra Dax added 1.1 per cent to 7,320.6, the CAC 40 in Paris gained 1 per cent to 5,887.89 and London’s FTSE 100 climbed 0.8 per cent to 6,488.4. French bank Societe Generale jumped 6.9 per cent to €154.80 as speculation that Italy’s UniCredit was eyeing an approach persisted. UniCredit’s strategy includes expansion outside its domestic market and in 2005 the company bought HVB Group of Germany. However, both banks have refused to comment on the current speculation. UniCredit’s shares were up 3.4 per cent to €7.49. Germany’s Commerzbank, which usually gets a boost whenever merger talk hits the sector, was up 3.1 per cent to €35.85. It was also lifted after UBS raised its target price on the stock from €30 to €40 and reiterated its ”buy” rating. Spanish utilities were higher as expectations of sector consolidation resurfaced. Spain’s Iberdrola, which is expected to complete its $24bn takeover of Scottish Power this month, was up 4 per cent to €38.05, while Gas Natural, also of Spain, climbed 3.5 per cent to €38.56.

[Ghost Dog]

45. European Stocks Rally, Led by Alliance Boots, Societe Generale

http://www.bloomberg.com/apps/news?pid=20601085&sid=aOoPZQxPUaTc&refer=europe

April 20 (Bloomberg) -- European stocks posted the biggest rally in a month after Alliance Boots Plc received a sweetened $21.8 billion offer and takeover speculation intensified in the banking and steel industries.

Societe Generale SA had the largest gain in more than four years as investors bet on a merger with UniCredit SpA. Vallourec SA rose on talk it may be bought by Arcelor Mittal, the world's largest steelmaker. SAP AG climbed after posting higher earnings.

``The picture remains positive,'' said Job Curtis, who manages about $2.2 billion at Henderson Global Investors in London. ``Given all this takeover activity, the market is reasonably well supported.''

Takeovers helped send the Dow Jones Stoxx 600 Index to the highest since September 2000 this week, outweighing concern about slowing global growth. So far in 2007, takeovers in Europe have totaled $668 billion, according to data compiled by Bloomberg. They reached a record $1.6 trillion in 2006.

...

The Stoxx 600 added 1.3 percent to 389.27 in London, completing the third weekly advance in a row. The Stoxx 50 rose 1.5 percent and the Euro Stoxx 50, a measure for the 13 nations sharing the euro, gained 1.8 percent.

/details...

[Ghost Dog]

46. European (bourses) back at 6-year peaks on merger talk

http://mwprices.ft.com/custom/ft2-com/html-story.asp?pulse=true&siteid=ft&dist=ft&guid=%7B54fecb8f%2Db376%2D4859%2Daf66%2Da237cd010921%7D

European equities recovered some of the previous session’s losses as bid speculation in the banking and utilities sectors overshadowed concerns over China’s likely actions to stem excessive growth. The FTSE Eurofirst 300 closed up 1.3 per cent to 1,578.8, Frankfurt’s Xetra Dax added 1.4 per cent to 7,342.5, the CAC 40 in Paris gained 1.8 per cent to 5,938.9 and London’s FTSE 100 climbed 0.7 per cent to 6,486.8. French bank Societe Generale jumped 6.9 per cent to €154.80 as speculation that Italy’s UniCredit was eyeing an approach persisted. UniCredit’s strategy includes expansion outside its domestic market and in 2005 the company bought HVB Group of Germany. However, both banks have refused to comment on the current speculation. UniCredit’s shares were up 3.4 per cent to €7.49.

edit: missing link.

[UpInArms]

25. 9:34 EST Ponies for Everyone! DOW up 100+ at opening

Dow 12,913.87 105.24 (0.82%)
Nasdaq 2,529.34 23.99 (0.96%)
S&P 500 1,481.03 10.30 (0.70%)
10-Yr Bond 4.668% 0.002

NYSE Volume 342,688,000
Nasdaq Volume 200,513,000

09:15 am : S&P futures vs fair value: +10.0. Nasdaq futures vs fair value: +16.0.

09:00 am : S&P futures vs fair value: +9.3. Nasdaq futures vs fair value: +14.8. The stage remains set for stocks to end a solid week in even stronger fashion. The Dow, S&P 500 and Nasdaq are already up 1.6%, 1.2% and 0.5%, respectively, this week, with the tech-heavy latter looking to make up the most ground today on the back of Google. It beat analysts' estimates for the 10th time in 11 tries since going public with a 69% surge in Q1 profits.

Tech is looking to get an additional boost from strength in semiconductors following encouraging developments out of Advanced Micro Devices (AMD) regarding cost cuts and the price battle between AMD and Intel Corp. (INTC). It is also worth noting that the absence of any notable economic data this morning is placing even more emphasis on earnings and guidance.

08:30 am : S&P futures vs fair value: +9.0. Nasdaq futures vs fair value: +15.0. Still shaping up for the major averages to start on an upbeat note as better than expected earnings reports continue to trickle in. McDonald's (MCD) looks to open at a new all-time high after matching recently raised guidance and announcing an agreement to franchise 1600 stores in Latin America and the Caribbean.

Fellow Dow component Pfizer (PFE) handily topped expectations; but with PFE shares up 7% this month alone and Google's impressive quarter offering some optimism about the Tech sector's growth prospects, it won't be surprising to see some money rotate out of defensive areas like Health Care and into a more growth-oriented areas like Technology.

08:00 am : S&P futures vs fair value: +9.0. Nasdaq futures vs fair value: +15.0. Early indications are pointing to a sharply higher open for stocks. The market's resilience to the sell-off in Asian markets that preceded yesterday's negative start continues to offer some relief. More notably, though, participants are rallying around another round of upbeat reports offering evidence that first quarter earnings won't be as bad as initially feared. Google (GOOG) and American Express (AXP) kicked things off on a positive note last night with solid results.

Dow components Caterpillar (CAT) and Honeywell (HON) topping Wall Street expectations and raising guidance this morning, though, have really given a market concerned about the pace of economic growth something to cheer about.

06:17 am : FTSE...6487.40...+46.80...+0.7%. DAX...7317.61...+74.88...+1.1%.

06:17 am : S&P futures vs fair value: +6.6. Nasdaq futures vs fair value: +10.8.

06:17 am : Nikkei...17452.62...+80.65...+0.5%. Hang Seng...20566.59...+266.88...+1.3%.

[Roland99]

27. Freaky Friday!

[Neshanic]

29. The last big party before the lifeboats get launched.

This is the big one, the real big one, the party of all parties into the summer, then the doldrums of late summer at the beach houses. Then the BIG drop.

Dot com crash...
Housing crash...

The economy held together desperately with string, but it's not going to hold into 2008.

[mojavekid]

30. Mogambo Guru: Inflation Adjusted Profit Pizza

http://www.kitco.com/ind/Daughty/apr202007.html

"So you invested a whole pizza, 'made a profit' in nominal (non-inflation adjusted) terms, paid taxes on the gain, and yet you got back less than 9/10's of a pizza? Hahaha! Nice investing there, dude!"

The doors of the Mogambo Bunker of Paranoid Seclusion (MBOPS) clanged shut at the instant I learned that Total Fed Credit actually went down by $2.8 billion last week, meaning that TFC has not increased since January 1, which is almost a third of the year.

This means that new money is not being created, which is the death-knell for a bizarre economic system like ours, that is founded upon constantly expanding the levels of fiat money and its creation by insane levels of crushing debt, all by virtue of an out-of-control fractional-reserve system of banking.

And if there is one thing that I am sure of (a lesson gleaned from watching a lot of movies and TV while consuming tons of popcorn, Milk Duds, Junior Mints and oceans of sugary carbonated drinks), it is that angry mobs get really nasty at the drop of a hat - especially during crises, and doubly especially during the kinds of crises that are "death-knells of economic systems" (a la the French Revolution).

plenty more...

[Hugin]

42. Ah, yes... I must have some Mogambo.

:thumbsup:

[54anickel]

76. Bwahahaha! Love this part on Greenspin....

Well, of course he did not actually say that, but I saw him on the TV news. And I could tell from the way he averted his rheumy, lying eyes - and from how they nervously darted from side to side in an almost rat-like manner - that he expected The Mogambo to kick open the doors and come storming in, grab him by his necktie, and give him the face-slapping of his filthy life for being such a lying (slap), despicable (slap) chairman (slap) of the Federal Reserve (slap slap slap) since he deliberately created the money and credit to produce these bubbles and booms in stocks, bonds, size of governments, derivatives, and houses - all of which are now going to collapse and take everything down with it! Slap slap slap slap slap!


On edit....

Lee Iacocca actually wrote this...? Egads, my head is spinning!

"Had enough? Am I the only guy in this country who's fed up with what's happening? Where the hell is our outrage? We should be screaming bloody murder. We've got a gang of clueless bozos steering our ship of state right over a cliff, we've got corporate gangsters stealing us blind, and we can't even clean up after a hurricane. I'll give you a sound bite: Throw the bums out! I'll go a step further. You can't call yourself a patriot if you're not outraged."

[mojavekid]

31. Gold rallies, nears $700 an ounce

http://www.marketwatch.com/news/story/gold-rallies-nears-700-ounce/story.aspx?guid=%7BDE576B6D%2D1ACF%2D43E8%2D81A7%2D98DA3FB3DE95%7D


NEW YORK (MarketWatch) -- Gold futures rose sharply Friday, fueled by weakness in the dollar as well as a rally in crude-oil prices, as traders shrugged off worries that red-hot growth will force Beijing to cool the Chinese economy.
Gold for June delivery rallied 1%, adding $6.70 to stand at $695.0 an ounce on the New York Mercantile Exchange.
"A near-perfect storm has aligned both technically and fundamentally for gold," said Peter Grandich, editor of the Grandich Letter. "A test of the 2006 highs around $735 is not a question of if, but when."
James Moore, metals analyst at TheBullionDesk.com, said: "Strong physical buying has been seen on dips, while the current bearish sentiment toward the U.S. dollar may encourage diversification away from the greenback."
On Thursday, gold futures dropped $5 an ounce to close at their lowest level in a week, as news of faster-than-expected growth in China in the first quarter triggered worries that the government will have to take measures to slow down its economy, a prospect that would reduce demand for metals.


more at link...

[mojavekid]

47. Forbes: Metals - Gold extends gains as dollar flounders, oil gains

http://www.forbes.com/markets/feeds/afx/2007/04/20/afx3634981.html

LONDON (Thomson Financial) - Gold rose in afternoon trade to breach the 692 usd barrier as the dollar continued to slip against sterling and the euro, and oil rose on supply fears ahead of the Nigerian elections tomorrow.

Platinum meanwhile extended gains to set a fresh five-month high for the third day in a row.

At 3.43 am, spot gold was at 690.75 usd an ounce, up from 683.55 usd in late New York trade yesterday. The precious metal briefly traded as high as 693.50 usd.

Gold, which is typically seen as an alternative investment to the dollar and trades in an inverse relationship to it, benefited from a weakening of the US currency against the euro and sterling.

'Gold remains a dollar story,' said Jon Nadler, an analyst at Kitco. 'It is looking at the pound and the euro and it almost has no choice but to rise.'

more at link...

[mojavekid]

33. Oil Rises on Threat of Violence in Nigeria, Drop in OPEC Output

http://www.bloomberg.com/apps/news?pid=20601072&sid=aUgSepBEPNVE&refer=energy

April 20 (Bloomberg) -- Crude oil rose on speculation violence in Nigeria will hurt the country's exports and supplies from OPEC will decline.

Presidential elections are being held tomorrow in Nigeria, Africa's largest oil producer, where militant attacks have already cut about a quarter of crude output. Exports by the Organization of Petroleum Exporting Countries may fall 0.4 percent in the month ending May 5, according to Oil Movements, a consulting firm.

Oil prices ``increased before the weekend because of elections in Nigeria,'' said Thina Saltvedt, an analyst at Nordea Bank AB in Oslo. OPEC ``will wait and see how demand for crude turns out. They seem to be following the cuts they promised.''

Crude oil for May delivery rose as much as $1.02, or 1.7 percent, to $62.85 a barrel on the New York Mercantile Exchange. The contract, which expires today, was at $62.70 at 1:06 p.m. London time. The more-active June contract rose 31 cents to $63.63.

A Nigerian navy ship patrolling near an oil rig was attacked by militants yesterday, said Guy Cantwell, a spokesman for Transocean Inc., the rig's owner. The vessel was supporting a rig drilling for oil off the Nigerian coast. All the rig's crew are ``safe and accounted for,'' Cantwell said.

more at link...

[AnneD]

36. When the crystal ball is hot...

it's hot. That was called earlier in the week. Gas up your tanks today and tomorrow for the best prices.

[54anickel]

38. A Tilt in Wall Street’s Pursuit of Private Equity

http://www.nytimes.com/2007/04/20/business/20insider.html?_r=1&adxnnl=1&oref=slogin&ref=business&adxnnlx=1177080885-QeqwGl60gP9g5Wy6HMUKYA

snip>

A major change has now quietly swept Wall Street. A some point, about the time when the Blackstone Group’s $15.6 billion fund became a $20.6 billion fund and Goldman neared a $20 billion fund, the script was rewritten. What was once an agonizing business decision — should we compete against our clients? — has become an accepted business practice.

The reason is simple. Wall Street banks cannot resist the lure of the private equity cash machine, so that the challenge, as the executive went on to say, is not to avoid conflicts but to manage them. Roughly translated that means: We refuse to leave money on the table or in someone’s pocket, even if that someone is a client.

The balancing act has been a delicate one. Generally the banks have partnered with important, fee-generating clients, sometimes by not seeking too much control, but being there to rake in the fees. Every iteration of partnership has been tried: Merrill Lynch used its balance sheet to partner with Bain Capital and Kohlberg Kravis Roberts to buy HCA, and JPMorgan and Bank of America teamed up with J. C. Flowers to bid for Sallie Mae.

Of course, banks have always been investors, but the huge scale of deals now means that the balancing act will get a lot messier.

snip>

For one, the bank has an obligation to the investors in its fund to get the best deal, and that can often be different from the obligation they have to shareholders, which is to make sure that Goldman Sachs maintains its franchise of offering chief executives the best possible advice — that is, advice free of motives from a bank on the prowl for deals. (Goldman Sachs declined to comment for this column.)

There was a time when banks were advisers. Then they advised and financed. Now they advise, finance, invest. Logic would suggest that if the banks truly had their clients’ interests at heart, the banks would stick to advising and financing, hardly low-fee businesses.

snip>

Which brings us back to conflicts and the new Wall Street mantra that it is in “the business of managing conflicts.” A more honest approach would be that Wall Street is increasingly competing with its clients with all its might and capital — essentially trying to sound nice while playing rough. And so far, it has worked out swimmingly.

The test of these partnerships will be, of course, when the wheels fall off a deal and the conversation shifts from how to divvy up the profits to who is in control of the Titanic.

more...

[54anickel]

40. Hedge fund inflows top $60 billion in quarter

http://www.latimes.com/business/la-fi-hedge20apr20,1,4867956.story?coll=la-headlines-business

Investors poured more than $60 billion into hedge funds in the first three months of the year, or nearly half of the record $126 billion that flowed into the private investment pools for all of 2006, according to data released Thursday.

Some naysayers have predicted that the hedge fund wave will crest. "We haven't reached that point yet," said Ken Heinz, president of Hedge Fund Research Inc. of Chicago, which released the report.

Demand came from both individual and institutional investors, experts said, and was spurred by both solid investment performance and the lack of any headline-generating hedge fund meltdowns.

The statistics are further proof that hedge funds and their close cousins — private equity funds — are gaining mainstream acceptance, especially as investors seek alternatives to the recently gyrating stock market.

snip>

The inflows couldn't come at a better time for managers of hedge funds and private equity funds, such as Fortress Investment Group, which conducted an initial public stock offering earlier this year, and Blackstone Group, which is planning to sell shares to the public.

snip>

Anecdotal evidence suggests that the cash streaming into hedge funds is coming in part from stocks and bonds.

According to Infovest 21, for example, the Teachers Retirement System of Texas is boosting its hedge fund and private equity allocations to 10% each. Hedge funds were previously 1.7% of its portfolio and private equity was 2.4%.

more...

[54anickel]

41. Hedge funds creating wealth for law firms, too

http://www.iht.com/articles/2007/04/19/business/hedge.php

NEW YORK: For corporate lawyers of a certain age, it seems like the 1980s all over again.

Proxy fights, once the exclusive domain of investors like Carl Icahn, are on the rise. The primary cause is easy to spot: "The resurgence of shareholder activism is a direct result of the growth of hedge funds," said Marc Weingarten, a partner at Schulte, Roth & Zabel.

And the re-emergence of proxy fights is a reason that mergers and acquisitions lawyers, along with longtime fund-formation lawyers, are redefining the hedge fund practice.

The result is a boon both to law firms that originally advised hedge funds, like Schulte Roth, Akin Gump Strauss Hauer & Feld and Seward & Kissel, as well as to those with more traditional corporate finance practices, like Skadden, Arps, Slate, Meagher & Flom; Sidley Austin; Sullivan & Cromwell; and Willkie Farr & Gallagher, among others.

"In the early days, the legal representation of hedge funds was all about organizational documentation, getting the private placement memo prepared and getting the offering done," noted Kenneth Raisler of Sullivan & Cromwell. That business, he said, "didn't suit" his firm's lawyers, who were better known for their skills in mergers and acquisitions, because it was a "relatively commoditized business with low margins."

Now, his firm, like many others, counts a number of hedge funds among its clients.

With some 9,000 funds now managing more than $1.4 trillion in assets, hedge fund money is creating new wealth for law firms.

more...

[OrangeCountyDemocrat]

43. THIRTEEN THOUSAND MILESTONE!!!!!!!!!!!!!

CNBC is salivating over this today.

NOW IS THE TIME TO BUY!!! That's what they're saying.

They're probably going to throw confetti and streamers if it makes it.

Things are GREAT guys! Nothing to worry about.

[DemReadingDU]

48. Yeh, Party!

:party:

[Roland99]

49. Well, sure, deflate the crap out of the dollar and US exports will move up some

and make some global conglomerates more money (and the remora brokerage firms transacting the stock sales).


Everyone else gets bread and water, if they're lucky.

[Ghost Dog]

50. Plus, all that debt (and the interest payments on it)

owed to (most of) the rest of the world,

can get "paid" in debased "Mickety-Mouse" currency. Oh yeah.

But, hey, there's still "Military Might"!!!

Sorry. :-(

[OrangeCountyDemocrat]

44. Very Bearish Housing Expert Coming Up On CNBC

Supposedly just sold his house and plans to rent for year or probably more.

[citizen snips]

51. Pfizer 1Q Profit Falls 17.5 Percent

NEW YORK (AP) -- Pfizer Inc., the world's largest drug maker, said Friday its profit fell 17.5 percent in the first quarter, hurt by one-time charges and disappointing sales of diabetes drug Exubera. Adjusted results beat Wall Street expectations by a wide margin.

Net income fell to $3.39 billion, or 48 cents per share, from $4.11 billion, or 56 cents per share, a year ago. Excluding one-time items, the company reported adjusted profit of $4.8 billion, or 68 cents per share, up from $4.35 billion, or 59 cents per share, last year. Pfizer, which early in the quarter announced it would trim its work force by 10 percent, reported restructuring costs of $812 million, up from $299 million a year ago.

Revenue rose 6 percent to $12.47 billion from $11.75 billion last year. Sales of the company's best selling drug, cholesterol reducer Lipitor, grew 8 percent to $3.36 billion, topping most Wall Street estimates. Price increases, fewer rebates and favorable foreign-exchange rates made up for declining U.S. prescriptions of Lipitor, which has come under heavy competition from cheaper, generic cholesterol drugs.

Sales of the inhalable insulin Exubera, however, were "disappointing," the company said, not specifying dollar amounts.

more...
http://biz.yahoo.com/ap/070420/earns_pfizer.html?.v=13

[citizen snips]

52. Schlumberger 1Q Profit Up 63 Percent

HOUSTON (AP) -- Schlumberger Ltd. said Friday its first quarter profit spiked 63 percent, as the world's largest oilfield services provider continued to benefit at the start of 2007 from heavy activity by oil and natural gas companies worldwide.

Net income rose to $1.18 billion, or 96 cents per share, from $722.5 million, or 59 cents per share, a year ago.

Operating revenue jumped to $5.46 billion, from $4.24 billion a year ago, and $5.35 billion in the fourth quarter of 2006. Oilfield services revenue of $4.76 billion increased 28 percent year-over-year, while revenue at the company's WesternGeco seismic arm jumped 33 percent to $706 million.

On average, analysts surveyed by Thomson Financial were looking for a profit of 91 cents per share on revenue of $5.4 billion.

more...
http://biz.yahoo.com/ap/070420/earns_schlumberger.html?.v=9

[citizen snips]

53. Sector Glance: Casino Operators

NEW YORK (AP) -- Shares of casino operators were mixed Friday as Shuffle Master Inc. gained on Pennsylvania's approval of one of its products.

Shuffle Master, which makes automatic card shuffling machines and casino chip sorters, received approval Thursday from the Pennsylvania Gaming Control Board for the blackjack version of its TableMaster product, an electronic table game.

The game also recently gained approval in Nevada.

Here are how some key casino operators performed Friday:

Shuffle Master, up 87 cents, or 5.1 percent, to $17.99 on the NYSE.

more...
http://biz.yahoo.com/ap/070420/sector_glance_gaming.html?.v=1

[citizen snips]

54. Soybeans Rise, Grains Mixed

CHICAGO (AP) -- Soybean futures advanced while grain futures finished mixed Friday on the Chicago Board of Trade.

Wheat for May delivery rose 6 cents to $5.02 a bushel; May corn fell 10 3/4 cents to $3.60 1/2 a bushel; May oats fell 10 cents to $2.58 a bushel; May soybeans rose 5 cents to $7.23 1/4 a bushel.

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

June live cattle fell .45 cent to 92.27 cents a pound; May feeder cattle fell .62 cent to $1.0745 a pound; May lean hogs fell .10 cent to 76.57 cents a pound; May pork bellies rose .13 cent to $1.0500 a pound.

http://biz.yahoo.com/ap/070420/board_of_trade.html?.v=3

[citizen snips]

55. Google Among Big Movers on Wall Street

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

NYSE

Caterpillar Inc., up $3.33 at $71.95.

The manufacturer of heavy equipment posted better-than-expected quarterly profit and issued robust profit guidance.

more...
http://biz.yahoo.com/ap/070420/wall_street_stocks.html?.v=2

[citizen snips]

56. Sector Snap: Steel Producers Climb

NEW YORK (AP) -- Shares of steel producers rose Friday, buoyed by strong quarterly reports from two companies in the sector the day before.

Nucor Corp. on Thursday posted first-quarter sales and profit that beat analyst expectations. Earnings rose slightly despite lower production.

Also Thursday, Reliance Steel & Aluminum Co. said first-quarter profit surged 55 percent, boosted by sharply higher revenue, topping Wall Street expectations.

In Friday afternoon trading, shares of Nucor jumped 80 cents to $67.43, while Reliance Steel & Aluminum added $1.64, or 2.9 percent, to $58.54, both on the New York Stock Exchange. Earlier in the say, Reliance Steel traded at a new 52-week high of $60.49, eclipsing a previous peak of $56.90.

more...
http://biz.yahoo.com/ap/070420/steel_producers_sector_snap.html?.v=1

[citizen snips]

57. McDonald's 1Q Profit Climbs 22 Percent

CHICAGO (AP) -- McDonald's Corp. extended its hot streak to four years with a 22 percent jump in first-quarter earnings, and also said Friday it will sell nearly 1,600 restaurants in Latin America and the Caribbean to a franchisee -- a gain it pledged to return to shareholders.

The announcement sent the fast-food leader's shares briefly to an all-time high of $49.70 before they dipped in profit-taking. The once-stagnant stock has quadrupled since falling to $12.12 in March 2003.

The planned transaction involving restaurants in 18 countries will result in a non-cash impairment charge of $1.6 billion in the second quarter. But it reduces the company's financial exposure in a challenging region and will net McDonald's about $700 million in cash, which it said will be used to increase share buybacks and dividends.

Analysts hailed the sale, which had been expected as McDonald's pares the number of company-owned restaurants worldwide, and said they saw no signs the company's resurgence is running out of steam.

more...
http://biz.yahoo.com/ap/070420/earns_mcdonald_s.html?.v=13

[citizen snips]

58. Coach Shares Rise Ahead of Earnings

NEW YORK (AP) -- Shares of Coach Inc. flirted with its 52-week high on Friday, ahead of the handbag and accessory maker's Tuesday earnings report, as analysts predicted strong fiscal third-quarter results.

Stifel Nicolaus & Co. analyst David A. Schick expects "solid" results for the New York-based company.

"We believe strong momentum from the holiday season continued through the third quarter, highlighted by the introduction of the Carly handbag group, new styles in the Hamptons and Soho collections and the introduction of fragrance (store checks indicate strong initial reception)," wrote Schick in an April 20 earnings preview. He affirmed his "Buy" rating, and raised his price target to $55 from $50, suggesting growth of 6 percent over the stock's closing price Thursday of $51.83.

Oppenheimer & Co. analyst Christopher Jones reiterated his "Buy" rating as well. Jones said in a note to investors on Friday he believed the company will "continue to create innovative products and distribute them through new and existing channels."

more...
http://biz.yahoo.com/ap/070420/coach_mover.html?.v=1

[citizen snips]

59. Sector Glance: Internet

NEW YORK (AP) -- Shares of major Internet stocks mostly increased Friday, helped along by a rise in Google shares following the company's announcement that its first-quarter profit grew 69 percent.

After the end of trading Thursday, Google said its quarterly profit grew year-over-year to $1 billion. The per-share earnings came in 38 cents above Street estimates.

Following the news, a spate of analysts reiterated their ratings for the stock.

In a client note Friday, Goldman Sachs analyst Anthony Noto restated his "Buy" rating and $620 price target for Google, saying he expects healthy growth for the year.

more...
http://biz.yahoo.com/ap/070420/sector_glance_internet.html?.v=1

[citizen snips]

60. Sector Glance: Apparel Sellers

NEW YORK (AP) -- Apparel retailers' stock surged on Friday, as positive earnings reports, including one from Google Inc., sent the market rising.

Among the many gainers, Hot Topic Inc. and Guess? Inc. were among the biggest winners in the sector.

Here is how some New York Stock Exchange-listed apparel retailers finished Friday:

Gap Stores Inc. shares rose 35 cents to $33.05,

AnnTaylor Stores Corp. shares rose 88 cents to $38.86,

more...
http://biz.yahoo.com/ap/070420/sector_glance_apparel_sellers.html?.v=1

[citizen snips]

61. Sector Glance: Fast Food

NEW YORK (AP) -- Shares of fast food companies had mixed reactions to news Friday that burger giant McDonald's Corp. saw profits rise 22 percent in the first quarter.

McDonald's said it would also sell about 1,600 restaurants in Latin America and the Caribbean to a franchisee and return the gain to shareholders through dividends and share buybacks. The report sent McDonald's shares to an all-time high of $49.70 earlier in the day.

Here is how some key fast food stocks did on Friday:

McDonald's Corp., down 42 cents to $48.36.

Burger King Corp., up 5 cents to $23.36.

more...
http://biz.yahoo.com/ap/070420/sector_glance_fast_food.html?.v=1

[citizen snips]

62. Sector Glance:Oilfield Service Providers

NEW YORK (AP) -- Oilfield service providers ended Friday mostly higher, as Schlumberger Ltd. kicked off the industry's earnings season with a 63 percent rise in first-quarter profit.

Schlumberger credited increased activity in Europe, Africa, the Middle East and Asia for some of the gains. Analysts, though, have been worried about a slowdown in the North American market, which could drag on results from competitors more exposed to U.S. and Canadian markets.

The overall Philadelphia Oil Service Sector Index rose 2.16 or 1 percent to end at 224.14.

Here is how some key oilfield service providers closed Friday:

Schlumberger, up 91 cents to $75.23.

more...
http://biz.yahoo.com/ap/070420/sector_glance_oilfield_services.html?.v=1

[citizen snips]

63. Sector Glance: Telecom

NEW YORK (AP) -- Telecom stocks traded mostly higher Friday, with MetroPCS Communications Inc. up for a second day after its strong initial public offering, and rival Leap Wireless International Inc. inching higher as well.

AT&T Inc., set to report its first-quarter results next Tuesday, also saw its stock climb. The company said Thursday it now has about 18,000 subscribers for its U-verse Internet TV service, and it is now installing the service at five times the rate in January.

"While the initial results have been positive, it is still very early and the numbers are still very small, and as such the comparison with the cable net adds is apples-to-oranges," said Wachovia analyst Gray Powell in a note to investors. But if the trend sustains, AT&T "will likely be the leader in the wireline/wireless convergence offering products and services that are tough for competitors to match."

Here is how some key telecom stocks fared Friday:

AT&T rose 56 cents to close at $39.87 on the New York Stock Exchange.

more...
http://biz.yahoo.com/ap/070420/sector_glance_telecom.html?.v=1

[TrogL]

64. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.H06&v=s

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2007-03-30 Friday, March 30 0.867303 USD
2007-04-02 Monday, April 2 0.865351 USD
2007-04-03 Tuesday, April 3 0.86408 USD
2007-04-04 Wednesday, April 4 0.863334 USD
2007-04-05 Thursday, April 5 0.868885 USD
2007-04-06 Friday, April 6 0.868734 USD
2007-04-09 Monday, April 9 0.867905 USD
2007-04-10 Tuesday, April 10 0.871156 USD
2007-04-11 Wednesday, April 11 0.873439 USD
2007-04-12 Thursday, April 12 0.880127 USD
2007-04-13 Friday, April 13 0.878812 USD
2007-04-16 Monday, April 16 0.884251 USD
2007-04-17 Tuesday, April 17 0.885504 USD
2007-04-18 Wednesday, April 18 0.885897 USD
2007-04-19 Thursday, April 19 0.886054 USD
2007-04-20 Friday, April 20 0.89071 USD


Current values

Last trade 0.8928 Change
Previous Close 0.8879 Open 0.8887
Low 0.8886 High 0.8933


Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The June Canadian Dollar closed higher on Friday as it extended this week's rally above the 62% retracement level of the September-February decline crossing at .8877. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish hinting that sideways to higher prices are possible near- term. If June extends this month's rally, the 75% retracement level of the September-February decline crossing at .8967 is the next upside target. Closes below the 10-day moving average crossing at .8824 would confirm that a short-term top has been posted.


Analysis

OK, it's time to start paying attention to the loonie. Somethin's up.

Go check out my charts here.

http://members.shaw.ca/trogl/looniewatch.html

The loonie has steadily been rising against pretty much everything except the market's darling the Euro (and it's even been making some gains there). If you look at the 120 day charts, it's pretty much gained everything it lost from the last time the market soured on it. That IIUC was more political than anything else. Harper hasn't done anything monumentally stupid lately (we'll ignore the Kyoto flap as off-topic) so people's jitters have calmed and they're taking a second look.

I'm figuring everybody's bailing out of the greenback for perfectly good reasons. Just read some of the posts above about sub-prime lenders and the meteoric rise of China's GDP. The mad money's going on the Euro. I think the safe money might be lookin' at the Great White North. AFAIK, the banks here weren't allowed to go hog-wild on sub-prime mortages. I was in the market at the time and I had to pony up my 10% down like everybody else and got a typical boring deal.

Canada's fairly cosy with China. Everybody was wondering why Chretien was dragging a junket over there every couple of weeks - now we know. We've kept our contacts with Europe. The oil sands are booming - workers are sleeping in hostels' cause they can't build housing for them fast enough. Everybody who can hold a wrench without hurting themselves is building extraction plants. The Alberta government's announced yet another surplus - and they're channeling Keynes and blowing most of it on infrastructure (see above). When the boom's over, it'll still be there. It's wierd - we've got Conservative governments federally and in Alberta and there's not even a lone voice in the wilderness whispering "tax cuts for the rich".

We had a lecturer in from England and during breaks he'd tell stories comparing British, American and Canadian ways of looking at the world, generally portraying British as dull, plodding and spending too much time in the pub, Americans as wackos and Canadians as safe, boring and polite. Typical joke - "How do you make 24 Canadians get out of a swimming pool? .... Ask them nicely."

In wild economics times, sometimes safe is good. Sometimes a boring, old-fashioned mortgage IS a good mortgage.

And maybe it might be worth having a few shiny loonies in your pocket right now.

[Ghost Dog]

69. I hear you, TrogL.

Over a year ago, when the moment looked right, I shifted my last few thousand out of the USD and into CND, for the reasons you cite; but couldn't just leave it sitting around so gambled on some shares in some good-looking mineral-exploitation-development-project 'penny shares'.

Best-performing items in my (downsized) portfolio, to date (although, in-and-out of (selected) Tokyo also does very well - and (mainland) Europe is, well, what I'm living (although I'm based waaay south (and Catalonia)) and what I know best :-) ).

Please, Canada, maintain your equilibrium.

[citizen snips]

65. Sector Glance: Big Stores Rise

NEW YORK (AP) -- Shares in many of the nation's big-format stores, including department stores and discounters, gained on Friday, following the market up as a broad earnings-backed rally sent shares rising to new records.

Wal-Mart Stores Inc. and J.C. Penney Co. were among the biggest gainers.

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

Wal-Mart Stores Inc., up $1.42 to $49.76.

more...
http://biz.yahoo.com/ap/070420/sector_glance_big_stores.html?.v=1

[citizen snips]

66. Hot Stocks of the Week: SLM, BDK, AVNR

NEW YORK (AP) -- The trading week began on a strong note for SLM Corp. as Wall Street absorbed news that the student lender, better known as Sallie Mae, is being sold to two private investment funds and JPMorgan Chase & Co. and Bank of America Corp. for $25 billion.

SLM jumped 17.7 percent to close at $55.05 on the New York Stock Exchange Monday, with volume around 72 million shares, more than 12 times its average.

Shares closed higher on Tuesday, but edged lower during the week. On Friday, a Goldman Sachs analyst downgraded the stock and said the buyers have the option to ditch the deal if legislation is passed that is more harmful to the lender's business than a proposal by President Bush earlier this year.

Shares closed at $54, up 15.5 percent for the week.

more...
http://biz.yahoo.com/ap/070420/hot_stocks_of_the_week_mover.html?.v=1

[citizen snips]

67. Sector Glance: Rail Stocks Get Momentum

NEW YORK (AP) -- Railroad stocks closed modestly higher Friday, as the companies continue to gather momentum off initial earnings reports and bullish sentiment toward the sector.

CSX Corp. quieted any concerns over pricing weakness on Tuesday. The eastern railroad said although its first-quarter profit fell 2 percent, strong pricing pushed revenue higher and helped it overcome weaker freight volumes. On Thursday, Union Pacific said its profit surged 24 percent, as it raised prices 7 percent in the quarter to overcome a 2 percent decline in carloads.

Both companies also issued earnings guidance that gave investors confidence, and their stocks continue to trade off recent news that legendary investor Warren Buffett's company, Berkshire Hathaway, became the largest investor in Burlington Northern Santa Fe Corp. and bought stock in two other unnamed railroads.

Analysts are bullish, too. "While the group feels like it is ahead of itself, our sense is in the near-term the stocks still have upward momentum," said Edward Wolfe, an analyst with Bear Stearns & Co., in a research report on Friday.

more...
http://biz.yahoo.com/ap/070420/sector_glance_railroads.html?.v=1

[citizen snips]

68. Xerox Q1 Earnings Up Nearly 17 Percent

HARTFORD, Conn. (AP) -- Xerox profits jumped nearly 17 percent in the first quarter of the year to $233 million, the company announced Friday, on the strength of solid revenue gains and cost-cutting measures.

Earnings per share were 24 cents, up from 20 cents in the first quarter of 2006. Analysts polled by Thomson Financial predicted profit of 20 cents per share.

Revenue was up by 4 percent, to $3.8 billion, a reversal from a 2 percent loss in the same quarter last year.

The Stamford-based copier and office equipment manufacturer also said per-share earnings for the year are expected to come in at the high end of a $1.12-$1.16 range.

more...
http://biz.yahoo.com/ap/070420/earns_xerox.html?.v=16

[citizen snips]

70. DJIA Leaders & Laggards: Caterpillar Up

NEW YORK (AP) -- Shares of heavy equipment maker Caterpillar Inc. surged on a record-setting Friday on the Dow Jones industrial average, as investors celebrated a week of surprisingly strong earnings reports.

The 30-stock index gained 153.35 to finish at 12,961.98.

Quarterly earnings drove the biggest gainers. Caterpillar reported a better-than-expected quarter on the strength of its international sales, and the stock climbed $3.20, or 4.7 percent, to close at $71.82 on the New York Stock Exchange.

Credit card issuer American Express Co. rose $2.05, or 3.5 percent, to $61 on the NYSE. The company said its profit rose 21 percent and total revenue was up 14 percent, beating analyst estimates.

more...
http://biz.yahoo.com/ap/070420/djia_leaders.html?.v=2

[TrogL]

73. Who are they selling to and can they keep it up?

I live near the highway and rail lines going to Fort McMurray and watch the big stuff being sent to the oil sands. It used to be all Cat, but now I'm seeing wierd stuff like Hitachi.

[citizen snips]

71. Nasdaq 100 Leaders & Laggards: ISRG ERIC

NEW YORK (AP) -- Better-than-expected quarterly results from a number of companies, including Intuitive Surgical Inc., helped lift the Nasdaq composite to a six-year high on Friday.

The Nasdaq 100, which includes 100 of the largest nonfinancial securities traded on the Nasdaq Stock Market, rose 13.42 points to 1,845.89. The broader Nasdaq composite advanced 21.04 points to 2,526.39.

Intuitive Surgical, which makes the robotic da Vinci surgical system, advanced $10.56, or 8.7 percent, to $131.75 after the company reported a 65 percent jump in first-quarter profit. Shares earlier hit a 52-week high of $134.60, surpassing the old peak of $132 reached in May.

Logitech International SA jumped $1.05, or 4 percent, to close at $27.22. The Swiss computer accessory maker reserved a Thursday nosedive that came after it posted fiscal fourth-quarter sales below Wall Street's expectations.

more...
http://biz.yahoo.com/ap/070420/nasdaq_100_laggards.html?.v=1

[citizen snips]

72. S&P 500 Leaders & Laggards: CMI, RHI

NEW YORK (AP) -- The Standard & Poor's 500 Index hit a six-year high on Friday, lifted in part by diesel engine maker Cummins Inc.

The S&P 500 Index was up 13.62 to end at 1,484.35.

Cummins gained $3.61, or 4.9 percent, to end at $77.42 on the Big Board.

Johnson Controls Inc., which makes car seats and batteries, also finished higher. The company reported higher second-quarter profit and raised its earnings and revenue outlook for the full year.

more...
http://biz.yahoo.com/ap/070420/s_p_500_laggards.html?.v=1

[UpInArms]

75. end of the week and bubble blowing time

Dow 12,961.98 153.35 (1.20%)
Nasdaq 2,526.39 21.04 (0.84%)
S&P 500 1,484.35 13.62 (0.93%)
10-Yr Bond 4.672% 0.002

NYSE Volume 3,367,724,000
Nasdaq Volume 2,176,054,000

Weekly Recap - Week ending 23-Mar-07

It was an amazing week. The broader indices were all up more than 3%. The Dow Jones Industrial average was up every day. The S&P 500 index was up every day except Thursday, when it fell 0.50 points

The tone has dramatically improved as bearish factors such as the Shanghai market plunge, the unwinding of yen-carry trades, and even subprime mortgage problems had little impact this week.

The focus remained on the macro issues. There was very little corporate news of broad impact. The underlying concern about the strength of the economy and whether factors such as housing weakness would lead to a recession remained the main concern. This week, the news was good.

The most important event was the Fed policy statement on Wednesday. The market rallied in advance of the report in anticipation of a softer, gentler stance on the part of the Fed. The market rallied even more after it got exactly that.

The Fed dropped the bias towards tightening that had been in previous policy statements. The phrase that "the extent and timing of any additional firming..." was removed and replaced with "(F)uture policy adjustments will depend on the evolution of the outlook for both inflation and economic growth."

This change in attitude can certainly be considered good news, but it has to be noted that virtually no one expected any Fed rate hike. The removal of tightening bias that no one believed in the first place hardly seems a reason for a major rally. Nevertheless, there is now a stronger expectation that the Fed is likely to lower the fed funds target by 1/4% by the end of the summer.

The economic data this week helped dispel recession fears. On Tuesday it was reported that housing starts rose 9.0% in February after a 14.3% drop in January. February starts were about equal to the average in the fourth quarter of last year. More good housing news came on Friday in the form of a 3.9% increase in February existing home sales. This followed a 2.7% increase in January. At a 6.99 million annual rate, existing home sales are well above the levels of 6.25 to 6.27 posted October through December. The housing market seems to be at least stabilizing.

The only other economic release this week was a reported drop in new claims for unemployment for the week ended March 17. Claims dropped to 316,000 from 320,000 the week before, and levels above 330,000 for a number of weeks before that. The labor market remains strong.

The earnings news was mostly good. Oracle had an outstanding report. Morgan Stanley easily beat earnings expectations. FedEx and General Mills had good reports. Motorola warned of lower than expected profits and revenue. The earnings reports and corporate news overall were of modest impact, however.

Bond yields rose slightly to 4.60% from 4.55% last week due to the good economic news. Oil prices quietly rose to $62.28 a barrel from $57.11 last week.

The market rally was very surprising in both its degree and depth. The nervousness from recent weeks has not been completely eliminated, and could arise again quickly, but was virtually absent this week.

The focus now will shift to some degree to upcoming first quarter earnings reports. Those will start in mid-April. Earnings expectations for the S&P 500 in aggregated have fallen to about 4% from 7% two months ago. Second and third quarter forecasts are close to 5%. The earnings slowdown is here.

(edited for html)