STOCK MARKET WATCH, Monday September 17

[ozymandius]

Source: du

Monday September 17, 2007

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 491 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2446 DAYS
WHERE'S OSAMA BIN-LADEN? 2158 DAYS
DAYS SINCE ENRON COLLAPSE = 2119
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 10
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54

---

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

---

AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON September 14, 2007

Dow... 13,442.52 +17.64 (+0.13%)
Nasdaq... 2,602.18 +1.12 (+0.04%)
S&P 500... 1,484.25 +0.30 (+0.02%)
Gold future... 717.80 -0.10 (-0.01%)
30-Year Bond 4.72% -0.02 (-0.40%)
10-Yr Bond... 4.46% -0.02 (-0.45%)






GOLD, EURO, YEN, Loonie and Silver

---

PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

---

Read more: du

[ozymandius]

1. Market WrapUp: Farewell to ARMs

BY BRIAN PRETTI

It was a bit funny last month watching Fannie Mae and Freddie Mac stock prices squirt higher on the assumption/rumor that F&F would act to basically bail out or monetize at least some portion of troubled US mortgage paper. Let’s be frank with each other; there is absolutely no way on this green Earth F&F could make this happen, despite the fact that they had in the past been key credit cycle provocateurs when needed most to provide systemic liquidity in the late 1990’s. The regulators have been all over Fannie and Freddie in recent years. These two need to petition the regulators at this point to expand their balance sheets. Importantly, one day after such a request from Fannie to expand conventional lending limits, the OFHEO turned down the request without even blinking. Any questions? The numbers simply don’t add up for these two to even make a dent in the hundreds of billions in mortgage paper that either is now or will become troubled ahead. These GSE’s simply are not going to be of significant credit market help this go around, despite the fact that I’m sure a number of politicians will try to override the OFHEO. But what is very helpful is the fact that our friends at Freddie so kindly give us a glimpse into the world of mortgage refinancings now and again. I’m sure you are more than aware that from literally this month all the way through the summer of next year, we are going to see the largest number of adjustable rate mortgages resetting in this country that we will probably ever see in our lifetimes. The peak comes next March. As I’ve mentioned many a time, household mortgage issues of substance and the ultimate consequences of this circumstance lie ahead of us, not behind us.

So if you don’t mind, in relatively rapid-fire fashion, let’s quickly review the most recent mortgage refi data as of 2Q 2007. Important why? It’s an insight into consumer behavior, and I believe an insight into levels of financial stress at the household level. The charts tell the story. There are plenty of them, so let's roll through them. Please remember when looking at this data that the real crunch in mortgage credit availability has occurred in the third quarter of this year, not the second. This data only runs through 2Q, so in many senses it may indeed be the final hurrah. A farewell to ARMs of sorts. As examples, both WAMU and Wells, two of the largest players in the sub prime game, shut their sub prime lending operations down last month, not during 2Q. American Home Mortgage imploded in August, not in 2Q. You get the picture. Since 2Q period end, residential mortgage terms and credit availability have tightened up significantly. Let’s get right to it and have an initial look at level of cash out refi’s through the second quarter. As is clear, 83% of all refi transactions involved a new loan at least 5% higher than the prior loan in 2Q. Implication? At least as of the second quarter, households were implicitly continuing to lever up the largest household asset that is clearly declining in value. Do you really think these were choices households wanted to make? Or were forced to make? In case you have not heard, NEVER in US history have we experienced year over year declines in home prices without being in a recession or depression. Does this help frame the character of these actions?

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

[ozymandius]

2. Today's Report

8:30 AM NY Empire State Index Sep
Briefing Forecast 15.0
Market Expects 18.0
Prior 25.1

http://biz.yahoo.com/c/ec/200738.html

[UpInArms]

21. NY Empire STate Index @ 14.7 vs 25.1 in Aug.

06. U.S. Sept. Empire State employment index 18.2 vs 11.6 Aug.
8:30 AM ET, Sep 17, 2007 - 5 minutes ago

07. U.S. Sept. Empire State shipments lowest since June 2005
8:30 AM ET, Sep 17, 2007 - 5 minutes ago

08. U.S. Sept. Empire State shipments index 5.1 vs 28.8 in Aug.
8:30 AM ET, Sep 17, 2007 - 5 minutes ago

09. U.S. Sept. Empire State new orders index 13.6 vs 22.2 in Aug
8:30 AM ET, Sep 17, 2007 - 5 minutes ago

10. U.S. Sept. Empire State index below consensus 18.0
8:30 AM ET, Sep 17, 2007 - 5 minutes ago

11. U.S. Sept. Empire State index 14.7 vs 25.1 in Aug.
8:30 AM ET, Sep 17, 2007 - 5 minutes ago

[ozymandius]

3. Oil prices fall on profit taking

SINGAPORE - Oil prices dropped Monday to extend the previous session's decline as traders sold crude contracts to lock in profits.

Light, sweet crude for October delivery lost 51 cents to $78.59 a barrel in Asian electronic trading on the New York Mercantile Exchange by midafternoon in Singapore.

The contract on Friday fell 99 cents to settle at $79.10 a barrel — the first decline in 10 sessions — despite setting a new intraday record of $80.36 a barrel.

Energy investors were watching for the outcome of a meeting of the U.S. Federal Reserve Tuesday when the central bank's chairman, Ben Bernanke, and his colleagues will determine their next move on interest rates, analysts said.

-cut-

Some energy investors had been worried that credit tightness resulting from problems in the U.S. mortgage industry is spreading to other sectors, which could curb demand for oil and gasoline. Over the short term, a rate cut would provide an important psychological boost. It could make investors, businesses and others less inclined to clamp down or make drastic changes in their behavior that would hurt the economy.

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

[Roland99]

6. Gas has still been dropping here. Down to $2.66 in parts of the county.

Simply amazing.

[Wednesdays]

26. Oil is trading at near the highest prices ever

Yet the price of gas is plummeting. Go figure. :shrug:

(Could it be it's because there's an election coming up in less than 14 months? Nahhhh, couldn't be....)

[Warpy]

31. They call 'em futures for a reason

What you're seeing is the spot market trading price for November and December.

Anybody who heats with oil is going to be in tough shape this winter.

[Roland99]

37. Oil has hit at least $80.52/bbl today.

[Roland99]

39. CNBC reporting a record high close at $80.57

woo hoo. :scared:

[Warpy]

42. OUCH!

Now drink some chicken broth and go back to bed.

[Roland99]

43. A friend is bringing over some chicken noodle soup later

but I will take your suggestion on going back to bed! :)

[ozymandius]

4. Wall Street awaits Fed rate-cut decision

NEW YORK - Wall Street's wait is up: the Federal Reserve meets this week to decide what to do about interest rates.

Investors can call it what they like — their Super Bowl, their Election Day, their Day of Reckoning — but they might want to keep in mind that Tuesday's decision may end up raising as many questions as it answers.

The stock market plunged from record highs this summer on fears about souring home loans and excessive leveraged debt strangling corporate and economic growth. Since then, the big question on Wall Street has been: Will the Fed finally lower interest rates? Tuesday afternoon, investors will find out.

No matter what the outcome, the stock market could be in for a wild ride.

http://news.yahoo.com/s/ap/20070916/ap_on_bi_ge/wall_street_week_ahead

[ozymandius]

5. Fed set to cut interest rates

CHICAGO (Reuters) - A long period of stasis in Federal Reserve monetary policy looks certain to end on Tuesday with a U.S. interest-rate cut, leaving the question of how much further rates may drop and how fast.

The rate-setting Federal Open Market Committee is tipped to lower its target for the overnight federal funds rate by either one-quarter or one-half percentage point from the current 5.25 percent, where it has been since June 2006.

Signs of economic trouble, capped off by a surprising drop in U.S. jobs in August, have opened the door for the Fed to deliver the rate cut so desperately wanted on Wall Street after a month of turmoil in global financial markets.

-cut-

Indeed, prospects for a return to sub-par growth after a strong second quarter have even raised the specter of recession. While economists disagree on the probability of a downturn, they agree risks have risen.

The rate cut expected on Tuesday would be the first under the leadership of Ben Bernanke, the former Princeton University economist who took over from Alan Greenspan as Fed chairman in February last year.

Some analysts think the Bernanke Fed, whose approach to policy changes seems more deliberative and model-driven than the approach taken by Greenspan, is already behind the curve.

http://news.yahoo.com/s/nm/20070916/bs_nm/usa_fed_dc

[Roland99]

8. Catch Greenspan's interview last night on 60 Minutes?

He almost seemed proud that a period of high inflation and high interest rates are likely to occur soon.

[ozymandius]

11. I missed that one.

I just posted a report telling of this prognosis to USA Today.

Sorry to hear your flu-bitten. Some weird funkiness has also afflicted the Ozymandius household. I just had a relapse of what felt like a 24-hour flu, followed by a nasty head cold. My wife just had the same.

I hope you get some quality rest Roland.

:hi:

[Roland99]

17. Greenspan clarifies "the Iraq War was largely about oil" ... You're gonna LOVE this!!!

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x1824163


And thanks for the well wishes. I'm off for real now. :hi:

[DemReadingDU]

25. Today show - video link

Greenspan clarifies Iraq war, oil link
Says he told White House ousting Saddam was 'essential' to world supplies

Greenspan discusses his new book
http://www.msnbc.msn.com/id/20817260

[Roland99]

36. 1hr interview w/Greenspan tonight at 9pm on CNBC

[DemReadingDU]

27. 60 Minutes: Greenspan article and video link

http://www.cbsnews.com/sections/60minutes/main3415.shtml

[AnneD]

28. Morning Marketeers......

:donut: and lurkers. Sorry to hear that the Roland and Ozy households have been down with a bug. I have been sending lots of kids out with strep one case of pneumonia and several with a weird resp virus. Boy the season is starting early.....

And about this Greenspin......I am not giving a ticket to paint his picket fence. Now one can convince me that he didn't know damn well what he was doing. It might have worked if we had gotten someone more fiscally responsible other than Bush in office-but we didn't so now we're stuck with this mess. Meanspin could have spoken up about the tax cuts being a detriment to the budget but he didn't. And that about the war pisses me off even more.

So now he is worried about his legacy and going around hawking his whitewash book (re titled...If I HAD Killed The Economy This Is How I Would Have Done It). Well, go sell crazy somewhere else. We're full up here.

Happy hunting and watch out for the bears.

[ozymandius]

7. Stock futures point to weaker open ahead Fed

FRANKFURT (Reuters) - Stock index futures pointed to a weaker opening on Monday, with trading expected to be light as corporate and economic data calendars suggest thin newsflow ahead of Tuesday's Fed monetary policy decision.

"The U.S. Federal Reserve's meeting is the week's most important event for stock markets," Commerzbank said in a note.

A Fed rate cut is widely expected by economists amid worries that the recent credit market turmoil, which has reduced commercial bank lending, thereby threatening to turn the economic slowdown into a recession, but views differ as to whether the Fed will go for 25 or 50 basis points.

"The market is pricing in a slightly better-than-even probability of a 50 basis point cut," Goldman Sachs said.

"The risk that a 25 basis point cut would lead to disappointment and ultimately a renewed rise in risk aversion is high," Goldman Sachs said in as research note.

http://news.yahoo.com/s/nm/20070917/bs_nm/markets_stocks_dc_1

[Roland99]

9. Something else is weaker, too. Me. Fighting off the flu so I'm going back to bed

:P


U.S. stock futures slip on Northern Rock, Greenspan comments
http://www.investors.com/breakingnews.asp?journalid=60168908&brk=1

LONDON (MarketWatch) - U.S. stock futures were pointing to a sharp decline on Monday, with comments from ex-Federal Reserve Chairman Alan Greenspan and continued trouble at U.K. lender Northern Rock adding to pessimism a day before a key U.S. interest-rate decision.

S&P 500 futures dropped 11.3 points at 1,486.70 and Nasdaq 100 futures declined 12.25 points at 2,012.75. Dow industrial futures slipped 67 points.

U.S. stocks closed Friday with a minor gain, with the Dow industrials adding 17 points, the Nasdaq Composite rising a point and the S&P 500 up a fraction of a point.

Former Federal Reserve Chairman Alan Greenspan told "60 Minutes" in an interview that the outlook for the U.S. economy is "pretty gloomy" and said it's unclear whether current financial market turmoil will have a deep, lasting impact on the economy.

[ozymandius]

10. Former Fed chief sees double-digit rates: report

WASHINGTON (Reuters) - Former Federal Reserve Chairman Alan Greenspan said in an interview published on Monday the Fed would have to raise interest rates to double-digit levels in coming years to thwart inflation.

But double-digit rates, which have not been seen since the 1980s, would not be a long-term fixture, Greenspan said in an interview with USA Today conducted on Friday.

http://news.yahoo.com/s/nm/20070917/bs_nm/greenspan_rates_dc

[ozymandius]

12. Banks remain under fire in London

The FTSE 100 fell sharply on Monday as the fall-out from the rescue of Northern Rock continued to hit the markets.

Other lenders also suffered from the growing crisis of confidence, fuelled by comments from Alan Greenspan, former chairman of the Federal Reserve, that US house prices were likely to fall "significantly".

Mr Greenspan's thoughts, made in an interview with the Financial Times, raised the prospect of further contagion from bad debt within the US housing sector spreading around the globe via complex investment instruments based on American mortgage debt.

In London, Northern Rock lost a further third of its value as savers scrambled to withdraw deposits from the bank, with an estimated £2bn withdrawn in just three days.

The Newcastle-based lender's shares fell by a similar amount on Friday following the shock news that it needed to be bailed out by the Bank of England due to a drying up of liquidity in the capital markets.

http://news.yahoo.com/s/ft/20070917/bs_ft/fto091720070643553635

[stormymonday]

35. UK Government 'guarantee all deposits'

Chancellor of the Exchequer, Alistair Darling, tonight said the Government would guarantee all deposits lodged with Northern Rock.

Chancellor Alistair Darling has just announced that he will guarantee all deposits are safe - in effect telling customers if they left their money in the bank, the government will ensure it's safe.

This is a new step from their earlier position, in which they promised customers could withdraw their money safely, but made no mention of securing savings.

The crisis at Northern Rock has sparked a sell-off among rival lenders Alliance & Leicester, which sent its shares down 31 per cent. Shares at Bradford & Bingley tumbled more than 15 per cent. The wider FTSE 100 Index fell by 1.7 per cent,106.5 points to 6182.8.

http://www.channel4.com/news/articles/business_money/government+guarantee+all+deposits+/812847

Events are spinning out of control here in the UK. This is a quite amazing statement from Darling since it is the Governor of the BOE not the Chancellor who should be making these decisions. This behaviour by Darling violates the supposed independence of the Central Bank and seems to have no current basis in law. The only way I can see it working is by Her Majesty's Government nationalising Northern Rock. The problem is that this would inevitably involve some sort of bail out of shareholders as well as depositors since the state would have to buy their stock with taxpayers money. This seems to me to be creating just the sort of moral hazard that Mervyn King at the BOE wanted to avoid. Either Darling has lost the plot and is panicking to defend the housing market for short term political advantage or else the solvency crisis amongst British banks is far worse than anyone realised.

The drop in the Alliance & Leicester share price today suggests that something is seriously wrong for a sector of the UK financial sector. All the banks getting hammered have common features. They are ex Building Societies (Savings & Loans in US parlance), which demutualised in the 1980s and 1990s, becoming banks specializing in lending to home buyers. They are very vulnerable to any drop in Britain's ludicrously overinflated housing market and are painfully dependent on the wholesale money markets for their funding. This business model looks increasingly unsustainable in the current market conditions.

One thing seems pretty certain an old fashioned run on the Pound can not be far behind. With run on the secondary banks and a sterling crisis pending it is just like a trip back tothe 1970s for those of us old enough to remeber that era.

[ozymandius]

13. EU court upholds Microsoft's $613M fine

LUXEMBOURG - A European Union court on Monday dismissed Microsoft Corp.'s appeal against an EU antitrust order that ordered it to share communications code with rivals and sell a copy of Windows without Media Player.

It also upheld a $613 million fine — the largest ever levied by EU regulators.

The EU Court of First Instance ruled against Microsoft on both parts of the case, saying the European Commission was correct in concluding that Microsoft was guilty of monopoly abuse in trying to use its power over desktop computers to muscle into server software.

It also said regulators had clearly demonstrated that selling media software with Windows had damaged rivals.

http://news.yahoo.com/s/ap/20070917/ap_on_bi_ge/eu_microsoft

[ozymandius]

14. Frameshop: Microsoft suffers stunning EU antitrust defeat

BRUSSELS/LUXEMBOURG (Reuters) - Microsoft suffered a stunning defeat on Monday when a European Union court backed a European Commission ruling that the U.S. software giant illegally abused its market power to crush competitors.

The European Union's second-highest court dismissed the company's appeal on all substantive points of the 2004 antitrust ruling.

Microsoft shares traded in Frankfurt (MSFT.F) were down 2 percent at 20.40 euros at 1021 GMT, underperforming the European technology index which was down 0.4 percent. About 15,000 shares had changed hands, roughly the 30-day average daily trading volume.

The court said Microsoft, the world's largest software maker, was unjustified in tying new applications to its Windows operating system in a way that harmed consumer choice.

The verdict, which may be appealed only on points of law and not of fact, could force Microsoft to change its business practices.

http://news.yahoo.com/s/nm/20070917/tc_nm/microsoft_eu_dc_3

[ozymandius]

15. Microsoft fails second virus test

Microsoft's Live OneCare security software has failed tests which check how well it spots and stops malicious programs designed to attack Windows.

OneCare was the only failure among 17 anti-virus programs tested by the AV Comparatives organisation.

Microsoft's software only spotted 82.4% of the 500,000 viruses that the independent group subjected it to.

The test is the second in less than a month that Microsoft's anti-virus software has failed.

Minimum standard

Live OneCare is Microsoft's flagship security program that, like many other anti-virus products, is designed to help PC users keep their machine clear of malicious software.

http://news.bbc.co.uk/2/hi/technology/6418965.stm

[ozymandius]

16. Paulson in no rush for new market rules

PARIS (AP) -- U.S. Treasury Secretary Henry Paulson said Monday that regulators should not rush to impose new rules on financial markets in reaction to the recent credit crisis.

Paulson, speaking after a meeting with French Finance Minister Christine Lagarde, said the United States and France were working closely to monitor markets as financial services companies adapt to a lower appetite for risk.

Financial market turbulence "will take some time" to work through, and regulators must ensure that any new restrictions or requirements for financial services firms do not stunt innovation, Paulson told a news conference.

-cut-

He insisted that the U.S. economy, and the entire world economy, have benefited from innovative financial products.

The credit crunch began with rising defaults in the United States on subprime mortgages, home loans provided to borrowers with weak credit. Those problems have since spread to other lending areas and have also roiled global financial markets, with banks and other lenders tightening standards for loans to consumers and businesses.

http://money.cnn.com/2007/09/17/markets/bc.apfn.eu.fin.france.us.financial.ap/index.htm?postversion=2007091706

Paulson's massive untaxed wealth has driven him batty.

[OnceUponTimeOnTheNet]

18. K&R nt

[texpatriot2004]

19. K & R nm

[UpInArms]

20. dollar watch

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

Last trade 79.631 Change -0.024 (-0.03%)

Dollar - Will The Fed Sacrifice The Greenback?

http://www.dailyfx.com/story/topheadline/Dollar___Will_The_Fed_1190007768065.html

Hardly an auspicious week for dollar bulls as the greenback set yet another record low against the euro hitting 1.3926 on Friday. But follow through was relatively limited. “The markets remain in a state of flux, “ we wrote on Thursday. “At this point the currency market is operating under the assumption that the Fed will cut 26bp at next week’s FOMC meeting while the ECB may raise rates another 25bp in October, which explains EURUSD recent strength. However, those assumptions are far from ironclad and depend to a great extent on the degree that the collapse of housing has affected overall US consumer demand.”

Last Friday’s Retail Sales were hardly a boost for dollar bulls as the number missed expectations printing at 0.3% vs. 0.5%. Still it was not disastrous with the slowdown in retail offset somewhat by robust vehicle sales. The dollar actually came off the lows in the aftermath of the news as the worst fears of a 50bp cut from the Fed began to fade away. Indeed we believe that Fed will cut rates but only reluctantly and only by 25b. Furthermore, given $700/oz. Gold and $80/bbl oil, inflationary concerns will weigh heavy on the minds of monetary policy makers. Therefore its quite likely that that Fed, while lowers the Fed rate on Tuesday, may emphasize that this is a one time event rather than the start of new loosening cycle. The FOMC members are highly cognizant of the precarious state of the dollar and it is doubtful they would want to exacerbate its weakness by sending an overly dovish message to the markets.

After the FOMC rate announcement, the inflation story will be second most watched report by currency traders this week. With both PPI and CPI data on tap, market players will be quick to respond to any uptick in price data. The Fed finds itself between a rock and a hard place as it must balance the calls for an ease in the credit markets with its need to maintain confidence in the US currency. -BS

...more...

US Dollar Remains Near Record Lows As Retail Sales Increase Chances Of Fed Cut On Tuesday

http://www.dailyfx.com/story/bio1/US_Dollar_Remains_Near_Record_1189804659644.html

The US Dollar ended Friday very little changed from Thursday, with the currency rallying in the morning as traders shrugged off the less-than-impressive retail sales figures, only to give up those gains in the afternoon. On the surface, the headline advance retail sales report didn’t look so bad: sales rose 0.3 percent in August while the July reading was revised up to 0.5 percent. As usual, however, the devil is in the details. Excluding motor vehicles and parts, sales actually fell 0.4 percent, as clothing purchases eased back despite massive discounting for back-to-school shoppers while sales of building materials dropped off as the housing recession worsens. Meanwhile, service station receipts took the biggest blow of all, with sales down 2.4 percent as gasoline prices fell. Overall, while the report looks relatively healthy upon first glance, the data actually highlights emerging softness in consumption growth that will likely take a toll on Q3 GDP, and this is one of the main factors that will drive the Federal Reserve to cut rates next Tuesday. After all, fixed income, forex, and equity markets are expecting at least a 25 basis point cut – if not 50 basis points – and this speculation likely supported the University of Michigan consumer confidence index, which rose to 83.8 in September from 83.5 the month prior, as consumers were slightly more optimistic regarding the economic outlook. At the time of writing, out of 128 economists polled by Bloomberg, 98 said that they thought the Fed would cut rates by 25 basis points, while 24 said they would go for a sharper 50 basis point cut, leaving only 6 economists anticipating that the central bank will leave rates unchanged. A look at our own poll in the DailyFX Forums shows that traders are more evenly divided, with 46.34 percent indicating that they believe the Fed will cut, while 39.57 percent said that the central bank will take more time to make a decision. The pressure is clearly on Fed Chairman Bernanke, as this is one of the most highly anticipated rate decisions in recent memory. As a result, range trades will likely prevail for the US Dollar on Monday, but Tuesday should see a surge in volatility market-wide, especially if the Fed does the unexpected holds their ground in fear of moral hazard and leaves rates steady at 5.25 percent.

...more...

[UpInArms]

22. Merrill Lynch's subprime unit cutting jobs

http://www.reuters.com/article/businessNews/idUSN1730240420070917?feedType=RSS&feedName=businessNews

NEW YORK (Reuters) - Merrill Lynch & Co. Inc.'s (MER.N: Quote, Profile, Research) $1.3 billion bet on subprime lending hit a sour note on Monday, when the world's largest brokerage confirmed job cuts at its First Franklin Financial Corp. unit.

Merrill Lynch bought San Jose-California-based First Franklin in December amid a meltdown in the market for risky subprime mortgages. Analysts have questioned the timing of the deal and the rich premium Merrill paid for the company.

Merrill Lynch declined to say how many jobs were being cut. Recently filed reports with U.S. banking regulators show that Merrill Lynch Bank & Trust Co., where a lot of the First Franklin franchise is housed, lost $111 million through the first half of 2007.

"We have adjusted our staffing levels to be in line with current business requirements," the company said in a statement.

Merrill Lynch's rationale for buying the business -- packaging risky mortgages into securities for institutional investors -- has been undermined by escalating defaults throughout the subprime industry. The market for securities backed by subprime loans has all but dried up in recent months.

...more...

[roamer65]

23. The Loonie and gold are doing great this am.

I see parity on the horizon. Perhaps this year.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aDDq8s23MJYY&refer=home

[UpInArms]

24. 9:31 EST opening in the red with blather

Dow 13,406.84 35.68 (0.27%)
Nasdaq 2,593.08 9.10 (0.35%)
S&P 500 1,480.45 3.80 (0.26%)
10-Yr Bond 4.497% 0.035

NYSE Volume 20,760,000
Nasdaq Volume 27,447,000

09:16 am : S&P futures vs fair value: -8.0. Nasdaq futures vs fair value: -10.5. Futures continue to firm amidest Fed concerns, while Microsoft is indicated about $0.34 lower in wake of European court ruling rejecting its anti-trust ruling appeal.

09:01 am : S&P futures vs fair value: -8.7. Nasdaq futures vs fair value: -13.5. Futures are off worst levels of the day but still indicate significantly lower open.

08:33 am : S&P futures vs fair value: -10.6. Nasdaq futures vs fair value: -11.2. Futures continue to point to lower open as focus remains on the Fed. NY Empire Index at 14.7 for September a bit lower than expected but still fairly strong.

08:16 am : S&P futures vs fair value: -8.0. Nasdaq futures vs fair value: -10.5. Futures continue to firm amidst Fed concerns, while Microsoft is indicated about $0.34 lower in wake of European court rejection of its anti-trust appeal.

08:00 am : S&P futures vs fair value: -10.7. Nasdaq futures vs fair value: -15.2. Nervousness over Tuesday's Fed action not being as accommodative as hoped have futures indicating a lower open. Oil is down $0.57 to $78.53 a barrel.

07:00 am : S&P futures vs fair value: -10.7. Nasdaq futures vs fair value: -15.2. Nervousness over Tuesday's Fed action not being as accommodative as hoped has futures indicating a lower open. Oil is down $0.57 to $78.53 a barrel.

06:15 am : S&P futures vs fair value: -11.7. Nasdaq futures vs fair value: -17.3.

[roamer65]

29. Greenspan: Euro could replace US dollar as reserve currency.

http://biz.yahoo.com/ap/070917/germany_greenspan_euro.html?.v=1

[Nimrod2005]

30. Can't believe he actually said THAT!!!

[Systematic Chaos]

33. So there's no more denying how screwn we are?

:rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl:

:cry:

[roamer65]

45. I figure that...

Bernanke has to be climbing the walls when Greenspan opens his yap like this. Ben is out there tap dancing in the dollar land mine field and there's Greenspan lobbing in a few grenades to make it even more "fun".

[OrangeCountyDemocrat]

32. Could Gas Prices Doom repub Party?

Given their precarious position right now, what do you all think will happen if gas prices really start to move upward?

If gasoline prices are between $4-$5/gallon by late '08, will the election be a landslide so big, that the Dems end up not only with the WH for the next 8 years, but a virtual sweep in Congress races, and perhaps even an over 66% majority?

And of course that Iraq thing will likely still be ongoing, enraging people even more as they consistently spend $100+ to fill their tanks.

[Wednesdays]

34. TPTB will not allow that to happen...

if anything, gas prices will trend downward until next November. They'll do ANYTHING--even if they have to sell off their daughters and grandmothers--to keep prices from going up.

[ozymandius]

38. Eerily quiet among market averages

2:38
Dow 13,410.98 Down 31.54 (0.23%)
Nasdaq 2,584.09 Down 18.09 (0.70%)
S&P 500 1,477.72 Down 6.53 (0.44%)
10-Yr Bond 4.478% Up 0.016
NYSE Volume 1,530,410,000
Nasdaq Volume 1,048,718,000

2:30 pm : The major indices have been consolidating downward for just over an hour, though they are still off morning lows. However, indices have edged off afternoon lows in the last few minutes of action.

Any late afternoon moves could be helped by today's extremely light volume, but don't expect any conviction from investors ahead of the Fed's big day tomorrow. DJ30 -33 NASDAQ -19 SP500 -7 NASDAQ Dec/Adv/Vol 2052/830/984 mln NYSE Dec/Adv/Vol 2241/978/694 mln

2:05 pm : The stock market averages remain in the red, the dominant bias today, but they were able to mount a modest midday recovery rally. Some backing and filling has been noted over the last 45 minutes or so as participants are reluctant to become aggressive on the buy side ahead of the Fed meeting tomorrow. Market internals are in the bearish camp but volume is running at a below average pace implying muted selling pressure.

The Dow is the best performing of the market averages with strength in GM +2.1%, HPQ +1.7%, CAT +1.1%, XOM +0.5% and VZ +0.5% helping to limit losses. DJ30 -47 NASDAQ -20 SP500 -8.30 NASDAQ Dec/Adv/Vol 2023/838/914 mln NYSE Dec/Adv/Vol 2230/965/648 mln

[DemReadingDU]

40. All quiet before the storm

Tomorrow Tuesday should be very interesting with the Fed meeting

[Roland99]

41. Very tight trading range and light volume

Waiting on the Fed

[roamer65]

44. I like gold right now.

http://www.kitco.com

I just bought another certified $10 USD gold piece today, before prices go through the roof.

[54anickel]

46. Heh-heh, check this out.....

http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?catalogId=10001&storeId=10001&categoryId=13238&langId=-1&parent_category_rn=10191&top_category=10191

Due to the increasing market value of gold, the American Eagle Gold Uncirculated Coins are temporarily unavailable while pricing for this option can be adjusted; therefore, no orders can be taken at this time. We expect products to be available with adjusted pricing on or after September 27, 2007.

[roamer65]

47. Inflation? What inflation? There's no inflation.

:evilgrin: :sarcasm:

Saw it the other day and I do believe that is the first time ever for the Mint to pull one of their products due to instability in the metals markets.

[Robb]

49. Unless you count steel pennies nt

:D

[SlowDownFast]

50. That's probably because Buffalo sales

needed a boost.

[olddad56]

51. I like copper. Because pennies are all I have left.

[roamer65]

52. We don't even have copper anymore.

Pennies are now copper coated zinc.:(

[54anickel]

48. Just for the record - closing numbers and all that jazz

Dow 13,403.42 Down 39.10 (0.29%)
Nasdaq 2,581.66 Down 20.52 (0.79%)
S&P 500 1,476.65 Down 7.60 (0.51%)
10-Yr Bond 4.47% Up 0.008
NYSE Volume 2,636,274,000
Nasdaq Volume 1,561,769,000

4:20 pm : The market languished on Monday ahead of Tuesday's FOMC meeting and the fiscal third quarter earnings report from Lehman Bros. (LEH 58.62, -0.88), which kicks off a series of reports from the investment banking group this week.

There were some news items that contributed to the malaise, such as Microsoft (MSFT 28.73, -0.32) losing its appeal of the EU's 2004 antitrust ruling, Northern Rock, one of the U.K.'s largest mortgage lenders, seeing a run on its branches by depositors worried about the firm's financial state, and Bank of America (BAC 49.51, -0.44) acknowledging late in the session that the credit market turmoil is expected to have a "meaningful impact" on its third quarter investment banking results.

Those items fueled some profit taking after last week's strong advance in which the S&P 500 gained 2.1%.

For the most part, it was a wait-and-see trade. The latter point was borne out in the low volume totals at the NYSE (1.11 bln) and Nasdaq (1.43 bln).

There was only one economic sector - energy (+0.04%) - that ended the day higher. That sector's relative strength came on the back of a strong jump in crude prices (+$1.47 to $80.57), which followed a report that Goldman Sachs raised its year-end forecast to $85 from $72 and noted the risk of prices going as high as $90 by year-end.

The remaing sectors didn't suffer any material damage as losses ranged from 0.1% to 0.8%. It just so happened the some of the day's biggest laggards were also among the market's most influential areas, namely financial (-0.8%), consumer discretionary (-0.8%), health care (-0.7%), technology (-0.5%) and industrials (-0.5%).

Winning standouts in the session were limited largely to individual issues with specific news. For instance, Newell Rubbermaid (NWL 28.02, +2.26) and Monsanto (MON 75.44, +1.94) both jumped after raising their earnings guidance; meanwhile, General Motors (GM 35.23, +1.01) outperformed on reports that negotiations with the UAW on health care costs are progressing well. On a related note, Ford (F 8.28, +0.25) got a boost from a Bear Stearns upgrade to Outperform from Peer Perform.

The Empire State Index was the only economic release today. The regional manufacturing report was weaker than expected at 14.7 (consensus 18.0) and down from last month's reading of 25.1. Any number above zero, though, still reflects growth, so the report wasn't as bad as the headline decline suggests.

Tomorrow the big event is the FOMC meeting. The Fed's decision and accompanying directive will be released at 14:15 ET. Briefing.com expects a 25 basis point cut in the fed funds rate.

Prior to the FOMC, the Lehman Bros. report will hold some market-moving sway. The investment bank is expected to post a profit of $1.52 on revenue of $4.35 billion, according to Reuters Estimates. In the year-ago period Lehman earned $1.57 per share on revenue of $4.18 billion.DJ30 -39.10 NASDAQ -20.52 SP500 -7.60 NASDAQ Dec/Adv/Vol 2107/870/1.43 bln NYSE Dec/Adv/Vol 2252/1044/1.11 bln

3:35 pm : The three major averages did run to new recovery highs this afternoon but follow through has been limited amid cautioun ahead of tomorrow's Fed meeting. The market has priced in, with 100% certainty, that a rate cut will be seen and at this time is favoring a move of 50 bp over 25 bp.

Sectors in the black remain limited but Financial, the largest segment of the S&P 500, along with Home Construction saw the most interest during the minor afternoon upside extension. Minor back and filling in recent trade has eaten away at the afternoon extension. DJ30 -36 NASDAQ -18 SP500 -7.30 NASDAQ Dec/Adv/Vol 1947/976/1.188 bln NYSE Dec/Adv/Vol 2096/1164/855 mln

3:00 pm : The session has played out about as expected with the market consolidating at modestly lower levels after last week's solid advance back near multi-week range tops and in front of Tuesday's FOMC meeting.

Volume is below average and several of the indices including the Dow, S&P 400 and Russell 2000 have formed inside days (lower high, higher low than previous session).

Suggested earlier that some sideways to higher action was possible and have seen the Dow and S&P 500 retest their midday bounce highs after the early afternoon pause. Sector leadership during this latest push higher has come from Home Construction (XHB), REITs (IYR), Banking (BIX) and Insurance (IUX). BTK -1.1% DJ30 -25 NASDAQ -19 SOX -0.4% SP500 -6.20 XOI -0.2% NASDAQ Dec/Adv/Vol 2002/895/1.066 bln NYSE Dec/Adv/Vol 2160/1098/765 mln

2:30 pm : The major indices have been consolidating downward for just over an hour, though they are still off morning lows. However, indices have edged off afternoon lows in the last few minutes of action.

Any late afternoon moves could be helped by today's extremely light volume, but don't expect any conviction from investors ahead of the Fed's big day tomorrow. DJ30 -33 NASDAQ -19 SP500 -7 NASDAQ Dec/Adv/Vol 2052/830/984 mln NYSE Dec/Adv/Vol 2241/978/694 mln

2:05 pm : The stock market averages remain in the red, the dominant bias today, but they were able to mount a modest midday recovery rally. Some backing and filling has been noted over the last 45 minutes or so as participants are reluctant to become aggressive on the buy side ahead of the Fed meeting tomorrow. Market internals are in the bearish camp but volume is running at a below average pace implying muted selling pressure.

The Dow is the best performing of the market averages with strength in GM +2.1%, HPQ +1.7%, CAT +1.1%, XOM +0.5% and VZ +0.5% helping to limit losses. DJ30 -47 NASDAQ -20 SP500 -8.30 NASDAQ Dec/Adv/Vol 2023/838/914 mln NYSE Dec/Adv/Vol 2230/965/648 mln

1:30 pm : The market averages remain in the red on the day but they have been able to extend the rebound of off midday/session lows in recent trade.

Semi (SMH) and Broker (XBD) have provided some leadership during this bounce with both rallying nearly 1% off their lows. Have also see relative strength in Home Construction (XHB).

Some sideways/higher trade is possible during the afternoon but not expecting to see an aggressive resumption of last week's bullish bias ahead of the Fed tomorrow. BTK -1% DJ30 -33 NASDAQ -17 NQ100 -0.7% R2K -0.8% SOX -0.3% SP400 -0.5% SP500 -6.70 NASDAQ Dec/Adv/Vol 1996/861/815 mln NYSE Dec/Adv/Vol 2178/1000/569 mln

1:00 pm : Stocks are attempting to pare their losses, but the rebound try has been slowed by the middling of the market's most influential sectors.

We saw some of this on Friday and it prevented the S&P from making any real headway from the unchanged mark after battling back from big losses early in Friday's session.

The financial sector (-0.9%) is the standout in this respect. Its weakness today, though, is understandable given that the sector scored a large gain last week that has prompted some nervous investors to take profits ahead of the FOMC decision Tuesday and the earnings reports from the investment banks throughout the week. The sector, seemingly, has the most to gain or lose in the wake of those happenings. DJ30 -28.61 NASDAQ -17.79 SP500 -6.19 NASDAQ Dec/Adv/Vol 2009/829/741 mln NYSE Dec/Adv/Vol 2249/929/527 mln

12:35 pm : Selling pressure has abated, but the indices remain near their lows for the session.

The energy sector (+0.1%) isn't all that strong, but it is a relative strength leader today as it draws support from the uptick in crude prices (+$1.13 at $80.22).

Crude futures were down earlier this morning, but ultimately rebounded after Goldman Sachs raised its year-end forecast to $85 from $72 and noted there was a risk prices would hit $90.DJ30 -53.49 NASDAQ -23019 SP500 -9.67 NASDAQ Dec/Adv/Vol 2047/787/675 mln NYSE Dec/Adv/Vol 2327/836/483 mln

12:00 pm : After a hot week last week in which the S&P 500 gained 2.1%, stocks are cooling their jets this morning as investors take some profits ahead of tomorrow's FOMC meeting.

There hasn't been any major piece of news to drive the change in sentiment, although word that Microsoft (MSFT 28.68, -0.36) lost its appeal of the EU's 2004 antitrust ruling and reports the U.K. mortgage lender Northern Rock faced a run on its branches by anxious depositors have been good excuses to take some money off the table.

The Northern Rock development cast a pall on European trading, and certainly in England where the FTSE-100 dropped 1.6%. Northern Rock for its part saw its stock plummet 36% in today's session.

There haven't been any notable blow-ups like that in the U.S., but Micorosft's weakness is a drag on the broader market as is the lack of participation from core leadership groups.

The financial sector (-1.20%) is the most notable laggard after being one of last week's best-performing areas. Investment banks (-2.0%) are a real pocket of weakness as they are on the defensive following the Northern Rock news and ahead of earnings reports this week from Lehman Bros., Morgan Stanley, Bear Stearns and Goldman Sachs.

Health care (-1.1%) is another downtrodden area with losses in the pharmaceutical (-1.0%), biotech (-2.3%) and health care technology (-2.8%) groups pacing its retreat.

By and large there isn't much interest in U.S. assets today. Stocks are weak, Treasuries are down and the dollar is up modestly.

General Motors (GM 34.84, +0.62) is exhibiting some relative strength today following reports that negotiations with the UAW on health care costs are progressing well. Ford (F 8.23, +0.20), meanwhile, is up after Bear Stearns upgraded it to Outperform from Peer Perform.

The Empire State Index was the only economic report today. The regional manufacturing report was weaker than expected at 14.7 (consensus 18.0) and down from 25.1 in the prior month, but it is still indicative of growth.DJ30 -60.48 NASDAQ -25.54 SP500 -11.05 NASDAQ Dec/Adv/Vol 2001/801/585 mln NYSE Dec/Adv/Vol 2272/855/413 mln