STOCK MARKET WATCH, Wednesday 7 December

[ozymandius]

Wednesday December 7, 2005

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 3 YEARS, 46 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 1812 DAYS
WHERE'S OSAMA BIN-LADEN? 1511 DAYS
DAYS SINCE ENRON COLLAPSE = 1473
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
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON December 6, 2005

Dow... 10,856.86 +21.85 (+0.20%)
Nasdaq... 2,260.76 +3.12 (+0.14%)
S&P 500... 1,263.70 +1.61 (+0.13%)
10-Yr Bond... 4.49% -0.07 (-1.60%)
Gold future... 513.80 +1.20 (+0.23%)






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 Ike Iossif - WEEKLY CHARTS

SUMMARY

Last week we said, "The limited amount of new data, both on the technical, and on the price front coming from last week, allows for only one conclusion; nothing happened last week to change our expectations. We have got to look for the advance to continue until price reaches the 1285-1290 zone for the SP, and in 2280-2300 zone for NASDAQ. At those levels, we ought to get a sharp and short reaction back to support."

This week - Taking into consideration the current technical readings and price pattern, two most likely scenarios for next week would be either a minor pullback and another push upwards, or a continuation of the advance that started on Thursday--assuming oil/bond prices continue to behave. The odds favor slightly the first scenario due to the triple top in the McClellan Oscillators.

more...

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

[ozymandius]

2. Oil Prices Edge Above $60 a Barrel

SINGAPORE - Crude oil futures rose in Asian trading on Wednesday on expectations that cold weather in the U.S. Northeast will boost demand for heating fuels.

-cut-

While cold weather in the United States is expected to raise demand for heating fuel, increased production and sufficient imports could prevent a big spike in prices for now, analysts said.

Traders looked out for the midweek U.S. petroleum inventory report, expected to show rises in distillate and gasoline stocks as refineries revved up production in anticipation of more wintry weather.

more

[UpInArms]

27. Jan Crude @ $59.65 bbl

11:10am 12/07/05 JAN CRUDE FALLS 29C TO $59.65/BRL AFTER U.S. SUPPLY CLIMB

[UpInArms]

54. Jan Crude closes @ $59.21 bbl - Jan NatGas @ $13.70 mln btus

3:03pm 12/07/05 JAN CRUDE CLOSES AT $59.21/BRL, DOWN 73C, OR 1.2%

3:03pm 12/07/05 JAN NATURAL GAS CLIMBS 1.6% TO END AT $13.70/MLN BTUS

3:03pm 12/07/05 JAN HEATING OIL CLOSES DOWN 2%; JAN UNLEADED GAS FALLS 1%

[ozymandius]

3. Today's Reports

10:30 AM Crude Inventories 12/2
Prior -4188K

3:00 PM Consumer Credit for Oct
Briefing Forecast $7.0B
Market Expects $5.0B
Prior -$0.1B

[UpInArms]

20. DOE Petroleum Inventory Report:

10:31am 12/07/05 U.S. CRUDE STKS UP 2.7 MLN BRLS LAST WK: ENERGY DEPT

10:31am 12/07/05 U.S. DISTILLATE STKS UP 2.7 MLN BRLS: ENERGY DEPT

10:31am 12/07/05 U.S. GASOLINE STKS UP 2.7 MLN BRLS: ENERGY DEPT

[UpInArms]

21. API Petroleum Inventory Report

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38693.4461589352-853588154&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- The American Petroleum Institute said crude inventories rose 686,000 barrels for the week ended Dec. 2. Motor gasoline inventories were up 4.5 million barrels, the API said. Distillate stocks climbed 3.6 million barrels. The Energy Department had reported a 2.7 million barrel climb for crude, gasoline and distillate supplies.

[UpInArms]

50. ALERT: Consumer Credit DROPS $7.2 Billion or 4% (OOPSIE!)

3:00pm 12/07/05 U.S. OCT. REVOLVING CREDIT FALLS 2.4%

3:00pm 12/07/05 U.S. OCT. NONREVOLVING CREDIT DROPS 5%, ALSO A RECORD

3:00pm 12/07/05 U.S. OCT. CONSUMER CREDIT FALLS $7.2 BILLION, OR 4%

3:00pm 12/07/05 U.S. OCT. CONSUMER CREDIT POSTS RECORD-MAKING DROP

[UpInArms]

51. U.S. Oct. consumer credit posts record-making drop

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38693.6251260532-853617004&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Consumer credit posted a large, unexpected drop in October, falling by $7.2 billion, according to the Federal Reserve. It was the largest drop since the Fed began keeping records. Economists surveyed by MarketWatch were expecting consumer credit to rise in October, by $3.7 billion. Revolving credit fell by $1.6 billion, or 2.4%, while nonrevolving credit declined 5%, to $5.6 billion.

More "surprised" economists!

[UpInArms]

52. U.S. consumer credit slides $7.20 bln in October

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-07T200014Z_01_WBT004355_RTRIDST_0_ECONOMY-CREDIT-URGENT.XML

WASHINGTON, Dec 7 (Reuters) - U.S. consumer credit unexpectedly slid by a record $7.20 billion in October, on a big drop in loans taken for cars and boats, a Federal Reserve report showed on Wednesday.

The central bank said total consumer debt outstanding fell 4 percent to a seasonally adjusted $2.157 trillion from a revised $2.164 trillion in September. The rate of decline was the steepest since December 1990, and the dollar drop was the largest fall on record, the Fed told reporters.

Wall Street analysts polled by Reuters had expected a rise of $5.0 billion in consumer credit in October.

The Fed said non-revolving credit -- made up of closed-end loans for cars, boats, education expenses and holidays -- fell $5.58 billion in October.

...more...

[ozymandius]

4. It's all nuts to me, Mr Bush (on Bush's dollar stewardship)

-excerpt-

On January 22, 2001, two days after George W. Bush was inaugurated as President of the United States, the price of gold was $265.90 an ounce. Last week the gold price broke through the $500 dollars an ounce level; that means the dollar has been devalued in terms of gold by almost 50 per cent in the four years and ten months of this presidency.

That does not reflect well on Gordon Brown, who as Chancellor sold a large part of Britain’s gold reserve at a price that was way below the present level. It reflects even worse on President Bush. He is ultimately responsible for the management of the dollar. It has halved its gold value on his watch.

The rise in the gold price does not come as a surprise. Many commentators, including myself, had forecast that gold would rise to these levels. My forecast was that gold would reach $500, and when it broke through $500 would move on towards $1,000 an ounce. It would now require a radical change in US financial policy to stabilise the dollar; I do not think such a change is at all likely. So far, President Bush has been very reliable as an agent of dollar devaluation.

There are technical reasons, both on the supply and demand side, that make it probable that the gold price will continue to rise. Yet it was not these technical market reasons that led some of us to forecast the higher price, but the underlying weakness of the financial policy of the United States.

more...

http://www.timesonline.co.uk/article/0,,1052-1904459,00.html

[imported_dem]

5. Peak gold ?

Perhaps the world is running out of the stuff like oil.

[spooked911]

6. a lot of conspiracy sites/end of civilization sites push gold as a hedge

against global uncertainty. Bush certainly has made things more uncertain...

[ret5hd]

13. it doesn't take a conspiracy/armageddon type to realize...

that printing OVER $2Billion a DAY, every DAY, 365 DAYS a YEAR...

is going to devalue the dollar in relation to "other things", so maybe a good investment would be "other things"...
and since every other major central bank is doing the same thing as ours, those "other things" shouldn't be other currencies...

which leaves products...something you can hold. Gold and silver among them.

I don't think a person will get rich buying gold...even if it goes to $5000-oz. Because if that happens, a hamburger will probably cost over $100.

But at least you'd still be able to buy that hamburger.

[dweller]

16. We are Freaking Doomed

http://news.goldseek.com/RichardDaughty/1133363160.php
Some famous guy said something like "You have a choice to either trust government, or to trust gold. And with all due respect to these lying pieces of dog crap who would sell your soul to the devil and strangle you with their bare hands to get re-elected, I recommend that you choose gold, because if you don't, then it shows you are not only a real stupid person who cannot seem to learn from history, but you are so damned stupid that you can't even stop slobbering all over yourself in your stupefied imbecility long enough to even dimly comprehend the concept at all, even when it is being explained to you using very small words, and that is why you will end up being poor and desperate, and your children and your grandchildren will hate you, and try and steal your stuff when they come over, and who are always whining and saying "We are poor because you trusted a fiat currency!" and I will laugh, "Hahahaha!" and say "Exactly, you stupid bastards! That's the lesson! When you let the banks create all that fiat money and credit, and all that debt, it destroys the currency and the economy! And then you suffer like hell! And for a long, long time, too!"

:popcorn:


dp

[ret5hd]

17. i love "The Great Mogambo". (nt)

[UpInArms]

7. daily dollar watch

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

Last trade 91.98 Change +0.54 (+0.59%)

Dollar Bulls Flex Their Horns

http://www.dailyfx.com/index.php?option=com_content&task=view&id=5314&Itemid=39

EUR/USD – Euro remains confined to a narrow 1.1700-1.1863 consolidation range and is beginning to flash warning signals of a potential move to the downside. A move below the 1.1700 handle will most likely see the pair head lower and most likely build momentum as the short-term stops strategically placed below the 1.1700 figure will most likely add to the overall momentum and see the pair accelerate toward 1.1639, the most recent 2005 low. A collapse of the level of such significance will most likely see the pair head lower and test the euro’s bids around 1.1546, an October 17, 2003 daily low, and a gateway toward the psychologically important 1.1500 handle. Indicators are mixed with positive momentum above the zero line and negative MACD sloping upward toward the zero line, while neutral oscillators give either side enough room to maneuver.

<snip>

USD/JPY – Japanese Yen remains in a trend mode, but is beginning to show signs of a potential deterioration as the pair continues to reject the offers above 121.00 handle. As the pair remains above the psychologically important 120.00 handle, any potential weakness might signal a prime shorting opportunity with a close below the 120.00 figure issuing a confirming signal that the pair is exhausting the trend that stated at 109.00. A confirmed break below 120.00 level will most likely see the yen longs add to their existing positions and pus the pair toward 119.24, a level established by the November 30 daily low, thus seeing the yen trader sweep clean the greenback stops placed below the 120.00 figure. Indicators remain supportive of the dollar longs with both momentum indicator and MACD treading above the zero line, with ADX above 25 at 40.43 signaling an existence of a trend, not a direction of one, while both overbought RSI and Stochastic add to the trending outlook.

<snip>

USD/CAD – Canadian dollar finally began giving up the territory below the 1.1600 handle after sweeping the cleaning the greenback stops strategically placed below the figure. As the price action reverses direction and begins to favor the US dollar traders, a sustained momentum on the part of the greenback longs will most likely see the pair head higher and test the Loonie bids around 1.1686, a level marked by the October 12 daily low. A break above will most likely see the pair head above the 1.1700 level and sweep the stops placed above the figure thus adding to upside momentum with greenback traders aiming for the Canadian dollar offers around 1.1803, a level established by the November 10 daily low and is protected by the combination of the 20-day and 50-day SMA around the 1.1750-60 zone. Indicators are favoring of the Canadian dollar longs with both momentum indicator and negative MACD below the zero line, while oversold both Stochastic gives the US dollar bulls a chance to retaliate.

...more...

[UpInArms]

40. Fed language shifts could erect dollar roadblock

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-12-07T174659Z_01_N07430558_RTRIDST_0_MARKETS-FOREX-FED.XML

NEW YORK, Dec 7 (Reuters) - The dollar's year-long rally could hit a roadblock if the Federal Reserve changes the language of its post-meeting statement next Tuesday, even though the meeting is expected to produce an interest rate increase that will widen the difference between rates in the U.S. and Europe and Japan, analysts warn.

The dollar has gained more than 15 percent against the euro and the yen in 2005 as 12 fed fund rate increases have boosted the currency's allure to global investors seeking high yields.

But markets are starting to consider the possibility that Tuesday's expected 0.25 percentage point rise in the federal funds rate to 4.25 percent may be followed by only one or two more rises in rates in this monetary policy tightening cycle, and that the Fed may hint at this by altering key language in the statement it releases after each policy meeting.

"On Tuesday, we may see some signs of them changing their statement," said Ronald Simpson, managing director of global currency analysis, with Action Economics LLC in Dobbs Ferry, New York.

"In the bigger picture, the risks are probably turning to the downside for the dollar," Simpson said.

...more...

[UpInArms]

8. Anemic growth seen for Calif. as homes boom fades

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-12-07T085943Z_01_N06340426_RTRIDST_0_ECONOMY-CALIFORNIA-FORECAST.XML

SAN FRANCISCO, Dec 7 (Reuters) - California's soaring home prices will plateau and home sales will slow, but the cooling of the state's torrid real estate market will not tip it into recession, the UCLA Anderson Forecast predicted on Wednesday.

California "will probably not see a full-blown recession" through 2007 as a slowdown in its housing market likely will not coincide with a further drop in factory employment, said economist Ryan Ratcliff.

Manufacturing payrolls in California have been slashed so deeply in recent years that there are not many more jobs to lose, and other parts of the state economy are adding jobs, Ratcliff said.

That leaves California poised to withstand losses in its construction payrolls and post "anemic" growth, according to Ratcliff.

However, if California's housing market slows more than expected, a recession is not out of the question, he said.

Ratcliff expects California's jobless rate this year will average 5.4 percent, compared with 6.2 percent last year, and will average 5.6 percent next year and 6.3 percent in 2007.

...more...

[UpInArms]

9. US home loan applications up as refinancing rebounds

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-07T120522Z_01_N07409234_RTRIDST_0_ECONOMY-MORTGAGES-UPDATE-1.XML

NEW YORK, Dec 7 (Reuters) - U.S. mortgage applications rose for the first time in a month, mostly driven by a strong rebound in home refinancings even as interest rates rose, an industry trade group figures showed on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ended Dec. 2 increased 5.2 percent to 656.7, up from the previous week's 624.1.

Borrowing costs on 30-year fixed-rate mortgages, excluding fees, averaged 6.32 percent, up 0.12 percentage point from the previous week's 6.20 percent.

It was the first increase in three weeks for the 30-year fixed-rate mortgage, the industry benchmark. The rate was substantially above its 2005 low of 5.47 percent in late June.

The group's seasonally adjusted index of refinancing applications rose for the first time in seven weeks, climbing 7.0 percent to 1,596.4 compared to 1,484.3 in the previous week, its lowest level since late June 2004.

...more...

[UpInArms]

10. Housing market continued slide in November: CSFB

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38693.3812374421-853577101&siteID=mktw&scid=0&doctype=806&

BOSTON (MarketWatch) -- Analysts at Credit Suisse First Boston on Wednesday said their monthly survey revealed the housing market continued its downward adjustment in November, noting that while "it is difficult to get a definitive read on a market during the slow winter months . . . prices are climbing in only select markets and price points, incentives are more prevalent than is seasonally typical, and demand from investors is abating or shifting to lower cost areas like Texas." As several markets cool off, "it appears that the ramifications of the speculative euphoria in 2004 and 2005 are starting to materialize, as inventories have crept up concurrent with slowing home price appreciation," the analysts wrote in a research note. "With interest rates on the rise and mortgage scrutiny gaining traction, we expect the market to continue its downward adjustment, but should know with more certainty after the seasonally slow winter months," CSFB said.

[UpInArms]

28. Housing Slowdown May Claim 800,000 Jobs

http://abcnews.go.com/Business/wireStory?id=1381534

LOS ANGELES Dec 7, 2005 — A sustained decline will hit the U.S. housing market next year, costing the nation as many as 800,000 jobs, according to a new economic report released Wednesday.

The slowdown is likely to last several years, with as many as 500,000 construction jobs and 300,000 financial sector positions lost, the quarterly Anderson Forecast predicted.

"We expect housing to start slowing the economy this quarter or the next," said Edward Leamer, director of the study done at the University of California, Los Angeles.

<snip>

"Some jobs in manufacturing might well disappear as a result of weakness in housing, but this may be offset by jobs brought home or not lost to foreign competition," he wrote.

The forecast said eight of the last 10 economic recessions were started by housing market slowdowns. Though the coming cooldown will cause a drag on the nation's economy, it will fall short of triggering a recession, the forecast said.

...lots more...

[UpInArms]

30. Analysts see housing-market decline looming in 2006

http://www.marketwatch.com/news/story.asp?guid=%7BB098587F%2DDE62%2D43E4%2DAE1D%2DDF5442621465%7D&symbol=&siteid=mktw

BOSTON (MarketWatch) -- Homebuilder stocks were in retreat Wednesday morning after several reports pointed to a pullback in the housing market next year.

The U.S. market for homes will experience a significant drop-off in 2006, according to UCLA's Anderson Forecast to be released Wednesday, the Associated Press reported.

The decline in the housing market will probably take place over several years and as many as 500,000 construction jobs and 300,000 financial-sector jobs will likely be lost, AP said. The pullback will hurt the nation's economy but will not cause a recession, the news service reported, citing the Anderson Forecast.

Also Wednesday, analysts at Credit Suisse First Boston on Wednesday said their monthly survey revealed the housing market continued its downward adjustment in November, noting that while "it is difficult to get a definitive read on a market during the slow winter months . . . prices are climbing in only select markets and price points, incentives are more prevalent than is seasonally typical, and demand from investors is abating or shifting to lower cost areas like Texas."

As several markets cool off, "it appears that the ramifications of the speculative euphoria in 2004 and 2005 are starting to materialize, as inventories have crept up concurrent with slowing home price appreciation," the analysts wrote in a research note.

...more...

[AnneD]

48. I predict..

more 'surprised' economists :eyes:

[UpInArms]

11. Ford Motor to eliminate up to 30,000 jobs: report

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38693.3757549306-853576038&siteID=mktw&scid=0&doctype=806&

NEW YORK (MarketWatch) -- Ford Motor Co. (F) will unveil a restructuring plan later Wednesday that calls for the elimination of up to 30,000 jobs within five years, according to the Detroit News. The paper said Ford's board plans to announce the closing of at least 10 assembly and component plants as part of the restructuring. The stock closed Tuesday at $8.11, up a nickel.

[UpInArms]

15. Ford turnaround plan may include 30,000 job cuts

http://www.jsonline.com/bym/news/dec05/375891.asp

Dearborn, Mich. - Ford Motor Co. executives plan to present a restructuring plan to the company's board of directors today that calls for closing at least 10 assembly and component plants and eliminating 25,000 to 30,000 hourly jobs in North America within five years, according to people familiar with the plan.

The planned cuts are deeper than many expected, signaling the urgency of Chairman and CEO Bill Ford Jr.'s push to restore the automaker's ailing North American operations.

Bill Ford has promised the impending cuts, expected to be announced Jan. 23, will affect all levels of the company. The automaker will announce the departure of as many as seven top executives by Jan. 23, according to those familiar with the plan.

The broad outlines of Ford's plan - dubbed the "way forward" - were approved by directors during an off-site meeting in October with top executives in South Carolina.

In meetings today and Thursday, Mark Fields, Ford's new president of the Americas division, will walk board members through the fine points, including budget projections for 2006 and 2007, capital expenditure requests and other details. He also will present his blueprint for revitalizing the Ford, Mercury and Lincoln brands, which includes a new strategy to attract young buyers to Ford products.

...more...

[ozymandius]

12. pre-open blather

9:13AM: S&P futures vs fair value: +0.8. Nasdaq futures vs fair value: +2.0.

9:00AM: S&P futures vs fair value: +0.7. Nasdaq futures vs fair value: +2.0. Futures trade continues to suggest that the indices will start the session near the flat line. Along with rising energy prices and anticipation of the latest crude inventories report, the Treasury market's return to the red serves as an overhang. The benchmark 10-year note, presently off six ticks, yields 4.51%. An upgrade-induced rise in CSCO shares lends some offsetting upside. Positive comments from Prudential regarding McDonald's (MCD), Briefing.com's newest recommendation for active investors, and a management change at GM may help direct some attention to blue chips.

8:30AM: S&P futures vs fair value: +0.5. Nasdaq futures vs fair value: +1.0. The cash market remains poised for a lackluster open. As investors digest some news within the tech arena, that sector may be a focal point today. Microsoft (MSFT) lost its antitrust suit in South Korea, and also announced today plans for further investment in India. Meanwhile, the company's advertising alliance with Time Warner's (TWX) AOL continues to occupy headlines. Cisco (CSCO) was upgraded to Overweight from Neutral at JP Morgan, and ATI Technologies (ATYT) was mentioned positively in Digitimes. Perhaps most significantly, the market awaits Texas Instruments' (TXN) mid-quarter update, scheduled for after the bell.

[Tace]

14. MOGAMBO GURU: 'America; A Nation Of Morons!'

Richard Daughty, the angriest guy in economics
email: [e-mail]

Last Friday is now known, around here anyway, as The Day The Mogambo Finally Lost It Completely. That was the day I found out about the latest horrific happenings at the Federal Reserve. I don't remember much about it, but I do remember that my eyes felt like they exploded from their sockets, as if in an Itchy and Scratchy cartoon, when I read that Total Fed Credit went up by an astonishing $6.2 billion last week. This is literally the "money and credit from thin air" of fabled story and song, and I am sure that as good little Mogambo Scouts (MS) you have joyfully sung many, many of the campfire tunes from the Official Mogambo Scout Songbook (OMSS), such as the popular "Give control of our money to the Fed and pretty soon it's dead, cha cha cha," or that old favorite "The Fed killed my money and now it’s killing me," which is, of course, sung as a dirge. In fact, ALL the songs in the OMSS are dirges. And the reason for that is that the consequences of creating so much credit, which becomes both a new debt and new money, is that prices will rise as all that money, that luscious, luscious money -- money that I'll never have because I am lazy and stupid and have a family that tries to fill a void in their pathetic, miserable lives caused by having a distant and hateful husband or father (that they blame for everything) by buying stuff -- will all seep into the prices of things, as there is (as my voice rises to a fever pitch) nothing else that can be done with money except increase demand for something by spending it on buying something!

That is why I nervously laugh the laugh of The Mogambo in full panic mode (LOTMIFPM) to glom a headline in Friday's Wall Street Journal that read, "Nikkei, Gold Hit Milestones; Dow Nears One." At first glance, it seems like such pleasant news. You think to yourself, "Ahh! People have more money! How nice for the economy!" But suddenly your blood turns cold when you read the sub-head: "Japan's strengthening economy and market overhauls propel stock Index to close above 15,000." What? Hey! Bonehead! I just told you in the previous paragraph, and so it should be still fresh in your young grasshopper mind, that all this money that the Fed is creating, and all the money that foreign banks are creating in response and emulation, has to be spent by the government on something! If not, then why in the hell is someone borrowing the damned money in the first place? And it has to, eventually, percolate through the economy and wind up in someone's pocket, and they have to put lots of it into stocks and bonds because there is just so damned much of it!

But this is not about how mysterious strangers are borrowing so much money, or how mysterious strangers are tapping my phone or lurking outside my house, but let me merely go out there with an AK-47 assault rifle and "hose down" a clump of suspicious bushes, and they will twist it all around so it is ME that gets in trouble for it! But the point is, instead, that the Japanese stock market went up for the same reason that the U.S. market is going up, and that is because the governments are borrowing and spending enormous amounts of cash, and the Federal Reserve is creating enormous amounts of cash to buy the enormous amounts of new government debt being created. And then this money eventually seeps into pockets, and then what do you do with it? Well, what other market is so big, so huge, so complicated, so diffuse, so liquid, so secretive, so willingly compliant, that can absorb so freaking much money EXCEPT the stock market and the bond market?

And speaking of humongous mountains of money, the national debt exploded again, jumping $11 billion IN ONE FREAKING DAY on Dec. 2. In one day! And then people want to know why I am so freaked out that I cannot eat, and I cannot sleep, and I keep screaming and shooting that damned pistol of mine at anything that moves all night long, and one of these days someone is going to get hurt and blah blah blah.

more

http://worldnewstrust.org/modules/AMS/article.php?storyid=1799

[UpInArms]

18. Printing Press Report:Fed adds reserves via overnight, 28-day system repos

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-07T144049Z_01_N07347895_RTRIDST_0_MARKETS-FED-OPERATIONS.XML

NEW YORK, Dec 7 (Reuters) - The Federal Reserve said on Wednesday it added temporary reserves to the U.S. banking system through overnight and 28-day system repurchase agreements.

The benchmark federal funds rate last traded at 4 percent, the Fed's current target for the overnight lending rate.

Further details of the operation are available at: http://www.ny.frb.org/markets/omo/dmm/temp.cfm

[UpInArms]

19. Treasuries slump, retrench part of Tuesday's gains

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-07T145232Z_01_N07196533_RTRIDST_0_MARKETS-BONDS.XML

NEW YORK, Dec 7 (Reuters) - U.S. Treasury debt prices eased on Wednesday as traders booked profits on Tuesday's gains and pushed prices lower ahead of the sale of $13 billion in five-year Treasury notes.

Benchmark 10-year notes were down 6/32 for a yield of 4.51 percent from 4.49 percent late on Tuesday, while two-year notes were off 1/32 in price to yield 4.42 percent from 4.40 percent.

"We are seeing a small retrenchment from yesterday and we do have supply today with the five-year auction," said William John, director and co-head of U.S. Treasury trading at Barclays Capital in New York, adding "after yesterday's rally we are seeing some softness into the auction."

Traders noted that the Treasury's last auction of five-year notes did not attract much foreign interest. That sale, of $13 billion of debt in early November as part of the Treasury's quarterly refunding, drew poor demand from indirect bidders and prices fell.

...more...

[UpInArms]

42. Treasuries fall before auction of 5-year notes

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-12-07T175829Z_01_N07456316_RTRIDST_0_MARKETS-BONDS-UPDATE-1.XML

NEW YORK, Dec 7 (Reuters) - U.S. Treasury debt prices erased some of the previous day's gains on Wednesday as the market eased ahead of a $13-billion five-year Treasury note auction.

<snip>

"Prices are lower and the curve is steeper," said John Canvan, market analyst at Stone and McCarthy Research Associates. "A lot of it is a reversal of yesterday's trade, but we're also looking at a market that is preparing to settle in before next week's FOMC (monetary policy) meeting."

"After yesterday's rally we are seeing some softness into the auction," said William John, director and co-head of U.S. Treasury trading at Barclays Capital in New York.

Traders noted that the Treasury's last auction of five-year notes -- $13 billion were sold nearly a month ago as the second part of the Treasury's three-part quarterly refunding -- did not attract much foreign interest. After those notes drew poor demand from indirect bidders, U.S. Treasuries prices fell.

<snip>

But indirect bidders, which include customers of primary dealers and foreign central banks, bought only $2.69 billion, or 20.7 percent, of those five-year notes, below the 39.2 percent average at previous five-year note auctions this year.

...more...

[UpInArms]

22. US Nov layoff plans rise due to auto sector-survey

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-07T150005Z_01_NYA000004_RTRIDST_0_ECONOMY-LAYOFFS-CHALLENGER-URGENT.XML

NEW YORK, Dec 7 (Reuters) - Planned U.S. layoffs in November were the highest since July as the automotive sector led all industries in job cuts, a report said on Wednesday.

November job cuts surged to 99,279, up 22 percent from 81,301 in October, said Challenger, Gray & Christmas Inc., an employment consulting firm. However November's planned cuts are 5 percent less than the 104,530 announced in November 2004.

Job cuts announced in July totaled 102,971.

"Downsizing in the auto industry is expected to continue well into the new year, as companies try to bring production capacity in line with the reality of the market," John A. Challenger, the company's chief executive, said in a release.

The automotive industry led November with 16,870 planned layoffs. Autos led all industries for the year with 105,886 job cuts, nearly 11 percent of all cuts announced this year.

"This, of course, will affect everyone down the line in the supply chain. In fact, nearly half of the auto industry job cuts in November occurred at the supplier level," Challenger said.

...more...

[UpInArms]

23. 11:01 EST numbers and blather (nobody's happy)

Dow 10,834.29 -22.57 (-0.21%)
Nasdaq 2,253.15 -7.61 (-0.34%)
S&P 500 1,260.45 -3.25 (-0.26%)
10-Yr Bond 4.519 +0.25 (+0.56%)

NYSE Volume 597,690,000
Nasdaq Volume 554,707,000

10:35AM: The EIA has released last week's energy inventory statistics. Crude oil supply unexpectedly rose 2.72 mln barrels (analysts expected a 1.9 mln barrel slide), while gasoline inventories rose a better than expected 2.74 mln barrels (a 1.05 mln barrel build had been forecasted) and distillate supply also increased a more than estimated 2.74 mln barrels (versus an expected 1.75 mln barrel rise). The price of crude immediately dropped into the red, but has since bounced back to $60 per barrel. Though they've crawled upwards after the bullish data, the indices remain on negative turf. NYSE Adv/Dec 1277/1561, Nasdaq Adv/Dec 1200/1366

10:00AM: Lacking leadership, the stock market has dropped into the red. Nine of ten economic sectors exert early losses - with Financial's 0.4% loss leading the way lower and challenging the sole gain offered by Energy (+0.7%). Weakness within the former sector is wide-spread, leaving more than 80% of the S&P's financial issues on losing ground. The Treasury market's return to the red serves as a bearish backdrop for the rate-sensitive sector as well as for the broader market. The 10-year, down five ticks, currently yields 4.50%. Five-year (-02/32) and 30-year notes (-11/32) respectively offer 4.42% and 4.70%. The declines follow yesterday's biggest one-day rally for 10-year notes in three weeks, which had been spurred by data that showed labor costs fell last quarter.

[UpInArms]

24. Wells Fargo extends deferrals for Katrina victims

I'm going to offer a speculation on this:

These banks do not want to foreclose on these damaged properties. As soon as that happens, those loans are no longer "assets" - REO is defined as a liability - requiring the payment of taxes, maintenance, repairs, etc.

I have no idea of the numbers involved, but it could put the S&L debacle to the test of number of bank failures. :eyes:

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-07T154149Z_01_N07206535_RTRIDST_0_FINANCIAL-WELLSFARGO-KATRINA.XML

NEW YORK, Dec 7 (Reuters) - Wells Fargo & Co. (WFC.N: Quote, Profile, Research), the No. 2 U.S. mortgage lender, said it will give mortgage customers affected by Hurricane Katrina an additional 90 days to make payments.

The deferral, announced late Tuesday, is the bank's second since the storm hit the U.S. Gulf Coast on Aug. 29. Wells Fargo, which is also the fifth-largest U.S. bank, said it has been unable to reach some customers who have left the affected region.

The bank said it will not assess late fees, file negative credit reports or place collection calls during the new deferral period. It also said it won't require customers to resume payments or make lump sum payments if circumstances make it "impossible" for them to do so.

Katrina flooded much of New Orleans and caused widespread devastation in Louisiana, Mississippi and Alabama. Risk modelers have said the storm caused as much as $60 billion of insured damage.

...more...

[AnneD]

36. Morning Marketeers,

:donut: This Bush Admin is a foul cancer that has not only killed area that it has invaded, it continues to metastasize. They have lied about the number of dead, obscure the number of missing (and presumed dead), and have drug their feet in providing the basics to fellow Americans all the while threatening to cut off assistance. The best stats I have gotten put the number of missing at over 6,000. Returning citizens continue to find loved ones bodies in FEMA searched houses. That is what they have done to NOLA and the rest of the Gulf Coast.
Add the corruption of FEMA to the fact that many of these home owner will be screwed over by their ins companies. The companies have donated so much money to the GOP that they will never be made to do what's right. Yeah, let the banks try to foreclose. Let them try to get payment out of that missing home owner.
I can only imagine what they have done to the economy. My understanding of economics might BE puny, but I know what I see here on the ground near NOLA. If this is ANY indication....we are so screwed. We cannot survive even another year of Bush.
Sorry for the down post, I have been in such a blue funk as we start getting more info ....

[UpInArms]

25. Feb Gold @ $518.80 oz

11:01am 12/07/05 FEB GOLD TAPS A HIGH OF $520.30, HIGHEST SINCE FEB 1983

11:01am 12/07/05 FEB GOLD LAST UP $5, OR 1%, AT $518.80/OZ

[UpInArms]

41. Momentum Polishes Gold; Mind the Dollar

http://www.thestreet.com/comment/richardsuttmeier/10256016.html

Commodity speculation and the strong dollar have been major stories in 2005: The price of Comex gold is trading above $500 per ounce for the first time in 18 years, and tested the February 1983 high of $514 this morning. Crude oil futures on the Nymex soared to $70.85, an all-time high, on Aug. 28, just as Hurricane Katrina was about to make landfall. And the strong euro turned on a dime just as 2005 began.

I believe the higher gold price is not just a sign of inflationary pressures. Gold is becoming an asset class of choice for petrodollars, and central banks are increasing their gold reserves on global currency concerns. To me, high gold prices warn that financial assets are vulnerable in 2006. The dollar bottomed at the end of 2004 and could top out by the end of 2005 as global investors get nervous about the growing U.S. budget and trade deficits.

How big a warning? Let's start with a look at the CRB to create the context for commodities, then review each segment and some possible trades on the trends there: gold, oil and the dollar.

<snip>

The dollar traded to a new 52-week high against the Japanese yen last Friday at 121.22, above 120.00 for the first time since August 2003. It's now around 120.45. My monthly and semiannual pivots are 118.77 and 117.37, with weekly resistance at 122.04.

If the dollar changes direction in 2006, conglomerates are likely to benefit from its weakening.

...more...

[UpInArms]

45. Gold prices finish near a 23-year high - $517.80 oz

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38693.5943549421-853612045&siteID=mktw&scid=0&doctype=806&

SAN FRANCISCO (MarketWatch) -- February gold tapped a high above $520 an ounce to trade near its highest level since early 1983 before closing at $517.80, up $4 for the session. March silver rose to an 18-year high of $8.945 an ounce, then closed at $8.877, up 8.5 cents. Other metals gained as well, with January platinum up 0.4% to close at $998.30 an ounce and March copper up 2.2% to finish at $2.0315 a pound.

[UpInArms]

26. U.S. mortgage bond prepayments slide in November

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-12-07T163202Z_01_N07404705_RTRIDST_0_FINANCIAL-PREPAYMENTS.XML

NEW YORK, Dec 7 (Reuters) - Rising U.S. mortgage rates and a seasonal slowdown in housing turnover triggered a double-digit slump in November mortgage bond prepayments, Wall Street analysts said on Wednesday.

Net mortgage-backed securities issuance jumped, meantime, as borrowers refinanced into longer term fixed-rate loans from hybrid and adjustable-rate mortgages, analysts said.

Overall fixed-rate agency prepays fell by 14 percent last month as paydowns fell to $45 billion from October's $52 billion, according to JP Morgan. About $23 billion of fixed-rate mortgage-backed securities were issued, pushing net issuance this year to $91 billion.

<snip>

The pace of prepayments is key for investors to gauge the value of their mortgage holdings. Returns can deteriorate if prepayments rise or fall beyond forecasts.

<snip>

"The trend is almost certainly a byproduct of a general softening in the housing market; at the very least a slowing in the pace of home price appreciation," according to JP Morgan.

...more...

[UpInArms]

29. Calpine seeks restraining order on default notice

http://today.reuters.com/PrinterFriendlyPopup.aspx?type=bondsNews&storyID=uri:2005-12-07T164837Z_01_N07196240_RTRIDST_0_UTILITIES-CALPINE-UPDATE-4.XML

NEW YORK, Dec 7 (Reuters) - Debt trustees have served Calpine Corp. <CPNL.PK> with a notice saying the company faces default on $3 billion in notes unless it immediately repays almost $312 million that it improperly spent to buy fuel.

Calpine asked a Delaware court to issue a temporary restraining order preventing the trustee, Wilmington Trust Corp., from enforcing the default notice, saying it would trigger other defaults and irreversibly damage the company.

Analysts and legal experts agree that a default would lead to an almost immediate bankruptcy filing by Calpine, one of the biggest U.S. power generators, which has been struggling under $17 billion in debt and weak power markets since the California energy crisis of 2000-2001.

"Calpine is in such bad shape right now, I don't know why they don't take what now seems to be the inevitable step of filing for Chapter 11 (bankruptcy). If anything it would give them an advantage," said Antony Sabino, a professor of law and business at St. John's University in New York.

The Delaware Court of Chancery has ruled that Calpine misspent asset sale proceeds of almost $312 million to buy natural gas to fire its plants, instead of buying back debt or buying other specific assets, and has given Calpine until Jan. 22 to repay the money.

<snip>

Credit experts said Calpine's gas suppliers would be watching the situation closely and would be unlikely, given the circumstances, to sell Calpine more gas on credit.

...more...

Ruh-roh :scared:

Could get a bit hairy, Mr. Bishop (thanks to Charles Bronson and The Mechanic)

[UpInArms]

43. Del. Supreme Court oks fast appeal in Calpine case

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-07T175413Z_01_N07234200_RTRIDST_0_UTILITIES-CALPINE-EXPEDITED-URGENT.XML

NEW YORK, Dec 7 (Reuters) - The Delaware Supreme Court on Wednesday granted an expedited hearing in Calpine Corp.'s (CPNL.PK: Quote, Profile, Research) appeal of a lower-court ruling that it misspent certain funds to buy gas and has to repay almost $312 million.

The court scheduled oral arguments in the case for Dec. 15.

[UpInArms]

31. 12:13 EST numbers and blather

Dow 10,842.05 -14.81 (-0.14%)
Nasdaq 2,254.43 -6.33 (-0.28%)
S&P 500 1,260.26 -3.44 (-0.27%)
10-Yr Bond 4.521 +0.27 (+0.60%)

NYSE Volume 916,430,000
Nasdaq Volume 812,895,000

12:00PM : Despite a bullish energy inventory report from the EIA, the indices hang onto modest losses and remain within the red range that started the session. Crude futures have halted their six-day trek north and dropped below $60 per barrel, but the broader market appears to overlook today's action. Better than expected builds in crude oil, gasoline, and distillates have, at this point, done little besides revoking the Energy sector's leading gain. An altogether lack of leadership stunts the market. Pressured by wide-spread selling, the influential Financial sector levies a dragging 0.5% loss. Rate-sensitive banks are the weakest link alongside the Treasury market's return to the red. While there's no market-moving economic data out today, bond traders await next week's FOMC policy announcement and continue to grapple with the past few weeks' strong rounds of reports that have fanned inflation - and thus rate-hike - worries. Healthcare imposes a 0.3% decline for which HMOs are largely to blame. WellPoint (WLP 77.66 -1.41) is the particular sore spot, heading south after announcing its fiscal 2006 outlook. A headline read of its forecasted EPS appears to fall below the consensus estimate, but the exclusion of a one-time item (a stock options expense) translates to EPS that should be two cents higher than expected. WLP's forecast reflects Briefing.com's positive view of the managed care industry. As mentioned, the Energy sector (-0.6%) has given up its gain on account of the inventory-induced crude reversal that's simultaneously done little to help the Discretionary sector (-0.1%). Consumer Staples (-0.2%), Industrials (-0.3%), and Telecom (-0.2%) also trend lower; Materials sits on the unchanged mark.Technology continues its flat line vacillation. Investors await Texas Instruments' (TXN 33.54 +0.25) mid-quarter update that will hit the wires after the close; some optimistic anticipation helps counter declines in fellow chip stock Intel (INTC 26.28 -0.39), which will deliver its mid-quarter update during tomorrow's after hours session. Cisco (CSCO 17.91 +0.35) stands as the sector's standout - attracting buyers after JP Morgan's upgrade of the stock. Microsoft (MSFT 27.73 +0.04) continues to occupy headlines due to its impending advertising alliance with Time Warner's (TWX 18.18 -0.07) AOL, and after losing an antitrust suit in South Korea, but the stock is trading in flat fashion. NYSE Adv/Dec 1253/1826, Nasdaq Adv/Dec 1153/1691

11:25AM : Falling back to morning lows, the indices are pressured by eight of the ten economic sectors. Financial has faded further, levying a 0.5% loss that more than offsets Energy's 0.4% gain. The weighty Healthcare sector exerts a 0.4% loss, due largely to relative weakness in the managed healthcare industry. WellPoint (WLP 77.39 -1.68) is the particular sore spot, heading south after announcing its fiscal 2006 outlook. While a headline read of its forecasted EPS appears to fall below the consensus estimate, backing out a one-time item (stock options expense) translates to EPS that should be two cents higher than expected. WLP's forecast reflects Briefing.com's positive view of the managed care industry.NYSE Adv/Dec 1131/1879, Nasdaq Adv/Dec 1105/1671

[UpInArms]

32. Mike Whitney: 'How Greenspan skewered America'

http://www.smirkingchimp.com/print.php?sid=23932

No one has done more to ensure the ultimate demise of the American middle class than Alan Greenspan.

No one.

In the stately pantheon of class-warriors, Greenspan’s spectral-image looms larger than any other; the foremost proponent of hardnosed social-Darwinism and exclusionary economics. Even his carpet-bagging consort, G.W. Bush, pales in comparison.

In just under 5 years the Fed-master has engineered a coup so vast and devastating that $1.3 trillion of borrowed revenue has been adroitly shifted from the beleaguered middle class to the privileged 1% that Greenspan represents.

Whoa!

<snip>

The partnership of Bush and Greenspan has been the moral equivalent of the sacking of Rome; maxing out the nation’s credit card until every last farthing has been drained from the public till. Greenspan’s tenure has left America bobbing atop an ocean of red ink ready to capsize with the first gust of recession.

...well worth reading...

[AnneD]

38. Pardon Moi

:puke: :puke: :puke: There is no joy in being right on this one.

[UpInArms]

39. my hope is in being proven wrong

my fear is in being proven right

:scared:

[AnneD]

47. When we went into Iraq to search for WMD...

I really wanted to be wrong. I knew there were no WMD, but I wanted some to be found for our country's honour, to justify the pre-emptive strike. Well, you hardly ever hear about WMD. So Iraq got screwed and our body count continues (oh they even fudge those numbers too-they have a very narrow area they consider the combat zone).
I was right on WMD and I think I will be right on the economy too.

[UpInArms]

33. U.S. Stocks Fall, Slowing 4th-Quarter Rally; Banks, Intel Drop

http://quote.bloomberg.com/apps/news?pid=10000103&sid=a.TyKUkZOXIM&refer=news_index

Dec. 7 (Bloomberg) -- U.S. stocks declined, led by financial shares including Bank of America Corp. amid concern that a fourth-quarter rally may have gone too far given the outlook for interest rates.

Intel Corp. led a drop in semiconductor-related stocks ahead of its mid-quarter update tomorrow. Shares of banks and technology companies had helped lead the latest leg of the advance in stock indexes.

The Standard & Poor's 500 Index lost 2.80, or 0.2 percent, to 1260.90 as of 11:52 a.m. in New York. The Dow Jones Industrial Average slid 7.60, or 0.1 percent, to 10,849.25 and the Nasdaq Composite Index dropped 6.06, or 0.3 percent, to 2254.70.

Stocks have climbed this quarter on optimism the economy and earnings are growing fast enough to withstand higher rates from the Federal Reserve. The Labor Department yesterday reported better-than-expected numbers on productivity.

...more...

[UpInArms]

34. GMAC Bonds Fall to 7-Week Low as Sale Prospects Dim

http://www.bloomberg.com/apps/news?pid=10000103&sid=aJMgLjjQK1Fw&refer=us

Dec. 7 (Bloomberg) -- Bonds of General Motors Corp.'s finance unit slumped to a seven-week low after two potential purchasers of a majority stake in the subsidiary said they won't be buying.

Bank of America Corp. said on Nov. 30 and Wells Fargo & Co. said on Dec. 5 they're not interested in buying a stake in a lender such as General Motors Acceptance Corp. Both companies had been mentioned by analysts as possible suitors for GM's wholly owned affiliate.

``GM is more likely to give up a GMAC sale because of limited interest from potential buyers,'' said Cyril Benayoun, credit analyst at BNP Paribas SA in London.

GMAC's 8 percent bond due in 2031 fell to 94 cents on the dollar today after rallying to as much as 107 cents Oct. 24, the week after Detroit-based GM, the world's largest automaker, said it would sell a controlling stake in the finance unit to obtain an investment-grade credit rating and lower its cost of capital.

<snip>

GM and GMAC began losing their investment-grade ratings in May, as the parent ceded market share to Asian rivals such as Toyota Motor Corp. while struggling to control soaring retirement and health-care costs. The company is in the midst of its longest stretch without profit in 13 years.

...more...

[UpInArms]

35. Washed-Up Has-Been Partisan Hack (WUHBPH) spews more lies

12:18pm 12/07/05 GREENSPAN: FLAT YIELD CURVE NOT ALWAYS SIGN OF WEAK ECONOMY

http://www.marketwatch.com/news/newsfinder/pulseone.asp?dateid=38693.520638287-853600025&siteID=mktw&scid=0&doctype=806&

WASHINGTON (MarketWatch) -- Fed chief Alan Greenspan said a flattening in the yield curve is not a "foolproof indicator" of future economic weakness. The yield curve has been flattening as short-term yields have risen in step with the 12 Federal Reserve interest-rate increases since June 2004 while long-term rates have stayed low. Inverted curves came before each of the past four recessions. Greenspan noted that the yield curve also narrowed sharply in 1992-94 just as the economy was entering its longest expansion of the postwar period. His comments came in written answers to follow-up questions after his Nov. 3 testimony to the Joint Economic Committee of Congress.

[UpInArms]

37. WUHBPH: Neutral rate concept not that helpful

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-12-07T172558Z_01_WBT004347_RTRIDST_0_ECONOMY-GREENSPAN-URGENT.XML

WASHINGTON, Dec 7 (Reuters) - Federal Reserve Chairman Alan Greenspan said the idea of a "neutral" interest rate that neither gave a boost to nor weighed on economic growth was not particularly helpful to monetary policy-making.

"It is impossible to know with any certainty when the neutral rate has been reached," Greenspan said in a letter to congressional Joint Economic Committee Chairman Jim Saxton.

The letter was in reply to questions the New Jersey Republican submitted to Greenspan in connection with a Nov. 3 hearing.

[UpInArms]

44. 1:42 EST falling off a cliff

Dow 10,793.96 -62.90 (-0.58%)
Nasdaq 2,249.98 -10.78 (-0.48%)
S&P 500 1,256.30 -7.40 (-0.59%)
10-Yr Bond 4.521 +0.27 (+0.60%)

NYSE Volume 1,230,640,000
Nasdaq Volume 1,078,072,000

1:30PM: Sideways trade persists, with the lack of a fresh catalyst stunting buyers and sellers alike. Within the Dow, nearly two-thirds of the average's constituents impose a loss. Of them, Intel (INTC 26.07 -0.60) and General Motors (GM 21.99 -0.40) pose the most pressure. Of the gaining minority, Alcoa (AA 28.71 +0.47) lends the most upside, and is the only component to have risen more than 1%. This is the third straight session during which Alcoa has led the Dow. On a related note, Briefing.com maintains a Market Weight rating on the Consumer Staples sector - favoring hypermarkets, drug store retailers, and household products. NYSE Adv/Dec 1332/1869, Nasdaq Adv/Dec 1232/1706

12:55PM: Little has changed for stocks, which keep the major averages narrowly range-bound. Aside from sending the Energy sector (-0.5%) to negative territory, one of the only areas that energy price pullbacks appear to have affected are transportation. The Dow Jones Transportation Average (DJT) demonstrates relative strength, and its 0.4% rise outperforms the S&P 500, the Dow, and the Nasdaq - as well as the S&P 400 Midcap and the Russell 2000. Of those indices, the Russell 2000 is the laggard today. As a side note, the S&P 400 continues to stand as the year-to-date best performer, registering an 11.9% gain.NYSE Adv/Dec 1324/1823, Nasdaq Adv/Dec 1192/1712

[UpInArms]

46. 2:41 EST numbers (redder) and blather

Dow 10,784.26 -72.60 (-0.67%)
Nasdaq 2,248.60 -12.16 (-0.54%)
S&P 500 1,255.43 -8.27 (-0.65%)
10-Yr Bond 4.523 +0.29 (+0.65%)

NYSE Volume 1,484,413,000
Nasdaq Volume 1,293,393,000

2:30PM: Fading further, the indices establish a fresh set of lows. The Technology sector had spent a good part of the session trading in flattish fashion, but it currently books a 0.4% loss that heavily contributes to the broader market's submerged state. Upgraded Cisco (CSCO 17.83 +0.27) and Texas Instruments (TXN 33.53 +0.24) - with its mid-quarter update impending - remain the sector's brightest spots, but are unable to counter broad-based weakness. Languishing semiconductors serve as an especial challenge; the group's descent is spearheaded by Intel (INTC 26.11 -0.56), which will provide its mid-quarter update following tomorrow's bell. NYSE Adv/Dec 1121/2120, Nasdaq Adv/Dec 1085/1893

2:00PM: Sellers send the indices south and out of the session's tight range. No sector contributes a gain, and exacerbated deterioration in Financials (-0.9%) can be largely credited for the market's current stance. Wide-spread selling has infected that sector, sparing only three (CIT, ALL, and XL) of the S&P's 84 financial issues. Of those, none have mustered a gain exceeding half a percentage point. Banks continue to lead the decline; as a result, the PHLX Bank Index has given up 1.3% today - leaving its year-to-date gain at 0.3%. Anticipation of another rate-hike, which the FOMC will potentially announce next Tuesday, and uncertainty over the extent of the Fed's tightening cycle weighs upon the sector. Related weakness in Treasurys keeps that market in the red, and the 4.51% yield offered by the 10-year (-08/32) does not help the rate-sensitive sector.NYSE Adv/Dec 1110/2108, Nasdaq Adv/Dec 1140/1835

[ozymandius]

49. shills' bonuses shrinking

3:00
Dow 10,767.28 -89.58 (-0.83%)
Nasdaq 2,246.44 -14.32 (-0.63%)
S&P 500 1,253.58 -10.12 (-0.80%)
10-Yr Bond 45.19 +0.25 (+0.56%)
NYSE Volume 1,563,557,000
Nasdaq Volume 1,355,166,000

[UpInArms]

53. blather

3:00PM: The market's decline continues, leaving the averages lower since the previous comment. All sectors remain well into the red, with a 1.1% loss in Financial still weighing most heavily. In terms of industries, here's a look at the S&P's worst performers today. Homebuilders have declined 3.7%; construction and engineering has given up 2.7%; internet retail has lost 2.0%; industrial machinery has slipped 1.9%; and human resources and employment services have fallen 1.8%. Losses levied by each of the market's bottom five surpass the S&P's best gain; the agricultural products industry offers +1.8%. NYSE Adv/Dec 1116/2136, Nasdaq Adv/Dec 1072/1929

[ozymandius]

55. close - PPT must have stepped in

Dow 10,810.91 -45.95 (-0.42%)
Nasdaq 2,252.01 -8.75 (-0.39%)
S&P 500 1,257.37 -6.33 (-0.50%)
10-Yr Bond 45.17 +0.23 (+0.51%)
NYSE Volume 2,065,479,000
Nasdaq Volume 1,768,699,000

Mid-afternoon, sellers shoved the major averages out of the narrow red range that had bound them all day. Disappointment over the market's failure to sustain yesterday's gains perhaps gave investors a cue to continue consolidation efforts, and the absence of a influential catalyst left buyers standing at the sidelines. The selling wave somewhat tempered just before the close, but nonetheless left the indices well below the unchanged mark. Although energy prices have received some added attention with winter weather's arrival to some parts of the country, better than expected crude inventory stats from the EIA were more or less overlooked. The bullish data sent crude futures into the red, halting their six-day advance, and the Energy sector with it. Besides revoking leadership, though, the data had no effect. Broad-based declines dragged each of the ten sectors, but Financial's 0.8% plummet did the most damage. Wide-spread selling infected the sector, sparing virtually none of the S&P's financial issues. Banks led the slide as the benchmark 10-year note's (-08/32) 4.51% yield again served as a bearish backdrop. The past few weeks' stream of strong economic data has fed inflation-flustered traders' fears; anticipation of another ¼% rate-hike, which the FOMC is expected to announce next Tuesday, and uncertainty over the extent of the Fed's tightening cycle continued to weigh upon the bond market, the Financial sector, and the stock market at large. Particularly due to weakness in HMOs, Healthcare imposed a weighty 0.5% loss. WellPoint (WLP 76.87 -2.20) was the particular sore spot, running south after announcing its fiscal 2006 EPS outlook which, per the headline read, appeared to fall below the consensus estimate. The exclusion of a one-time item, however, translated to EPS that should be two cents higher than expected. To that end, WLP's forecast reflects Briefing.com's positive view of the managed care industry. Progress in the proposed Boston Scientific (BSX 25.77 -0.57) acquisition of rival Guidant (GDT 66.48 -0.40) sent both stocks lower and added to the sector's weakness. Technology relinquished its flat line status intraday, closing 0.4% lower. While upgraded Cisco (CSCO 17.78 +0.22) shares and Texas Instruments (TXN 33.56 +0.27) - rising upon optimistic anticipation of this evening's mid-quarter update - were the sector's brightest spots, extended weakness in semiconductors stood as a more than offsetting factor. Intel (INTC 26.11 -0.56), which will deliver its mid-quarter update Thursday night, spearheaded the way south. As mentioned, crude's pullback pushed Energy (-0.7%) lower while doing little to support the Discretionary sector (-0.2%). Consumer Staples (-0.4%), Industrials (-0.6%), Materials (-0.3%), Telecommunications (-0.6%), and Utilities (-0.8%) also suffered from wide-spread selling today. NYSE Adv/Dec 1229/2081, Nasdaq Adv/Dec 1152/1875