STOCK MARKET WATCH, Thursday 19 May

[ozymandius]

Thursday May 19, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 247 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 4 YEARS, 151 DAYS
WHERE'S OSAMA BIN-LADEN? 3 YEARS, 214 DAYS
DAYS SINCE ENRON COLLAPSE = 1271
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 2
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

AT THE CLOSING BELL ON May 18, 2005

Dow... 10,464.45 +132.57 (+1.28%)
Nasdaq... 2,030.65 +26.50 (+1.32%)
S&P 500... 1,185.56 +11.76 (+1.00%)
10-Yr Bond... 4.07% -0.05 (-1.19%)
Gold future... 421.90 +2.10 (+0.50%)

GOLD, EURO, YEN, Dollars and Loonie




PIEHOLE ALERT

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

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Mike Hartman

BATTLEGROUND: PAPER VERSUS THINGS

Early this morning the Labor Department said U.S. consumer prices rose 0.5% with the consensus expecting a gain of 0.4%. The headline number came in slightly above expectations, but the markets reacted more to the core-rate of inflation excluding food and energy. Expectations called for the core-rate to show an increase of 0.2%, but instead, there was no increase. Stocks and bonds both rallied on the news and the dollar slid lower, but the dollar decline was held in check with the U.S. Dollar Index just dipping the 86 level for a brief period, but for now the dollar index is holding 86. What we are witnessing is an all out effort to support the paper asset items of the U.S. dollar, U.S. stocks (especially the Dow Industrials) and U.S. Treasury bonds. While the paper is being pumped higher, tangible items (commodities such as oil, copper and steel) are being talked down with the Wall Street bulls claiming the bull market for commodities is over. The bull market for commodities is NOT over and the demand for U.S. debt paper (and probably U.S. stocks) is declining globally.

The second pleasant surprise for the Wall Street bulls came from the Energy Department when they announced a much bigger than expected build in crude oil inventories. Expectations called for a gain of 500,000 to a million barrels, but the government said crude stocks grew by 4.3 million barrels. The API reported a build of 2.5 million barrels, smaller than the government’s number but clearly building inventory. Crude inventories have moved higher 13 out of the last 14 weeks to 334 million barrels, which is at the higher end of the averages for this time of year. While 334 million barrels sounds like a lot of oil, I believe it represents only about 25 days of supply, therefore we will continue purchasing crude. The market is expected to move toward $45 a barrel, but with solid demand, any supply disruptions will move the price swiftly higher.

-cut-

“NOW IS THE TIME”

Treasury Secretary John Snow came out Monday and explicitly stated, “Now is the time” for China to revalue the yuan. What he was really trying to say to China is…Now is the time we need to devalue the U.S. dollar! Now is the time we need to pay back our debts with cheaper dollars. Now is the time we need to slow down the American consumer by raising import prices. As we devalue the dollar, a pegged yuan just brings deflation back to the United States in the form of consumer goods. We export jobs and debt to China in exchange for more fun stuff we can buy at Wal-Mart.

-cut-

Commodities and the Dollar

We are not going to see an end to the bull market in commodities for quite a few more years. Developing nations are just now getting a taste of the good life. With China’s manufacturing growth at 16% there is a tremendous amount of momentum in their economic growth. The same is true for India, Indonesia, some South American countries and many more. The growing demand for commodities is a GLOBAL EVENT. What we have been watching the last few weeks with commodity prices coming down has more to do with the recent dollar rally. As the dollar rallies and foreign currencies decline, commodity prices outside the U.S. don’t come down as fast as they do in U.S. dollar terms. The dollar has strengthened and therefore some commodity prices have declined. We haven’t had a sudden drop in commodity demand and we haven’t heard of any huge commodity discoveries that will increase supply. Fundamentally nothing has changed with commodities…what we are seeing is a battle royal in the currency pits!

more...

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

[UpInArms]

2. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DXY0

Last trade 86.00 Change +0.18 (+0.21%)

Forex -Dollar mixed in late Asia; HKMA move seen as prelude to yuan adjustment

http://www.forbes.com/markets/feeds/afx/2005/05/19/afx2039068.html

SINGAPORE (AFX) - The US dollar was up against the yen but almost flat on the euro near the end of the Asian session, where the focus was largely on last night's move by the Hong Kong Monetary Authority to widen the Hong Kong dollar trading band, dealers said.

The HKMA made the announcement after Asian markets had closed yesterday, initially sparking a dollar retreat in the pre-US trading hours, on speculation the move could be a precursor to an impending revaluation of China's yuan.

But the dollar regained some ground in Asia amid some concerns that more Asian central banks will also follow the HKMA to try and put a stop to speculative plays on their currencies as proxies for a yuan revaluation.

<snip>

UBS AG currency strategist Bhanu Baweja wrote in an early note that the HKMA decision could remove Hong Kong dollar forwards as a proxy for China yuan revaluation plays and shift that pressure to other Asian currencies, like yen, Korean won and Taiwan dollar.

Still, the move did not mean the currency board is about to be dismantled as the HKMA will likely keep the rate 'quite close' to the 7.8 center of the band, Baweja says.

...more...

Hong Kong and South Korea Pave The Way For Chinese Revaluation

http://www.dailyfx.com/index.php?option=com_content&task=view&id=1142&Itemid=39

US Dollar

Today’s much-anticipated consumer price inflation data let us in on one key thing – which is that producers have had some success passing over the higher energy prices to consumers, but that was it. Consumer prices excluding food and energy remained flat since March, which compares to the 0.2% growth in core producer prices for the same period. This is the first time since November 2003 that inflation failed to increase. The annualized pace of core inflation growth also dipped lower for the second consecutive month. Given that core consumer prices is one of the Federal Reserve’s favorite barometers for inflation, the latest releases adds to the mix of contradictory economic data that we have seen over the past few weeks. How much longer the Federal Reserve will raise rates still remains a big question in the markets and this answer alone will hold the fate for the US dollar in the months to come. The benign core inflation data takes a 50bp rate hike completely off the table. Even though we never believed that a half point was a possibility, some extreme optimists circulated the rumor following the most recent strong non-farm payrolls report. With inflation tamed for the time being and the Philly Fed survey being the only notable US economic release left on the calendar, the US dollar’s extensive rally should continue to show signs of exhaustion.

<snip>

Japanese Yen

The dollar gave back yesterday’s gains against the Japanese yen following the Hong Kong Monetary Authority’s announcement of their plans to widen the USDHKD trading band to HK$7.75 – HK$7.85 from the 20 year old fixed peg of $7.80. This would allow for a half of a percent of appreciation in the Hong Kong dollar, which they said was done to bring HK interest rates more in line with US interest rates. The problem in HK is that speculative money has flooded into the country as a measure of betting on Chinese revaluation. As a result, the cash balance of the local banking system has surged, forcing HK interest rates lower in face of higher US interest rates. The appreciation is nominal but symbolically important. It has also fueled massive speculation that this may be a preliminary step to China’s revaluation. The Hong Kong government of course has denied that this is in anyway tied to China’s intentions. Meanwhile, South Korea also announced that they do not plan on accumulating any more foreign reserves and will not intervene any further in the foreign exchange markets because they believe that they have “sufficient reserves to secure” their “sovereign credibility.” It appears that the Asian nations are paving the way for China’s revaluation, allowing them to be perceived as the last to revalue because revaluation is becoming a trend for the region rather than appearing as if they are succumbing to international pressure.

...more...

Here's an interesting little sidenote:

7:55am 05/19/05 SENATE PANEL POSTPONES BERNANKE CONFIRMATION HEARING

It's MaeveDay! Have a Great Day Marketeers!

[UpInArms]

9. China central bank to hike interest on US, HK dollar deposits

http://futures.fxstreet.com/Futures/news/afx/singleNew.asp?menu=economicnews&pv_noticia=1116499151-c84d0f08-22939

BEIJING (AFX) - The People's Bank of China, the central bank, said it will raise interest on one-year US dollar fixed deposits by 25 basis points to 1.125 pct, effective tomorrow

In a statement on its website, the central bank also said it will hike the one-year Hong Kong dollar deposit rate by 18.75 basis points to one pct

The central bank did not give any reason for the interest rate rise

But the move will raise the attractiveness of US and Hong Kong dollar-denominated deposits as Beijing struggles to discourage speculation over a yuan revaluation

"That's certainly going to be a help in reducing pressure in the market," said Citigroup economist Yiping Huang

<snip>

The changes in interest paid on deposits in the mainland's banking system apply only to small deposits in foreign currency, namely less than three mln usd

...more...

[UpInArms]

3. Today's Reports:

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

May 19	8:30 AM		Initial Claims		05/14	-	325K	330K	340K	-	
May 19	10:00 AM	Leading Indicators	Apr	-	-0.2%	-0.2%	-0.4%	-	
May 19	12:00 PM	Philadelphia Fed	May	-	12.0	18.0	25.3	-

[UpInArms]

11. U.S. initial jobless claims fall 20,000 to 321,000

http://www.marketwatch.com/news/newsfinder/pulseone.asp?siteid=mktw&guid=%7B29DB6303-87CC-4C0E-8A22-353600331D23%7D&

WASHINGTON (MarketWatch) - Initial claims for state unemployment benefits fell 20,000 to 321,000 in the week ended May 14, the Labor Department said Thursday. The department could identify no special factors behind the decrease. Economists were expecting only a drop in initial claims to about 331,000. The four-week moving average of new claims rose by 5,500 to 329,750. The number of former workers receiving state unemployment checks rose by 5,000 to 2.60 million in the week ending May 7. The four-week average of continuing claims dipped 7,500 to a fresh four-year low of 2.58 million.

8:30am 05/19/05 U.S. CONTINUING JOBLESS CLAIMS UP 5,000 TO 2.60 MLN

8:30am 05/19/05 U.S. 4-WEEK AVG. JOBLESS CLAIMS UP 5,500 TO 329,750

8:30am 05/19/05 U.S. WEEKLY JOBLESS CLAIMS DOWN 20,000 TO 321,000

There must have been an upward ajustment to last week's claims to 341,000

[UpInArms]

23. U.S. leading indicators show 'loss of momentum'

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38491.4169695833-835638218&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - The U.S. economy has lost some of its forward momentum, with the index of leading economic indicators falling for a fourth straight month, the Conference Board said Thursday. The index of leading indicators fell 0.2% as expected in April after a downwardly revised 0.6% drop in March, the private research group said. "The leading economic indicators show continued economic growth, but a definite loss of forward momentum," aid Ken Goldstein, chief economist for the board. "The decline in the leading index indicates that the economy is losing some steam."

10:00am 05/19/05 U.S. LEADING INDICATORS SHOW LOSS OF MOMENTUM

10:00am 05/19/05 U.S. LEADING INDICATORS FALL 4TH STRAIGHT MONTH

10:00am 05/19/05 U.S. APRIL LEADING INDICATORS FALL 0.2% AS EXPECTED

[MARALE]

44. downwardly revised to -.6

That is a pretty big revision, from -0.4, seems like they are always revising the numbers. Why don't they have it right the first time? I can see for the unemployment numbers, they fudge those anyway, but it seems to happen with a lot of the numbers they throw out.

[UpInArms]

45. if they were working from the rules that are being applied to

Newsweek, they would have to make a HUGE STATEMENT as to why there is no credibility to the numbers being reported and take full accountability for all the jobs being cut and the state of the economy.

But, we know that is not going to happen :evilgrin:

[converted_democrat]

33. Morning UIA !!!!!!!!!

Morning UpInArms!!!!!!! Hope you have a great day!!!!!!

:hi:

[UpInArms]

34. Morning converted_democrat!

I just wonder how long the sheep will follow the spin :eyes:

:popcorn:

[UpInArms]

51. Philly Fed PLUNGES to 7.3 vs 25.3 in April

12:00pm 05/19/05 MAY PHILLY FED FALLS TO 7.3 VS. 25.3 IN APRIL

[UpInArms]

53. GRIM details of the Philly Fed Report

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38491.5031023843-835645304&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Manufacturing activity in the Philadelphia region slowed in May, the Federal Reserve Bank of Philadelphia reported Thursday. The Philly Fed index fell to 7.3 from 23.5 in April. Economists were expecting the index to slide to 17.9 in May. The new orders index fell to 15.0 from 20.3. The shipments index fell to 14.9 from 29.4. The employment index fell to 5.4 from 16.8. The prices received index fell to 15.7 from 28.0. The expectations index fell to 22.3, the lowest in four years. Readings above zero indicate expansion in activity.

12:01pm 05/19/05 MAY PHILLY FED PRICES RECEIVED 15.7 VS. 28.0

12:01pm 05/19/05 MAY PHILLY FED EMPLOYMENT 5.4 VS. 16.8

12:01pm 05/19/05 MAY PHILLY FED NEW ORDERS 15.0 VS. 20.3

12:01pm 05/19/05 MAY PHILLY FED SHIPMENTS 14.9 VS.29.4

[UpInArms]

57. U.S. Mid-Atlantic factory growth slides in May

http://www.reuters.com/financeNewsArticle.jhtml?type=economicNews&storyID=8546537§ion=investing

NEW YORK, May 19 (Reuters) - U.S. Mid-Atlantic factory activity plunged this month, a regional central bank said on Thursday, the latest evidence that the economy may be headed for softer growth.

The Philadelphia Federal Reserve said its business activity index skidded to 7.3 in May from 25.3 in April, sharply below Wall Street forecasts of a milder drop to 19.0. A measure above zero denotes growth in the sector.

In a worrisome sign for job-seekers, the employment index slumped to 5.4 from 16.8, while new orders fell to 15.0 from 20.3. The six-month outlook for business conditions slipped to 22.3 from 27.5.

...more...

I just love that cuddly word: softer - it reminds me of a feather pillow, just snuggly and sleep inducing :boring:

[UpInArms]

70. Philly Fed index drops to 2-year low

http://www.marketwatch.com/news/story.asp?guid=%7BF7A629CB%2D2A38%2D4E72%2DB99F%2D60D1633FCFD3%7D&siteid=mktw

WASHINGTON (MarketWatch) -- Manufacturing activity in the Philadelphia region slowed sharply in May, the Federal Reserve Bank of Philadelphia reported Thursday.

The Philly Fed index fell to 7.3 from 25.3 in April, the lowest since June 2003. It was the largest one-month decline since January 2001.

Economists were expecting the Philly index to slide to 17.9 in May, according to a survey conducted by MarketWatch. See Economic Calendar.

Earlier in the week, the New York Fed said its Empire state index fell to negative 11.1 in May, the first negative reading in two years. See full story.

The Philly Fed and Empire state indexes are seen as providing good clues about the national manufacturing index to be released in early June by the Institute for Supply Management. The ISM, in turn, is considered the best real-time gauge of the health of the economy.

In a separate report Thursday, the Conference Board said the index of leading economic indicators fell 0.2% in April, the fourth straight decline. See full story.

...more...

They can say that anything above zero indicates "expansion", but from where I sit - this is not "expanding" it is contracting.

[UpInArms]

64. filling in the blanks for the week:

May 16	8:30 AM		NY Empire State Index	May	-11.1	15.0	11.0	2.0	3.1	
May 17	8:30 AM		Building Permits	Apr	2129K	2050K	2043K	2021K	2025K	
May 17	8:30 AM		Core PPI		Apr	0.3%	0.2%	0.2%	0.1%	-	
May 17	8:30 AM		Housing Starts		Apr	2038K	2030K	2000K	1836K	1837K	
May 17	8:30 AM		PPI			Apr	0.6%	0.5%	0.4%	0.7%	-	
May 17	9:15 AM		Capacity Utilization	Apr	79.2%	79.6%	79.5%	79.4%	-	
May 17	9:15 AM		Industrial Production	Apr	-0.2%	0.3%	0.2%	0.1%	0.3%	
May 18	8:30 AM		Core CPI		Apr	0.0%	0.2%	0.2%	0.4%	-	
May 18	8:30 AM		CPI			Apr	0.5%	0.3%	0.4%	0.6%	-	
May 19	8:30 AM		Initial Claims		05/14	321K	325K	330K	341K	340K	
May 19	10:00 AM	Leading Indicators	Apr	-0.2%	-0.2%	-0.2%	-0.6%	-0.4%	
May 19	12:00 PM	Philadelphia Fed	May	7.3	12.0	18.0	25.3	-

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

[UpInArms]

4. GE to release audit on ethical violations -- FT

http://www.marketwatch.com/news/story.asp?guid=%7BF1520BE8%2D85BD%2D4759%2DB6D8%2DDBE2768EBFA4%7D

NEW YORK (MarketWatch) -- General Electric Co. (GE) will disclose Thursday that it dismissed 125 employees and took disciplinary action against 243 last year for legal or ethical violations, the Financial Times reported Wednesday on its Web site.

The revelations in GE's first corporate citizenship report come in the same week that a senior executive filed a $450 million racial discrimination suit against the conglomerate, a charge GE said it "flatly denied" and would fight, the FT said.

...very short newsblurb...

[UpInArms]

5. Florida: AIG must hand over info

State licenses may be revoked if insurer doesn't comply

http://www.marketwatch.com/news/story.asp?guid=%7B4FEF7595%2D5374%2D4E4A%2D918D%2D99308C9B666E%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Florida's insurance regulator told American International Group Inc. to hand over information about the giant insurer's accounting missteps and identify and fire any employees responsible.

AIG could lose its state licenses if it doesn't comply, the Florida Office of Insurance Regulation warned in a statement Wednesday.

AIG spokesman Chris Winans said the company intends to "comply with all our insurance regulators' requests, including those of the Florida Office of Insurance Regulation."

Regulators including New York Attorney General Eliot Spitzer and the Securities and Exchange Commission are investigating whether companies including AIG (AIG: news, chart, profile) have used certain types of reinsurance to manipulate financial statements.

The probes precipitated the departure of longtime AIG CEO Maurice "Hank" Greenberg in March and forced the company to admit to a series of accounting improprieties that could knock $2.7 billion, or 3.3%, off its net worth.

<snip>

"They've basically admitted that the financial statements they've filed with state regulators are incorrect," Dennis Threadgill, chief assistant general counsel at the Florida Office of Insurance Regulation, said. "If they filed those statements knowing they were false then that is a crime."

...more...

[UpInArms]

6. Senate panel postpones Bernanke confirmation hearing

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38491.3404182523-835631334&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- The Senate Banking Committee has indefinitely postponed the hearing scheduled for Thursday to consider the nomination of Federal Reserve Gov. Ben Bernanke as the chairman of the White House's Council of Economic Advisers.

Is "Chopper" Ben's reputation in economic policy known by more than just a few?

[UpInArms]

82. US Senate panel sets May 25 hearing on Bernanke

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8547680§ion=investing

WASHINGTON, May 19 (Reuters) - The Senate Banking Committee said on Thursday it rescheduled a hearing on Federal Reserve Governor Ben Bernanke's nomination to head the White House Council of Economic Advisers for Wednesday, May 25.

The hearing, originally set for May 19, is scheduled to begin at 10 a.m. (1400 GMT), the panel said.

...very short newsblurb...

[UpInArms]

7. 2nd slap at China

http://www.ocregister.com/ocr/2005/05/19/sections/business/business_nation/article_525622.php

(free registration or try www.bugmenot.com)

WASHINGTON – Trade tensions between the U.S. and China escalated Wednesday when the Bush administration said it will set new limits on the amount of clothing that China can ship to the United States.

It was the second time in five days that Washington announced such quotas, acting on complaints that a surge of Chinese apparel was hurting U.S. companies.

The new batch of Chinese goods facing restrictions are men's and boys' cotton and synthetic-fiber shirts; synthetic-fiber trousers; synthetic-fiber knit shirts and blouses; and combed cotton yarn.

A textile industry representative said the categories of trousers as well as shirts and blouses would affect men's and women's products.

Retailers are concerned the quotas will raise prices of these goods for U.S. consumers.

<snip>

"These restrictions on imports from China will do absolutely nothing to help the U.S. textile industry - and the government knows it," said Jones, whose group includes large retailers.

...more...

[UpInArms]

8. Morgan Stanley ordered to pay $1.4B to Revlon chief

http://www.earthtimes.org/articles/show/2847.html

A Florida court has ordered Morgan Stanley to pay Ronald Perelman, the chairman of cosmetics firm Revlon, $850 million in punitive damages. The jury’s decision, which found the U.S. investment bank guilty of unethical behavior, brings to $1.45 billion the total sum owed to Perelman.

Philip J. Purcell, the chief executive of Morgan Stanley, said the bank would appeal. According to sources, the investment bank has reserved approximately $350 million for the case. Morgan Stanley earned $4.5 billion last year.

Incidentally, the $850 million awarded to Perelman falls way short of the maximum $1.8 billion that the jury could have penalized Morgan Stanley, under Florida law. Nonetheless, it is significantly higher than the $604 million previously awarded to Mr. Perelman as compensation.

<snip>

The case against Morgan Stanley stems from 1998 deal, in which Mr. Perelman sold his 82% share of camping gear manufacturer, Coleman, to Sunbeam, a consumer appliances firm, in return for 14 million shares of Sunbeam. However, the shares became worthless when Sunbeam collapsed in 2001, amid a huge accounting crisis.

<snip>

It was widely expected that Morgan Stanley would lose the case after the judge instructed the jury to assume that the investment bank had duped Perelman, after it was discovered the firm had violated court orders to turn over documents that might have been relevant to the case.

...more...

coulda woulda shoulda settled in 2003 for that $20M :eyes:

[UpInArms]

10. Has-Benn Partisan Hack doupleplusgoodspeak on Fannie/Freddie

Greenspan urges limits on Fannie, Freddie portfolios

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38491.3515256713-835632381&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) - Congress should rein in the growth of Fannie Mae and Freddie Mac, Federal Reserve Chairman Alan Greenspan said Thursday. Greenspan, speaking via satellite to a housing conference in Atlanta, repeated his strong opposition to the unrestrained growth of the portfolios at the two government-sponsored enterprises. "Huge, highly leveraged GSEs subject to significant interest rate risk are not conducive to the long-term financial stability that a nation of borrowers requires," Greenspan said in his prepared remarks. Greenspan said financial risks are heightened by Fannie's (FNM) and Freddie's (FRE) portfolios of mortgage-backed securities.

8:25am 05/19/05 GREENSPAN: FANNIE, FREDDIE PRESENT RISKS TO SYSTEM

8:25am 05/19/05 GREENSPAN: FANNIE, FREDDIE NEED STRONG REGULATOR

8:25am 05/19/05 GREENSPAN URGES LIMITS ON FANNIE, FREDDIE PORTFOLIOS

So when will Meanspin decide that hedge funds pose a problem?

[UpInArms]

22. Has-Been Partisan Hack strays from talking points

Greenspan-GSE portfolios don't aid homeownership

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8544548

WASHINGTON, May 19 (Reuters) - Federal Reserve Chairman Alan Greenspan on Thursday said the investment portfolios held by mortgage giants Fannie Mae and Freddie Mac would only support the mortgage market during a crisis if they held highly liquid, non-mortgage debt, such as Treasury securities. What? Those are only "worthless I-O-Us!

"Indeed, only such highly liquid portfolios would be consistent with the (government-sponsored enterprises') mission of providing primary mortgage market liquidity during a crisis, particularly during a financial crisis," Greenspan said in comments prepared for Federal Reserve Bank of Atlanta event. Are we expecting a crisis?

The central bank chief, who has urged Congress to cut the size of Fannie Mae's (FNM.N: Quote, Profile, Research) and Freddie Mac's (FRE.N: Quote, Profile, Research) portfolios, hammered away at the arguments for allowing the companies to continue to hold mortgages and mortgage-backed securities.

He said those holdings, which total about $1.5 trillion, do not support homeownership, increase the availability of long-term fixed-rate mortgages, or lower borrowing rates for homebuyers.

...more...

Paddling like hell below the waterline, Meanspin?

"The Federal Reserve Board has been unable to find any credible purpose for the huge balance sheets built by Fannie and Freddie other than the creation of profit through the exploitation of the market-granted subsidy," Greenspan said.

[UpInArms]

78. Freddie Mac to sell $4 billion in bills next week (BILLION with a B)

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8547185§ion=investing

NEW YORK, May 19 (Reuters) - Freddie Mac (FRE.N: Quote, Profile, Research) on Thursday said it plans to sell $4 billion of reference bills next week.

The scheduled offerings are:

-- $1 billion of one-month bills due June 21, 2005 to be sold Monday, May 23, and settle Tuesday, May 24;

-- $2 billion of three-month bills due Aug. 23, 2005 to be sold Monday and settle Tuesday; and

-- $1 billion of six-month bills due Nov. 22, 2005 to be sold Tuesday, May 24, and settle Wednesday, May 25.

The bills will be sold over the Internet in a Dutch auction. In those auctions, or uniform price auctions, successful bidders pay only the price of the lowest accepted bid rather than the actual price as in a conventional multiple-price auction.

...more...

Sounds like an eBay deal :crazy:

[54anickel]

106. Fed words speak louder than actions? (It's all about jaw-bonin')

Paper finds that FOMC statements affect markets, may be more effective policy tool than actions.

http://money.cnn.com/2005/05/19/news/economy/fed_speaks.reut/

WASHINGTON (Reuters) - For the Federal Reserve, choice of words may be a more effective monetary policy tool than actions, a paper written by staff from the Federal Reserve and published Thursday concludes.

The authors -- Refet Gurkaynak and Eric Swanson, of the Fed's division of monetary affairs, and Brian Sack of Macroeconomic Advisors -- looked at the seismic impact on financial markets of the Fed's decision to drop the phrase "policy accommodation can be sustained for a considerable period" from its Jan. 28, 2004 statement.

snip>

"The FOMC may be able to effectively communicate to the markets its intention to keep the federal funds rate low for an extended period, thereby lowering longer-term interest rates and stimulating economic growth," the authors concluded.

The paper, "Do Actions Speak Louder Than Words? The Response of Asset Prices to Monetary Policy Actions and Statements," appeared in the inaugural issue of the International Journal of Central Banking, which was edited by Fed governor and nominee to head the White House Council of Economic Advisors Ben Bernanke.

The authors said the paper represents their own views and not the Fed's.

[UpInArms]

12. DuPont being called before Grand Jury on PFOA

8:33am 05/19/05

U.S. GRAND JURY SUBPOENAS DU PONT

8:34am 05/19/05

U.S. GRAND JURY SUBPOENAS DU PONT ON PFOA

info:

DuPont Under Fire for Teflon Chemical PFOA

http://www.legalnewswatch.com/news_398.html

Source: U.S. Environmental Protection Agency
Published: August 10, 2004

Environmental Working Group last week called on the U.S. Environmental Protection Agency to fine DuPont for illegally hiding information about the risks of injury from the synthetic chemical Perflourooctanoic Acid (PFOA), which is used to manufacture some Teflon products.

Teflon is one of DuPont's most valuable assets, but it's potentially a huge liability for the company.

Last month the EPA filed a complaint against DuPont for allegedly withholding a human birth defect study and water contamination data, from the agency, regarding PFOA from June of 1981 through March of 2001.

The agency charged the company with two violations of the Toxic Substances Control Act (TSCA) and one violation of the Resources Conservation and Recovery Act (RCRA).

...more...

[loudsue]

71. DuPont is the devil incarnate.

The entire history of the company is void of ethics. They've been poisoning the world since their inception.

:kick::kick::kick:

[UpInArms]

101. Agreed. DuPont hasn't cared about humanity or the environment - ever

DuPont faces new Teflon safety probe

http://www.marketwatch.com/news/story.asp?guid=%7BDAF7AC93%2D2DC9%2D4474%2DB303%2DFE00C3640512%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) - DuPont Co. said Thursday that it has been handed a subpoena by a federal grand jury seeking a closer look at the chemicals it uses to make Teflon.

The subpoena from the Environmental Crimes Section of the Justice Department, asks DuPont to produce documents it already handed to the Environmental Protection Agency in an ongoing investigation of the same chemicals, which are suspected of causing birth defects.

<snip>

The subpoena is the latest wrinkle in DuPont's long-running legal battle over its use of perfluorooctanoic acid (PFOA) and its salts, C-8, ammonium perfluorooctanoate, and FC-143 - key ingredients in its non-stick coatings for cookware and industrial applications.

DuPont marketed Teflon as a "miracle material" since its development by the Wilmington, Del.-based chemical company back in the late 1950s.

The company is currently discussing with the EPA how C-8 breaks down in the environment to determine, part of the agency's study to measure possible health risks posed by the chemical.

In February, DuPont agreed to pay $107.6 million to settle a class-action lawsuit in West Virginia after the C-8 was found in local water supplies. The payment could swell to $235 million if exposure to C-8 is found to be harmful to humans. See full story.

...more...

[UpInArms]

13. pre-opening blather

briefing.com

9:00AM: S&P futures vs fair value: +1.0. Nasdaq futures vs fair value: +3.0. Futures market trades at its best levels of the morning, now suggesting a slightly higher open for the cash market, as yesterday's rally appears sustainable... In corporate news, Wal-Mart (WMT) has formed a DVD rental alliance with Netflix (NFLX) while Motorola (MOT) plans to buy back as much as $4 bln of its stock over three years

8:32AM: S&P futures vs fair value: flat. Nasdaq futures vs fair value: flat. Futures trade holds relatively steady following economic data, still indicating a flat open for the indices... Initial claims fell 20K to 321K, below expectations... Bonds have also held relatively steady, clinging to early gains, as the 10-yr note is up 2 ticks to yield 4.08%

8:00AM: S&P futures vs fair value: +0.1. Nasdaq futures vs fair value: +0.5. Futures market suggesting a flat open for the cash market as the indices struggle to extend the biggest three-day rally since the November elections... Major overseas markets (i.e. Nikkei +2.2%) have built on yesterday's solid advance, but a modest rebound in oil prices ahead of some economic data that could set a more definitive tone to trading, have so far kept futures indications stuck in neutral... At 8:30 ET, initial claims (consensus 330K) will be released

ino.com

The June NASDAQ 100 was slightly higher overnight as it extends Wednesday's rally, which led to a breakout above the 38% retracement level of this year's rally crossing near 1494.46. Stochastics and the RSI are bullish but overbought hinting that a short-term top might be in or is near. If June extends this month's rally, the 50% retracement level of this year's decline crossing at 1524.54 is the next upside target. Closes below the 10-day moving average crossing at 1476.80 would signal that the short covering rally off April's low has come to an end. The June NASDAQ 100 was up 0.50 pts. at 1513 as of 5:53 AM ET. Overnight action sets the stage for a steady to higher opening by the NASDAQ composite index later this morning.

The June S&P 500 index was slightly lower overnight as it consolidates some of Wednesday's rally but remains above the 50% retracement level of this year's decline crossing at 1186.60. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If June extends Tuesday's rally, the 62% retracement level of the March- April decline crossing at 1196.54 is the next upside target. Closes below the 20-day moving average crossing at 1166.66 would confirm that a short-term top has been posted. The June S&P 500 Index was down 0.20 pts. at 1186.60 as of 5:56 AM ET. Overnight action sets the stage for a steady to lower opening when the day session begins later this morning.

[ozymandius]

15. Those are pretty anemic futures. Not much confidence.

It seems like someone is sticking their finger in the air to see which way the wind blows on the unemployment numbers. Let's see... If unemployment applications are down, then more consumers are able to purchase goods and services. But if unemployment applications are up then publicly traded companies have lowered their overhead. What to do... What to do...

[UpInArms]

14. Treasurys up ahead of Philly Fed

http://www.marketwatch.com/news/story.asp?guid=%7B41646A31%2D1F88%2D4374%2DBF23%2DA76960BF5344%7D&siteid=mktw

NEW YORK (MarketWatch) - Treasury prices rose slightly, pushing yields lower, early Thursday as investors looked forward to the latest monthly survey from the Philadelphia Federal Reserve for clues about the state of the manufacturing sector.

The yield on the benchmark 10-year note fell to 4.077% from 4.083 in early trade. In late trade Wednesday the yield was 4.068%.

Several pieces of weak manufacturing sector data, including the most recent Empire State Manufacturing survey, have pointed toward slowing factory activity, spurring safe-haven interest in Treasurys.

A weak Philadelphia Fed reading also could help the market. :crazy:

According to a MarketWatch survey of economists, the headline index is expected to drop to 17.9 in May from 25.3 in April. The report is due at noon.

...more...

So if the Philly Fed drops and shows that the Empire Index falling is a trend, that's good?

[ozymandius]

16. Pirates Looted Firms Out Of $33 Billion In Software Plunder

Software piracy's either getting worse or better, depending on one's point of view.

A study out Wednesday shows global piracy fell a percentage point last year. Some 35% of software on PCs was used illegally.

-cut-

"It (the dollar rise) is because of the larger overall market for software (sales up 6%), both legitimate and illegitimate," Holleyman said. "And due to some currency conversion issues."

Vietnam was the worst country for piracy, with a 92% rate, followed by Ukraine, a point lower. The level in China was 90%, down from 92% in 2003. Ninety percent means 10 cents has been paid for each dollar's worth of software in use.

more one-sentence paragraphs(?)....

http://biz.yahoo.com/ibd/050518/tech.html

[UpInArms]

17. 1,000 Fluor workers face layoff

http://www.tri-cityherald.com/tch/local/story/6508475p-6389413c.html

Fluor Hanford plans to lay off up to 1,000 of its 3,886 workers in late September, chief executive Ron Gallagher announced in a message to employees Wednesday afternoon.

"The pace of cleanup has reached a point where significant changes to the work force are necessary to reflect the work scope that remains for the balance of our contract," Gallagher told employees. Fluor's contract is set to expire in September 2006.

Although the employee message did not discuss the Hanford budget, the contractor likely will get less money for cleanup projects under the budget proposed for fiscal year 2006.

<snip>

Fluor is the primary contractor for cleanup of the Hanford nuclear reservation, where plutonium was produced for the nation's nuclear weapons program. It manages the site and does some of the cleanup work, including work in the central plateau.

...more...

[UpInArms]

18. 9:34 EST markets are open (profit taking going on?)

Dow 10,456.85 -7.60 (-0.07%)
Nasdaq 2,030.59 -0.06 (-0.00%)
S&P 500 1,185.37 -0.19 (-0.02%)
10-Yr Bond 4.087 +0.19 (+0.47%)

NYSE Volume 31,550,000
Nasdaq Volume 50,404,000

[UpInArms]

21. 9:48 EST numbers and blather (bouncing back up)

Dow 10,464.45 0.00 (0.00%)
Nasdaq 2,035.39 +4.74 (+0.23%)
S&P 500 1,186.78 +1.22 (+0.10%)
10-Yr Bond 4.085 +0.17 (+0.42%)

NYSE Volume 133,227,000
Nasdaq Volume 148,979,000

9:40AM: Stocks open in lackluster fashion, as investors weigh growing recognition of strong economic growth with the temptation of consolidating recent gains... While alleviated inflation concerns, plummeting oil prices and upbeat corporate news yesterday incited strong follow-through buying, it appears the sustainability of the largest three-day rally since last November may be in question as investors look to lock in some profits...

Arguably providing a floor of support around the flat line, however, has been a 20K decline in weekly jobless claims to 321K, as this is the week in which the May employment survey was taken... With jobless benefits back down to were they were two weeks ago, claims remain at levels consistent with gains of 175K or so in monthly nonfarm payrolls... Separately, April leading indicators (consensus -0.2%) will be released at 10:00 ET...

[UpInArms]

19. Able Labs to suspend shipments of certain products

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38491.3979905671-835636492&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Able Laboratories (ABRX) said a previously-announced internal investigation into improper laboratory practices uncovered departures from standard procedures related to certain testing practices. As a result, the company said it would temporarily suspend shipments of investigated products until a review is completed, and said it expects to be recalling additional products in the future. The company said it was withdrawing its financial forecasts, as the suspension of shipments will materially affect its ability to meet its sales targets. The stock was currently halted for trading while the news is disseminated, after closing Wednesday unchanged at $24.63.

for a list of their products, go here:

We manufacture and market prescription generic drugs in the form of tablets, capsules, suppositories and liquids. In November 2000 we received our first FDA approval to manufacture and sell Diphenoxylate Hydrochloride and Atropine Sulfate tablets. Our current FDA-approved products are listed below:

http://ablelabs.com/products/products.html

[UpInArms]

43. Able Lab CEO resigns

11:41am 05/19/05 ABLE LABS COO ROBERT MAURO NAMED AS INTERIM CEO

11:40am 05/19/05 ABLE LABORATORIES CEO DHANANJAY WADEKAR RESIGNS

There must be a bit more to this - systemic failure?

[UpInArms]

54. Able Labs suspends all products

http://www.marketwatch.com/news/story.asp?guid=%7B2ADAA8EA%2DF3AC%2D48B6%2D89A0%2D50AD05B96865%7D&siteid=mktw

BOSTON (MarketWatch) - Generic drugmaker Able Laboratories Inc. said Thursday it has suspended all shipments of its products due to quality control problems, a move that prompted the immediate resignation of its chairman and chief executive officer Dhananjay Wadekar.

According to Able, Wadekar will continue with the company as a consultant. Able's president and chief operating officer, Robert Mauro, will assume the role of interim chief executive officer, reporting to a special committee of the board of directors.

As a result of the announcement, Able (ABRX: news, chart, profile) halted trading of its shares early Thursday. Trading was still suspended by midday.

In a statement, Able said that an ongoing review into its manufacturing procedures had uncovered additional quality control problems. Able said the problems concerned the company's laboratory testing practices.

Because the company is unable at this time to determine the extent to which its products deviated from standard manufacturing practices, the company is suspending all shipment of its products until further notice, said Able.

...more...

Yep - systemic just about describes it.

[loudsue]

72. Generic Ritalin, Phenergan, Darvocet, etc. etc. YIKES!

Think of all those elementary school kids who are placed on Ritalin, and their insurance companies have had them taking the generic version!

Some of these drugs listed on their site are prescribed OFTEN, and I'm sure a lot of the generic versions of the drugs that Able Labs has produced have been spread far and wide.

There is NOBODY in our government protecting THE PEOPLE!!! They've cut the staffs on EPA, USDA, FDA, etc., until there's just nobody to enforce anything! Plus, the bush administration has skewed the interpretations of the laws so badly that nothing, it seems, that corporations do is illegal anymore!

:argh: I want my country back!!!

:kick::kick::kick:

[ozymandius]

20. fifteen minutes into trading and this is the best they can do?

Dow 10,462.88 -1.57 (-0.02%)
Nasdaq 2,034.29 +3.64 (+0.18%)
S&P 500 1,186.55 +0.99 (+0.08%)
10-Yr Bond 4.085% +0.02

NYSE Volume 105,349,000
Nasdaq Volume 123,640,000

[UpInArms]

24. 10:04 EST numbers and blather

Dow 10,462.45 -2.00 (-0.02%)
Nasdaq 2,036.71 +6.06 (+0.30%)
S&P 500 1,186.34 +0.78 (+0.07%)
10-Yr Bond 4.079 +0.11 (+0.27%)

NYSE Volume 234,683,000
Nasdaq Volume 249,464,000

10:00AM: Equities still trade in split fashion as sector leadership remains mixed... Technology has seen modest strength across the board, benefiting primarily from a 3.6% surge in shares of Motorola (MOT 17.52 +0.62) following its proposed $4 bln buyback... Telecom Services and Consumer Discretionary have also posted modest gains, with the latter finding modest support from retail stocks, while weakness in brokerage and banks has minimized gains in Financial...

Materials, however, has been weak amid a strengthening dollar while Industrials and Health Care - amid pressure within the drug space - have also been under pressure... NYSE Adv/Dec 1407/1145, Nasdaq Adv/Dec 1372/973

[UpInArms]

25. Gas prices alter U.S. consumer spending - survey

http://www.reuters.com/financeNewsArticle.jhtml?type=economicNews&storyID=8542968§ion=investing

NEW YORK, May 19 (Reuters) - U.S. consumers are altering their spending as the effect of higher gas prices weighs on disposable incomes, a survey from the National Retail Federation showed on Thursday.

The NRF survey, conducted by BIGresearch, a consumer market intelligence firm, said about a third of U.S. consumers have even cut down on vacation and travel plans as a result of gas prices.

"While shoppers seem to be getting over the initial sticker shock, gas prices have taken a long-term toll on consumers, many of whom have had to adjust their spending to compensate for the increases," Tracy Mullin, NRF president and chief executive, said in a statement.

According to the survey, consumers have also been increasingly cutting down on dining out, reducing the money spent on clothing and spending less on groceries.

...more...

Killing the consumer at the pumps?

[ozymandius]

40. Well, this renders the logic behind yesterday's gains meaningless.

Food end energy do take their toll on the CPI (core). I wish these analysts would just cut the hubbub and imagine (for once) that food and energy DO matter in evaluating inflation.

Sheesh!

[UpInArms]

26. U.S. Fed words as effective as actions - paper (verbal intervention works!

http://www.reuters.com/financeNewsArticle.jhtml?type=economicNews&storyID=8540187§ion=investing

WASHINGTON, May 19 (Reuters) - For the U.S. Federal Reserve, choice of words may be a more effective monetary policy tool than actions, a paper written by staff from the Federal Reserve and published on Thursday concludes.

The authors -- Refet Gurkaynak and Eric Swanson, of the Fed's division of monetary affairs, and Brian Sack of Macroeconomic Advisors -- looked at the seismic impact on financial markets of the Fed's decision to drop the phrase "policy accommodation can be sustained for a considerable period" from its Jan. 28, 2004, statement.

<snip>

FOMC statements and public statements by FOMC members affect markets by influencing expectations of what the FOMC will do in the future, the authors said.

"The FOMC may be able to effectively communicate to the markets its intention to keep the federal funds rate low for an extended period, thereby lowering longer-term interest rates and stimulating economic growth," the authors concluded.

The paper, "Do Actions Speak Louder Than Words? The Response of Asset Prices to Monetary Policy Actions and Statements," appeared in the inaugural issue of the International Journal of Central Banking, which was edited by Fed governor and nominee to head the White House Council of Economic Advisors Ben Bernanke.

...more...

[UpInArms]

27. High-yield bonds not pricing default risk-analysts

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8545455§ion=investing

LONDON, May 19 (Reuters) - Despite the recent selloff in the high-yield bond market, returns are still not high enough to compensate investors for the risk of default, analysts at Deutsche Bank warned on Thursday.

The warning came as credit ratings agency Standard & Poor's said credit risk in the European leveraged buyout market, a major source of high-yield bond supply, had deteriorated significantly in the past 18 months, with an "inevitable" rise in defaults to follow.

<snip>

"Does the recent credit spread widening make credit cheap?" they asked. "Single-B spreads still do not compensate investors for historic default probability. Thus whilst spreads are cheaper, it is difficult to say they are cheap."

The high-yield bond market has rallied sharply in the past two days after coming under intense pressure in the wake of the downgrades of U.S. automakers Ford Motor Co. (F.N: Quote, Profile, Research) and General Motors Corp. (GM.N: Quote, Profile, Research) to "junk" status.

...more...

[UpInArms]

28. Bailey Coates hedge fund denies closing London base

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8542479§ion=investing

LONDON, May 19 (Reuters) - UK hedge fund Bailey Coates has denied market talk that it made all its London staff redundant and said the company is still operating.

"We're very much alive and kicking," founder Jonathan Bailey told Reuters. "We've made a couple of people redundant as part of the restructuring."

Bailey said earlier this week it had closed its U.S. operations after a disappointing performance in April and March, resulting in a "a few much-regretted staff redundancies."

Bailey Coates' long/short equity fund is said to have lost nearly 10 percent in April and around 5 percent in March. The firm manages more than $500 million and does not borrow to make bigger and more risky leveraged investments.

The company also said it had no exposure to the auto sector, which over the past few weeks has been hit by downgrades of corporate debt issued by General Motors Corp. (GM.N: Quote, Profile, Research) and Ford Motor Co. (F.N: Quote, Profile, Research) .

...more...

[UpInArms]

29. BGI sets up 1 bln stlg hedge fund, eyes volatility

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8542073§ion=investing

LONDON, May 19 (Reuters) - Barclays Global Investors (BGI) is setting up a 1 billion pound ($1.84 billion) hedge fund, partly to profit from rising credit market volatility, the fund's head of credit told Reuters on Thursday.

Credit markets have become increasingly jittery, especially following S&P's downgrade last month of General Motors (GM.N: Quote, Profile, Research) and Ford (F.N: Quote, Profile, Research) debt to junk status. Talk since has been that the downgrades directly hurt trades that had assumed a long purple patch of credit stability to continue.

But BGI says hedge funds can exploit the general drop in confidence, for example by betting on a drop in -- or shorting -- debt prices.

"Long-short hedge funds will benefit from market volatility and a spread-widening environment," said Andrew Winn, head of European credit.

...more...

[UpInArms]

30. Fed adds temporary reserves via 14-day system RPs

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8544665§ion=investing

NEW YORK, May 19 (Reuters) - The Federal Reserve said on Thursday it added $12 billion in temporary reserves to the banking system through 14-day system repurchase agreements at a stop-out rate of 2.94 percent.

A week ago, the Fed did a $9 billion 14-day repo at a stop out rate of 2.94 percent.

The stop-out rate is the lowest rate that Fed accepts.

Fed funds last traded at 3.00 percent, the Fed's target for the rate on overnight loans between banks.

...more...

[UpInArms]

38. U.S. Treasury to sell $32 bln bills Monday

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8546024§ion=investing

WASHINGTON, May 19 (Reuters) - The U.S. Treasury Department said on Thursday it will sell $17 billion of three-month bills and $15 billion of six-month bills on Monday, May 23.

The bills will be issued on Thursday, May 26.

Proceeds from the sale will be used to refund an estimated $38.02 billion of publicly held three-month and six-month Treasury bills maturing May 26 and to pay down about $6.02 billion of debt.

The three-month bills mature on Aug. 25 while the six-month bills mature on Nov. 25.

Treasury said $6.30 billion of the three-month bills can be excluded when bidders calculate their net long positions. The net long reporting threshold for the three-month bills is $5.95 billion, and for the six-month bills it is $5.25 billion.

...more...

[UpInArms]

31. Bush team renews call for Social Security overhaul

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8544718§ion=investing

WASHINGTON, May 19 (Reuters) - Senior Bush administration officials on Thursday renewed the call to overhaul the Social Security retirement program even though President George W. Bush's proposals have so far received lukewarm public support.

"Too many times now Social Security has been patched up with tax increases and other band aids that get us through a few more years, but don't offer a lasting answer. Waiting to act would invite the next band aid solution," Treasury Secretary John Snow said in prepared remarks.

...more...

:banghead:

[ozymandius]

41. What tax increases???

Nevermind that reducing the amount of income taxed as SS contributions has contributed to the estimated future payment shortfall. Wasn't this Greenscam's suggestion fourteen years ago? When since was the amount of income taxed ever raised? If my FICA deductions have gone up - that's news to me.

We need an asshole emoticon for Snowjob and his ilk.

[54anickel]

65. I heard the idiot is gracing us with his presence today here in WI..eom

[UpInArms]

66. you might need a couple of these

HE NATIONAL BARF BAG
measures 5" x 3.5" x 13."
It is constructed of 157 GSM
art paper coated on 2 sides,
gloss laminated, printed in a
4 color process with 100% ink
coverage. Each bag features
4-mm tri-color twisted
polypropylene rope handles.
The bags are guaranteed
to hold at least two lbs. of
predigested rice and beans.

[54anickel]

68. Heh, thanks! I am afraid my time is short again today, but I do look

forward to "lurking" the thread later this afternoon. Bye :hi:

[ozymandius]

77. See ya later 54anickel.

I wonder if we'll see any action when the piehole opens.

Ozy :hi:

[ozymandius]

98. somehow this picture fits my mental image of The Pretender.

[UpInArms]

100. My eyes! My eyes!

Gack! It looks just like him!

:rofl:

[UpInArms]

89. White House defends private accounts

Administration ally says Bush's Social Security accounts are too large

http://www.marketwatch.com/news/story.asp?guid=%7BE51BBA61%2DA02E%2D4D75%2D803F%2D63EA1E87D7B4%7D&siteid=mktw

WASHINGTON (MarketWatch) - White House officials defended President Bush's call to trim benefits for future retirees and let workers divert part of their Social Security payroll taxes into private accounts, but also heard a key ally warn that the size of the president's proposal could stand in the way of ensuring the program's long-term solvency.

Mutual fund executive Robert Pozen, whose call to slow benefit growth for future medium and high income retirees was recently endorsed by Bush, said he didn't see a way to successfully combine his plan with Bush's proposal to let workers born after 1950 divert 4% of wages, equal to nearly two-thirds of their share of the Social Security payroll tax, into private investment accounts.

The Bush plan caps the amount workers would be able to contribute the first year at $1,000. That cap is indexed according to wage growth - a factor that makes for "very large accounts" after 30 to 40 years, Pozen told administration officials and other invitation-only guests who gathered in the Treasury's ornate Cash Room.

Since payroll taxes are used to pay current benefits, revenues diverted into accounts would need to be made up through benefit cuts, tax hikes or borrowing.

<snip>

Treasury Secretary John Snow kicked off the roundtable, reiterating the White House's call for quick action on Social Security.

"Too many times now Social Security has been patched up with tax increases and other band aids that get us through a few more years, but don't offer a lasting answer," Snow said in prepared remarks.

...more...

IF THE 1983 PAY-IN-ADVANCE ENGINEERED BY ALAN "THE THIEF" MEANSPIN WAS LOUSY - WHY IN THE HELL HAS THAT DOUCHEBAG NOT BEEN FIRED?

[UpInArms]

32. SEC sues, fines 3 hedge funds for illegal short sales

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38491.4472006829-835640787&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission said Thursday that it sued and fined three hedge funds for illegally short-selling shares of several companies before secondary offerings. Galleon Management LP, Oaktree Capital Management LLC and DB Investment Managers Inc., a unit of Deutsche Bank (DB) , were sued by the SEC under an anti-manipulation rule that prohibits covering a short sale with securities obtained in a secondary share sale if the short trade occured five days before the pricing of the offering. Without admitting or denying the allegations, the three managers agreed to pay a total of almost $2.4 million in disgorged profits, penalties and interest, the SEC said in a statement.

10:28am 05/19/05 SEC: ALL 3 ADVISERS NEITHER ADMITTED, DENIED WRONGDOING

10:27am 05/19/05 SEC SUES HEDGE FUND ADVISERS GALLEON, OAKTREE DB INVEST

:wow: Aren't these hedge funds the greatest!

(updated to add link and blurb)

[UpInArms]

36. SEC settles Salomon charges for $120K

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38491.4777594097-835643186&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission said Thursday that two former Salomon Smith Barney executives have each agreed to pay $120,0000 to settle charges that they failed to supervise former equity analyst Jack Grubman. The SEC said Jack Hoffman, formerly the head of global equity research at Salomon, now known as Citigroup (C) Global Markets, and Kevin J. McCaffrey, formerly the head of North American equity research, have also agreed to 15-month bans from acting in supervisory roles. Grubman has already settled SEC charges that he misled investors with biased research.

11:09am 05/19/05 SEC: FRMR SALOMON EXECS TO PAY CIVIL PENALTIES OF $120K

11:08am 05/19/05 SEC: 2 EX-SALOMON SUPERVISORS OF ANALYST JACK GRUBMAN

11:05am 05/19/05 SEC SAYS 2 FRMR SALOMON EXECS SETTLE CHARGES

(edited to add link and blurb)

[UpInArms]

76. more info regarding Jack Grubman

http://www.washingtonpost.com/wp-dyn/content/article/2005/05/19/AR2005051900858.html

excerpt:

Hoffmann and McCaffrey oversaw Grubman in 2000 and 2001, as the stock market went bust following years of rapid gains. The SEC found that the two men failed to stop Grubman from publishing unrealistically bullish reports, even though they received complaints that his research was too optimistic and knew Grubman was under pressure to promote the stock of investment banking clients.

"Sadly, Mr. Grubman's actions have stained the reputations of the many superb analysts at Salomon Smith Barney and undermined the research integrity Mr. Hoffmann sought to maintain during his entire career in the securities business," said John Harris, an attorney for Hoffmann. Hoffmann and McCaffrey settled without admitting or denying wrongdoing.

<snip>

Grubman in April 2003 was permanently barred from the securities industry and ordered to pay $15 million to settle charges he issued fraudulent or misleading research reports about seven telecommunications companies that were also investment banking clients.

Among the companies that he promoted were Focal Communications Corp. and Williams Communications Group. The shares of these and the other five companies lost over 90 percent of their value in 2000 and 2001 even as Grubman maintained a "buy" rating on the securities, the SEC said.

...more at link...

[UpInArms]

83. National Stock Market, CEO settle SEC allegations

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8547717§ion=investing

WASHINGTON, May 19 (Reuters) - National Stock Exchange (NSX) and its chief executive officer settled allegations that they failed to enforce their own trading rules on member dealers, U.S. regulators said on Thursday.

CEO David Colker agreed to be censured and pay a $100,000 civil penalty, said the Securities and Exchange Commission.

The company agreed to a censure and to improve its compliance programs to assure that member dealers comply with the market order exposure (MOE) rule, the SEC said.

<snip>

The SEC also said that between 1997 and 2003, NSX failed to conduct surveillance for violations of its customer priority rule, which barred NSX dealers from trading securities for their own accounts ahead of marketable customer orders.

NSX "failed to detect hundreds of thousands of transactions in which NSX dealers traded ahead of customer orders" the SEC statement said.

...more...

Conflict of interest? Customers come first? :rofl:

[UpInArms]

35. 11:14 EST numbers and blather

Dow 10,479.08 +14.63 (+0.14%)
Nasdaq 2,041.23 +10.58 (+0.52%)
S&P 500 1,189.97 +4.41 (+0.37%)
10-Yr Bond 4.088 +0.20 (+0.49%)

NYSE Volume 605,109,000
Nasdaq Volume 587,371,000

11:00AM: Broader market action still leaves little to be desired, but there are some individual stories of note that are generating excitement... Shares of Netflix (NFLX 17.35 +1.85) have soared 12% (but are still more than 50% below 52-week highs) amid news that Wal-Mart (WMT 47.44 -0.14) will exit the online DVD rental business and direct existing customers to NFLX... Petsmart (PETM 32.70 +2.85) has also been a big winner on the Nasdaq after it beats analysts' Q1 earnings expectations by $0.05 and issued upside FY05 guidance... NYSE Adv/Dec 1644/1288, Nasdaq Adv/Dec 1486/1197

10:30AM: Little changed since the last update, as the major averages continue to vacillate in roughly the same ranges... Meanwhile, April leading indicators - which attempt to project economic performance over the next 3-6 months - fell 0.2%, matching forecasts and recording the four consecutive monthly decline... But since the index poorly assesses the economic outlook, due to its predictability as a compendium of previously announced indicators, the data have had very little influence on the market... NYSE Adv/Dec 1758/1037, Nasdaq Adv/Dec 1575/988

[UpInArms]

37. More GM fallout: Alcoa to shut, sell castings plant

http://www.marketwatch.com/news/story.asp?guid=%7BE29B3792%2DCE67%2D43F1%2D8F33%2D2FCC8EFD437B%7D&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Alcoa Inc. said Thursday it plans to shut Kentucky auto-part castings plant by the end of the year, the result of what it called excess capacity in its automotive castings manufacturing system.

Closing the Hawesville, Ky., facility affects 158 employees and will result in Alcoa taking a pretax charge of $45 million to $50 million against second-quarter results.

Pittsburgh-based Alcoa (AA: news, chart, profile) said it plans to sell the plant, which is currently operating at less than 20%.

Auto-parts makers throughout the country have been hit hard in recent months by a broad downturn in domestic car sales, forcing their biggest clients -- General Motors Corp. (GM: news, chart, profile) and Ford Motor Co. (F: news, chart, profile) -- to throttle back output from their assembly lines.

...more...

[UpInArms]

49. More GM Fallout: Moody's cuts Delphi debt rating to 'B2' from 'Ba2'

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38491.4992168403-835644870&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- Moody's Investors Service on Thursday downgraded Delphi Corp. (DPH) senior implied debt ratings to B2 from Ba2 with a negative outlook. Moody's cited the outlook for further operating losses and negative free cash flow generation at Delphi as reasons for the downgrade. The outlook is a result of lowered expectations of auto production volumes in North America, particularly from Delphi's largest customer, General Motors Corp. (GM) ; an uncompetitive cost structure in its North American operations; and substantial funding requirements for its domestic pension plans and ongoing restructuring programs, Moody's said. The agency also assigned a B1 rating to the company's proposed new term loan B.

[UpInArms]

80. Moody's cuts Delphi's ratings deeper into junk

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8546765§ion=investing

NEW YORK, May 19 (Reuters) - Moody's Investors Service on Thursday slashed its ratings on Delphi Corp. (DPH.N: Quote, Profile, Research) deeper into junk territory, saying the auto parts supplier is likely to post more losses as North American automakers cut output.

The outlook is negative, meaning another rating downgrade is likely over the next 12 to 18 months. Ratings downgrades usually raise borrowing costs.

Delphi's near-term profit prospects remain uncertain, given continued pressures on the auto industry, especially Delphi's largest customer, General Motors Corp. (GM.N: Quote, Profile, Research) , Moody's said in a statement.

...more...

[UpInArms]

91. Fitch downgrades Ford sr unsecured debt to 'BBB'

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38491.6275448727-835654778&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

SAN FRANCISCO (MarketWatch) -- Fitch Ratings on Thursday downgraded the senior unsecured debt ratings of Ford Motor Corp. (F) and Ford Motor Credit Corp. to BBB from BBB+. The outlook remains negative. Fitch also affirmed the F2 commercial paper. Fitch said the downgrade reflects the impact of sales declines in key product categories, "relentless" price and product competition and higher commodity prices on Ford's automotive operating profitability as reasons for the downgrade. It said despite relatively successful new products and steady economic growth, Ford faces breakeven to modestly negative cash flows in the automotive segment. Fitch also said it downgraded the ratings of Ford's car rental unit Hertz Corp. to BBB from BBB+.

[UpInArms]

39. Seattle FHLB (Fed Home Loan Bank) suspends dividends, repurchases

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8546130§ion=investing

WASHINGTON, May 19 (Reuters) - The Federal Home Loan Bank of Seattle, one of the twelve federal banks that provide funding for affordable housing, on Thursday said it would suspend dividend payments and stock repurchases as part of a plan to improve its internal controls and profitability.

The Seattle Bank said its supervisor, the Federal Housing Finance Board, had approved a three-year business and capital management plan. But that approval required the bank to restrict dividends and stock repurchases.

The Seattle Bank's board, therefore, agreed to suspend dividends on all classes of stock from now on. It also agreed not to repurchase any class of stock before the end of a statutory five-year redemption period without a waiver from the regulator.

Under the business plan, the Seattle Bank will focus its activities on the bank's tradition role of providing advances to member institutions. That should reduce its interest rate risk, the bank said.

...more...

[ozymandius]

42. numbers and blather

11:38
Dow 10,462.67 -1.78 (-0.02%)
Nasdaq 2,036.66 +6.01 (+0.30%)
S&P 500 1,187.61 +2.05 (+0.17%)
10-Yr Bond 4.088% +0.02

NYSE Volume 697,717,000
Nasdaq Volume 683,423,000

Leading Indicators, Jobless Claims Drop

Leading Indicators Dip, Sign Economic Growth Losing Steam; Jobless Claims Drop More Than Expected

NEW YORK (AP) -- A closely watched gauge of future business activity fell in April, the fourth consecutive decline in a row, offering more evidence that economic growth is losing some steam.

But in an encouraging sign for employment, the number of new people signing up for jobless benefits dropped sharply last week. The Labor Department reported Thursday that new applications filed for unemployment insurance declined by a seasonally adjusted 20,000 to 321,000 for the week ending May 14. The decline, larger than expected, was the biggest drop in claims seen in a month.

-cut-

The Conference Board said that its Composite Index of Leading Economic Indicators fell 0.2 percent last month to 114.5. The decline was in line with what analysts expected for the indicator, which is closely followed because it is meant to forecast the economy's health over the coming three to six months.

http://biz.yahoo.com/ap/050519/economy.html?.v=12

[UpInArms]

46. Watchdog sees signs of (US/UK Hedge Fund) collusion against D.Boerse

http://www.reuters.com/financeNewsArticle.jhtml?type=governmentFilingsNews&storyID=8545581§ion=investing

BONN/FRANKFURT, May 19 (Reuters) - Germany's financial sector supervisor BaFin said on Thursday it had found indications that certain Deutsche Boerse (DB1Gn.DE: Quote, Profile, Research) shareholders had acted in concert to oust top managers at the German exchange operator.

The watchdog has been investigating whether some investors -- primarily UK and U.S. hedge funds -- had acted together in forcing out Deutsche Boerse Chief Executive Werner Seifert and Supervisory Board Chairman Rolf Breuer.

"We have investigated whether there are indications for joint actions of shareholders. The investigation was positive," BaFin president Jochen Sanio told a news conference.

BaFin will now probe recent events more closely, he added.

<snipping lots>

"If you look into it, you will see that the seven largest Deutsche Boerse shareholders include the top five holders of Euronext -- that is not a coincidence, that points to acting in concert," said one Frankfurt analyst.

...more at link...

[UpInArms]

47. CIBC says credit card issuer outlook is negative

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38491.4929995486-835644397&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- CIBC World Markets said the outlook for credit card issuers was negative as loan growth continues to decelerate and profitability erosion is expected to accelerate. Analyst Meredith Whitney said home equity loan growth was stealing business away from the credit card market, which has become saturated. In addition, Whitney said credit costs should rise, as the balances will be held by those without access to lower-cost home equity loans and non-homeowners. She said higher credit costs, coupled with higher rewards costs to attract users, will lower fee margins at a time when net interest income is declining. Whitney said Citigroup (C) , J.P. Morgan Chase (JPM) and MBNA Corp. (KRB) will be most hurt by these trends. She thinks Bank of America (BAC) and Capital One Financial (COF) , and to a lesser extent American Express (AXP) , will also be affected.

No more plastic McFood? Just eat the house!

[ozymandius]

48. 11:30 blather just for laughs

11:30AM: Indices improve their stance somewhat, as the Dow turns slightly positive and market internals still suggest a modestly upbeat sentiment... Advancers on the NYSE outpace decliners by 17 to 12 margin while advancing issues on the Nasdaq hold a 15 to 12 edge over declining issues... A 2-to-1 ratio of up to down volumes on both the Big Board and the Composite, however, underscores a much more bullish bias...

Meanwhile, the Dow, S&P and Nasdaq continue to trade above initial support levels but modest buying interest has not been enough to push the major averages through resistance levels of 10485, 1191 and 2047, respectively... Separately, May Philadelphia Fed (consensus 18.0) will be released at 12:00 ET... NYSE Adv/Dec 1797/1202, Nasdaq Adv/Dec 1522/1214

[ozymandius]

50. and the numbers at 11:59

Dow 10,458.75 -5.70 (-0.05%)
Nasdaq 2,037.34 +6.69 (+0.33%)
S&P 500 1,187.54 +1.98 (+0.17%)
10-Yr Bond 40.85 +0.17 (+0.42%)

NYSE Volume 766,770,000
Nasdaq Volume 745,859,00

[UpInArms]

52. let's see how "good" that Philly Fed plunge is for Wall Street

[ozymandius]

56. the Philly Fed shuffle

That is one twisted bit of logic.

[UpInArms]

55. 12:12 EST numbers and (happy) blather

Dow 10,451.59 -12.86 (-0.12%)
Nasdaq 2,034.71 +4.06 (+0.20%)
S&P 500 1,186.28 +0.72 (+0.06%)
10-Yr Bond 4.083 +0.15 (+0.37%)

NYSE Volume 817,362,000
Nasdaq Volume 792,919,000

12:00PM: Stocks struggle to gain much traction midday, as investors find little in the way of market-moving data to extend yesterday's broad-based rally... Meanwhile, initial claims, which were compiled during a key week in which the May employment survey was conducted, fell 20K to 321K, indicating continued optimism from businesses about the state of the economy...

But even though economic growth remains strong and the worst fears about inflation have been dispelled by yesterday's encouraging CPI report, the temptation of consolidating recent gains following the largest three-day rally since last November has left the indices trading in subdued fashion and kept sector leadership mixed... Energy (+1.5%) has paced the way higher, benefiting from a rebound in oil prices... Crude oil futures ($47.65/bbl +$0.40) have climbed after OPEC said it may cut output if inventories build too fast... Technology (+0.4%) has been the most influential leader to the upside, benefiting from a proposed $4.0 bln share buyback at Motorola (MOT 17.52 +0.62) as well as leadership from ORCL (+1.5%), AAPL (+2.9%) and YHOO (+2.4%)...

Interest-rate sensitive areas like Financial and Utilities have been mixed, finding little direction from lackluster action in Treasurys... The benchmark 10-year note is up just 2 ticks to yield 4.07%.... Pacing the way lower has been the Materials sector (-0.7%), as a strengthening dollar has weighed on Aluminum, Gold and Steel... Health Care has also been under pressure, amid widespread selling in the Drug space, while Industrials has traded lower amid weakness in Transportation, especially Airline stocks...

[ozymandius]

58. I think we're being punished.

But even though economic growth remains strong and the worst fears about inflation have been dispelled by yesterday's encouraging CPI report

That second paragraph smacks of willful ignorance.

[UpInArms]

60. wasn't it earlier this week (when the CPI came out) that the

blather said it was ignoring that until the Philly Fed came out to suggest whether there was a trend following the Empire Index?

The constant spinning is making me dizzy :crazy:

[ozymandius]

62. Yes.

The logic said that they are waiting to confirm each other. Otherwise... nothing to see here. Move along. See this part of a Bloomberg story:

'Dire for Dollar'

The dollar may also lose support on expectations a government report today will show a gauge of manufacturing in the Philadelphia region fell this month. The New York Fed two days ago said its Empire index of manufacturing unexpectedly declined.

``A weak Philly Fed report would be dire for the dollar,'' said Richard Yetsenga, a currency strategist in Hong Kong at HSBC Holding Plc. ``Any case for the Fed being more aggressive would be done, and it could raise the possibility of the Fed pausing.''

Fed policy makers two weeks ago raised their target interest rate to 3 percent, the eighth increase since June, and maintained their pledge to keep boosting rates at a ``measured'' pace. The European Central Bank has left its benchmark at 2 percent since June 2003 and the Bank of Japan has kept borrowing costs near zero for more than four years.

The Philadelphia Fed's manufacturing index will fall to 17.3 from 25.3 last month, based on the median estimate of 57 economists surveyed by Bloomberg News. The New York index fell to minus 11.1, the lowest in two years, from 2.0 in April.

http://www.bloomberg.com/apps/news?pid=10000101&sid=aKzFXQi5JLx0&refer=japan

and this...

Philly manufacturing slows
Philly Fed index falls to 2-year low of 7.3

The Philly Fed index fell to 7.3 from 23.5 in April, the lowest since June 2003. Earlier in the week, the New York Fed said its Empire state index fell to negative 11.1 in May, the first negative reading in two years.

Economists were expecting the Philly index to slide to 17.9 in May, according to a survey conducted by MarketWatch.

Readings above zero in the diffusion index indicate expansion in activity. The index measures the breadth of economic activity across firms.

In May, 55.3% of firms surveyed said business was the same, 25.9% said business was better, and 18.6% said business was worse.

Most of the subindexes fell in May, but remained in positive territory, indicating growth in the sector continues, but at a slower pace.

Expectations for growth in the next six months fell to their lowest level since the beginning of the recession in March 2001. However, a plurality of 40.3% of manufacturing firms expect to grow.

http://www.marketwatch.com/news/story.asp?guid=%7BF7A629CB-2A38-4E72-B99F-60D1633FCFD3%7D&siteid=google

So they do confirm each other.

[UpInArms]

63. dollar took a huge bump up after the bad report

Last trade 86.23 Change +0.41 (+0.48%)

Settle 85.82 Settle Time 23:36

Open 85.81 Previous Close 85.82

High 86.29 Low 85.78

Last tick: 2005-05-19 12:07:16 ET
30-min delayed quote.

Up is down, black is white, war is peace.

[htuttle]

59. Anyone understand the relationship between the market and the dollar now?

Last few weeks, maybe longer, it seems like when the dollar goes down, the Dow goes up and vice versa. I don't know if the movement is spurred by the dollar or by the market, but they seem to be moving in opposite directions lately.

Anyone know why this might be? I'd think that they'd move together for some reason.

:shrug:

[UpInArms]

61. there's quite a bit of disconnet these days

the dollar is doing a bizarre dance - anything in the market that points to rate increases drives it up - anything negative to that causes it to fall - but if it falls too (various opinions on that number) it appears to get support from foreign central banks - now the important data for it seems to revolve around how many central banks are supporting it by buying treasuries.

the market on the other hand is just plain stupid - (jmho)

:hi:

[UpInArms]

67. 1:00 EST numbers (happy happy joy joy!)

Dow 10,469.91 +5.46 (+0.05%)
Nasdaq 2,039.91 +9.26 (+0.46%)
S&P 500 1,188.71 +3.15 (+0.27%)
10-Yr Bond 4.100 +0.32 (+0.79%)

NYSE Volume 946,814,000
Nasdaq Volume 919,452,000

[UpInArms]

69. Treasury's Snow taps Wethington for China envoy

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38491.5418474306-835648307&siteID=mktw&scid=0&doctype=806&property=symb&value=&categories=&

WASHINGTON (MarketWatch) -- Treasury Secretary John Snow appointed Olin Wethington as special envoy to China on Thursday, a post in which he will press the Bush administration's case for exchange rate and market reform. Wethington, currently special counsel to Snow for economic reconstruction in Iraq and Afghanistan, will "make clear" to the Chinese the administration's positions on currency flexibility and other economic issues, Treasury spokesman Tony Fratto said. Tuesday, the Bush administration said China needs to move to a more flexible exchange rate or be designated as a currency manipulating country. Wednesday, it added more textile products from China that it would apply quotas to.

[UpInArms]

79. U.S. names new China envoy to pursue forex reform

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8547498§ion=investing

WASHINGTON, May 19 (Reuters) - The U.S. Treasury department said on Thursday that it was naming Olin Wethington as special envoy to China with a mandate to step up efforts to get Beijing to adopt a more flexible currency.

He will take over from Paul Speltz, the U.S. executive director at the Asian Development Bank who has held the position for the past 13 months. Treasury spokesman Tony Fratto said Wethington, who also continues in his role as a counselor to Treasury Secretary John Snow, will have a broader role than Speltz's.

"His role will be to make clear our seriousness (about) why the Bush administration believes that it's in China's best interest and in the interest of the greater global economy that China implement sound economic reforms and to encourage the implementation of those reforms, including currency flexibility," Fratto said.

The Bush administration is stepping up its efforts to persuade Beijing that it should let its yuan currency, also called the renminbi, appreciate in value against the U.S. dollar.

<snip>

The selection of Wethington, who has a history of working in hot spots including overseeing economic recovery activities in Afghanistan and Iraq, reflects an apparent wish to ratchet up the urgency for China to act.

...more...

"We need that dollar to crash - NOW!" Huh?

[loudsue]

73. Ozy....That toon is too true to be funny!

I don't often copy cartoons and forward 'em, but this one is going out to the e-mail list!

:loveya: Thanks again, Marketeers, for keeping us informed!! :applause:

:kick::kick::kick:

[ozymandius]

75. Thanks loudsue!

It's always a treat to get a thumbsup from you.

:hi: Ozy

[UpInArms]

74. a side of blather

1:00PM: More of the same, as stocks remain mired in relatively tight trading ranges... The dollar, however, has resumed its move to the upside against the euro (1.2630), as the interest rate outlook in the European region remains flat and U.S. rates are moving higher... The yen (107.54) has been weak as Japan continues to see outflows of foreign investments...NYSE Adv/Dec 1802/1304, Nasdaq Adv/Dec 1537/1378

12:30PM: Major indices pull back a bit following a disappointing read on regional manufacturing activity... At the top of the hour, investors got this week's last piece of economic news when the Federal Reserve Bank of Philadelphia stated that, "Activity in the region's manufacturing sector continued to expand, but at a slower rate than in April."... The May Philadelphia Fed index, which checked in at 7.3 (consensus 18.0), was being closely watched after the NY Empire index checked in three days ago at its lowest level since April 2003...

Treasurys have also slipped slightly, as the 10-year note is now off 2 ticks to yield 4.09%... NYSE Adv/Dec 1709/1358, Nasdaq Adv/Dec 1500/1361

[UpInArms]

81. 2:08 EST numbers and blather

Dow 10,445.83 -18.62 (-0.18%)
Nasdaq 2,033.90 +3.25 (+0.16%)
S&P 500 1,185.80 +0.24 (+0.02%)
10-Yr Bond 4.099 +0.31 (+0.76%)

NYSE Volume 1,145,553,000
Nasdaq Volume 1,133,557,000

2:00PM: Major indices spike lower as a state of emergency is declared at Israel's international airport... Within the last 15 minutes, stocks have sold off amid reports about technical difficulties (i.e. landing gear/lights) on an inbound Airbus flight from Turkey... Even though the plane has landed safely in Israel, the market is still struggling to recoup recent losses...NYSE Adv/Dec 1917/1244, Nasdaq Adv/Dec 1588/1373

1:30PM: Market rebounds some but not nearly enough to make a significant change in the standings... Contributing to a modest swing in sentiment has arguably been renewed buying interest in the influential Financial sector, which has recently turned positive... Pacing the way higher has been Morgan Stanley (MWD 49.87 +0.95), which has reaffirmed its intention to appeal the recent Sunbeam verdict...

Yesterday, a Florida state court decided Morgan Stanley must pay Ronald Perelman $1.45 bln in punitive damages, an amount roughly equivalent to the value of Perelman's stake ($1.5 bln) in Coleman, which was sold to Sunbeam in 1998... NYSE Adv/Dec 1938/1190, Nasdaq Adv/Dec 1627/1300

I wonder if investors "want" to hold stock over the weekend? Sheesh!

(updated blather on edit)

[ozymandius]

84. That phrase always rubs me like a thorn thicket.

"Holding on" to stocks as though a person's going to pull a plow in a hairshirt over the weekend.

[UpInArms]

85. I just find it interesting that such a short-term mentality

even exists in an "investment" situation.

:shrug:

And here's a question: why would stocks drop because a airliner had landing gear issues?

[ozymandius]

87. any reason whatsoever to run to the competition

It's the herd mentality again. I know this makes no sense to sensible people like you and me. But if it can happen to one Airbus, well...

I wonder if Boeing has outsourced its landing gear manufacture to the same company as Airbus? Was it the mechanic's fault? Who knows? Lemmings don't care.

:shrug:

[ozymandius]

86. 2:30 numbers are the stuff of fairy tales

Dow 10,468.64 +4.19 (+0.04%)
Nasdaq 2,039.26 +8.61 (+0.42%)
S&P 500 1,188.34 +2.78 (+0.23%)
10-Yr Bond 41.00 +0.32 (+0.79%)

NYSE Volume 1,228,744,000
Nasdaq Volume 1,226,289,000

[ozymandius]

88. like watching hair grow

2:56
Dow 10,464.37 -0.08 (-0.00%)
Nasdaq 2,035.58 +4.93 (+0.24%)
S&P 500 1,187.72 +2.16 (+0.18%)
10-Yr Bond 41.04 +0.36 (+0.88%)

NYSE Volume 1,342,644,000
Nasdaq Volume 1,332,448,000

[ozymandius]

90. Your latest up-is-down figures:

3:05
Dow 10,481.66 +17.21 (+0.16%)
Nasdaq 2,038.60 +7.95 (+0.39%)
S&P 500 1,189.44 +3.88 (+0.33%)
10-Yr Bond 41.02 +0.34 (+0.84%)
NYSE Volume 1,377,620,000
Nasdaq Volume 1,370,496,00

[UpInArms]

95. 3:21 EST faeries are flying toward 10,500 for the weekend

maybe they will get overflight bonuses :eyes:

Dow 10,485.49 +21.04 (+0.20%)
Nasdaq 2,040.45 +9.80 (+0.48%)
S&P 500 1,190.31 +4.75 (+0.40%)
10-Yr Bond 4.108 +0.40 (+0.98%)

NYSE Volume 1,457,342,000
Nasdaq Volume 1,440,563,000

3:00PM: Not much changed in the last half hour, as split industry leadership continues to dictate late-day action... Meanwhile, Retail (+0.4%) has been a focal point today following a slew of upbeat earnings reports... Shares of Men's Wearhouse (MW 49.25 +5.20) have touched an all-time high after it beat Q1 expectations by $0.16, issued upside Q2 and FY06 guidance and announced a 3-for-2 stock split...

Other retailers catching a bid following better than expected quarterly earnings have been PSS (+15.6%), PLCE (+1.8%), SMRT (+9.1%), GYMB (+17.5%) and AAP (+6.2%), with the latter igniting interest in competing auto parts retailers like AZO (+1.8%), PBY (+2.9%) and CAO (+2.4%)... NYSE Adv/Dec 1774/1426, Nasdaq Adv/Dec 1461/1557

[nolabels]

94. It's all undercover stuff

:tinfoilhat::tinfoilhat::tinfoilhat::tinfoilhat::tinfoilhat::tinfoilhat::tinfoilhat::tinfoilhat::tinfoilhat::tinfoilhat::tinfoilhat::tinfoilhat::tinfoilhat::tinfoilhat::tinfoilhat:

http://www.sillyjokes.co.uk/dress-up/wigs/bald-skullcap.html

[ozymandius]

96. HA!

That's "the look" I'm looking for. :rofl:

[UpInArms]

92. OfficeMax will pay to settle false claims case

http://www.reuters.com/financeNewsArticle.jhtml?type=governmentFilingsNews&storyID=8547707§ion=investing

WASHINGTON, May 19 (Reuters) - OfficeMax Inc. (OMX.N: Quote, Profile, Research) has agreed to pay $9.8 million to settle charges that it sold the government office supplies from countries not permitted by U.S. law, the Justice Department said on Thursday.

The government contended that OfficeMax violated the false claims laws by billing agencies for supplies made in countries that do not have reciprocal trade agreements with the United States, the department said.

...very short newsblurb...

[UpInArms]

93. US may shorten check turnaround rules-Fed's Olson

http://www.reuters.com/financeNewsArticle.jhtml?type=governmentFilingsNews&storyID=8547678§ion=investing

CHICAGO, May 19 (Reuters) - The U.S. Federal Reserve is monitoring whether banks, which have benefited from electronic payment systems for checks, should speed up fund availability turnaround for customers, Federal Reserve Board Governor Mark Olson said on Thursday.

Banks are increasingly adopting technology to take advantage of Check 21, a law that went into effect in 2004 to help banks handle more checks electronically, Olson said in remarks delivered at a Chicago Fed conference on bank payments.

Olson did not make comments on the economy or interest rates in his remarks.

Check 21, which has cut back on the need to physically transfer paper documents among banks, means checks clear more quickly. But consumer groups say banks are not matching that by speeding up how rapidly a customer can draw on a deposited check.

<snip>

"I'll be writing checks until they pry the pen from my cold, dead hand," he quipped during the speech.

...more...

Sounds like Olson does not trust electronic banking :eyes:

[UpInArms]

97. Home Loan Financial sets plan to end SEC reporting

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38491.6393042361-835655640&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Shares of Home Loan Financial Corp. (HLFC) spiked $2.83, or 18%, to $18.70 on news of a plan to end the company's obligation to file reports with the Securities and Exchange Commission. The Coshocton, Ohio-based bank holding company plans to effect a 1-for-600 reverse split on its common shares, to be followed immediately by a 600-for-1 forward split. Shareholders owning fewer than 600 shares prior to the first split would receive $20.75 in cash per pre-split share. The actions would have the effect of lowering the number of HLFC shareholders to below 300, thereby qualifying the company to deregister the shares.

[UpInArms]

99. Gillette ordered to send documents to regulator

http://www.reuters.com/financeNewsArticle.jhtml?type=governmentFilingsNews&storyID=8548215§ion=investing

BOSTON, May 19 (Reuters) - Gillette Co (G.N: Quote, Profile, Research) . will have to turn over e-mails to Massachusetts' top financial regulator for a probe into the shaving company's proposed merger with Procter & Gamble (PG.N: Quote, Profile, Research) , a state judge ruled on Thursday.

Massachusetts Superior Court Judge Allan van Gestel said Gillette has to hand over e-mails its executives sent to UBS Securities and Goldman Sachs -- two firms that advised Gillette on the deal -- to Secretary of State William Galvin's office, Galvin's spokesman Brian McNiff said.

Galvin's office has been investigating the planned deal -- valued at $57 billion when it was announced in January -- to see whether investors are being shortchanged because Gillette may be worth more than P&G plans to pay for it.

More specifically he is investigating whether UBS and Goldman Sachs may have committed fraud when they issued fairness opinions about the price of the planned merger.

...more...

Gosh! That article left out bunches!

Galvin upset over 'glaring omissions' in data from Gillette about P&G deal
Mass. official wants details on job cuts and executive pay

http://www.boston.com/business/globe/articles/2005/02/12/galvin_upset_over_glaring_omissions_in_data_from_gillette_about_pg_deal/

excerpt:

Kilts's compensation has set off a heated debate about whether Gillette was put up for sale for sound business reasons, or whether Kilts was influenced by the prospect of a big payday. An analysis conducted for The Boston Globe by the Wilson Group, executive compensation specialists in Concord, pegged the value of Kilts's payment at $173 million.

As for information about workforce reductions, Kraus said, ''There have been no decisions made about any job cuts at this time."

P&G, the Cincinnati consumer products company, and Gillette have said they expect cuts of 4 percent, or 6,000 jobs, from the combined workforces.

...more...

[UpInArms]

102. final stretch blather

3:30PM: Buyers show some resolve going into the close, as the major indices now trade near session highs... Another turnaround in the influential Financial sector has provided much of the late-day momentum to the upside while a rebound in the Semiconductor space has also lent some support... Less than an hour ago, chip stocks aggressively sold off amid speculation about possible inventory issues at Fairchild Semiconductor (FCS 14.16 -0.35)... NYSE Adv/Dec 1944/1293, Nasdaq Adv/Dec 1549/1472

[ozymandius]

103. final numbers

blather to come
Dow 10,493.19 +28.74 (+0.27%)
Nasdaq 2,042.58 +11.93 (+0.59%)
S&P 500 1,191.08 +5.52 (+0.47%)
10-Yr Bond 4.108% +0.04

NYSE Volume 1,775,901,000
Nasdaq Volume 1,699,532,000

[ozymandius]

104. final blather

Close: Strong follow-through buying interest lifts the indices higher for the fourth consecutive session... Even though blue chips struggled to find much momentum throughout most of the day, in the absence of substantial market-moving data to provide a more definitive tone to trading coupled with the temptation to book some profits following the largest three-day rally since last November, late-day buying efforts prevailed to keep sellers in check...

Arguably the biggest catalyst behind renewed buying efforts was news that, while Fitch Ratings downgraded Ford Motor's (F 10.00 +0.08) debt to BBB, the fact that it is unlikely to move Ford's rating to junk status in 2005 improved overall sentiment and helped eight out of ten economic sectors finish in positive territory... Meanwhile, initial claims, which were compiled during a key week in which the May employment survey was conducted, fell 20K to 321K, indicating continued optimism from businesses about the state of the economy...

But even though economic growth remains strong and the worst fears about inflation have been dispelled by yesterday's encouraging CPI report, a disappointing read on regional manufacturing activity stalled midday buying efforts... The May Philadelphia Fed index checked in at 7.3, well below expectations of 18.0, as "Activity in the region's manufacturing sector continued to expand, but at a slower rate than in April."... But not even improved claims data and a worse than expected Philly Fed figure could help Treasurys find much direction, as the benchmark 10-year note closed down 4 ticks to yield 4.10%...

Have a great evening folks. See you tomorrow!

Ozy :hi:

[54anickel]

105. (Heh-heh-heh) Wal-Mart's armor shows cracks (Target's got 'em)

http://www.chron.com/cs/CDA/ssistory.mpl/business/3188452

NEW YORK - Wal-Mart Stores is facing a new reality: Its customers want more than just the lowest prices.

The world's largest retailer, which only a few years ago could do no wrong, is now suffering from the kind of problems that have plagued weaker rivals like Kmart: cluttered stores, merchandise that turns off shoppers and poor service. Meanwhile, Target Corp., while some six times smaller than Wal-Mart, is setting a new standard for discount retailing.

Wal-Mart's sales growth has sagged, in part because the Bentonville, Ark.-based retailer, while still a low-price leader, doesn't have products on the floor that attract today's shoppers — particularly in apparel, home furnishings and consumer electronics. It also has a problem with slow checkout service, and its stores look uninspiring.

snip>

Howard Davidowitz, chairman of Davidowitz & Associates, a retail consulting and investment banking firm, joined other analysts in saying that rising gasoline prices and job uncertainty have hurt Wal-Mart, prompting lower-income shoppers to spend less at stores. But, he said, "for the past six months, they have dropped the ball. The fact is that Wal-Mart has failed to execute as well as they have always done."

snip>

Buchanan also believes "morale is not as high as it has been" at the company, which has had to defend its business practices from criticism by unions and community activist groups that claim the retailer takes advantage of workers and hampers competition.

more...

[54anickel]

107. Oh Sh*t! UIA, have you seen this one? The next couple of weeks

could get quite bumpy!

Why You'll Feel Hedge Funds' Pain

http://www.thestreet.com/_tsccom/funds/supermodels/10224193.html

snip>

From the time of their invention through the mid-1990s, hedge funds were primarily partnerships limited to investments by rich people that focused on profiting from both positive and negative moves in stocks, bonds, currencies and commodities. There are dozens of different types of specialist funds, but the purpose of most is to provide steadfast returns uncorrelated with the trend of the market on which they focus. The funds' members, or limited partners, pay managers up to a third of the profit for annually delivering the holy grail of investing: great results in good times or bad.

In the early part of this decade, amid a raging bear market, a handful of major corporations -- led by General Motors (GM:NYSE - news - research), ironically enough -- grew concerned that their pension funds would never meet their investment goals if they continued to focus strictly on long-only stock-and-bond strategies. So they directed their pension managers to put billions of dollars on behalf of their retired blue-collar workers into "alternative investments," which is a term of art for hedge funds.

Broadly speaking, pension funds try to maintain a balanced allocation of 60% stocks and 40% bonds. The idea of that split is that they'll get more bang for their buck out of stocks -- and yet if equities are soft, returns will be cushioned by nice, safe bond yields. The problem has been that the Federal Reserve's expansive money policy of the past few years created a financial regime in which bond yields were extremely low -- and yet stock returns haven't been too hot, either.

snip>

Fallout -- and Bankruptcy?
Funds are required by contract to provide "liquidity" -- that is, cash -- to members either at the end of a month or a quarter. So, many in the investment community are holding their breath now, waiting to see how many funds need to liquidate stock and bond portfolios in order to meet a flood of redemptions.

snip>

If we see big up days in the market followed by big down days, you can be sure that funds are using every uptick to unload inventory to meet their obligation and avoid bankruptcy. At times like this, the Federal Reserve and other central banks have learned to flood the system with money to avoid big disruptions. So from now until the end of the month, or quarter, there may be an interesting battle between the private forces of fear and the public forces of balance. Stay tuned: It could be your money.

That would explain the huge repos this week and last

:popcorn:

[RawMaterials]

108. and that concludes another episode of as the dollar turns...

:hi: work sucks right now we are moving, and i have to coordinate the move off all the voice and data lines as well as the computers everyone uses. + all the normal chaos.