STOCK MARKET WATCH, Friday January 18

[ozymandius]

Source: du

STOCK MARKET WATCH, Friday January 18, 2008

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 368 LONG DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2555 DAYS
WHERE'S OSAMA BIN-LADEN? 2279 DAYS
DAYS SINCE ENRON COLLAPSE = 2240
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 January 17, 2008

Dow... 12,159.21 -306.95 (-2.46%)
Nasdaq... 2,346.90 -47.69 (-1.99%)
S&P 500... 1,333.25 -39.95 (-2.91%)
Gold future... 880.50 -1.50 (-0.17%)
30-Year Bond 4.25% -0.07 (-1.55%)
10-Yr Bond... 3.64% -0.07 (-1.94%)






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: CXO Models Are Poor Forecasting Tools

Tick Tack Toe Player Attempts Chess, Fails
BY MARTIN GOLDBERG, CMT

Since the beginning of financial markets, speculators have attempted to find a method for determining future prices. Difficult as this endeavor is, the reward – wealth without work – is great enough as to tempt many folks to try. A speculative environment, the existence of which is the subject of another day, provides the present conditions for a vast array of parasites to sell their wares as “experts” to unsuspecting customers. Such are the conditions of today’s markets where newsletters abound, along with a wide range of advisories, websites, email solicitations, and conventional mail flyers.

Throughout this time, there have also been attempts to model the financial markets by using algorithmic models. For the most part, these attempts are as successful as those for spinning straw into gold or making chicken salad from chicken excrement. Yet even with this in mind, when an analyst claims to have an algorithmic model that provides value, it draws significant attention in the financial community, including mine. This attention is piqued when the analyst also brings to the table a dubious analysis of my own commentary’s accuracy as well as subjective criticisms lodged at some professionals whose opinions I value and respect.
.....

Today’s Market

Today’s action included another ugly day in the world stock markets. The long term weekly chart has a couple of features requiring attention: -chart-

The S&P 500 now is at the same level from which there was a minor top in April of 2006. This week’s action, including today’s close puts the S&P 500 at a lower low than both February of '07, and August of ’07. If this technical level is surrendered, it will be bearish for the long term trend of the S&P. Yet, this week’s climatic trading volume, coupled with the volume of last week is of enough magnitude to produce a “mini-capitulation.” With options expiration tomorrow, the S&P 500 weekly trading volume will achieve its highest level ever! With an oversold market, options expiration, a key support/resistance level, and capitulation-trading volume, it would seem to fit that a short term rally may be coming. But this doesn’t change the longer term bearish predicament of the S&P, and there is a similarly strong case for additional downside action in the short term. This case is based on recent acceleration in downward price momentum.

Separate from the technical picture, one of the most dangerous tools in this year’s market is use of an algorithm that models the stock market based largely on Wall Street earnings estimates and official government statistics.

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

[Ghost Dog]

30. "climatic trading volume" would be a Freudian slip (climactic).

After all, climate change and other environmental issues are, in the short run now, of even more vital consequence than the economic stuff we try to track here (and the two issues very much need to come together).

Dammit, a Very Great Global Economic Depression will at least stave off the looming Environmental Catastrophe, maybe, for a few years more...

[TalkingDog]

38. Slightly off topic clarification from yesterday: re: Jiggered.

For all our UK readers: Appalachia (mountainous region on the eastern seaboard) had a lot of settlers from the UK from the "Rebellion" in the 1700's

Because some of those areas are isolated, many of the words used are similar to Elizabethan English. Linguists will often come here to study the language and it's evolution.

I used the term Jiggered yesterday in talking about Govt. numbers.

In the NC area Jiggered means: tinkered with, messed with or rigged.

I think in current British slang it means : buggered :blush: I didn't mean to be rude. Though I would've used buggered anyway....

As the saying goes: 1 culture divided by a common language.


My Favorite Master Artist: Karen Parker GhostWoman Studios

[Ghost Dog]

46. Not so divided, TD.

I was also indeed taking the word in its original sense. And if what you say is true of current UK usage (it's over 20 years since I exiled myself from there (my own personal 'rebellion' if you will ;-) ), then the two meanings could still be considered fairly interchangeable, depending on which way your jib is cut, I guess).

It is important to know where the expressions 'pissed' (drunk in UK, angry in US) and 'pissed off' (angry or frustrated in UK, ? in US) are coming from, though.

Now I really must be off out. :dilemma:

[Ghost Dog]

69. Incidentally, I did read Charles Frazier's "Cold Mountain"

long before there was a film, sorry, movie; this (along with plenty of other sources over the years) provided a pretty full, clear and amazing picture (the novel, I mean) of that part of the country and its people(s) and that war, I thought.

[Warpy]

132. Yes, it absolutely reeked with the atmosphere

of that part of the country. Since I lived there during part of my kidhood, I think that book is a masterpiece. The story line is a little stupid, but the descriptions of the area are wonderful.

The author did miss a big piece, that the Democratic Party went around and rounded up every white male in the area who was capable of toting a gun, whether or not he could pay his poll tax, and mustered him into the Confederate Army. Any man who resisted for any reason was shot on the spot. It's why the mountains are solidly GOP to this day. Those folks have long memories, and the local Democrats were worse than the Yankee GOP who came in later.

Serving for the glory of Dixie was not voluntary, especially for the hardscrabble farmers who had absolutely no reason to defend their state's right to own other human beings.

[Ghost Dog]

141. "rounded up every white male in the area"

Oh, I'd certainly gathered that from the novel. But not that it was ascribable to the Party rather than to the Army, so that's valuable new info for me, thanks Warpy. And yes, I agree with you: I see the book as a masterpiece in the way it describes such history and geography through the medium of what became a very popular novel. Smart work that I'd love to be able to emulate.

[ozymandius]

2. Today's Reports

10:00 AM Leading Indicators Dec
Briefing Forecast -0.2%
Market Expects -0.1%
Prior -0.4%

10:00 AM Mich Sentiment-Prel. Jan
Briefing Forecast 74.0
Market Expects 74.5
Prior 75.5

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

[UpInArms]

63. Leading Indicators still falling - down 0.2% for Dec after falling .04% in Nov

01. U.S. leading indicators point to continuing slow growth
10:00 AM ET, Jan 18, 2008 - 1 minute ago

02. U.S. Dec. leading indicators down 0.2% vs 0.4% dip in Nov.
10:00 AM ET, Jan 18, 2008 - 1 minute ago

[UpInArms]

64. UMich says consumer sentiment for Jan is 80.5 - everyone is cheering up for REBATES!

01. U.S. Jan UMich consumer sentiment 80.5 vs. 75.5 Dec.
10:01 AM ET, Jan 18, 2008 - 1 minute ago

they just haven't figured out that REBATES are only for SUCKERS!

[ozymandius]

3. Oil rises after drop to near $90

SINGAPORE - Oil prices inched up Friday after an overnight drop on worries that a flagging U.S. economy would weigh on crude demand.

Concerns about the economy were stoked by a U.S. Commerce Department report Thursday that construction of new homes fell nearly a quarter in 2007, the largest drop in 27 years. Also, a Philadelphia Federal Reserve survey of regional manufacturing activity registered a negative 20.9 from a revised reading of negative 1.6 in December, coming in well short of expectations.

The data added to the negative economic sentiment that has been the market's dominant driver in recent days, pushing prices down nearly $10 from their record over $100 a barrel two weeks ago.

"It's one piece of bad news after another," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "The worries about the U.S. economic slowdown, and of oil demand slowing down in the U.S. and other parts of the world, continue to weigh on the market."
......

Light, sweet crude for February delivery rose 16 cents to $90.29 a barrel in Asian electronic trading on the New York Mercantile Exchange by midafternoon in Singapore. The contract fell 71 cents to settle at $90.13 on Thursday.

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

[ozymandius]

4. Industry turmoil slams Washington Mutual

SEATTLE - Turmoil in the mortgage and credit markets in the second half of 2007 decimated Washington Mutual Inc.'s fourth-quarter performance and dragged the country's largest savings and loan into the red for the year.

WaMu had been preparing Wall Street for the hit, caused by the plummeting value of its mortgage portfolio and the growing number of people who can't repay their debts, since December.

.....

Investors must have expected worse. After hours, shares climbed back from a 7 percent drop to $12.46 in the regular session, before the results were announced.

For the quarter, WaMu said it swung to a loss of $1.87 billion, or $2.19 per share, after a profit of $1.06 billion, or $1.10 per share last year.

.....

The brighter spots in WaMu's quarter were its commercial loans business and its retail banking operations — the branches and Web sites that support checking and savings accounts for individuals and businesses. While net income for both divisions fell compared with a year ago, Shapiro called the credit quality of its commercial loan portfolio "pristine," and noted the rising fees in the retail banking division.

http://news.yahoo.com/s/ap/20080118/ap_on_bi_ge/earns_washington_mutual

[ozymandius]

5. Global stocks battered by renewed recession fears

LONDON (Reuters) - World stocks hit a five-month low on Friday, prompting safe-haven flows into government bonds as a U.S. financial rescue plan failed to erase fears that the world's largest economy might already be in recession.

President George W. Bush told lawmakers on Thursday he wanted tax rebates for families and breaks for businesses in an economic aid plan that could total up to $150 billion.

But that failed to prevent investors from dumping stocks and other risky assets as data on Thursday showed factory activity in the U.S. Mid-Atlantic region contracted sharply in January and home building in December fell to the slowest pace since early 1990s. The benchmark Wall Street index hit a 15-month low.
.....

Federal Reserve Chairman Ben Bernanke on Thursday threw his support behind efforts to craft an economic stimulus package and repeated that the U.S. central bank was ready to act aggressively to counter recession risks.

But he specified that it was "critically important" that any fiscal measures be designed to kick in quickly and deliver their maximum impact within the next 12 months. Any other effect could do more harm than good, Bernanke warned.

http://news.yahoo.com/s/nm/20080118/bs_nm/markets_global_dc

[Ghost Dog]

6. Yes, but: Asian shares recover ground after panic selling

TOKYO (AFP) - Asian shares recovered ground Friday from panic selling as investors pinned their hopes on swift measures to boost the ailing US economy set to be unveiled by President George W. Bush.

The president was due to announce later Friday "short-term, temporary measures" to stimulate the economy, said White House spokesman Tony Fratto, amid fears the US is heading for a recession.

The Tokyo Stock Exchange's benchmark Nikkei-225 index ended up 0.56 percent or 77.84 points at 13,861.29 in anticipation of the measures, staging a dramatic late turnaround after tumbling 2.81 percent in the morning.

Hong Kong was down 1.22 percent but was off its lows while losses in mainland China were limited with the Shanghai Composite index down 0.31 percent.

Other bourses also trimmed or reversed their falls, with Seoul closing up 0.6 percent, Sydney down 0.8 percent and Taipei up 1.02 percent in late bargain-hunting. Singapore was 0.38 percent lower.

/... http://news.yahoo.com/s/afp/20080118/ts_afp/stocksworld_080118090926

Asian markets pin hopes on Bush

(FT) Asian stocks mounted a recovery on Friday after heavy morning losses as hopes rose of aggressive action to ward off a recession in the US, the region's biggest export destination, and investors took the view that some markets were oversold.

With the US outlook darkening, President George W. Bush on Friday is to sketch out a fiscal stimulus plan of up to $150bn, expected to include tax rebates and corporate investment incentives. Comments from Ben Bernanke, Federal Reserve chairman, supported expectations of a US rate cut of at least 50 basis points at the Fed's meeting at the end of the month.

The yen also weakened, to around Y107.06 against the dollar after rising to around Y106.60 earlier. That helped Japanese stocks, particularly exporters. The Nikkei 225 closed up 0.5 per cent at 13,861.29 after initially falling 2.8 per cent. Honda (NYSE:HMC) reversed a 2.8 per cent drop to end up 0.3 per cent while Toyota (NYSE:TM) trimmed a 3.5 per cent loss to 0.6 per cent.

The Topix banking index, which had earlier dropped 2.7 per cent on Merrill Lynch's hefty loss and writedowns, closed up 0.4 per cent at 276.15

On the Japanese market, technical indicators pointed to the Nikkei being oversold, with the market nearly 20 per cent below the 200-day moving average, which usually provides some support, said Brandon Ginsberg, managing director at KBC Securities.

"Markets can't keep falling," he said. "The yen strength isn't that great and the domestic economy isn't that great but these aspects have been more than discounted."

In South Korea, the Kospi added 0.7 per cent to 1,734.72, as Hyundai Motor rallied 0.5 per cent to Won66,100 after falling nearly 2 per cent initially. Taiwanese shares rose 1 per cent to 8,184.65. Hong Kong's Hang Seng - down nearly 4 per cent at one point - finished 0.4 per cent higher at 25,201.87.

In China, Shanghai's composite index rose 0.6 per cent to 5,180.514, lifted by strong 2007 earnings estimates from several banks including ICBC and China Construction Bank.

Australian shares closed down for a tenth straight session, but like other Asian markets, trimmed earlier steep losses. The S&P/ASX 200 fell 0.8 per cent to 5,747.3.

/... http://news.yahoo.com/s/ft/20080118/bs_ft/fto011820080434430815;_ylt=AkZUw788aX9fsEh9eIfPwRL2ULEF

[ozymandius]

8. Life does turn on a dime, doesn't it?

[Ghost Dog]

9. Certainly these days, and certainly in Asia!

:coffee:

ed. I'm coming to reckon the PPT is (of course?) active in all significant markets when they see the need...

[Ghost Dog]

10. FTSE higher on mining bid talk

London equities inched higher on Friday after the mining sector benefited from fresh bid speculation, but further turbulence in the financial sector kept gains modest.

The FTSE 100 rose 0.3 per cent lower to 5,922.7, a tentative advance of 20 points in volatile trade. The Mid-cap FTSE 250was 0.1 per cent higher at 9,672.3.

Weaker-than-forecast retail sales in December added to hopes for a rate cut in February. The Office of National Statistics said the measure of consumer spending fell 0.4 per cent from November, defying expectations of a 0.2 per cent rise.

London's mining sector once more dominated the upside. There was fresh rumours that BHP Billiton (NYSE:BHP) was preparing to sweeten its unsolicited offer for peer Rio Tinto, indicatiing the inclusion of a significant cash element. Shares in Rio rose 2.3 per cent to £46.04, whilst BHP rose 0.2 per cent to £13.50.

/... http://news.yahoo.com/s/ft/20080118/bs_ft/fto011820080522430820;_ylt=AmOz_b8ckTPmUhJKSb2JKEj2ULEF

But at the opening: FTSE falls after Wall Street sell-off

London equities fell in opening trade on Friday, after big losses on Wall Street overnight fostered further concern about the health of the US economy.

The FTSE 100 started the session 0.5 per cent lower at 5,872.5, a loss of 30 points led by oil and banking stocks. Mid-cap retailers pressured the FTSE 250, which lost 0.8 per cent to 9,648.9.

/... http://news.yahoo.com/s/ft/20080118/bs_ft/fto011820080419430812;_ylt=AogKAwy1tm_oEKgPk13LO5X2ULEF

[ozymandius]

7. Bush to lay out economic stimulus ideas

WASHINGTON - President Bush is putting together his first public call for an emergency fiscal stimulus bill while negotiations on Capitol Hill focus on rebates for taxpayers and other steps to jump-start the sagging economy.

Bush planned to lay out his position Friday, but he wasn't expected to go into specifics. Press secretary Dana Perino said Bush would demand that any package be effective, simple and temporary — mirroring calls by Democratic lawmakers for a "timely, targeted and temporary" stimulus measure.
.....

The rebates would likely be limited to individuals with incomes of $85,000 or less and couples with incomes of $110,000 or less, the aides said, speaking on condition of anonymity because no final decisions had been made.

The president did not push for a permanent extension of his 2001 and 2003 tax cuts, many of which are due to expire in 2010, officials said. That would eliminate a potential stumbling block to swift action by Congress, since most Democrats oppose making the tax cuts permanent.

Bernanke voiced his support for a stimulus package in an appearance before the House Budget Committee. He stressed that it must be temporary and must be implemented quickly — so that its economic effects could be felt as much as possible within the next 12 months.

http://news.yahoo.com/s/ap/20080118/ap_on_go_pr_wh/economy_stimulus

[radfringe]

23. piehole alert for 11:50-ish this morning?

be interesting to see how tha markets react to smirk-boy's stimulus

[UpInArms]

62. a REBATE of $800?

:wow:

Inflation and all that considered - last time Puke-boy bought votes it only cost $300

[wishlist]

74. Desperately trying to avoid 'Bush Legacy' of total failure n/t

[UpInArms]

77. Whoopsie! That turns out to be $1600 per couple - hope that all

those suckers that take the REBATES don't end up owing more taxes than they paid in because that's their REFUND early.

:crazy:

[MilesColtrane]

76. He's trying to buy a legacy.

Those are pricier.

[ozymandius]

11. Countrywide boosts execs' bonuses (hope you haven't eaten)

LOS ANGELES (AP) -- Countrywide Financial Corp. has sweetened annual bonus awards for a handful of its top executives as an incentive for them to remain with the mortgage lender as it goes through the process of being acquired by Bank of America Corp., according to regulatory filings Thursday.

Countrywide (CFC, Fortune 500)'s compensation committee has approved retention awards of cash and cash-settled restricted stock units for David Sambol, president and chief operating officer; Eric Sieracki, executive managing director and chief financial officer; Ranjit Kripalani, executive managing director, Capital Markets; and, Carlos M. Garcia, executive managing director, Banking and Insurance, according to the filing with the Securities and Exchange Commission.

The bonus portion of the incentive packages range between $2.5 million for Kripalani and $1.45 million for Garcia. The executives must remain with the company through at least March 15, when the bonuses are to be paid, according to the filing.

In this latest action, Countrywide's compensation committee did not designate a retention incentive bonus for Countrywide Chairman and Chief Executive Angelo Mozilo.

http://money.cnn.com/2008/01/17/news/companies/countrywide.ap/index.htm?postversion=2008011722

[Ghost Dog]

15. Fu... No, thankfully I rely on coffee and cigarettes in the mornings

:puke:

[Warpy]

124. Too bad drugs are illegal

I have a feeling they'd be coming in really handy just about now.

[saigon68]

22. How Quaint ------Piracy still exists

Good thing the stockholders are a mild batch (herd) of sheep

[ClintonTyree]

24. Amazing.....

let's reward the people who's decision it was to push sub-prime and ARMs, costing them billions. Only in America. As our bat-shit crazy President would say, "that's uniquely American". :banghead:

[MilesColtrane]

78. I could have helped them lose a billion dollars for half that price.

[Ghost Dog]

12. European financials hit by credit fears

European equities got off to a slow start on Friday as investors continued to recoil from financial stocks and other risky bets in the wake of US subprime writedowns this week.

In early trade the FTSE Eurofirst 300 was down 0.4 per cent to 1,368.89, Frankfurt's Xetra Dax shed 0.4 per cent to 0.4 per cent to 7,382.55, the CAC 40 in Paris lost 0.3 per cent to 5,141.84 and London's FTSE 100 fell 0.3 per cent to 5,883.7.

Belgian bank Dexia was among the biggest fallers as bond insurers became the latest victims of the credit crunch after Moody's, the ratings agency, said it may cut the debt rating of US bond insurer Ambac.

Dexia, which owns Financial Security Assurance, another US bond insurance group, fell 5.5 per cent to EU15.12, while Natixis, the French parent of Bermuda-based CIFG, shed 4.7 per cent to EU11.47.

Alternative energy companies have fallen steeply since the begining of the year as investors have become more averse to risk. These stocks were among the biggest gainers in 2007.

Renewable Energy, which produces silicon for solar panels, fell 16 per cent to NKr171 on fears its rapid international expansion would increase costs. The stock gained more than 100 per cent last year.

German solar panel maker Q-Cells, which soared 186 per cent in 2007, was down 4.1 per cent to EU67.54.

/... http://news.yahoo.com/s/ft/20080118/bs_ft/fto011820080450140817;_ylt=Aj9SW0Hu6yJU0Yrz6rgYMBr2ULEF

[Ghost Dog]

27. European finance ministers seek strategy to quell market turmoil

PARIS (AFP) - Finance ministers from Britain, Germany, France and Italy met here on Thursday to discuss a common European strategy to confront turbulence on the financial markets.

French Finance Minister Christine Lagarde hosted the talks amid growing concern about the fallout from the US subprime mortgage crisis that has rattled markets since last year and cast a pall over the global economic outlook.

Lagarde, her British counterpart Alistair Darling, Peer Steinbrueck of Germany and Tommaso Padoa-Schioppa of Italy discussed how to reach "a European strategy on all of the main issues of international finance," a French finance ministry official said.

After the meeting, Lagarde told reporters that the fundamentals of the European economy were "good" and that financial and money markets were in a process of "gradual recovery."

"We do not predict a pronounced economic slowdown," said EU Monetary Affairs Commissioner Joaquin Almunia who also took part in the talks.

Officials said the biggest challenge for the "European four" was reaching agreement on mechanisms to increase transparency in the markets and in the banking sector, and perhaps even strengthening EU-wide financial regulations.

In an interview with several European newspapers, British Chancellor of the Exchequer Darling said earlier that the financial crisis was "significant" and required "rapid action."

The four European governments "share the objective of doing everything possible at government level, and separately by the central banks, to find a solution to the crisis on financial markets and prevent future crises.

"We are facing an enormous problem," he said in the interview with the French financial newspaper La Tribune, Germany's Handelsblatt and the Italian Il Sole 24 ore.

Thursday's talks came ahead of a meeting of heads of government of the four countries in London on January 29 and another of the G7 finance ministers in Tokyo on February 9.

Other than the four European countries, the G7 includes Japan, the United States and Canada.

/... http://news.yahoo.com/s/afp/20080117/bs_afp/francebritaingermanyitalypoliticsfinance_080117210652

[Ghost Dog]

163. European Stocks Fall for Fourth Day, Led by Allianz, ING Groep

Jan. 18 (Bloomberg) -- European stocks fell for a fourth day, led by insurers and banks as investors speculated that the Bush administration's plan to revive the U.S. economy won't be enough to prevent a recession.

Allianz SE, Europe's biggest insurer, and ING Groep NV, the largest Dutch financial-services company, tumbled the most in more than four years amid concern the credit ratings of U.S. bond insurers will be downgraded. Societe Generale SA had the biggest decline among banks.

``Things don't look so good, the economy is weak, and no one is buying because people are scared,'' said Andreas Nigg, a fund manager at Vontobel Asset Management in Zurich, which oversees $32 billion. ``People are also a bit disappointed by the size of the Bush stimulus package.''

The Dow Jones Stoxx 600 Index fell 1.1 percent to 327.53, extending its drop this week to 4.7 percent for a sixth straight weekly decline, the longest losing streak since 1998. The gauge is down 18 percent from a 6 1/2-year high on June 1.

...

National benchmarks fell in 14 of the 18 markets in western Europe. The U.K.'s FTSE 100 lost less than 0.1 percent, and France's CAC 40 declined 1.3 percent, as did Germany's DAX. The Stoxx 50 decreased 1.5 percent, and the Euro Stoxx 50, a measure for the euro region, slid 1.7 percent.

Allianz retreated 5.8 percent to 133.19 euros. Axa SA, France's largest insurer, fell 3.4 percent to 24.6 euros. ING lost 5.7 percent to 23.45 euros.

Societe Generale, France's third-largest bank, sank 8.2 percent to 85.34 euros. Barclays Plc, Britain's third-largest bank, slid 3.4 percent to 450 pence.

Ambac Financial Group Inc. of the U.S. today scrapped a plan to raise equity capital after the bond insurer's shares plunged 70 percent in the past two days. MBIA Inc., the world's largest bond insurer, lost more than 40 percent of its value in the past two days.

Credit Ratings

Moody's Investors Service and Standard & Poor's late on Jan. 16 said they are reviewing the rankings the companies' depend on to sell bond insurance.

Axa has a 10 percent stake in MBIA and Allianz a 2.9 percent holding, according to Bloomberg data. Barclays has a 4.1 percent stake in Ambac, Axa has a 3.3 percent holding, and Allianz owns 2.8 percent of the stock, the data shows.

/... http://www.bloomberg.com/apps/news?pid=20601085&sid=aJA8EwUT6WM8&refer=europe

[Ghost Dog]

177. On Europe: The CAC may be staid but it's reliable

(FT) It was a pretty uninspiring gift to receive on your 20th birthday.

The CAC 40, the index of France's leading shares, turned 20 on December 31 last year. It had gained a measly 1.3 per cent for the whole of 2007. Investors would have done better with an average savings account in a post office.

The gains made by the CAC 40 in 2007 were about a third of those made by both the FTSE 100 and the Amsterdam index, and less than a quarter of the advance of the Madrid bourse.

For Germany's Dax, which made a formidable 22 per cent return, the CAC was barely a speck in its rear-view mirror. Of the leading European equity markets, only Italy did worse, losing 7 per cent in the year. But could these plodding returns be a blessing in disguise?

Since the new year, the Paris index has continued to struggle along with equity markets in the rest of the developed world. Its prospects for 2008 remain patchy amid fears of a global slowdown. Within the first week of 2008, the CAC had already erased all of its gains in 2007.

Thus, having missed out on most of the gains in 2007, the CAC is certainly sharing the general pain of 2008.

Earlier this week, the index dipped to its lowest level since autumn 2006, a fate that the Footsie and the Dax have so far avoided. They are both still trading slightly above their levels of August last year.

At first blush then, the CAC appears to be an index with a low "beta" - a term used to measure the extent to which a security or sector moves in line with the rest of the market or other group of securities - on the way up, but a higher beta on the way down. This is a portfolio manager's nightmare.

Jean Danjou, head of strategy at Oddo Securities says that the CAC's performance is simply down to the fact that it is a more diversified indicator than many other nationally-based indexes that are heavily weighted toward certain sectors or certain very large companies. The CAC is an average index in the purest sense of the term, and if it is plodding, then Europe more generally is plodding also.

"The European national indexes do not really reflect the economic conditions of each country," says Mr Danjou.

/more... http://news.yahoo.com/s/ft/20080118/bs_ft/fto011820081105150857;_ylt=Am9oMbnHkzYN2K68ioEBdQP2ULEF

[Ghost Dog]

13. MBIA, Ambac Tumble, Default Risk Soars After Losses (Update3)

I was breaking this news to DU here: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3145394

(another rec, please, Ozy?)

[ozymandius]

18. Done, with comments.

:hi:

[Ghost Dog]

20. Good man. See my comment re. Money Markets there too.

:-(

[JNelson6563]

32. K&R'd it for ya

So much big bad news out there.


Julie

[Ghost Dog]

36. Good, Julie. I'm off out to get some fresh air myself now.

(was awake 'til 05:00 my time, keeping an eye out, then up again at 08:30).

[AnneD]

52. Morning Marketeers...

:donut: and lurkers. Ghost Dog, your threads were the first I hit this morning. Thanks for info. It is not on the M$M here and I have not seen the financial news yet to see if it is being covered. I am trying to absorb all the implications but it doesn't look goo. I am wearing my heavy duty undergarments today-the Valkyrie line, no under wire here-I'm talking a full metal jacket a la Wagner.

I am laughing out my ass at the 'stimulus' plan the government Bush and the lap dog congress are talking about. It really shows how out of touch these folks are. A measly little check will not help and certainly won't solve the problem. It is nothing more than Bread and Circuses for the masses. Most folks I know personally and I am assuming all the folks on this thread want a real job with good wages. A handout is an insult and is not addressing the real problem of employment. Without a person earning a decent wage-you have no consumer. We did not get in this jam overnight and we won't solve it overnight and throwing a little money at it will not solve it. So instead of worrying about base ball and steroids, perhaps these numb nuts need to address real issues and real problems.


Turn Back The Hands Of Time Pool
Guess the date the DJIA rolls back to the level it was when the chimp took office.You can revise your dates up until Labour Day (the working man's holiday)or the DJIA hits 11000 (got to have a cut off). Anyone can join, just give a date and your reasoning for that date.


GhostDog.....4/8
ProgressiveRealist.....4/17
MilesColtrain.....5/3
Happyslug.....5/9
UIA.....7/15
Roland99.....7/28
Abelenkpe.....8/2
Kineneb.....8/8
Prag.....9/5
Birthmark....10/10
AnneD....10/24
MsLeopard.....10/31


Warpy, which Equinox 3/20 or 8/22? Spotbird, is that 2/5?

Happy hunting and watch out for the bears, they are stirring from their slumber and are restless.

[UpInArms]

57. Hey AnneD!

can I get in on the pool?

put me down for 7/15

and the cheerleaders will chalk it off to the summertime blues

:hi:

[AnneD]

61. Done...

:hi:

[DemReadingDU]

102. I want in the pool too

2/29

because it is leap day, LOL

[Karenina]

196. I'm in for April Fool's Day.

Actually when I first saw the pool 3/1 popped into mind. That was before yesterday's fun and games. Seeing the downward action today makes me feel there will be HUGE efforts to forestall the inevitable. Batten down the hatches!!!

(CD coming your way by the end of the month!)

[Ghost Dog]

83. No no, AnneD: 4/28 (ProgressiveRealist is before me)

Orthodox and Coptic Easter Monday (Κύριε ἐλέησον - Kyrie Eleison - 'Lord have mercy' - also, 5 weeks after the non-Orthodox Easter Monday and, for example, the Monday after the end of Jewish Passover - פֶּסַח on the Saturday; just before the European Workers' May Day ending, I believe, Pagan Spring; one day before Japan's Greenery Day and 5 days before Japan's Memorial Day.

That's all according to my "Economist Diary" in which (oddly?) I can find no Islamic dates around that time. But it does say it is also 14 days before the Buddha's birthday (holiday Hong Kong).

¿Good enough reasoning for ya? O8)

[kineneb]

116. FYI:Persian New Year (Nou Rooz), Mar 20 -another spring holiday

(celebrated on equinox, so calendar day varies) Big day in Iran and expat community- family parties, food, countdown to time of equinox. Mullahs tried to ban it, total failure. Hard to stop folks from celebrating a 5000+ year-old holiday. Inside of every Muslim Persian is a Zoroastrian trying to get out.

Other spring holidays-
Mohammed's Birthday: 19 Mar
Maundy Thursday (Western Church): 20 Mar
Beginning of Purim: 20 Mar

[Ghost Dog]

128. Kheili mamnoon (thanks very much?) kineneb.

Highly relevant information there. I shall attempt to give those responsible at The Economist (&/or Letts) for their diary a piece of my mind.

And I stick to my chosen date for all these and many other such deeply psychological reasons.

:thumbsup: and please do keep those ancient sacred fires burning...

Ah, Purim, entendido, understood.

[AnneD]

171. Hubby played...

at a Zoroastrian wedding. Great group of folks-educated, refined, loved music. We had a great time.

[Mojorabbit]

89. Anne

I'd like in too please. 9/5 is my pick!

[muleboy303]

100. i'll go with 9/11

just for the sheer ironic synchronicity of it.

[Hugin]

106. Rudy? Is that you?

:lol:

Good pick.

[UpInArms]

119. can't be Rudy - he didn't invoke RayGun

[MattSh]

120. Hmmm, sometime between...

Tax day (4/15) and Federal Tax Freedom day (4/30).

Let's split the difference and go for 4/22.

Reason? It's down about 15% already in 3 months. And I've never seen a market like this before.

Sorry, guess I"m just not as "optimistic" as the rest of you all.

[AnneD]

122. Hey....

we can still change as long as it is before the cut offs. Besides never underestimate WS and Politicos to muck around in the quicksand before they sink.

[Ghost Dog]

143. Hey, I'm on 4/28; I repeat: 4/28

and certainly pessimistic (though there will no doubt be bouncing around, so many of us could win, under AnneD's terms!).

[AnneD]

170. This isn't a democracy...

I am a benovelent dictator! While winning is nice-I think the point of a game is to have fun and spark conversation-thus my 'explain why' rule. And I promise to correct all typeo's on Monday. Say isn't it time for your dinner and Whine ;)

[AnneD]

121. I'll get everyone in today

on Monday's post. Sorry GD-I had 4/38 and thought I corrected it to 28. C'est le vie. Our pool has better support than the market. Any other takers....Ozy?

Seems to be testing the 12000-12250 range. Once the impact of some of this financial scandal comes fully out and folks grasp the significance, it will take an AED to 'stimulate' the market.

Oh I guess I need a disclaimer, like this is for our amusement and not to be taken as actual advice, like invest in a pair of floaties or something. Most of us regular posters and lurkers on this thread have moved to protect our assets as best we could some time ago.

[Warpy]

127. Vernal equinox, of course

3/20, but that's because I fell again and this time it's a metatarsal and no, I'm not going to bother with Xrays and casting because life is tough enough already. I'm feeling incredibly pessimistic right now.

I think there will be a short rally in late spring, and then it'll keep right on diving after everybody's spent their tax refunds and that's all she wrote, Joe.

[Shipwack]

136. I'm in... 11/05

Put me down for the 5th of November ("Remember, remember...").

Not because of Guy Fawkes Day, but because if it hasn't happened by then, it will give the corporate bastards an excuse to crash the market and blame it on Democratic victories on the previous day's elections.

ETA: Actually, I don't think it'll take that long to get that low, but if I knew anything about investing I would be doing better money wise... I'll still predict a market drop after a Dem victory though, with them getting the blame for it.

[the other one]

138. January 30 for me please

the other one - 1-30

[TalkingDog]

165. Hey AnnieD. In case you didn't get my PM yesterday

I'm in for Friday March 28 at 2pm-ish.

Thanks



My Favorite Master Artist: Karen Parker GhostWoman Studios

[AnneD]

172. I sent you ...

some mail too.....

[ozymandius]

14. Data lost for 650,000 Penney, other customers

PLANO, Texas (AP) -- Personal information on about 650,000 customers of J.C. Penney and up to 100 other retailers could be compromised after a computer tape went missing.

GE Money, which handles credit card operations for Penney (JCP, Fortune 500) and many other retailers, said Thursday night that the missing information includes Social Security numbers for about 150,000 people.

The information was on a backup computer tape that was discovered missing last October. It was being stored at a warehouse run by Iron Mountain Inc (IRM)., a data storage company, and was never checked out but can't be found either, said Richard C. Jones, a spokesman for GE Money, part of General Electric Co. (GE, Fortune 500)'s General Electric Capital Corp.

Jones said there was "no indication of theft or anything of that sort," and no evidence of fraudulent activity on the accounts involved.

http://money.cnn.com/2008/01/17/news/companies/penney_data.ap/index.htm?postversion=2008011722

[UpInArms]

16. dollar watch

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

Last trade 76.433 Change +0.199 (+0.26%)

Record Breaking Moves in the Currency Market

http://www.dailyfx.com/story/topheadline/Record_Breaking_Moves_in_the_1200588978630.html

At a time when most traders in the currency market are focused on whether the Euro will rise to 1.50, many people may not have noticed that record highs or at least multiyear highs are being made in other currency pairs. For example, the US dollar fell to a record low against the Swiss Franc on Wednesday while EUR/GBP rose to record high on Tuesday. Less headline grabbing but still significant moves were seen in other currency pairs such as GBP/CHF and GBP/AUD which fell to 4 and 10 year lows respectively.

Here is a tally of the recent moves:



As you can see, the most profound weakness was concentrated in the British pound pairs. A closer look reveals that nearly all of the currency pairs that hit significant lows are carry trades tied to the Japanese Yen and Swiss franc. For the two pairs that hit significant highs, both had the Euro as one of its components.

Will the Moves Continue?

Fundamentally, there is no reason to believe that the current moves will end. The UK is expected to deliver their second interest rate cut next month, the Federal Reserve is expected to cut interest rates by at least 50bp on January 30th, and the volatility in the stock markets will make it difficult for carry trades to recover. There are two main factors driving the weakness in carry trades: the 800 point drop in the Dow year to date and the beginning of what may turn out to be a global easing cycle. If US growth continues to slow in 2008, this could be a bear market for stocks. In such an environment, carry trades will have a very difficult time rallying. As for the British pound, surprisingly weak economic data has supported the case for further easing. This is a new cycle of monetary policy for the central bank and the past 2 months of pound selling represents position adjustments in reflection of that. The hawkishness of the European Central Bank should keep the Euro steady.

...more...

Manufacturing Sector Slips into Recession, Is it Time for a 75bp Rate Cut?

http://www.dailyfx.com/story/bio1/Manufacturing_Sector_Slips_into_Recession__1200611617910.html

In yesterday’s Daily Fundamentals, we warned that even though the US dollar recovered and we had a few pieces of stronger economic data, it is premature to assume that the sell-off has come to an end. Following the shockingly weak Philly Fed manufacturing survey, talk of a recession in the US economy is back in force and with lots of fundamental backing behind it. The manufacturing index fell to the lowest level in over 6 years which basically means that the manufacturing sector is already in a recession. Taken together with the Financial Times report that California and Florida are in or on the brink of a recession and we can understand why stocks fell over 300 points today. Housing starts dropped to the lowest level in 17 years while building permits posted their biggest drop in 33 years. The dollar is weaker against all of the major currencies with the exception of the commodity currencies and rate cut expectations have increased once again. Believe it or not the futures market is now pricing in a 58 percent chance of 75bp of easing at the end of the month up from 40 percent yesterday. In his Congressional Testimony, Bernanke repeated his prior warning that the Fed is “ready to take substantive additional action.” Up until today, this meant 50bp of easing because we expect the Federal Reserve to deliver exactly what the market prices in, nothing more, nothing less. Now that rate cut expectations are favoring 75bp of easing, we will be watching to see if those expectations grow. The financial markets have been extremely volatile and Fed fund futures are no different. We do believe that the US economy needs a 75bp rate cut, it is just a matter of whether Bernanke will risk a jump in inflationary pressures to support growth. If the Bush Administration announces a stimulus package, that too could lower rate cut expectations as tax cuts and additional spending reduces the need for more aggressive easing. Leading indicators and the University of Michigan consumer confidence reports are due for release tomorrow; both numbers are expected to be dollar negative.

...more...

[Ghost Dog]

21. Window on Sterling and CHF:

[TalkingDog]

34. Please don't boot me from SMW

Bob from Accounting reports: Dollar Plummets against Camel Cash.

http://www.bobfromaccounting.com/1_2605/camelcash.html


I promise to hardly ever be frivolous on this august and learned thread after this.....




My Favorite Master Artist: Karen Parker GhostWoman Studios

[UpInArms]

37. that was

priceless!



wonder where I can get more of those!

They are definitely of infinite more value than the buck, 'cuz there are fewer in circulation

[Roland99]

39. lol!

good one. Kudos for the McCLIEllan reference!

[Ghost Dog]

48. Far out.

Best laugh I've had in a good while, thanx :rofl:

[Hugin]

58. What's in your wallet?©

:spray:

[AnneD]

66. You can get....

Asian twin hookers for an hour AND a fleece jacket? Not only that-you can go to the clinic there and get excellent medical care for a nominal fee.

[Hugin]

70. I'm saving up for the...

NASCAR© Iron Lung. :D

[AnneD]

79. You mean respirator...

Nascar O2 tanks are cheaper-You'll also need to get the Dale Earnhardt tube feeding set up. That Head and Neck cancer can be a real booger.

[Ghost Dog]

91. But hey! It says here Zippo lighters are still Made in USA!!!

http://www.zippo.com/

ed. ... And can become collectors' items of course. Hmmm :freak: (:thinks:)

[Radio_Lady]

197. No worries, TalkingDog! I need a little laugh on this glum day...

Thanks for posting, even though it's not august....

[citizen snips]

153. Dollar Mixed, Gold Falls in Europe

LONDON (AP) -- The U.S. dollar was mixed against other major currencies in late European trading Friday. Gold fell.

The euro traded at $1.4627, down from $1.4673 late Thursday in New York. Later, in midday trading in New York, the euro fetched $1.4623.

Other dollar rates in Europe, compared with late Thursday, included 107.00 Japanese yen, unchanged from late Thursday; 1.1005 Swiss francs, up from 1.1003; and 1.0258 Canadian dollars, down from 1.0299.

The British pound was quoted at $1.9555, down from $1.9713.

more...
http://biz.yahoo.com/ap/080118/dollar_gold.html?.v=4

[Ghost Dog]

17. LEAP/E2020: Full global impact phase of the Very Great US Depression

... One aspect, and a catalyst, of this global systemic crisis is the United States' stepping into an unprecedented (1) socio-economic crisis in 2007, hitting hard on households (2) as a result of the housing bubble burst and of their increasing insolvency, soon followed by financial operators' insolvency, due to the pure and simple evaporation of USD hundreds of billion-worth in assets.

In 2008, in addition to these two types of US players, companies will be hit as are caught in the crossfire between credit crunch and the collapse of housedold consumption, as well as public organisations whose fiscal revenues crumble. From now to this summer in particular, the financial crisis triggered by the US subprime mortgage loans will turn into a much wider-ranging crisis involving the implosion of the Credit Default Swaps (CDS) market. This will represent a now tipping point in the impact phase of the global systemic crisis

/... read all available links here, and tremble: http://leap2020.eu/GEAB-in-English_r25.html?PHPSESSID=1b35f747f8c8cdee7b8beb462c7de388

I think I'm actually going to have to subscribe to this one. And probably Roubini too.

Editing to add notes (1) and (2):

(1) Or rather ‘with a precedent' which most experts and specialised media often refer to, and that is the 1929 crisis and the Great Depression that followed in the 1930s. On this subject, the LEAP/E2020 team demonstrated in the previous issues of the GEAB that the present crisis is in fact much more serious that the 1929 crisis.

(2) If anyone still doubts that there is a recession in the US, we suggest he/she complies to the following simple exercise: enter the expression « december sales down; in Google and see the impressive list of companies from all sectors (retail sales, cars, electronic, furnitures,…) whose sales collapsed in December 2007, a month usually very profitable due to the holiday season.

[UpInArms]

19. Wall Street bonuses fell 4.7 percent to an average of $180,420

http://news.yahoo.com/s/ap/20080118/ap_on_bi_ge/wall_street_bonuses

NEW YORK - Wall Street bonuses fell nearly 5 percent in 2007 after a relentless subprime mortgage crisis battered the stock market, forcing the country's biggest investment banks to write down billions in bad loans.

The average bonus of $180,420 in 2007 dipped 4.7 percent from the previous year, state Comptroller Thomas DiNapoli said in a statement released Thursday.

The securities industry rewarded $33.2 billion in bonuses to its New York City employees, 2 percent less than the record $33.9 billion in 2006, he said.

The numbers are taken from the seven largest financial firms headquartered in New York City, which are tracked by the comptroller's office. The firms are Citigroup Inc., Merrill Lynch & Co., JPMorgan Chase & Co., Goldman Sachs Group Inc., Bear Stearns Cos., Morgan Stanley and Lehman Brothers Holdings Inc.

All except Goldman Sachs, which largely avoided the risky loans, have been battered by the financial crisis.

While the seven firms earned $39 billion in profits during the first half of 2007, a 41 percent gain over the prior year, they lost $28 billion in the third and fourth financial quarters, DiNapoli said.

Total pretax profits for the seven firms totaled $11 billion in 2007, less than one-fifth of the $60 billion record set in 2006, the comptroller said.

...more...

[Ghost Dog]

29. Meanwhile, someone's headhuntng (this from yesterday's thead):

Credit Suisse to expand private bank worldwide

ZURICH, Jan 17 (Reuters) - Credit Suisse Group (CSGN.VX: Quote, Profile, Research) bucked a financial sector trend on Thursday, announcing a worldwide expansion plan for its flagship private banking arm.

In sharp contrast to layoffs elsewhere in a financial sector hard-hit by the credit crisis, Credit Suisse said the division was "well-positioned to excel in the current market conditions".

It aims to add 1,000 new bankers to serve wealthy clients by 2010, taking the total to around 4,100.

...

Wealth managers -- who invest money for rich people -- have largely escaped fallout from the credit crisis, which has seen the world's biggest banks come hat-in-hand to investors to shore up equity bases badly damaged by billions in writeoffs.

CONTRAST

Swiss rival bank UBS AG (UBSN.VX: Quote, Profile, Research), seen as Europe's biggest casualty of the subprime crisis with $14.5 billion of writedowns, expects to face angry shareholders at an extraordinary meeting on February 27 to approve a 13 billion Swiss franc ($11.79 billion) capital injection by Singapore and an unnamed Middle East investor.

And banks including Citigroup (C.N: Quote, Profile, Research) and Merrill Lynch (MER.N: Quote, Profile, Research) have sought billions of dollars of emergency funding from wealthy sovereign funds. Credit Suisse, which has escaped the crisis relatively unscathed so far, said its expansion plans target Latin America, Europe, India, Japan, the United States and the Middle East.

Credit Suisse said it aimed to build a comprehensive wealth management operation in the United States, establish an onshore presence in Japan in 2008 and enter the onshore markets in Mexico and Brazil.

/... http://www.reuters.com/article/marketsNews/idINL1759611520080117?rpc=611&pageNumber=1&virtualBrandChannel=0

[54anickel]

25. Bwahaha! Look at those closing numbers then and now!!! How long before the

DOW steps into the way-back machine?

(WOO-HOO GOLD!!!)

[Ghost Dog]

26. Monday April 28th (see yesterday's thread & calling AnneD!)

I still say the DOW's a chimera (dumbed-down headlines, headlines, headlines), myself. S&P, Nasdaq 500 & the Russell whatever seem more indicative, to my eye. :hi:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3143724#3144644

Nb. Roland's thread on this is here: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x2706896

[Roland99]

31. Your referral check is in the (e)mail

:hi:

[Ghost Dog]

33. grin

I'm off out to do some physical labour for a while now. :hi:

But do check out this one, too (cf. #24, #32): http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3143879#3144179

[Roland99]

35. Will do. And stay warm

[Ghost Dog]

42. Great. But, needs one more rec?

[AnneD]

67. I chimed in

for you too. Have a good day, and stay warm.:hi:

[cornermouse]

28. Good luck, Ozy.

[UpInArms]

40. Sprint Nextel plans to layoff about 4,000 workers

07. Sprint: Restructuring to save $700 mln-$800 mln by year-end
8:21 AM ET, Jan 18, 2008 - 20 minutes ago

08. Sprint Nextel Q4 post-paid churn 2.3%
8:19 AM ET, Jan 18, 2008 - 22 minutes ago

09. Sprint Nextel end-2007 subscriber base 53.8 million
8:19 AM ET, Jan 18, 2008 - 22 minutes ago

10. Sprint Nextel plans to close 8% of retail locations
8:17 AM ET, Jan 18, 2008 - 24 minutes ago

11. Sprint Nextel plans to layoff about 4,000 workers
8:17 AM ET, Jan 18, 2008 - 24 minutes ago

[UpInArms]

44. Wireless carrier loses 683,000 postpaid customers

http://www.marketwatch.com/news/story/sprint-nextel-cut-4000-jobs/story.aspx?guid=%7B2F0CCED6%2DB782%2D4143%2DB751%2DD45FCBB5D25C%7D&dist=sp_inthis

WASHINGTON (MarketWatch) - Sprint Nextel Corp. on Friday said it would eliminate 4,000 jobs and close 8% of company-owned retail stores as it lost more key customers to rivals.

The job cuts and cost reductions represent the first moves by new Chief Executive Dan Hesse, who was hired last month.

In the fourth quarter, Sprint (S: 11.57, -0.26, -2.2%) said it gained a net 500,000 customers, but most of the gains come via less profitable wholesale channels.

The company lost 683,000 postpaid customers, putting its losses in that category at 1.71 million over the past six quarters. Most of those customers have flocked to rivals such as AT&T Inc. (T: 37.30, -0.57, -1.5%) or Verizon Wireless.(VZ: 40.91, -1.41, -3.3%)

Postpaid customers sign up for annual plans and pay at the end of each month. They are considered the most valuable in the industry.

Churn, or the number of customers who canceled service, remained stubbornly high at 2.3% in the fourth quarter.

Pressured by subscriber defections, Sprint said it would cut 4,000 jobs and close 125 of its 1,400 company-owned retail stores.

...more...

[Ghost Dog]

49. Postpaid...

We've got that here in Spain. Trouble is, they make it almost impossible to cancel the contract, and the legal remedies are extremely weak.

[citizen snips]

161. Sprint Shares Plummet After Job Cuts

NEW YORK (AP) -- Shares of beleaguered Sprint Nextel Corp. took a nosedive Friday after the nation's third-largest wireless carrier said it continued to lose subscribers at an alarming rate during the fourth quarter and will lay off thousands to cut costs.

A "meltdown," a "miserable performance" and "disaster" were some of the words analysts used to describe Sprint's predicament Friday. The company said it lost 683,000 postpaid subscribers during the quarter. Wall Street had expected a loss of about 250,000 to subscribers, according to Goldman Sachs analyst Jason Armstrong.

Sprint also announced plans to cut 4,000 jobs, close 8 percent of its retail locations and reduce its use of contractors and outsourced services. While investors have been expecting the company to outline a cost-cutting plan since its new CEO took helm, Armstrong said in a client note the cuts were already in the works under interim management.

"Hence, we would warn that new CEO Dan Hesse has yet to take his cut at the business," he wrote. "He has historically been aggressive on cost cuts and conservative on guidance, so look for more reductions when he finalizes his plan."

more...
http://biz.yahoo.com/ap/080118/sprint_nextel_mover.html?.v=1

[Roland99]

41. 8:32am Futures - Get your party hats on!!

DJIA INDEX 12,368.00 +152.00
S&P 500 1,358.90 +19.20
NASDAQ 100 1,879.50 +23.50

[UpInArms]

51. Doing the Rate-Cut Boogie! Further rate cuts quite possible: Fed's Lacker

http://www.reuters.com/article/businessNews/idUSWBT00819820080118?feedType=RSS&feedName=businessNews

RICHMOND, Virginia (Reuters) - Weaker U.S. growth means that more interest rate cuts are "quite possible" but inflation is also still a risk, Federal Reserve Bank of Richmond President Jeffrey Lacker said on Friday.

A slowing economy requires lower real interest rates because it means a softer relative demand for resources now compared to the future," he told the Risk Management Association of Richmond in prepared remarks. A copy of his speech was made available to the media prior to delivery.

...more...

[Roland99]

53. My life's timing possibly couldn't have been better.

I just may be in prime shape for a home purchase in a little over a year... Prices falling, rates falling, and a painful debt finally paid off.

[Hugin]

59. Best of luck, Roland99...

There is a silver lining in this sow's ear for you. :)

[Roland99]

85. I hope so! I have some good karma coming

lol

[AnneD]

75. Hubby and I ....

are thinking the same thing. We are continuing to pay debt off and save money. Hubby got a notice last night that he will recieve a decent raise. He is very happy-he has been underpaid for years. I guess they finally figured out why the can't keep folks around after training.

We are biding our time and want to be in a good place financially when we purchase a home. We have been sacrificing for a long time now. Hubby wants to buy at the end of this year but I want to get totally out of debt and a savings built before we purchase a house. I am fine with what I have for the while.

[Roland99]

86. I figure a nice house will be my retirement.

wheeeee

[UpInArms]

43. S&P: Financial sector slump to continue into 2009

http://www.marketwatch.com/news/story/sp-financial-sector-slump-continue/story.aspx?guid=%7BBC78F77C%2D0070%2D4128%2DB64B%2DCC3015CC3940%7D

HONG KONG (MarketWatch) -- Ratings agency Standard & Poor's said Friday that the ongoing financial sector "slump" will continue through 2008 and into 2009, testing bank creditworthiness. "The downturn is unsettling because it comes in the context of relatively strong global economic growth and historically low corporate default rates," wrote credit analyst Scott Bugie in a report. "Although the collateralized debt obligation write-downs have grabbed headlines, of equal concern are the systemic risks the downturn has highlighted," he added. Large financial groups have announced $90 billion write-downs of CDOs, subprime securities and leveraged loans so far, the ratings agency wrote in the report.

[UpInArms]

45. GE: 4Q consumer delinquency rate in US up 59 basis points

6 minutes ago GE: 4Q consumer delinquency rate in US up 59 basis points - MarketWatch

9 minutes ago GE: 4Q consumer credit delinquency rate up 15 basis points - MarketWatch

14 minutes ago GE CEO sees less US consumer spending in 2008 - MarketWatch

[UpInArms]

47. A long-time bull throws in the towel

http://www.marketwatch.com/news/story/long-time-bull-turns-bearish/story.aspx?guid=%7B13831378%2DD85D%2D4AEC%2DBFBF%2DD289224E9620%7D

ANNANDALE, Va. (MarketWatch) -- Stock market bulls lost an important ally on Wednesday: Dan Sullivan is now convinced that we are in a major bear market.

Sullivan is editor of two newsletters, The Chartist and The Chartist Mutual Fund Letter. Sullivan has been publishing the first of these since the late 1960s, nearly 40 years ago. Very few others have been continuously editing an advisory newsletter for any where close to that long a period.

Sullivan, therefore, has seen lots of different kinds of market environments, which is why we should place more than the usual weight on what his intuition tells him. And right now, as he said in an interview Thursday afternoon, his "gut feeling" is that we're in a bear market that we will need to let "run its course."

That's Sullivan's way of saying that the decline he now expects is not likely to be a small one, either in terms of duration or magnitude of losses.

As recently as the publication date of the last issue of Sullivan's newsletter, which was in early January, he was still bullish on the stock market's primary trend. What changed in the interim?

Sullivan mentioned two major factors. The first is technical: In recent days, all of the major market averages convincingly broke below their August lows.

...more...

[UpInArms]

50. The Home Equity Crisis Ahead - this is just going to make your skin crawl

http://news.yahoo.com/s/bw/20080118/bs_bw/0804b4068000575390

Subprime mortgages have taken a lot of blame for banks' big losses. But there's another problem lurking behind the mess: home-equity lending.

Buoyed by rising prices, borrowers increasingly tapped into the equity on their properties to finance a new car, renovations, or even a down payment, making equity a key source of consumers' strength. But with the housing market in disarray and prices plunging, the business of home-equity lending is souring. At least $14.7 billion in loans and lines of credit were already delinquent through the end of September -- the highest level in a decade. "After subprime, home-equity lending is the biggest problem the industry has right now," says analyst Frederick Cannon of Keefe, Bruyette & Woods.

What's more, there's little that can be done to prevent the pain from the deterioration of this $850 billion market. A lender on a mortgage has the first claim on the underlying property. In the case of foreclosure, it can sell the property and recoup some money. The bank with the home-equity piece has no such collateral and is usually out the money. "The home-equity lender is going to get hosed," says Amy Crews Cutts, deputy chief economist at mortgage giant Freddie Mac (NYSE:FRE - News).

<snip>

Until recently, the preponderance of home-equity lending came in the form of lines of credit. They allowed borrowers to convert their equity into cash to pay down credit-card debt and the like. But as the boom raced on and housing prices soared to unimaginable heights, banks started offering second-lien, or piggyback, loans that buyers could use to finance their down payments. The practice allowed buyers, especially subprime ones, to buy ever-bigger houses they could ill afford. Traditional underwriting standards were thrown out the window, with buyers increasingly borrowing more than the value of their homes. As a result, this segment soared to 14.4% of the home-equity market in 2006, according to industry newsletter Inside Mortgage Finance.

The boom brought about some especially toxic home-equity loans. Homeowners gamed the system, steadily cashing out every bit of equity from their houses -- a situation that arose in part because banks didn't track whether borrowers took out subsequent loans from competitors. Another bad practice: a home-equity loan on top of a payment-option adjustable-rate mortgage. Those ARMs allow borrowers to make monthly payments that amount to less than the interest. The principal keeps growing, eroding the equity, which makes it a risky home-equity loan on top of an already risky mortgage.

[UpInArms]

54. Wealthy may be next in line in home crisis

http://www.reuters.com/article/newsOne/idUSN1530426720080117?sp=true

HINSDALE, Illinois (Reuters) - A house in this wealthy Chicago suburb is far beyond the reach of most Americans.

Unfortunately, Hinsdale may also now be too expensive for some of the people who already live here.

"There is a section of the population here that over-extended themselves to buy here and then keep up the facade of wealth," said Sharon Sodikoff, a broker associate at local real estate agency Prudential Homelife Realty. "In the next year or so they'll be forced out in dribs and drabs."

With a picturesque little downtown area and large, expensive houses -- according to the Headrick-Wagner Consulting Group, the average home sale price here in the 12 months to September 30, 2007, was around $1.15 million -- Hinsdale seems a world away from the housing slowdown that may have brought the U.S. economy to the brink of a recession.

But even here, far from the housing crisis' epicenter, high earners with good credit may be heading for trouble as their adjustable rate mortgages (ARMs) adjust beyond their means, local real estate agents and others say. In a normal housing market they'd be able to sell, but now they are stuck.

"The next wave of problems will come from prime borrowers who bought too much house or borrowed too much against it," said Michael van Zalingen, director of home ownership services at Neighborhood Housing Services of Chicago. A "prime" borrower is one with good credit.

...more...

[Hugin]

72. I maintain this is the reason for the current... "Crisis Mode".

The 'have' and 'have mores' are now feeling the pinch and this whole 'happy giddy feel-good' stimulus plan is
for their benefit.

[Hugin]

55. ~09:35 ET: Rally...

Index Last Change % change
• DJIA 12282.93 +123.72 +1.02%
• NASDAQ 2366.17 +19.27 +0.82%
• S&P 500 1343.47 +10.22 +0.77%

[UpInArms]

60. 9:56 EST sucker rally ending early

Dow 12,234.16 74.95 (0.62%)
Nasdaq 2,359.13 12.23 (0.52%)
S&P 500 1,337.44 4.19 (0.31%)
10-Yr Bond 3.648% 0.008

NYSE Volume 785,935,375
Nasdaq Volume 424,130,437.5

[Hugin]

71. ~10:30 ET: Rally...

Index Last Change % change
• DJIA 12294.07 +134.86 +1.11%
• NASDAQ 2377.04 +30.14 +1.28%
• S&P 500 1346.06 +12.81 +0.96%

[UpInArms]

73. Rah Rah REBATE! Blather

10:30 am : Stocks climb to fresh highs and then pulls back. Treasury bonds are under some selling pressure this session, which follows their strong gains yesterday.

The White house said that Bush is going to talk about the size of economic stimulus package in his remarks at 11:50 ET, according to Reuters. Part of the President's will reportedly include tax rebates of as much as $800 for individuals and $1600 for couples. Yesterday, Fed Chairman Bernanke gave support for a fiscal stimulus package, as long is it is efficient, temporary and implemented quickly.DJ30 +132.36 NASDAQ +28.80 SP500 +11.43 NASDAQ Dec/Adv/Vol 1110/1538/600 mln NYSE Dec/Adv/Vol 1202/1624/493 mln

[Hugin]

82. ~11:00 ET: Rally slows...

Like a contestant on "America's Biggest Loser" pushing a wheel of cheese up Pike's Peak...

Index Last Change % change
• DJIA 12231.80 +72.59 +0.60%
• NASDAQ 2365.16 +18.26 +0.78%
• S&P 500 1337.91 +4.66 +0.35%

[Hugin]

84. ~11:15 ET: *gasp* *gasp* *wheeze*...

Index Last Change % change
• DJIA 12200.02 +40.81 +0.34%
• NASDAQ 2356.27 +9.37 +0.40%
• S&P 500 1332.24 -1.01 -0.08%

[JNelson6563]

87. Life boats are filling up fast!

[Hugin]

90. ~11:30 ET: Holding pattern...

:popcorn:

Index Last Change % change
• DJIA 12163.44 +4.23 +0.03%
• NASDAQ 2345.83 -1.07 -0.05%
• S&P 500 1327.17 -6.08 -0.46%

[JNelson6563]

105. 12:06 Getting ugly

Dow 12,087.76 -71.45 -0.59%

Nasdaq 2,337.35 -9.55 -0.41%

S&P 500 1,319.64 -13.61 -1.02%

10 Yr Bond(%) 3.6300% -0.0100

[spotbird]

88. 11:19 touches negative territory

then bounces back into the black.

[Hugin]

80. Note to self:

Never... NEVER... Do a Google Image Search© for 'sucker' at work. Oh, my... :blush:

[Roland99]

95. AH HA HA HA HA HA!! Try *this* one....

At work several years ago, I wanted to look up Dicks Sporting Goods for a home gym. Ummmm... let's just say I wasn't thinking when I Googled!!

[DemReadingDU]

97. I did the same thing

:rofl:

[Hugin]

98. ...

It was an educational experience... 8/

[DemReadingDU]

99. no kidding!

those sites should not appear unless you specify xxx
:P

[Hugin]

104. I concur...

:P

[RUMMYisFROSTED]

56. Ye Olde Piehole Pump in progress...

[JNelson6563]

65. Yea, empty Royal Promises no longer

pleaseth the rabble.

Julie

[AnneD]

81. Bread and Circuses....

Julie, bread and circuses :(

[spotbird]

93. He is pushing hard to make

the dissemination of the budget, er. tax cuts, permanent.

The economy is fundamentally strong, so this stimulus package will bring it back on track.

[Hugin]

94. "Yup, them fundamentals are real real strong..."

"Especially, that there... uh, um... In-flat-teeum. Heck of a job, Ben!"

[DemReadingDU]

68. Fleckenstein: How Greenspan's policies hurt you

1/17/08 Most Americans are likely to be worse off for years to come because of the bubbles created when the former chairman ran the Federal Reserve. by Bill Fleckenstein

<some snippets>

...consider how your own life has changed over the past few years. How have Greenspan's actions affected your stock portfolio, 401(k) or mortgage? Will you be better off for having lived through the Greenspan era, or will you be much poorer for having done so?

The truth is that the majority of Greenspan's decisions as Fed chairman from Aug. 11, 1987, to Jan. 31, 2006, were not beneficial to you, nor did they leave the country better off, despite Greenspan's glowing self-critique in his latest book, "The Age of Turbulence." In reality, the overwhelming majority of people in the United States will be worse off in the years ahead as a result of his stewardship.

Central bankers like Greenspan aren't bankers at all. Anyone who thinks a central bank such as the Federal Reserve performs any function remotely similar to those they've experienced in their local branch banks would be wrong. Central bankers are actually like the bureaucratic leaders of centrally planned, or command, economies. They pick an interest rate to within two decimal places that they guess will be the correct one, and then they proceed to cram it down the throat of the banking system.

It is oddly ironic that a small group like the Federal Open Market Committee, similar to those found at all levels of any former communist regime, would be in charge of the world's largest and most successful capitalist country -- that is, the United States of America and its $13 trillion economy.

Down through financial history, markets have intermittently gone to excess. Prices go to the sky and then fall through the floor. Human beings can't help themselves. But the bubbles in U.S. stocks and real estate didn't just happen. To a degree that the American public has not yet fully realized, these costly distortions were instigated and financed by the Federal Reserve -- Alan Greenspan's Federal Reserve.

more...
http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/HowGreenspansPoliciesHurtYou.aspx

[spotbird]

92. Pie hole alert, stocks in the red.

Bush is talking about giving money away to small businesses and consumers.

[UpInArms]

109. Bush says there is a risk of an economic downturn

10. Bush sees 'broad consensus' for economic stimulus package
11:37 AM ET, Jan 18, 2008 - 47 minutes ago

11. Bush calls for 'direct and rapid' tax relief
11:36 AM ET, Jan 18, 2008 - 48 minutes ago

12. Growth package should be about 1% of GDP: Bush
11:35 AM ET, Jan 18, 2008 - 49 minutes ago

13. Growth package must not include tax increases: Bush
11:35 AM ET, Jan 18, 2008 - 49 minutes ago

14. Bush: Administration expects economy to continue to grow
11:34 AM ET, Jan 18, 2008 - 50 minutes ago

15. Bush: There is risk of economic downturn
11:34 AM ET, Jan 18, 2008 - 50 minutes ago

16. Bush says there is a risk of an economic downturn
11:34 AM ET, Jan 18, 2008 - 50 minutes ago

[Roland99]

96. 11:51am - And DOWN he goes...

Dow 12,094.59 -64.62
Nasdaq 2,335.91 -10.99
S&P 500 1,318.96 -14.29
10 YR 3.63% -0.01
Oil $90.30 $0.17
Gold $880.50 $0.00

[Roland99]

101. and a a bit deeper....

Dow 12,063.70 -95.51
Nasdaq 2,333.24 -13.66
S&P 500 1,316.05 -17.20
10 YR 3.63% -0.01
Oil $90.55 $0.42
Gold $881.30 $0.80

[Hugin]

103. ~12 o'clock ET: Skids greased...

Index Last Change % change
• DJIA 12043.13 -116.08 -0.95%
• NASDAQ 2327.09 -19.81 -0.84%
• S&P 500 1313.84 -19.41 -1.46%

Lock your doors, kids.

[Hugin]

111. ~12:30 ET: Engage *cough* sucker *cough* rally...

Nasdaq 2,349.92 +3.02
Dow 12,140.84 -18.37
S&P 1,325.20 -8.05

[Barrett808]

140. Dead cat bounce. n/t

[Hugin]

142. That's exactly the phrase I was trying to remember...

Thanks.

[radfringe]

107. CHECK OUT REACTIONS TO BUSH'S PLAN

http://finance.google.com/group/google.finance.983582/topics

bwaahhhhaaahaaaa

few samples:

President Bush Plan
He is our superman to save the economy. God help us.
gmailing kevin - Jan 18, 12:02 pm - 3 new of 3 messages DOW JONES INDUSTRIAL AVERAGE INDEX

Bush wants to 'get ahead' of slowdown
Bush wants to 'get ahead' of slowdown. Is this a Joke? Isn't He all ready at least 6 months too late.
[e-mail] - Jan 18, 9:37 am - 5 new of 5 messages DOW JONES INDUSTRIAL AVERAGE INDEX

Recession Paranoia
The Economy Is Going To Crash Quick Now!
[e-mail] - Jan 18, 1:48 am - 4 new of 4 messages DOW JONES INDUSTRIAL AVERAGE INDEX


Stock Market crashing in slooooooow motion.
It's true. If you watch the stock market from day-to-day, you can see and feel it happening. Over the last 12 months the market has lost, at least, 15% if not more. Does anyone remember when the Dow went over 14000 for the first time? It seems like 10 years ago now. Unlike Black Monday and Black Tuesday, today we have safety valves in place to... more »
[e-mail] - Jan 17, 4:23 pm - 22 new of 22 messages DOW JONES INDUSTRIAL AVERAGE INDEX

[Hugin]

108. !

I'll say it again... "Heckuva job, Ben." :D

[UpInArms]

110. (actual headline) Market falls on White House plan disappointment

http://www.reuters.com/article/bondsNews/idUSN1832191820080118

NEW YORK, Jan 18 (Reuters) - U.S. stocks fell on Friday on concerns that a White House effort to boost the economy would not be enough to forestall a recession.

President George W. Bush called for a package of tax cuts and other measures totaling around $140 billion to shore up the fragile U.S. economy.

Amid bleak reports on retail sales and other data suggesting a possible recession, Bush and the Democratic-led Congress are negotiating to see if they can reach common ground on a plan to prop up growth.

Financial and telecommunications companies were among the top declining sectors on the S&P 500, wiping out earlier gains on optimism about earnings from bellwethers IBM (IBM.N: Quote, Profile, Research) and General Electric Co. (GE.N: Quote, Profile, Research).

"At first blush it appears it is a little less dramatic than people were hoping for," said Peter Kenny, managing director of Knight Equity Markets, Jersey City, New Jersey.

"Uncertainty is primarily the reason why the market has gone lower. The market is hoping for help both fiscally and monetarily that it can qualify as likely to have a real impact," he said.

...more...

What we need is a full reversal of all of *Cos economic policies. Then the economy would return. We need to stop outsourcing (dimson's - good for the economy - fallacy) and kick these criminals to the curb.

[Roland99]

117. Then the PPT came in and re-wrote it.

:eyes:

[UpInArms]

112. 12:35 EST all is good again (almost)!

Dow 12,175.71 16.50 (0.14%)
Nasdaq 2,353.11 6.21 (0.26%)
S&P 500 1,329.78 3.47 (0.26%)
10-Yr Bond 3.632% 0.008

NYSE Volume 3,121,407,500
Nasdaq Volume 1,592,519,125

[Hugin]

113. What does the electronic chatter say?

Any blather or are they all out to lunch?

[UpInArms]

118. chatter - *dimson disappoints - hahahaha

1:00 pm : Recovery efforts stall as the major indices fail to climb higher. The Nasdaq continues to hold a slight gain thanks to the outperformance of the tech sector (+1.1%).

Semiconductor company Advanced Micro Devices (AMD 7.00, +0.66) is posting a 10% gain after the company reported a smaller loss than expected. Revenue increased by 8% and gross margin improved by 8%.

Treasuries have pared a portion of their losses. The 10-year note is down 5 ticks, pushing its yield up to 3.64%.

DJ30 -27.64 NASDAQ +2.36 SP500 -7.68 NASDAQ Dec/Adv/Vol 1833/1090/1.66 bln NYSE Dec/Adv/Vol 1905/1167/1.27 bln

12:30 pm : For now, selling pressure eases, as the Nasdaq recovers into the green. The Dow and S&P are trading with a loss, but have recovered off their worst levels. Buying interest has been broad-based.

Treasury Secretary Paulson said the objective of the stimulus package is broad-based tax relief for those who are paying taxes, noting that it worked in 2001 and in 2003.DJ30 -18.37 NASDAQ +3.02 SP500 -7.54 NASDAQ Dec/Adv/Vol 1895/1017/1.48 bln NYSE Dec/Adv/Vol 2166/898/1.16 bln

12:05 pm : It has been a disappointing day on Wall Street, after the stock market fell into the red despite reassuring earnings reports from two Dow bellwethers. Once again, fear that the financial sector still has further to decline weighed on sentiment.

Stocks opened on a high note after General Electric (GE 34.41, +1.20) reported in-line fourth quarter earnings, with higher than expected revenue and strong total orders.

As pre-announced on Monday, IBM (IBM 103.10, +2.00) reported strong earnings that topped expectations. Its stock is trading 2% higher this session, after the company projected 2008 earnings would be approximately $8.20 to $8.30 per share, well above the analysts' estimate of $7.92 per share. The stock is up 5.6% since its pre-announcement on Monday.

Financials (-3.5%) once again weighed on sentiment, leading the stock market into the red around 11:00 ET.

Washington Mutual (WM 12.53, +0.07) reported a larger than expected fourth quarter loss as the mortgage crisis weighed on the company. The company expects further weakening in the housing market. Its stock is actually trading higher, presumably on speculation that the company will be a takeover target.

Fannie Mae (-31.36, -3.64) is being clipped after the being downgraded to Underperform from Equal weight at Morgan Stanley. Morgan Stanley also cut its rating on the U.S. mortgage and specialty finance sector to cautious from in-line, according to Reuters.

The struggling bond insurers are again in focus. MBIA (MBI 7.36, -1.86) announced its Aaa credit rating was placed under review for a possible downgrade at Moody's Investors Services yesterday.

Yesterday, Ambac (ABK 6.42, +0.18) got hammered after it announced its Aaa credit rating was placed under review for a possible downgrade. Today, it announced it no longer plans to raise $1 billion to shore up its capital position, citing current market conditions as one of the main reasons for the decision.

Ambak and MBIA were downgraded to Hold from Buy at Citibank and Neutral from Buy at Banc of America.

The worry is that if bond insurers lose their credit rating, the debt they insure would also get a lower credit rating. This would cause another wave of write-down from financial institutions.

Eight of the ten sectors are lower, led by declines in financials (-3.5%) and telecom (-6.4%). Sprint Nextel (S 8.45, -3.12) is weighing on telecom after reporting disappointing subscriber numbers and outlook, and announcing it is cutting 4000 jobs.

Bush talked about his economic stimulus package. He said it needs to be enacted as soon as possible, and should be 1% of GDP. The package would focus on tax relief and not government spending. It did little to help the market, as stocks fell to fresh lows after his speech.

On the economic front, leading indicators came in slightly lower than expected while the University of Michigan consumer sentiment beat expectations .DJ30 -90.80 NASDAQ -13.66 SP500 -15.87 NASDAQ Dec/Adv/Vol 1854/1017/1.27 bln NYSE Dec/Adv/Vol 1834/1199/991 mln

[Roland99]

126. I'd like to know the institutional (volume) trades in that rally

[NewYorkerfromMass]

130. Was yesterday' volume a recod?

I don't see a story anywhere. Anyways, whatever it was, today's will be higher- perhaps 5.4 billion shares on NYSE.

[Hugin]

135. Well, from what I can tell...

The rally volume was around 7.5 million (t/m) during the rally settling to around 3.5 million (t/m) afterward and
continuing until now on the Dow.

[NewYorkerfromMass]

137. No No No. TOTAL NYSE Volume

Yesterday's was 5.4 billion, Wednesday's was 5.3. Today we are definitely headed for well over 5 billion shares traded. Has there ever been 3 days in a row over 5?
I think we are seeing a very broad pull out from the market.
People need to cash in. Now.

[Hugin]

139. Oh, that's much easier to figure out...

But, the answer will have to wait until the NYSE closes.

Unless of course you have a crystal ball which is in working order. :)

[NewYorkerfromMass]

147. 4 billion shares at 2:06 PM

This one's in the bag. 5.5 billion today?
And the bad news is relentless. Today's retail report grim- worst in 17 years.
Decliners are 2-1 on both NASDAQ and NYSE.

[Ghost Dog]

166. I believe you're right there, volume-wise.

But will there also be a last-minute end-Friday bounce, with that added volume too?

ed: And therefore helping the over-the-weekend piehole-pumping looking to a jump on Monday???

[NewYorkerfromMass]

173. 5 billion at 3:26

Wow. I wonder if it's ever reached 5.5 billion?
Looks like it is happening today no matter.

[Ghost Dog]

180. 5,513,835,500 and counting...

(And correction about Monday (Martin Luther King Holiday). That's going to be bad for Asian markets probably...

[NewYorkerfromMass]

184. 5.8, nearly 5.9 billion A NEW RECORD!

Damn lot of selling going on.

[Ghost Dog]

188. 5,922,878,500 as data still being processed...

[Roland99]

189. NYSE only??

:wow:

[Ghost Dog]

194. Well, by pure coincidence I've just now seen NYSE volume tick up to 6,004,842,500

(numbers are still settling at this source: http://finance.yahoo.com/marketupdate/overview )

[Ghost Dog]

199. Volume Numbers may have nearly settled now thusly:

NYSE Volume 6,013,867,000
Nasdaq Volume 3,016,685,250

[Roland99]

114. Can't have that 12K level in play just yet

[Hugin]

115. Psychologically important barrier...

Nope... Ain't gonna do it.

[UpInArms]

123. (another great headline) TREASURIES-Short bonds rise as Bush plan given thumbs down

TREASURIES-Short bonds rise as Bush plan given thumbs down

--------------MARKET SNAPSHOT AT    1735    GMT ------------------
Mar T-Bond USH8          119-21/32        (-14/32)                  
Mar 10-Year note TYH8    116-21/32        (+03/32)              
                                     Change vs                Current
                                       Nyk                      yield
Three-month bills<US3MT=RR>    2.79     (-0.14)                    2.850
Six-month bills  <US6MT=RR>    2.77     (-0.10)                    2.855
Two-year note <US2YT=RR>     101-21/32  (+03/32)                   2.367
Five-year note <US5YT=RR>    103-16/32  (+02/32)                   2.863
10-year note  <US10YT=RR>    104-29/32  (-05/32)                   3.650
30-year bond  <US30YT=RR>    111-20/32  (-24/32)                   4.298

I hope they tie this plan around his neck like an albatross and the piece of shit goes down in flames with what was our economy - he killed and he should wear it.

[Hugin]

129. I would agree with you...

Except there's a lingering thought in my mind that the ultimate goal of all of these fiscal shenanigans
is to privatize Social Security.

I base my suspicions on a few of the articles here in SMW over the past few weeks about the strange goings
on at Moody's and Chopper Ben and dimson's certainty of the amount needed for the 'bailout'.

[burf]

148. Prag, I think that is only part

of it. The plan is not only to dump Social Security, but all the social programs i.e. Medicare, Medicaid, Heating assistance, you name it. It is a prime opportunity for the Grover Norquist wing to implement their plan, drown government in the bathtub.

The other day I heard Fred Thompson talking about the economy and he doesn't seem to support any real government intervention. But of course the Reagan legacy came up and with it the mantra if tax cuts. From what I've been hearing, Fred is starting to get some support and will probably do ok in South Carolina.

[Hugin]

156. What makes it even more dire...

Is that it may be their last opportunity (If I and quite a few like me, have anything to say about it.)

Which will make their efforts all that much more frantic and dangerous.

Serious times... Very serious.

Thanks for taking the time to discuss this, burf.

[Roland99]

144. Right now at MarketWatch.com - Bush Stimulates Bears

:rofl:

[kineneb]

146. George, that's obscene! Stop it!

:evilgrin:

[Roland99]

159. Stephen Colbert must be none too pleased either. Cuz.....

Bears are America's #1 enemy!! :-)

[Ghost Dog]

167. The mind boggles.

Um. Google images, no. :smoke:

[Lasher]

125. S&P 500 now lower than it was when Junior took office 7 years ago.

January 22, 2001:  1,342.90

Now:               1,326.45

Average annual gain during the past 7 years:     2.73%

Clinton:                                        15.86%

Average all presidents Carter through Clinton:  11.86%

I wonder how far back you would have to go to find a president who had a net market loss during their time in office? Looks like there's a good chance Junior could end up with exactly that.

[Dancing_Dave]

131. And think how much less that money is worth now!

A lot of people who thought they could beat inflation with a 401k are losing their shirts.

[Lasher]

133. But inflation remains low!

If you don't ever spend money on energy or food, that is. And if you ignore the fall of the US dollar against other currencies. And if you ignore everybody else except Larry Kudlow.

[MilesColtrane]

134. I believe the last one was Nixon.

Before that, Hoover...

Nice company.

[Lasher]

192. OK maybe I'll investigate that the next time I dust off my spreadsheet. n/t

[Roland99]

145. 2:03pm - Ayup...still bearish.

Dow 12,084.99 -74.22
Nasdaq 2,341.25 -5.65
S&P 500 1,321.80 -11.45
10 YR 3.65% 0.01
Oil $90.17 $0.04
Gold $881.60 $1.10

[citizen snips]

149. Schlumberger 4Q Profit Up, Disappoints

HOUSTON (AP) -- Oilfield services provider Schlumberger Ltd. opened the earnings season for oil-sector companies Friday, reporting a 22 percent rise in fourth-quarter profit but failing to meet Wall Street expectations.

Its share price tumbled 8 percent by midafternoon, continuing a recent trend that has sent the stock down more than 20 percent since the start of the year.

Fourth-quarter results were driven by demand in the Eastern Hemisphere and Latin America, but North American profits disappointed.

What's more, Schlumberger chairman and chief executive Andrew Gould gave a cautious near-term outlook, and analysts said the news doesn't bode well for others in the services sector.

more...
http://biz.yahoo.com/ap/080118/earns_schlumberger.html

[citizen snips]

150. GE 4Q Profit Rises 4 Pct, Orders Up

HARTFORD, Conn. (AP) -- General Electric Co. delivered some cheer Friday to investors worried about a slowing economy, saying its quarterly profit rose 4 percent and reaffirming its outlook for 2008.

Net income rose to $6.7 billion, or 66 cents a share, in the fourth-quarter ended Dec. 31, from $6.44 billion, or 62 cents a year earlier. Earnings from continuing operations climbed to 68 cents a share in the latest period, from 58 cents in the prior-year quarter.

Revenue jumped 18 percent, to nearly $48.6 billion. The company said more than half of its revenue is from outside the U.S., helping to shield GE from the full effect of a possible U.S. recession.

"Everything came in pretty much as expected," said Eric Boyce, portfolio manager at Hester Capital Management in Austin, Texas. "Investors are looking for some lifelines. They want to see a large multinational blue chip company come out and say things are not so bad and GE did that this morning."

more...
http://biz.yahoo.com/ap/080118/earns_general_electric.html

[Ghost Dog]

168. Yeah GE must still be manufacturing and selling/exporting plenty of stuff.

One on my list for when there's finally a long-term bottom in place.

[citizen snips]

169. GE is also subsidized by the government.

[Ghost Dog]

176. Noted. European-style, huh. n/t

[citizen snips]

151. Sector Snap: Airline Stocks Fall on Oil

NEW YORK (AP) -- Airline stocks declined Friday as Continental Airlines Inc.'s upbeat earnings report failed to offset the effect of higher oil prices.

The Amex Airline Index fell half a percent to 32.68 as light, sweet crude oil for February delivery rose 69 cents to $90.82 a barrel on the New York Mercantile Exchange. Fuel is one of the airline industry's highest costs and surging fuel prices have placed pressure on airline stocks in recent months.

Continental shares fell 59 cents, or 2.4 percent, to $24 despite its report that rising fares helped push the carrier to a pretax profit in the fourth quarter -- despite higher fuel costs. Continental didn't give a net income figure and delayed reporting its final results while it calculates an accounting charge.

Goldman Sachs analyst Robert Barry said Friday in a client note the Houston-based airline worked to maintain non-fuel operating costs and focused on higher-fare transcontinental flights to boost profit margins. However, he maintained a "Neutral" rating on Continental's stock, saying he preferred "Buy"-rated Delta Air Lines Inc. and UAL Corp.

more...
http://biz.yahoo.com/ap/080118/apfn_airline_stocks_sector_snap.html

[citizen snips]

152. Sector Snap: Semiconductors Up

NEW YORK (AP) -- Many chip stocks rose sharply Friday, after Advanced Micro Devices Inc. reported better-than-expected fourth-quarter results.

Shares of AMD rose 71 cents, or 11.2 percent, to $7.05 in afternoon trading. The second-largest chip maker behind Intel Corp. late Thursday reported a narrower quarterly loss, excluding a $1.61 billion impairment charge for overspending on its 2006 acquisition of graphics chip maker ATI Technologies Inc.

Stifel Nicolaus analyst Cody Acree said in a note to investors that AMD's results appear to show that the personal computer chip market is healthy after Intel's disappointing results reported earlier this week raised some doubts.

Intel shares lost 23 cents to $19.11 in Friday afternoon trading.

more...
http://biz.yahoo.com/ap/080118/semiconductors_sector_snap.html?.v=1

[citizen snips]

154. Sector Snap: Ethanol Shares Mostly Fall

NEW YORK (AP) -- Ethanol stocks mostly fell Friday after BioFuel Energy Corp. reported delays in the start up of its first two ethanol plants and investors remained concerned about the sector's near-term outlook.

Profits at producers of corn-based ethanol have come under stress, as commodity costs surged and ethanol prices became depressed because the sector expanded production too rapidly. Margins have increased recently as ethanol prices improved, though there are still concerns that tight corn supplies will support prices for the alternative fuel's main feedstock.

BioFuel's stock fell 24 cents, or 3.6 percent, to $6.42 after the company said late Thursday that construction problems would delay its plant startups by about three months.

Citigroup analyst David Driscoll said the delay does not have a material effect on his outlook for the company. He reiterated a "Buy" rating on BioFuel's shares in a note Thursday.

more...
http://biz.yahoo.com/ap/080118/ethanol_stocks_sector_snap.html?.v=1

[citizen snips]

155. Sector Snap: REITs Down on Analyst Note

NEW YORK (AP) -- Shares of major real estate investment trusts declined Friday after KeyBanc Capital Markets analysts said they expect a slowing economy and tight credit conditions to weigh on growth expectations for most REIT groups.

In a client note, analyst Dennis I. Forst maintained his "neutral" outlook on lodging REITs "due to our fear of the psychological and financial impact that the sluggish economy and prolonged slowdown of the market would have."

However, Forst kept his "Buy" rating on Ashford Hospitality Trust Inc., saying the integration of assets from the CNL purchase last year is "moving along smoothly." Ashford's shares lost 27 cents, or 4.8 percent, to $5.38. Other lodging REIT stocks also trended downward in trading.

Meanwhile, KeyBanc analyst Jordan Sadler expects apartment REITs to suffer from slowing rent growth amid an increasing supply of so-called "shadow" rentals and an uptick in unemployment. Shadow rentals are for-sale homes and condos that owners can't sell and put on the rental market.

more...
http://biz.yahoo.com/ap/080118/reits_sector_snap.html?.v=1

[citizen snips]

157. Sector Snap: Homebuilders Slip

NEW YORK (AP) -- Housing stocks sputtered Friday, with a quartet of builders leading the laggards after having their ratings cut further into "junk" status by Standard & Poor's.

Standard Pacific fell 10 cents to $1.96; Meritage Homes Corp. plunged 41 cents to $8; Hovnanian Enterprises Corp. slid 13 cents to $6.42; and M/I Homes Inc. fell 30 cents to $9.13.

Each suffered a ratings downgrade late Thursday, primarily on concerns that none will be able to post a profit on homebuilding operations in the current fiscal year.

Nearly all homebuilders have booked losses in recent quarters as the housing sector crashed from its peak in mid-2005. The losses were caused by deep write-downs on depreciating assets such as unsold homes and undeveloped land. But many were able to book profits from operations even though sales were slipping.

more...
http://biz.yahoo.com/ap/080118/homebuilders_sector_snap.html?.v=1

[citizen snips]

158. Bulgaria, Russia Sign Pipeline Deal

SOFIA, Bulgaria (AP) -- Russian President Vladimir Putin moved to redraw Europe's energy map on Friday, winning Bulgaria's support for an ambitious gas pipeline that would boost Moscow's control over supplies to the West.

Putin cut the deal during a trip to the Bulgarian capital with the help of his presumed successor, Dmitry Medvedev, who chairs the Russian state-controlled gas monopoly that is extending its grip across Europe.

The 550-mile South Stream pipeline would run under the Black Sea from Russia to Bulgaria, where it could branch off in several directions. The project undercuts the prospective US- and EU-backed Nabucco pipeline designed to ease Europe's reliance on Russia.

Putin brushed off European concerns about Russia's increasing energy clout, saying that South Stream would "seriously increase the energy security of the Balkans, Europe as a whole and, of course, Bulgaria."

more...
http://biz.yahoo.com/ap/080118/bulgaria_putin.html?.v=2

[citizen snips]

160. EU Confident of Steady Growth

NICOSIA, Cyprus (AP) -- The European Union remains upbeat about growth in 2008 despite concerns over repercussions from the U.S. subprime market crisis, European Commission President Jose Manuel Barroso said Friday.

"There are some concerns about the possible impact of the subprime problems in the United States on our economy, but I want to underline (that) the fundamentals, the basic principles of the European economy remain sound," Barroso said.

Barroso said the EU is not ready to revise growth projections at this time given "positive" economic trends, especially in eurozone exports and employment figures.

Speaking at a joint news conference with Cypriot President Tassos Papadopoulos, Barroso said the euro is contributing to growth by acting as a buffer against the adverse impact of the subprime meltdown.

more...
http://biz.yahoo.com/ap/080118/cyprus_eu_barroso.html?.v=1

[citizen snips]

162. UBS to Revamp Investment Banking

GENEVA (AP) -- UBS AG, shaken by the subprime crisis in the United States, will close its principal finance unit in the United States and take other measures to revamp its investment bank, according to an internal company memo obtained Friday.

A UBS spokeswoman declined to say how many people work for the unit, which handles proprietary trading for the company's own accounts, or where its offices are located. The memo sent to employees said other units to be affected by the new measures included commodities and real estate.

UBS, the largest Swiss bank, has said in October that it planned to cut 1,500 jobs, mainly outside Switzerland. Some 1,400 of these have already been completed, officials said. But they said further job cuts resulting from the new measures could not be excluded.

The Zurich-based bank, which wrote down 16 billion Swiss francs ($14 billion) in the second half of 2007, will reposition its real estate and securitization business, Chief Executive Marcel Rohner said in the memo.

[Roland99]

164. 2:47pm - Nearing the 12k level yet again...

Dow 12,043.13 -116.08
Nasdaq 2,330.13 -16.77
S&P 500 1,317.29 -15.96
10 YR 3.65% 0.01
Oil $90.14 $0.01
Gold $881.60 $1.10

[AnneD]

175. WOW....

I'll have to buff my crystal ball for next week.

[Roland99]

179. PPT sticking it to the bears at the end.

[AnneD]

181. They can prop it up all they want....

but fundamentals are weak and we are testing the bottom in a big way. Who really wants to buy into this market right now. I have money, but you don't see me putting my money in or encouraging folks to jump in. We are overdue a major correction, and I think this is it.

[Demeter]

190. This is Only The First Step on the Basement Stairs

The bottom is down around 7000. Assuming no more significant inflation of the money supply.

[Roland99]

191. My 'gut feel' worst-case is around 7,500-7,800

And I'm beginning to think that will happen...I've been expecting this downfall for about 4 years...saw the writing on the wall back then, esp. related to sub-prime. When I knew *I* was a candidate for a 100% mortgage 1yr outta Ch7, I knew something was wrong.

[Ghost Dog]

174. Hey AnneD, Ozy, anyone: there's a question in the bond insurers thread

maybe someone over there could help out a little with?

Viz: "Can someone explain to some of us laypersons

what this will mean for us?"

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x3145394#3145971

[ozymandius]

201. Atrios has something to say about this... I think.

The answer is, unfortunately, speculative because (your city here) has sold muni bonds insured with (their bond agency here). Here's Atrios' clip:

Essentially this would mean that those who bought insurance would fork over money to the insurance company to maintain the fiction that they're actually insured.

It's akin to bailing water from the port side of the boat to the starboard side in an attempt to prevent it from sinking.

http://atrios.blogspot.com/2008_01_13_archive.html#6724074753007968179

[ozymandius]

202. And then there's this bit I found from FT via Naked Capitalism.

Fears that the credit crunch might be entering a traumatic new phase grew on Thursday as investors lost confidence in the insurers that guarantee payments on billions of dollars in bonds.

Shares in Ambac Financial and MBIA, the world’s biggest bond insurers, fell 52 per cent and 31 per cent, respectively, as Moody’s Investors’ Service raised the possibility that both might lose the triple-A credit rating on which they depend.

The sector was dealt another blow when Merrill Lynch said it was writing down $3.1bn in hedges with bond insurers, mostly with ACA Capital, a guarantor that has lost its investment-grade rating and needs to raise $1.7bn by on Friday to avoid insolvency.

The triple-A credit rating of the bigger bond insurers is crucial because any demotion could lead to downgrades of the $2,400bn of municipal and structured bonds they guarantee.

This could force banks to increase the amount of capital held against bonds and hedges with bond insurers – a worrying prospect at a time when lenders such as Citigroup and Merrill are scrambling to raise capital.

http://www.nakedcapitalism.com/2008/01/wsj-and-ft-on-how-far-down-is-down.html

The phrase "belly up" comes to mind.

[DemReadingDU]

204. good find, check out the last paragraph

Jamie Dimon, chief executive of JPMorgan, said this week when asked about bond insurers: “What is if one of these entities doesn’t make it . . . the secondary effect . . . I think could be pretty terrible.”

http://www.nakedcapitalism.com/2008/01/wsj-and-ft-on-how-far-down-is-down.html


yep - "belly up". This is really serious, and yet the majority of people have no clue. Even my sister had not heard that the stock market tanked after Bush spewed out his 'stimulus' package. I think she relies too much on her professional 'financial adviser'.

[Ghost Dog]

178. Heading up now I guess...

Let's see...

[Ghost Dog]

183. I'm seeing it now: that's downward momemtum at the close

on the Dow.

[Roland99]

182. PPT (?) fighting like mad to maintain 12,100 at the close

[Roland99]

185. And it fails!

Dow 12,099.30 -59.91
Nasdaq 2,340.02 -6.88
S&P 500 1,325.19 -8.06
10 YR 3.65% 0.01
Oil $90.57 $0.44
Gold $881.60 $1.10

[UpInArms]

193. a snide side of blather - no news catalyst to the drop in the markets (what happened to Dimson?)

4:25 pm : It was another exhausting day of trading on Friday as the major indices moved in wide ranges, driven sharply higher at the open by reassuring earnings news from General Electric (GE 34.31, +1.10) and IBM (IBM 103.40, +2.30), and then surrendering all of those gains and then some in a mid-morning selloff that lacked a specific news catalyst.

In essence, it was more of the same as concerns about a possible recession and the troubled state of bond insurers Ambac Financial (ABK 6.20, -0.04) and MBIA (MBI 8.55, -0.67) continued to weigh on sentiment and canceled the rally effort.

For the Dow, Nasdaq and S&P 500, the intraday swings between their high and low point were 318, 61, and 28 points, respectively. Volume was very heavy once again, bolstered in part by the monthly expiration of stock options and index options.

Although the major indices ended the day in negative territory, both GE and IBM closed the session higher. In the face of some dour reports on the U.S. economy, investors were heartened that GE reaffirmed its 2008 EPS growth target of at least 10% and that IBM's 2008 EPS growth guidance of 15% to 16% exceeded consensus expectations.

Their strength helped limit the losses in the broader market, but a 25% decline in Sprint Nextel (S 8.70, -2.87), which followed a wireless subscriber report that triggered concerns about a material loss of market share and fueled a 5.2% decline in the telecom services sector, was certainly a key drag.

The same can be said for the health care sector, which continued its underperformance, losing 1.6%. The financial sector, though, remained the key pocket of weakness as it declined 1.7% on continued concerns that the bond insurers will lose their Triple A rating and perhaps trigger a dislocation in the municipal bond market and another chain reaction of write-downs in the financial sector.

On a related note, Fitch cut its rating on Ambac Financial and its affiliated entities. Specifically, it cut its Insurer financial strength rating to 'AA' from 'AAA' and its Long-term rating to 'A' from 'AA.' The move was widely anticipated after Ambac abandoned a plan to raise new capital.

In other developments, President Bush spoke about instituting a fiscal stimulus package that is built on broad-based tax relief and amounts to roughly 1.0% of GDP, which puts it in the neighborhood of $140 billion. The president didn't provide any specific details on how the plan would actually be carried out, noting that he has charged Treasury Secretary Paulson to be his point person in working on the details with Congress.

The lack of details at this juncture left the market somewhat circumspect, so the news about the potential for a fiscal stimulus package being implemented didn't have much beneficial impact for the market. Similarly, neither did a report that consumer sentiment, as measured by the Univ. of Michigan, picked up surprisingly in January to 80.5 from 75.5.

The Leading Indicators report was also released today and showed a decline of 0.2%. That marked the third consecutive decline, a signal some pundits believe is a harbinger of an impending recession. Currently, Briefing.com continues to think the economy will avert a recession.

For the week, the Dow, Nasdaq and S&P 500 dropped 4.0%, 4.1% and 5.4%, respectively.DJ30 -59.91 NASDAQ -6.88 SP500 -8.06 NASDAQ Dec/Adv/Vol 1924/1102/2.99 bln NYSE Dec/Adv/Vol 2029/1132/2.45 bln

3:30 pm : A recovery effot was short-lived as the major indices fall back toward their session lows. Tech (+0.1%) has given up almost all of its intraday gains.

As we head into the final half-hour of trading, the stock market is poised to end the week sharply lower. The Dow, Nasdaq and S&P 500 are down 4.4%, 4.3% and 5.8%, respectively, this week. All sectors are set to finish lower. Telecom (-9.2%), energy (-8.9%) and financials (-8.4%) were hit the hardest. Consumer discretionary (-2.2%) is set to post the smallest loss.

Looking to next week, the U.S. stock and bond markets will be closed on Monday in observance of Martin Luther King Jr. Day. Earnings season gets into full gear with 85 S&P 500 companies set to report.DJ30 -110.20 NASDAQ -13.41 SP500 -14.56 NASDAQ Dec/Adv/Vol 1942/1062/2.45 bln NYSE Dec/Adv/Vol 2079/1055/1.89 bln

[citizen snips]

186. Metals at a Glance

NEW YORK (AP) -- The following are key metals settlement prices Friday, compared with late Thursday, on the New York Mercantile Exchange:

February gold $881.70, up $1.20 an ounce

March silver $16.215, up 20.5 cents an ounce

March copper $3.2345, up 5.25 cents a pound

http://biz.yahoo.com/ap/080118/metals_glance.html?.v=1

[citizen snips]

187. Sector Glance: Precious Metals Producers

NEW YORK (AP) -- Shares of precious metals producers were mixed in Friday trading, after gold prices tried to regain lost ground following a sharp drop earlier in the week from an all-time high.

An ounce of gold for February delivery rose $1.20 to settle at $881.70 on the New York Mercantile Exchange. The precious metal hit an all-time high of $916.10 earlier this week on speculation that the Federal Reserve will lower interest rates, which boosted demand for the metal as a hedge against inflation.

The metal dropped Friday to $881.30, its lowest level all week, as traders cashed in on profits and the market digested sizable redemptions from exchange-traded funds that track gold.

March silver rose 20.5 cents to $16.215 an ounce.

more...
http://biz.yahoo.com/ap/080118/precious_metals_sector_glance.html?.v=1

[Ghost Dog]

195. Closing blather

http://finance.yahoo.com/marketupdate/overview

4:25 pm : It was another exhausting day of trading on Friday as the major indices moved in wide ranges, driven sharply higher at the open by reassuring earnings news from General Electric (GE 34.31, +1.10) and IBM (IBM 103.40, +2.30), and then surrendering all of those gains and then some in a mid-morning selloff that lacked a specific news catalyst.

In essence, it was more of the same as concerns about a possible recession and the troubled state of bond insurers Ambac Financial (ABK 6.20, -0.04) and MBIA (MBI 8.55, -0.67) continued to weigh on sentiment and canceled the rally effort.

For the Dow, Nasdaq and S&P 500, the intraday swings between their high and low point were 318, 61, and 28 points, respectively. Volume was very heavy once again, bolstered in part by the monthly expiration of stock options and index options.

Although the major indices ended the day in negative territory, both GE and IBM closed the session higher. In the face of some dour reports on the U.S. economy, investors were heartened that GE reaffirmed its 2008 EPS growth target of at least 10% and that IBM's 2008 EPS growth guidance of 15% to 16% exceeded consensus expectations.

Their strength helped limit the losses in the broader market, but a 25% decline in Sprint Nextel (S 8.70, -2.87), which followed a wireless subscriber report that triggered concerns about a material loss of market share and fueled a 5.2% decline in the telecom services sector, was certainly a key drag.

The same can be said for the health care sector, which continued its underperformance, losing 1.6%. The financial sector, though, remained the key pocket of weakness as it declined 1.7% on continued concerns that the bond insurers will lose their Triple A rating and perhaps trigger a dislocation in the municipal bond market and another chain reaction of write-downs in the financial sector.

On a related note, Fitch cut its rating on Ambac Financial and its affiliated entities. Specifically, it cut its Insurer financial strength rating to 'AA' from 'AAA' and its Long-term rating to 'A' from 'AA.' The move was widely anticipated after Ambac abandoned a plan to raise new capital.

In other developments, President Bush spoke about instituting a fiscal stimulus package that is built on broad-based tax relief and amounts to roughly 1.0% of GDP, which puts it in the neighborhood of $140 billion. The president didn't provide any specific details on how the plan would actually be carried out, noting that he has charged Treasury Secretary Paulson to be his point person in working on the details with Congress.

The lack of details at this juncture left the market somewhat circumspect, so the news about the potential for a fiscal stimulus package being implemented didn't have much beneficial impact for the market. Similarly, neither did a report that consumer sentiment, as measured by the Univ. of Michigan, picked up surprisingly in January to 80.5 from 75.5.

The Leading Indicators report was also released today and showed a decline of 0.2%. That marked the third consecutive decline, a signal some pundits believe is a harbinger of an impending recession. Currently, Briefing.com continues to think the economy will avert a recession.

For the week, the Dow, Nasdaq and S&P 500 dropped 4.0%, 4.1% and 5.4%, respectively.DJ30 -59.91 NASDAQ -6.88 SP500 -8.06 NASDAQ Dec/Adv/Vol 1924/1102/2.99 bln NYSE Dec/Adv/Vol 2029/1132/2.45 bln

[Roland99]

198. The shit hath finally hitteth the fan.

:scared:

[UpInArms]

200. wouldn'teth that'eth be-eth fan-eth?

:hi:

[Roland99]

203. perhaps'th.

:D